Are you thinking about starting a truck dealership? Starting a truck dealership in Australia can be a lucrative business venture with a huge upside to growth. However, like any business, starting a truck dealership in Australia requires careful planning, having a clear business strategy, and understanding of the market.
EasyCars has put together the complete guide which will walk you through the essential steps of starting a truck dealership in Australia.
1. Conduct Market Research
Before diving into starting a truck dealership, it’s vital that you understand the market that you’re getting into. Do market research and understand the demand for trucks in your local area. Research competitor Truck Dealerships and how they operate.
Some of the key fundamentals that you should know and understand are:
- Market size and growth: How big is the Truck Market? Assess and find the current market size and it's growth potential.
- Customer demographics: Who are your truck dealerships ideal customer? Are they businesses, individual truck owners or logistics companies?
- Competition analysis: Who are the other competing truck dealerships and what are they doing well?
- Economic factors: How will the economy impact your truck dealerships sales? consider the economic environment, including trends in the transportation and logistics sectors.
2. Develop a Business Plan
The key to success in any industry is having a well-structured business plan that outlines what you are going to do and how you are going to achieve it. Your Truck Dealerships business plan will serve as the roadmap for your business and is crucial if you need to source financing from a bank. Your business plan should include:
- Executive summary: An executive summary is an overview of your truck dealership including your mission and goals.
- Market analysis: A detailed analysis of your market research findings.
- Business structure: The legal structure of your truck dealership. Are you going to operate under a sole trader business structure, partnership or company?
- Products and services: What type of trucks will you sell? Will you sell used trucks or new trucks? In this section outline all the trucks, brands and services that your dealership will offer to customers.
- Marketing strategy: How are you going to get customers to your truck dealership? Outline your plan.
- Financial projections: This part is arguably the most important part of your business plan. Outline your initial startup costs, revenue projections and profitability analysis.
- Operational plan: How will your truck dealership operate? Outline processes staff, location and inventory management in this section.
3. Secure Financing
Starting a truck dealership in Australia requires significant financial investment. You will need funds to purchase truck inventory, pay location rent, staff costs, marketing and day-to-day operations. Some of the most used financing options include:
- Personal savings: Using your own savings to fund your truck dealership.
- Bank loans: The most used form of finance is getting a business loan from an Australian bank.
- Investors: Another commonly used form of finance is getting investors to provide funds in exchange for equity in your truck dealership.
- Government grants: Another option available is to explore government grants and subsidies, however these are extremely competitive and are a lengthy process.
4. Obtain Necessary Licences and Permits
To operate a truck dealership in Australia you will need to have several licences and permits. Common truck dealership licences include:
- Business license: The first requirement that your truck dealership will need to complete is registering your business with the Australian Business Register (ABR) and gaining an Australian Business Number (ABN).
- Motor dealer license: To buy and sell trucks in Australia you will need to hold a valid Motor Dealer Licence. A Motor Dealer Licence can be gained through your local states transport authority.
- Zoning permits: You will need to ensure that your truck dealership’s location complies with local zoning laws.
- Environmental permits: Depending on your truck dealerships services, you may need environmental permits for waste disposal and emissions. This is important if you are thinking of having a service department add on.
5. Choose a Suitable Location
Your Truck dealership’s location is paramount for achieving success. It is important to consider some of the following factors when choosing a location for your truck dealership:
- Accessibility: Be sure to choose a location that is easily accessible for customers and by major roads or highways.
- Visibility: Choose a location that garners high visibility and traffic flow. This will help attract potential customers without needing to spend big on marketing.
- Space: Truck dealerships require space. Choose a location that has adequate space for displaying truck inventory and accommodating customer parking.
- Facilities: Choose a location that has all the facilities required like office space, service bays and customer areas.
6. Build Relationships with Truck Manufacturers and Suppliers
How are you going to source consistent truck inventory to sell? Build strong relationships with truck manufacturers and suppliers. Consider doing the following:
- Research manufacturers: Research different Australian Truck suppliers that offer the types of trucks that you are looking to sell to customers.
- Negotiate terms: Once you have chosen your supplier, negotiate terms for purchasing the trucks to sell. Be sure to go over delivery timeframes and return policies.
7. Set Up Your Dealership
Once you have found a suitable location for your truck dealership in Australia, it’s time for you to setup your dealership. This process includes:
- Designing the layout: How are you going to optimise space to fit everything that you need to sell and trade? Plan what you want your truck dealership to look like.
- Setting up an office: Build an office area where your staff can perform different administrative tasks, talk to customers and finalise sales transactions.
8. Hire and Train Staff
The next step to starting a truck dealership in Australia is hiring the right staff. Consider hiring the following roles:
- Sales team: To be successful you will need to hire a strong sales team to sell the trucks in your inventory.
- Administrative staff: You will also need to hire an administrative staff to handle paperwork, customer enquiries and other required general tasks.
- Marketing and finance team: Depending on the size of your truck dealership and how you’re planning to operate, you may want to hire marketing and finance staff.
Provide ongoing training to your staff to keep them updated on industry trends, product knowledge, and best customer service practices.
9. Develop a Marketing Strategy
How are you going to get customers to your dealership? You will need to create and implement a strong marketing strategy that is cost effective and will leverage lead generate. Consider using the following strategies:
- Online presence: Create a professional truck dealership website to showcase your trucks for sale, services, and contact information. Consider implementing SEO to build traction and improve online positioning on search engines.
- Social media: Use social media to your advantage to engage with potential customers. Share customer successes, promote and advertise the trucks you have for sale!
- Local advertising: Consider using local newspapers, or radio stations to advertise your truck dealership and the trucks that you have for sale.
- Email marketing: Build an email list and send regular email pieces that promote your truck inventory to keep potential customers engaged and aware.
10. Implement a Dealer Management System
Managing a Truck dealership isn’t an easy task. To automate management, consider implementing an industry specific dealer management system like EasyCars. A system like EasyCars completely automates the running of a truck dealership. Tasks like stock management, advertising, government compliance, accounting, invoicing and reporting can be automated in one easy to use affordable system, giving you back time to focus on what you do best – buying and selling trucks.
Final Word,
Starting a truck dealership in Australia is an exciting experience but does require careful planning and execution. The 10 points presented in this piece are step by step on how you can start a truck dealership in Australia.
DISCLAIMER – The content within this blog does not constitute professional advice and is intended to be general in nature. Please consult with all relevant parties prior to making any decision.
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About EasyCars,
EasyCars by Jeal is an Australian, web-based, dealer management system that automates the buying and selling of motor vehicles. Using the latest technologies, EasyCars removes frustrations experienced at the dealership and opens your doors for greater growth.
EasyCars features include Simple Stock Management, Automated Advertising, Integrated Accounting, Government Compliance, Business Reporting, Facebook Automotive Inventory Ads, Reviews Management, Dealership Websites and more.
To learn more about EasyCars Dealer Management System or to arrange a no-obligation free demo, contact us today on 1300 473 744 or submit the form below.