Popular hobbies related to motoring include restoration, and also buying and selling vehicles. Even those who just enjoy owning and driving cars, even have the opportunity to set up a chauffeur company. The main advantage of turning a leisure activity into a career is fun! It is more likely enjoy it. You have tested the water, by choosing to do this in your free time, you must like it!
For someone who chooses to work with motors in their leisure time, there is an appeal beyond financial. This is likely to make day-to-day operations more pleasurable! But is it all pros? We look at key considerations to assess before jumping in and evolving an interest into a part time motor trade company.
There will be increased administration.
This is an inevitable part of running an enterprise. From balancing to books, to getting the right insurance coverage, expect more on your things-to-do list.
Trade insurance will be necessary, even if you are only trading part time. Some people do choose to insure their pursuits, as even fun and relaxation can present risk. Automotive hobbyists, wisely check that that house insurance covers the value of tools in the garage. But when selling for profit there are other insurance considerations. These are designed to protect you and your customer. E.g. when you are selling a car, you want to guarantee your car is protected when a customer test drives. If you are performing repairs, it is important to have limited liability coverage. This will protect you in case of a law suit, for example if an accident happens following the renovation.
As well as talking to a broker about the types of insurances, it would be wise to talk to an accountant and get advice over tax returns etc.
Will It be profitable?
It is important to conduct market research in order to understand if your hobby will be profitable. When you transform it into an offering in the marketplace, will you be able to compete with more established vendors. When it comes to a hobby, time does not need to correlate with money, this mindset needs to change quickly when growing it into an enterprise.
The motor trade in the UK is fiercely competitive and Questions you will need to ask include: How competitive are your operations locally/nationally? What type of customers will I reach? How will I market this business? Should I focus on a particular niche?
Guiding yourself through this process is called a business plan. There are lots of great resources online for those who want to start a business online. One example is a ‘how-to-guide’ provided by the UK government. By following a guide like this a potential motortrader will be more meticulous in their planning. It will give practical steps on what to do, such as looking at the market outlook and much more.
Will I still enjoy it?
Sustained enjoyment must be considered. When something is a non competitive activity there is less pressure than when you have a customer’s expectations to meet. You will also be faced with financial targets . This added pressure can be stressful for an entrepreneur who is previously used to receiving a regular income from his or her employer.
Although there are many considerations, there are plenty of reasons to make the leap. As long as you are excited by the prospect of working hard, and motivated to realise their aspirations the outlook is optimistic.
