How to Set Up a Motor Trade Business

Having your own business and being your own boss seems to be everyone’s dream. You can work your own hours and basically do what you like (so long as your business is being run successful). However, it’s not easy being your own boss and running your own business is a lot harder than most people think.

However, that being said, if you have a passion for cars, then the motor trade offers a more realistic business idea. It’s also perfect for people who are interested in getting a secondary source of income. So, if you are interested in becoming self-employed and want to earn more money, then getting into the motor trade business might be the perfect thing for you. Just keep on reading to find out how you can get started. 

car engine

Buy Your First Car

The first thing that you will need to do to get your foot in the door of the motor trade business, is to get your first car. Now, you will have seen loads of cars advertised online. However, you need to actually know a thing or two before you purchase a car. You need to make sure that you have an understanding of mechanics and an idea of the vehicle’s value. 

This can take a lot of time, particularly if you have a limited amount of experience inside the motor trading industry. The best thing you can do before buying your first car, is do as much research as you can, and then do some more research on top of that. You want to make sure that you have a solid knowledge and understanding of what car will sell well and which car will get you the most profit first. 

Get the Right Insurance

When you have a solid knowledge of the car market, then you need to make sure that you have the right insurance. It’s not just a necessity, it’s a legal requirement. If you don’t get the right insurance, then being a motor trader can be difficult. There are loads of different kinds of insurance covers, so just make sure that you get the right one for you. You can get insurance that covers building and content insurance.

However, you can also get public liability and other risk factor insurances that can be hugely beneficial if something does happen and it’s not your fault. To help prove that something wasn’t your fault (say if a customer was injured on your premises), then you should make sure that you note everything down as soon as you can. You need to also keep all forms of documentations safe as well (things like sales receipts, logbooks, parts purchased to name a few). This will help you out in case something happens. 

Stick to a Business Plan

If you are planning on starting up your own business, then you need to make sure that you create a business plan and that you actually stick to it. If you don’t stick to your business plan, then your business might not succeed. Being organised and having a plan of action is paramount to the success of any business. You might think that a simple day-to-day task will be easy to sort out, however, then can end up taking up a lot of time if left and forgotten about.Make sure you just keep on track of things and note down everything you can (in an organised way). Don’t work in clutter, and don’t throw away anything unless you are certain you don’t need it. If you can stick to a business plan, then you’ll be all sorted. Ultimately though, just make sure to sort out your insurance and then start buying cars. The sooner the business is operational the sooner the revenue will start coming in. If you are still trying to think about what business start-up you could do (and maybe cars aren’t really for you), then check out this article here about the best business start-up ideas for 2020 here.

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.

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