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So, how do you go about setting up your own used car business? The first thing to realize is that no matter whether you are establishing a part-time or full-time company, your patrons and the government will expect you to conduct yourself and conduct your business in a professional way and they have every right to do so.

If you do not conduct yourself appropriately, you will present a bad impression to your customers and get a bad name with them and you will get a bad standing with the taxation authorities and maybe the health and safety people too and be beleaguered by them with more that the average number of check-ups.

Decide what your main market is. Do you want to concentrate on used expensive cars, middle-market or cheap vehicles? Or do you want to sell trucks, vans, buses or motorbikes? It is helpful to specialize, if your catchment area is large enough. For instance, if you live in a village miles from anywhere, it might not be worth specializing in second-hand buses, but used farm equipment could be a winner.

Pay a lot of attention to the location of your business. If you propose to sell one or two cars from adverts, this is not quite so important, but if you have ideas for the future, you might want to get a small plot that you can expand on later.

This plot should be in a highly visible location, say beside the highway that leads into town. If your location is less than ideal, you will have to spend a lot more on advertising, which is something to keep in mind, when trying to work out what you can afford to pay for the lot.

Another key issue to keep in mind before agreeing to any contracts, leases or mortgages, is to find out whether you are allowed to open a used car business in that location. Some countries have a highly complex set of rules and regulations governing which kinds of business can be located where. This is frequently called ‘zoning’. Sometimes you can get a ‘zoning variance’, but not every time.

Once you have your location and have decided what kind of used vehicles you want to specialize in, you ought to concentrate on establishing a unique corporate identity – one that is instantly recognizable to local people as denoting your business. Use a motto, an emblem or a motif or a permutation of these, put up a sign and sign-write your van or tow-truck with them as well.

In the next section of this mini series, we will be looking at how to buy in your stock in trade – your vehicles.

Owen Jones, the author of this piece writes on a range of topics, but is currently involved with remote car alarms. If you would like to kcurrently more, please visit our website at Laser Temperature Gun.