Starting a new business is exciting indeed. Everything might seem to be running smoothly for the first few months but soon everything can go downhill unless you prepare for the same.
So don’t get swayed away by all that. Challenges may very easily pile up after a few months which, in themselves may result in increased blood pressure and other similar issues.
The key to tackling all these problems is preparation. To be more specific, we should say “preparing for the worst.” You need to have a smart backup plan ready in case everything goes wrong. But how do you frame a plan if you don’t even know the challenges well?
You need to know the negatives first to frame the positives next. Therefore, we, at Derrick Dodge Dealerships Edmonton have come up with a list of 5 of the most common start up challenges faced by new auto-dealers. So let’s take a peek at them without further ado.
No structured business plan
From a general point of view, you should know that a structured business plan is one of the major parts of a recipe to turn a business into a success. Your plan should be the bible of your company. And if you fail to have even a single plan to show, then that itself, is a problem on its own.
Most start up auto dealers seldom have a well-structured plan to show for. They either work on a common goal or have haphazard goals of their own with no proper coordination among them. If you are one who belong to this category, then you need to bring this thing to an end.
You can honestly take the consultations of an outside business consultant or your very own employees (this is more preferable) to know what’s suitable for your business and what’s not. Your plan should structure exactly on basis of such information.
Zero budget plan
We have also seen many start up auto dealers run their businesses without a budget at the initial stages of their business for a number of reasons ranging from “not enough time” to carelessness.
If you are one who belongs to such a category, then you will surely be in a world of hurt in the days to follow.
Most automobile businesses, running without a sound budget plan face extensive overspending issues which may cripple them in the long run. So chalking out a budget is crucial indeed. Make sure you take this point seriously.
Zero business research
Before starting any form of business, you should have a clear focus in your mind whether it’s the right one for you or not. You need to do a thorough research of your business area and the things that you are going to exhibit to the customers in particular before taking your leap of faith.
For e.g.,
You have started a brand new Porsche dealership in your suburban area. You have injected a huge amount of cash into it and your business is looking as fine as a feather for the first few months. But sadly, you failed to do your research well.
You haven’t looked into the buying trends of the people who resides in that suburban area. Do you think it will work well in the long run? What happens if the residents can’t even afford Porsche? You will have to change your focus again because of the shortage of revenues. Problem? It definitely is.
Zero care about brand value
A high brand value is something that can make your business a standout among the crowd. Sadly, most startup auto dealers turn a blind eye to this at the initial stages of their business.
You should strive hard to increase your brand value which, in turn can also increase your customer reach. The key to doing that is to provide your customers with a flawless customer service. Are you up for it? If you are, do you have a sound plan for it? If you don’t, you better get it ready ASAP.
Credit, credit and more credit!
Credit is a killer. So if you don’t pay much attention to it, your business can suffer drastically in the long run.
Always try to pay off your credit as early as possible to reap the benefits in the long run. NEVER take your credits lightly if you yearn to have wealth and success in the long run.
As a startup auto dealer, you should always pay a close attention to all these issues highlighted above and take necessary actions to curb the same.
Remember chalking out problems is not the main challenge. Turning those problems into a part of your solution is. With enough desire and determination, you will definitely be able to achieve the same in no time. We wish you the very best of luck with your business endeavor.
Ryder Brown
