With more and more people having the ability to afford vehicles, auto wreckers is a growing industry. Interestingly, this is one of those businesses that doesn’t require a ton of experience to start.
Every modern nation needs many of these companies. More and more nations have citizens who need automobile transport to live. Globally, this industry should be viable for some time.
Auto Wreckers Business
One advantage of starting an auto wrecking company is you don’t need a ton of land to start. A few acres is all that is required.
Before starting, however, you’ll have to deal with the local government. Typically, there are strict zoning codes limiting the location of this type of company. Perhaps finding an auto wreckers business for sale would be a simpler option for starting.
There may be many additional permits and licenses required for startup as well. Check with the local governing authorities to make sure all of these are in place first. If they are not, you may face high fines and maybe the company will be forced out of operation.
The next step before purchasing or beginning operations is to write up a business plan. Unless you’re lucky enough to have a ton of money to purchase everything in cash, you’ll need financing. Prospective lenders will want to see a workable plan in place before making any loans.
An auto salvage company is typically not too expensive to start. The largest startup cost is the land. Some of the initial equipment needed includes standard office equipment, a tow truck, and basic tools. Other required startup equipment includes a loading truck and forklift.
It’s also important to learn what paperwork may be required when new vehicles are obtained. Check with the local governing authority so your organization is ready.
Now that all logistics are now in place, it’s time to start advertising the company. Be sure to have highly visible business signage. Place ads in the local yellow pages.
Be responsive to customers and always do what was promised. The reputation of the company will grow, and word of mouth will do all future advertising.
When buying an auto wreckers business, be sure to do all due diligence first. You don’t want any unexpected regulatory or paperwork nightmares! If selling an auto wreckers business, do all due diligence as well. The more the company appears to be run well, the higher the price it commands later on.
About the Author
This Wiki was written by Andy White, CEO of Biz Trader .