Top 5 Tips to remember when starting a Motor Trader Business
Starting a business in any trade is nothing short of an uphill battle, but areas such as the Motor Trade can be exceptionally profitable for those who can conquer their own little corner of the market. In 2017 alone, it is estimated that the annual turnover of the UK Motor Trade Industry was (a not so insignificant) £77.5 billion. You might have a few questions going through your head, such as, “Where do I start?” and “How do I ensure my business is successful?”. In this article we’ll cover things from your online presence to motor trade insurance, to give you a broader idea on what to do to achieve your dream and make sure it’s a success.
Plan your Business
You’re probably thinking “This is obvious” and at face value yes, it is, but what isn’t so obvious is that this plan needs to cover all aspects of your business, from how much you expect it will cost day-to-day, to insurance, and to where you want your company to be in 5 years. The more detail you can get into it, the better. This will give you clear goals to work towards as a checklist of sorts and give you a rough idea of how well your business as a whole is doing. It can also give potential investors more insight into the rough idea of where the business will be and how profitable it will be, leading to more confidence in you and your company, giving you a better leg up.
The Internet and You
The Internet is great, it connects us with not just millions but billions of people. For businesses this is a great way of accessing many potential customers in an instant, so maintaining a presence online is key to ensuring your success. There are a couple of ways to do this; social media and a core site for your business. Social media is the best place to try and maximise your visibility, having a Facebook page alone gives you potential access to the over 1 billion people who have active accounts, plus there are also other social media sites to think about like Twitter. Offer incentives for those who follow you, ad introduce web exclusive deals, and have customer support on standby to deal with simple requests or to direct customers to appropriate people within your business. Let’s talk about having your own site on top of all of that as well. This is a good place to display far more in-depth information about your company and what areas you specialise in. Having a site that is high-ranked in Search Engine Results Pages (or SERPS) is also a very effective way of driving more traffic to your site.
Keeping yourself Covered
Now it’s time to talk about Insurance. It isn’t easy to navigate through the marshes of Motor Trade Insurance; it’s difficult to know what you’re looking for and what you may need, and it can also be hard to know the differences between Motor Trade Insurance and Private Car Insurance. There are various types of Motor Trade insurance policies. You have your standard three levels of cover (as with any other motor insurance) but there are multiple layers within that, from Vehicle Sales insurance to Combined Motor Trade Insurance, from Road Risk insurance to Mechanics insurance. The best thing to do would be to find a Motor Trade insurance specialist broker who can help you get the right type and level of cover to ensure your business is sufficiently insured.
Learn anything you can
You aren’t the first person to start a motor trade business (and you won’t be the last) so observe the market, see how your competitors deal with customer needs and demands, how they run day to day, and whether they offer different services on top of their main trade. Look for seminars or conventions where you can network with other people within the motor trade industry so you can learn what knowledge they are willing to impart to you.
Don’t be afraid to Innovate
It cannot be understated how important innovation is. If you paint yourself into a box you’re going to stifle your own growth before it can begin. Listen to market demands, what your customers want and then try to incorporate that within your business, for example, if you are a Vehicle Salesman, keep a Mechanic on the lot. This doesn’t mean have fingers in every pie possible; you know your specialist area, build out gradually as your business expands but remember to never stray too far from your core business model and that it is best to be good at one thing over being a jack-of-all-trades.
Motor Trade is a hard industry to get a break into, like any industry, but the rewards one can reap for doing so make it an illustrious gem to hold a piece of. So, whether you’re starting out or if you’ve hit a quagmire in growth, I hope this article has given you more to chew on and (hopefully) can help you build your business from the ground up.