96sti

Hi I am looking to start up my own new and part worn tyre company in Kent I am aware of all the laws regarding in trading in part worn tyres. I work in a garage so I do have knowledge on the physical side of the business. It's just the business side of things that is a bit scary. Any tips and advice for a newbie. Thanks

stilover

Tip 1) Get an accountant.


I started my own limited company 2 years ago (this December 1st) and appointing an accountant was my best move.


Tip 2) Get some decent premises, and make it welcoming to women and children. No heating, and oil and muck everywhere is not appealing


Tip 3) Pay to get a professional website done. Perception counts for a lot. A professional looking website will gain business. One that looks like it was completed on a Sunday afternoon in your bedroom will not do in todays market.

My professional website has gained me business, and has paid for itself many many times over.


I joined a government backed start and grow programme. They point you in the right direction for all the above I mention, plus give encouragement when you start to wobble if you're doing the right thing. It's free, and again, it benefitted my enormously.

njkmrs

You wanna buy 2 x used Continentals less than 1000 miles on them. £100..
See other tyre thread.
No only messing fella.
Good luck with your venture.

njkmrs

Sounds like real good advice from someone whos been there.

96sti

Thank you that's some good honest advice I was a bit worried about the reply I would get but that's great

96sti

Other than a website what would attract obviously there are a lot of competitors out there so I understand I have to be different and appealing. So throw some ideas at me.

Again Thank you

96sti

Also can I ask what your business is and how is it going for you And what was the government program called

stilover

I'm a Cladding designer, and started my own design business. It's going very well for me. 19 years doing this job, but for someone else (part of a cladding company), so when I was made redundant, I started my own business. I'm just a one man band, and work from home, so overheads are low. Turnover / income is over double what I was making before.


The benefit to me, is there is a shortage of people who do my job, so I'm constantly busy, and have to turn work down all the time. The only thing I'd say about your potential business, is tyre fitting outfits have popped up everywhere these days. Loads of competition for you. So as said above, you need to be different.


Why not be mobile? Fit tyres at peoples homes? Less overheads, no business rates, no employees etc.


But if wanting a stationary business, then look at the competition and see what you could do better then them. Most women will go to the large outfits as they're perceived to be friendlier, safer, and cleaner than the back street tyre dealer. Get 1 or 2 PS4's or X-box's in, so the kids are amused while sitting around doing their parents head in. Coffee machine. Toys etc.


Basically make your business woman and child friendly.


Programme I joined was called `Start & Grow`, and I found out about it while looking for grants. Nothing to pay, and if you qualify, you get up to £70k worth of help and courses.


The biggest thing though, it the amount of work you need to put in. I was working 5 days a week, 48 weeks a year. Now? Mostly 6/7 day weeks, with one or two weeks off if I'm lucky. Put the work and effort in, and the rewards will be there. Want an easy life, go get job at Kwik-fit.


Edit.
Saturday night, 6:20 pm, still working !!!

96sti

Thank you some good advice take on board much appreciated

john banks

I haven't formed my limited company yet, but as I have some products nearly ready to test feel I need to for the liability point of view as insurance for ECU work is difficult to come by when they ask if people or property could be harmed and you are selling in the USA. Previously worked as sole trader direct to customers and on consultancy basis, and in a partnership (not limited). Always had accountant previously, but did my own tax return last year and no longer have accountant. Trying to keep things lean but not be penny wise.

lozgti1

Well, I've just bought from black circles, pick your tyres then you get referrals to a choice of garage to get them and have them fitted. Don't know how tyre sellers get on to black circles list of approved people but a lot of people do use them now (I think!)

Unless you've already checked this out ?

96sti

Right I have been in contact with an accountant and he would like to see a business plan. But like I said in my previous post that I have never done anything like this before and have only ever done the physical part obviously I am looking for advice as i don't want to submit a plan and look like an absolute plonker thanks

BlkKnight

To look credible, you'll need to produce two documents

/edit sorry read as bank manager - your accountant will Help you produce these. Bit odd that he is asking you for them? Find a diffident accountant who understands your needs!

Detailed Profit and Loss for year one

Cash flow forecast

Of the two the cash flow is probably most important, and needs to have most thought put into it (most of the data will feed into the P&L) anyway, and the sales from P&L feed into CFF.

If you've not done this before, spending 1/2 a day with a competent person should be able to knock them out without too much hassle.

If you want, I can send you a blank one of the ones we use at work to give you a guide

stilover

Again, this is why you seriously need to start looking at a government Start & Grow programme. It's things like this that they can really help with. Plus, once you start to take staff on, you open yourself up to loads more headaches. Paying wages, holiday entitlement, pension contributions etc. They can talk you through it all, and give classes on what you need to do, and how to protect yourself as an employer.


Some points.
1) The main points of your business plan will be (as stated above) profit and loss. So firstly you need to find out how much your business is going to cost to run day to day. Business rent/rates, wages, utilities etc. Then you need to show some projected income. How many customers do you expect a day? Profit from each tyre? So you will very quickly know how many tyres you need to sell every day just to break even. Don't forget all your liability insurances need to be included, as well as things like stationary.


2) Accountant. Get a Chartered accountant. They may cost a little more, but they are registered, and have taken all the exams etc. Anyone can call themselves an accountant and give financial advise. Doesn't mean they know what they are doing.

BlkKnight

Rather than PM, I've attached as others might find useful.

PT82

Ive never started my own business but the local tyre place has a few vans to do emergency call outs etc. They also do a lot of farm work and go to local hauliers. Every Monday they go to the local sheep market and are busy as hell all day!

BlkKnight

96sti - you here?

jaygsi

iTrader: (46)

Another way is just to get a cheap unit and cheap prices.

Word of mouth travels fast, guy setup near me, and started off really cheap, best in my area for prices, as his business grew his prices slowly went up.

But still cheaper than every where else. He finally sold it and moved on, a chain bought it, upped the prices and as other tyre places were in better locations, they priced themselves out and closed.

robby

Black circles is more for garages who do brake replacements, etc as their scheme is over priced.
To join their scheme you have to pay them around £160 per month to be on their approved fitters list and they pay the garage £10 - £14 (depending on size) per tyre for fitting - out of that you supply the valve, weights and disposal of old tyre.
Garages hope while the wheels are of for tyre fitting they can also sell new brake pads/ discs, etc so make up their money that way

robby

How about getting in touch with a local wheel refurb company, customer can drop his wheels with you, you remove tyres and send to be refurbed, get wheels back and fit new/ part worn tyres?
I know the turnaround wont be in the day but some refurb places wont remove/ refit tyres

Some garages now deal with alloy gators who supply a full kit (several sets of gators, tools, spare clips, etc) to garages who then fit them to cars for around £100 a set - you pay a lot less

Slime or similar tyre sealant - buy in bulk and offer it cheap, some drivers want this as most cars have the temp fix it gunk in the boot which has to be replaced when used once, the bulk stuff applied to all wheels works out cheaper

96sti

Yes I'm here sorry for delayed response and I have taken a good look at you file attachments and have taken all your advice on board and have finally finished the buisness plan and have a meeting with the accountant on tuesday. The good thing is I have friends in multiple tyre company's that have given me there prices and profit margins and an pleased to say I can undercut them by quite a considerable amount