Automotive Business: Directions, Stages of Organization

What is the secret of popularity? The automotive business is constantly evolving. And it’s not just about increasing the number of vehicles per capita across the country. This type of entrepreneurial activity gives rise to new directions that did not exist before.

Why is this beneficial? Everything is very simple here too. Firstly, such a business really brings in good income. Secondly, its payback period is not too long. Thirdly, some ideas can be implemented even in the absence of significant initial capital, or even without it at all.

Reasons for the popularity of the automobile business

A car in the modern world is no longer a luxury. The car is used to solve everyday problems: to get from work to home, to take a child to school or kindergarten, to go shopping to the supermarket. However, every year more and more non-trivial tasks appear, related, for example, to completing work tasks or running a business.

Road transport and all the infrastructure that is associated with it is currently one of the most stable areas of the economy in terms of the dynamics of public demand and the increase in capital turnover in this sector. Not only is the volume of services in physical terms growing, but their range, variety, and range are also expanding. As a result, the level of consumer comfort increases.

The features of the automotive business also include:

• deep motorization of the population (a significant proportion of the population in the country have cars, and some families sometimes have 2-3 cars);
• high rates of motorization (by world standards), even taking into account the interim economic crises in the country;
• the ability to start some types of business in this area using minimal initial costs.

The automotive business (service work, trade services, etc.) is characterized by wide demand, that is, we can say that the demand for these services is not highly elastic, including price (indeed, they are very difficult to replace with any other services with same workmanship). As a result, if you approach the matter wisely, then when organizing an auto business you can very quickly recoup your investment.

5 classic areas of the auto business

The organization of the automobile business can be divided into several areas.

Auto repair service center

This is a classic type of car business. During operation, machines wear out and break down. So services for repairing and replacing failing components and parts will always be in demand. A very important feature of this activity is that the majority of clients to whom the entrepreneur begins to provide these services become permanent (unless, of course, the quality of work is poor). As a result, the company quickly acquires a reliable customer base.

One of the main factors ensuring consumer loyalty is the consistency of price levels. If you don’t chase excess profits, you can establish a guaranteed, constant flow of revenue and an irreducible level of profit. With proper quality of service provision, word of mouth will also work for the entrepreneur.

It is very important to focus on competently building the structure of the auto repair business. It should include the following:

• pre-sale preparation and vehicle maintenance;
• carrying out comprehensive repairs of cars damaged due to road accidents;
• provision of services for routine and preventative repairs of machines;
• painting;
• tire work.

The disadvantages of this business include the relatively high capital intensity of its individual areas. Some pieces of specialized equipment necessary for professional diagnostics and repairs are extremely expensive. At the same time, these services have a very high margin, which means that this type of business activity is very profitable and the costs will pay off quite quickly - usually in 1.5-2 years.

Tuning workshop

This is the best automobile business for those who intend to build their own enterprise in the field of innovation and modern technology. Many car owners want their car to look completely unusual. The obvious solution here is tuning. Permissible changes are made to the outline of the body, the engine is “pumped,” and fashionable “gadgets” are installed in the interior. As a result, the most commonplace and common car turns into a unique model. Every year tuning services are becoming more and more in demand.

However, unlike a car service, a tuning workshop is a very advanced business that requires high qualifications, first of all, from the organizer. When organizing the production process, first of all, pay attention to your competitors. The demand for tuning services (as opposed to repair services) is much more price elastic, since this service is far from essential. Therefore, you will need to provide a higher quality of car modernization than similar enterprises already operating on the market.

You should also focus on the areas of effective demand - you need to find out in advance which services are most in demand in your region. Most tuning service centers perform the following work:

• 3D coatings are applied to glass;
• paint the body with polymer composite compositions;
• change the geometry of the body;
• install stereo systems;
• the discs are treated with special luminous paint;
• install internal and external lighting with LED emitters.

Capital costs here are divided between specialized equipment and an aggressive advertising campaign organized in advance, approximately in a 1:1 ratio. You will have to spend at least $70,000 to start, but due to even greater margins than in the case of a classic car service, the payback for such a business is no more than one and a half years.

Driving school

Many citizens consider personal transport not only as a comfort option. For most, it is also an indicator of status. Therefore, every year there are more and more cars on the roads, and the number of driver’s license holders is growing at the same rate.

By organizing your own driving school, you thus guarantee yourself a very dense revenue stream. The margins here are high, like nowhere else in other areas of the automobile business, but this is precisely what attracts numerous competitors to this segment of business activity (therefore, it can be very difficult to open this completely non-capital-intensive automobile business from scratch). It can take a lot of creativity to make your driving school stand out from the crowd of alternative businesses. Obviously what you will need:

• choose a convenient location;
• think over and organize an effective advertising campaign (and not only on the Internet);
• ensure the resolution of all administrative issues related to the issuance of rights.

You can find out about all such manifestations of poor-quality and unscrupulous work on the Internet by reading reviews on competitors’ websites or on thematic forums. By studying these materials, you can understand what exactly you should pay attention to when organizing your own driving school.

Trade in auto products: spare parts, units and components

Cars regularly break down, require intermediate preventative repairs, and some owners even dream of tuning. All of these procedures require spare parts, materials and components - selling them can become a profitable business. In this case, trade can be carried out in two directions:

• Through the online store . Here you can avoid a large amount of fixed costs associated with renting premises and paying staff. All you need is a warehouse to store the products you sell. You can work with dropshipping, then you won’t have to create warehouse stocks at all.
• Classic offline store . You need to start such a business by renting suitable premises. Great attention should be paid to its proper location and organization of offline advertising. And in this case, you can’t do without a large warehouse.

Car wash

The coatings of modern cars, on the one hand, are becoming more and more durable, but on the other, more “capricious” and sensitive to washing conditions. Owners of premium cars never wash them themselves. As a result, a modern, high-quality car wash is gradually becoming a high-tech service characterized by great demand.

But competition in this area is enormous. So before opening your own car wash, you need to carefully analyze the market and assess the prospects for demand. The most reasonable thing at the initial stage would be to place a bet on that segment of services that is characterized by a minimum level of competition (for example, it could be a tunnel or dry car wash or a self-service point).

And of course, it is very important to choose the right location for the car wash - it should be a point in close proximity to a highway or other road with regular and heavy traffic, near large parking lots.

20 alternative ideas for auto business

However, the auto business is not limited solely to car washes, repairs and the sale of spare parts. Here are some additional ideas in this area:

• Clearing snow from cars

This is a seasonal business, which is especially relevant in the realities of cities with the most solvent population. People are in a hurry to get to work - they have neither the desire, nor the time, nor the energy to dig out their own cars in the morning. They will gladly pay for such a service. In addition, you can add a “lighting up” service here if the client’s car battery runs out due to particularly cold weather. This is an automobile business with minimal investment - you only need your own car and a plastic shovel.

• Gasoline delivery app

This sector of the IT industry is currently actively developing in America and Europe. It can be called a small automobile business. Of course, what is proposed here is not to develop the application itself, but to provide a refueling service. More than 50% of the time, vehicles are stationary. Why not use this time to refuel it?

A potential client downloads the application and fills out a form in which he indicates the parking location of his car, a convenient time for refueling, the required amount of fuel and its type. It is also necessary that the gas tank flap is open. The courier arrives and fills the car, and the money is debited from the client’s card.

• Mobile tire service

Here everything is arranged in approximately the same way as in the case of a mobile gas station. The service team arrives when called to the parking lot and carries out all the required services. If you have a truck, in the back of which you can place the appropriate equipment, the range of work provided will be quite wide: tire repair, seasonal replacement, balancing, restoration (welding), repair and balancing of disks. Subsequently, it will be possible to additionally change the brake pads and discs.

The peculiarity of this business is that a call must be responded to promptly, and work must be carried out, essentially, around the clock.

• Retrofitting vehicles at the owner's request

For vehicles operating on rural roads, devices such as a winch, walkie-talkie, roof rack or towbar are in great demand. All these elements for various vehicle models can be easily found on the market, but their installation takes a lot of time.

If you have the appropriate experience and skills, then you can offer your services in retrofitting machines to order. Such a business will not require large investments. In addition, the demand here is by no means massive, and therefore, to carry out the work, you will only need a single garage turned into a workshop.

• Equipping cars with car alarms

Installing an alarm is the most reliable way to protect your car from theft. In order to open such a business, you will need specialized premises and at least 3-4 competent employees.

• Making creative windshield wipers for cars

This can be called a kind of tuning-light. Here you can let your imagination run wild: you can place hard stickers and signs in the shape of hands or, for example, cat tails on the windshield wipers; You can camouflage the windshield wipers in the form of traffic police batons or even ordinary brooms. It will turn out creative and fun - such a product will definitely find its buyer.

• Making stickers

Body stickers:

• hide paint damage;
• add originality to the car;
• form an additional protective coating.
• PC with specialized software for graphic design;
• wide format plotter with a set of special needles;
• color laser printer;
• a set of films for making stickers (glossy and matte films, reflective and waterproof, etc.).
• Off-road taxi

Such a business is very attractive in places where the main points of attraction are located in difficult to pass places. You can call this type of business “off-road taxi”, or you can call it “auto tour to amazing natural areas” - your choice.

• Cars for rent for special events

If you have a vintage car at your disposal, this is a great opportunity to make money by simply renting it out, for example, for weddings.

True, you need to make such a “retro” look attractive, and in addition, you will have to spend money on advertising.

• Dispatch room for ordering construction equipment

Finding the right special equipment can be difficult. But there is no need to purchase such equipment - agreements with its owners are enough. In fact, the control room is an intermediary between the customer of the equipment and its owner. At the same time, the intermediary’s commission is fully justified by the convenience of the service (you don’t need to look for anyone else - you just need to download the mobile application and place an order). To start a business, you will need to prepare this software, and also invest heavily in advertising.

• Entertainment – ​​riding bulldozers

Even those units of special equipment that have exhausted their service life can be used profitably. For example, you can arrange a bulldozer ride.

• Extreme riding school

In the modern community of car enthusiasts, there are many who would definitely like to have professional extreme driving skills. On the Internet you can find many quite competent specialists in this type of riding who could give appropriate lessons. All you have to do is organize such professionals into a service under your leadership.

Just one hour of training can cost from $100 to $300 (your commission may well be 30%).

• School bus organization

In places where the school serves homes located at a great distance from it, children use public transport. If there are problems with the latter, then the children will not be able to attend classes. If you manage to agree with the administration to launch a targeted route (transporting children to educational institutions), then this may become, although not a highly profitable, but quite stable business.

• Autohostel

The rooms in this “hostel” are garages with small rooms allocated in them. The car owner drives into such a garage, closes the gate and spends the night in a room in close proximity to his vehicle. It is that the potential demand for such hotels near roads is extremely high, because in the regions of our vast country the level of banditry on the highways is still very high.

• Truck car wash

Trucks get dirty much more than cars. In addition, trucks are more difficult and expensive to wash than cars. The car wash should be located in industrial areas, as well as near parking lots and highways. Equipping such a car wash with equipment will cost no less than $400,000 to $600,000. But the payback period here will be approximately the same as for a simple car wash (this is a very profitable automobile business).

• Detailing

Detailing involves comprehensive car care. This includes washing, body care, dry cleaning of the interior, and even the application of innovative coatings to the body. Typically, detailing is a niche business focused on specific clients. You can earn good money from such customers, but, unfortunately, it will not be possible to bring the process to production (the costs will be too high).

The garage is not always spacious, but the number of things stored in it does not decrease. This means that proper placement of appropriate furniture in the garage is required. First of all, we are talking about shelving. They can be produced and sold through online platforms. In addition, you can simply resell carts for tools, wardrobes and all kinds of containers (and the same racks, for example).

• Trailer production

Selling caravans can be a very interesting business idea if you can create a cheap or expensive but exclusive alternative.

For example, in America, craftsmen, through certified workshops, reconstruct and modernize outdated trailers for the same camping. The result is both summer gazebos on wheels or bedrooms, and models for commercial purposes (for example, for selling fruits and vegetables).

• Sales of spare parts for retro cars

Old car models are becoming more and more expensive, and therefore it is more profitable not to throw them into scrap metal, but to restore them and sell them as rarities. As a result, corresponding spare parts are required in ever-increasing volumes, but their conveyor production has long been discontinued. This means that there is a growing deficit in this area. This will allow you to sell these parts at higher prices. Such parts can be of three types:

• original (the most expensive);
• remake (most common);
• restored.
• Car resale

Working through well-promoted accounts on the Internet will allow you to do without organizing car dealerships offline. It is enough just to rent a space in a paid parking lot and buy cars at favorable (low) prices in order to resell them at higher prices in the future. In addition, intermediate corrective work can be carried out in order to remove any defects.

5 good options for auto business in your own garage

Typically, a garage is used by car owners primarily as a car repair shop. But you can develop many other business ideas based on a garage.

Seasonal car treatment

We are talking not only and not so much about anti-corrosion treatment. First of all, this is the replacement of all kinds of technical fluids: oil, antifreeze, brake fluid, etc. These operations can also be performed in a garage. It is also possible to carry out restoration of defects in paintwork.

Airbrush

This is an area of ​​auto body restyling that is in high demand. At a very modest cost, the organizer of such a business can count on a good profit.

It is quite possible to open an airbrush studio even in your own garage - it is only important to prepare this room for this.

Interior reupholstery

Among car owners, not only exterior tuning services are in demand, but also interior improvement and finishing services. Namely, services for sewing covers and complex reupholstery of seats in the cabin are in demand. Your profit will depend on what exactly the customer wants to receive. Depending on your competencies, you can provide the following services:

• for sewing seat covers;
• covering the armrests;
• for finishing interior door panels;
• for steering wheel trim;
• for applying embroidery;
• for engraving.

Anti-freeze production

This liquid is needed to clean the outside of the windshield. In winter, it will not be possible to use ordinary water, since at sub-zero temperatures it will freeze and can deform the nozzles. Therefore, during the cold season, the demand for anti-freeze is especially high.

It can even be produced artisanally, by hand. The process is simple: alcohol and fragrance are added to purified water, and then the resulting mixture is poured into containers and labeled. However, it is still recommended to invest in a simple set of equipment - you can significantly increase production and sales volumes. A peculiarity of the business is that the demand for antifreeze remains at a high level only from November to March (in the summer the goods are sold out reluctantly).

Self-service service

Currently, many car owners are trying to save money on servicing their cars. At the same time, they often do not have a prepared place where they could conveniently inspect and repair the car, nor the proper set of tools. That is why self-service service centers have become increasingly popular, where you can simply pay for the use of a space and tools, and the owner of the car does the work himself.

Payment for such prepared self-service repair stations is usually hourly.

Stages of opening an auto business

And of course, an advertising campaign that stimulates demand is necessary.

Think over your sales policy. Develop a system of discounts and bonuses, you can also create a referral program. These measures will make it possible to turn casual buyers into regular ones.

A ready-made automobile business is a very interesting line of activity for both beginners and experienced entrepreneurs. An attractive feature of such an enterprise is that it does not require exorbitant capital investments. Moreover, if everything is done correctly and consistently, then it will be possible to get by with minimal costs.