Investors interested in motorcycle related business need
adequate information to start the enterprise. Common parameters include startup
finding, legalities and marketing. Others are defining a target market, finding
an ideal location and growth potential.
The individual needs to determine which sector of the
industry to operate. They could concentrate on sales of spare parts, wholesale,
retail or manufacturing. Other areas are repairs, servicing and sales of new or
used bikes.
Things
to Consider
Things to consider before launching the business are
writing a business plan and carrying out a feasibility study. You need a
business overview, growth and earning potential.
There is also, fixed and working capital including legal
consideration. More include ideal location for the business, staff strength,
type of motorcycles to stock.
Business
Overview
The business overview should cover growth potential,
profit making and target audience. Factor the daily operational activities,
staff credentials.
Like any automobile they require regular maintenance and
service. They need replacement parts, fuel and accessories. The entrepreneur
can decide to sell used or new bikes, accessories or provide a service.
To run a successful store you need passion and good
knowledge of the industry. Training is also important including interpersonal
and sales skill.
Motorcycle repair and maintenance is a huge industry. An
investor interested in the business needs to have the required skill or hire
competent mechanics. The job involves repairs, sales and maintenance of 2 wheel
vehicles.
To succeed there most be a demand for your services. Make
sure you carry out a survey and write a business plan. The business requires
specialized skill, training and business knowledge.
The market is for bike owners/riders and practicable full
or part time. Thinking of starting a motorcycle repair business then here are
10 tips for success.
1. Write
a Business Plan
Write a motorcycle shop business plan and carry out a
feasibility study. The plan should cover store location, equipment, inventory
and utilities. Others include staff, legalities, service delivery and
marketing.
2. Learn
the Trade
The first step to launching the business is training.
There are some diploma and certificate courses for technicians. Higher degrees
are Bachelors degree in mechanical engineering and Masters Degree.
The person could be self taught, gain work experience or
try an apprentice program. Learn from manuals, online courses, technical college
and other store owners. You need good business knowledge, organizational skill
and good customer relations.
·
diploma and certificate courses
·
formal training
·
self taught
·
gain work experience
·
apprentice program
·
manuals
·
online courses
·
technical college
3. Skills
Required
The skills required to run the store include technical
knowledge of motorcycles. You need mechanic skill, organizational skill. A kin
knowledge of different brands of bikes is an added advantage.
4. Job
description
The job description involves sales, servicing or repairs.
Daily activities include administrative duties, accounting, and customer
service. You need proper store management, accounting and appropriate
marketing.
The business should target commercial riders, motorcycle
owners. You can stock different parts, sell safety helmets, sunglasses. Another
huge market to explore is motorcycle accessories. Make sure you have a well
stocked shelve to handle repairs and sales.
5. Startup
Capital
The startup depends on the amount of inventory, rent and
staff wages. You need a workshop space and front store. Other cost
considerations are equipment, parts and tools. To reduce costs purchase in bulk
directly from wholesalers or manufacturers.
To access funds approach a commercial bank in your area.
You can try saving, borrow from friends and family. Another way is to offer a
partnership arrangement or find a core investor. Startup cost based on
different parameters for a small business is from $1000 to $5000.
6. Purchase
Equipment
Make sure you purchase only quality spare parts and
equipment. There are many ways to source for equipment. You could purchase
directly from manufacturers or major appliance stores.
Spare parts should be bought in bulk or sourced from
partner stores. Common equipment is hydraulic lifts, compressors, hand tools,
charger cables/equipment.
7. Hire
Staff
The amount paid to a technicians range from $25,000 to
$40,000. An average store needs about 2 technicians, an accountant, sales
person and cleaner. It is possible to run a small store alone.
8. Legalities
Register the business as a limited liability company. You
need liability insurance and tax identification number. Some spare parts might
attract value added tax. Make sure the technicians are adequately trained and
certified to carry out repairs.
9. Setup
a Customer Relationship Management System
To inform customers of new service packages, discounts
and coupons you need a way to reach them. There are different ways to gather
information from customers.
You could offer them a form that includes vehicle type,
email address. Other valuable information is mailing address, phone number and
service type.
The information is then added to a customer relationship
management system that runs automatically or manually. The system provides valuable
information on customer service history and type of vehicle.
It stores personal information such as email address,
name and customer preferences. To setup the system you need a computer,
internet access and management software. The system sends emails to customers
in the data base tailored to their specific needs.
10. Marketing
Budget
It is important to develop a marketing budget. The budget
should cover print and electronic media advertisement. Print involves flyers,
posters, and banners. You need a large signboard in front of your store.
Other costs include development of website, online
marketing and management of social media account. You can use word of mouth,
community activities and yellow pages. Don’t forget to use local newspaper
advert to attract patronage.
36 best automobile business ideas
36 best automobile business ideas
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