The dealership business has evolved tremendously over the past few years. Most retailers and small business owners obtain certain dealerships and start a business. A business is considered a dealership when the owner of a brand allows an individual or company to sell a certain product. There are various options for a dealership business that you can choose from according to your preferences.
Dealership business ideas are less risky compared to other businesses. You can start this business with a minimal amount of capital. Let us look at some of the dealership business ideas that you can implement.
Dealership Business Ideas
Which dealership is most profitable in India is a common question that comes in the mind when you're starting a dealership business. Some of the small business ideas for dealership are as follows:
1. Automobile business
A primary business idea you can consider is an automobile dealership business. You can deal in car parts, bike accessories, and other related items. You need a good knowledge of retail parts and car accessories. It is one of the unique business ideas if you are a car or bike lover. Vehicles often need maintenance and repair. So, starting an automobile business is a good business idea. It is a highly profitable business because of the high demand.
2. Food business
The food industry is one of the largest industries in India. Food is always in demand and will continue to be in demand. So, getting a food dealership is highly profitable. You can get a dealership in various food items, like bakery items, dairy products, snacks, beverages, jam, daily grocery items, etc. Consumers need daily products for their household. So, it is the best business to start in India.
3. Health care and beauty products
You can also start a health care and beauty products dealership business. It is one of those small profitable business ideas that require low investment. You can get a dealership for various beauty and health products, like medicines, cosmetic items, specific brands, personal care items, healthcare items, etc. Purchasing the dealership for famous brands will help you increase the sales and revenues of the business. You can also start a healthcare and beauty products business from home.
4. Jewellery business
The next dealership business idea that you can start is the jewellery business. Jewellery is an essential part of women’s lives in India. A jewellery business is a small scale business that you can start from your home. There are many big brands in jewellery that you can associate with for your business, and you can get a dealership to sell their products.
It is profitable and a popular business idea among young people. However, it requires knowledge and interest to start this business. You need to possess the required knowledge of jewels, purity level, polishing, etc., to understand your jewellery pieces. If you have a knack for creativity and passion, you can start a jewellery dealership business.
5. Organic food business
Large sections of people increasingly prefer organic food items compared to normal inorganic food products. The organic market has immensely grown over the years. So, there is a perfect market opportunity to start an organic food business. There are many companies and brands that sell organic products and food items for sustainable living. You can identify the dealers that have more demand in the market and sell their products. It will increase the revenues and the profits of your business.
6. Furniture dealership business
Another lucrative dealership business idea is a furniture business. You can choose the specific furniture items and narrow down the specifications that are in demand. It is one of the new business ideas you can start in India. Several dealership companies allow small business owners to obtain their dealership services. You can select portable, lightweight, multipurpose, and trendy furniture as per customers’ requirements.
How to Get a Dealership?
Let us now discuss the steps required to get a dealership. The basic steps for starting every type of dealership are as follows:
1. Create a dealership business plan
A dealership business plan, as the first step, will help you streamline the next steps for your business. A dealership business plan will help you determine the investment, budget, capital, requirements, financial plan, management and operations plan of your business. The business plan will be different for different types of businesses. Research about the business you want to start and plan accordingly.
2. Identify your dealer
After selecting the business and creating a business plan, the next step is to identify your dealer. It is essential to identify them wisely and check their legal papers to verify the business activities of the dealer. Also, you can check the work permit and licences of the business for security verifications.
3. Dealership contract
The next step is a dealership contract. A dealership contract is a document that states all the conditions and requirements of the business. It states the name of the dealer, restrictions, purpose, etc. A dealership contract is made keeping in mind the type of business. It helps a buyer to understand the business restrictions, process and guidelines. After reading the contract, both parties sign the agreement. It allows small business owners and entrepreneurs to officially and legally sell the brand’s products.
4. Start the business
After signing the contract, a small business owner can start the dealership business. The owner can sell the products online or offline as per their requirements and preferences. You can use social media platforms for advertisements and the promotion of the business. It will help you grow your business faster.
Thus, we can say that dealership businesses are profitable and high in demand. Among the best business ideas, a dealership business can be launched with less effort, rather than starting a new business from scratch. There are several options for dealership business ideas that you can choose from, such as furniture dealership business, clothing business, textile business, health care and beauty products business, etc. if you are looking to start a dealership business, read the steps required, as mentioned in the article, to obtain a dealership.
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Q. How much money is required to start a car dealership in India?
Ans. The funds required to start a car dealership varies based on the brand. The minimal cost ranges from INR 10 lakhs to INR 20 lakhs. However, the investment cost can go up to INR 50 lakhs. If you are selecting high-end brands, the cost will be much higher compared to average brands. High-end brands can cost up to INR 1 crore or above. Individual car manufacturers charge different prices for different dealership companies.
Q. What documents are required to start a car dealership business?
Ans. The documents required to start a car dealership business are listed as follows:
- Proof of nationality
- School certificates or passport
- Voter ID
- PAN number
- Aadhar card number
- Driving license
- Address proof (ration card, electricity bill, rent agreement, property proof, etc.)
- Location details
- Bank information
- Business licenses and certifications
Q. Are dealership businesses profitable?
Ans. Dealership businesses are considered profitable compared to other small businesses. Starting a dealership business expands the business reach and customer base. It also increases the revenues and profits of the business. The demand for branded clothes, cards, IT products, and other branded items is high in the market. This makes it a profitable business idea.