How to Start Automobile Spare Parts Business

The Nigerian scene is getting better appreciative of a lot of automobile vehicles and the country is now one of the foremost in the world when it comes to use and importation of exotic brands of vehicles. These, coupled with the vehicles in the middle and low price range make sure that our roads are usually very populated at every point in time. 

Now, while you may not have the capital to start up your own car dealership and engage in the importation of these vehicles or for one reason or the other, do not feel comfortable with the hassles of a car dealership, the automobile industry provides you with another clear cut chance of making your money and breaking even while investing in them, and this is in auto spare parts.

Now, we know that there are no major car manufacturing brands that have opened shop in this country and the few that have shown interest have just opened up assemblies so it would be hard to source the spare parts locally. 

That would work to your advantage as you would be forced to get from manufacturers directly, a move that would ensure that you get the products at the cheapest prices available and sell at the prevailing market price to make your own maximum profits. To do this, you would need to have picked up a few skills here and there in products’ importation which finally makes up the totally of this investment opportunity – the auto spare parts importation business.

Like you know us to always do, let us try to give you a quick rundown of ways this business is profitable so that you can be better convinced to want to throw your money in there.

 First, the non-availability of major car manufacturers in the country makes it impossible to source for the spare parts locally and the only way is to bring them in from abroad where their makers are. To this end, there is a big enough market for you to consider.

Also, you would not be serving only the middle class and low class citizens where you can be guaranteed only minimal profits but high class citizens would also be at the mercy of your services. A lot of high end vehicles do not come with spares and sourcing for these are usually a tedious process for the mechanics and car owners themselves. You having just the right connections in the right places, you would have access to these parts and then make maximum profits from any price you set on your wares which they would be more than willing to pay.

Again, you might ask, why importation? True, you could easily source your auto spare parts from a wholesaler in the country and resell at rates that would favour you also but note this – you won’t be making half as much as you should. Buying from a wholesaler would entitle you to making profits that cannot go more than 100% but importing yourself, you would be amazed to see that you would make even up to 300% and higher profits in some quarters. Now, I believe I have your attention. Let’s go into the auto spare parts importation business now and look at how we can make it work.

        1. Get that business plan
This is undoubtedly the first step and every other thing is expected to follow. Sit down and begin to put pen to paper, analysing your business, stating your goals, write down your vision and mission, set your operating hours and mode of operation, include every other business policy needed, include your starting costs and capital and every other thing that pertains to the business. You should also include the market that you have in mind to cater for and those car manufacturers that you want to associate with. You should probably do some research to know the cars that are most common in the county and those that are less common to eliminate risk of buying something that you would end up not having a market for. After that, you are ready for the next step which is considering your…

 For already written business plan contact us and if you want a good business template to help you write your own business plan still contact us.

        2.  Capital
Importation of spare parts is only as capital intensive as you make it out to be. You can start on any scale imaginable be it small, medium or large. The business requires very little start-up capital should you wish to start small and by the time you are looking to increase, you could then start to pump more money into your business.

         3.  Labour
Labour here refers to two kinds -  the direct and the indirect.  The direct labour are those that you would get to work solely for you maybe as office clerks or in other such related portfolios. The indirect labour does not work strictly for you but make your business smoother. This includes the haulers to provide you with haulage (in case you do not have the means yourself), the freight officer at the ports, the lading officer and the rest. They do not work directly for you but they would have to be compensated for their work.


        4.  Making contact
You have to make contact with your desired car manufacturers and inform them of your desire to import and sell their spare parts. This is advisable over trying to get another wholesaler abroad because not only does the manufacturer give you the parts at the standard dealer price, there is also less risk of fraud than you would be involved in with a wholesaler.

         5.  Licencing
To prevent illegal trade on seas and other import routes, governments have placed certain rules and regulations on importation and requires that your business have some kind of licence before being deemed legit. It would be in your own best interest and a very ethical thing to do to get this license(s) before you start out at all.

        6.   Packaging and Advertising
You sell spare parts now and you would have to get your business known. Print fliers and handbills and hand them out to car owners, get in touch with a lot of mechanics that you know and even those you don’t and get them aware of your service and the quality of your products. If you have the advantage of social media, use it to better boost your business and increase your follow base. In no time, you would have had a steady demand and supply rate to keep you and your pocket happy.

Auto parts investment is a very big venture that only few go into. Many think that it is a menial business but do not let this faze you. This is a money bag waiting to be opened by you. Invest today and invest wisely.

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Ikoi Abode Ikenna is a prospective Pharmacist but born an entrepreneur with the heart and passion for entrepreneurship and business. He has strong believe in Financial independence, since wealth is a choice like wise poverty, he has decided to make the best of every opportunity and here he preaches the same.