![]() Certificate of OccupancyĪ motorcycle shop business is generally run out of a standalone building. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses. Most businesses are required to collect sales tax on the goods or services they provide. The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.Įstablishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your motorcycle shop is sued. Shop owners have also realized success by offering airbrushing services, selling second-hand bikes, and offering motorcycle tutorials to educate those interested in learning more about their hobby. This is an effective way to increase your profits without a large increase in overhead costs. Since bike shops are often a place to congregate, offering food and drinks, along with a comfortable seating area, will ensure your customers are comfortable and happy. Many motorcycle shop owners report having significant success operating an online motorcycle parts business. How can you make your business more profitable? Annual profits can range between $35,000 to $64,000 or more. Total annual profits vary, depending upon the specifics of what services you offer, what parts and accessories you sell, and how you plan to sell them. While the first three years may generate a profit of $13,000 to $17,000, this is a positive sign and sets the business up for long-term growth and success. Unlike many businesses, motorcycle shops often see a profit in the first year. How much profit can a motorcycle shop make? Parts and accessory price are generally marked up 100%. How much can you charge customers?įees for maintenance, repair, and bike customization are based on labor and parts. Some businesses operate on a local level only, while others sell goods online, expanding their reach to a much broader audience. Your shop will generate income based on the goods and services offered. While your shop will generate revenue from novice bikers, the bulk of your marketing campaign should be geared towards experienced bikers. Men falling in the 18 - 25 and 40 - 65 age brackets represent more than 80% of motorcycle sales. ![]() In addition to the standard rent, utilities, phone, and Internet, you will need to budget for the following:Įstablished shop owners indicate a break even budget of $16,000 per month. What are the ongoing expenses for a motorcycle shop?Īs a repair and retail establishment, you will be facing a number of ongoing expenses. They set the prices and can offer valuable insight into what your initial and ongoing investment should be. Prior to writing your business plan, focus on building relationships with wholesale retailers. If your intention is to manage a larger dealership, your start-up budget should be significantly higher. Inventory - engine and electrical parts, accessories, parts for repair services, and motorcycles.Shop location - first and last month’s rent is typically required.This number could vary significantly, depending upon the inventory you choose to carry and services you intend to offer. Veteran motorcycle shop owners recommend a budget of approximately $55,000. It's very important to secure your domain name before someone else does.įind a Domain Now Submit Powered by What are the costs involved in opening a motorcycle shop? When registering a business name, we recommend researching your business name by checking: If you operate a sole proprietorship, you might want to operate under a business name other than your own name. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Motorcycle Shop Name Generator What will you name your business?Ĭhoosing the right name is important and challenging. Luckily we have done a lot of this research for you. What are the startup and ongoing costs?.It will help you map out the specifics of your business and discover some unknowns. STEP 1: Plan your businessĪ clear plan is essential for success as an entrepreneur. ![]() Exploring your options? Check out other small business ideas. These steps will ensure that your new business is well planned out, registered properly and legally compliant. We have put together this simple guide to starting your motorcycle shop. Get the Necessary Permits & Licenses for your Motorcycle Shop.Set up Accounting for your Motorcycle Shop.Open a Business Bank Account & Credit Card.Register your Motorcycle Shop for Taxes. ![]() Form your Motorcycle Shop into a Legal Entity.Start a motorcycle shop by following these 10 steps: ![]()
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