3 Things You Need to Know About the Automotive Business
Becoming a franchisee is a very popular way for people to make a living. Franchise ownership allows you to, functionally, be your own boss. And who doesn’t want that? But with a franchised company behind you, you have a lot of help and support. Owning your own completely independent business is a bit like walking a tightrope with no safety net underneath you: impressive? Sure, maybe. But it’s also incredibly risky and, honestly, kind of foolish. But even this is not a perfect analogy because good franchisors will help you to walk the tightrope of business ownership. In this sense, buying a franchise is like both having a safety net and a balancing stick.
Strained similes aside, a lot of people, whether they’ve saved up the money for decades or who already own several businesses, are looking for franchises for sale. If you are, you will no doubt have seen automotive businesses for sale. Is an automotive business for sale a good opportunity? If so, why? Here are three things you should know about the automotive business.
1). Automotive Businesses Have Huge Potential Customer Bases
There are a plethora franchises you could buy in almost any industry you can think of. What, then, makes an automotive business for sale better than any other business? Well, there are several reasons, but ultimately what it boils down to is that automotive businesses are patronized by nearly everybody. Most American families own at least one vehicle. In fact, there were over 300 million vehicles on American roads in 2016. That’s a lot of vehicles.
But as important as the number of vehicles, is the age of all these vehicles. The average age of the American automobile is at an all-time high. Older vehicles need more maintenance, service, and repairs than do newer vehicles. This means that there are more potential customers for automotive businesses for sale than ever before. Very few industries can claim to have as large a pool from which to draw customers as the automotive business.
2). THE AUTOMOTIVE BUSINESS IS GROWING
Growth is key for any industry. One great reason to buy an automotive business for sale is that there is a great degree of growth forecasted for the sector. The automotive business is part of the automotive aftermarket and this market is worth a lot of money. Worldwide, the automotive aftermarket is forecasted to achieve a valuation of over $700 million by 2020 and to surpass the $1 trillion mark by 2022.
3). Brands Matter in the Automotive Business
All this growth won’t do you much good if you buy the wrong automotive business for sale. If the brand into which you buy is damaged, mistrusted, or just unknown, then you won’t have any advantage from buying an automotive business for sale as opposed to starting your own automotive business. And what if the franchisors selling the automotive business don’t care about the success of their franchisees? Or if they don’t know how to help their franchisees? That’s no good either. You need to buy an automotive business that is being sold by the right franchisors with the right brand name.
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