Make money in the automotive business: from scratch and with minimal investment

About the automotive business in Russia

Due to the fact that cars are in increasing demand every year, the decision to do business in this industry is the right decision. Today, the automotive sector is recognized as one of the most stable and includes a large number of business areas.

Every year there is an increase in the number of offers, often quite exotic, which are designed to increase the level of consumer comfort. And provided you have a competent approach to such activities, you will quickly recoup your investment.

For many residents of our country, a car has long been no longer a luxury item. It has become an integral part of life, and therefore car enthusiasts are willing to spend quite a significant amount of money on various services, often denying themselves basic benefits. Therefore, if you are looking for a source of stable income and are knowledgeable about cars, then this business is simply created for you.

Car snow removal services

A great way to make money during the winter season is to dig out cars that are trapped in snow. The service has become widespread in large cities such as Moscow and St. Petersburg. The tariff for digging out one car is 1000-2000 rubles, an operational call can be estimated at 5000 thousand rubles. Services may include not only clearing the car of snow, but also removing the snow around it, pushing it out of the snow, charging the battery and “lighting the car.” You don’t need any investment - just have a shovel at home. If you plan to do this business seriously, with the purchase of a snow blower, then you can read about opening such a business here.

Choosing a direction of activity and developing a business plan

So, you have decided to build a business in the automotive industry, but you still don’t know where to start. In this case, you should adhere to the following algorithm of actions:

1. Idea. Having considered a lot of options for the automotive business, determine several priority areas for yourself. Consider your knowledge and skills in the chosen industry - don’t go into uncharted territory. For example, if you understand the tire fitting process, then it is better to focus on this service area.
2. Creating a business plan. The success of your entrepreneurial activity largely depends on this stage. This document should reflect all aspects of your endeavor. It contains a market analysis, a review of possible risks and a search for ways to solve them, steps towards achieving the final goal, plans, an assessment of business profitability, etc. In addition, if you plan to attract investor money to your activities, then without a well-drafted business plan will not pay attention to any serious market player.
3. Implementation of an idea. At this stage, you must register an individual entrepreneur or LLC, find suppliers and take care of the advertising promotion of your auto business.

Review of key areas of activity

At the moment, the auto business includes dozens of areas in the field of sales and services. By choosing one of them, with the proper approach, you can get a stable profit with the possibility of subsequent expansion of activities.

Auto repair shop

A car maintenance and repair business is a great solution. Many people today use a car as a means of transportation. With daily use, even the most reliable and expensive car will eventually fail. To prevent this from happening, most car enthusiasts become regular customers of service centers, which regularly diagnose their cars, preventing serious breakdowns.

Periodic trips to service stations are common practice today, and therefore, with the proper level of service and reasonable prices, you will definitely not be left without work. In this case, in addition to professional advertising, word of mouth works well, and therefore the number of clients of good service stations is growing exponentially.

To properly build such an auto business, you should focus on providing the following types of services:

1. Pre-sale car service.
2. Repair of damaged cars.
3. Carrying out major and minor repairs.
4. Car maintenance to prevent serious breakdowns.

It should be understood that such a business will require considerable investment to purchase all the necessary equipment. For example, opening a small auto repair shop will require you to invest at least 600,000 rubles in starting investments.

This area of ​​the auto business has a fairly good return on investment. It averages one and a half to two years.

Disassembly for parts

When a car breaks down, not every owner is in a hurry to fork out for a new part. It will be much cheaper to purchase spare parts from disassembled cars. If we are talking about a rare model, then auto disassembly may be the only opportunity to replace a failed unit.

At the moment, the auto business, based on the resale of spare parts from disassembled cars, is at the peak of its popularity. It has a very fast payback of about a year. At the same time, at the start you will have to spend no more than 450,000 rubles. Let's look at what this money will be spent on:

• rent and arrangement of the territory will cost you 150,000 rubles;
• registration of individual entrepreneur (800 rubles) or LLC (4000 rubles);
• purchase of spare parts and damaged cars – 250,000;
• advertising – 15,000;
• employee salary – 45,000;
• other expenses – up to 10,000.

To assess the prospects of this auto business, you can turn to the experience of foreign colleagues. For example, today there are several supermarkets open in Holland where customers can remove the necessary parts from the cars on display themselves. In our country, car dismantling has not yet reached such proportions, but the demand for used spare parts is very high.

Living in an economic crisis, many Russians are unable to buy new parts to repair their cars. Therefore, purchasing spare parts removed from damaged cars is the best option.

The profitability of this business in the Russian Federation is also explained by the large percentage of old cars owned by citizens. Often we are talking about cars whose age has exceeded 10, and sometimes 20 years. Since not every concern continues to produce spare parts for its old models, auto disassembly can be a real salvation for the owner of such a car.

To implement this auto business idea, you will have to rent a large plot of land, so it is best to give preference to a suburban area. For the success of such an activity, you must meet two important conditions:

1. There should be a highway nearby so that clients can easily get to you in their own cars.
2. Public transport stops will also be useful.

The territory is divided into the following zones:

1. Administration space.
2. Warehouse for storing spare parts.
3. A room designed to receive visitors.

Car resale

In this case, the profitability of the auto business will be even higher, because with the right approach, the payback is only 5-6 months. In addition, to buy and sell cars today it is not at all necessary to open your own car dealership. You can rent a parking space and conduct all business via the Internet.

The main idea of ​​this business is this: you need to find a really good car for sale for relatively little money. After purchasing it (if necessary), it is brought into perfect condition, after which you sell the car at a higher price. Negotiation experience is very important in such a business.

To start such an activity, an entrepreneur will need at least 300,000 rubles. The amount of starting capital depends on the cost of the car, the resale of which is planned. If you don’t have that kind of money, you can attract investors or get a loan from a bank.

Make a competent business plan by analyzing the used car market in your region. Determine the approximate payback period for the project and outline the final goals that will need to be achieved.

Initially, purchasing a car for business does not require registration of an individual entrepreneur. You can sell several cars under the guise of an ordinary car enthusiast. However, over time, such a need will arise.

If you have the skills of an auto mechanic, you can expand your business by purchasing broken cars for the purpose of their further repair and restoration. But for this you will need a room equipped accordingly. It must have a pit, a work area and a place for convenient and safe storage of tools. Initially, you can use a garage to conduct business. Over time, you will be able to expand your operations, hire employees, and move to larger premises.

Ideally, a small company engaged in car resale requires the following specialists:

• car mechanic;
• accountant.

The latter can be hired on a part-time basis, which will allow you to significantly reduce costs.

Car wash

Another good car business idea that will help you earn good income. Owners of expensive cars almost never wash them themselves, preferring the appropriate service. Moreover, representatives of the middle class often use the services of car washes, because it is fast, convenient and affordable.

However, high demand also has a downside, which is significant competition. Therefore, before opening a car wash, you should thoroughly study the market in your region. Identify those areas in this business that are practically not found in your locality. This could be a dry or tunnel car wash, or a self-service service. Place your bet on a business area that has less competition.

Another important point for building a profitable business is the right choice of car wash location. It should be located in close proximity to major highways or near crowded places, for example, shopping malls.

Tuning workshop

Not every car enthusiast is satisfied with the appearance and technical parameters of their car. In recent years, it has become fashionable to improve a car by making changes to the body, engine, etc. Tuning allows a person to get a unique car, standing out from the background of similar models. And today such services are in great demand.

If you want to open your own tuning workshop, then you should first of all pay attention to competing organizations. Try to find out what types of services are in greatest demand in your area.

Most modern tuning workshops specialize in the following services:

• applying 3D coatings to glass;
• body painting with polymer composite;
• body tuning;
• installation of powerful stereo systems;
• applying luminous paint to discs;
• installation of internal and external lighting, etc.

Such an auto business requires considerable investment in advertising. You will also have to spend money on equipment. The size of the starting investment is 500-700 thousand rubles. The payback period for a business ranges from 1-1.5 years.

Trade in goods for automobiles

Considering the large number of car enthusiasts in our country, selling auto products is a good business. However, investments in such activities may be minimal. You can choose one of two sales options:

1. Traditional store. Before you start work, you will have to rent a room and arrange it properly. The key to conducting such activities is the correct location of the outlet.
2. Online store. In this case, you don’t even need to rent premises to create a sales area. All you need is a garage or any other room for storing goods.

You should also decide on the type of product that will be sold. At the moment, there are quite a large number of products for cars. These can be additives to reduce fuel consumption, washcloths, air beds for travelers, frame car curtains and other attributes. By choosing high-quality and in-demand products, you can easily find permanent sales channels for your products.

Driving school

Every year more and more cars appear on the roads of the Russian Federation. Having your own car today is not only convenient, but also fashionable. For many, personal transport is an indicator of status, but before getting behind the wheel, a novice driver needs to get a license.

By opening a driving school, you can get a source of good income, but you should also take into account the great competition in this line of business. At the moment, such educational institutions can be found literally on every corner. Therefore, you should approach the matter thoroughly and work out all the aspects of your future business. Choose a location, invest in advertising, try to stand out from the competition.

It should be understood that not every modern driving school has an impeccable reputation among clients. There are many dissatisfied reviews on the Internet regarding rude instructors, unprofessional presentation of material, etc. When creating your own driving school, take into account all the shortcomings of your competitors, and then people will quickly start talking about you.

Minibus taxi

Cars for business in passenger transportation in the minibus format, although they have already experienced the peak of their popularity, still remain in demand in some cities. You can start your own business even without owning your own car. One route can earn from 60 to 150 thousand rubles. per month with a turnover of 100 to 250 thousand rubles.

Selling creative windshield wipers for cars

You can and should always make money from a good sense of humor. A great option for this is selling creative wipers. These can be presidents waving their arms, cats wagging their tails, traffic cops with batons, grandmothers with brooms and other funny images. To begin with, it is quite possible to start selling from groups on social networks.

Car painting

This business option involves opening a specialized car painting salon, including pre-cleaning, priming, sanding, selection and application of paint, varnish and polishing of the painted surface. To open a full-fledged service, you will need about 2 million rubles. It will be able to bring in more than 150 thousand rubles. per month.

Installation of car alarms

According to the police, the detection rate of thefts in Russia is about 30%. Therefore, owners who do not want to install an alarm on their car are an overwhelming minority. To open an alarm installation service, 530 thousand rubles may be enough. and a staff of 4 people. Such a service will be able to bring in more than 90 thousand rubles per month. net profit.

Women's taxi

Even in the auto business, there was a place for a women's niche - a women's taxi service. Women's taxis are traditionally painted pink, and their drivers and passengers are exclusively representatives of the fairer sex. The disadvantage of this idea is that it is not very profitable - after all, this service is inferior to ordinary taxis in terms of the number of transportations, forcing clients to greatly overpay for insufficient turnover. Women's taxis are especially in demand in regions where there are problems with women's rights.

Autohostel

Car hostels are unusual roadside hotels where visitors can drive directly to their personal car and spend the night in a cozy garage room next to their car. In fact, car hostels are the same hotels with gates instead of doors, which are created so as not to separate car owners from their vehicles.

What to do to start your own auto business

Having decided to conduct business related to cars, you should outline a certain algorithm of actions for yourself and strictly follow it. Let's look at what steps are mandatory when creating such a business from scratch.

Deciding on the direction of activity

There are two main areas of activity in the auto business:

1. Sales. We are talking about the sale of used cars, spare parts, accessories, etc.
2. Services. This includes tire fitting, repairs, tuning, etc.

There should be no attempt to cover several areas at once. Focus on one thing at a time.

Market analysis

Before opening a serious auto business, it is necessary to study the development of the chosen industry in the region. Pay attention to the work of direct competitors, determine the price level, calculate the possible level of income. It would also be useful to find potential business partners.

Drawing up a business plan

All the nuances of future activities are included here, including market analysis. Identify the key milestones you need to overcome on the way to achieving your final goal. Here all expenses and income are calculated, profitability and payback periods are determined. Remember that a properly drawn up business plan can protect you from financial ruin.

Registration of activities

If you are aiming to create a serious auto business, then you should definitely register with the Tax Service. At the moment, there are two most convenient forms of registration:

1. IP. An ideal option for running a small business. The cost of registration is 800 rubles.
2. OOO. This option is chosen by those entrepreneurs who plan to hire employees. In this case, registration will cost you 4,000 rubles.

Most entrepreneurs choose the simplified taxation system as their tax system. The OKVED code is determined depending on the chosen field of activity.

Selecting a room

Most new entrepreneurs have to rent premises to run their business. Typically, landlords charge for the first and last months. Try to find the most advantageous location for your business. Avoid proximity to direct competitors.

Purchase of goods

It is advisable to find product suppliers at the stage of market analysis. This will allow you to start your business as quickly as possible. Try to enter into long-term contracts, working with trusted companies that are responsible for the quality of their products.

Any area of ​​the auto business can bring significant income if approached correctly. Creating a business plan that should take into account all possible risks of your activity will help you avoid mistakes and gain a foothold in the market.