Regardless of the type of business you want to build, whether it’s an automobile business or any other kind of business, one thing remains certain: planning and organization are essential.
Additionally, you’ll need an enormous amount of strength and determination, plus an undying willingness to sacrifice all your time and energy.
“Would you like me to give you a formula for success? It’s quite simple, really: Double your rate of failure. You are thinking of failure as the enemy of success. But it isn’t at all. You can be discouraged by failure or you can learn from it, so go ahead and make mistakes. Make all you can. Because that’s where you will find success.”
—Thomas J. Watson (Chairman and CEO of IBM)
In this post are three questions to ask yourself before you begin building your automobile business. You can use these questions now to develop momentum as you begin build your business. Use them later to infuse your business with the strength to endure for years to come.
1. Who Are You Selling To?
In order to have a successful business, you’ve got to think like an entrepreneur. What’s more, it won’t hurt to have the courage of one, either.
One way in which entrepreneurs differ from everyone else is this: They have laser-like focus for identifying the types of people who have a problem. And then they develop a service or a product that solves that problem.
This is called “target market research,” and it is incredibly time-consuming. It is a necessary step, though, as building a business that no one needs is like using jalapeño peppers to fish. No one’s going to bite.
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2. How Much Do You Need to Invest?
How much funding will you need? Without enough finances or profits, businesses go belly up.
So go to work to discover exactly how much money you’re going to need for your automobile business. For example, you might know the expenses for items you’ll need for the next couple of months. But do you know what you’ll need in six months? A year? Five years?
Here’s a list of possible start-up costs for your automobile business. Feel free to add more items as they pertain to your particular business:
- Fixtures, equipment and installation
- Manufacturing equipment
- Decorating and remodeling
- Licensing and professional fees
- Inventory and record-keeping
- Hiring a recruiting team
- Monthly expenses due to wages, salaries
- Lease and rent expenses
- Monthly utility bills
- Advertising costs (a must!)
- Payments on any loans
The estimated costs for these items can leave your head spinning. If so, seek the advice of an accountant or a lawyer to help you with these matters.
3. Where Will You Find the Funding You Need?
The list above will show you where your money will go.
Contacting a financial institution (or several) will help you to get funding into your business. However, these institutions will only grant you specific loans, such as the SBA 504 Loan, if you have documented proof of making loan payments on time. You will not be approved if your credit history and business history are in bad shape. (This is only common sense when you think about it.)
This Is the Foundation of Your Automobile Business
Develop your answers to these three questions before you even think about organizing a team of mechanics or designers for your automobile business.
That’s because your answers will form the foundation for your business. Build a solid foundation now, before you begin, and your automobile business will keep its doors open for years to come.
We close with the wise and inspiring words of the immortal Walt Disney: “The way to get started is to quit talking and begin doing.”