The automotive sector in California is one of the biggest when compared with the other states in the US. It presents a lot of opportunities for individuals and businesses to grow and succeed. There is increase in vehicle population, and even the average miles that are driven by people is increasing.
Below mentioned are some profitable automotive business ideas in the state of California. These ideas will offer good revenues, provided that you make well-planned business investments, and work towards achieving the business plans. If you are passionate about the automobile sector then you can also start a business with low startup capital.
Auto Parts Business
Even during the economic recession, the auto parts retail sector enjoyed the resilience, so you can get great opportunities for potential profits in this business.
The necessary steps will be –
- Choose a location viable for business. Start with evaluating the auto part stores saturation around the area where you are considering to start. Even research on the purchasing power and potential buyer’s nature around the neighborhood.
- Conduct competitive market research, so as to know your competition’s niche; it will help to plan a strong market strategy.
- Learn about registration, permits, and licenses. If you plan to buy and used auto parts store in some jurisdictions, you will need to procure a separate license. You will also need to file for sales tax registration.
- Hire talented sales staff and cashier, but the number of employees you hire will depend on the store size.
Car Driving School
Everyone has to learn car driving basics and prepare for California driving test to get a valid license. Therefore car driving school is a good business opportunity. Before opening a driving school business, learn about the requirements in the state, identify your competition, and even build a great promotional strategy.
For a business license, you will need to apply with the DMV of California. The agency reviews the application and inspects your school classrooms and offices. When you get approval, pay the license fee.
For getting state driving instructor’s license in California, your application will include –
- Occupational license application
- Driving school inspector’s occupational license application
- Health report
- Driving school instructor’s written test
- Live scan clearance request
- Course completion certificate
- High school degree
- Application fees
Develop a plan on how to teach the students, both theory and practical lessons. Set your school prices according to the rates offered around the location. Promote driving schools through local connections like car insurance agencies, local high schools, etc. Also, establish a working relationship with the local DMV office.
Small Pre-Owned Car Business
Steps to follow for opening a small pre-owned car venture includes –
- Solid business plan
- Financing options
- Viable location with lots of parking, and with easy main road access
- Learn How to get a dealer’s license in California
- Sales tax permit requirements
- Hire experienced sales staff and maintenance staff to prepare used cars for sale
- Compile pre-owned cars
- Create a marketing plan
Now, you are ready to celebrate a grand opening!
Car Wash Business
In California, car wash business will require registration. This business includes washing, drying, cleaning, detailing, polishing, and servicing. There is no car repair included.
- Fill car wash registration application online. You will need to include a car wash bond, tax filing & payment proof, workers compensation insurance proof, compliance proof, and registration fees.
- Car wash bond guarantees that the company will compensate workers fairly as well as adhere to local employment laws.
There are many other business ideas like an automated car wash, multi-story parking lot, headlight restoration business, auto detailing services, window tinting business, etc. Choose the one that you are passionate about.