Many people dream of being self employed and their own man – or woman for that matter – setting up a motor trade business in the UK can be lucrative. As with any idea and service the more you plan for every consequence, the higher the chance you’ll succeed. What is your goal and aim? What are your talents and expertise?
To consider finance momentarily, any bank or facilitator will require you to have a carefully laid out business plan. This assists any future investor or loan company in understanding your business is viable. It also enables you to plan for unforeseen events and acknowledge weaknesses and strengths.
Start with research on your niche motor trade business idea. Consider location and how wide your service coverage will be. This might be a county, a city or focused on a rural area. Compare pricing and services by existing businesses and write down short falls and what makes their company a success.
If you are working part time from home initially, your finance requirements will be discernibly less. You should still consider future growth. Might you need premises to operate from, is the area a good location to set up within? What are the costs involved?
If you require a building as a base, ensure it’s adequate for public access and prominent. Secure for machinery and tools, a good postcode for motor trade insurance. With secure parking – for insurance discounts and enough room for all vehicles. By now you should have a good idea of costs, services to offer and pricing structure.
How will people hear about your new venture? What will you name your new motor trade business? Steer clear of any trademarked and existing company names. Do you wish to be welcoming with ‘Dave’s Breakdown Recovery Service.’ Or more professional and conjure up an innovative company title for future branding?
The internet is by far the biggest marketing tool at your disposal, securing a domain name that’s .uk or .co.uk is important. This will also feature on all marketing material such as flyers and in trade magazines. Short and memorable is key.
Knowing location, area of operation and services offered. Consider how far in advance you should start advertising. Do a soft launch to judge the amount of business you can cope with and the interest. There’s nothing worse than having demand you can’t meet. There’s plenty of time for expansion, make new customers happy and expand by keeping them on board.
If you need to hire and lease vehicles, purchase stock ensure your business plan is reviewed before approaching lenders. The motor trade industry is worth tens of billions in the UK, the loan market is open. However it is a very competitive market place. Ensure short and long term income expectations are realistic. Beginning a business with a few clients on the books is always a good thing.
There are legal implications in this industry. With high end machinery, heavy goods vehicles abound, your insurance costs might be high to begin with. Research thoroughly laws surrounding legitimate activity, indemnity cover and tax issues. Motor trade insurance is a legal obligation but you can compare costs and get tips and advice from Evans and Lewis for free.
In fact, the trade insurance you buy will probably save you thousands with the correct company. For more information and advice visit www.motor-trade-insurances.co.uk . Ensuring you have the right Goods in Transit class, legal support and the ability to update when it comes to no claims bonuses and new drivers. One last helpful tip, don’t forget you’re entitled to use Trade plates across multiple vehicles which will drive down expenditure further.