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Managing a Business/Automobile tires manufacturing business.

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Question
QUESTION: Dear Brian

Can you consider Automobile tire manufacturing business as a good startup venture?.

How much initial capital investment may be required for this business?.

Thanks
Prashant

ANSWER: Again specific planning is needed to know what the market is. This business where I come from is a highly competitive market with much price and import competition. The question is what is the situation in the locality.

Factors to be taken into account

what segment are you operating in?;
cars, trucks, agricultural, all?
are you retreading or repairing tyres?
I don't know the price of a tyre in your market but an investment in stock could be $100,000, more if premium brands or truck tyres, etc are stocked. equipment depending on whether you are going to rely on technology or manual labour $20,000 -
Building, you choose how big it is or if it is a rental but not cheap

Prashant it is no use asking me what are apparently assignment questions without context I don't know how long that piece of string is



---------- FOLLOW-UP ----------

QUESTION: Dear Brian

Thanks.

Can we extend to aircraft tire manufacturing apart from two,three and four wheeler automobile tire manufacturing business?.

Thanks
Prashant

Answer
the business you envisage may cover all aspects of the industry however the skills and equipment needed to construct tyres for each segment may differ. Depeending upon the aircraft aircraft tyres operate under great stress and heat. Tyres are of their nature a single product designed for a specific use, they are bulky to transport and store. as I see it the segments are; equipment, bicycle, car, SUV, motor bike, truck, agriculture, extractive industires, aircraft, military and ATV

Managing a Business

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Brian Thompson

Expertise

My expertise extends to general management, financial management, corporate govenance and everyday managerial problem solving

Experience

I have in excess of 30 years experience in the management of public and private organisations

Publications
Revival ~ a different perspective

Education/Credentials
B.Bus. FCPA, FCIS

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