Michael W. Ryan of Billings, MT is an auto industry professional, following in the footsteps of his father. After working as a sales manager, Mike Ryan purchased a car rental business that has grown to over 1100 vehicles at six different locations. In the following article, Michael W. Ryan discusses the process of starting, growing, and managing an auto dealership.
When the dream of owning a business begins to take root, it will often die on the vine. This is because of the overwhelming amount of information and planning that must go into starting an establishment.
According to auto industry experts, owning and managing a car dealership must begin with research into the ideal type of establishment. Once a business plan is formulated, startup funding must be secured. Once the business is open, operating it successfully hinges on one’s understanding of the local market and ability to facilitate the meeting of clear sales goals.
Below, Mike Ryan of Billings, MT delves into the exhilarating journey of establishing and managing an auto dealership. Through his insightful exploration, readers will discover that a well-crafted business plan is the ultimate key to unlocking a thriving and seamlessly operated sales business.
Mike Ryan Examines Launching the Plan
The most important part of owning a successful car dealership is starting off on the right foot. By being on the right path from the beginning, the potential business owner is already laying the foundation for success once the business itself is up and running.
But what are some of the first steps to take on the road to business ownership when it comes to starting an auto dealership?
Create An Individual Dealership
Step one is setting the business itself apart by deciding the type, name, and of course, the all-important business plan. There are several types of dealerships that an entrepreneur can choose from when embarking on this exciting business venture.
For example, one can be part of an entire franchise for above average pre-taxed income or the added benefit of a servicing department, which can drive profits substantially. On the other hand, an individual or independent car dealership offers unrivaled freedom, autonomy, and a much wider range of vehicles that the dealership is permitted to sell.
Mike Ryan of Billings, MT explains that once this decision is made, a name can be chosen. The name should be ageless; something that can inspire loyalty and remembrance in customers. It is important not to forget details like making sure the name is not trademarked, and that the name itself is simple for easy marketing.
Develop a Business Plan
Michael Ryan of Billings says that forming a business plan is the next step, and the most important one yet. It has the added benefit of acting as a sort of checklist or prototype for the business itself, all on paper before the business gets off the ground.
A business plan typically includes the following:
- Company Overview – This portion is a complete history of the dealership, the type that is being operated, and answers various frequently asked questions about the cars sold.
- Executive Summary – This portion is a fast summary of the entire business plan itself for investors, managers, or any other interested parties.
- Customer and Industry Analyses – Not only should the market and target demographics of customers be considered, but the actual industry of car dealerships in the local area should be analyzed in this section too. Effective trends should be outlined as well.
- Competition Analysis – Michael Ryan of Billings explains that in addition to the customers that the dealership will be servicing, the competition nearby should be carefully analyzed in this portion of the business plan. Strategies for outpacing these specific competitors should be included.
- Marketing Strategy – The plan for marketing should include the location of the business, the prices of each service and product, the product itself, and the promotional plans for bringing customers to the dealership.
Comply Legally
Michael W. Ryan of Billings says that there are many legal obligations that a new car dealership must fulfill. For example, the structure of the dealership, be it a partnership, a sole proprietor, or even an LLC, must be nailed down.
Additionally, the funding for the company must be secured. More often than not, after outlining their business plan, an auto dealership owner ends up not having all the funds necessary to kickstart their business. Be sure to raise enough funding, whether it be through credit card finances, crowdfunding, or even bank loans.
Michael W. Ryan of Billings notes that after registering the dealership with the Internal Revenue Service, all that’s left to do be done is securing the location and vehicles to be sold.
In Conclusion
With a meticulously crafted business plan, scrupulous attention to legal requirements, and the drive to excel, the road to launching and effectively managing an auto dealership can transcend any potential bumps. Embrace the prospect of a remarkably smooth and rewarding path to triumph, where success awaits those with passion and determination. Remember, with the right roadmap, the dream of owning an auto dealership can become a reality.
