Sports & Recreation, Trades

How To Set Up A Motorcycle Shop | My Motorcycle Repair Shop

Ride Into The Future

Motorcycle dealers and enthusiasts know that motorcycles attract the most in the world of two wheels. The culture of two wheels and the open road fascinates an entire subsection of the population and brings together many enthusiasts worldwide. Opening a motorcycle shop, a motorcycle repair shop, or even a moped shop means meeting sales, maintenance, and repair obligations. The market for new motorcycles and scooters continues to grow, with users looking for an alternative to the car or public transport. More and more enthusiasts become involved every year. This sector is booming, with an increase in sales of around 7.6% for 125cc motorcycles and nearly 6.4% for scooters alone last year!

Build A Motorcycle Shop

Over 8.3 million motorcycle riders are registered in the US, and close to 14 million motorbikes on the roads. The numbers keep on increasing each year. Americans have always loved their motorcycles. They use them primarily for leisure travel plus basic transportation. Unfortunately, motorbikes, like cars, also break down frequently. Almost every bike owner has experienced some kind of mechanical malfunction at some point that required a motorcycle repair shop to fix. There is always new business for people who operate a motorcycle shop, so rest assured that they will come if you can open your doors.

There are numerous custom motorcycle shops around the country specializing in newly built choppers and custom-made road bikes; some have even become cultural phenoms with their own reality tv shows, and some are just, well, not so great. There is always room for experienced people who know what they are doing in this industry, so for those considering opening a motorcycle shop, read on for some practical tips

An Efficient Alternative To The Car Or Public Transport

Two-wheeled vehicles (motorcycles, scooters, bicycles, etc.) are attracting more and more buyers because of their convenience. These machines make it possible to move more efficiently in town, and on the highway, without dealing with problematic traffic jams. They are, therefore, an effective alternative to cars or public transport.

Is There A Demand For A Motorcycle Shop?

Before opening a motorcycle shop, find out if there is local demand. For example, if you live in a small town with just a few motorbikes, there may not be enough demand for your motorcycle shop. If you plan to open a shop in the inner city, go online and search for motorcycle shops and what types of services they offer. Speak to other professionals in the industry to determine what kind of need exists and how you can meet the demand. If you have only owned a bike but have no business experience, spend time in a motorcycle shop as an apprentice, and learn the business’s practical aspects.

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Motorcycle Dealership Or Motorcycle Repair Shop?

Do you want to open a general repair shop or specialize in servicing only one motorcycle brand? Today, there is a significant demand for technicians who do general repairs—specializing in just one brand of motorbike will limit your customer base. You may have to collaborate with the manufacturer of your chosen brand for parts and supplies. Some manufacturers prefer to do their own repairs, making it difficult for private shops to repair their brands.

Buy An Existing Motorcycle Shop

Rather than open a new motorcycle shop, determine if there is an existing shop for sale. The advantages of purchasing an established store include;

The shop is already running
Technicians and employees already trained
No marketing needed
Customer-based already established

However, it would be best to investigate why the shop is for sale, its profitability, reputation, and any other issues. Have an accountant look over the finances from the past two years. You should physically visit the store and determine for yourself if it is busy and how popular it is with people in the neighborhood. An existing shop and the inventory can cost as much as $200K.

Here is a list of services advertising businesses for sale

The Role Of A Motorcycle Dealer

Above all, it is essential to know what a motorcycle dealer does before adopting it as a profession. Although a dealership is an independent trader who sells motorcycles, they are usually bound by a contract with a manufacturer – called a grantor. This contract ensures the marketing of vehicles from a specific brand for a fixed period. At the end of this period, it is best to prepare for the contract to be renewed or terminated.

Opening a motorcycle dealership is a business with multiple constraints. However, it also has its advantages. Apart from being able to sell a particular brand’s products exclusively, you can also avoid competition. Indeed, the risk that another company moves in to offer the same brand near you is not likely. Note that the concessionaire may provide other services. These include the repair and maintenance of two-wheeled vehicles, the sale of used motorcycles, and the distribution of spare parts.

Bike Shop Business Plan

If you have decided to open a general repair motorcycle shop, it is essential to make a business plan. That plan will help provide more insight into the business and anticipate future problems. The business plan should contain the following:

Where will I open my business?
How many people will I employ?
Do I need a license or permit to run a motorcycle shop?
Do I need insurance?
Where will I get funding?
What are the pros and cons of opening a motorcycle shop?
Is the business profitable?

There are some handy services available online

Some business plan templates that you should consider include:

Motorcycle Shop Licenses And Permits

Running a motorcycle business will require a license and a permit. Each state has its own fee structure.

You will also need the following.

EIN
Register for state and federal taxes
Open a dedicated bank account

Here are some legal resources for a motorcycle shop

Bike Shop Legal Entity

Creating a legal entity to protect yourself and your business is crucial when you offer public services. For example, you may repair a motorbike. Later, if the rider has an accident because the brakes failed, rest assured you will have a lawsuit on your hands. So creating a corporation or a limited liability company is a good idea. This will protect your assets from the business.
You’ll need workers’ compensation insurance if you hire more than two employees.
It would be best to get general business insurance to protect your store from theft, vandalism, or fire.

Check out these few companies that can assist you in getting your LLC started.

Here are a few government links you might want to visit

IRS Website

This site by the IRS is a must-see when beginning your LLC

Funding For My Motorcycle Business

A motorcycle repair shop is considered a stable and low-risk endeavor; therefore, some banks are willing to give out loans. However, at the same time, you will need to have a good credit score, at least a 20% down payment, and a solid business plan. Small business loans are also available, but the money loan is usually less than $20K.

You may also try crowdfunding or try and get a loan from family and friends.

Here are a few of your options for funding your shop

Small Business Administration

The Sma ll Business Administration, SBA has a program to fund new startups, and is worth a look.

What Are The Startup Costs For A Motorcycle Shop?

The startup costs depend on many things, including the following.

Inventory- the most significant expense
Lease
Repair tools
Motorcycles
Shelves, cabinets
Office furniture
Insurance
Utilities
Legal and accounting fees
Phones
Computer
Wifi
Security system

The tools alone can cost between $15,000 and $20,000. Experts suggest that even the smallest startup will cost anywhere from $50K- to $75K.

Know The Rules

Every city has strict laws that govern the motorcycle repair business. Besides the zoning laws, there are also limits on noise, pollution, oil disposal, and other heavy equipment ordinances.

Becoming A Motorsports Dealer

When opening a motorbike store, you will have the option to work with a licensor. It is essential to select products that could attract consumers to your area. Carrying out a market study, therefore, becomes a necessary step. Analyze the market for two-wheeled vehicles, considering local trends and their evolution.

The next step is to determine the concept of the business. Do you plan to connect with several brands or promote with a single licensor? Diversification could be beneficial for your business. There is nothing more helpful than a trader who can offer his customers various products. But we still have to convince each grantor. This process promises to be complicated, especially if you target renowned manufacturers like Harley-Davidson. The candidates are numerous, and the licensors often impose rigorous selection criteria.

More Than Motorcycle Repair

A significant number of more experienced motorcycle shop owners are self-taught. However, recent generations may have acquired formal training from manufacturers. You can still run a motorcycle shop just as a business person by hiring a sound technician. Running a motorcycle repair shop involves much more than fixing brakes and broken lights. It also involves selling motorcycle accessories like gloves, leather garments, sun visors, helmets, etc. Further, a good part of the business is selling and installing accessories to improve the motorcycle’s aesthetics and performance.

Marketing My Motorcycle Shop

When you first start, you will need to market your motorcycle shop. You can begin marketing in the following ways:

Create a webpage detail your services, products, and accessories. Publish your location and contact information
Distribute flyers in the community
Hand out business cards at dealerships, sports venues, and motorbikes races
Create a youtube video of your store and what you repair
Join motorcycle forums online

If you have good hands and knowledge and run a tight ship, your customers will soon spread the word, and you will not need so much long-term marketing.

Build Your Motorcycle Store Website

Your bike shop domain name protects your website address. You can register a domain name with any hosting company.

Some of the common domain registrars include:

Here is a list of some options for building a regular website.

Here is a list of drag-and-drop page builders for WordPress.

Selling Used Bikes

Besides just repairing bikes, another way to increase traffic to your store is to sell used and refurbished bikes. You may be able to pick up some decent bikes at auctions, fix them up and sell them off. Many of your customers may want to trade their old bikes into you at a low price. With a little bit of refurbishing, you can improve the aesthetics and sell them at a higher price.

Motorcycle Shop Location

Setting up a motorcycle shop means looking for a specific location. Not only do you need a place to repair the motorbikes, but you’ll need a showroom for your inventory and other accessories. You also need access to a big parking lot to run test the motorbikes.

Here is a list of some popular commercial real estate companies:

Bike Store Employees

The motorcycle business is demanding; it takes hard work to succeed. Select employees who have the same vision as you. Don’t just hire friends and family, but choose knowledgeable, skilled, and hard-working people.

Your Workplace Requirements

Keep your workshop separate from your main office as you do not want your customers to see dirt, oil, and grime.
Ensure the repair area is well-heated, has ample lighting, and is well-ventilated.
Have ample space dedicated to the storage of your tools
Build multiple repair work stands for the bikes
Have a sturdy workbench
Have the necessary tools for repair, including a Vise, wrench, screwdrivers, pressure measurement devices, oil gauges, etc
Trash can for oil and grease.
Personal protection equipment like gloves, eye goggles, facemasks, and boots

Boosting Shop Profits

Repairing motorbikes offers a decent income, but we recommend selling used motorbikes and accessories to boost revenue. Things that you can sell include:

Motorcycle apparel
Boots
Protective garments
Gloves
Helmets
Visors
Jackets
Knee guards
Crash protection accessories
Ear protection
Bluetooth for communication
Motorcycle bags
Garmin with camera
Backpacks
Alarms
Locks
Anti-theft devices
LED headlights
Windshield
Exhaust heat wrap roll
Handlebar mount
Seat protector
Outdoor gear
Flashlight
Tires
Stand
Toolset
Motorcycle cover

Keep In Touch With Your Customers

Every time you deal with your customers, ask them for their contact information and keep in touch with them. Send out flyers about new items in your store and any discounts you offer.

Offering a 10% discount on the next oil change
A free bike wash with a purchase of over $40
Free tire installation with purchase
20% discount on a tuneup

Conclusion

Running a motorcycle shop is not easy, but it will pay off if you put in the effort. Bikers always look for a reliable workshop to deal with their common motorcycle problems. Because of high overhead, your net profits tend to be lower, but the work is satisfying, and you’ll meet people from all walks of life.