While the motor trade industry can be very competitive, it is also a very lucrative one. Running a successful motor trade business requires that you have a full understanding of the market and are ready to do a lot of research. To help you get started and be successful, here are some important tips to keep in mind.
Consider Working for Another Trader First
While it is tempting to want to get started with your business as soon as you can, it is always better to gain some experience before you jump in. This is especially true if you have not been involved in this type of business before. Working for another trader will help you gain the necessary skills you need, help you understand the market, and can even be your opportunity to gather data about the local car market.
Do Your Research
Before you do anything like trying to get funding, it is important to do thorough market research. You will need to know which types of cars are popular in the area where you would like the business located. You can also look at the demographics of the area to have a better idea of the type of inventory to get started with.
Next, use additional details to get a better understanding of the vehicle registration details, export and import reports, as well as market forecasts. Another great source of data is your competition. If there are motor trade businesses nearby, walk into their showrooms and try to find out which types of cars they sell most often.
Deal With the Administrative Tasks
There are a lot of administrative tasks you need to handle before you start the business. These include things like writing a business plan, getting the necessary funding, applying for licences and permits, finding the right and secure premises, deciding on and registering your business structure, and setting up the software you need for the business.
You will also need to start thinking about marketing and establishing a social media presence, as both of these are crucial in this competitive business.
Get The Right Insurance
When running a car dealership, when selling used cars or providing trade-in services, you will need insurance. Motor trade insurance is crucial for businesses where employees handle or drive cars that do not belong to them. The best motor trade insurance policies are actually various insurance policies combined into one. These include road risk insurance for the customers’ and business’ cars, liability insurance, employer’s liability as well as product and public liability.
Because every business is different, you will likely need motor trade insurance tailored to your specific circumstances and business structure. Comparison sites like Quotezone make it easy to compare motor trade insurance quotes so you can find the right insurance quickly. This allows you to compare dozens of deals from different providers so you can find quotes that suit your business best while saving both time and money.
Starting a motor trade business can seem challenging and even intimidating for some, but it does not have to be so. Most of what you need to do to be successful will be similar to what you would do if you were starting another type of business, only that this is a motor trade business.