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Production of automobile spare parts as a business. How to start an auto parts business

The owner of a car parts store must have a thorough understanding of the trade, car designs and manufacturers. Without the proper knowledge, you will have to attract highly paid specialists to work, but you still will not be able to assess the level of their work - this is a big expense and the risk of being deceived. Work for at least 2-3 years in a car parts store or car service center, learn all aspects of running this business. Working in the automotive industry will allow you to study demand and establish relationships with suppliers.

Draw up a competent business plan, taking into account even the smallest costs. Plan every step of organizing the store’s activities, try to foresee all the risks and think in advance about ways to minimize them.

Main risks

The auto parts market is highly competitive and you will have to work hard to succeed. Your store must have advantages. In a big city, this may be a narrow specialization in spare parts from certain manufacturers. In a small town you can assemble an assortment of the most popular spare parts and focus on high service.

“Step-by-step instructions on how to open an auto parts store”

Location

There are no strict restrictions on choosing an area for an auto parts store. Experience shows that with a popular assortment, excellent service and reasonable pricing policy, a store becomes popular regardless of location. You should not choose central areas at the start because of the high cost of rent. You can look for premises in business, residential areas, near a market or a large shopping center. Your clients are motorists; it is important to have parking for at least 5-6 cars and convenient access to the building in which the store will be located. The most important criterion is the absence of competitors’ stores nearby.

The minimum area of the room must be 60 square meters. When choosing an area, you must take into account the expected range and dimensions of spare parts. When concluding a contract, pay attention to the following conditions:

Lease term, possibility of purchase and extension of the contract.
A clear separation of utility bills and the direct cost of rent.

To obtain permission to use a premises for commercial purposes, it must meet not only your requirements, but also the standards of the supervisory authorities:

Sufficient area.
Opportunities to equip a spacious and comfortable sales area, utility room and warehouse.
Reliable power supply, sewerage and water, heating.

Find out the fire inspection requirements in advance and take them into account when choosing a room.

Equipment

To get a good overview of the store’s assortment, you need to purchase special furniture for the sales area:

Racks, racks, display cases.
Cash desks and machines.
Computer.

Be sure to go online to the store. Also, experienced auto parts store owners recommend purchasing special software that makes working with catalogs much easier. You will be able to systematize each item by assigning a unique number to the spare parts and indicating analogues from other manufacturers. Such programs help to connect all document flow, significantly simplify the work of maintaining records, drawing up applications to suppliers and the general organization of store activities.

The total cost of furniture, equipment and software for a small store is about $5,000.

Also, transport is required to deliver goods to the store - you should not rely on delivery from suppliers. The car can also be used to deliver spare parts to customers - such a need will arise regularly.

Personnel

Particular attention and exactingness should be shown in choosing sellers. Experience and perfect knowledge of the characteristics of car brands and manufacturers, the structure of the car and spare parts is a necessary condition. Highly qualified salespeople who know how to work with clients will provide you with decent sales and an increase in the number of regular customers. Don’t skimp on paying such people - offer them a decent salary with a full benefits package and a reasonable percentage of sales.

At first, the owner can manage the affairs of the store, but in the future you will need a director or senior salesperson. Working with suppliers is a significant and time-consuming process. A purchasing manager is essential if you plan to grow your store and increase sales. It is unrealistic to collect the entire assortment in one room. Requests from motorists asking to find a part that is out of stock will be a regular occurrence. As a rule, the fight for a new client is won by the store that was able to quickly find and supply the buyer with the necessary spare parts.

A specialized outsourcing company or a part-time accountant can keep financial records for a small store. You can also hire someone to clean the premises on an hourly basis. It makes sense to enter into an agreement with a security organization.

Documents and licenses

The operation of a spare parts store is not subject to licensing. After collecting the necessary package of documents, you need to register an individual entrepreneur or LLC with the tax office.

An individual entrepreneur is registered with minimal time and a package of documents, and is subject to preferential tax treatment. But you have the right to work only with individuals.

Forming an LLC is a longer and more complex process. Registration of this type of business is recommended for those who plan to supply spare parts to legal entities: large car depots, transport companies, taxi services. Also, the LLC provides opportunities for expanding its activities and creating a network of stores.

The presence of full-time employees requires registration with the employment service, social insurance and other non-profit organizations.

Marketing

The main advantage that will provide an auto parts store with customers and decent profitability is the speed of delivery and the quality of goods. Work actively to find suppliers, offer them favorable terms of cooperation. Try to provide multiple suppliers for each product group.

Look for access to official distributors of manufacturers - this will ensure the quality of the goods. Such cooperation will be an additional bonus and a powerful marketing ploy for the store. You have every right to indicate the logos of the manufacturers you work with on the sign and in store advertising. Motorists who are tired of low-quality fakes will definitely appreciate the opportunity to purchase original spare parts.

Without a website through which customers can order the necessary part with delivery, the store cannot expect success. Using specialized software, you can clearly divide the entire assortment by manufacturer, section, number each position and make it easier for site visitors to find the right part. If you can organize the constant availability of declared items and prompt delivery of goods, the store’s popularity and profit growth are guaranteed.

A bright sign, banners and advertising stands in any place with a large concentration of motorists will be useful. Regularly post advertisements in local media, on forums and online platforms for car enthusiasts. Sooner or later, a car owner is faced with the need to look for an auto parts store. As a rule, several retail outlets or services are called and the choice is made on the store with the best service and cost.

Enter into partnerships with car services and transport companies. You will not be able to reach a high level of sales by working only with individuals. Wholesale buyers always bring more profitable orders.

Summary

To start a small auto parts store you need about $40,000. The markup on goods ranges from 35 to 110%. Considering the current costs of salaries, taxes, rent and other deductions, the need to expand the range and additional costs for the development of the store, return on investment and return on investment should be expected in 10-11 months.

If you are able to foresee all the risks in the process of drawing up a business plan, establish partnerships with suppliers and the work of store employees, in a year you will be able to begin expanding and creating a network.

This material can serve as a sample for writing a business plan for an auto parts store when obtaining a bank loan, attracting a financial partner, receiving government support, and simply justifying the feasibility of investing money in your business.

Project Description

We present to your attention a sample business plan for an auto parts store opened in a city with a population of 120 thousand people.

Despite high competition, the sale of auto parts is a profitable line of business, since this market in Russia shows annual growth of 20%. Opening a store with a large assortment of goods for both domestic and foreign cars in our city will be beneficial from both an economic and social point of view.

Socio-economic indicators of project implementation (for state support)

Registration of a new small business entity;
Creation of 3 new jobs;
Receipt to the city budget N up to 80 thousand rubles per year.

Economic indicators of the project implementation, according to business plan calculations:

Profit - more than 1 million rubles per year;
According to preliminary calculations, the payback period for the project is about 2 years;
Profitability - 25%.

It is planned to spend 400 thousand rubles on opening a business. own funds and attract 1,700 thousand credit funds from one of the city banks:

Which tax system to choose

The organizational and legal form will be individual entrepreneurship. The choice of this OPF was due to the inexpensive and simplified procedure for registering activities. As tax systems A patent system will be applied, and the cost of a patent for an auto parts store for a year will be 36 thousand rubles.

At the moment, practical activities have begun to implement the project:

Produced business registration, OKVED code 50.30.2 - Retail trade of automobile parts, assemblies and accessories;
A preliminary lease agreement was concluded for premises to locate a retail outlet on the street. Lenin building 101 with a retail area of 40 m2 and a warehouse at the same address with an area of 15 m2. The rental price for 55m2 will be 30,000 rubles per month. The premises do not need renovation;
The search for wholesale suppliers of auto parts and consumables on favorable terms has been completed.

Description of products and services

The assortment of the outlet will include spare and consumable parts for cars of both foreign and domestic production. In addition to the goods presented on the display cases and shelves, the store will also work on orders from the catalogue. In general, the supply department will work according to the principle: the most popular items should always be in stock. These products include:

Engine oil;
Wheel disks;
Tires;
Filters (oil, air, fuel);
Light bulbs;
Candles;
Wipers;
Oil seals;
Hardware, washers, screws, caps;
Clamps, pipes;
Alternator and timing belts;
Tools;
BB wires;
Auto chemical goods;
Gaskets;
Grenades;
Steering tips;
Silencers;
Bearings;
First aid kits and pumps;
and so on.

In this case, the customer will be offered spare parts from different manufacturers at distinctive prices, for example, “original” or “non-original” spare parts.

The price level will be slightly below the average price level for spare parts in retail outlets in our city. And thanks to a well-thought-out logistics system, orders will be delivered in the shortest possible time.

marketing plan

First, let's determine the market capacity. According to statistics, in Russia there are about 270 cars per 1000 residents, that is, every fifth person has their own car. Our city is home to 120 thousand residents, respectively, they account for about 20 thousand cars.

The most popular car brands include: Lada, Chevrolet and KIA.

Of the total volume of the auto parts market, 52% of sales come from domestic cars and 48% from foreign cars.

The ratio of purchased components for domestic cars and foreign cars:

On average, each car owner spends about 15 thousand rubles on maintaining his car (without gasoline and insurance). These are mainly costs for engine oil, tires, filters, and spare parts.

It follows that the capacity of the auto parts market in our city is: 20 thousand (cars) * 15 thousand rubles (car expenses) = 300 million rubles per year.

It should be noted that the demand for spare parts will only grow in the near future, as the number of car owners and, accordingly, the number of cars increases. According to statistics, the growth rate of this market is about 20% per year.

Competitors. According to the research, there are about 30 retail outlets in the city that sell a similar group of goods, 10 of which are large service stations that have their own retail departments (We recommend reading: “Service station business plan.”

In close proximity to our outlet there are:

Service station with its own sales department. They mainly sell on pre-orders;
Motor oil center. The main range is oils, filters and other consumables;
Retail outlet of 5m2 in a small shopping center. They sell only by catalog with delivery within a week.

Let's conduct a comparative analysis of the strengths and weaknesses of our competitors:

Competitors	Characteristic		conclusions
Competitors	Strengths	Weaknesses	conclusions
ONE HUNDRED	Car owners who use the services of a service station order spare parts from their store	Low range of spare parts and consumables from the warehouse, mostly all goods are made to order. Delivery of the order takes more than a week. Relatively high prices	You can compete with lower prices, a wider range and faster delivery of spare parts
Motor Oil Center	Large range of motor oils at low prices	Due to the specific specialization in motor oil, there are no other types of consumables and spare parts	You can compete through a wider range and faster delivery of spare parts
Retail outlet in a shopping center	Low prices, fast order delivery	There is almost no product in stock; they sell only by catalog	You can compete due to a wider range of goods in stock

Advertising and marketing activities

Advertising in the media, development of a business card website for our store;
Advertising on billboards, distributing flyers and business cards;
Discount for regular customers, promotions (free oil change);

The level of trade markup on goods will average 40-50%. The sales season is in spring and autumn.

The planned sales volume in monetary terms (revenue) is as follows: The monthly dynamics of revenue is presented in the form of a graph: To achieve the break-even point of sales, it is necessary to sell goods worth 315,000 rubles per month.

Production plan

We will work only with large wholesale organizations that have been working in the wholesale supply of auto parts market for more than one year and have proven themselves only from the best side. These are companies such as Part-Com, Pasker, the Auto-Alliance group of companies, etc. Delivery of goods to the store will be carried out by transport companies. Planned staffing of our organization: Increased requirements will be placed on staff, in terms of:

Good knowledge of vehicle structure and spare parts;
Ability to communicate with clients;
Sales experience (preferred).

Calendar plan

The list of activities to start the project and their cost can be presented in the form of a calendar plan: To launch the project, you will need 30 days and 2.1 million rubles of starting investments.

How much money do you need to open an auto parts store?

To open a retail outlet, an investment of 2.1 million rubles will be required. Of these, own funds amount to 400 thousand rubles and 1,700 thousand rubles are planned to be raised in the form of a bank loan.

Financial plan

The main expense item for an entrepreneur will be material costs, that is, the purchase of goods for the purpose of subsequent resale. A rather large expense for an entrepreneur, in addition to wages, will be the payment of insurance contributions to the Pension Fund and the Social Insurance Fund: 36 thousand rubles per year for individual entrepreneurs and 30% monthly of employees’ wages. A complete list of all costs, as well as calculation of gross and net profit, is presented in the table - forecast of store income and expenses:

How much can you earn by opening an auto parts store?

Net profit based on annual sales results will be slightly more than 1 million rubles. The profitability of an auto parts store, according to business plan calculations, is 25.7%. This figure is higher than any bank deposit. This suggests that the investment in the business will be fully justified. Return on investment should be expected in no earlier than 24 months.

This is a full-fledged, ready-made project that you will not find in the public domain. Contents of the business plan: 1. Confidentiality 2. Summary 3. Stages of project implementation 4. Characteristics of the object 5. Marketing plan 6. Technical and economic data of the equipment 7. Financial plan 8. Risk assessment 9. Financial and economic justification of investments 10. Conclusions

Where to start a business

Starting any business requires careful preparation, thoughtful actions and a well-developed business plan. An auto parts store is no exception to the general rule. This business is primarily for men. But even if you have a good driving record or have previously worked in a car repair service, it’s still worth learning. After all, trading is a new business and requires different skills. First, you need to decide what exactly you will sell: spare parts for foreign or domestic cars, or just covers, mats, etc.

It is also worth paying attention to your competitors: what is being sold in your area, at what price, what is in more demand? Competition in this niche is quite high, so you need to think carefully about your business plan and how you can attract a buyer. An auto parts business can be successfully combined with another car-related business, such as a car wash. Or invest in the car this way, which will bring significant profits in 2-3 years.

Many people wonder what business to start? Especially if you live in a small town. We decided to write one idea, which was implemented as an experiment and showed a decent result.

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Home business idea with minimal investment

Let us immediately clarify that a small team on our site produced a certain product, which will be discussed below, and was successfully sold. Naturally, they did not begin production on a regular basis. Just curiosity.

Also, to be completely honest with you, we would like to add that all the necessary equipment was provided to us by our friends. But this does not mean that you need to spend a large amount on its purchase; you can simply contact specialized companies and use their services. Until you save up the money to purchase it.

Why did we decide to title the article home business idea? Yes, because everything can really be done at home, now you will see for yourself. By the way, the niche is practically not filled, or rather, it is filled with ordinary stampings, but not with exclusive ones.

Modeling

The essence of the idea is simple: to produce exclusive spare parts for scale models of cars, tanks, airplanes, special equipment, etc. What's new here, you ask, how many of them are on sale. There are several pieces for each model.

Yes, indeed all this is true, but it turns out that this is not enough. Let's give a simple example: let's take a 1/24 scale set - BMW E30, the set includes standard bumpers, wheels, body, interior, etc. But anyone who knows about cars knows that while this famous German model was being produced, it came with several types of body kits , wheels, headlights. All this was divided by year of production, taking into account restyled options.

So, manufacturers of plastic kits (KITS) cannot do all this because of production costs. Therefore, the most popular spare parts for models are cast. And collectors and modelers would like to see other options.

It is also necessary to take into account that plastic parts constantly break during assembly, especially for beginners. Therefore, they have a choice: buy a new set for several thousand or look for spare parts from their comrades. Few people offer to make to order, and the prices are high.

That's why home business idea, consists precisely in the manufacture of such things. Additionally, you can print decals, which constantly deteriorate, especially in older kits.

Personally, in our experiment we made a front bumper for a Ford model, 1/24 scale. They printed it on a 3D printer and sold it on one of the forums dedicated to modeling. The profit was almost 200 rubles, bought on the same day.

Business Equipment

For full work you will need:

zD printer;
jet printer;
printer consumables;
computer.

But the best thing is that at the initial stage you can get by with one computer. Who will make the layout, who will print the product, you can easily find all this on the Internet. For example, you can make a mock-up of a bumper for 500 rubles, print it for 200 rubles, and sell it for 900-1000 rubles with delivery. Moreover, using epoxy resin or liquid plastic you can very cheaply reproduce a product by making a copy of it.

Naturally, if you have a printer, you will seriously increase your profits. At least the original layouts will be available for pennies.

How to find a sales market?

Here we will look at a specific example of how such things are sold. After all, any home business idea requires the sale of its products. The first thing you should pay attention to is the Ebay auction. Here is a successful one, which produces spare parts for large-scale cars. A person sells 60-70 items per month, and not the best ones, and he has little choice. This is only a small part of what can be done; the assortment can realistically be increased at least 10 times. Show imagination.

It is also worth paying attention to forums and thematic online stores where you can offer your services.

Outcome

We did not set out to write a business plan, but we clearly demonstrated the direction in which you can go. If you use your imagination, you can create an entire production and a good customer base.