How to Start an Auto Parts Business in Bangladesh
Start an Auto Parts Business in Bangladesh
This is an excellent way to make money starting auto parts business in Bangladesh. Also, you can start a used auto parts selling the business to prevent older car parts ending up in landfills. Moreover, you can assist people who cannot afford brand-new car parts to keep their cars in working condition to help the environment.
Besides, you need to impress customers with the quality, price, and service at your store to grab a share of the spare parts business. Also, plan to scope out your competition and make several important decisions about business operations as you prepare for opening day. You need to be prepared to lead and capture your part of the market from the simple decisions to major ones.
An Overview of Starting an Auto Parts Business in Bangladesh
One of the essential industries in Bangladesh is an auto parts business. This is because there is an increasing number of vehicles in the country and very important for the vehicle owners. Regardless of its manufacturer at some time every vehicle needs replacement parts.
The spare parts business in Bangladesh is not only highly competitive but lucrative as well. Because there are more used cars than new cars in the country, the industry is booming. For repairs and servicing, millions of Taka is spent on vehicle maintenance. Although you need deep knowledge of automobile parts, the industry is relatively easy to join. Also, accommodating certain vehicles, you have to narrow your choice of parts. Above all, this is a great business idea in Bangladesh starting auto parts business.
Steps to Start an Auto Parts Business in Bangladesh
Funding, sourcing the auto parts and find a good location are the most important and vital requirements involve startup of an auto parts business in Bangladesh. There are a few legal frameworks and permits to establish the business. On the other hand, if you want to get success then you have to monitor your inventory, control cash flow and establish repeat customers. Now, let’s know the steps in short details to start an auto parts business in Bangladesh.
Make an Auto Parts Business Plan
Making a plan for an auto parts business is not only the first step but one of the most important steps. You’ll have to contain all of your business related points in the plan. These include startup funding, sourcing raw materials, marketing, and location.
Also, you must plan to the target demography, staff wages, and future projections. If you want to understand your competitors, services, prices, and marketing strategy, you have to carry out a feasibility study. Moreover, you may need to perform some surveys for different purposes. So, if you want to be successful in your business, you must make a well-balanced business plan.
Location of the Auto Parts Business
You need to abide by zoning formula in many countries and in Bangladesh as well. If it’s based with few competitors, a good location is close to your customers. You must ensure not only the visibility of your store but close to heavy vehicular and pedestrian traffic also. So, you have to plan to handle a huge inventory of parts with a large storage space. It depends entirely on the size and scope of the business what the number of staff you’ll hire. So, there is no alternative choosing a better location for a business of auto spare parts in case of success.
Do Some Paper Work
You can register your company either as a limited liability company or sole proprietorship business. Also, you need to get a trade license and tax identification number along with other local requirements. If you follow zoning requirements, you’ll get all necessary paper works that you need. Also, there may be subject to value-added tax some of your inventory. As the paper works are essential, you can’t start your business without them. But, there is another option that’s you can talk to your lawyer if you’re not familiar with these terms.
Find Supply Sources
It depends on your business plan what the type of spare parts you stock, for example, you may decide to stock only new parts or used spare parts. Also, this is our recommendation that you make stocking both new and used parts. But, offer your clients full disclosure and ensure them to know exactly what they are buying. So, what you need to do is that explain the price differentiation, merits, and demerits of used and new parts.
The best sources of spare parts are that come from the foreign markets, such as China for new and junkyards for used ones. If you go to the spare part manufacturers, they’ll welcome you as new wholesalers and distributors. And purchasing used vehicles and scrapping is another good source for used parts.
Promote the Auto Parts Business
As it’s said that you need an ideal location to attract customers. But, promoting or marketing is another good way to spread that you’re with auto parts business in Bangladesh. You may print some visiting cards and keep them with you wherever you go and distribute them to your potential clients and relative who will provide your clients. Also, you can use banners, festoons, flyers etc.
Apart from these promoting methods, you can use online resources to attract more clients. As it’s the days of the internet, many vehicle owners and mechanics are turning to the internet to find parts. So, start a blog in order to increase your online representation.
Provide Quality Parts
You have to offer quality spare parts to grow the business-differentiate. Although quality parts attract higher premium prices are durable, they’re a better alternative to low-quality cheap parts. This is because it’s difficult to find and attract premium prices. Also, it constantly needs replacement of the high volume parts, for example, windscreen wipers, side mirrors, bulbs, spark plugs, antifreeze, and filters.
Apart from the above steps relating to starting an auto parts business, you can do some more steps are below:
- Making the jobs easy, use franchising
- Offer Both Wholesale/Retail
- Build an Inventory
- Offer Delivery Service
- Obtain insurance