Start a moto/atv shop?

Twisties

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In a small isolated community? Population about 15,000. Lots of rural properties and hunting. On a popular year round motorcycle touring route. Two similar size neighboring communities also isolated and this would be by far the nearest shop for all three. At present there is no shop in the area and folk go 2.5 hours for sales/service/gear.

How to judge market?
Dealership or independent?
If dealer, which one?

How to begin? Small, service and consignment sales only, or bigger? Nice or bare bones?
How much $$$$ needed to do this?
 

eemsreno

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Need a partner? OH I would probably be out riding all the time and not do any work. :D :D
 

oregon-rider

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I live in a county of 5000 people and the shop where my son works does fine. They sell Honda and Yamaha brands . We are a farm community so they sell a ton of four wheelers and have a large Yamaha snowmobile business . The nearest other dealers are two hours away. They were one of the first Yamaha shops to turbo the new four stroke sleds. They sell at a low price and do a ton of service work. Hope you can get a shop going ::021::
 

jajpko

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I would want to know the average age of the people in the 3 towns, as well as the average wage. Do most people own their homes and how are the schools doing?
Are the local banks loaning money for toys?

From what I have gleaned from my dealer, the cost is around a million dollars just to have a small dealership and one major brand to start. This is what I was told and it could be right or wrong.

The above does not include floor plan, wages, insurance, and other needed stuff.. lol

Good luck on the shop if you decide on it.
 

JonnyCinco

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Per capita income

Average cost of living

number of license moto's in the area

unemployment/underemployed rates

Some things to think about that are all free on the intarweebs. You can always start a shop. Getting a manufacturer is a different story.
 

Twitch

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Twisties said:
How to begin? Small, service and consignment sales only, or bigger? Nice or bare bones?

How much $$$$ needed to do this?
Imho, anything other than nice is not going to fly. I know this is a costly venture, but I think keeping the size/investment down in the development period and having a nice environment for customers is a more appropriate direction than jumping into something large and costly. When you plan to start any business, you really need to plan your exits too. Having a big infrastructure (facilities, contract, employees) is a big ball and chain if you need to duck out.

For something along these lines of small service and consignment orientation, you might want to take a look at Bikers Bay, which is a franchiser. We have one in Tampa, it’s a nice place and seems to do pretty well.

Having said that, back in 2008, I wanted to do something similar to what you're thinking. I looked at Bikers Bay and thought I could do better than what they offered. My idea was starting small with a unique repair shop model to serve as the center post, plus consignment and used sales, parts and accessories. I attempted to launch something along these lines and got in pretty deep. I had a facility sourced, was working on my dealers license (in Fla you need a dealer license* for consignments too) and I located my head mechanic who would have been part owner manager, since I have another biz to run. When I searched the head mechanic, I wanted a dude with a lot of experience and had all kinds of certifications and certificates to put on the walls. This guy did…but, upon doing a background investigation, he also had a rap sheet that turned me white. I’m talkin’ major crimes and major time. That and a few other things ultimately killed the whole deal.

As for the numbers…I think I’ve mentioned here that I’m a cpa...like for over 30 years. You want numbers, I got numbers. ;) Shoot me a pm with your email and I’ll send you projections for my small repair/consignment sale shop idea along with the capitalization strategy. All the details you'll need, but they’re in 2008 dollars so you might need to update them to 2011 dollars (like wages, rents, etc.); it’s all in an excel template though.
 

Twisties

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japako said:
I would want to know the average age of the people in the 3 towns, as well as the average wage. Do most people own their homes and how are the schools doing?
Are the local banks loaning money for toys?

From what I have gleaned from my dealer, the cost is around a million dollars just to have a small dealership and one major brand to start. This is what I was told and it could be right or wrong.

The above does not include floor plan, wages, insurance, and other needed stuff.. lol

Good luck on the shop if you decide on it.
Yamaha says you need $150k in cash and a net worth of $1.2M. If you have that they'll talk to you. Realistic or no? Worth having a dealership or no? Pros and cons? I would think access to parts at dealer costs and mechanic training would be of great value.
 

Twisties

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I have a lot of the basic demographic info for the towns, but have no benchmarks to compare it to. On the other hand, I have certainly seen dealers apparently doing well in smaller communities. Locals report no history of a moto/atv shop. In contrast we noted no Italian restaurant (we were trying to see what the town might need... our list: Moto/atv, Italian restaurant, clothing store, eco-tourism, locavore/artisan market), and were told of a history of successful enterprise, closed due to retirement.

The town is basically blue collar with a tourism market and retiree community as well. It has low college education, low crime, average employment, moderately low average income (but this may be due to the retiree population). However, one sees plenty of million $$$ properties around. Basically, in my impression, it seems generally under-served for it's size and economic footprint. Restaurants and hotels uniformly reported about half full in winter, when we were there, and full up, need reservations in summer. The Chamber of Commerce reports a slightly increasing population, but generally stable conditions. There are like three supermarkets and a new membership type big box store is under construction. There are two large industrial businesses, and one other regional industry comprised of small businesses. Homes are generally owned by the occupants. Lot sizes are regular urban affairs in town and rural parcels out of town.

I think there is a big atv market with hunters, rural property owners, search and rescue, and one of the large industries. Moto's would be mostly trail bikes and tourists passing through.

We have a concept for a regionally appropriate moto accessory product line that could be used to make our shop into something of a destination. But are at a loss on going from concept to reality in that area as well. Also not sure we can extend the resources for two start-ups at once. Well, almost sure we can't. So it's start incrementally and then go from there I think.
 

ottawast

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Having been a small business owner (non- motorcycle) I would suggest starting with repairs only. Most dealers will tell you that when times are tough it's the service bays that keep the business afloat and it's the one thing people can't buy on the internet! Start small and let your customers tell you how to grow. A big mistake is to make assumptions of what people want and load up with a lot of expensive inventory. This cautious approach will greatly reduce your financial risk. If you end up with a successful repair facility the manufacturers will find you and getting a dealership will be a whole lot easier. Good Luck ::008::
 

jajpko

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Twisties said:
We have a concept for a regionally appropriate moto accessory product line that could be used to make our shop into something of a destination. But are at a loss on going from concept to reality in that area as well. Also not sure we can extend the resources for two start-ups at once. Well, almost sure we can't. So it's start incrementally and then go from there I think.
If you are thinking about accessories, why not start an internet company as well. I think that would fit in well to start with and if you are competitive it could help out the brick and mortar. Also that would be a way of advertising you business and draw people to your place. It would take a bunch of leg and keyboard work...

Along with this, a good repair shop. A person I know has a business like this and does very well. He has made contacts with different OEM dealers to purchase parts from them at a reduced rate. His OEM parts alone is good.
The concept is not to try and make it all on one sale, and good word of mouth.

He has taken his as far as he wants and make a decent living..
 
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