Starting a Small Car Company
Starting a small car company is a smart idea and a great source of income. However, there are several things to consider before turning the idea into a viable business opportunity. First, it is imperative to find the niche for the new company. For instance, one should identify the needs filled by the automobile that other vehicles lack, the competition in the market, as well as the benefits of purchasing the vehicles. Second, starting a vehicle company requires more capital especially in R&D (research and development); therefore, it is important to have enough funds. Arline (2015) identifies government grants, investors, bank loans, savings, or loans from friends or family members as imperative ways of raising funds for the company. Third, having a design team provides the technical knowledge required to start the company (Gladney, 2006).
The team can also help in building the original prototype automobile. At the same time, its experience in the industry can add credibility to the design and the organization as well. Besides, outsourcing more production helps in reducing the cost of manufacturing. For instance, purchasing milling machinery and other gadgets to use during the manufacturing process is very expensive, not to mention reimbursing the machinists and engineers to devise and produce car parts. It is also important to think about the advertising techniques to use to inform the buyers about the company and its products.
According to Morris (2008), hiring an advertising organization would help to discover the demographic to target. Consequently, starting a small car company requires getting a business office for managing the part makers, suppliers, and operations like marketing and payroll. It is essential to track the spending and all the income produced by the new organization. Additionally, the company might take several years prior to making actual profits; therefore, it is essential to remain resilient.
Arline, K. (2015). 15 Creative Financing Methods for Startups. Retrieved July 23, 2015 from http://www.businessnewsdaily.com/1733-small-business-financing-options-.html
Gladney, A. (2006). Starting your Own Detailing Company. Raleigh, North Carolina: Lulu.com.
Morris, M. (2008). Starting a Successful Business: Start Up and Grow Your Own Company. London: Kogan Page …