We live in a country that encourages entrepreneurship. America is one of the easiest places in the world to start your own successful business. However, this highly capitalistic society comes with a drawback – heavy competition.
If you’re planning to start a car dealership, you need to be aware of the facts. For example, nearly 50% of small businesses fail in the first five years. However, that figure doesn’t have to include you.
The key is learning how to start a car dealership without running into the same problems as the failed businesses before you. We can help. Keep reading for five essential steps.
Do Your Homework
First, you need to make sure you know what you’re getting into. You need to spend a few weeks at least conducting market research. You need to know what the car dealership market is like out there.
For example, how much local competition do you have and who are your biggest competitors? How much money does it cost to start and run a car dealership? Should you deal in used cars, new cars, or both?
Draw Up a Business Plan
Now it’s time to create a business plan. Your business plan is the blueprint of your company. It is also vital in getting the startup funds you need from banks and other investors.
It should include:
- An executive summary
- A description of your business
- Your market research and analysis
- Your management structure
- Your products and services
- Your marketing plan
- Financial projections
The more work you put into your business plan, the more seriously banks and other lenders will take your company. Your business plan could very well make or break your efforts to start a car dealership.
Get Startup Funding
The first place to look for funding when starting a car dealership is a bank. You can try to get a traditional business loan, however, this requires outstanding credit.
However, there are other ways to obtain financing to start a car dealership. For example, you can look to private investors, crowdfunding agencies, angel investing groups, and more.
Hire a Sales Team
Next, you need to hire people to help you run your business. When starting a small car dealership business, you won’t need many salesmen. If need calls for it, you can hire more in the future.
Start with a few salesmen and invest in their success. We recommend an auto salesman training program that can help them maximize their sales.
Market Your Dealership
Finally, you need to implement a marketing strategy to start drawing in customers. The people in your community need to get familiar with your name and start seeing you as a credible dealer.
First, you need a user-friendly website complete with effective SEO. Then, create at least one social media account so you can start spreading brand awareness via Facebook, Instagram, and more.
Also, invest in other marketing methods, such as email marketing, content marketing, pay per click marketing, and search engine marketing.
Looking to Start a Car Dealership?
We understand how overwhelming it feels to start a new business. There’s a lot of leg work to do and it’s easy to get lost in all the details. However, we have no doubt that you can start a car dealership and make it successful.
If you need more tips and advice about cars, be sure to check out some of our other content before you go. Our blog is full of informative and insightful articles.