It's a dream come true for someone who loves motorcycles.Making a business out of it is hard work, but starting your own shop is rewarding.If you are a dealer, you can either start a franchise with a popular brand such as Harley- Davidson or start your own shop with new and used motorcycles.You can become a motorcycle dealer with proper financing, a good location, contact with a franchisor, and business knowledge.
Step 1: Work with motorcycles.
You need to know everything about motorcycles to run a good business.All makes and models of bikes have problems, how they differ from each other, and how to fix them.You have to convince people that you know motorcycles.Take care of the bike.You can learn the parts and perform maintenance.You can take automotive classes online.Make sure the curriculum includes motorcycles.Take a ride in a motorcycle shop.They will let you handle the motorcycles if you work small jobs.
Step 2: Gain experience.
It is not enough to know about your product.Maintaining a business is part of a dealership.Leadership and business management capabilities are what investors and brand manufacturers look for.How to manage workers and please customers are some aspects of running a business.Basic business skills can be learned through online courses and local schools.You can observe the workings of a motorcycle shop.Paying attention to how they operate, dealing with issues ranging from proper business licensing to charging properly for parts.
Step 3: Do a survey of your market.
It is important for you to know the area where you will set up shop and how to make your dealership successful in order to appeal to investors.Determine how in-demand a motorcycle dealer will be.Stay far away from competitors and stay in an area where business will be strong.Knowing how present the brand is in your market and how people respond to it is important for carrying a brand line.If the brand isn't established there, you should come up with ways to sell it.
Step 4: Make a business plan.
Your company will be outlined in your business plan.All of your important business information is gathered in the plan.The goals of your company are what you should focus on.You should include your company's management structure and why you are a good candidate to open a dealership.Explain how much money you need to start the dealership and how you will make money.Business plans often include a company overview section that includes products, target market, sales plans, a management team section, and a financial plan section.The plan should be clear and concise.You have a clear path to success that investors like to see.Don't let your plan be static.Refer back to it as you operate your business and use it to keep your goals clear.
Step 5: Take the first step by filling out a preliminary application.
To open a franchise of a major brand such as Harley- Davidson or Indian Motorcycles, start by visiting their website and submitting their application.The prospective application will get you in touch with one of their representatives who will discuss your qualifications.The prospective dealer application has to be filled out by anyone buying an existing dealership.
Step 6: The necessary finances need to be gathered.
A minimum amount of financial capital is required in order to ensure standard business practices that will make you successful as a dealer and protect the brand's image.Money for internal operating expenses such as parts, uniforms, and management systems have to be considered, along with facility and labor costs.Bank loans, acquaintances, and investors are some of the sources of this money.A credit line from a bank is the most reliable source of funding.Before they lend you money, they will check your credit, cash flow, and business plan.It is difficult to find investors.If you talk to people online or offline who share your passion, you can pitch your franchise to someone who believes in it.Polaris requires a minimum investment of $150,000 to $200,000 and a credit line of $500,000.
Step 7: Go to a location.
A lot of space is required to run a franchise.Big, visible buildings are required for brands such as Yamaha.You will need to find a place with a lot of foot traffic.The brand name will be displayed prominently on the outside of the building, as well as offering enough space for your business operations and a showroom.For example, Yamaha wants 10,000 square feet of space for a unit display, 750 for accessories, 700 for parts, and 1,000 for the service department.
Step 8: You should sign the contract.
If you are buying an existing franchise, your information may be verified and approved after you have spoken to the dealer representatives and sellers.You can sign the contract once you get your business license from the government.
Step 9: Hire employees.
A small motorcycle shop can operate with the owner alone and possibly family and friends, but a big dealership will need a lot of people to perform different roles, such as sales and operations.Interview employees with good work ethic and motorcycle knowledge.You may need to report your hirings and verify them for tax purposes if you have employee insurance.
Step 10: You need a business license.
To find out what documentation you need to submit, consult with your local government officials.Information about your business will be required by the state, such as how much product you sell, your property ownership or lease information, sales tax ID, worker's compensation insurance, and so on.In New York, once your application is processed, you have to schedule an inspection of your facility and keep a sign showing your business as a dealership.
Step 11: A small shop can be found.
For a business that repairs motorcycles, sells used ones, or stocks new ones without a franchise, you don't need as much space as a brand dealership.You can find a place that suits you.This will be a small storefront with a garage to work on motorcycles.Vehicles left outside suffer environmental damage over time, so find a place where you can limit your exposure.
Step 12: You need to calculate your business costs.
$10,000 to $50,000 is often enough to get the business up and running, but you will need to factor in additional expenses such as advertising, shipping, employees, and specialized tools.You have to figure out how to keep your business profitable in the long run.Save enough to last a year.It can take some time for the business to make money.
Step 13: Funding should be gathered.
It may be possible to get a lot of the financing from friends and family, because small shops need less funding to start.Many potential small business owners will need loans from the bank or venture capitalists.Search out small business loans, equity financing, or convince someone that your idea is solid and you have the experience with motorcycles and business to make your business a success.If you have good credit, debt financing can be a good idea.You don't have to share ownership of your business with the bank.There is a chance that you will meet someone who believes in your business plan or will share your expenses with you.
Step 14: Proper licensing is needed.
To find out what kind of license you need to sell motorcycles, speak to your local government.Proper documentation and background checks are required to see if your business practice is ethical.You will have to pay fees and wait months for the application to be approved.You need to complete a training program and pass a test in order to get a business license in California.
Step 15: You should build your inventory.
You need to stock your business with product now that it's up and running.It is up to you how to fill your store, but franchise dealerships have the benefit of displaying the official brand.Combine a range of products with what the customers want by using your motorcycle and customer knowledge.You can buy used bikes from people in the community.Find the phone number or e-mail of the brand headquarters if you want to carry a new bike.Ask them how you can place an order.Motorcycle parts and accessories can be ordered as well.To make a profit, mark the price up.