The global tire market is broadly classified into six categories depending on the type of vehicles. They are
passenger car tire
light commercial vehicle tire
medium and heavy commercial vehicle tire
Off the Road tire.
As per automobile experts, the global tire market is forecasting a growth at a CAGR of 8.4% in value terms during 2016-21. This implies that demand for tires is to grow in the coming years.
The first step is doing a market researchto understand the demand for the local market.
2. Location || Selecting Shop
Generally, tire stores are seen doing good in cities and small towns and highways.
Ensure there are less competition in your area. Pick a position on the busy highway that has a wide front opening for easy access to visibility. The place nearby petrol pump or gas station may also be considered. You'll also need enough space for storage and installation of equipment inside. To build the floor plan ask an interior expert. Pick the location for storage, installation of the equipment, office, waiting lounge for the customer etc. Since tyre store is highly inventory-oriented business, it is advisable to start the business witha software that is suitable.
Selecting a type of tire shop:There are many ways of starting a tire shop. You can take an authorized dealership of a reputed tire brand like Goodyear®, Uniroyal®, Dunlop®, Firestone®, Goodrich® and Michelin®. and start as an exclusive outlet. Many tire shop owners prefer selling tire of different brands and create a multi-brand store. You can also go for buying a franchise of a reputed multi-brand tire selling company.Affiliate with multiple manufacturers to give customers an array of product choice.
3.Choose the product || License
Choose the product : choosing a product largely depends on the type of vehicles that run in your vicinity. you can sell a wide array of types of tires for heavy-duty vehicles, light passenger vehicles, two-wheeler tire, four-wheeler tire, etc. depending on the amount of funds. The ratio of inventory will depend on the quality of vehicles on the road in the nearby locality. You can also sell rims, tubes in addition to tires in your tire store.
License : Talk to the local appropriate authority and get the required licenses and permits to start and run a tire shop. In addition, form a company with the most suited business structure available in the state or the country.
As a startup, you'll need to determine your tire store's ownership pattern first. By formatting LLP, Pvt. Ltd or Ltd Company in India you can start as a One Person Company or you can go with partners. You will need to have a Trade License from the local authority after enterprise formation. Get GST registration at the earliest opportunity.You can also start the tire store business by having any renowned tire manufacturing brand Authorized Distributorship. Choose a memorable name for your tire store business which is easy to spell. Also, when selecting a name check the availability of the domain. Protect brand name by obtaining registration of a trademark.
4.Inventory and equipment || Manpower required
Inventory and equipment : If you plan to sell tires or a single brand, or purchase a franchise, it will be much easier to select and procure inventory. But if you're starting your own tire shop from scratch, you have to spend a lot of time developing a network of tire suppliers. You must contact the manufacturer and supplier of different brands and create a standing order procedure for purchasing tire inventories .
You'll need some other basic equipment, too. These are a system for balancing, centering tools, tyre shift, tyre pressure and pattern control, wrenches for impact, etc. Gather the goods from a trusted vendor. Verify that equipment's warranty period.
Manpower required : Hire trained, experienced manpower. Ensure that they have minimum work experience, at least. Keeping an Automotive Engineer is advisable. An automotive engineer is the most appropriate person to deal with the requirements of the customer and give them the right advice. Assess the number of staff you need, and create a job profile for each requirement. You can hire a recruitment agency, or advertise your local newspaper vacancies.
5. Software || Funding || Marketing
Software: if you want to run your business professionally, your tire store must be equipped with the relevant software. Tools such as customer relationship software (CRM), point of sale software (POS), and software for proper accounting is a must.
Funding : While the initial investment to get a dealership is about 10 Lakhs, 23 Lakhs will be the maximum investment that is more so in terms of cost to equipment and machinery. MRF recommends a 370 square meter built area which translates to 4000 square feet of total space.
Marketing: To run a profitable tyre shop a carefully crafted advertising plan is extremely critical. Below are a few steps which you can consider:
Publish some print media advertisement about your grand opening of tyre store.
Offer a pick-up and delivery service to your customers.
You can offer some special discount for purchasing tyres with accessories.
Offer some services like wheel balancing free on purchasing tyre.
Keep stock a wide selection. Customers will be more likely to buy tyres from your tyre store if you have a large selection and offer the sizes and brands they are looking for.
Offer promotional gifts to your valued customers like t-shirts etc. It will keep your customer happy and it is also effective as a brand building tool.
Make online presence by creating a website of your tyre store business.
Register your products on popular eCommerce portal to sell the tyre online.