The mod culture is a great opportunity for anyone who wants to get started in the car audio business. It’s one where you can start with moderate capital, and it is a great way to take advantage of the huge demand for specialized entertainment and audio equipment. If you have a natural passion for cars and have expertise in-car audio or a related field, this could be a great way to use your skills and turn them into a business. Here are the steps you’ll have to take if you want to start your own car audio business.
Examine the Playing Field
Before you look into setting up a business, you must check your local market to see if there’s even demand for car audio services in your area. If you live in a nice retirement community, chances are that it’s not the best market for you. You should also be aware of recent trends in your area, both in terms of audio and vehicles. If you’re in a pick-up/SUV town, then stocking up for Japanese mods won’t be the best idea.
Determine Your Scope of Service
Consider that you can choose to be only a retailer. This is still a way to make money, but you’ll be missing out if you don’t offer repair and installation services. Hiring is not always an option, but it is one you should consider if you notice a lot of demand.
If you have limited capital to start with, one option could be to focus primarily on repair and installation as well as offering small audio parts like amplifiers and transmitters. You can also save by checking out sites like Octopart, where you can compare electronic components such as tools, parts, and anything else you may need to repair car stereos. With this model, you could start your business with as little as $5,000 and expand your range of services later.
Choosing the Model
You’ll have the choice to either start your business from the ground up, acquire one, or join a franchise. All have their pros and cons. With a franchise, you benefit from brand name recognition and support. You may be limited in how you run your business, what equipment you’re allowed to sell, or how much you can charge, but it’s also the option with the most potential for success.
Starting from scratch is a bit more difficult, but has its advantages too. For one, you’ll have more control over your prices and margins. In addition, you’ll have more freedom as to where you can actually set up shop so you don’t end up infringing on someone else’s territory.
Another option is buying another business outright. One of the benefits of this is that you’ll already have the installations ready, and you may get some equipment as part of the deal. However, you will always be tied up to the old business, and you may find out that the location was just not good enough.
Starting a car audio business is a great way to capitalize on your passion and expertise, and it gives tons of possibilities. Whatever you do, make sure that you do your research and learn everything there is to know about the business before you make the jump.