Business Ideas for Entrepreneurs
Starting a Used & Rebuilt Tires Business
Here's some helpful information that is perfect for those of you who are thinking about starting a used and rebuilt tires business. Read this before you open up shop.
Want information on how to start a used and rebuilt tires business? We walk you through the most important things you need to know.
The Secondary Tire Market
No one wants millions of used tires cluttering landfills, creating an environmental hazard. But for consumers, replacement tires are a major expense. If there is any way to reduce the cost of replacements, most buyers are willing to give it a shot.
That's where used and rebuilt tire businesses enter the picture. Rather than basing their business models on new tire sales, these businesses receive, retread and resell used tires. If the tires are beyond repair, the business can recycle them directly or sell them to dedicated tire recyclers. The environment gets a reprieve and consumers get relieve from the high cost of new tire products.
Retreading & Resale
As you consider the possibility of a used tire startup, it's important to understand the process for safely evaluating, retreading and reselling used tire products. Used tires can be obtained through relationships with tire dealers, customer drop-offs and other avenues. Every tire you receive needs to be analyzed to determine whether the tire wall is still serviceable and safe for use.
The next step is to grind off the tread with a grinder, a specialized piece of equipment that your startup can't live without. Once the tire has been ground down to the base level, adhesives bind a new tread (obtained through tire manufacturers) to the tire. From there, another piece of equipment called a tread sealer finishes the job. Don't even consider taking shortcuts to avoid equipment purchases! Although grinders and sealers are costly, they are necessary to ensure a safe final product.
Marketing Tips
Used tire sales skyrocketed during the economic downturn. According to some estimates, the industry experienced as much as a 75% annual increase, primarily from consumers who understood the benefits of buying rebuilt tires.
Successful marketing strategies focus on value and education. Many consumers don't realize that used tires are just as safe and effective as new ones, so it's your job to educate them about processes and products. If you choose to sell to tire retailers rather than directly to consumers, it may be necessary to educate retail business owners about the financial and practical benefits of retreads.
Elements of a Used & Retreaded Tires Company Business Plan
Your used and rebuilt tires company's business plan should be tailored to your business's unique traits and goals. However, the most effective business plans do address specific sound business plan elements:
- Mission Statement � Your description of your used and rebuilt tires business's reason for existing.
- Goals & Objectives � Goals are broad targets; objectives are the tactics you'll use to reach your goals.
- Financial, Marketing & Action Plans � Each of these plans covers a specific aspect of your used and rebuilt tires business's strategy and direction.
Evaluate the Competition
Before you open a used and rebuilt tires business in your town, it's worthwhile to find out how strong the competition is. Try our link below to get a list of local competitors in your area. Just enter your city, state and zip code to get a list of used and retreaded tires businesses in your community.
Gain a knowledge of how existing firms have positioned themselves in the marketplace, and then design your business in a way that sets you apart from the others.
Getting Advice from Experienced Entrepreneurs
If you are interested in starting a used and rebuilt tires business, it's a wise move to learn from folks who are already in business. If you think owners of nearby used and retreaded tires businesses will give you advice, think again. What's in it for them?
But, a person who owns a used and rebuilt tires business in another town will be much more likely to talk with you, as long as they don't view you as a competitive threat. In that case, the business owner may be more than happy to discuss the industry with you. Our estimate is that you may have to contact many business owners to find one who is willing to share his wisdom with you.
Where would you find a used and rebuilt tires business owner outside of your area who is willing to talk?
Simple. Let your fingers do the walking by using the link below.
Three Arguments for Buying a Used & Retreaded Tires Business
For years, street-smart entrepreneurs have known that whenever possible, it's more advantageous to buy an existing used and rebuilt tires business than it is to start one from scratch.
You'll want to conduct a comprehensive due diligence process, but here are three arguments why you should think about buying instead of a startup.
- Initial Revenue. If you're careful in your research, the used and rebuilt tires business you buy will have a track record of profitability � a big plus since it may take months or even years for a startup to turn a profit.
- Established Operations & Processes. A good used and rebuilt tires business should already function like a well-oiled machine.
- Capital Acquisition. In general, it's easier to finance an existing business than it is to fund a startup. While a startup only exists on paper (initially), established businesses have the benefit of historical earnings statements and tangible assets.
Consider Franchising
The odds of achieving your primary goal of doing well with your venture go up significantly if you become a franchisee and leverage their successful brand and track record.
If you planning on starting a used and rebuilt tires business, you should assess whether purchasing a franchise might be the right move for you.
The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.
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