Here in the UK, the motor trade industry turns over a whopping £64.1billion a year and creates more than 770,000 jobs. This is said in a recent report put out by Society of Motor Manufacturers and Traders. Chances are good that setting up a successful motor trade business can be a bit daunting at times. This industry is no doubt highly competitive. If you take the time to do your research and make sure you fully understand the market, there is no doubt whatsoever that you will be able to set up a highly lucrative business.
Many folks will start off as a part time motor trader. This is a great way to get a taste of the industry without having to dedicate all of your time and money into the business in the very beginning. When you work as a motor trader part time it gives you the chance to gain an income from elsewhere should you need a little extra financial help as you fund your new business. It’s important to remember that just because this is part time, it doesn’t mean there won’t be a few hurdles along the way. With the right advice and correct level of traders insurance there is absolutely no reason why you can’t be a successful motor trader.
What Exactly Is Your Motor Trade Business?
Before you start doing anything else you are going to need to decide what type of business you are actually going to have. There are a number of options; anything from sales, to repairs, to maintenance. You also could potentially combine several different avenues, for example fixing up cars and reselling them. If you remember to play to your strengths, this will give you the best chances of success.
Organization and finances
Organisation is key when it comes to running a successful motor trading business. It’s of the utmost importance to keep accurate and current documentation. It’s just as important to keep yourself a diary. Day-to-day tasks which at times may seem trivial, can end up making huge demands on valuable time. Planning a weekly or even daily workload via a work management diary will no doubt help you to keep things on an even keel.
To keep track of finances, it’s extremely worthwhile for motor traders to set themselves up with a genuine Business Bank Account. This way, it’s easy to keep track of all incomings and outgoings.
If you are a self-employed motor trader, you need to be aware of your responsibility to HMRC. Completing an annual tax return is a legal requirement, and so is registering for VAT if your yearly turnover exceeds £73,000. Again, this is where keeping accurate records comes in handy. (proof of incomings, outgoings and your net turnover.)
Where Will Your Business Be Located?
After you’ve decided which sector of the motor trade industry you want to go into you’ll have to decide where you wish to operate from. This of course will depend on what exactly your business is. If you are going to be selling cars you are going to need a place that you will be able to store the vehicles. In this case, Auto Vault Storage will be the perfect place to keep your cars in safety
Pick a Name for Your Motor Trade Business
Simply put, if you do not have a name, you do not have a business. Make every effort to give your business a unique and memorable name. Take a look at what the competition are calling themselves and use this as a guide. Be sure that you do an online check to make sure no one else is using your chosen name.
Funding Your Business
As you start any new business it often times can be a costly venture. You’ll need to pay rent, purchase stock, and all sorts of bills and expenses are going to inevitably pop up. If you do not have the proper start-up capital, there’s a good chance that you may need to find an investor or possibly take out a business loan. This is where a well-thought out and detailed business plan will no doubt come in handy. Any bank or potential investor will want to see a thorough and complete business plan before they give you any money.
Tell the World You’re Here
Take the time to make yourself as visible as possible, Set up a website and social media accounts. Learn how to make the most of your business online. Of course, there is no reason why you can’t still use the traditional marketing methods, such as adverts in the local paper and leaflets that you distribute in your target area.
Protect Your Motor Trade Business
It doesn’t matter whether operate on a full or part-time basis, you will need to insure your motor trade business. Motor Trade insurance is a legal requirement. That said, it does also of course help protect you and your assets in the event of anything unfortunate. It very often can be a little difficult to figure out what level of cover you will need for your motor trade business. Take the time to consult a knowledgeable motor trade insurance broker. Doing so will make the whole process a whole lot easier.
Ultimately, the best advice for people wishing to get started in the motor trade is to simply to start trading. With insurance companies making it quite easy to sort out policies easily and quickly, it’s reasonably straightforward to get your new business up and running. The sooner that your business is fully operational, the sooner you will see the revenues start to roll in.
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