Thing Every Tyre Shop Owner Must Do (But Most Don’t)

Running a tyre shop might seem straightforward, stock tyres, fix cars, keep customers happy, repeat. But if you're treating your shop like a job instead of a business, you’re leaving money, growth, and long-term success on the table.

So, what’s the one thing every tyre shop owner whether brand new or 20 years in needs to do?

Write (and Execute) a Business Plan.

Seems obvious, right? But you’d be surprised how many tyre retailers either never write a business plan, or worse write one and never look at it again.

Here’s why that’s a huge problem

1. Without a Plan, You’re Guessing

In a business with tight margins, seasonality, and rising supplier costs, operating without a clear plan is like doing wheel alignments blindfolded. A solid business plan helps you:

• Set financial goals (sales, profit margins, expenses)
• Prepare for slow seasons or economic downturns
• Forecast your growth (new bays, more staff, marketing)
• Stay focused instead of putting out fires daily

2. Budget Like Your Business Depends On It (Because It Does)

One of the most overlooked parts of a tyre business plan is a detailed expense budget.

Here's a simplified monthly example for a small-to-mid-size tyre shop:

Without these numbers laid out, how can you know if your sales target is high enough? Which brings us to…

3. Set a Gross Profit % Target and Stick to It

Your gross profit is the difference between what you sell your tyres services for, and what they cost you.

Target Gross Profit: 45-55%

Here’s what that looks like:

• You buy a tyre for $100
• You sell it (installed) for $180
• Your gross profit is $80 → 44% margin

Many tyre shop owners underprice their services out of fear they'll lose customers—but if you're not hitting your margin targets, you’re working hard for almost nothing.

4. Know Your Sales Target

Let’s say your monthly overhead is $44,200 (from above), and you’re targeting a 50% gross profit margin.

To break even:

• You need to generate $88,400 in sales per month (because 50% of that is $44,200 in gross profit)

But breaking even isn’t the goal—profit is. Add your desired profit to the target.

Want to take home $10,000/month? You’ll need:

• $44,200 (expenses) + $10,000 (profit) = $54,200
• Then divide by 0.5 (gross margin) = $108,400 in sales/month

See how numbers clarify the path?

5. Execution is Where It Happens

A plan sitting in a drawer helps no one. Review your business plan monthly. Track your:

• Sales
• Profit margins
• Expenses vs. budget
• Customer count
• Top-selling products/services

Update it quarterly. Adjust for slow months or unexpected expenses. Use it to make smart decisions—like when to hire, expand, or raise prices.

Final Thoughts

You wouldn’t fit a tyre without balancing it. So why run a tyre business without planning it?

Write a business plan. Execute it. Track your numbers. Adjust as you grow.
That’s how good shops become great ones.