I Need a Tire Shop

How to Open a Tire Shop
May 4, 2016 – 04:17 am
Comment from John D. of

Opening and running a tire shop usually requires less work than maintaining a full service repair shop, but it may still offer the same level of profitibility. If your new business goal is to open a tire shop of your own, start the planning process as soon as possible, beginning with the ideal location for your shop.

Step 1

Evaluate your competition in the city or town where you plan to operate your tire shop. If the area already has a well-known, established, full-service tire shop you'll likely have a much harder time gaining market share. Look for a bustling shopping district in a suburban or rural area where cars are required by many for transportation and with little to no existing tire repair shops.

Step 2

Pick a location on a road or highway that is accessible by trucks. It is important to remember that some roads are closed to tow trucks, which often bring business to tire shops.

Related Reading: How to Open a Coffee Shop in Illinois

Step 3

Decide if you want to sell new tires, used ones or both. If you decide on selling new tires, establish a relationship with a tire distributor or wholesaler. If you choose to sell used tires, advertise that you accept tire donations to build up your inventory.

Step 4

Apply for permits and licences required by your county or state. For instance, you need a permit when you dispose of old tires taken from a customer's car.

Step 5

Apply for business insurance to protect the shop against claims related to service or incidents involving customers. Post notices, warnings and rules for both customers and employees to observe. Submit to regular inspections by the locality that issues your operating license.

Step 6

Set up equipment needed to store and replace tires. That includes wheel balancers, wheel handlers, spreaders, tire changes and also tire crushing equipment.

Step 7

Hire hourly repair employees to work at the shop. With hourly workers you can get an idea for the influx of cars into your new tire shop and adjust or add schedules as needed.

Step 8

Set a competitive markup percentage for the tires you sell, as well as a reasonable hourly labor rate for swapping tires on customer cars. Base your prices in part on the prices of any nearby competitors. Offer grand opening specials for tires and services to draw in new customers.

Source: smallbusiness.chron.com
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