Imagine yourself standing on the well-polished floor of an automobile showroom. Around you are several different models of Harley Davidsons, Ducattis, Suzukis, Kawasakis, Hondas, and BMWs. The place is filled with starry-eyed customers and charismatic salesmen ready to make their dreams come true.
This is the dream of every motorcycle shop owner. You are your own boss, you hire extra hands if you’d like to take time off, and you’re in the niche of your choice. It sounds like opening your own business is worth it. But how do you go about it? How do you get from where you are to this nirvana? This article gives some tips.
A motorcycle shop business engages in the exchange of goods and services, and all businesses require a plan. The following are some tips to help you start your very own motorcycle shop.
Form a comprehensive business plan
Plan the size and scale of your business. The median age of motorcycle owners has gone up from 40-48 since 2001, so you should know who you will sell to. You also need to consider whether you will open a garage only, or will you include sales of new and refurbished models.
Additionally, You’ll need reliable suppliers, either the manufacturers themselves for new models, or a good spare part vendor like Chaparral Motorsports that sells Polaris OEM parts.
You will also need to think about other forms of revenue. Some shops offer riding lessons as either an upsale or a promotion. Customer traffic has been known to increase with the inclusion of extra, out-of-the-box services.
Your store should be located in areas with significant biker population. Three states with high biker population include California, Florida, and Texas.
This involves getting registered as a business owner and registering your new company.
You should consider getting incorporated. This helps protect you, to some degree, from personal loss. After getting incorporated, you should open a business account and a business line of credit. Be sure not to mix personal and business assets.
Additionally, you should also get licensed. Different states require aspiring dealers to obtain various licenses before they can commence operations. Some states require you take out a surety while some require other things. Find out your state’s requirements.
An EIN is an employer identification number, also called a Federal Tax Identification Number, and it is used to identify business entities for the purpose of tax collection and reporting. You will also need one if you plan to hire employees.
Set up shop
There are things you need to take into account when setting up your space. If you plan to fix motorcycles only, then you can work out of a garage. But if you plan to sell models you’ll need to lease a space. State laws usually have requirements for spaces leased, find out what they are for your state.
If you plan to sell new or refurbished models, you will need a showroom. That’s extra space that’ll cost a bit more, and this should be factored into your startup costs. On the other hand, you could get an online showroom, on your website, where customers choose the model they want and come pick it up at your store.
Find out the cost of furniture, electricity, plumbing, and other utilities, and factor that into your budget. Once you figure out how much you have left, consider using whatever you have left on nonessential items. These would be great additions to your shop, like a television or a sound system to play groovy tunes or even commercial steel doors.
Consider all these tips to help up your store. Once you cover all the legal and construction aspects, you can then concentrate on