How to Start a Motorcycle Dealership
If you admire motorcycles and are looking forward to starting your own business venture, a motorcycle dealership might be the thing for you. Regardless of whether you want to deal in spare parts or run a full-fledged dealership, a vital part of achieving success in such a business is the ability to relate to the bike subculture and appreciate the beauty of the machines you sell.
Like any other business, selling bikes require obtaining permits and selecting the ideal space to set up the business. First things first, set up a detailed plan for your motorcycle dealership business. The plan helps you fix your business goals and the measures to be taken to achieve them. The business plan also helps you to review everything at one go such as your proposition, marketing assumptions, operational plan, financial plan and staffing plan. A detailed business plan also becomes a baseline for monitoring your progress, often the business plan is required in order to apply for financing.
To run a good motorcycle dealership, you need to know everything about these machines. Do a detailed research about all makes and models of bikes, their problems and how they differ from each other. You would also need to survey the market in order to appeal investors for financing.
The next step is to find a location. Try to establish your dealership at a busy road or junction with plenty of space for the motorcycles. You should contact Melbourne property lawyers to take care of issuing all the permits of the property and license for your motorcycle dealership. Contrary to car dealership owners, you may not want to showcase your bikes in the parking area. Since the condition of the motorbikes can deteriorate outside, you should only keep bikes outside for short periods when weather permits.
Calculate the total start up cost of your business. A number of factors influence this analysis, such as the location, size and nature of your business. According to the experts, if you want to open a small motorcycle business, it is advisable to arrange for an amount between $20,000 and $50,000 from a financial institution. In case you want to start a motorcycle dealership with multiple brands, the cost is bound to go up.
Next, obtain the necessary licensing, permits and insurance to establish a dealership for selling motorcycles. Depending on your area you may need a general business permit as well as a license to run your motorcycle dealership. You need to fill in a lot of application forms such as vehicle dealer’s license form, the surety bond of vehicles, zoning approval form, power of attorney, proof of worker’s compensation coverage, trader’s license, business registration letter and a lot of different certification forms.
Contact the manufacturer of the brand you wish to sell. Discuss the warranty options, shipping fees and bills of sale regarding customs. Do a survey and inquire about each manufacturer’s requirements, their minimum purchasing orders and necessary liquidity. Also, check the floor space you need for the bikes and how much more may be required for additional brands.
To venture into motorcycle dealership business you need to determine the factors given above.