Advise on starting up a business

[XVSolutions]

Hi PH members, I have just recently joined this for help.

I’m 19 years old and always wanted to start my own dealership business and now as i’m earning enough, I can start this dream. I would like some advice on what steps to do next, and some time in the next few months I would like to offer finance on vehicles. I’ve created a facebook page and right now i’m trying to source some cheap but profitable cars. Any advice would be very appreciated.

[ZOLLAR]

XVSolutions said:

Hi PH members, I have just recently joined this for help.

I’m 19 years old and always wanted to start my own dealership business and now as i’m earning enough, I can start this dream. I would like some advice on what steps to do next, and some time in the next few months I would like to offer finance on vehicles. I’ve created a facebook page and right now i’m trying to source some cheap but profitable cars. Any advice would be very appreciated.

1)buy cars
2)sell cars
3)???
4)Profit

[TooMany2cvs]

ZOLLAR said:

1)buy cars
2)sell cars
3)???
4)Profit

3 is "Don't get the dodgy cars you sold returned"

[mgv8]

You need a business plan. To make the plan some banks and local business groups can help you.
In detail, you work out investment costs sales, how to protect your self. How not to break the law (a lot easier than you think).
There is a lot of upfront admin and planing needing now. Then you need to put your life on hold as you work every day to get things going.
All can be done.


https://www.gov.uk/write-business-plan

[GrandAndrew]

mgv8 said:

You need a business plan. To make the plan some banks and local business groups can help you.
In detail, you work out investment costs sales, how to protect your self. How not to break the law (a lot easier than you think).
There is a lot of upfront admin and planing needing now. Then you need to put your life on hold as you work every day to get things going.
All can be done.


https://www.gov.uk/write-business-plan

How refreshing to see a positive and helpful post.

[akirk]

go and work for someone for 3 months doing the same business - then go and do it again - so in one year, you can work for 4 people and you will learn more than any book will teach you...

more businesses go bust because of assumptions / lack of understanding -> cashflow issues etc. than anything else - the experience you get will be invaluable

[kiethton]

If this is your first business, given your age (limiting life experience and inflating business operating costs - who will guarantor your rent, who will give you trade insurance etc.) I would spend 3+ years working in sales across a number of different brands.

You'll see a number of things: what cars are popular/give trouble/attract timewasters, learn how to sell, risk your learning time on somebody elses' cash r and will give you a chance to properly understand the business (e.g. which platforms work for advertising and associated costs) - how cars are sourced, how finance/add-on's are structured and profitability etc.

Just my 2p though, as a small driveway trader you'll be competing with every body, adding little value and working on price alone - not sustainable

[ChilliWhizz]

http://cardealermagazine.co.uk/forum/topic/728-bec...

https://www.reed.co.uk/career-advice/how-to-become...

https://www.honestjohn.co.uk/forum/post/index.htm?...

Good luck!

[hondansx]

I would heartily recommend you learn the steps by working at a dealership first, and work your way up the ladder - then decide if really want to roll the dice on any savings you may have.

To make a living you need to be turning over quite a number of cars; margins are tighter than ever. You have no idea if you are 'earning enough' until you have a costed out business plan. I looked into it quite bit myself and there are plenty of threads on here:

https://www.pistonheads.com/gassing/topic.asp?t=14...
https://www.pistonheads.com/gassing/topic.asp?t=14...
https://www.pistonheads.com/gassing/topic.asp?h=0&...
https://www.pistonheads.com/gassing/topic.asp?t=10...

[XVSolutions]

hondansx said:

I would heartily recommend you learn the steps by working at a dealership first, and work your way up the ladder - then decide if really want to roll the dice on any savings you may have.

To make a living you need to be turning over quite a number of cars; margins are tighter than ever. You have no idea if you are 'earning enough' until you have a costed out business plan. I looked into it quite bit myself and there are plenty of threads on here:

https://www.pistonheads.com/gassing/topic.asp?t=14...
https://www.pistonheads.com/gassing/topic.asp?t=14...
https://www.pistonheads.com/gassing/topic.asp?h=0&...
https://www.pistonheads.com/gassing/topic.asp?t=10...

At the moment i’m working as an apprentice at a nissan dealership

[lucido grigio]

Schools out ?

[Jaguar steve]

XVSolutions said:

hondansx said:

I would heartily recommend you learn the steps by working at a dealership first, and work your way up the ladder - then decide if really want to roll the dice on any savings you may have.

To make a living you need to be turning over quite a number of cars; margins are tighter than ever. You have no idea if you are 'earning enough' until you have a costed out business plan. I looked into it quite bit myself and there are plenty of threads on here:

https://www.pistonheads.com/gassing/topic.asp?t=14...
https://www.pistonheads.com/gassing/topic.asp?t=14...
https://www.pistonheads.com/gassing/topic.asp?h=0&...
https://www.pistonheads.com/gassing/topic.asp?t=10...

At the moment i’m working as an apprentice at a nissan dealership

Stick with it and finish your apprenticeship. Get some skills and experience on different marques, then work for a number of dealers, make contacts, go to auctions and talk to every sales person you can find.

I did all of that in the early 1980's when cars were much simpler to repair, MOTs were nowhere as strict and the Trade was far less regulated and soooo much easier for a lone individual to make a living out of than it is now. I earned a reasonable wage as a Spanner Monkey once qualified and made a few quid on weekend driveway sales here and there but it was bloody hard work and after a few years I decided to get out all together.

If you're still serious then when you're ready take serious advice and set your business up properly. I've been been self employed for a long time in the past and know from experience you're entering a unbelievable world of pain if you get lazy with business records and accounts or allow the admin to overwhelm you.

Oh, and don't rely on goodwill or generosity or help from anybody as it's dog eat dog out there. Better to put yourself in a position where people benefit from working with you rather than benefit from working against you - and if you can do that every time all the time you'll be a millionaire one day

[jammy-git]

I would have thought insurance would be prohibitively expensive too given your age and no business history.

It really doesn't take much to start buying and selling cars on the side for profit - though as a trader you'll need to know your warranty obligations and get insurance still.

If you want to set up as a full on dealership, I agree with the others, work your way up to manager level at an existing dealership to learn the ropes whilst still being paid.

[StevieBee]

I started out at 19. Don't let anyone here or else where tell you are too young and too inexperienced. At 19, you have good reason to be inexperienced and have the luxury of being able to screw up without it mattering that much. Very different when you're in your 30s with a mortgage and kids.

Three things to prioritise:

1. As others have said - business plan. It's vital. There are no end of support mechanisms to help on this so seek them out and learn.
2. Get a mentor.
3. Attain an ingrained acceptance that cash is king. Understand how profitable companies can go bust very quickly without cash.

XVSolutions said:

I’ve created a facebook page

Great....but at this stage, it is completely and utterly superfluous. Social marketing should form part of your marketing plan which will emerge from the business plan. That may reveal that social media is not the ideal means to get your company noticed.

Get stuck in and good luck!

[Eddiie]

I agree with a lot of the above, if you are wanting to learn, experience a lot of the aspects that are necessary I would advise going to a more private garage. You don’t have as many staff and you will find you can experience more rolls of the business a lot quicker and easier. I also agree with the above comment of minimum 3 years experience. I thinking moving every 3 months in a private garage is a little bit quick as they will need time to see they can trust you with certain aspects, if ever. You should start with one car selling it privately, not as a trader. You will soon see it’s a lot harder and not as much money as you think. Once you become a “trader” the over heads, finances and legal aspects are a lot more complicated and liability is high.

Keep the dream alive, but don’t dive in just yet.

[Frimley111R]

I was a home trader for a year. It was enjoyable but like any job it the are pros and cons. I'd try this first before committing to big costs or, as said above, go and work for a few. You may find out you hate it.

[VEX]

Depending on how you get on with the team at the Nissan dealership, see if you can do a deal buying some of thier trade ins and cycle those off your driveway.

That should be learning with minimal pain.

[Flat-6]

As someone who has set up and run several businesses from the age of 17, one I sold off (printing), one was killed off by the recession (retail), and I'm starting another this spring, I will say that a few things are important to realise about dealing with real people:

- Expect everyone is a time waster, if they arent then its a nice bonus.
- DO NOT try the "hard sell" you will pi££ off and loose customers within minutes.
- Expect everyone to muck you about after-sale, particularly with cars, if they dont its a bonus.
- DO NOT over-promise, you will regret this VERY quickly.
- DO NOT dress like a slimy mobile phone shop salesman.
- DO NOT be overly-familiar and suck-up-y when you meet customers, they see straight through that.
- Treat everyone as you would want to be treated.
- Don't be afraid to make people painfully low-ball offers on their trade-ins, they clearly cant be bothered to sell it privately first.
- The customer is not always right, and don't be afraid to tell them so (assuming you are 100% right)
- Don't try to sell st cars as good cars, you will get a bad name VERY quickly - yes sell st cars if you have to but don't polish turds.
- Make any warranty VERY clear before completing the sale, try to sell everything as "trade" ie as-seen no warranty.

There's a LOT more, but that's what has dribbled out of my head over lunch.

[jammy-git]

Flat-6 said:

- Make any warranty VERY clear before completing the sale, try to sell everything as "trade" ie as-seen no warranty.

Illegal, no?!

I thought any trade business had to sell a car with a legally binding minimum warranty?

[Frimley111R]

jammy-git said:

Flat-6 said:

- Make any warranty VERY clear before completing the sale, try to sell everything as "trade" ie as-seen no warranty.

Illegal, no?!

I thought any trade business had to sell a car with a legally binding minimum warranty?

Nope, there's absolutely no legal requirement for them to do so.