Tire business plan with financial calculations

The number of cars is growing every year, respectively, and the demand for their service, too. Nowadays, this is no longer a luxury item, but finding a quality workshop and tire fitting is not so easy. Therefore, tire repair shops, tire and tube replacement, wheel balancing and, of course, tire storage are so popular.

How to open a tire shop and what is needed for this , we will analyze in this article. We will also analyze step-by-step instructions that will be your cheat sheet, even if you are completely new to this business.

Features of tire fitting as a business in general

When opening a tire service, remember the seasonality of this business. Workshops earn most of their income during the high seasons – this is the beginning of winter and spring, while doing mainly tire changes.

At this time, there is no end to customers, and the owner comes up with ways to take in more customers, while increasing the work time in 2 shifts and buying productive automatic tire changer equipment to speed up the process.

But at the same time, it is very important to take care of the future and, in addition to the main income, to find and implement additional opportunities for secondary services that will be in demand outside the season. We must not forget that competition is still present and it is high.

The best place to open a tire shop

To ensure efficient operation, it is very important to choose the right place where to open a tire shop. Before you stop at a location, you need to take into account the competition within a few kilometers, as well as the presence of a traffic flow of cars. It could be:

  • a place on the roadway, for example, a busy highway where a large flow of cars moves;
  • places near gas stations, large parking lots;

Also, as an option, it is worth considering:

  • places near garages where there are many women motorists who find it physically difficult to change tires;
  • locations near new residential complexes.

Basic requirements for a tire fitting room

In addition to the characteristics of the location, it is necessary to take into account the room in which the tire service with all the equipment will be located. For an ordinary workshop, an area of ​​​​30 sq.m. For this, such premises as garage boxes, hangars and the like are suitable.

If you want a European-level tire fitting, then this is a room for a mini-service station for 2-4 posts, with cars driving inside.
But in this article we will consider a more budget option, so we need a platform for parking and lifting cars, at least 2-3 free spaces. If possible, install a tire lift.

A very important point is to take care of the 380 W electrical network.

You should also not forget about customers who will have nothing to do during those 40-50 minutes while their cars are being changed. After all, for sure, you want them to become permanent. But don’t be afraid – there is a solution for this too, and I’ll talk about it a little later.
Pay attention to the technical components of the room, such as:

  • access to daylight and fresh air, ventilation, air conditioning,
  • the presence of constant access to water;
  • a separate room;
  • moisture resistant and explosion-proof materials for walls and floors;
  • the presence of lamps;
  • bathroom with working shower for staff.

Tire fitting equipment

Before opening, it is imperative to purchase equipment for our future tire service. This should be approached with special responsibility, because it is more than 90% of success. The full set of equipment will depend on what other services you are going to provide.

tire fitting equipment
Minimum, but basic set of equipment:

1. Tire changer.
2. Balancing machine.
3. Jacks are car lifts. They work on a hydraulic press and are equipped with a long handle for easy operation. They often serve as car stands as well.
4. Nutrunners – designed for spinning or tightening wheel nuts.
5. Vulcanizer – used to repair tires and tubes, even with side cuts. For efficient operation, you need a timer, which cheap models lack, showing the exact time the tire is under pressure from the vulcanizer.
6. Compressor
7. A container of water, to check the tightness of tires.
8. Tool kit.
9. A set of consumables
5. The legal side of the tire shop

First of all, you need to register a tire shop. The most profitable option is to open an IP . There is no special paper work here, but you still have to visit Rospotrebnadzor to obtain a permit to carry out activities. Also try SES, a fire department and conclude agreements with companies for the removal of waste and garbage, recycling of old rubber and fluorescent lamps.

You also need to draw up internal documentation in accordance with the norms of the tax authorities. To pay taxes, I recommend a simplified system where you will pay a percentage only on real income.

Tire fitting staff

Tire changing business is a plus for those who want to have a good job but don’t have special skills. It is good when the education is secondary technical, or higher profile. In general, tire changers already have minimal skills, and sellers of tire equipment will help you teach them how to work on new modern stands.

The number of people who will work for you is up to you. It depends on the season and the number of services. If you work around the clock, then you need two shifts of two people each. One person at one installation post. Ideally, when in one shift there is one competent main pro and 1-2 assistants with lesser requirements and skills.

Tire promotion

Effective for your tire fitting will be advertising on the Internet, in the open spaces of popular sites. Here you can offer your future clients an appointment at the appointed time, as well as a number of bonuses and services with various discounts. But, just do not forget how well advertising works in the form of distributing flyers, business cards and posting ads.

Perhaps it makes sense to launch advertising campaigns in Yandex and Google . This is how the frequency graph looks like for the query “tire fitting” for the year from the Yandex wordstat service , we see that the seasonality is very significant.

Amount of investment to start from scratch

The initial capital for opening a tire fitting is rather low, but this is taking into account the small rented premises. Which at the initial stage of the business will be quite enough. So:

  • Premises for rent – from 20,000 to 30,000 rubles.
  • Equipment, tools – 300,000 rubles.
  • Staff and uniform expenses – 25,000 rubles.
  • Cash register – 10,000 rubles
  • Tire service advertising – 25,000 rubles.
  • Other minor expenses – 10,000 rubles.

Now you can sum up how much you need to invest in general.

How you can save money by opening a tire shop

When you open a tire fitting, you will not be able to seriously save. In most cases, this is a small saving even before opening. But then all the preparatory work will fall on your shoulders.

Also, one of the options to save the budget is to conclude a piece-rate agreement with the employee. Well, do not forget that you can build a tire service in the yard. But this is not always appropriate and comfortable.

Things you should not save on when opening a tire shop

It is strongly not recommended to save on equipment, as your future reputation will depend on it. And if you have already decided to buy used equipment, then get ready for the fact that

  1. You will not have any documents, which complicates the connection of equipment
  2. There is no guarantee of how long it will last.
  3. Constant self-repair and difficulty finding the right part

And if you, nevertheless, have chosen this option, then you have a choice – European or Chinese manufacturers. But, do not forget that both European and Chinese equipment will require regular expenses for new parts.

Most likely, the service life of used equipment is often limited to 2-3 years, but this is individual and depends on operation and storage. The acquisition of such units is the purchase of a pig in a poke, and if finances allow, then it is better to take care of buying new devices.


Average tire fitting income

Without a doubt, the income of your tire shop will depend on the season, the number of services you provide, as well as the location.
The main areas of tire fitting are vulcanization and balancing, the cost of which ranges from 800 to 1200 rubles.

During the season there are 20-25 clients per day, depending on the factors described above. But on average , daily revenue can be 25,000 rubles or more ! If the tire service works around the clock, then, of course, the profit will be greater. But it is worth remembering that the high season lasts 4-5 months. This is where additional services come in handy.

Another important point: this is a service not only for imported cars, but also for domestic ones.
Payback of a business in an average of 1.5 years , depending on the scale and profitability of the enterprise. However, a tire shop is a viable business idea with the right approach.

Where else can you make a profit in the tire business

Where else can you make a profit in tire fitting? The answer to this question is obvious – add a few services to your price list. To increase the profits of their business, some workshops offer seasonal tire storage. This is very convenient for those motorists who do not have a garage or do not have space in it.

Also in the list of services you can add the service of mobile workshops, on-site installation, which is becoming increasingly popular, rolling and straightening disks, repairing side cuts. Do not forget about services for freight transport, which can bring a lot of money, since this niche is not filled enough.

Finally, let’s remember about additional services that will delight not only the cars of your customers, but also them.

If you have money, then do not hesitate to open or buy a mini-cafe franchise where customers can enjoy aromatic coffee and fresh croissants while their cars are “changing shoes”.

So, having figured out exactly what and how much is needed to open a tire service, you can safely join the business.

And without wasting a minute of your time, run to rent a place before someone else does!