Business plan for future...

[mayers85]

Hi over the last year I have been researching alot on what I need to start a business with a buddy of mine. After talking to alot of people I have come to this conclusion. Over these next few years my friend and I are saving up about 10,000 a year each or alittle more. We're looking at about 4-6yrs from now till we start. The type of business we are going to get into is the retail end of it. Probably focus on sport compact aftermarket parts at first. Since we live in NY we are going to move to the east coast of North Carolina. I was wondering if anyone knows off hand if this location seems fit cause so far it does to our standards and the amount of car enthusiasts in the area is pretty high. Also I am going to be attending college for a business Certificate so I get a great understanding on how to run the business. The one thing that frightens me is the fact that im starting from scratch and will have to contact all the companies that I want to get the parts from. Does anyone know if the majority of companies such as Greddy, Streetglow, Bomex, Corbeau, etc etc give you displays for the store front at discounted prices or what? any input would be much appreciated. And of course with all the other money we obtain its going into our cars(as of now im carless!, my friend still has his 1989 BMW 325 hooked up so im hopeing to get a new car to whoop his ass lol but for now its driving the automatic 350block 1997 chevy cheyenne 2500 truck)

[kris]

What will you do, to stand out, from a already saturated market?

[mayers85]

Originally Posted by kris

What will you do, to stand out, from a already saturated market?

We are still figuring a few things like that out as we do have time. But to stand out shop wise im going to have like lots of things going on so it attracts people. I wanna have a playstation display case so people can also test the latest racing games and purchase them from me along with PS2 accessories for their cars. Things like that so I can stand out from other shops but to stand out with what were selling I will have to take a few trips to North Carolina and even live there for a year to decide whats selling in the area and take notes on local shops. After our shop grows we will expand to the internet and provide more products.

[greasyhog]

To really succeed you really need to figure out what Kris was talking about. Differentiation. Why will people choose your store over another. Somehow i doubt the PS2 think will help all that much. You can always start another thread and ask people what they would look for in a store. Customer serivce and support, maybe giveaways, car shows, etc. To answer the "will my vendors give me displays (freebies) it depends. Most companies will give some type of freebies so you can try there product or give you displays to help sell there product. I guess it just really depends on how your vedors see you. are you going to make them the big bucks or are just just another mom and pop vendor. If you find the key the differentiates your business from others then you will most likely get a lot of freebies/diplays etc.

[CraigFL]

The previous answers are great and I have a few more things for you to think about that will be as important or maybe more important.

1. What will business be like 4-6 years from now?And specifically your type of business.

It used to be that distribution of products was a problem so people set up local stores to sell these goods and they could set the price. With the internet, and improved distribution, your competition probably can offer lower prices and delivery in one to two days maybe even with free shipping. People will have no good reason to come to your store and order their Greddy parts from you especially if you aren't stocking them.

2. How will you deal with your partner and how will he deal with you?

Partnerships are trouble. Even the best of friends won't agree on everything all the time. You need to set rules on who has authority to do what. If you don't ther will be conflicts.

3. Where will your backup capital come from

The number one reason small businesses fail is that they are undercapitalized. When someone comes in and orders $3000.00 worth of parts, where will the money come from. Maybe that vendor has you on COD terms and you need the money now and your customer won't pay until delivery. What about those wheels you want on display that cost $5000 to keep in your storefront?

4. Are you a business builder or a business runner?

These usually are two different characteristics in people. Some are good at starting businesses and some are good at running businesses. If you're one type, will you be happy doing the other job? How about your partner? Can you survive through a startup until you can find your niche and build a customer base?

Good luck!!

[greasyhog]

Also about the location, if you know anything about real estate the three main things to remember are location, location, location. Location is everything. You want to make sure that where you place your store that there will be customers. So you probably dont want to have one in a small town. A high traffic area is your best possibility. The more people that see your shop the more that will come in. So maybe finding a piece of property by a popular mall or something would be great. You also wouldnt want to have your store where there are many other parts stores becuase that leads to oversaturation. Too many shops, not enough customers for them all. You should probably contact a good real estate company and have them help you find a piece of land that is good for you.

[mayers85]

Thanks everyone for your help. I want to answer a few of your thoughts/questions. First off location is obviously the thing we need to worry about first so we have decided in about 4-5 years or sooner to take a long trip to the eastern coast of North Carolina. Actually close to Raleigh. From here we will take surveys and check out other local store fronts to see whats hot and whats not in the area , etc. For the partnership part im more of the business starter who takes care of the business end of things since he is my best friend and trusts me. My friend/partner is more of the knowledge person on the parts like what is better in this situation and soo on. And for how the business will be 4-8 years from now who knows...if its hard to get into by then we will think of another type of business. We do have lots of options and all we know is we don't wanna spend the rest of our lifes working for someone else who tells us what to do! To sum things up 4-8 years is along time and time for us to mature and figure out what we wanna do. I just wanted to get a little insight on this topic from a few people and that I have so again thanks for your help and you might see me in this part of the forums in the future! peace

[flatlander757]

as for when you open up, a good way that would attract customers(at least me) would be a grand opening day or weekend of dyno runs free of charge and whatnot. of course that won't work if you don't get a dyno, but that would be a great way to make profit if you can get over the up-front cost.

[mturner1]

One thing that some shops have done to differentiate themselves is to offer something other's wont't. For example, my shops sell Amsoil. I have seen my profits grow by offering Amsoil. You are not offering the same oil, or oil change services like everyone else. Instead of attracting customers with the $19.95 oil change special, you can offer a 7500 mile oil change or even a 25,000 mile oil change. All guaranteed by Amsoil. Now at first business for Amsoil was slow, primarily because people havent heard about it. However, my customers return to my shop for
Amsoil, plus other services...they love the convenience. I am charging
$50 for the Amsoil oil cahnge. my cost for the oil is about$20. Not a bad profit, eh? My dealer has been great, too. If you are interested, check out his website www.lubedealer.com/jtubbs