Another Different Way to Make Money in the Parts Business
Something that I have seen on a few occasions is people opening a store with the intent to sell the store once they have turned it into a profitable business. Essentially they are banking on their superior business skills to allow them to create a thriving business where many others will fail. Of course, some of the success of these ventures came from the real estate boom over the last several years. However, they study the area where they are going to build their business and do their homework in order to find a good location at an excellent price. An important part of the plan is to have sufficient money to buy the land and building for their needs. That fixes a major part of the cost to do business even before they open their front door. Next they work on containing the daily costs to do business. Their buying decisions for the products that they sell are based on quality and price not on convenience. They may buy from as many as a hundred or more suppliers. They work hard to keep their expenses at a minimum. They work with a minimum number of employees, they have a minimum number of phone lines and cell phones, and they keep their Store POS System cost to a minimum. You name it and they spend the minimum amount that they need. They are usually knowledgeable in the business that they plan to open. In these days most auto parts stores are struggling to survive. However, I have seen a person with no experience in the auto parts business open an auto parts store and turn it into a money making business. He paid good wages to hire people with experience in the parts business to teach him the business. Most important, he knew how to run a business. I hate to say it but it seems clear that in the parts business, knowledge of the parts business is not nearly as important as management skills.Labels: containing costs, Parts store, Real estate, Store POS System
posted by MIB @ 10:21 AM
