How to Start an Auto Parts Performance Store

Opening an automotive parts performance store can help you achieve your career goals of becoming self employed. The automotive industry is competitive so you must set yourself apart from the others. Stay on top of your community’s automotive industry and make a diligent effort to stand out. Offer your quality automotive performance parts at discounted prices to drive in new business. To ensure that your customers continue to seek your services, you and your employees must always provide quality customer service. If you abide by the old adage “the customer is always right,” your automotive performance parts will sell themselves.

Things You'll Need

• Business plan
• Funding
• Building
• Licenses and permits
• Equipment
• Suppliers
• Employees

Instructions

1. Determine the items and vehicles for which you want to sell automotive performance parts. You can choose from cars, trucks, motorcycles and other automotives.

2. Develop a business plan that best describes your automotive parts performance store. It should contain information such as your expected monthly expenses, profits and losses. Your business plan should also highlight your intentions, if any, to expand your store. Point out how you plan to increase your profits and minimize your losses over the long term. For free help and to view samples of business plans, visit the U.S. Small Business Administration online.

3. Apply for a small business loan at a bank or credit union to obtain your start-up funds. You will likely need collateral, so if this is an issue, consider another route such as private or federal grants. Grants are the optimal choice, as they never have to be repaid. Inform relatives and friends of your intentions to open an auto parts store. They may not be able to offer you any monetary support, but they may know someone who can.

4. Buy, build or lease a building that will be spacious and easily accessed by your target customer base. All three options have their pros and cons. For instance, building a store will allow you to make customizations that fit your specific business needs while a lease will allow you to skip the costly repairs and maintenance.

5. Obtain, complete and return the necessary paperwork to your local courthouse or municipal office to receive your business license, permits and a federal tax identification number. These documents are a must-have to legally operate your automotive parts performance store.

6. Seek out a supplier that can keep your store shelves stocked with automotive performance parts, such as windshield wipers, car covers, catalytic converters and cold air intakes. Be a smart shopper and compare the prices of various suppliers. Your relationship with your supplier should receive a little TLC, as he has the items you need to make money. He can also cut you a deal during hard times by offering you a discount on your orders or by allowing you to make smaller purchases than what is normally required.

7. Decide if you want to run your automotive parts performance store by yourself or if you will need the help of employees. Posting help-wanted fliers and placing an employment ad in your local newspaper should bring in prospective candidates. You may also utilize the services of an employment agency, which will interview and hire employees on your behalf.

8. Create a website, rent a billboard, place an advertisement in the Sunday newspaper and distribute fliers announcing the opening of your new automotive performance parts store. All means of advertisement that you use should contain your store hours, contact information and examples of parts for sale. It is best to inform your customer base of the items you have discounted.

References

• Entrepreneur: How to Start a Retail Business

Resources

• U.S. Small Business Administration