Thinking about opening an auto parts wholesale and manufacturers business? We tell you what you need to know to get started.
Demand for Auto Parts Wholesalers
Auto parts wholesalers and manufacturers play a pivotal in the supply chain for the U.S. transportation system. Without reliable wholesale suppliers, retail parts distributors, independent garages and other auto parts providers would be unable to adequately service their customers, threatening the transportation safety of the American public.
In addition to commercial vehicles, there are more than 250 million registered passenger vehicles on U.S. highways. As the age and volume of registered vehicles increases, so will the demand for parts and repair services. But although startup auto parts wholesalers are situated in a growth industry, successful startups must intentionally adopt diverse market strategies to achieve long-term survival.
Diversifying an Auto Parts Wholesale & Manufacturing Startup
In today's auto wholesale environment, diversification is a startup essential. An extensive product line and broad customer base are helpful, but may not be the most important targets for diversification.
Instead, you'll need to consider offering retailers and mechanics options that include new, OEM (Original Equipment Manufacturer) and aftermarket parts. Tune-up parts, belts, hoses, engine parts, lights, exhaust systems and other items are all fair game for multiple product options.
You'll also need to think about how your startup may be able to create a more diverse marketing strategy. While some retailers and repair shops prefer traditional parts catalogs, many more have transitioned to online parts ordering -- and that means your startup will need a high quality ecommerce website.
Ecommerce Tips for Auto Parts Wholesalers
Your startup business plan needs to articulate an ecommerce strategy that allows your customers to view and order your products online.
A good ecommerce strategy addresses several key elements including the creation of a virtual product catalog, online marketing, SEO, hassle-free ordering, shipping and more.
If designing a user-friendly ecommerce site is beyond your skill set, consider reaching out to a proven web marketing firm with experience in ecommerce site design.
Best Practices: Business Plans for Auto Parts Wholesale & Manufacturers Businesses
A great business plan will lay a strong foundation for growth in your startup auto parts wholesale and manufacturers business.
Business plans address a wide range of issues, including startup financials. Not surprisingly, lenders immediately turn to the financial section and use the accuracy of your forecasts to gauge the value of other parts of the plan.
With so much riding on your business plan, we recommend getting a firm grasp on business plan financial basics before you start writing the other parts of your business plan.
Before you open an auto parts wholesale and manufacturers business within your community, it's a good idea to see how strong the competition is. Try our link below to generate a list of competitors in your area. After following the link, enter your city, state and zip code to get a list of auto parts wholesale and manufacturers businesses in your area.
Prior to opening your doors for business, be sure you fully understand the competitive landscape and where your new business will fit in.
Turning Competitors Into Collaborators
If you are interested in starting an auto parts wholesale and manufacturers business, you really ought to talk to somebody who is already in the business. If you think owners of nearby auto parts wholesale and manufacturers businesses will give you advice, think again. Why would they want to educate a future competitor?
But, a person who owns an auto parts wholesale and manufacturers business in a location that is not competitive to you will be much more likely to talk with you, given that you don't compete with them in their area. Many business owners are happy to give advice to new entrepreneurs It can take a while to find an entrepreneur who is willing to talk, but it's well worth the effort.
Do you know how to find an auto parts wholesale and manufacturers business entrepreneur on the other side of the country to talk to?
Easy. Find them using our link below and start calling until you are successful.
Auto Parts Wholesale & Manufacturers Business Acquisitions: Financial Considerations
Worried about the financial aspects of starting an auto parts wholesale and manufacturers business? Most startup auto parts wholesale and manufacturers business owners are.
One of the ways to mitigate the financial risk of a startup is to modify your approach to tap into the financial benefits of buying an existing auto parts wholesale and manufacturers business. Established auto parts wholesale and manufacturers businesses have reliable revenue streams and loyal customer bases – both of which will shape your company's financial landscape.
But most importantly, existing auto parts wholesale and manufacturers businesses have documented financial histories. Although you can create pro forma earnings and financial statements for a startup, a business-for-sale should have a well-documented, multi-year history of financial performance.
Is Franchising the Right Option?
Starting a business isn't easy, not even for experienced entrepreneurs. If you haven't owned a business before, the odds are stacked against you even more. Across industries, franchise startups tend to fare better than independent startups. Franchise startups have something traditional startups don't -- the reassurance of a network that is invested in their long-term success.
The link below will take you to our auto parts franchise directory where you will find auto parts business opportunities with some of the nation's leading franchises. Since franchises vary in quality, we recommend carefully researching each potential franchise before you decide on the one that is right for you.
These additional resources regarding getting started as an entrepreneur may be of interest to you.
If you already are in business and came here to learn about growing an existing auto parts wholesale and manufacturers business, try these useful resources:
If you came here to learn about selling to auto parts wholesale and manufacturers businesses, we've got better information for you elsewhere on our site. These resources are more appropriate for you:
If you are still exploring all of your options, please browse our directory of guides below.