car spare parts business plan pdf

Starting Auto Spare Parts Store Business Plan (PDF)

Starting an auto spare parts store business presents an exciting and profitable venture in today’s dynamic market. As the automotive industry continues to flourish, the demand for quality spare parts has skyrocketed, creating a lucrative opportunity for entrepreneurs. This business not only promises substantial profit margins but also offers a steady stream of revenue, thanks to the ever-growing number of vehicles on the road. With cars becoming a necessity for many, the need for maintenance and replacement parts becomes inevitable, positioning auto spare parts stores as a pivotal component of the automotive ecosystem. The allure of this business lies in its resilience and the constant demand. Unlike other industries that might experience seasonal fluctuations, the auto spare parts sector remains relatively stable, driven by the continuous need for vehicle repairs and maintenance. This stability is a significant draw for business owners looking for a dependable and profitable venture.

At least 18 percent of the global population own at least one vehicle. That translates to over 1.4 billion vehicles in the world. That is a staggering number of vehicles and the figure keeps growing. Vehicles constitute several electrical and mechanical aspects. That is why they are always likely to malfunction or get worn out over time. The average vehicle has approximately 30 000 parts. If we are to look at substantially big parts or components, that is roughly 1800 parts. Vehicle ownership has been on the rise and will continue to be; even multiple vehicle ownership. The other notable dynamic is that vehicle owners are generally now keeping their vehicles for longer. As such that increases the likelihood of them needing auto spare parts at some point. That clearly shows you there is money to be made in starting an auto spare parts store business. Despite whatever the state of the economy might be in, the demand for auto spare parts will always be high. This article will outline how to start the auto spare parts store business, and the auto spare parts business plan – PDF, Word and Excel.

Market Research

The need to gather comprehensive up-to-date data.

Market research for auto spare parts business is basically 3-tier i.e. market identification, product research, and consumer research. You can conduct market research by conducting surveys, observations, interviews, and desk research. Desk research involves gathering and analysing information from print and electronic media. The reason why you must conduct market research for motor spares business is to figure out whether or not a market exists. Then if it does you would want to comprehensively know all its characteristics.

Several Variables To Consider

There are numerous different types of vehicles, brands, and makes. The most populated segment is light motor vehicles. However, that might not hold true everywhere. Thus you have to zone in on your intended target market and know its characteristics. All these are examples of variables that call upon you to conduct market research. What are the most sought after auto spare parts and for which types of vehicles?

Figuring Out The Roll Out Plan

You also have to gather enough information to know how to roll out your auto spare parts store business. Do you have to operate from a physical outlet? Should that physical outlet exclusively just focus on auto spare parts? Do you have to marry the auto spare parts element with an already existing business e.g. a fuel station, a garage, or workshop?

Maybe it could be best to consider franchising. How about rolling out the motor spares business exclusively using an online store approach? You have to know where you will score as many customers as possible. Making a decision out of all those options can only be accurate if your market research is thorough.

Make sure you have a comprehensive auto spare parts business plan

The failure to plan is the beginning of business failure. The auto parts business plan must be clear and succinct enough to give your potential partners, clients and investors an overview of what your objectives are. At the same time, it must be detailed enough to explain your business well. Your motor spares business plan should have financial statements which show that your business is viable and profitable.

Location And Premises for an Auto Parts Store

Your choice of location is of critical importance with respect to customer inflows. An appropriate location must take into account places where there are good road networks and high vehicle traffic. Your choice must also be done after being absolutely sure that your target area has people with substantial income levels. It would also be wise to scout your intended location and see whether or not there are other players active in the same trade. Once you get comprehensive details on that it’ll help you setup shop in a way that wards off competition.

As can be noticed from some central business districts, such stores can be located in streets lined up with auto spare parts shops. That can be strategic in that you get easily located due to people’s knowledge of the street. However, considering that you’ll be close to your competitors you’ll have to be very competitive. Deciding to locate yourself as a standalone shop can be expedient but do your homework to ensure customer inflows will be easy to mobilize. In general, the best location is in a central business district, shopping centres, or near places or residential areas that have high vehicle populations. The store must be sufficiently spacious with spare parts stacked neatly on clearly labelled rakes or sections. There must also be ample and secure parking space with even a loading bay where applicable. The auto spare parts store business plan should cater for the costs of purchasing or leasing the premises.

Competitive Analysis

Your auto spare parts store business cannot operate in a vacuum. There are competitors and you must study them closely. What are their business offerings? What is the nature of their customers and where are they from? Generally how are they running their auto spare parts store businesses? You are looking at all these and more to find out loopholes or gaps. The auto spare parts store business is extremely competitive. Your success can only be borne out of having superior differentiators. It will take conducting an in-depth competitive analysis to figure them out. The auto spare parts store business is highly segmented. Most players are not diligent enough in studying and finding out the finer details of their intended target markets. Take time to dig into that and you will discover how to set apart your auto spare parts store business.

Permits/Licenses, Insurance & Business Bank Account

Your business entity i.e. your auto spare parts business must be registered first and foremost. If you are going to be operating using a physical auto spares store, a store license will be needed. The requirements vary depending on your specific location. Mostly you can seek guidance on that from the local authorities of your respective location. There may be special permits or licenses that may be required depending on the nature of your services. It is possible that you might be dealing with auto spare parts, substances, machinery, or processes that require special licensing.

It could also be that some of your personnel may be required to be licensed for their respective trades. You have to see to it that you are not found wanting by operating without proper permits or licensing. Insurance is a no-brainer in running an auto spare parts business. There is an array of possible risks which need to be covered by insurance. As always it is smart to separate yourself from your business in terms of financial management. That is why you must open a business bank account solely for your auto spare parts store business. The costs of insurances and licenses must be included in your motor spares business plan.

Auto Spare Parts Products

Your product range will be hugely based on your targeted market. There auto spare parts market is huge and there several niches which your auto parts business can target. Your motor spares parts can specialize with selling auto parts for only one vehicle make eg Mercedes-Benz, Audi etc. Specialisation can also be according to product lines, eg gearboxes, suspension parts, engines, cooling systems, braking system, tyres etc. Focus can also be made to sell quick replacement auto spare parts eg brake pads, brake shoes, high pressure pumps, filters etc.  Other auto spare parts stores act like one-stop stores which sell a variety of products without specialising in anything.

The types of auto spare parts products you can sell are many and diverse. Some of them are bumpers, radiators, filters, batteries, plugs, fenders, ball joints, shock absorbers, body parts, bearings, plugs, lamps and lights (i.e. headlamps, corner lamps, tail lights and so on), sensors, rims, grills, lubricants, amongst others. It’s important to source your stock from reputable suppliers and at favourable prices so as to subsequently price them competitively at a profit. Your auto parts store business plan should obviously cater for the costs of purchasing the products which your store will be selling. You can source your auto spare parts from local and international suppliers.

Inventory Management

Effective inventory management is pivotal for the success of an auto spare parts store, as it ensures the right parts are available when needed without overstocking or facing shortages. First and foremost, understanding market demand is crucial; you should analyze which auto parts are most needed based on local vehicle types and seasonal trends. Implementing a reliable inventory system, such as real-time tracking software, is essential for monitoring stock levels, forecasting future demands, and identifying sales trends. This system should be complemented by regular inventory audits to verify physical stock against system records, thereby preventing discrepancies and theft. Organizing inventory into easily accessible categories based on part type, vehicle make, or sale frequency is also vital for efficient operation and customer satisfaction. It’s equally important to establish strong supplier relationships for a consistent supply chain, which can also aid in negotiating better prices and terms.

Adopting advanced inventory practices like Just-in-Time (JIT) inventory can further optimize stock levels, minimizing the cost of holding large quantities of inventory. This approach, coupled with offering special orders for less common parts, helps in managing space efficiently and reducing the risk of unsellable stock. Investment in employee training is essential, ensuring that staff members are proficient in using inventory systems and understand the importance of accurate stock keeping. Embracing technological advancements, such as barcode scanners, RFID tags, and cloud-based inventory systems, can significantly streamline inventory processes and improve overall efficiency. Constant monitoring and adjustment of inventory management strategies are imperative to align with evolving market trends, customer needs, and business growth.

Budgeting and Financial Planning

Budgeting and financial planning are integral components when embarking on the journey of starting an auto spare parts store business. To ensure the long-term success of your venture, it is imperative to carefully consider various financial aspects. First and foremost, assess your initial investment requirements, encompassing expenses like leasing or purchasing a suitable retail space, store setup, inventory acquisition, and legal fees. Crafting a comprehensive budget that delineates your startup costs is essential in understanding your financial footing from the outset.

Once your business is up and running, meticulous management of ongoing operating expenses is paramount. This includes accounting for monthly expenditures like rent or mortgage payments, utilities, employee salaries, and marketing costs. Simultaneously, managing your inventory efficiently is critical in this line of business. Implementing robust inventory tracking systems and setting reorder points will help you strike the right balance between having enough stock to meet customer demands without overstocking or risking shortages of essential parts. A well-thought-out pricing strategy, based on factors such as cost of goods, competition, and perceived value, should be developed and regularly reviewed to maintain competitiveness and profit margins.

Moreover, financial forecasting plays a pivotal role in your business’s success. Begin by creating a sales forecast, supported by market research and historical data, enabling you to set realistic revenue goals. To complement this, financial projections spanning the initial years of operation, including income statements, cash flow statements, and balance sheets, should be developed. These projections not only provide insights into your business’s financial health but also facilitate the identification of potential cash flow issues. Additionally, incorporating contingency planning and exploring various financing options, while remaining cautious about overburdening the business with debt, are essential steps. Collaborate with a tax advisor to ensure you are compliant with tax obligations and make the most of industry-specific deductions or credits. Regular financial reviews, comparing performance against your budget and projections, will help refine your strategies and ensure the continued prosperity of your auto spare parts store business.

Staff And Management

This will be depend on the size or scale of your auto parts business operations. At the minimum you need cashiers and store attendants. I can’t overemphasise the importance of having staff that’s well acquainted with auto spare parts and the technical details thereof. Hiring either qualified personnel with the necessary expertise or employees wielding a comprehensive background regarding vehicle repairs and maintenance will be strategic. The staff must also be passionate about engaging with customers, and be good at offering quality customer service and care. Size of management also depends on the size of the business, for small auto spare store businesses, this can just be the business owner. The salaries of all the staff should be budgeted for in the auto spare parts business plan.

Market for Auto Spare Parts Store Business

In the world of auto spare parts retail, recognizing and comprehending your potential customers is an essential aspect of building a thriving business. Consider automotive enthusiasts and do-it-yourself mechanics. These individuals are on the lookout for high-quality parts, accessories, and tools to maintain or enhance their vehicles. Your store’s success can hinge on providing a comprehensive range of products and expert advice tailored to their needs. Professional mechanics and auto repair shops represent another lucrative customer segment. They require a consistent and dependable source of spare parts for their daily operations. By offering competitive pricing, timely delivery, and exceptional customer service, you can establish lasting relationships with this critical demographic. Fleet managers, overseeing businesses with vehicle fleets like delivery services or taxi companies, present an opportunity for bulk purchasing options and tailored service agreements.

Additionally, don’t overlook the potential of car dealerships in need of spare parts for vehicle maintenance and repair. Forge partnerships with local dealerships by offering attractive pricing and efficient order processing. In the digital age, a significant portion of customers prefer online shopping. To capture this market segment, it’s crucial to create a user-friendly e-commerce website with easy navigation, secure payment processing, and efficient shipping options. Vintage car enthusiasts are another specialized group, often seeking rare and hard-to-find parts for their beloved classics. Providing expertise in sourcing and stocking unique components can win the loyalty of this passionate customer base.

Local car owners seeking parts for routine maintenance or minor repairs represent a valuable demographic within your community. Building a strong local presence through advertising and word-of-mouth can effectively reach and engage this group. Off-road and specialty vehicle owners, including motorcycle enthusiasts, require specialized parts and accessories. Tailor your offerings and knowledge base to cater to the distinct needs of these niche areas. For a consistent stream of business, consider pursuing contracts or partnerships with government agencies, municipalities, and public transportation services, as they frequently require spare parts for their vehicle fleets. Businesses in the agricultural and industrial sectors rely on vehicles and machinery that demand spare parts. Targeting these sectors with relevant products and specialized services can unlock additional revenue streams.

Marketing Plan

First things first – press release & official launch.

When starting an auto spare parts store you must do a proper press release. A press release is one of the most tried and tested means to market your business. Marry that with doing a notable official launch of the store.

Digital Marketing Must Be Central

The core of your marketing initiatives, moving on, should be premised on digital marketing. Put up active social media accounts for the auto spare parts store business. One of the trending ways nowadays is to conduct online contests on social media. Your contests must incorporate the use of hashtags and rewarding the highest engagements.

Involving social media influencers can enhance the efficacy of your digital marketing efforts. Though of course you can and must still place ads in print and other electronic media. For example, you can place ads to be aired on radio or TV. Hand out fliers or put up banners, posters, or billboards.

Participation In Strategic Events & Initiatives

Additionally, you must always be on the lookout for strategic events to attend. These can be trade shows, car shows, racing events, expos, and the like. Participate in community development programs to increase visibility of your auto spare parts store business.

Keys To Profitability

Unlocking profitability for your auto spare parts store demands a multifaceted approach. Efficient inventory management takes the top spot. Striking the right balance between having enough high-demand parts to meet customer needs and avoiding overstocking is crucial. Implementing an inventory tracking system will optimize stock levels, ensuring you neither tie up excessive capital nor risk stockouts. Competitive pricing is another pivotal factor. Study your competitors’ pricing strategies and find the equilibrium that allows you to remain competitive while preserving healthy profit margins. Regularly reviewing and adjusting your pricing according to market fluctuations is essential for sustained profitability. Exceptional customer service can make or break your business. Establish strong customer relationships by offering expert advice, timely assistance, and a seamless shopping experience. Happy customers are more likely to return, bolstering your profitability over time.

Nurturing solid supplier relationships can enhance profitability by leading to favorable terms, discounts, and credit arrangements. Maintaining strong connections with your suppliers can result in better pricing and preferential treatment. Effective marketing efforts, encompassing both online and offline channels, should not be overlooked, as they can significantly increase your store’s visibility and drive sales. Managing operating costs effectively is paramount, with regular reviews to identify areas for cost reduction while maintaining quality and service standards. Expanding your product range beyond spare parts, offering related products or services, can diversify revenue streams. Continuous improvement is a constant endeavor, with feedback from customers and employees serving as valuable inputs. Stay abreast of industry trends and leverage technology to remain competitive and profitable. Monitoring your financial performance closely through regular reviews of financial statements, cash flow, and profit margins is essential to identify trends and proactively address any issues. Investing in employee training and motivation is crucial, ensuring knowledgeable staff who provide excellent customer service and remain motivated and productive.

Pre-Written Auto Spare Parts Store Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the auto spare parts store business, we encourage you to purchase our well-researched and comprehensive auto spare parts store business plan. We introduced the business plans after discovering that many were venturing into the auto parts business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global auto spare parts business plan will make it easier for you to launch and run your auto spares business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the auto parts business.

Uses of the Auto Spare Parts Business Plan (PDF, Word And Excel)

The auto spares store business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your auto parts store business
• As an auto spare parts store business proposal
• Assessing profitability of the motor spares business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

Contents of the Auto Spare Parts Business Plan (PDF, Word And Excel)

The auto parts business plan include, but not limited to:

• Marketing Strategy
• Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
• Industry Analysis
• Market Analysis
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Operational Strategy
• Why some people in the auto spare parts store business fail, so that you can avoid their mistakes
• Ways to raise capital to start your auto spare parts store business

The auto spare parts business plan package consists of 4 files

• Auto Spare Parts Store Business Plan – PDF file (Comprehensive Version – 68 Pages)
• Auto Spare Parts Store Business Plan – Editable Word File (Comprehensive Version – 68 Pages)
• Auto Spare Parts Store Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 42 pages)
• Auto Spares Parts Store Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the percentage markup, salaries etc, and all the other financial statements will automatically adjust to reflect the change. 

Click below to download the Contents Page of the Auto Spare Parts Business Plan (PDF)

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Get the Auto Spare Parts Store Business Plan (PDF, Word And Excel)

Click Buy Now  below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

If you want to purchase multiple business plans at once then click here: Business Plans Store.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

We wish you the best in your auto spare parts store business! Check out our collection of business plans  , and more business ideas .

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Auto Parts Store Business Plan Template & PDF Example

• September 4, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful auto parts store. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your auto parts store’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of an auto parts store business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the retail industry, this guide, complete with a business plan example, lays the groundwork for turning your auto parts store concept into reality. Let’s dive in!

Our auto parts store business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the store’s operations, marketing strategy, market environment, competitors, management team, and financial forecasts.

• Executive Summary : Offers an overview of your auto parts store’s business concept, market analysis , management, and financial strategy.
• Store & Location: Describes the store’s design, amenities, and why its location is appealing to potential clients.
• Supply & Products: Lists the products provided by your auto parts store, including types of auto parts and pricing structure.
• Key Stats: Shares industry size , growth trends, and relevant statistics for the auto parts market.
• Key Trends: Highlights recent trends affecting the auto parts sector.
• Key Competitors: Analyzes main competitors nearby and how your store differs from them.
• SWOT : Strengths, weaknesses, opportunities, and threats analysis.
• Marketing Plan : Strategies for attracting and retaining customers.
• Timeline : Key milestones and objectives from start-up through the first year of operation.
• Management: Information on who manages the auto parts store and their roles.
• Financial Plan: Projects the store’s 5-year financial performance, including revenue, profits, and expected expenses.

Auto Parts Store Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your auto parts store’s business plan, offering a concise overview of your store and its services. It should detail your market positioning, the range of auto parts and accessories you offer, its location, size, and an outline of day-to-day operations.

This section should also explore how your auto parts store will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your store’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the store’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your store’s financial plan.

Auto Parts Store Business Plan Executive Summary Example

Business Overview 

When detailing the  business overview  in your executive summary, it’s crucial to provide clear and concise information. This includes the name of your store, its location, and an overview of daily operations.

These details not only introduce your business but also set the stage for its unique qualities. Indeed, a  unique selling proposition  ( USP ) is what sets your store apart from the competition. Whether it’s your focus on high-quality replacement parts, performance enhancements, or automotive innovations, your USP should be a focal point of your executive summary. It’s what captures the interest of your audience and showcases the unique value your business brings to the market.

Example: For instance, “Precision Auto Parts,” located in downtown Springfield, operates from a 3,000 sq. ft. space on Main Street. It offers a wide range of products including engine components, car accessories, tools, and maintenance supplies. Their USP is the unique combination of high-quality replacement parts and performance enhancements, ensuring both reliability and innovation for vehicle owners and professionals.

Market Overview 

Understanding and presenting the  market size , growth trends, and industry dynamics are integral parts of the  market analysis . This section should highlight the potential of the U.S. auto parts store industry, backed by relevant data like market value and growth rates. Discussing industry trends, such as the increasing demand for reliable and high-quality auto parts, provides insight into the evolving landscape and where your store fits within it.

Equally important is the competitive landscape. Your executive summary should identify  key competitors  and explain how your store positions itself in this environment. Whether you focus on premium brands, exceptional customer service, or a curated selection of auto parts, this is your opportunity to showcase how your store is poised to stand out in a crowded market.

Example: Consider Precision Auto Parts in the U.S. auto parts store industry, valued at $206 billion with a 4.1% annual growth rate. While competing with local specialized shops and national chains in Springfield, Precision Auto Parts differentiates itself by offering premium brands such as Bosch, Mopar, Ford Genuine Parts, and Continental, catering to both casual consumers and professional mechanics.

Management Team 

The management team’s background and expertise are significant assets to your business. In your executive summary, highlight the key qualifications and experiences of your team members.

This might include your co-founder’s extensive experience in the automotive industry or your head buyer’s expertise in sourcing high-quality auto parts. Demonstrating the team’s expertise not only builds credibility but also assures potential investors and partners of your store’s capability to succeed.

Example: At Precision Auto Parts, co-founders Jane Doe and John Smith lead the team. Jane, with a background in automotive engineering, provides strategic leadership, oversees product selection, and ensures the store offers cutting-edge products and parts that meet customer needs. John, with a background in finance and accounting, manages the company’s finances, including budgeting, financial reporting, and inventory management, ensuring financial stability and growth  opportunities  for the store.

Financial Plan 

The financial plan overview should succinctly summarize your financial goals and projections, including revenue targets and profit margins, to provide a clear picture of your store’s financial trajectory.

Example: Precision Auto Parts aims for $4.5 million in annual revenue by 2028, targeting a 10%  EBITDA  margin. The financial strategy includes initial investments in high-quality store design and inventory, with sales growth driven by effective marketing and community engagement. We project steady growth, positioning Precision Auto Parts as a leading auto parts retailer in the local market.

Business Overview

For an auto parts store, the Business Overview section can be concisely divided into 2 main slides:

Store & Location

Briefly describe the store’s physical environment, emphasizing its layout, organization, and the overall atmosphere that welcomes customers. Mention the store’s location, highlighting its accessibility and the convenience it offers to customers, such as proximity to major highways, shopping centers, or ample parking space. Explain why this location is advantageous in attracting your target clientele.

Supply & Products

Detail the range of auto parts and accessories offered, from essential components like brake pads and filters to specialized parts for various vehicle makes and models. Outline your pricing strategy , ensuring it reflects the quality of products provided and matches the market you’re targeting. Highlight any packages, bulk purchase deals, or loyalty programs that provide added value to your customers, encouraging repeat business and customer loyalty.

Market Overview

Industry Size & Growth

In the Market Overview of your auto parts store business plan, start by examining the size of the auto parts industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key Market Trends

Proceed to discuss recent market trends , such as the increasing demand for high-quality aftermarket parts, the shift towards online sales and digital platforms, and the growing interest in environmentally friendly and fuel-efficient automotive products. For example, highlight the demand for parts that cater to specific vehicle makes and models, alongside the rising popularity of DIY vehicle maintenance and repair.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your auto parts store in the market and its key competitors; it’s also a fundamental component of your business plan.

This analysis helps in identifying your auto parts store’s unique selling points, essential for differentiating your business in a competitive market.

In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying Your Competitors in the Auto Parts Industry

The first step in conducting a competitive analysis is to identify your competitors. Begin by listing local auto parts shops and larger retail chains that sell auto parts. If your business specializes in high-performance or aftermarket parts, your direct competitors include other specialty shops as well as online retailers that offer similar products. Also, consider indirect competitors like full-service auto shops that might sell parts as part of their services.

Use tools like Google Maps to visualize where these competitors are located. Review platforms like Yelp and other customer feedback sites can provide insights into the  strengths and weaknesses  of these competitors through customer reviews. For instance, if a competitor is frequently praised for its customer service and extensive inventory, these are significant strengths.

Auto Parts Store Competitors’ Strategies

Analyzing the strategies of these competitors involves several key areas:

• Product Offerings:  Evaluate the range and types of auto parts offered. If “Performance Parts Co.” is known for its wide selection of high-end modifications, this indicates a consumer interest in specialty products.
• Pricing Strategy :  Examine how competitors price their products. Are your prices competitive with discount stores like “Budget Auto Parts,” or do they align more closely with premium providers like “Elite Motors Parts”?
• Marketing Tactics:  Look at how competitors market their products. Do they use online advertising, SEO strategies, or partnerships with auto repair shops and car clubs?
• Customer Service:  Consider the level of service provided. For instance, “Helpful Parts Hub” might be known for its knowledgeable staff and excellent customer support, which can be a major differentiator in the market.
• Technology Use:  Observe if competitors use technology to enhance their sales process, such as online catalogs or e-commerce platforms, like “Auto Parts Online.”
• Operational Efficiency:  Note if competitors use innovative processes to improve logistics and inventory management, such as automated stocking systems or efficient delivery options.

What’s Your Auto Parts Store’s Value Proposition?

Reflect on what sets your auto parts store apart. Maybe you provide a highly specialized selection of vintage car parts, or perhaps you offer same-day delivery services that are unmatched in your area.

Identify market opportunities through customer feedback and industry trends, such as a rising interest in eco-friendly automotive products, which could be a market niche if not extensively covered by competitors.

Consider your location: An auto parts store in an urban area might focus on parts for common commuter vehicles, whereas one in a rural area could cater to farming equipment and off-road vehicles.

First, conduct a SWOT analysis for the auto parts store , highlighting Strengths (such as an extensive inventory of high-quality auto parts and knowledgeable staff), Weaknesses (including high operational costs and strong competition), Opportunities (for example, the growing trend in DIY vehicle maintenance and repair), and Threats (such as economic downturns that may decrease consumer spending on auto parts).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain customers through targeted advertising, promotional discounts, an engaging social media presence, and community involvement.

Marketing Channels

Utilize diverse marketing channels to engage with customers, increase brand awareness, and drive traffic to your store.

Digital Marketing

• Website Optimization:  A user-friendly, informative, and visually appealing website is indispensable for an auto parts store. It should showcase a comprehensive catalog of products, including detailed descriptions and compatibility information. Implement search engine optimization (SEO) strategies to improve online visibility and ranking on search engines.
• Social Media:  Leverage social media platforms such as Instagram, Facebook, and YouTube to showcase products, share informative content, tutorials, and customer testimonials, and engage with the automotive community. Regular posts, interactive content, and community engagement contribute to brand visibility and customer interaction.
• Email Marketing:  Email marketing campaigns can keep customers informed about new arrivals, promotions, discounts, and educational content related to vehicle maintenance and part installations.

Local Advertising

• Local SEO:  Local SEO strategies are essential to ensure your store appears in local search results when customers are seeking auto parts nearby. Register your business on online directories, optimize listings, and use location-specific keywords in your online content to enhance local visibility.
• Collaborations:  Forge partnerships and collaborations with local mechanics, car clubs, or automotive events. Sponsor or host workshops, seminars, or car meets to establish a strong local presence and connect with potential customers.

Promotional Activities

Offering enticing promotions and incentives is an effective way to attract customers to your store.

• Seasonal Promotions:  Seasonal promotions aligned with automotive needs, such as ‘Winter Car Care Packages’ or ‘Summer Performance Upgrades,’ capitalize on changing customer requirements.
• Exclusive Deals:  Implement customer loyalty programs that reward frequent purchases, referrals, or membership subscriptions. Exclusive deals for bulk purchases or for specific professions like mechanics or car enthusiasts can encourage customer retention.

Sales Channels

Implement effective sales strategies to drive revenue and ensure a seamless shopping experience.

In-Store Sales Tactics

• Upselling and Cross-selling:  Train staff to suggest complementary products or services during customer interactions, like recommending fluids with part purchases or maintenance accessories.
• Incentivized Purchases:  Offer discounts or perks for customers who buy specific bundles, encouraging them to purchase related products together.
• Customer Service Excellence:  Ensure knowledgeable and friendly customer service to enhance the shopping experience.

E-commerce and Online Presence

Enhance accessibility and convenience:

• Online Store:  Develop an e-commerce platform where customers can browse and purchase parts online, with options for delivery or in-store pickup.
• Online Support:  Online support through live chat or email assists customers with inquiries, technical assistance, and guidance during the purchasing process, ensuring a smooth online shopping experience.

Membership and Rewards Programs

Encourage loyalty and repeat business:

• Membership Benefits:  Provide exclusive perks for members such as early access to sales, discounted installation services, or extended warranties.
• Rewards System:  Implement a rewards program where customers earn points for purchases, redeemable for discounts, freebies, or future services.

Strategy Timeline

Finally, create a detailed timeline that outlines critical milestones for the auto parts store’s opening, marketing efforts, customer base growth, and expansion objectives, ensuring the business moves forward with clear direction and purpose.

The Management section focuses on the auto parts store’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the auto parts store toward its financial and operational goals.

For your auto parts store business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your auto parts store’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your auto parts store business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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Auto Parts Store Business Plan Sample

Published Sep.23, 2013

Updated Apr.19, 2024

By: Cynthia Turner

Average rating 4.3 / 5. Vote count: 6

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Table of Content

Do you want to start Auto Parts Store business plan?

Are you looking to learn how to open auto part store? The business can be a great investment if you have a basic understanding of different kinds of automobiles and their part requirements. Starting an auto parts business is relatively simpler as it doesn’t require abundant resources.

The business management side is also relatively easy as you can start it on a small scale. There isn’t a need to have a huge team or a large shop to start up the business initially. This can significantly benefit you if you are new to management and business.

You can also easily draft up an ecommerce startup business plan for your business. As a guide you can look at related plans such as convenience store business plan . For a better reference, you can take help from this automobile parts business plan.

Executive Summary

2.1 the business.

Best Rev will be an auto parts store owned by Sheldon Cooper in Manhattan. The primary aim of the business will be to reduce the hassle of vehicle owners by providing them best condition spare parts for their automobiles. The business will offer a wide range of services and products for the ease of its customers.

2.2 Management of Auto Parts Store

If you are just learning how to start an auto parts business , the best advice you will find is to establish strong management. You can have good management through adequate planning. And there is no better way to plan out every aspect of your store than through an auto parts store business plan pdf like the one presented here.

You can also take aid from relevant business plans like used auto parts business plan or an auto dealership business plan .

In this business plan motor parts shop example, we will guide you about all the components of a strong business plan. Of course, you can alternatively also hire business plan experts to do this work for you.

2.3 Customers of Auto Parts Store

The customers of Best Rev will belong to all classes, and work domains as vehicles have become a fundamental part of life for a majority of the world’s population. The recurring customers of the business will be:

• Personal Vehicle Owners
• Private Dealerships
• Professional Racers
• Cargo Vehicle Businesses

2.4 Business Target

The main aim of Best Rev is to become a reliable and trustworthy source of good auto parts and maintenance services among its customers.

The financial targets that the business wants to achieve within the first five years are mentioned below:

Company Summary

3.1 company owner.

Best Rev will be owned and operated by Sheldon Cooper. Sheldon completed his Bachelors in Mechanical Engineering two years ago, after which he pursued an engineering position in a noteworthy motor company. However, six months ago, he left the post to fulfill his lifelong passion of starting his own automobile parts and maintenance store.

3.2 Why the Auto Parts Store is being started

Sheldon noticed that Manhattan experiences a lot of traffic, but there are no auto shops or parts stores located in the area or anywhere in the 15-mile radius. Here, he saw the opportunity to cater to vehicle owners of Manhattan and the nearby regions. The result was Best Rev, an auto parts store that deals with the maintenance and repair of vehicles and the provision of spare parts.

3.3 How the Auto Parts Store will be started

Step1: Plan Everything

Good planning is the most crucial step when learning how to start a car parts business. The best aid in planning and managing a business is its business plan. To write your vehicle spare parts business plan, you can take help from this automobile spare parts business plan. Best Rev is an automobile spare parts shop, for which the business plan is detailed here. You can take help from this example or go through other examples like used car dealership business plan to get an idea of what to include when planning for a start-up.

Step2: Define the Brand

What comes next is to highlight your business and its unique propositions. This can be achieved by creating a brand around your business idea. This will include everything from the principles it follows to its unique value above its competitors. This will introduce a good image of your business to your customers and also help you create a space for yourself in the market.

Step3: Establish Your Corporate Office

The next step is to manage the physical aspect of the business. Sheldon decided to rent out two back-to-back small shops in the main Manhattan commercial area. He decided that one of these shops would be the face of the business where all dealing will customers will take place. All the spare parts will also be stored in this area. In contrast, the other shop will be used to maintain and repair vehicles.

Step4: Establish a Web Presence

Establishing a web presence is integral in today’s market. Therefore, Sheldon decided to develop a website for the business and social media presences for marketing.

Step5: Promote and Market

The final step is to develop a good marketing plan and stick to it.

 Services

Before you start an auto part business, you need to decide on your business’s services to your customers. You may have many auto parts business ideas, but you can’t implement everything in the business initially. Therefore, you have to pick and choose what you will start with.

You can follow this guide on how to start an auto parts business to figure out what the market for the business looks like and what services are ideal to be included in your start-up.

The series of steps to follow can be confusing when learning how to become an auto parts distributor. Therefore, we have described everything here in detail. Since Sheldon started with a variety of services, this format can be used to develop even a flower shop business plan .

• Spare Parts Distribution

Best Rev will sell spare parts for all kinds of automobiles as its base service. As a result, most of the auto parts in demand will be readily available, while there will also be an option for customers to order the parts custom to their vehicle.

• Maintenance

In addition to providing spare parts, Best Rev will also offer maintenance services to its customers. This will include

• Engine Check
• Break and Battery Fluid change
• Thorough cleaning of the engine
• Repair Services

The customers of Best Rev can also bring their vehicles to the store to get any part fixed. In addition, the business will have mechanics available at all times who will deal with any problems a vehicle might have.

• Cleaning Service

Our last service will be the cleaning service. Our customers can bring their vehicles and get them serviced and cleaned in just 20-40 minutes, depending on vehicle type.

Marketing Analysis of Auto Parts Store

When starting an auto parts business, you should have an excellent understanding of your target market. You can gain this understanding by doing an extensive market analysis as a part of your automobile spare parts business plan pdf. This analysis should look into the past, present, and future market trends for you to make the best choices.

excellent work

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Your automobile parts business plan should also analyze the price of similar services in the market. This data should be used to forecast the prices you will set for your own products and services.

If you don’t know what to include in your motor vehicle spare parts business plan, then you can take help from the document here. Also, if you are having difficulty conducting a marketing analysis, you can look at the marketing plan of this business plan motor parts shop.

5.1 Market Trends

According to IBISWorld, the auto parts industry holds a market size of $66 Billion in the United States, employing almost 400 thousand people. The industry is continuously in demand as more and more people adopt automotive vehicles in their life. So, opening a business in this industry is a very smart move as the demand will only get bigger.

5.2 Marketing Segmentation

The potential customers of Best Rev will be as follows:

Business plan for investors

5.2.1 personal vehicle owners.

The primary customers of Best Rev will be people who own cars for personal use. As a majority of the population of Manhattan owns cars, our business will expect these customers to be quite regular. They are expected to avail maintenance and cleaning services most often.

5.2.2 Private Dealerships

Our second target customer will be private dealerships looking to fix up cars and sell them. We will provide them with the spare parts and maintenance services required.

5.2.3 Cargo Vehicle Businesses

Due to the vast amounts of construction being carried out in Manhattan and surrounding areas, we expect our third most frequent customers to be cargo vehicle businesses looking for spare parts, maintenance, and cleaning services.

5.2.4 Professional Racers

Our final customer group will be professional racers. They are expected to avail our spare parts and maintenance services, although not that often.

5.3 Business Target

• To become the most reliable distributor of spare parts across Manhattan
• To provide quick services to our clients
• To earn a net profit of $40k/month at the end of three years
• To keep itself in the good graces of customers.

5.4 Product Pricing

Our prices will be economical compared to our competitors since they won’t pay extra shipping fees for spare parts.

Marketing Strategy

To gain attention in the market among your competitors, you need to highlight your competitive advantages. This is crucial in developing a business, especially an online auto parts business.

You can market what makes you unique in the industry through a solid marketing plan. A market plan will not only allow you to bring light to your strongest features, but it will also help you in learning how to become an auto parts distributor in a saturated market.

So, if you want to develop a strong marketing strategy for your business, you can take help from this motor parts business plan pdf. You can also look at other business plans such as skateboard store business plan to understand how to build a marketing strategy.

6.1 Competitive Analysis

• We have quick customer care services. We respond to customer queries efficiently.
• We have a fast turnaround time as we take customer orders and requests and fulfill them as soon as possible.
• We have excellent customer support staff that guides our customers in choosing the best parts for their vehicle and their budget.
• Through our 24/7 online services, customers can peruse the parts available at the shop or order them on request.

6.2 Sales Strategy

• We will advertise our services through social media platforms like Instagram and Facebook.
• We will offer a 25% discount on our first 25 purchases.
• We will offer significant discounts to our regulars.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

There are a lot of auto parts stores in the world. But only those are popular that make customers happy and satisfied. The success of a business, especially in the automobile industry, depends not only on the quality of parts but also on the customer support staff.

Understanding this importance, Sheldon included some essential features as a part of employee hiring criteria in the automobile spare parts business plan. He also formed a list of employees necessary for running his business. This list can be seen in this auto parts store business plan sample.

7.1 Company Staff

• 1 Receptionist
• 3 Cleaners/Servicers
• 4 Mechanics
• 1 Social Media Strategist and Manager
• 1 Web Developer

7.2 Average Salary of Employees

Financial Plan

You can’t ensure the success of an automobile parts business through just sales. You need to ensure that all the resources are efficiently managed so that your business doesn’t go into a loss.

You can prevent your business from losing resources by developing a financial plan as a part of your motor spare parts business plan. This will include the costs associated with your business’s essential aspects, such as an auto parts franchise cost. In addition, it will analyze where you are spending your money and how you are earning to keep everything in balance.

Here, we are describing the details of the financial plan of Best Rev.

You can also look at a business plan for e-commerce to get a good idea of managing business finances.

8.1 Important Assumptions

8.2 Break-even Analysis

8.3 Projected Profit and Loss

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 Business Ratios

1. How to start an auto parts store?

You can start an auto parts store by developing a good auto parts store business plan.

2. How to open an auto parts store?

For starting an auto parts store, you will need to rent or buy a physical space and create management plans.

3. How to start an online auto parts business?

To start an online auto parts business, you will need to manage your business finances and develop a strong marketing plan. Furthermore, you will need to establish social media presence as well.

Download Auto Parts Store Business Plan Sample in pdf

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How to Start Automobile Spare Parts Business – Ultimate Guide

• by Next What Business Research Team
• Auto And Transport , Business Plans
• August 30, 2024

If you want to start a retail business in the automobile industry, you can consider starting an automobile spare parts business. This automobile-related business is highly profitable. In this article, we intend to explore an auto spare parts business project plan for your reference.

Every auto spare part requires frequent change during the entire lifespan of the vehicle. And only this single reason makes the automobile spare parts industry so lucrative and evergreen. The U.S., Canada, Germany, the UK, Russia, China, India, South Korea, Japan, Indonesia, Thailand, Brazil, Mexico, Argentina, and South Africa are the major automotive aftermarket globally.

There are several ways you can start a business depending on your investment capacity. However, never try to start this business part-time. This type of retail business demands constant dedication and effort to be successful.

Table of Contents

10 Steps to Start an Auto Spare Parts Business

1. choose a business idea.

There are four ways you can start an automobile spare parts business. Below are the following:

a) Automobile Spare Parts Retail Store

This is one of the most profitable and traditional ways of starting this business. In this model, you will need to acquire retail space in a good location. And you will sell the spare parts from that retail counter to your customers.

b) Automobile Spare Parts Store with Workshop

This is another profitable opportunity for entrepreneurs. An auto spare parts retail store with a workshop allows customers to buy the parts and fix them. However, it is a cash-intensive business. With substantial capital investment and strategic planning, you can initiate this type of store.

c) Automobile Spare Parts Online Shop

If you don’t want to operate a brick-and-mortar establishment, then you can consider starting an online store. Additionally, you can run and operate this business model from home. You can open an auto spare parts online shop with low startup capital investment. To know how to set up an online store,

d) Automobile Spare Parts Franchise

If you don’t have any prior experience in the automobile industry, then it is better to start the business as a franchise partner. Even, you can consider spare parts distribution and dealerships also.

2. Conduct Market Research

First of all, you must conduct a market feasibility study to get first-hand information about the market condition and opportunities. It will also help you to understand potential competition from the other operators. It enables you to know how to develop winning strategies that will help you get a break within a few months of starting the business.

Additionally, you can identify the most popular spare parts brands in the local market. Additionally, you will need to identify the different models of bikes and cars that have a high population density in the city.

3. Create  a Business Plan

Crafting a specific business plan is a must for starting this business. Apart from creating a blueprint, the business plan helps to identify the goal and the ways of achieving that goal. Additionally, it helps to secure startup capital from investors or banks.

Develop both a business and marketing plan. Your business plan must consist of information about exactly how you are going to run the business. Additionally, mention the specialty areas if any, and how you will open and maintain your business. Where you will get your car parts, and how you will price them to earn a profit.

Your marketing plan should contain information about your target audience and local competition as well as how you intend to draw in your target audience. You can craft the plan yourself otherwise, you can take the help of professional plan writers or business plan software.

4. Location and Space

After getting the plan properly, you must secure a retail location according to your business model. Choose a location that is easily accessible to your target customers and suppliers. Also, set up a spacious and organized warehouse to store and manage your spare parts inventory.

5. Licensing & Registration

Check the registration and licensing issues of your state. Get the licenses for opening the store, selling spare parts, and have the right insurance. In India, apply for MSME Udyog Aadhaar Registration online. In addition to that, you must apply for the license under the Shops & Establishments Act.

It is always advisable to talk with a local small business consultant for the upcoming tax and compliance liabilities. Presently, GST Registration is a must to start a commercial business in India.

6. Cost and Investment

After getting the knowledge and finalizing the business model, you must calculate the requirement of startup capital. Generally, you have to consider the rent of the retail space, store setup costs, and purchasing the spare parts from the wholesaler or manufacturing companies.

Additionally, you must calculate and keep finance for operating expenses. It will help you in calculating the breakeven and expected ROI of your business.

Read:   Best Personal Loan Apps

7. Procure the Spare Parts

After finalizing the store, you will need to procure the spare parts that you want to sell from your store. Identifying the parts you need and where to find them depends largely on your business plan. According to your plan, talk to the companies and deal with the best quote with MOQ (minimum order quantity). It is advisable to have multiple suppliers to mitigate risks and ensure a steady supply of spare parts.

8. Inventory Management

Implement a robust system for cataloguing and tracking your spare parts inventory. Ensure strict quality control measures to guarantee the authenticity and reliability of your products.

9. Setup the Store

You must set up the store properly. An outdoor sign is a must. Additionally, check the electrification, counter space, and shelves properly. You can consult with an interior designer to have the right floor plan. However, you must use every inch of space properly to get the optimum benefits of it.

10. Hire Employees

Hire the right manpower. In any startup business, initial employees play an important role in achieving initial success. Check, whether you need a licensed mechanic or not. Additionally, if you want to open the store with a workshop then consider keeping an automobile engineer too. There are several free job posting sites that you can explore for headhunting.

Finally, it is time to promote your business . In the initial days, it needs tremendous promotion and advertising. Additionally, the success of this type of niche business highly depends on B2B networking. You must contact other businesses in the industry. As an example, automobile workshops buy spare parts in bulk frequently. You can offer a special discount for them.

Consider selling online. In today’s digital era, you can’t ignore internet audiences. You can sell auto spare parts from online marketplaces or your online store.

Frequently Asked Questions

How much does it cost to start a car spare parts business.

Starting a car spare parts business involves various costs, ranging from inventory to legal and operational expenses. The exact amount can vary based on several factors. It includes location, the scale of your business, and the types of spare parts you plan to sell.

The wider the range of spare parts, the higher the initial investment. Estimate costs based on the types and quantity of parts you plan to stock. If you aim to stock well-known and high-quality brands, be prepared for higher procurement costs. On average, the cost of starting a small car auto spare parts business will be in the range of Rs 10 Lacs to Rs. 25 lakhs, excluding the space rent cost.

Is the auto parts store business profitable?

The profitability of an auto parts store business can be significant, given the consistent demand for automotive components. Some of the factors that influence the degree of profitability are as follows:

• Market Demand
• Product Range
• Competitive Pricing
• Location and Accessibility
• Supplier Relationships
• Operational Efficiency
• Competition
• Economic Factors
• Technological Changes

While there are hurdles, the auto parts store business has significant profit potential, especially with good tactics in place. Entrepreneurs who are ready to invest in customer happiness, keep pricing competitive, and react to industry changes have a good chance of running a lucrative auto parts store.

How do I choose the right suppliers for my spare parts business?

Prioritize suppliers with a reputation for delivering genuine and high-quality spare parts. Negotiate pricing and terms that align with your business strategy.

How can I ensure the authenticity of the spare parts I sell?

Source spare parts directly from authorized distributors or the original manufacturers. Implement rigorous quality checks to ensure the authenticity of each part in your inventory.

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Starting an Auto Spare Parts Business in Zimbabwe and the Business Plan

Posted by StartupBiz Zimbabwe | Jan 7, 2018 | Business Ideas , Business Plans , Retail Industry , Starting a Business | 6

Car ownership has increased significantly in Zimbabwe. A lot of individuals are purchasing new cars everyday (mostly second hand) and others have existing vehicles which also need maintenance. Imagine such a huge market which needs servicing and maintenance and how much opening a car auto parts business will make you a very successful entrepreneur. Operating an auto spare parts business in Zimbabwe is very profitable. 

The auto parts industry is resilient and although Zimbabwe is going through an economic downturn, this industry enjoys good profits. Before you start a motor spares shop business in Zimbabwe, you have to decide on the size of your business, location of business, products to offer and your target market.  You should always carry out a feasibility study, market research and write a business plan before you venture into any business. Do not make the mistake of starting an auto parts shop business or any other business just because someone is doing it and he/she says it’s profitable. This article will explain how to start an auto parts shop business in Zimbabwe, and the auto parts shop business plan.

What you need

Location and Premises

Location will influence the viability of your auto parts business. The best place to start a motor spares shop business is where there are many people with cars eg it would not make much business sense to start an auto parts business in the rural areas as there are few people with cars. It is however important to ascertain that you’re choosing a market that has enough purchasing power. Assess the number of auto parts retailers in your prospective area. Investigate the size of your target market and their income patterns. Use quality marketing and advertising strategies. People can always come and find you because of the quality service and the type of parts you provide. You will need premises which include the auto parts shop, back offices, and a warehouse for your products. 

Market research

You need to conduct market research and come up with a market entry strategy that will keep you viable. Identify your competition and understand how they do business, what their marketing strategy is and the amount of market influence they have. Most auto parts businesses are operated locally, only a few operate as a national chain. Most importantly identify the niche that you want to cater for. This will help you in formulating your marketing strategy.

Auto Spare Parts Products

You have to make a decision on what kind of products you will sell in your auto spare parts shop. There are several vehicle brands, so you can either concentrate on 1 type of brand e.g. your auto parts shop can sell only Toyota spare parts. Alternatively, you can sell spare parts of different brands e.g.  Toyota, Nissan, BMW, Ford e.t.c.

There are many different types of auto parts you can sell. The motor spare products you can offer in your shop include

• Suspension parts
• Shock absorbers
• Ball joints & bearings
• Vehicle headlamps, corner lamps, tail lights
• Electronic censors
• Boots and Bonnets

You need to know exactly where you will get your auto parts supplies and your pricing strategy. Choose a niche you can work in and that is profitable.  The products which you choose to offer in your auto spare parts shop will depend on your target market and the amount of capital you have. You will be sourcing the products from local and international suppliers. 

Some Auto Parts Shop Products

Inventory Management

If you are to succeed you need to manage your inventory properly. Satisfy all your customer needs and make sure that they find all of the supplies they require.The demand is steady over time such it is better if you keep your store fully stocked all the time. You therefore need a good supplier who delivers the right quality and on time. At startup, it may be hard to stock your store with all the auto parts you need. However you can cash in fast if you focus on providing parts that are highly demanded. Profits will keep rolling in if you a wide auto parts selection for your customers.

Cash flow management

Cash can be very difficult to manage in your auto parts business. When it comes to cash flow management, you cannot take chances. Account for all your cash inflows and out flows. In the first few months you may need to put back all the revenue you get back into the business to increase your supplies and grow the business. Costs for the motor spare parts business include salaries of employees, rent, inventory, shipping costs, electricity and water, taxes, insurance and advertising costs.

Management and employees

Depending on the size of your store, the number of your sales staff and cashiers will vary. You will need employees who understand auto parts and also the technical aspects involved. Employees who have a background in the repairs and maintenance of vehicles can do the job even much better. Good management is a determining factor in the success of the business.

Market for Auto parts shop business

Zimbabwe was in a recession from 2000-2008, and then the economy recovered in 2009 when the local Zimbabwean currency was dropped in favour of the United States Dollar. This led to a period of economic growth, which resulted in more disposable income for Zimbabweans. Thus the number of Japanese vehicles imported by Zimbabweans increased rapidly. This created a large customer base for motor spares products. 

It is important that you establish a reliable customer base who will give you repeat business. Repeat business is possible . Try hook your customers by offering repeat discounts. Your loyal customers can also subscribe for a loyalty card and get bonus points which they earn every time they purchase from your store. It will be good if you secure large customers as you will be guaranteed of repeat business. Potential customers for your auto parts shop include short term insurance companies, panel beating and spray painting companies, garages, transport companies, mechanics and individuals.

Pre-Written Auto Parts Shop Business Plan  : Comprehensive Version, Short Bank Loan Version, Automated Excel Financial Statements

For an in-depth analysis of the motor spares shop business in Zimbabwe, purchase our business plan. We decided to introduce the business plans after noting that many Zimbabweans were venturing into the auto parts store business without a full understanding of the industry, market, how to run the business, the risks involved, profitability of the business and the costs involved, leading to a high failure rate of their businesses.

Our business plan will make it easier for you to launch and run a auto spares business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as the auto parts business plan will lay out all the costs involved in setting up and running the  business. The business plan is designed uniquely for the Zimbabwean market.

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The StartupBiz business plans are excellent, well prepared, fully detailed. I had not that much of the financial knowledge of the Agri business I wanted to venture into but I can tell you right now that from the moment I went through those farm business plans I had purchased, I started having the real picture of what I was to get in to,what was needed for me to be financially successful and I would want to tell my fellow mates that if you really want the business you want to venture into to be successful I think you need to get one of the StartupBiz Business plan.You wont go wrong with those ones

It is a great opportunity having you around. Your business plans are well planned after a thorough research. They have actually opened up my approach to business. Thanx

Thanks for the business plan, it’s good, it gives me a good direction of my journey, with this I hope I will prosper,  it’s helpful i learnt a lot.

You have been such a wonderful help.God bless you,I have somewhere to start now….it’s been a dream come true to embark on this

I have been impressed with the level of depth and completeness of your business plans. All product, operational, financial and marketing guidelines are there. Fantastic! Please do add more plans.

I recently used their service am delighted to say I am a happy customer thank you keep it up and God bless with the business

Good job and extensive research on your business plan thank you.

Uses of the Motor Spares Shop   Business Plan (PDF, Word And Excel)

The auto spare parts store business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your auto parts business
• As a project proposal
• Assessing profitability of the auto parts shop business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

Contents of the Auto Spare Parts Business Plan (PDF, Word And Excel)

The business plan includes, but not limited to:

• Market Analysis
• Industry Analysis
• Automated Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, loan repayment calculations, start-up costs)
• Marketing Strategy
• Niches you can concentrate on
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Operational Strategy
• Contact Details of some suppliers
• Why some Zimbabweans in the auto parts business fail, so that you can avoid their mistakes
• Ways to raise capital to start your motor spare shop business in Zimbabwe

The auto spare parts business plan package consist of 4 files

• Auto Parts Shop Business Plan – PDF file (Comprehensive – 64 pages)
• Auto Spare Parts Business Plan – Editable Word File (Comprehensive – 64 pages)
• Auto Parts Shop Business Plan Bank Version – Editable Word File (Short version for applying for a loan – 38 pages)
• Auto Spare Parts Shop Business Plan Automated Financial Statements – (Editable Excel file)

The business plan financials are in USD currency. 

The financial statements are automated. This implies that you can change eg value of stock bought, markup etc, and all the other financial statements will automatically adjust to reflect the change. 

Get the Auto Parts Business Plan (PDF, Word And Excel)

We decided to make them affordable for anyone who would want a business plan, and the price for pre-written business plans is only US$10 for soft copies.

You can purchase via Paynow (Ecocash/Innbucks/One Money/MasterCard/Visa Card)  or via Paypal. You just click Buy Now  (scroll down)    and you will then be taken to payment website where you make the payment. Just follow the instructions; you will be done with the payment process in 2 minutes. We will email the business plan (PDF format, Microsoft word format, and a Microsoft Excel file with the financial statements)  to you within 24 hours, using the email address you provided when you were paying.

You can also purchase  soft copies  at our  offices  in Harare. Visit  StartupBiz Zimbabwe, Suite 201, 2nd Floor, Morgan House, George Silundika Avenue (between 1st Street & 2nd Street), Harare  . The cost of the business plan is US$10 (soft copies).

For any questions, other payment options, email us on  [email protected]  , call/whatsapp us on +263778798072  (Whatsapp us by clicking the link https://wa.me/263778798072 )  .

Click Buy now to purchase using Ecocash, Innbucks, Paypal, MasterCard or VisaCard (US$10)

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We wish you the best in your auto spare parts shop business. Check out  more business ideas and our collection of business plans .  Like us on Facebook , follow us on Twitter , and subscribe to receive notifications of new posts in your email.

A note from StartupBiz Zimbabwe: Everyday we send business updates via Whatsapp. Click the link to join: https://chat.whatsapp.com/KTPPiZpsPPS6laELHIaJ0R or send the word join via Whatsapp to  +263778798072  (Whatsapp us by clicking the link https://wa.me/263778798072 ).

About The Author

StartupBiz Zimbabwe

StartupBiz Zimbabwe is a business research firm based in Zimbabwe. We sell prewritten business plans for various industries including agriculture, transport, manufacturing, retail and education. StartupBiz Zimbabwe also publishes articles on business ideas, business news, business tips, personal finance, entrepreneur interviews and profiles.

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Thank you for the feedback Tanaka

This is awesome

Keep the good work up. This is excellent

good day, may you kindly assist with contacts of people who provide good motor spares for resell. thank you for the excellent ideas….

Nice ideas l like you

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Auto Parts Store Business Plan

Start your own auto parts store business plan

Southeast Racing

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Southeast Racing Parts (SRP) is a small, North Carolina-based automobile racing parts brick and mortar and mail order organization. SRP will remain small in order to offer unprecedented customer attention. Southeast Racing Parts will become the premier destination for entry level and novice racing parts.

The Market Southeast Racing Parts will be participating in an exciting, growing market. Motorsports has seen explosive growth in the USA in the last decade. It is now the fastest-growing sport in the USA. The market is worth $1.5 billion annually. A recent survey indicates that over 385,000 people have competed in organized motorsport events with even more people who have “souped” up their cars but have yet to compete in organized events. Additionally, TV coverage for motorsports has increased dramatically helping fuel growth. Lastly, the Carolinas has experienced record population growth, 25% within the last decade making SRP’s chosen location attractive.

The Organization Southeast Racing Parts is founded on the idea that maintaining satisfied customers is essential to the financial health of the organization. With this in mind, SRP will be working hard to ensure that all of their customer’s expectations are exceeded in all transactions. To maintain a presence within the racing community and close relationships to customers, Southeast Racing Parts will be an active member of the local racing scene through participation and sponsorship.

Products, Services, and Delivery SRP will be both a brick and mortar company serving the local community as well as offering a catalog with a mail order service. The catalog will be a four-color edition and subsequent editions will be analyzed to determine the cost effectiveness of publishing in this format. SRP will offer engine and chassis parts for a wide variety of cars. Safety equipment and set up equipment will also be offered. All of the popular name brands will be offered in addition to an array of generic label parts. SRP will offer coil rating services as well as scaling services for race cars.

Financials Southeast Racing Parts will be profitable from month one. Margins are forecasted to be respectable. Year one sales will be exceptional with a steady growth rate for the first five years.

Southeast Racing Parts is an exciting opportunity that combines a customer-centric organization with an explosive industry. Motorsports is becoming increasingly popular in the United States with more and more people becoming active participants. Even for those who are not true participants, it is now “cool” to have your car “tweaked out” even just for aesthetics. An investment in Southeast Racing Parts is a high growth, reasonable risk opportunity.

1.1 Objectives

• To make Southeast Racing Parts the number one destination for the purchase of entry-level/novice racing supplies in the Carolinas.
• To achieve a modest initial gross profit margin, increasing that by at least 1% per year until reaching our final target.
• To sell a substantial amount of product the first year.
• To maintain a solid growth rate per year for the first five years.

1.2 Mission

Southeast Racing Parts is dedicated to providing racing products that combine quality performance with value pricing. We wish to establish a successful partnership with our customers, our employees, and our suppliers that respects the interests and goals of each party.

Constantly striving to supply what the consumer is asking for, we will continually review what is available in the marketplace, and what isn’t. Improving on what is available and providing new products and services to the areas of need will help ensure our success in a market driven by consumer demand.

Success will ultimately be measured by our customers choosing us because of their belief in our ability to meet or exceed their expectations of price, service, and selection.

1.3 Keys to Success

To succeed in this business, we must:

• Be an active member of the racing community; i.e., attend functions at local race tracks, attend regional and national trade shows.
• Deliver our products promptly.
• Work with our customers on a personal level, as opposed to the “What’s your customer number?” mentality of large mail order firms.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Southeast Racing Parts is a new company, which upon commencement of operations will provide entry-level oval track racers with affordable products and quality service.

2.1 Company Ownership

Southeast Racing Parts is a North Carolina corporation, subchapter S, owned entirely by Tim and Molly Jones.

2.2 Start-up Summary

Our start-up costs are listed on the following page. Major costs include computer hardware, software and setup support; rent, a telephone system, approximately office equipment and furniture, parts shelving and other warehouse equipment, leasehold improvements, and a company pick-up truck.

The company will start out with about three months’ inventory on hand. This means the majority of company assets will consist of inventory and the starting cash balance will not be significant.

You will find that we will need additional funding. The purpose of this plan is to secure financing for that amount.

Later in this plan, when you view the Projected Balance Sheet, Projected Cash Flow and the Projected Profit and Loss, you will notice that we do not show any debt or interest expense. However, by examining these same charts, you will see that we project a sufficient amount of earnings to service a debt load.

Upon negotiations of debt amount and terms, modified charts will be provided upon request.

2.3 Company Locations and Facilities

Southeast Racing Parts will be located at 123 Main Street, Anytown, North Carolina. This location will afford us good visibility along with convenient access for traveling race teams wishing to stop at our location.

Another advantage of this location is the recent announcement of a go-kart/entertainment complex, which will be located directly across the street. This complex will attract many potential customers to our immediate vicinity.

By locating in close proximity to Charlotte, Southeast Racing Parts will enjoy a large built-in customer base. The skyrocketing popularity of NASCAR Winston Cup racing in the last 15 years has only strengthened its role as the hub for most race teams and all the related businesses they’ve spawned.

The sport’s explosion has been so boundless that University of North Carolina-Charlotte researchers conducted a study of the industry to try to determine its impact. The study, completed in December 1996, found that in its surrounding counties, NASCAR racing is responsible for about 2,000 jobs producing more than $200 million in expenditures annually — figures that many in the industry consider conservative in 1998. Many of the people employed within the industry along with their children, other relatives, and friends, take up racing as a hobby.

The Facility We will initially be leasing 3,000 sq. ft. of a new 10,000 sq. ft. building. As needs dictate, our office and/or warehouse facilities could be expanded into an additional 2,500 sq. ft.

We will be sharing this facility with another business that is also involved in racing, and their business attracts many of the local racers. In light of this, we will meet many potential customers simply because of our association with them.

This location will consist of a showroom, office space, and warehousing. All deliveries and shipments will be serviced at this location. We will also have ample parking available.

Southeast Racing Parts will sell racing products to the entry-level/novice racer. These products will include engine and chassis parts along with safety and set-up equipment. Services that we will provide include coil spring rating, along with a scaling service for race cars.

3.1 Product Description

Southeast Racing Parts will assist its customers in selecting the best parts for their application at a price that meets or exceeds their expectations. In the event of a problem, we will be there to assist and counsel the customer to a speedy solution.

We will carry or have quick access to most major lines of racing equipment. We will also carry generic “plain label” merchandise that we will market under our own performance name. Private labeling will allow us, in most cases, to greatly increase our profit margins since the procurement costs are much lower for these types of items.

Even though our target market is the entry-level racer, our product mix will be sufficient to fill most of the needs of even the most hard-core racer. With leisure time at a premium, our reputation for having needed items in-stock will save our customers both time and money. We will be open Monday through Saturday with hours yet to be determined.

Our experience has shown that most entry-level racers’ preference is for low prices. We believe we can offer products that indeed are lower in price without sacrificing the performance and safety concerns that our customers will demand. Southeast Racing Parts will provide precisely the level of service that today’s entry-level racer requires.

3.2 Competitive Comparison

Within our niche, we only have one significant competitor. They, however, do not carry engine parts, which should give us an edge in that respect.

In general, however, our competition is not in our targeted portion of the market. This competition consists mainly of these three groups:

• NASCAR Winston Cup suppliers.
• Asphalt late model chassis builders.
• National mail order suppliers.

More discussion is included later in this plan on competitive businesses.

3.3 Sales Literature

To drive sales initially, Southeast Racing Parts will utilize an existing supply catalog. This four-color catalog will have a different cover with the Southeast Racing Parts logo, phone number, etc., printed on it.

After much research, we found that the product mix in this catalog most closely resembles the needs of the consumer niche that we are focusing upon. An agreement was reached to supply these catalogs to us at no charge. This precludes the need to invest in catalog production at the outset. In turn, we will be using the catalog company as a supplier for some of the inventory lines that we carry. We have developed a price sheet to be enclosed with each catalog.

We will produce flyers in-house on an as-needed basis. These will primarily be to showcase new products and/or to advertise special sales promotions. The flyers will be distributed in the same fashion as the catalogs.

Following are planned means of catalog distribution:

• Give away in-store.
• Enclose in mail order shipments.
• Personally hand out at area race tracks.
• Distribute at local trade shows and auctions.
• Sell for $3 through local racing newspaper business card advertisements.
• Upon the release of a new catalog, we would need to check into the financial feasibility of utilizing direct mail as a means of bulk distribution.

3.4 Sourcing

This is an area that we feel we will enjoy a distinct advantage over much of our competition. Because of our past work experience in purchasing, we have a vast number of supplier contacts within the racing industry. We have good, long-term, solid relationships with many of these vendors which, in many cases, will allow us to achieve decreased cost-of-goods and/or additional terms. Many of these suppliers have already committed to special deals for us, such as waiving their buy-in requirements, additional payment terms, sales referrals, etc.

We will purchase our inventory from both regional wholesalers and direct from the manufacturers. We will use the regional wholesalers more initially because of their ability to service us faster. This will lower our margins slightly; however, we feel that the upside will be that it will allow us to turn our inventory faster. As our sales volume increases, we will shift our buying patterns away from the wholesalers and purchase more of our inventory direct, which will result in increased profits.

3.5 Technology

All computer hardware and software systems that will be utilized by Southeast Racing Parts have been carefully and diligently evaluated. We will use off-the-shelf, PC-based software for accounting purposes including AR/AP, inventory, purchasing, sales, and returns. We will start out with three workstations and expand upon that as necessary.

Many of the computer systems used in the racing industry today are outmoded and obsolete. The major suppliers are reluctant to change because of the huge capital expense to change over their systems at one time. Hence, they keep going with the old and outdated.

By choosing this software, our training costs will be reduced tremendously. Much of the software used by competitors takes weeks to learn and master. Southeast Racing Parts’s use of this software will enable a basic, computer-literate employee to learn the system in one day.

This system will speed our order entry process, assist us in sales forecasting, and allow us to give a higher level of customer service.

3.6 Future Products

We must remain on top of new products and trends. The most important factor in developing future products is market need. Our understanding of the needs in our market niche is one of our competitive advantages.

As stated earlier, we will have our own private label brand. Not only are profit margins better than name brands, but these accessories will help build name identity and awareness for Southeast Racing Parts when they are used on the race track. As our sales volume increases, this will be an area that we can expand.

Another natural area for expansion in the future would be the implementation of a website. On-line commerce is becoming an increasingly attractive option, due to relatively low cost of operation, the global reach of the medium, and the increasing security. Our business model could quite easily expand to include a form of Internet commerce in a variety of racing equipment.

Market Analysis Summary how to do a market analysis for your business plan.">

Overall it is estimated that the total retail market for hardcore racing products is $1.5 billion annually and it still continues to grow.

The only real threat to our venture would be a similar new entry to the marketplace. This opportunity may best be described as one ready and waiting for the first entrant who arrives with a well-conceived plan, sufficient industry experience, and the required capitalization.

4.1 Market Segmentation

The racing industry is in a boom period. While there are many items from various vendors available, Southeast Racing Parts has approached the market as a specialty retailer — a provider of parts and services to the entry-level racer.

Our target customer in this segment will have a wide range of racing and automotive skills, but our most important target customers are relatively unsophisticated at racing. We will be able to serve this customer well not only by offering them parts at an affordable price, but also by giving them advice that ensures they get the task done correctly, therefore improving their on-track performance.

4.2 Target Market Segment Strategy

Our segment definition is in and of itself strategic. We are not intending to satisfy all users of racing equipment, but rather those who are just starting out and those who are struggling to keep up. We can save our customers time and money, not so much within our pricing structure, but by assessing their needs and directing them toward the proper product. Racers, by nature, tend to desire a high-end product, when often a low to mid-end product will do as good as, or sometimes even a better job. By always dealing in an honest and ethical manner, we will build customer loyalty and word-of-mouth sales that many of our competitors are lacking.

4.2.1 Market Trends

Trends are in our favor. We have identified four major trends that help us:

• Motorsports in general, and circle track racing in particular, have experienced explosive growth in the ’90s. Most experts attribute this growth to greatly expanded television coverage of motorsports events. This coverage exposes many more potential participants to the sport. By focusing on affordable entry-level racing, we feel that Southeast Racing Parts will be filling a niche in the market.
• This area has experienced tremendous population growth in the past decade, approximately 25%. As racing and the local population grow hand-in-hand, it should make many more potential customers available to us.
• There are a lot of fathers dreaming their son will be the next Jeff Gordon. In fact, there are tens of thousands of serious young kart racers who have chosen this sport over baseball, football, or basketball. They’ll be the ones that fill the fields in the next decade.
• Finally, there is the aging Baby Boomer generation. Many have discharged their duties to their children, who have grown and moved on, and now there is money and time again. They turn to something they always wanted to do, or return to the sport they loved, and they go racing.

4.2.2 Market Needs

Since our target market is the entry-level racer, the most important needs are service, price, and availability, in that order. One of the key points of our strategy is to focus on target segments that know and understand these needs and are willing for us to fulfill those needs.

4.3 Industry Analysis

With expanded television coverage and an enormous base of grassroots motorsports activity, auto racing is a thriving industry, as well as the fastest growing sport in America. As with baseball, it could be argued that auto racing has grown to such popularity because of its vital grassroots foundation. Our customers will be the Little Leagues and softball leagues of auto racing. Outsiders to the racing industry must understand that racers may be the most obsessive consumers of any industry. Because of the pressure to win, they avidly purchase new technology. In most race cars, several parts will become obsolete in the course of a season, even though they function perfectly well.

Racers are hard on their investment, too. New tires might be a weekly purchase, and several engine freshening expenditures might be called for in a season. A good whack at the outside wall, and a racing retailer has a customer or two for shocks, a-arms, fasteners, hubs, and more.

Racers spend what it takes to win; they are not out merely to enjoy the ride. Any person who has spent any time at all in the racing pit has heard the guy in front of him in the snack bar line describe how he postponed a key household expense–the telephone bill or a new household appliance–to purchase a new right rear tire, or other critical racing part.

To service this sport, there are thousands of small businesses across the country skilled in the ways of horsepower and hooking it to the ground. Whether they make their money from parts or services, retailing or building engines, these businesses make it an easy and convenient matter to go racing. Without these local ambassadors of speed, it is hard to imagine the existence of auto racing in a large scale.

4.3.1 Distribution Patterns

Generally, traditional distribution channels are followed. The products are bought from distributors and/or direct from the manufacturers, who have little say in how products are marketed. As in most industries, price levels decrease as volume increases.

4.3.2 Competition and Buying Patterns

We feel that racers understand the concept of service and availability, and are much more likely to pay for it when the offering is clearly stated.

There is no doubt that we will compete much more against the large mail order outfits than against any small local suppliers. We have good indications that racers/customers would rather pay 5-15% more for a long-term relationship with a vendor providing quality service and support. To this point, the racer thinks about price because that’s what he sees emphasized by the mail order companies.

Availability is of utmost importance. The buyer tends to want immediate, local solutions to their problems and/or needs.

By positioning ourselves at the lower end of the market, we will present ourselves to consumers just getting into racing, and we will sell to a base of customers that we can grow with together.

4.3.3 Main Competitors

• (omitted to protect confidentiality)

The above are all targeted towards the professional (NASCAR Winston Cup, etc.) market. They carry a totally different product mix to service that market. Their prices are high, and their interest in selling to the entry-level market is basically nonexistent.

These are both late model chassis builders not targeting the entry-level market. Basically, they stock inventory that’s used just on their own cars. They are both located in the Anytown Motorsports Center business park which is in an out-of-the-way, hard to find location.

They are a large drag racing mail order firm that is skimming the circle track gravy. Since Southeast Racing Parts will cater to the circle track market, we believe that whatever local circle track customers they have will switch suppliers. We will have more knowledge and experience to suit their needs.

As implied in their name, they sell used parts, so in most cases they’re not usable for our target market. They also sell a limited amount of new parts; however, because of their name, most people are not aware of this. Also, they are located in an area which was described earlier as a poor location.

They are the only local competitor that we could identify that was targeting our niche. Following are what we feel are some of our competitive advantages: We feel that we are in a much better location. They utilize a black and white flyer as their main sales tool, and we will have a professional four-color catalog. Also, they concentrate mainly on chassis and safety equipment, where we will also offer a full array of engine parts.

4.3.4 Industry Participants

We are part of the Performance Racing Industry, which includes several kinds of businesses.

Speed Shops : Most of these are small, sometimes part-time ventures run from the individual’s home. Sometimes they will service a local race track; however, they usually carry a very minimal amount of inventory, and are usually operated by a racer or an ex-racer depending solely upon a small circle of friends or acquaintances as customers. They normally are short on business and marketing skills.

Engine & Chassis Builders : Typically these are well-respected firms supplying engines and chassis to the racing industry. Their customer profile lies in the mid to upper end of the market. They offer superb technical support; however, it is only available to customers utilizing their engine or chassis. They stock parts to service their engine or chassis, but are usually limited in areas areas beyond that. Normally their pricing structure is slightly above average.

Mail Order : The racing industry is served increasingly by large mail order firms that offer aggressive pricing on racing components. They are usually impersonal, and have little or no technical support available. For the purely price-driven buyer who purchases parts and expects no support, these firms offer a good option.

Others : There are many other channels through which people buy their racing parts, usually variations of the main three types above.

Strategy and Implementation Summary

Our strategy is based on serving the niche of entry-level racers well. This area is full of small race teams that can’t get products or services from the major vendors who focus only on professional race teams. Also:

• What begins as a customized version of a standard product, tailored to the needs of local racers, can eventually become a niche product that will fill the needs of similar racers across the country.
• We are planning our marketing strategy so that we can eventually reach specific kinds of racers across broad geographic lines.
• We focus on satisfying the needs of entry-level race teams.
• We focus on follow-on technology that we can take to the masses, as opposed to leading edge technology that aims at the professional race teams.

5.1 Marketing Strategy

The retail marketing strategy of Southeast Racing Parts centers on creating a corporate identity that clearly defines our market niche in terms that benefit our customer. Other specific strategies that will be used follow:

• Print Ads – Keeping the Southeast Racing Parts name in front of the customer while getting established will be necessary. We plan on running limited space ads in the local racing newspapers to keep our name and phone number in front of the consumer. We may attempt to showcase a single product in an effort to return revenue from the ad. Our past experience has been that showing measurable revenue from these types of ads is difficult. In the future we plan on utilizing Stock Car Racing magazine and Circle Track magazine (both national magazines) as a method of increasing our sales revenue.
• Press Releases – The local racing papers: The Racing News, Late Model Digest, Dirt Late Model Digest, and The Pit List have offered to run releases and/or stories concerning the opening of Southeast Racing Parts. Stock Car Racing magazine has also extended us the same offer. We will also use the above media to run new product releases.
• Race Car Sponsorship – Entry-level racers can be persuaded into running the Southeast Racing Parts logo on their race car in exchange for a token discount on purchases and/or for receiving technical support.
• Decals – We will have decals manufactured with the Southeast Racing Parts logo. We will include the decals with all of the orders that we ship. Entry-level racers in particular enjoy displaying decals on their race cars, haulers, tool boxes, etc.
• Apparel – We know several people in the area who produce NASCAR apparel. A line of premium Southeast Racing Parts apparel could be designed and produced in very short runs to reduce inventory costs. These can be sold or given away with qualifying purchases to further expose the Southeast Racing Parts name.
• Grand Opening – A Grand Opening is the most successful of any in-store promotions. With manufacturer support, a large number of door prizes can be given away while instantly building a mailing list. Loss leader pricing on a few high volume consumable products will attract in-store traffic. Vendors will subsidize loss leader pricing with a rebate or kickback. Appearances by local racing celebrities would also expose potential customers to Southeast Racing Parts.
• Trade Shows – We will exhibit at approximately four local trade shows annually. Revenue that we produce at the shows will outweigh our expenses for attending.
• Word of Mouth – By giving first-time customers great service and a fair price, the word is sure to spread. Also, the many industry and racer contacts that we already have in the area will prove to be most beneficial in spreading the word.

All marketing decisions with regard to specific media choices, frequency, size, and expenditures will be conducted on an on-going basis with careful considerations of returns generated.

5.1.1 Promotion Strategy

Our most important vehicle for sales promotion will be our catalog, which is discussed earlier in this plan.

5.1.2 Distribution Strategy

Our customers will buy our products at our location. However, we anticipate a significant amount of mail order sales in order to meet or exceed our Sales Forecast. We will receive orders by mail, phone, or fax, process them immediately, and ship the goods via United Parcel Service.

In the event we are out of an item or we don’t stock it, many of our vendors have offered drop shipping as a service to us. This will allow us to keep our service at a high level, yet let us keep our inventory levels in check.

In the future, electronic commerce with a secure website will be thoroughly investigated for feasibility.

5.1.3 Pricing Strategy

Our customers are especially sensitive to value. We must ensure that our price and service are perceived to be a good value to the racers. However, in the nearly thirty years of experience that we have accumulated in the racing industry, one message rings true: someone can always beat you on price.

Therefore, our pricing strategy is to be competitive within the various product categories, but not to rely on the selling price to overshadow the other advantages of doing business with our company. We will sell ourselves on the basis of a diverse line of quality products, that are readily available, reasonably priced, and backed up by our extraordinary customer service. The products will be checked prior to shipment and all promised shipping dates will be met.

We will strive for a modest gross profit margin, increasing that steadily by year four.

5.2 Sales Strategy

Because Southeast Racing Parts is a new entity, we understand that we will have to prove our company’s worth to racers in order to earn their respect and business.

Most importantly, we need to sell our company, not necessarily the products. We will need to push our service and support capabilities.

5.2.1 Sales Forecast

The following table and related charts show our present sales forecast. We are projecting sales to grow at steadily for the next three years.

Our seasonality, as shown in the chart, is a factor in the racing industry. We will tend to sell much better in the period January through June, while sales trail off in late summer and fall.

Management feels these forecasts are highly attainable.

When Performance Racing Industry completed its annual survey, the resulting figure for total number of racers was 385,000. Within the survey they also found that 150,000 of those were oval track racers. The survey also showed $1.5 billion in annual retail sales for all segments, with 48% of that total ($720 million) derived from the oval track segment.

By dividing that number ($720 million) by the number of oval track racers (150,000), the average annual retail purchases of oval track racers equals $4,800. From our past experience, we believe that each customer we have would spend on average 25% of that figure ($1,200) with our company. Finally, by dividing our first year sales forecast ($350,000) by $1,200 (average annual customer purchases), it shows that we will need 292 customers to support the sales forecast numbers. We believe, by and large, that these are realistic and attainable numbers.

5.3 Strategic Alliances

We have the ability to build strong strategic alliances with many of our suppliers, some of which are listed below.

• (omitted to protect confidentiality). They will set us up as a Warehouse Distributor (W.D.) without the buy-in requirement.
• (omitted to protect confidentiality). They will do “whatever they can” to help us succeed. Possibly supply us with a show car to display in our showroom.
• (omitted to protect confidentiality). They will set us up as a W.D. without the buy-in requirement.
• (omitted to protect confidentiality). They will set us up as a W.D. and could also be persuaded into extending us special terms.
• (omitted to protect confidentiality). They will set us up as a W.D. and help out as needed with additional terms.
• (omitted to protect confidentiality). They have set us up as a dealer and will drop ship when needed.
• (omitted to protect confidentiality). They will work with us by drop shipping direct to our customers and also by acting as a “paper” warehouse so that we may order direct from the manufacturer for a nominal billing fee.
• (omitted to protect confidentiality). Could be persuaded into giving us extended dating on our initial stocking order.
• (omitted to protect confidentiality). They will supply us with used testing equipment at no charge. They have indicated that they would also extend special terms and/or dating on initial stocking order.
• (omitted to protect confidentiality). They will supply us with their 94-page 4-color catalog at no charge.
• (omitted to protect confidentiality). They will set us up as a direct W.D. without the buy-in requirement. Will also assist us in marketing their products in this area.

The following two local warehouses will help us immensely in keeping our own inventory levels in check, while still giving our customers fast service:

• (omitted to protect confidentiality).

Approached properly, these vendors and many others will assist Southeast Racing Parts in becoming a force in the marketplace.

5.4 Milestones

Sample Milestones topic text.

The milestones table and chart show the specific detail about actual program activities that should be taking place during the year. Each one has its manager, starting date, ending date, and budget. During the year we will be keeping track of implementation against plan, with reports on the timely completion of these activities as planned.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

We are a small company owned and operated by Tim and Molly Jones, husband and wife, as a Subchapter S corporation.

Tim Jones – President Tim will be the main salesperson. He will also be responsible for shipping and receiving, inventory management, and the marketing and promotion of products. Tim will assist with record keeping and cost containment.

Molly Jones – Corporate Secretary Molly will maintain the company records and be in direct communication with the accountant and other advisors. She will also be in charge of the computer system and perform all of the desktop publishing for the company. She will assist as needed with sales, shipping and receiving, and customer service related issues. In addition to her regular duties, Molly will be doing Internet marketing from her office at Southeast Racing Parts. We anticipate that 20 hours every week will be dedicated to this marketing. The revenue that will be generated by this is reflected in the Sales Forecast.

The initial management team depends on the founders themselves, with little back-up. We plan on hiring additional personnel as the need for them arises, and as we have the ability to pay them.

6.1 Management Team

Tim and Molly not only have the desire to succeed, but will bring a wealth of knowledge and experience to the Southeast Racing Parts team. They have nearly thirty years of combined experience in the racing industry and have both performed nearly all facets of daily operations for a racing business. Following is a synopsis of their abilities and accomplishments:

Tim Jones (40) – President (background omitted to protect confidentiality)

Molly Jones (29) – Corporate Secretary (background omitted to protect confidentiality)

6.2 Management Team Gaps

We depend on professionals, particularly our CPA, for some key management help. We have retained a local CPA to help us with financial and business management questions since we don’t have a strong background in those areas. Also, we are short on experience concerning human resource issues; however, we plan on utilizing our network of business associates to advise us when the need arises.

6.3 Personnel Plan

The cornerstone of the personnel plan is to maximize productivity and minimize the labor burden on the company’s operating expenses. As we grow, we expect to see steady increases in our personnel to match the increases in sales.

Financial Plan investor-ready personnel plan .">

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Starting Auto Spare Parts Store Business in South Africa – Business Plan (PDF, Word & Excel)

Posted by BizBolts | All Articles , Business Ideas , Business Plans , Retail Industry

An auto spare parts store business in South Africa is very lucrative and profitable. Car ownership is increasing significantly in South Africa every year. A lot of South Africans are purchasing new and used cars everyday, and others have existing vehicles which also need to be maintained. There are over 12 million registered cars in South Africa, this is according to data from National Administration Traffic Information System (eNatis). Every year, more than 400 000 new vehicles are sold in South Africa. This is according to data from the National Association of Automobile Manufacturers of South Africa (Naamsa). This creates a huge demand for motor spares. Consider how large a market there is that requires servicing and maintenance, and how much starting a car auto parts business will make you a very successful entrepreneur in South Africa.   Every automobile requires frequent part changes during its entire lifespan so setting up such a business can be profitable.   This article will outline how to start a motor spares business in South Africa, and the auto spare parts store business plan – PDF, Word and Excel.

Market Research

It’s important that you carry out market research before you start the motor spares business. Important decisions to make include deciding on the location of your business, the products you will offer, your target market and the size of your business. Understand your target market, and what kind of products they want. Identify and study your competition. Assess the competition at your proposed location. Through carefully studying your competition and customer trends you will find a gap in the market and also find ways to offer better services. You need all the information you can get to formulate a great customer experience model that won’t be easily contested. You should also have a good motor spares business plan before you venture into this business.

When researching the market, you must segment it based on your potential customers’ demographics. It is important to get first-hand information about the market’s conditions and the opportunities in your area. After determining your target market, the next step would be to outline the products you will offer your customers. Researching your market will also help you know who your competition is, and it will enable you to figure out ways to develop strategies that work. In addition, by researching the market, you can find out what the popular spare parts brands are in the local market. This will help you find out more about the different models of bikes, motor vehicles, and other heavy-duty vehicles that have a high population density in your area. It is important to note that market research is done on a regular basis. The information you get from conducting this research will help you make more informed decisions about your existing operations and activities. You can set competitive prices, find affordable distribution channels, and identify gaps in the auto parts market.

Location & Premises for Motor Spares Business

Location is a big factor in determining the success of your auto spare parts business. You should locate your auto parts store business in a place where there are many people with cars. It would be unwise to locate your motor spares store business in a rural area which has few car owners. There are several possible locations: shopping centres & malls, industrial areas, urban areas and in the CBD. People can always come to your motor spares store because of the quality service and the type of parts you provide.You will need premises which include the auto spares store, back offices, and a warehouse for your products.  Your premises should have sufficient parking space for your customers. Your auto spares business plan should cater for the costs of renting or buying premises.

Products for Auto Parts Store Business

The kind of auto parts products to sell will depend on your target market and business strategy. There are different niches you can target. Some specialise with spares for one make eg Toyota spare parts. Others may choose to specialise in one product line eg cooling systems, suspension parts, braking system, gearboxes, engines etc. Some motor spare businesses in South Africa focus on quick replacement parts eg. high pressure pumps, brake pads, shocks and shoes. You can also sell a variety of products without specialising in anything. The products which you can sell in your auto spare parts store include Suspension parts, Body Parts, Ball Joints , Belts , Oil Pumps , Tyres, Fuel Pumps , Clutch Plates , Pressure Plates , Fenders , Bonnets , Radiators , Ignition Plugs , Seat Covers , Mountings, Bushes & Shock Pads , Filters , Bearings, Discs & Hubs , Rubber Boots , Brake Pads & Brake Shoes , CV Joints, Shock Absorbers , Lubricants  and Batteries. The products can be sourced from local suppliers and international suppliers.

Auto Spare Products

Competitive Analysis

The automotive components sector takes up a significant share of the total production capacity in the South African manufacturing industry. The auto spare parts sector is a highly diversified industry with engine and auto component manufacturers, aftermarket parts manufacturers, a number of dealers, suppliers, and various retailers. In order to build a successful auto spare parts business, you need to stand out from your competition, and this requires knowledge of who your competitors are and what they offer. A competitive analysis will help you with this information. A competitive analysis is a study of your competitors’ products, services, as well as sales tactics. With a competitive analysis, you can evaluate your competitors’ strengths and weaknesses. It is important to note that a conducting a competitive analysis should be done regularly. This is because it will help you see your own strengths and any potential barriers to growth that you may encounter. A competitive analysis will also keep your business proactive instead of reactive. Many businesses operate based on preconceived ideas regarding their competitors and market landscape, but those ideas may not be true or may be obsolete. When conducting a competitive analysis, you should study your direct and indirect competitors. Find out who their clients are, what the pricing is like, and how they promote their business.

Staff & Management

The number of employees you need will depend on the size of your auto spares store business. The is need for finance/accounting personnel who will be responsible for all the day to day transaction accounting for the motor spares store business. This will include the tracking of all transactions and the management of cash flow, and ensuring there are enough funds available to meet the day to day payments.

Operations & logistics personnel are responsible for coordinating with suppliers and sourcing all the products which will be sold in the auto parts store, and arranging delivery of sold products to customers. They are also responsible for inventory control, ensuring that the shop has all the products in stock and in the right quantities, and determining when to place new orders. You also require cashiers and shop assistants. Your auto spare parts store business plan should cater for the salaries of your employees.

Knowledgeable staff members will add value to your team by helping the customers buy the correct products. There is a wide range of products available at motor spares shops, customers often get confused. Anyone can easily find themselves making small blunders by buying the wrong product. If you have inexperienced staff members on your team their training program should focus more on learning about the different products sold in the store so they are able to give informed advice to customers.

Cash Flow and Inventory Management

You should account for all the business cash inflows and cash outflows. Ensure that you have a good inventory management system, so that you don’t run out of products which are needed by clients. When starting your motor spares business, it maybe difficult to stock your store with all products because of limited capital. You can start with quick moving products, and ensure that you reinvest all the money into the business. With time, you will be able to stock a variety of products in your auto spares store. Profits will keep rolling into the business if you offer products which are needed by your target market.

Marketing Plan

A marketing plan is one of the most important business tools your business can have. A marketing plan is usually the missing link between the strategic direction of your motor spare parts business and the delivery of results. There are a number of activities or ideas you can consider when creating your auto spare parts marketing plan. One of them is sharing some tips and information on social media to attract new customers. You can even hold a car show where people can gather and watch you in action. The exposure will pay off since shows connect with local enthusiasts, and the buzz will attract new clients. You can also contribute parts and/or funds to a project vehicle to gain some more exposure. Consider collaborating with an automotive company for similar promotions. Somewhere, there may be another company trying to reach the same market that your company is trying to reach. Another important factor to consider in your marketing plan are customer reviews. Do not underestimate the power of consumer reviews because these testimonials are incredibly influential. Studies have shown that customers will consider reviews first before making a purchase, especially if they haven’t done business with the company before. It is important to develop a marketing plan if you want your business to grow. Think of a marketing plan as the engine that drives your sales.

Market for Auto Spares Business

There is a huge market for auto parts products in South Africa due to the increasing car ownership. Potential customers for your motor spares business include individuals, companies, organisations, transport companies, p anel beating and spray painting companies, insurance companies, garages, mechanics and auto repair companies. It’s wise to establish a customer base which gives you repeat business. If you offer quality products at good prices, customers will always come back to your motor spares store. Build customer loyalty by giving discounts to your regular customers. Give quality service. Advertising is also required to attract more people to your auto spare parts store, thus boosting sales. Advertising can be via word of mouth, flyers & brochures, online advertising, social media marketing, print media, and sponsoring the community  amongst other ways.  

PRE-WRITTEN AUTO SPARE PARTS STORE BUSINESS PLAN (PDF, WORD AND EXCEL): COMPREHENSIVE VERSION, SHORT FUNDING/BANK LOAN VERSION AND AUTOMATED FINANCIAL STATEMENTS

For an in-depth analysis of the motor spares store business in South Africa, purchase our auto spare parts store business plan. We decided to introduce the business plans after noting that many South Africans were venturing into the auto parts store business without a full understanding of the industry, market, how to run the business, the risks involved, profitability of the business and the costs involved, leading to a high failure rate of their businesses.

Our business plan will make it easier for you to launch and run a auto parts business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as the motor spares business plan will lay out all the costs involved in setting up and running the motor spares business. The business plan is designed specifically for the South African market.

USES OF THE MOTOR SPARES BUSINESS PLAN (PDF, WORD AND EXCEL)

The motor spares store business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your auto spares store business
• As a motor spares store project proposal
• Assessing profitability of the auto spare parts stores business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

CONTENTS OF THE AUTO PARTS STORE BUSINESS PLAN (PDF, WORD AND EXCEL)

The business plan includes, but not limited to:

• Market Analysis
• Industry Analysis
• 5 Year Automated Financial Statements [ Income statements, cash flow statements, balance sheets, monthly cash flow projections (3 years monthly cash flow projections, the remaining two years annually),break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortisation]
• Marketing Strategy
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Operational Strategy
• Why some South Africans in the auto spares business fail, so that you can avoid their mistakes
• Ways to raise capital to start your auto parts store business in South Africa
• Directory (Contact details of motor spares products suppliers)

The Auto Spare Parts Store Business Plan package consist of 4 files

• Auto Spare Parts Store Business Plan – PDF file (Comprehensive – 76 pages)
• Auto Parts Store Business Plan – Editable Word File (Comprehensive – 76 pages)
• Auto Spares Store Business Plan Funding Version – Editable Word File (Short version for applying for a loan – 46 pages)
• Auto Spare Parts Store Business Plan Automated Financial Statements – (Editable Excel file)

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GET THE AUTO SPARE PARTS STORE BUSINESS PLAN (PDF, WORD AND EXCEL) - R500 Only.

We decided to make the business plan affordable to anyone who would want to start the business, and the price for the pre-written business plan is only 500 Rand.

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About The Author

BizBolts (Pty) Ltd is a business research company based in Johannesburg, South Africa. We sell prewritten business plans for various industries including livestock production, crop farming and retail businesses. BizBolts also publishes articles on business ideas, business news, business tips, personal finance, and entrepreneur profiles.

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How to Start an Auto Parts Store – Sample Business Plan Template

By: Author Tony Martins Ajaero

Home » Business ideas » Automotive Industry » Auto Repair

Do you want to start an auto parts store online from scratch? Or you need a sample auto parts shop business plan template? If YES, then i advice you read on. As long as people still use automobile on our roads, the need for auto spare parts will continue to be in demand. Auto spare parts business is indeed a profitable business because the replacement of damaged or worn – out auto parts is compulsory if you want your vehicle to continue to be on the road and serve the purpose you bought it for.

If you are looking for a business to start as an entrepreneur and you know you have interest in the automobile industry , then you should consider starting your own auto spare parts sale business. Although you don’t need a college degree to establish your own auto spare parts store, but you would need some form of informal training, you might have to work as an apprentice with someone who owns an auto spare parts store. It makes it easier for you to learn the ropes and how to manage your own auto spare parts stores.

It is important to point out that auto spare parts business is one the businesses that can’t go out of fashion simply because of the role it plays in the auto industry. Depending on the scale you want to start, the startup capital for this type of business can be considered to be moderate. As a matter of fact, you can start your own auto spare parts store and then grow it big within a short period of time by re – investing your profits back to the business.

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• How Much Does It Cost to Open a Mechanic Shop?
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• How to Do SWOT Analysis for an Auto Repair Shop
• 5 Best Insurance Policy for Auto Repair Shop

Now let us quickly consider the 7 surefire steps to follow to be able to start an auto spare parts store in your city and build it to profitability within the shortest time possible;

Starting an Auto Parts Store – Sample Business Plan Template

1. conduct your feasibility studies.

Part of what you need to do to be able to start your own business on a positive and promising note is to first and foremost conduct a feasibility studies to get first hand information that will enable you know how to develop winning strategies that will help you breakeven within few months of starting the business.

As a matter of fact, your feasibility studies would give you an idea of the spare parts and brand that is in high demand in the city you intend establishing your auto parts store. You should conduct surveys that will reveal the brand of cars that are commonly found in your city.

For example, if the reports you got from your surveys revealed that the cars used in your city are Toyota , Honda, Nissan, Mazda and Mitsubishi products, then there is no point stocking your shop with BMW, Mercedes Benz, and Cherokee spare parts. It will pay you to only stock your spare part store with the parts of the vehicles that are commonly used in your city.

2. Learn the Trade

In as much as you don’t require a college degree or any formal training before you can start your own auto spare parts business, it will be to your advantage to acquire informal training in this line of business. So, ensure that you look for an established auto spare parts dealer to understudy.

It could be for a period of one year or more. It is important that you learn the trade because you will be required to easily identify auto parts specifications and some other details. Beside some clients would request that you advice them on what part to buy.

3. Raise Your Startup Capital

You would need a moderate startup capital to establish a standard auto spare part. Well moderate can be relative, because the cost of renting a store might vary from location to location. The capital you raised is what you will use to stock – up your store. It is important you know that you will need an auto spare parts business plan to raise money.

4. Register Your Business and Obtain the Required License

It is important that you register your auto spare parts business before opening your shop to the public. In some states in the united states and some other countries, you would be required a license to be able to own an auto spare parts business. Therefore, ensure that you make enquiries from your local authority to confirm if you would need a license and the procedures to follow to obtain it.

5. Rent a Store in Suitable Location

Normally, it is advisable to go around town to identify locations where existing auto spare parts stores are located before choosing a location for yours. The truth is that the location you choose to rent a store for your auto spare parts business determines the success of the business. It will pay you to choose a location where you will face less competition from other auto spare parts dealers.

6. Source for Suppliers of Various Brands of Auto Spare Parts

Part of what you need to do to get your auto spare parts business rolling is to source for suppliers of various brands of auto spare parts. There are various auto spare parts manufacturers all over the globe; it is your responsibility as a retail auto parts dealer to compare prices so that you can get good deals that will help you maximize profits.

7. Employ and Train your Sales Clerks

You would need sales clerks to help you attend to customers and it is important that you employ staffs that are interested in the auto industry. The truth is that if you have acquired the required training, it would be easier for you to train your staffs.

There are various auto parts that look alike, but can’t function in same position. That is why you must train your staffs to check for details before selling any auto parts to your clients. As a matter of fact, once your customers notice that you and your sales clerks are knowledgeable, they will always come back to buy auto parts from you.

Lastly, if you have successfully established your own auto spare parts store, as part of growing the business, you can consider opening and online auto spare parts store. With online auto spare parts store, you will have a wider reach.