4 Big Misconceptions Of The Automotive Business
Automotive business franchises offer great opportunities to entrepreneurs who want to run their own profitable business. But there are some widely held misconceptions that hurt new automotive business franchisees.
Misconception #1: Automotive Business Franchise Opportunities Are Too Expensive For Ordinary People.
If you want to be your own boss and run your own business, and you don’t care what kind of business you run, there are plenty of low-cost franchise options out there for you. Automotive business franchises are not cheap. You need to set up an auto garage, which is quite big, with all the necessary staff and equipment. How much it will cost to buy and start up your automotive business franchise depends on your location and other factors, but at the high end, it could cost you as much as $500,000. That’s a lot of money and most people don’t have it in their bank account. But how many homeowners pay for their homes in cash? Financial institutions are often quite happy to loan money to automotive business franchises because they know it’s a relatively safe opportunity. To learn more about the costs of automotive business franchises, click here.
Misconception #2: The Automotive Business Is Shrinking Now, So There Are No More Good Opportunities To Be Found.
You might think that the growing number of people living in urban centers coupled with environmental concerns over carbon emissions means that the automotive business is shrinking. It is not. The automotive aftermarket consists of all transactions concerning automobiles after their initial sale and it is huge (about $700 billion USD globally) and it is growing. Population increase and older vehicles drive this growth and automotive business franchises are already prepared for the shift towards electric and hybrid vehicles.
Misconception #3: Automotive Businesses Are All Pretty Much The Same, So It Doesn’t Really Matter Which Franchise Opportunity You Pursue.
Automotive business franchise opportunities are most definitely not all equal. Some are decidedly better opportunities than others. You want to look for opportunities to work with an automotive business that has been around for decades because they will know what they’re doing, and they will have built up good equity in their brand name. Furthermore, look for opportunities that offer training and ongoing support as well as a protected territory, guaranteeing that they won’t allow another automotive franchise to open near you.
Misconception #4: Automotive Business Franchises Generate Huge Revenue, But It’s Hard To Make A Good Profit Because Replacement Parts Are Too Expensive.
Buying an automotive business franchise does give you the opportunity to generate big revenues. But how much of that can you convert into profit? It’s true that the expenses are high for automotive business franchises and the biggest expenditure is replacement parts. But by pursuing the right opportunity by the right franchisor, you can solve this problem. Some automotive business franchisors have preferred vendor programs by which they leverage the buying power of all their franchise locations to get good deals on top quality parts for their franchisees.
Contact Tuffy Tire & Auto Service To Learn More
To learn about the automotive business franchise opportunities that Tuffy Tire & Auto Service can offer you, please get in touch with us.Back