The process of starting a new vehicle dealership in a challenging economic situation brought on by the covid-19 pandemic is much more complex than most would think. The reason behind this is many potential customers lost their income or a part thereof, and people will first need to recover before the regular economic activity takes place. But, during these difficult times, a new trend came about; consumers started shopping online and became more comfortable with the idea of buying something without seeing it first. This meant the Ecommerce industry exploded, and the online market value grew to unseen highs. Innovative establishments quickly noticed this and created online platforms in a flash; many of these platforms remain profitable today. Creating the perfect combination between a local and online business is key to the success of modern start-ups.
1. Vehicle Lot
It would be smart to find the most affordable lot you can see; the idea behind your start-up should be to keep expenses as low as possible. You should also try to see if you can find a heavy traffic area for the physical location for your dealership so that people will be able to find your business and know you exist!
Most of your start-up capital should go towards purchasing stock in the form of vehicles. By keeping overheads low from the get-go, you have a much better chance at success. Most business failures are due to insufficient funds, and if such expenses are low, you’ll have much longer to start selling.
2. Online Presence
The online presence is most important; by creating a stylish, modern, and inviting website, you give yourself the chance of increasing web traffic. Make use of social media channels to build a follow-up and market your products. Nowadays, digital marketing is much more effective than a giant billboard next to the freeway, well, for small businesses. You can market using Google ads as well; this will target specific searches on Google and place your ad to increase website traffic.
3. After Sales Support Team
When you start making sales, you must offer customers after-sales service to optimize their customer experience and ensure they bring in references. Whether the client was at your dealership or purchased online, they should remain equally crucial for your business. You can also offer ads on services like vehicle shipping by utilizing Ship a Car Direct. You should submit a service so good that all your customers feel compelled to leave a great review and refer you to their family and friends.
Your accounting will have a considerable influence on the sustainability of your business; your money will be tied up in stock most of the time. By knowing your targets, you can focus on the right things and ensure you remain profitable. Your accounting system will be able to offer stock control and financial worth in both sales and stock. By maintaining a proper accounting function, you become much more aware of what’s going on within your business and whether you need to start taking action.
There are various other factors to consider when opening a new dealership from the ground up. But good business practices, marketing, service, and customer satisfaction will make the difference between profitable or not.