jrg77

I'm not sure where to ask this question so here it goes:

How does one put together a business model for an aftermarket store/shop?

I see a local need for a place where one can go to upgrade their car. I would like to help people pick and install parts that accomplish. I would like to help them clearly identify where they are, where they want to go and verify that they got where they intended.

For example: Bucky has a 3rd gen. He wants to make his car faster but doesn't want to fail the emissions test. We put together a package and verify the improvement in power and the emissions numbers after the improvements.

Example 2: Rambo wants to setup his Civic for autocrossing, but does not know how to use the rulebook to his advantage. We check the rulebook and comeup with a plan. We use the asphalt park next door to check out how well the package works.

Example 3: Melissa wants to do car shows put does not know how to adjust the lowering kit so she can drive home. We pull out the rubber speed bumps and help her measure the clearance before and after as we show her how to raise and lower the car.


Example 4: Barb wants to get her husband something for his car on his birthday. Since he has a registry with us all she has to do is name the dollar amount and the next part on the list that fits is ordered and sent in the appropriate wrapping paper.

Example 4a: The hubby had already been to us and put together the package for his car and locked in his prices so as he got cash the parts came to his door. Car parts lay-a-way.

There are places that sell parts, and some places that will install parts, but I don't know of any places that will help you understand what you are doing and the compromises involved. Imagine a Home Depot weekend for car owners. "Change your intake - Saturday at 10."

Maybe these are good ideas, maybe they suck. Anybody care to comment?

MCas7

I think it's a great idea and if you lived near me, I would go in on it with you. (If I had the money of course). I can think of a lot of people that would benefit from that idea and I hope you can do something about it.

jrg77

I wonderwhat prohibits the guys that do this already from taking it to this level.

I can definitely see where there's more money in "****" (blue headlights, wings exhaust tips etc.) but I wonder if some format can turn these repeat customers into more knowledgeable buyers that will spend the money on stuff that really works.

I recently went to an import shop where the guy had all kinds of stuff. I asked him about a specific item and he told me that the part he had was better. I looked on his wall and all he had were parts from brand x. The way he did it felt like he was telling me it was raining, but only on my shoe. He has one stall in the back with no lift, but has been there for at least 10 years. Imagine if he could pull out the dyno chart or just could show me the difference in quality.

There must also be some distribution contracts as opposed to dealing direct with the manufacturer. I guess I'll have to figure out who they are too.

Jason

red87iroc

I hope I do not get too long winded here.

You need to create a business plan. Depending on how you plan to get your money (bank, investors, family and friends, etc), will determine some factors of the plan.

You will need to find similar companies to the one you propose, and get some financial information from them (does not have to be exact, but close and realistic.

Most investors will want to see a projected cash flow for the first five years. Again, be realistic. Investors know you will not be showing a profit at the end of the first month. In the cash flow, you need to account for EVERYTHING, rent, payroll, insurance, the telephone, etc.

Next, you need to show you operating plan. Will you rent, lease, or buy your building? What are taxes? How many employees? What are the demographics for the area? What services will you offer (you discussed this in your post)? How is your business different from the others in your area? Who are your competitors? How do you plan to purchase your parts and tools? Do you know who the distributors of the parts you will need, and will they even sell to you? All of these types of details (and many more) need to be considered. How will you market your company?

Last, you will need to have a resume for yourself and anyone else who will be part of the busniess. Investors want to know you have the skills and knowledge to operate this business successfully.

If you are serious about the business, look into your local Small Business Administration for more help.

There is a lot more to creating a business plan, and there are tools on the web, and cheap software that can help.

tankueray

Red87iroc is absolutely right.
Go to http://www.sba.gov/in/indosbdc.html and find the SBDC closest to you. They offer free workshops and counseling to help you out. They will even look over and help you to develop a business plan with the demographics, cost estimates, referrals to similar businesses, etc. They even have loan programs and other info to get you started. I work with the SBA very closely in my profession, and I even helped a guy out last year with the same thing that you're planning. He started small, out of his garage, getting booths in local car shows and by word of mouth. Now he has a large shop and sponsors local concerts, shows, races, etc. But let me warn you, you will be living on Ramen and mac'n'cheese for a while. No business is instant success.
Good Luck.