This content was created by Mike Melton. This content was uploaded by Mike Melton. This is a YouTube video titled "January 1, 2026" featuring Mike Melton discussing the costs and considerations involved in starting a tire company, including expenses for leasing equipment, hiring employees, and managing inventory.
What does it cost to start a tire company? Number one, you got to find you a building. Whether you buy the building or you rent the building. So let's say you're buying it or you're renting it and your mortgage or Your rent's between 2 to $5,000 a month. It could be higher, could be a little lower. In between, you're going to want to lease one tire machine and one balancer and also an air compressor. And you can lease every one of these. You don't have to kick out all the money at one time. So you're like, oh, well, I can't afford the road force balancer. Well, you don't have to afford it all at one time. Lease it. So that'll cost you around $600 to lease all that equipment, 6 to $700 to lease that every month. You're going to want to start off with at least one employee. So I recommend to find you somebody that's good or that's coachable and trainable to where you can coach them and train them your way. The right way. It has to be the right way or it's. Or you're going to have chaos in your company. You're going to want to pay them at least a thousand dollars a week to find you a good person. At least a thousand a week. You're going to need you a computer, a printer, and you're going to need a software that's for the tire and automotive industry. That's usually around three grand. Now, inventory. So you don't have to keep a lot of inventory like I do. So you can keep, I say keep your top 10 sizes, right? So top 10 sizes. It'll cost you around $5,000 to stock that inventory. And you don't have to have a lot of inventory. And the reason being is cause there's a lot of distributors that will deliver tires. Not just once a day, twice a day for you. You're going to need insurance. Make sure it's good insurance. If you're not sure what insurance company to use. DME. I'll let you know who I use. That's around $600 a month. Now you're going to have miscellaneous expenses like power, all kind of different, different miscellaneous expenses. This is around a thousand a month. Now you're going to want to get tools. So it's going to be like your, you know, you're going to lead at least one impact. You know, your socket, stuff like that. So let's say your tools are going to cost you around two grand. Fixed cost every month should be around $11,200 and then your one time expenses is around $10,000. So to open up your first month you're going to be around $21,200 to open up your first month. Now I know those guys can be going there oh man I can do it way cheaper this and that. I'm going to tell you this is the bottom dollar that I would do you yes you can go around and buy you some cheaper equipment and stuff like that and listen you're going to get what you pay for hands down. I've done this for 37 years. I know this business like the back of my hand. Listen to somebody who's built multimillion dollar companies not just one multiple companies. Don't listen to some of these haters in the comments saying oh man I can do this, you can do that, you can do a bubble bouncer. Da da da. Don't listen to these fucking idiots.
