Any thought on starting a retail business in the automobile industry, then you should think of starting a spare part business. It is highly profitable. Depending on the investment capacity there are different ways of starting this business. The only thing to remember is never start this business as a part time. It demands a lot of time and dedication and efforts to run this business.

The four ways of starting a spare part business are;

1.Spare part as a retail store.

This is most traditional and profitable way of running a spare part business. The criteria is having a good location for this. The spare parts will be sold to the customers from this retail store.

2.Spare parts with workshops

This is also a very profitable way of business. People who come to repair their vehicles can find a spare part shop associated with it and can replace the worn out parts without much effort. The only criteria here is huge investment and strategic planning.

3.Spare part online shop

You can run and operate this business model from home also. Basically, you can open the auto spare parts online shop with low startup capital investment.

4.Spare part Franchise

If you don’t have any prior experience in the automobile industry, then it is better to start the business as a franchise partner.


1.Create a Business Plan

A Business plan is the main requirement for any business. Apart from creating a blueprint, the business plan helps to identify the goal and the ways of achieving that goal. Additionally, it helps to secure startup capital from the investors or banks. A marketing and business plan needs to be initiated. marketing plan should contain information about your target audience and local competition as well as how you intend to draw in your target audience.

2.Market Research

You need to get information on the current market conditions and also the potential competition. This helps in developing winning strategies which will help in getting breakeven in the initial months of starting the business. Also identify the most popular spare part brands. You also need to know what model bikes and cars are predominant in the society.

3.Understand the industry

Though no educational degree is required to run this business you must have clear knowledge about the inside industry. You may need to advise your customers what to buy and what not. These all demand specific knowledge about the spare parts industry.

4.Startup capital

Business plan is created to enable us to understand what startup capital is required for the business. You have to consider the rent of the retail space, store setup costs and purchasing the spare parts from the wholesaler or manufacturing companies. Also an estimate needs to be made on the operating expenses.


You will need to secure a location according to your business model. You must select the store space in a good location. You will need a location that is big enough to house and properly catalog a variety of spare parts for all the makes and models of cars you cater to.

6.Licensing and Registration

Talk to a local consultant and obtain information on the licensing and registration requirements. Get the licenses for opening the store, selling spare parts and have the right insurance.

7.Procuring the Spare parts

You will need to procure the spare parts that you want to sell from your store Talk to the companies and deal with the best quote with MOQ (minimum order quantity).

8.Setup the Store

You must set up the store properly. An outdoor sign is a must. Check the electrification, counter space and selves properly. You must use every inch of space properly to get the optimum benefits of it.

9.Hiring Employees

In any startup business, initial employees play important role in getting the initial success. In the case of a spare part business with workshop you might need a mechanic to handle the customers.


The final step is promotion. In the intital days of a start up business  promotion and advertising are very important. You must contact other businesses in the industry. As an example, automobile workshops buy spare parts in bulk frequently. You can offer a special discount for them.


Knowing your market, developing a business plan, getting the necessary paperwork done, finding the right location and identifying the resources are the main steps required in making a spare part dealer business profitable.

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