The Business Overview
A tire according to Wikipedia, is a ring-shaped component which surrounds the rims of a wheel. The car tire plays a vital role in the driving dynamics and the general functioning of a car or vehicle. Car tires are needed to drive a car and, therefore, are in constant demand in the market.
Starting a car tire business in Nigeria is a bit costly, given the per-unit-cost of car tires in the country today. But as millions of vehicles continue to ply our roads, millions of cars and consumers also need car tires.
So, going into a business such as this requires sufficient start-up capital to meet the ever-increasing market demand.
You may consider expanding beyond sales of car tires, and also, go into car tires equipment sales which will bring in more profits by the day. Once you have gotten the basic start-up capital, you are good to go in this business.
Profitability of Car Tire Business
The most lucrative tire brands to sell are those belonging to any of the top brands. You can also decide to sell some unpopular brands as well, which are reliable.
When you import them directly from the manufacturer, you are going to sell them off at a far cheaper rate than when you buy from a middleman or supplier.
The Market & Demand Overview
There is an increasingly high demand for the car tires in Nigeria. The market outlook, therefore, includes anyone who has or uses a car – drivers whether personal or commercial, transporters, vehicle owners etc.
The business is highly demanded in Nigeria because of the high influx of cars in the country, which tires increasingly breakdown from time to time.
Car tire business is expensive but at the same time, profitable once it is well established. With millions of vehicles in production and circulation, millions of vehicles, as well as drivers, will continue to need car tires.
Choose and buy the brand of car tires which your potential customers are likely going to ask for. Also, keep your price as affordable as possible so that you can increase the number of customers who patronize your services.
How To Start Car Tire Business In Nigeria
To get wide knowledge of this business, you may have to undergo some apprenticeship in the business. Additionally, consult several materials and published works on car tire business.
Also, consult veterans, professionals and tire suppliers in this field to help you with the necessary startup guide for this business.
Wheels and tires come at different sizes, shapes, utility, and prices. They are more complicated than they look and as there are different kinds of tires for different vehicles and purposes, you need to have sufficient knowledge on how, why and where a particular kind of car tire fits. Car tires for commercial and industrial trucks are not the same for sports cars.
As a would-be car tire dealer, you should be knowledgeable and conversant with the different kinds of car tires to be able to interact well with your customers and also to be able to give them the best advice on their car tire needs. These will add more value to your business and also keep you longer in the trade.
Business Registration, Certification & Licensing
To run this business successfully, you may need to get a business permit registration and license from the Corporate Affairs Commission of Nigeria (CAC). This will give your business a professional outlook and help you gain the trust of present and prospective clients/customers.
You need sufficient finance to cover majorly the following:
1. Cost of stocking your warehouse with different brands if car tires
2. Tire changing and installation machines, tools, and equipment.
So, the financial involvement here should stand at basically N500, 000
Read Also: How To Start A Car Leasing Business
Tools and Equipment:
Some of the tools and equipment needed for car tires business include the following:
1. Centering devices
2. Impact wrenches etc.
3. Tire changers
4. Tire pressure machine
5. Wheel balancers
Get good business premises that will meet the need of the customers. You can start your car tires business in a city, a village or a town.
In all this, getting a location close to a busy area for an easy accessibility is essential. For example, you can site the business near a filling station or a car stand.
Since you will be stocking a large volume of car tires, you should get a space large enough to accommodate your stock. It is not however advisable to site your business too close to other car tires businesses to avoid unnecessary competition.
You can decide to start a sole proprietorship business. You can also decide to partner with another established car tires company.
Choose a memorable and easy to pronounce name for your car tires business. To get a brand or business name, kindly contact the Corporate Affairs Commission of Nigeria (CAC). Always be nice to your customers.
Staffing & Personnel
You may have to get someone to help check for faulty tires, wash your tires where they are dirty and take care of the wheels balanced aspect of the business.
If at all you must hire, then, hire professional and highly skilled manpower for this business. Ensure that they have minimum car tires work experience. Also, you need an automobile engineer to handle the technical aspects of the business, customers’ requirements and advising.
Ensure that you employ only capable hands, who are trained in the handling of equipment. Understand that people’s lives are in your hands when you work with tires. As such, so you cannot afford to hire untrained and careless personnel.
Seek advice from professionals and veterans in the business.
You can make an online presence by creating a website for your business. Register your products on every available E-commerce platform to drive sales online.
Also, place adverts and jingles on TV, radio, and, also, employ word of mouth. Print fliers and also upload pictures of your products and services on social media.
Basic Sustainability Tips
See some of the sustainability tips for this business below:
1. Offer customers the correct size and brand of tires they need.
2. Be honest and loyal in your dealings.
3. Offer promotional gifts to your valued customers as this will make them effective customers.
3. Also, provide free value-added services such as wheel balancing and special, meaningful discount for tires and tire accessories to keep pace with the impending competition in the industry.
Other services you can offer as a profitability and sustainability strategy include oil change and tune-up. Aside from that, you should also have an idea of car repairs and servicing. If you have experience in car tire sales and car servicing, that is an added advantage for you.
Read Also: Where to Buy Cars in Lagos, Nigeria
Tires are used all over the world, and in Nigeria as well. Obviously, they are the only contact between the car and the road.
A good car tire dealer, therefore, should come up with a contingency plan for his business startup and sustainability.
You also need to keep yourself updated about the latest innovations in the industry, which, as you know, or should know, is very dynamic and subject to regular changes.
Most importantly, you need to know information on tire recalls, and changes in government policies which affect the entire car tire business in Nigeria.
Read more business insights here
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