Tips for Starting a Motor Trade Business

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If there is one product people always need, it is a means of transportation. This is why motor trading is a fiercely competitive business. At the same time, beyond such stresses, it can be most lucrative. To this end, it is crucial that you conduct proper marketplace research in drawing up your business plan. The priority question when it comes to vehicle trading is, of course, new versus old. This in itself will dictate to a large extent your target audience, who you wish to sell to. Furthermore, though fired by this entrepreneurial end goal, does your skillset match your aims? If not, there will be the added outgoings for employees to consider. In short, starting a motor trade business is a lot of work, but it can be fruitful in the end.

Know the Competition, Find Your Niche

As property developers will readily tell you, location matters. This is also true in deciding where to base your business. Seek out the competition that is already out there: where are they settled and why? Most times, especially if you’re looking to trade in secondhand or niche vehicles, like having a selection of Yamaha R6 for sale, the location will require substantial passing traffic, whether on foot or by motorized vehicle. If your product isn’t catching anyone’s eye, you’re unlikely to sell, even if you later invest in a top-end website design once your company is off the ground. The ability to be seen in person is the first draw for potential customers. It’s a costly business to relocate. Furthermore, consider what it is about what you’re selling that sets it apart from that competition you’ve settled yourself amidst. Find your unique selling point (USP), your niche, and get marketing.

Branding and Funding

Of course, marketing essentially requires a brand to sell. Therefore, spend time on making it strong enough to stand apart. This will be much easier if you’ve a clear target audience pinpointed in your business plan. For example, you only sell used motorbikes, or secondhand cars, or decided to specialize in nearly new vehicles of only a few select makes and models. By extension, this attention to the finer details of your future company will stand you in good stead when approaching a bank for a start-up loan. Once done, don’t forget to register for and set up your company for tax. In addition, you’ll have to apply for motor trading insurance.

Staffing and Trading

Once all the above preliminaries are in place, the next step is to staff your start-up and invest in trade plates for products bought in for sale. Remember, the more niche the type of vehicle you choose to trade in, the likely more expensive the employee who is trained in its particularities when it comes to mechanics. Investing in trade plates, thereby avoiding individually taxing and insuring each vehicle you bring in to sell, is one way to recoup some of your staffing expenditure. When those customers do roll in, try also to ask for feedback, as a new business will always need adjusting at some future point to fulfill its potential.

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