Car Finder
This is a business that a friend of mine used to talk about all the time. Hew was from the USA and used to tell stories of an ex-girlfriend who had a business where people would order certain cars with a limited specification, or maybe from a classic era, and she would go out and find the car.
What I like about it is the simplicity of the business model. She spends time looking for something the length and breadth of the country for people who don't have the time to do so. The buyer is usually older and buying their dream car, usually a piece of nostalgia and often in the colour, or spec that they dreamed of as a youngster when they couldn't afford the car in question. In other words the price is flexible.
There are some logistics that you need to think through, whether you are in a small geography like Hong Kong or a huge one like the USA or Canada. How do you plan to get the cars from A to B when you find them? You certainly won't want to ship them by road, rail or air until you are sure of their quality. When they get to you, do you have somewhere safe to store them? Can you get insurance to cover you and your customers for test driving these cars? What will you do when some of your customers change their minds?
In addition there are spin off businesses such as selling warrantees, which can be a very profitable business in itself, or refitting/rebuilding a wreck to meet your customer's dream. Before you worry about additional income streams though, you will need to attract buyers, and understand how to do your research when an order comes in.
With regard to attracting buyers we would suggest the following methods: -
Network
Use targeted classified ads
Journalism
Build a website
Networking in this case is probably not to do with your friends, family or colleagues; although they should all know what you are doing simply from your enthusiasm. You need to build a targeted network by joining social clubs such as golf clubs, and sailing clubs where you are likely to meet people with a bit of money and a dream. You should also attend polo matches, horse races and other events where you can do some "hob nobbing" and hand out a few business cards. If you make an impression these are the people that you want telling their friends, family and colleagues about you.
Whilst you are attending various events try to get on mailing lists for future events, build a calendar of things to attend and even if you can't go consider sponsoring an advert in the program, or some other form of in-event advertising, which will get right in front of your ideal customer segment. Other advertising options include related publications such as Country Life, Town and Country, any sailing magazine, high end car and classic car magazines. These may have smaller circulations than some other publications and may well be cheaper to advertise in as a result. You don't need a big expensive advert, just a small text based ad in the classifieds.
If you can get a couple of deals and have a story to tell about how you found a certain vehicle then you should write a piece for your local newspaper, and try to get your local radio station interested in interviewing you. People will remember a good story even if they don't specifically remember your contact details. The radio station, newspaper etc will usually help potential customers to find you if you have given them useful materials for free. You can also write articles an submit them on the internet if you plan on having a website.
We believe that all businesses should have a website, especially if you can target a local market as opposed to a national or global one. The chances are that you can source vehicles from far and wide, but delivering them long distance is likely to provide an equal number of challenges, why double your workload when you are starting out. You don't need to spend a lot of money on site design, or functionality. Focus instead on building a footprint on the internet, get yourself noticed as widely as possible on the appropriate websites for your likely customers. That may include seniors' sites as well as sites relating to the social past times suggested above. Often writing and asking for a link on another site will get you some traffic and potentially some customers. Focus on sites that are local as much as possible so that you are attracting customers who you are able to service.
Let's assume you get a customer, they want a 1960's Kharman Ghia, or a 1950's Morris Minor with a split windscreen. Neither car is particularly rare and thus does not retail at crazy prices. This may not be the glamour industry that you thought it was, but then if your first order was a pre-war Bugatti worth millions what are the chances that you could actually source one?
You can search auto-trader and similar sites to find out what is available, and contact owners directly with an offer contingent upon condition and acceptance by your client. Call them and explain your business and make it clear that they stand to get a better price from you than from the general market but that it might take a few days longer to sell because you are a middle man. Many sellers will be happy to wait and try to secure a better price this way.
Another way to find just the right car is to start building a network of garages in major cities that are close to where your business runs. You only need 1 or 2 garages in each city, and you will want to talk to the floor manager or even someone more junior (i.e. hungry). Offer them $100 every time they help you source a car, you agree to call them or email them whichever works best for them with precise specs every time you take an order. If they find the car that sells to your buyer you will pay them the money.
If you cannot find the exact car that your buyer wants you may want to present them with a list of the closest options. Many buyers will accept a different specification, or even colour even though they are very specific about it when they place the order.
In essence this business is like being a realtor, only with cars. You will find more and more reliable sources of vehicles as you gain experience. Keep your business cards handy as you may want to stick them under special cars windscreen wipers when you see them. There are after all some cars that you can always find a buyer for.
This is a great business, as you get to hand people their dreams, and maybe drive some fun cars to boot.
You do not need to do this with cars, it will work equally well for boats, guns and other luxury items. Make sure you specialise and know your subject though. If people are paying a premium they do not want to work with a jack of all trades.
You need to be upfront with your customers that they will pay over book price by using your services. This is because of the way that you source the cars, and the cost of your time. Don't allow any haggling at the point where the sale goes through, your price is the price or there is no deal.
Never let the seller and the buyer talk directly. It sounds obvious but a lot of customers will try all sorts of tricks for wanting to talk to the current owner and then cut you out of the deal.