How to Start Automotive Sales & Service Business in Canada
Auto parts retail industry enjoys resilience during even period of economic downturn. So, learning how to start Automotive Sales & Service Business in Canada can become a profitable venture.
According to an article which was published in May 2017 on a website Bloomberg Businessweek with title as “ We’re driving our cars longer”.
According to reports by Hoovers Inc. auto parts industry is too highly concentrated in 50 largest companies that generate more than half of the total revenue of industry.
Before you plan and open an auto parts store, you should conduct a thorough research of your preferred market.
Pick up a Location
Location is too important for any of the businesses, as an auto parts retailer location also plays an important part for the viability of business.
Determine saturation of auto parts store in and around prospective area of your business. Just research nature of your potential and precious buyers along with their purchasing power.
Your zoning commission of town can be provided with information on latest mapping of location of your store and its surrounding areas.
Do Research on Market
To aid research on your market, just check out Barnes Reports’ on “U.S. Automotive Parts and Stores Report” annually. Identify your competitor in market.
There are some top auto parts retailers, which are Pep Boys, Advance Auto Parts, O’Reilly Automotive and AutoZone.
If your store is near to any of these retailers, you need to create a strategy to get entry in market that ensures viability of your retail store.
Study your marketing strategy and competition’s niche and after that then create your own market. For example, if you are near to O’Reilly Automotive store, which sells its own private label products.
Permits and Licenses
States have been varying its rules and regulations that pertains to business registration, permits issuance and business licensing.
Generally, you should register your business brand and should get a general business license.
Because you are planning to sell out auto parts, you have to file for sales tax registration too.
If you are planning to sell out used auto parts, you need to get a separate license, depending on location of your business.
Hire sales staff and cashiers. Number you need depends on size of your store. Your sales staff should be familiar with, if your staff is not expert in, auto parts and replacement of mechanics of auto parts.