Starting a motorcycle shop--like any other business--can be extremely stressful and difficult. However, it has lucrative benefits with strong business and financial plans. Here are 7 steps to helping you start up your own shop and become a Motorcycle Dealer.
Step 1
Register Your business. You must obtain a business license, register for taxes, and follow all requirements of the Department of Highway Safety and Motor Vehicles. These are some prerequisites (depending on your state) for obtaining an auto dealer permit.
Step 2
Strong Business and Financial Plan. As with any business, you need a solid business plan that details every aspect of your shop, ranging from expenses to marketing. You also need a sound financial plan in order to obtain loans and gauge cost expenses for inventory, staff, mechanics and parts.
Contact the Manufacturer. You must arrange who you will be purchasing inventory, equipment and orders from. Discuss warranty options, shipping fees and bills of sale regarding customs. Also ask about each manufacturer's requirements in terms of minimum purchasing orders and necessary liquidity. Keep in mind how much floor space you will need for bikes and other inventory.
Step 4
Market Your Shop. 8 out of 10 small businesses fail in the first year. Why? Marketing is a major factor that can determine your motorcycle shop's success. Your shop will need exposure and advertisements via print, online, and word-of-mouth. Communicate your mission, products and services to offer unique value to your customers.
Step 5
Hire Staff. Selected qualified and knowledgeable dealers and mechanics may be a challenge. They should have product knowledge, preferably a background in sales, and understanding of how the business works (products offered, financing options, brands, etc).
Stock Up Inventory. Whether you are planning on a small or large shop, you will need all the necessary purchases, such as parts, motorcycle gear, and custom orders. Most shops start off as a small business so they must budget smart and not overstock their inventory.
Step 7
Get a Surety Bond For Your Motorcycle Dealership. Not only do states often requires this to obtain a business license, but it also protects your customers from their purchases and contracts. Your establishment will be much more trusted among clients with a Motorcycle Dealer Bond.
Ashton Agency has helped thousands of auto and motorcycle dealers nationwide to get their dealer bond and garage liability insurance at the best rates. Call (800) 451-4854 (East of the Mississippi) or (800) 452-2663 (West) to speak to one of our helpful customer service representatives to assist you with your bond today!
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