How to Start a Mobile Stereo Business

Starting a mobile stereo business requires capital and expertise.

If you have a passion for sound, you may consider starting a mobile stereo business. Owning your own stereo business allows you to operate your business from a commercial garage, go completely mobile with a work vehicle or combine both for added customer service. You'll need a high level of expertise in working with vehicle electrical systems, gotten from past job experience or by attending a technical school, and your business will grow along with your reputation for great-sounding installs. Many mobile stereo businesses offer additional services such as alarm installations, window tinting and other vehicle modifications, allowing you to tailor your business in specialty areas that interest you or provide maximum profit margins.

Things You'll Need

• IRS Employer Identification Number
• Business registration
• Business permit and license
• Tools, parts and initial stereo stock
• Work vehicle (optional)
• Insurance

Instructions

1. Create a business plan for your mobile stereo business listing every operational detail. You'll need to research your competition, develop marketing, advertising and pricing strategies, and decide exactly how you'll structure, start and run your business.

2. Apply for an Employer Identification Number from the IRS (this can be done via their website). This number will be used to identify your business as a legitimate and taxable business entity.

3. Register your mobile stereo business with your state's department of revenue and apply for a tax identification number and/or sales and use tax certificate. Your tax number or certificate will allow you to purchase wholesale goods from suppliers, collect sales tax from customers on taxable sales and pay it to the state (if applicable).

4. Apply for a general local business permit and any state license required as listed on your state's business website. Some states require any business or individual working on automobiles to apply for a repair license, and may require certification from an approved technical or trade school.

5. Purchase mobile stereo installation tools, parts and initial merchandise stock. Your needs will vary depending on the scope of work and products.

6. Purchase a work vehicle (or use your own) if you plan to do installations and service on the road. You may use any type of vehicle but it should have a professional appearance to reflect favorably on you and your business.

7. Contact your insurance agent and purchase insurance for your business. Working on customer vehicles requires a general liability insurance to cover for possible damage while a vehicle is in your possession or due to faulty installation or components. Inquire about insurance for your work vehicle and any additional insurance required by your state and in your workshop rental agreement or lease.

Tips & Warnings

• Outfit your work vehicle with permanent or magnetic signs to increase your exposure.

• Make sure your workshop is zoned for a mobile stereo business. When you register the business with your town or city, you may need to apply for zoning and planning approval.

• Don't neglect to purchase insurance for your mobile stereo business even if not required in your state. Damage to customer property can result in lawsuits.

References

• Keith Bricklin, owner" Keith's Car Audio: Fall River Massachusetts
• Gaebler: Starting a Car Stereo Installation Business
• Car Audio and Electronics: Mobile Electronics Business - Start Your Own Shop

Resources

• Entrepreneur: Lights, Car, Action
• SBA: Writing a Business Plan