Did you know the longest highway in Texas—officially dubbed the U.S. 83—stretches 783.5 miles from the Oklahoma-Texas border down to Mexico, according to the Texas Department of Transportation? With so many miles of road to cover rain or shine, it’s no wonder many Texans go through tires. It’s no wonder why entrepreneurs in the Lone Star State have learned to benefit from such a demand.
Opening a tire shop in Texas allows you to stay within the automotive field but specialize in one or more services without venturing too far into the more technical aspects of automotive repair. If you want to open a tire shop in Texas, start with the guide below as a roadmap for your journey.
A general business plan can help you sketch out the basic structure of your Texas tire shop and cross off some of the steps below. However, complying with the various legal requirements of owning and operating a tire shop in Texas may require additional research. Consult with a business attorney to understand what applicable laws and regulations your tire shop must abide by before moving ahead too swiftly.
Entrepreneurs wanting to open a tire shop have two options: join a franchise or stay independent. The choice often boils down to how much control you want in determining your brand image and which tire brands you’ll sell. Franchise owners can tap into a network of brand support without conceptualizing all marketing campaigns, but opening an independent shop gives you free rein to cultivate your brand.
The next step in opening a tire shop in Texas requires choosing a location and whether you’ll lease or purchase the property. Many tire shops commonly lease as it requires less capital. However, if you have the capital and desire to purchase, you have more control over how you run the property.
When searching for properties for your tire shop, prioritize those nearest the city’s hustle and bustle. The location should be easily accessible and have enough parking spaces to accommodate your customers. Ideally, the building on the property should have room for multiple working bays and a separate waiting room where customers and salespersons can interact.
As a company in Texas, your tire shop must comply with federal and local regulations surrounding operating a business. Texas law does not require a general business license. Some of the most basic steps involved in complying with these laws include the following:
You may also need to obtain a Certificate of Occupancy from the city where your tire shop is located. Since your business deals in used/scrap tires, you must register with the Texas Commission on Environmental Quality (TCEQ) if you store over 500 used or scrapped tires. Learn more about specific requirements for used and scrap tire generators by contacting the TCEQ.
Obtaining business insurance coverage can help protect your company. General liability, commercial property, and worker’s compensation are the three most common types of business insurance. If you choose to purchase a fleet of service loaner vehicles for your customers, look into commercial auto insurance.
Market research is an incredibly useful tool to inform your business decisions across multiple levels. Analyzing the market in your area can help you answer the following questions:
Thorough market analysis also influences your pricing strategy and profit margins. Establishing these parameters sets the tone for your tire shop to achieve success.
Once you’ve secured funding for your new tire shop, the next step involves investing in the machines and products you’ll need for the services you offer. Most tire shops offer tire repair, mounting, and balancing on the various brands they sell. Some shops also branch out to offer alignments or suspension work.
The basic equipment required for a tire shop includes:
None of these machines or tools have a purpose unless you have tires to sell and customers to sell them to. Speak to tire manufacturers and retailers to acquire an inventory and any related promotional materials. Additional supplies include waiting room furniture, computers, workstations, internet equipment, and printers, to name a few.
The most valuable business investment isn’t necessarily in your machines or inventory but rather in the shop management software you rely on to seamlessly manage your daily operations. Identifix Shop Manager offers a cloud-based solution that assists with growing sales, improving efficiency, integrating advanced functionality, and improving customer satisfaction. Bundled with the Identifix product suite, Shop Manager integrates digital marketing campaigns and merchant services for an all-in-one solution built for growing businesses.
As you develop your business, staffing your tire shop becomes a necessity. Strategize how you’ll assess qualifications and experience based on the positions you’ve identified as needing to be filled. At the very least, contract an accountant to oversee finances and a human resources manager to handle hiring.
Before you launch your business, craft marketing campaigns to inform and invite the community to visit your tire shop. Your initial efforts to build brand recognition are vital to cultivating a superior reputation and loyal customer base. Invest in digital marketing campaigns, paid advertising, and print ads to announce your presence, and don’t overlook the power of first-time customer discounts or promotions in increasing traffic and revenue.
Building a reputable tire shop in Texas requires forethought, dedication, and strategy. Increase your chances of success with the Identifix suite of products designed to support modern automotive businesses of all sizes and disciplines. Identifix Shop Manager gives you the confidence of consistency and reliability in software built to scale with you as you increase customer satisfaction and achieve success.
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