STARTING A CAR DEALERSHIP?
Want to be your own boss and spend time around products that excite you? Starting a car dealership may be right for you!
Here is some advise:
1. Do research
Doing some market research is essential. The first step is determining the demand for your particular service, which is providing used or second-hand cars for sale to the public.
You need to find out how many cars have been sold recently in the vicinity of your dealership, what colours were the cars, what make, were they new or pre-owned?
2. Write a business plan
A business plan is needed to show any prospective franchisees and franchisors or for explaining to your lender exactly what you want to do with your car dealership business.
Include costs, lease agreements and any other important documentation.
3. What permissions and documents are needed?
Finding out what documents you need to open a business in South Africa is essential. In South Africa, you need a dealer’s license to allow you to legally buy and sell cars to the public.
4. Stock / Inventory?
Do you have cars to sell?….
Investigate inventory opportunities, such as going to bank auctions to find cars that you can bid on and then resell at a fair price. Remember to stick to your budget!
5. A marketing budget!
Once plan is drawn up and inventory sorted, it’s time to market your business.
Invest your money in a company that can help you to reach your audience.
6. Business Insurance
Here at VUM we are ready to insure your business against unforeseen risks. We specialise in giving real, honest, transparent cover to small and emerging businesses. We understand your business and are ready to give you the cover you need.
