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There’s nothing more satisfying than opening your very own business, and auto dealing is a profession that isn’t likely to lose in popularity anytime soon. Knowing what to do when starting a car dealership is no more important than knowing what not to do – being aware of common mistakes in this branch of startups has a tendency to turn out extremely helpful. Here’s a couple of common startup mistakes that auto dealers usually make.
You’d be amazed at how many entrepreneurs jump into getting a startup going with poorly outlined business plans, or a complete lack thereof. However, rest assured that your company will be doomed to fail without one. Why? Well, a business plan not only gives you a clear outline of your, well, plan for business, but also stimulates you to define your goals and follow a planned trajectory. It is your mission and your vision that are the very pillars of your company. Without them, you’ll be dead in the water.
Researching your competition is extremely important in a car dealership business; this can help you differentiate your services and products in order to find the exact target audience you’re looking for.
As a part of your business plan, include your business location; this is crucial for any car dealership, seeing as how visible spots should be in your crosshairs.
Going hand in hand with the business plan, the financial one gives you a clear overview of your budget, as well as savings and financial options. Do not go wild financially, at least not at the very beginning – startups can be quite the slippery slopes. Knowing the basics around your financial plan isn’t the only goal here, which is why you should thoroughly outline it. While it is true that it should serve you, as an entrepreneur, the financial plan is a great tool for getting investors on board – if they see how serious and professional your plan is, they are more likely to get into bed with you.
Pro tip: do not send your financial plan to the potential investors; if prompted, tell them you are only willing to show it to them in person, seeing as how they might not share your vision solely based on crunched numbers and graphs.
Although making your car dealership’s business location clearly visible is vital, this is definitely not where your marketing plan should end. Social media websites are excellent tools for getting your name out there, but the importance of having an actual website still goes without saying – without making yourself available on Google, the potential customers might end up thinking that your business isn’t a particularly serious one. Additionally, there is a reason why people say that if you aren’t on Google, you don’t exist!
As a car dealer, you are likely to hear complaints about the vehicles you’ve sold. This is why hiring legal help to be at your disposal is so important. Additionally, as is the case with any business out there, worker injuries have a tendency of taking the money out of your pocket, so, just in case you end up with a lawsuit, having a work injury lawyer on retainer is a smart move.
Some of these mistakes can regularly be seen in any type of a startup, but the outlined ones definitely apply to all car dealerships. Make sure you properly plan things out, get your name out there, hire legal help and create a brand if possible – this should help your business thrive in success!