Considering An Automotive Franchise


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Posted on October 27, 2009
Filed Under Small Business |

Clearly, if you are thinking about an automotive franchise, certainly helps if you have an interest in cars. However, there is considerably more to taking on an automotive franchise than just a vehicle.

There are a few different types of automotive franchises that cater for different marketplaces. Some are directed toward business to business sales where business owners are the most likely customers in the automotive trade. The other type are fixed around business to end user sales. This is where the franchisee markets his services to consumers who are seeking automotive repair or other services.

Bearing this in mind how can you see the contrast between business-to-business and business-to-consumer automotive franchise opportunities, and how might they affect you?

Business to business is dealing with traders. Benefits include the fact that the traders are easy to find and therefore finding possible customers is not difficult to do. This can speed up finding customers and help to fast track your business. The only problem you may find is that traders may currently have equivelent services to those your franchise offering might provide. In essence this means that the franchise system that you, as a franchisee, are offering needs to have very strong value propositions to attract the trader to move suppliers.

B2C (Business to Consumer) is building a solid domestic consumer base. Although it can take time to build, a household customer is more often than not convinced on relationship and not so much concerned with cost. The householder wants reliability and quality and will often pay extra for it. The domestic market is also good for being referred to friends and payments are usually made on the day. Trust with your customers therefore builds up as you become established and, due to instant payment from the customer, this improves cashflow for the franchise business as oppose to B2B businesses where thirty days to get paid is more normal.

There are many types of automotive franchises but the most common include SMART repairs, car valeting and car hire.

SMART (Small to Medium Area Repair Technology) repair franchises are to do with car paintwork restoration after bumps and scrapes. Recently there have been a number of franchise systems entering the market that specifically offer this type of service. SMART repair franchise opportunities appeal to a wide market offering services to both B2B and B2C customers.

Car valeting is a huge market also and franchise operatives of car valeting brands can take advantage of the demand in both the B2B and B2C markets.

Another big business in the UK is Car Hiring and Leasing. For instance car leasing franchise systems offer franchisees quick access into business to consumer aswell as business to business markets.

In summary, automotive franchises are a great choice for both B2B and business-to-consumer markets in varying amounts. Taking on a franchise business that has access to both types of customer can assist in both sales and cash flow.

Some good advice when looking for the best automotive franchise to suit your needs is to look for a franchise system that has profitable franchisees and is run by people you feel comfortable with and would feel at ease working alongside.

After choosing your ideal franchise, it is critical to pursue the franchisor’s proven system enthusiastically.

The British Franchise Association national franchise survey states that over 90% of UK franchisees run profitable businesses. Choose carefully and you could be one of them.

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