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CEO Confidential

5 Tips To Choose The Right Location For Your Auto Business

Convertible coupe parked near high-rise building

Running an auto business can be a very interesting prospect for a number of reasons. It has plenty of opportunity coming with it, with the abundance of cars in the world and the continuous improvements being made in the automotive industry. Add to that a potentially wide customer base to keep things interesting, and you have a well-rounded business opportunity. If you are trying to set up a new auto business, the location that you are working from is crucially important, having several different factors that need to be taken into consideration. Here are some important tips to consider while deciding on the location of your business.

  1. Convenience

For an automotive business, the first thing that needs to be considered is the kind of client base you’re expecting and how easy it would be for the customers to reach your base of operations and still make their way back without a vehicle. For example, if you’re looking at a “common man” clientele, you might find that setting up shop near an area where public transport is easy to come by would be a factor that pulls customers in your favor. A restaurant or eatery close by could also serve as an alternate waiting area for those who need only wait a couple of hours for their work to get done.

  1. Check the rules of the area you want to set up shop in

Certain areas have designated zones, which means that they are only meant for certain kinds of establishments. The area you wish to set up in may not be conducive to a business like yours, especially if the area is a residential one. Automotive businesses perform tasks that can get pretty noisy, and that may not be an ideal situation for the pipeline around you. So, making sure that the area you choose is zoned for the kind of work you will be doing is crucial.

  1. Check out nearby competition

Be careful if the location you choose is a fairly popular one; there are chances that the competition around you is high. Scope out the area around the location you pick and find out how many competitors you may be going up against. As far as possible, try to make sure that there are no competing businesses within a reasonable distance from your location, or at least, that the customers you get outweigh the competition you face, for a healthy return on investment. Compare Florida auto insurance rates here.

  1. Size and cost of the facility

This might have been fourth on this list, but it’s no less important for it. When looking for a place, you will have to consider what kind of work you wish to do onsite, and the kind of equipment you will need to do it. This further raises the question of the size of the facility you need for your business, that can accommodate all the heavy artillery you’ll be needing. And since this has a direct effect on the cost of the facility, you also need to know exactly how much you can afford to pay for the facility and the machinery you’re planning to buy.

  1. Prestige of the location

If the location you pick is situated in a reputed part of town, you are more likely to attract customers to your outlet. A good address is more likely to give out a feeling of repute and good business with the members working at your outlet. It also allows you to prove your services at a slightly higher rate than usual, for you are operating out of a premium location and are offering top notch services to your customers.

Starting a business in the automotive industry, especially as a repair business, has a lot of scope for flexibility. So, be sure to decide exactly what kind of business model you’re trying to go for. There’s a chance that the kind of business you’re looking to set up doesn’t even need a fancy facility; but that is for you to decide. Do your homework, ask around for advice (preferably people who are in the business and don’t mind giving you shelling hand) and your business will sail smoothly.


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Alexandra Dimitropoulou
Deputy executive editor at the ​CEOWORLD magazine. Writer, internet person, professional restaurant recommender, and native New Yorker. Passions: health & wellness, coffee, running & dogs.