Owning a car is one of the biggest deals to most Zimbabweans. It is commonplace for most people to aim at making a car one of their first significant purchases. At times the motives for buying a car are petty and do not wield any meaningful value other than seeking to impress people and all. However, some buy cars for very wholesome motives which actually generate more money. Anyways, that is not my focus in this article because it is a heavily contentious issue. I want to discuss how you can start a car sale business in Zimbabwe.
A car sale business can be either of two approaches or a mix of the two. These are selling brand new cars, selling pre-loved cars, or selling both. The choice of approach is crucial to your capital needs in particular – I will discuss later on. These approaches can also branch out to several different approaches. For instance, where and how do you intend to source the cars – either new or pre-loved? You could source locally or import; all this will greatly influence your overall business approach. The types of vehicles you will be dealing with also come into play.
The vehicle range spans from light motor ones to heavy haulage trucks. However, for this type of business, it is best to start off or solely focus on light motor vehicles. The other aspect that must be interrogated here is how will you be rolling out the business? Will you just source vehicles of your own choice and put them on sale? Will you, instead, opt to source the cars as per order? Before you start putting this business together these are some of the issues you must decide on.
You will need spacious premises, for instance, a place with showroom(s). I would advise that you must not really stress yourself with seeking to look for a building. There is a much more cost-effective option and I will explain it here. You can just get a spacious piece of land. On that land, you will then erect shades under which the cars will be parked for display. Office space you can always makeshift bearing in mind you want something cheap but effective. You could explore the option of using cabins, used tankers, or even tents – think outside the box. You will invest in secure fencing too – obviously, security personnel will be needed. Security cameras are also an important inclusion; they are not as expensive as you think. For just US$100 or less you can nowadays find a good 360-degree view security camera. Then of course you will need the actual vehicles. Car wash utilities will also be necessary to periodically clean some vehicles if they get dirty somehow.
Three of some of the key areas that need skilled personnel will be administration, sales and marketing, and a technical team. This does not necessarily mean you need a big team though – multitasking can be done. Just so you know, at least 3 well-rounded individuals can smoothly run and manage a car sale business. Thus the size of your business will mostly inform on how many people will be required.
Two major things that need money in starting a car sale business are the premises and the cars. With that said, it is apparent how variable the amount needed will be from business to business. There are several variables to consider that inform on how much money will be needed. The approaches you choose to adopt for your business are a huge determinant of your financial capital requirements.
So many people are looking to buy cars but that does mean the market is easy to tap into. One of the reasons this so is because most people import cars themselves. Some leverage on having friends and relatives outside the country that can facilitate car importation for them. Then locally we have a common scenario where people sell cars amongst themselves as individuals. You must do your market research before starting this business. You would not want to have a scenario where cars are just parked at your business for months on end. Digital marketing is so pivotal in this business; depending on people physically passing by is limited. Take advantage of the internet and social media platforms. People typically search for cars online when they want to buy one so be active online.
Important Things To Consider
Proper registration and adherence to regulatory frameworks are important. Where applicable, especially when sourcing vehicles from individuals ensure they are not stolen. Thorough due diligence is extremely important. To operate as a car sale business you need to be licensed so make sure you are. Do not also forget to get insurance – it is important to be insured. Digital marketing does have its place but that does not mean the physical location of the business is unimportant. You must also see to it that all relevant paperwork is in place. Anything involving sales, sales agreements, contractual agreements, and what nought make sure the paperwork is legally binding.
So that is what you need to know about starting a car sale business in Zimbabwe. Strategically pick your location and adorn it with alluring branding. Online make your brand visible by setting up a good website and social media accounts. It is also good, to be honest in this line of business; do not lie to customers about the condition and specs of your cars. The other key to success in this business is having a great team running your business.