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Starting a Small Business/Automobile tires manufacturing businesses.


Dear David

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

How much initial capital investment will be required for the startup?.

Thanks & Regards,
Prashant S Akerkar

I would personally NOT consider a business of manufacting automobile tires a good startup venture for many reasons:

1. The capital investment would be huge.  I have no idea what even a small plant would cost but it would certainly be more than a typical startup venture could hope to raise.

2. Most automobile tires are produced by large global companies who have a big advantage when it comes to economies of scale.  I can't imagine that a small startup could come close to matching the prices of the established leaders in the market.

3. The five largest tire companies (Bridgestone, Michelin, Goodyear, Continental, and Pirelli) have been producing tires for several generations with an established track record for testing and safety. Convincing a consumer to buy a new brand, particularly without a significant cost savings, would be very difficult.

4. The large tire companies spend tens of millions of dollars each year on advertising and promotion.  Getting any visibility in the market in the face of such mammoth marketing campaigns would be difficult.


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David K. Staub


I am a business and tax attorney and have spent more than 35 years assisting people in starting a wide variety of businesses. I can answer questions about the basic differences between the various entities available to new businesses, including limited liability companies, corporations, S corporations and partnerships. I can provide guidance in other areas facing start ups, such as hiring employees, signing contracts and obtaining necessary licenses. I can also direct people to sources for answers to specific legal questions which cannot be answered in a forum of this nature.


I have an extensive practice in the mergers and acquisitions area and have been involved in the tax and legal issues on hundreds of business transactions.

Staub Anderson LLC
Illinois business attorneys

Practice Areas
Business Organizations


-Joint ventures
Mergers & Acquisitions
-Buying/selling business
Securities Law
Tax Law
Technology Law
-Software licenses
-Development agreements


Illinois State Bar Association; Chicago Bar Association (former Chairman of the Corporation & Business Law Committee and former Chairman of the Mergers and Acquisitions Subcommittee; former Executive Committee member, Federal Tax Committee and Chairman of subcommittee on general tax issues); Keystone Foundation (Trustee); Association for Corporate Growth; Midwest Entrepreneur Forum; Midwest Association of Alpha Delta Phi

Commerce Magazine; YLS Journal; ISBA Section of Taxation Newsletter

Harvard Law School, J.D., 1977; University of Illinois, B.S. in Accounting, with highest honors, 1974

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