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As you prepare for opening day, plan to scope out your competition and make several important decisions about business operations. From the simple decisions, such as whether your business will sell new or used parts, to major ones, such as how to finance your enterprise, you need to be prepared to lead and capture your part of the market.
Find a Need and Fill It Assess your potential competition. Document what all your competitors have to offer, their price points and locations.
Decide whether your area needs a motorcycle-parts business. If not, choose a better location or identify a niche market that is not already saturated. It is possible that your area has plenty of existing Harley Davidson parts businesses, for instance, but not enough pocket-rocket or mini pocket-rocket parts businesses.
Focus on Finance Get your financial house in order.
Decide how you will fund your motorcycle parts start up. You can use cash on hand, bank financing or venture capital, for instance. Explore the possibility of getting a credit line from key motorcycle-parts wholesalers. Usually, funding will be some combination of these methods.
Locate Suppliers Find reliable motorcycle-parts suppliers for the parts you plan to inventory and the parts you plan to special order for customers. Buy direct from the parts manufacturer for the best competitive advantage. Whether selling new or used motorcycle parts, you need suppliers you can count on for good service.
Build an Inventory Secure your initial inventory of parts. Decide which parts will be in greatest demand during the normal course of operating your motorcycle parts business. Stock items such as bodywork, electrical parts, engine parts, frames and gas tanks.
Know whom to call when the customer needs something you do not stock. Get what your customer needs quickly at a reasonable price, and you win the sale. Be prepared to shelve or merchandise these items attractively before the grand opening. Obtain Licenses and Insurance Obtain a business or occupational license.
While there, inquire whether motorcycle-parts businesses must get any special permits for handling motor oil or other hazardous substances. Cover your liabilities with adequate insurance.
Consult your insurance representative for a business liability policy that covers the unique situations encountered by a motorcycle parts business, which can be rife with risks to both life and property, due to the nature of motorcycles.
Ask your agent what coverage you would need should a set of used brakes you sold fail, causing an accident, for example. Start Marketing Begin your marketing plan. Inexpensive options for attracting customers include creating a website or distributing fliers where motorcycle riders commonly meet.
Offer basic motorcycle instruction, motorcycle safety classes or teaching a hands-on custom building workshop. These activities can be conducted for a fee, creating a profit center of its own, or you can offer them free of charge to attract your target market to your parts shop.The business owner still provides the additional financial backing that Ally may require, while keeping his or her personal credit free and clear of business obligations, except in the event of default.
Commercial auto insurance provides liability and physical damage coverage for vehicles used by your business. This includes cars, vans, commercial trucks, and other types of vehicles. Commercial auto policies offer different levels of coverage than personal policies.
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