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Motorcycle Shop Business Plan

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Recycled Riding Dreams

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Recycled Riding Dreams will offer quality used motorcycles and motorcycle parts to a growing market of motorcycling hobbyists.  For the beginner, Recycled Riding Dreams offers excellent value in a first bike that will not bust the customer’s budget.  For the experienced biker, quality used parts will cut the cost of repairs and modifications by 50% to 75%.

Over the past ten years, biking has developed an entirely new customer base among baby boomer men, ages 40 to 65.  Last year, motorcycle sales for this age group was twice that of young men, ages 18 to 25. In Montclair, motorcycle sales exceeded $6 million in 2000 and sales are predicted to grow by 15% this year.

Montclair is a city of 650,000 residents with an average income of $28,000.  The city has seven motorcycle organizations and sponsors an annual cycling event as part of the city’s spring celebration.

Brian Jefferson, owner of Recycled Riding Dreams is one of most respected and best known motorcyclist in Montclair.  Brian is the president of the largest motorcycle organization in the city with over 800 members.  Last year, Brian lead the motorcycle parade during the city’s spring celebration.

Brian’s connection with the motorcycling community and the growing demand for quality used motorcycles and motorcycle parts will make Recycled Riding Dreams one of the most popular shops in the city.

1.1 Objectives

The objectives of Recycled Riding Dreams are:

• Capture the majority of the used motorcycle business in the Montclair.
• Offer our customers a superior service, at a low price.

1.2 Mission

The mission of Recycled Riding Dreams is to become the primary resource for used motorcycle parts in Montclair.

1.3 Keys to Success

The keys to success for Recycled Riding Dreams are:

• Customer referrals.
• Exceeding the customer’s expectation for quality, timeliness and price.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Recycled Riding Dreams will offer quality used motorcycles and motorcycle parts to a growing market of motorcycling hobbyists.  The shop will purchase used and damaged bikes as well as used motorcycle parts.

2.1 Company Ownership

Recycled Riding Dreams is owned by Brian Jefferson.

2.2 Start-up Summary

Brian Jefferson will invest $55,000 in Recycled Riding Dreams.  Brian will also secure a $20,000 loan.  The initial inventory for Recycled Riding Dreams will be $45,000. The focus of this inventory will be on engine and electrical parts. The source of these parts are motorcycle hobbyists who sell the parts in order to purchase upgrade parts for their own motorcycles.

The following table and chart show projected initial start-up costs for Recycled Riding Dreams.

Recycled Riding Dreams offers the following products:

• Used Motorcycles : These cycles have been inspected and occasionally reconditioned in order to offer the customer the best value.
• Used Parts : These quality parts include engine parts, bodywork, gas tanks, electrical parts, frame, and chassis wheels and brakes.

Market Analysis Summary how to do a market analysis for your business plan.">

Over the past ten years, biking has developed an entirely new customer base among baby boomer men, ages 40 to 65.  Last year, motorcycle sales for this age group was twice that of young men, ages 18 to 25. These two groups represent 80% of motorcycle sales. In Montclair, motorcycle sales exceeded $6 million in 2000 and sales are predicted to grow by 10% this year. The city has ten motorcycle organizations and sponsors an annual cycling event as part of the city’s spring celebration.

The demographics suggest that there is a large market for used motorcycles and motorcycle parts, especially among experienced bikers.  This is particularly important because the experienced customer will seek out a shop where the owner has a reputation for quality and service in the motorcycle community.

4.1 Market Segmentation

Recycled Riding Dreams will focus on two customer groups:

• Male baby boomers, ages 40 – 65.
• Young men, ages 18 – 25.

Strategy and Implementation Summary

Excellent word of mouth among motorcycle hobbyists is the foundation of Recycled Riding Dreams. The motorcycle community in Montclair is close and used by its members to locate resources and services. Each satisfied customer of Recycled Riding Dreams will bring in more business.

5.1 Competitive Edge

Brian Jefferson, owner of Recycled Riding Dreams is one of most respected and best known motorcyclist in Montclair.  Brian is the president of the largest motorcycle organization in the city with over 800 members.  He has been a motorcycle hobbyist for 15 years and has built a reputation for quality customizing of motorcycles. For the past five years, Brian has served as a resource in locating used motorcycles and motorcycle parts for hobbyists.

Recycled Riding Dreams’ competitive edge is Brian’s visibility in the motorcycling community.

5.2 Sales Strategy

Recycled Riding Dreams will open with a Customization Show and Competition.  During the first month of operation, Recycled Riding Dreams will offer a 15% discount on all purchases over $50.  Brian will also offer a standard 10% discount to members of the city’s seven motorcycle organizations.

5.2.1 Sales Forecast

The table and charts below show Recycled Riding Dreams projected sales forecast for three years.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Brian Jefferson will manage the daily operations of the shop.

6.1 Personnel Plan

Besides Brian Jefferson, Recycled Riding Dreams will have one additional employee.

Financial Plan investor-ready personnel plan .">

The following is the financial plan for Recycled Riding Dreams.

7.1 Break-even Analysis

The monthly break-even point is approximately $16,000.

7.2 Projected Profit and Loss

The following table and charts shows projected profit and loss for three years.

7.3 Projected Cash Flow

The table and chart show the projected cash flow for three years.

7.4 Projected Balance Sheet

The table shows the projected balance sheet for three years.

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5015, Motor Vehicle Parts Used, are shown for comparison.

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Motorsports Dealership Business Plan Sample

This motorsports dealership business plan sample is focused on the growing industry in Charlotte, North Carolina . If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own. To get your dealership started, there are no costs associated with overhead, storage, packaging, which in turn will save you a lot of time and money. Our motorsports dealership business plan writers created this sample.

Executive Summary

“Motorhub Motorsports Limited.” operating as “Motorhub Motorsports” (The company) was incorporated on June  22, 2021 in the State of Charlotte, North Carolina.  The company sells a variety of used and pre-owned motorsport vehicles including motorcycles, snowmobiles, dirt bikes, all terrain vehicles (ATV’s) and utility terrain vehicles (UTV’s).

With over 10 years of experience in the motorsports retail management industry, and an extensive network in the American motorsports community, Mr. Michael brings a wealth of knowledge, experience and skill to this opportunity. He is a professional backcountry snowmobiler and motorsports enthusiast, with experience directly managing two successful motorsports dealerships in the past. As Founder of Motorhub Motorsports, Mr. Michael is ready to apply his experience and skills to this new opportunity, with a goal of profitability within the first year of operations. 

Motorhub Motorsports is seeking a $78,500 loan through the North Carolina Small Business Administration to purchase equipment and leasehold improvements for this Charlotte Dealership.  With a growing motorsport community in Charlotte, Charlotte is an ideal location to establish the company’s first facility.

Motorhub Motorsports will drive sales by implementing a digital marketing strategy which will include Google Ads, social media marketing and an ecommerce store.  Furthermore, Mr. Michael has identified a gap in Charlotte’s motorsport industry in the sale of used and pre-owned equipment.  As the sector grows, there are more and more people with used equipment looking to sell, trade, or purchase for their own use.  The company will meet this demand with a centralized location, an experienced team, and sought after motorsport equipment.

Business Overview

Motorhub Motorsports offers direct-to-customer sales of motorsport vehicles such as motorcycles, snowmobiles, dirt bikes, ATVs and UTVs. In addition, the business will host an integrated and up to date e-commerce store listing available inventory and selling motorsport vehicle parts, accessories and safety gear. The company will have a dealership, retail storefront and in-house maintenance services and repairs. Motorhub Motorsports is currently seeking funds from the North Carolina SBA Loan Program to support initial start-up costs including leasehold improvements, and the purchase of equipment.

Mission Statement

Our mission is to become the leader in used motorsport sales in Charlotte and continually support the strong and growing community of motorsport enthusiasts with superior products and services. 

Vision Statement  

Our vision is a motorsport community in Charlotte, which has access to an array of used and pre-owned vehicles, making our sport accessible to all Charlotteans.

Core Values

• Serve customers year round with a variety of motorsports equipment
• Strong customer service with a customer first attitude
• Achieving and maintaining a profitable business 
• Make motorsports vehicles accessible to the public through a variety of options
• Going the extra mile for customers
• Offering fair and accessible financing directly through our network  

Since incorporating in June 2021, the company has achieved the following milestones: 

• Successfully incorporated the business
• Acquired a business license in the State of North Carolina
• Secured a retail space to run the daily dealership operations
• Secured a brokerage company to supply financing for customer purchases
• Implemented a dealer management supply system to control inventory and manage daily operations 
• Launched a website with substantial traffic, unique site visits and click-through rates 
• Launched Facebook and Instagram social media channels and gained a substantial following
• Implemented a Google Business listing, proving strong results on site visits in awareness generation 

Goals and Objectives

• To acquire an original equipment manufacturer (OEM) to provide genuine vehicle parts directly to Motorhub Motorsports 
• Develop a large, loyal customer base who use Motorhub Motorsports services for all their motorsports needs 
• To have a wide pre-owned vehicle inventory of both summer and winter motorsports equipment to generate revenue year round
• To hold the largest selection of pre-owned motorsport units in Charlotte
• Become known across the State as the best pre-owned motorsport dealer 

Market Analysis

Motorhub Motorsports operates in automotive sales and in the outdoor recreation vehicle industries. Specifically, the company serves snowmobiling, offroading (dirtbikes, ATVs, UTVs), and motorcycling sectors in the outdoor recreation industry. 

Government Regulations

All automotive dealerships in Charlotte are required to abide by the North Carolina Division of Motor Vehicles Dealer Unit, which requires all employees to act in accordance with the policies set out in the Motor Dealer Act and the Public Service Act. The Motor Dealer Act requires that the owner be registered and offer repairs for vehicles purchased through the dealership on site or with a partner legislated contractor. Additionally, all dealerships are required to have a clear sign on site to state the nature of the business. All staff who work on site as a salesperson must be licensed, and owners of dealerships must consent to disclosure on fees, exemptions, bonding, and advertisements upon request. 

Market Trends  

The used automotive and motorsport industry in North Carolina is valued at $14.3BN in revenue with an annual growth rate of 2.2% between 2021-2026. The industry reported $314.6M in profits in 2020, with an increasing annual growth rate of 1.4% between 2016-2021. There are 7,625 businesses in North Carolina, employing over 13,778 people. Used vehicles make up 63.5% of the industry, with parts and services making up 25.6% followed by financing and insurance at 11.0%. Overall, the industry is highly fragmented with low levels of competition. 99.9% of used automotive dealerships have under 100 staff, with no one player dominating the majority of the market. 

Covid-19 has challenged the automotive industry’s supply chain and many car manufacturers are struggling to produce new vehicles due to a shortage of semiconductors. This has resulted in an inflation of the used vehicle and motorsport market, allowing dealers to charge more for used vehicles and an overall increase in the willingness to pay on the customers’ part. Increased demand for used motorsports and vehicles has resulted in an increasing number of motorsport dealership registrations in North Carolina, and an overall increase in lending institutions financing automotive purchasers for used and pre-owned vehicles and motorsport equipment. Additionally, there has been a steady increase in people becoming interested in motorsports recreation in the past two years, indicating that the market is growing. In fact, 2019 saw record sales in motorsport vehicles across all categories, with dirt bikes completely selling out across the State in the spring of 2019. 

Charlotte is considered a hotbed for offroading enthusiasts and is a prime location for a motorsports dealership. Charlotte is centrally located within the five top rated places to offroad in North Carolina by Riderswest in 2020. These include Greenstone, Mount Ida, Bardolph and Becker Lakes, Bear Creek, and Allendale Lake. As such Motorhub Motorsports will be well-positioned geographically and situationally for growth, profitability and success. 

Key Competitors

Banner Rec and Marine: Banner Rec and Marine is a recreational Snowmobile, ATV, UTV, Sled, Motorcycle, Sea-Doo, and Boat dealer with locations in Charlotte, Raleigh,  Greensboro, and Wilmington. Banner Rec and Marine sells new and pre-owned motorsport vehicles, with a regular inventory on clearance across all product categories. Each product features comprehensive details and information about each item, including dealer insights, features, engine, transmission, chassis, capacity, instrumentation and dimensions. Banner Rec and Marine also offers rentals, and storage facilities and partners with Bankgate Financial to offer financing services directly through the website.  

M&M Performance: M&M Performance is a Powersports dealership in Charlotte North Carolina that sells UTVs, ATVs, snowmobiles, slingshots, and motorcycles. M&M Performance sells both new and used vehicles,  parts and accessories, as well as conducts trade value assessments allowing customers to trade their Powersports vehicles through the dealership. It is a registered dealer for Triumph, Polaris, and Indian Motorcycle, and has a wider variety of pre-owned vehicles. M&M Performance has eighteen staff and offers services with a full service department located on site as well as a financing calculator and estimator available online. 

Valley Motorsports: Valley Motorsports is a Powersports dealership located in Charlotte North Carolina that has been operating since 1995. The dealership sells new and pre-owned motorsport vehicles. Valley Motorsports specialized in Arctic Cat, Kawasaki, KTM, Royal Enfield, Suzuki and Husqvarna, with a wide selection of pre-owned vehicles of all models. Valley Motorsports has a parts and service department on site, and a wide array of resources and dealer information available online. Their website has a fully integrated virtual showroom displaying all in stock items and offers trade in offers and financing available directly through the website. 

Products and Services

Motorhub Motorsports will sell a variety of outdoor motorsport vehicles, equipment, parts and accessories through their physical dealership as well as online. 

Pricing Model

Motorhub Motorsports will sell a variety of products to serve customers year round. The company’s pricing model is as follows:

Competitive Advantage  

Motorhub Motorsports’ competitive advantage is based on Mr. Michael’s experience and expertise in dealer management and vehicle sales. He possesses the ability to grow Motorhub Motorsports to become well known across the State for providing high quality pre-owned motorsport vehicles and equipment for a variety of sports and activity types. The company differentiates itself from competitors by providing the option for customers to finance pre-owned recreation vehicles. This market is large and currently, no dealers are specializing solely in pre-owned motorsports vehicles with the option to trade-in, upgrade, or receive financing to fund a purchase. Motorhub Motorsports is creating a new market where customers are able to purchase a 1-5 year old automobile at a discounted price through a reputable dealership that can guarantee a level of authenticity, performance and price for the quality. Financing is available for customers to pay for a pre-owned vehicle on a monthly basis, instead of cash outright purchase. 

Key Success Factors

Motorhub Motorsports key success factors are as follows:

• Increasing the number of motorsport vehicles sold
• Increasing the number of conversions from visitors to the Motorhub Motorsports dealership
• Maintaining and withholding a strong reputation as the top pre-owned motorsport dealer in Charlotte 
• An increasing number of walk-ins quarter over quarter 
• Increasing vehicle sales quarter over quarter
• Increasing profitability levels
• Growing and retaining a top tier sales staff 

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Sales and Marketing Plan

As a successful sales professional, Mr. Michael has a unique advantage in ensuring Motorhub Motorsports is acquiring customers and growing the company’s customer base. The company currently has a robust sales and marketing plan in place to reach its target customers and attract new customers to the Motorhub Motorsports dealership and website. 

Target Customer

Motorhub Motorsports has defined the target customer to be middle and upper class men and women that engage in motorsports and outdoor activities. The company will target individuals that live within 250km of the Motorhub Motorsports Charlotte location and have an annual household income exceeding $60,000. Additionally, Motorhub Motorsports will target individuals within the motorsport community that are willing to spend between $20,000 – $25,000 on a motorsports vehicle, between $4,000 – $6,000 per year on motorsport vehicle maintenance services, and between $4,000 – $6,000 per year on motorsport vehicle parts and accessories. 

Key Channels

Motorhub Motorsports will employ a web-based digital marketing strategy to drive awareness, interest consideration, and purchases as well as print advertising in local markets and motorsports media. Motorhub Motorsports plans to utilize the following channels to reach the target customers stated in Section 5.1:

Digital Marketing: Mr. Michael will create and maintain a Facebook and Instagram following where he will consistently promote the Motorhub Motorsports brand to build up a following of thousands of followers. Motorhub Motorsports will employ both paid and organic marketing methods, including paid Instagram, Facebook, and google ads that target interested customers and potential new customers. The company will also employ organic advertising such as search engine optimization and frequent website upgrades with key information on the motorsports industry. 

Internet Sales Strategies: Motorhub Motorsports will also employ internet sales strategies to drive awareness and bring customers into the dealership location. This strategy is especially important, as many customers are often searching for local businesses in their area, and will use the internet as the first point of discovery. Mr. Michael will register the dealership on all relevant online portals as well as develop a strong online inventory and showcasing system to display all relevant and up-to-date information on available products and services. 

Print Media and Advertising: Mr. Michael also will prioritize print and traditional advertising in key markets to promote Motorhub Motorsports to relevant audiences. This includes advertising in local Charlottean newspapers, as well as in motorcycle, snowsports, and UTV/ATV magazines and media. 

Key Performance Indicators

Motorhub Motorsports will monitor progress by referring to the following key performance indicators (KPI’s) at each quarterly meeting:

• Profitability ratios
• Number of repeat customers 
• Number of new customers
• Sales volume (Month-to-date, Year-to-date)
• Sale to customer visit ratios
• Positive reviews and five-star feedback 
• Average turnaround time on inventory 
• Mechanical and cosmetic reconditioning time
• Cost to market value 

SWOT Analysis

Operational Plan

Motorhub Motorsports will operate out of a dealership located in Charlotte, North Carolina. Customers will be able to visit the facility to view inventory, speak to sales professionals and shop in the retail space for motorsports accessories and equipment. Additionally, the company will leverage a constantly up-to-date online inventory system where customers can visit the website to learn about available products. 

Operational Process

Motorhub Motorsports will acquire inventory via trade-ins from customers and by actively pursuing and purchasing high quality pre-owned motorsports equipment. The company will offer inventory to customers at their dealership location, and offer financing and monthly payment options directly through the dealership. This increases the accessibility for motorsports equipment, allowing customers to purchase high quality pre-owned vehicles and equipment from a reputable dealer. Motorhub Motorsports will accept cash, debit, and credit, and work with a third party brokerage to offer various financing options to customers.

Equipment & Inventory

The company will use the funds to acquire the following equipment: Forklift ($15,000), Enclosed Trailer ($20,000), Computer ($3,000), Sled Deck ($6,000), Signs ($6,500), Office Deck ($1,000), Front Counter ($3,000), Flooring ($3,000), Paint ($3,000), Lights ($3,000), Electrician ($2,000), Slat Walls ($3,000) and Bathrooms ($10,000). 

Motorhub Motorsports is located at 26 W 30th St Charlotte, NC 28206.

Risk Analysis

Motorhub Motorsports operates in the automobile sales industry and is vulnerable to the following risks:

Macroeconomic risks such as unemployment rates, the fluctuating world price of crude oil, new vehicle sales, and the per capita disposable income impact the success of Motorhub Motorsports to reach a desirable scale and factors including average household debt, interest rates, and gasoline prices contribute to the overall demand for used vehicles. Motorsports sales are primarily influenced by consumers’ financial stability and spending power for recreational items. Additional risks include the inability for customers to meet financial obligations for vehicle purchases as well as the increasing competition for used vehicles between dealerships, increasing the overall market price and demand for pre-owned vehicles and motorsports equipment. 

Management Team

Jim Michael

Owner and Operator

Jim Michael has more than ten years of experience in the motorsports retail management industry in the fields of sales, management, and business development. He has owned a successful business for the past four years and has successfully managed two motorsports dealerships in the past. He has a strong background and proven success in sales and holds numerous sales certifications and professional designations. He was ranked in the Top Five salespeople in North Carolina for NC Snowmobiles and has gained a strong reputation and knowledge base on motorsports vehicle sales. 

In addition, Jim Michael is a professional backcountry snowmobiler and motorsports enthusiast. He started riding motorsport vehicles at the age of five and has participated in a number of competitions throughout his career. His past entrepreneurial and management experience will directly apply to his ability to manage, grow, and scale Motorhub Motorsports to become known across the State as a top choice for pre-owned motorsport vehicles, accessories, and repairs. 

Corporate Culture  

Motorhub Motorsports has a goal to become experts in the field of motorsports and will employ a strong corporate culture of interest and passion in a variety of motorsport activities. As a professional backcountry snowmobiler, Jim Michael will employ a culture of knowledge sharing and community at his motorsports dealership, inviting customers to ask questions, learn from staff, and trust Motorhub Motorsports for all their motorsports questions and needs. 

Recruitment Plan

Motorhub Motorsports will recruit via traditional recruitment techniques such as Indeed, Glassdoor, and Workopolis. Additionally, Mr. Michael will leverage his industry connections to attract and retain top talent in the automobile and motorsports sales industry. Within the next two years the company will recruit the following staff members:

Bookkeeper 

Salary: $50,000 per year 

• Maintains records of financial transactions by establishing accounts; posting transactions; ensuring legal requirements compliance.
• Develops a system to account for financial transactions by establishing a chart of accounts; defining bookkeeping policies and procedures.
• Maintains subsidiary accounts by verifying, allocating, and posting transactions.
• Balances subsidiary accounts by reconciling entries.
• Maintains general ledger by transferring subsidiary account summaries.
• Balances general ledger by preparing a trial balance; reconciling entries.
• Maintains historical records by filing documents.
• Prepares financial reports by collecting, analyzing, and summarizing account information and trends.
• Complies with federal, state, and local legal requirements by studying requirements; enforcing adherence to requirements; filing reports; advising management on needed actions.
• Contributes to team effort by accomplishing related results as needed.

Administrator  

Salary: $60,000 per year

• Open and distribute incoming regular and electronic mail and other material and co-ordinate the flow of information internally and with other departments.
• Schedule and confirm appointments and meetings.
• Order office supplies and maintain inventory.
• Answer telephone and electronic inquiries and relay telephone calls and messages.
• Set up and maintain manual and computerized information filing systems.
• Determine and establish office procedures.
• Compile data, statistics and other information.
• Supervise and train office staff in procedures and in use of current software.

Salary: $60,000 per year 

• Dismantle engines and repair or replace defective parts, such as magnetos, carburetors, and generators.
• Remove cylinder heads, grind valves, and scrape off carbon, and replace defective valves, pistons, cylinders and rings, using hand tools and power tools.
• Hammer out dents and bends in frames, weld tears and breaks; then reassemble frames and reinstall engines.
• Repair or replace other parts, such as headlights, horns, handlebar controls, gasoline and oil tanks, starters, and mufflers.
• Repair and adjust snowmobile/dirtbike/UTV/ATV subassemblies such as forks, transmissions, brakes, and drive chains, according to specifications.
• ​​Replace defective parts, using hand tools, arbour presses, flexible power presses, or power tools.
•  Reassemble and test sub-assembly units.
• Disassemble subassembly units and examine condition, movement or alignment of parts visually or using gauges.

Financial Plan

The following financial projections have been developed by the management team of Motorhub Motorsports.

Pro Forma Income Statement

Pro Forma Cash Flow Statement

Pro Forma Balance Sheet

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Motorcycle Store Business Plan

Written by Elma Steven | Updated on April, 2024

In order to write a Motorcycle Store Business Plan you need to start with executive summary. In order to write an executive summary for a Business Plan you need to mention- what your business is about and what you’ll sell. Explain how you’ll get people to buy it. The executive summary should be written at the end. Then you should write a Business Description mentioning goals, objectives, mission and vision. Some of the major sections or components of a Plan involves Fund Usage Plan, Marketing Plan, Industry Analysis, Organizational Overview, Operational Overview and Financials.

This article will provide you a step by step process to write your Business Plan. Get a free Business Plan at the end!

You can spend 3 to 4 weeks trying to write your own Business Plan by browsing through free online resources or hire a professional writer for $2,000. There is a better way to do this-  Download our Motorcycle Store Business Plan to write a plan in just 2 days .

This depends on various factors including your location, cost of capital, previous experiences and other factors. We have a financial model to input numbers and get a projection of your future revenue and profit.

Table of Contents

Executive summary.

Overview: Path Riders will cater to a rising market of motorcycle enthusiasts by providing high-quality used motorcycles and motorcycle parts. Recycled Riding Dreams offers good value in a first bike that will not break the customer’s budget for the beginner. Quality second-hand components will save the skilled biker 50 percent to 75 percent on repairs and upgrades.

Bike riding has gained a completely new consumer base among baby boomer men aged 40 to 65 in the last ten years. Motorcycle sales for this age group were twice as high as for young males aged 18 to 25 last year. Motorcycle sales in Montclair surpassed $6 million in 2000, and sales are expected to increase by 15% this year.

Montclair has a population of 650,000 people with a median household income of $28,000. The city is home to seven motorcycle clubs and hosts an annual cycling event as part of its spring festival.

• Used Motorcycles: These motorcycles have been inspected and, in some cases, refurbished to provide the best value to the consumer.

• Used Parts: Engine parts, bodywork, gas tanks, electrical parts, frame, and chassis wheels and brakes are among the high-quality parts available.

Mission : Recycled Riding Dreams’ mission is to become Montclair’s principal source for used motorcycle parts.

Vision : We want to be so effective that we can help others.

Industry Overview: Over the last decade, motorbikes have become increasingly popular as a cost-effective mode of individual transportation. Through 2021-2031, the motorcycle industry is expected to develop at a steady 3.5 percent CAGR. While technological developments in the automotive industry have boosted sales significantly, macroeconomic factors such as increased disposable income and urbanization are also driving motorcycle sales across regions. Fact.MR has released a new analysis that examines the global motorcycle market in terms of new trends, growth drivers, restraining factors, and demand-supply dynamics, with an emphasis on lucrative regions like Asia Pacific, Europe, and North America.

Check out this guide on  how to write an executive summary?  If you don’t have the time to write on then you can use this  custom Executive Summary Writer  to save Hrs. of your precious time.

Financial Overview

Financial Highlights

Use of funds.

Business Model  Canvas

Tips on business model canvasthe business model canvas is a high-level overview of the business model. it can also be considered as the business model map in the overall plan. the important partners, key activities, value proposition and cost & revenue sections are only some of the nine vital components. a company idea’s complexities may be mapped out, analyzed and communicated with the use of the canvas. it shows the whole picture of a company’s value creation, delivery and capture processes. it helps new business owners hone their ideas, encourage creative thinking and make sound strategic decisions. it’s a helpful resource for coming up with ideas, organizing plans and presenting business models to key players. check out  the 100 samples of business model canvas..

Tips on SWOT AnalysisIt offers a clear lens into a company’s strengths, weaknesses, opportunities and threats. This self-awareness enables effective resource allocation and strategic positioning against competitors. Businesses can mitigate risks, make informed decisions and set realistic goals. In addition, presenting a SWOT analysis in a business plan communicates to stakeholders that the company possesses a deep understanding of its market environment. In essence, SWOT ensures a business’s strategy is grounded in reality enhancing its chances of success. Check out the 100 SWOT Samples

Industry Analysis

The market for motorcycles in the United States was valued at USD 7.85 billion in 2016 and is expected to increase at a CAGR of 3.7 percent over the next five years. Over the projected period, high disposable income is expected to boost demand for motorbikes in this region.

Source: S tatista

According to the Motorcycle Industry Council, 8.4 million motorcycles were registered in the United States in 2014. New and various types of vehicles, such as scooters and motorcycles, are being developed by market players. They also offer personalized designs that are tailored to the needs of the rider in order to attract more clients and hence increase market demand. Furthermore, the motorbike is a popular product due to its higher fuel efficiency supplied by improved engines in compared to autos, low cost, and ease of operation in congested places. According to the Motorcycle Industry Council, overall motorcycle sales in the United States hit 413,128 units in the first nine months of 2015, a rise of 4.7 percent. Market growth can be ascribed to a surge in demand for a better and more efficient means of transportation. Bikes are also more appealing to the younger generation. Female motorcycle ownership grew to 14% in 2014, according to the Motorcycle Industry Council. This sector has an entirely new consumer base in the form of women. As a result, manufacturers are concentrating on designing smaller, lighter bikes. All these factors are boosting the growth of the industry.

Source: USITC

Marketing Plan

A key part of the marketing plan in a Motorcycle Store business plan is the marketing budget. The growth in the number of customers is proportional to the budget and dependent on the CAC .

The motorbike industry is rapidly evolving. Today’s biker is 47 years old, up from 40 in 2009 and 32 in 1990. It’s undeniable that riders are becoming older and purchasing fewer bicycles. As a result, the motorcycle sector, which is still hurting from the recession, is turning to the future.

Manufacturers of motorcycles are betting on the Millennial generation. However, this generation, the largest since the Baby Boomers, isn’t as enthusiastic about bikes as their forefathers. Because of the shifting tide, manufacturers and dealers must learn about their new audience and how to interact with them.

More motorcycle manufacturers are beginning to design bikes that appeal to a younger market in order to achieve this goal. What about motorcycle dealers, though?

Dealers must understand their audience—and how to sell to this new generation—in an e-commerce environment where Millennials prefer digital buying. Only approximately a quarter of the motorbike market was made up of those aged 50 and older in 2003. That number has virtually doubled in the last few years. Because older riders are starting to put down their helmets, obtaining them does not generate a high lifetime return. As a result, motorcycle manufacturers are producing new, simplified (and affordable) models to appeal to younger riders who will be buying motorcycles for the rest of their lives.

Smaller, more cost-effective bikes that are more entry-level friendly are preferred by these younger audiences over the daunting 1000cc displacement bikes. The race for horsepower is gone, and the era of 300cc and 500cc bikes has arrived.

Organizational Plan

Financial Plan

Income Statement:

Cash Flow Statement:

Balance Sheet:

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How to Write a Bike Shop Business Plan: Complete Guide

• January 11, 2023

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your bike shop, you will first need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in the business plan of your bike shop . Use this template to create a complete, clear and solid business plan that get you funded.

1. Bike Shop Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire business plan below.

Why do you need a business plan for a bike shop?

The purpose of a business plan is to secure funding through one of the following channels:

• Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
• Obtain private investments from investment funds, angel investors, etc.
• Obtain a public or a private grant

How to write your bike shop’s executive summary?

Provide a precise and high-level summary of every section that you have included in the business plan of your bike shop. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately.

Also make sure that the executive summary doesn’t exceed 2 pages in total: it’s supposed to be a summary for investors and lenders who don’t have time to scroll through 40-50 pages, so keep it short and brief.

The executive summary usually consists of 5 major sub-sections:

• Business overview : describe your business in detail, providing information about the business model (franchise vs. independent store) you intend to use and all the products (bikes, accessories, sportswear, etc.) and services (rental, repair, etc.) customers can find in your shop
• Market analysis : the market analysis segment will contain an overview of the expected market size , target audience, and demography. Also provide here a quick overview of your competitors, your strengths & weaknesses (think SWOT analysis ) and how your bike shop differ vs. competition
• People : first, introduce your bike shop’s management. Provide a brief (no more than a couple of sentences each) of the experience and track record of the team. Also, speak about your hiring plans: in other words, how you intend to run the business (what are the different teams and how many employees will you hire?)
• Financial plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? You can also include here a chart with your key financials (revenue, gross profit, net profit )
• Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?

Bike Shop Financial Model

Download an expert-built 5-year Excel financial model for your business plan

2. Bike Shop Business Overview

This is the perfect time to give the lenders a detailed overview of your bike shop. What type of bike shop are you opening? What products and services will you offer? Use the following questions to guide you:

• Why are you starting a bike shop today? 
• Where exactly is your bike shop located? 
• Why did you choose that location? 
• What type of bike shop are you opening?
• Which products and services will you provide? Will you sell bikes or rent them as well?
• Will you offer repair services?
• What will be your pricing strategy ? 
• What will be your opening days and operating hours? 
• What will be the legal structure of your company?

a) History of the Project

Any business overview must start with explaining the history of the project. There are 2 components here:

• Passion & experience of the business owner
• Rationale behind starting a bike shop today

Passion & experience

There’s nothing more appealing to investors and lenders than finding a business owner who has a strong passion for the industry they evolve in. Same goes for cycling.

Prior experience will make your story more believable, making it easier for the lenders and other financial bodies to fund your project. There’s no harm if you don’t possess the relevant experience. But, if so, be sure to demonstrate your ability to run a successful business. 

After demonstrating your ability to run the business, give enough justifications that this is the right time to invest in a bike shop business. For example, there may not be any specialised bike shop within a 25-mile radius selling high-quality bicycle racing brands and where bike lovers can get repair services from bicycle experts.

b) Business Model

What type of bike shop will you open? You can start a new bike shop from scratch or buy a franchise instead. But ensure you understand the pros and cons of every model and what’s best for the area where you plan to operate.

This section should address the following questions:

• Will you sell and/or rent bikes as well?
• Will you partner exclusively with selected brands to offer their bikes and accessories?
• Will you target a specific age group? (children vs. adults)  
• Will you provide special services/add-ons? (bike repair, servicing, advice, etc.)
• Will you offer an online platform for selling your bikes (ecommerce)? 

Your store may target professional cyclers or local riders. Alternatively, you could be looking to start a large warehouse focusing on online sales. Similarly, you can stock all bicycles, including the electric types, or choose a single category. All in all, choose the best option for your target audience and the location where you plan to open your bike shop.

c) Products & Services

Now that you have gone in details about your bike shop business model, let’s now list out your products and services. In other words, what is your bike shop actually selling?

If the majority of the population are off-road biking enthusiasts, you may want to stock up on mountain bicycles. But if they are average cyclists looking for a a bike for a once-a-month sunday adventure, you might want to offer road bikes instead.

In addition to bikes, there are a number of products you may want to sell: accessories, sportswear, etc.

You may even want to create a one-of-a-kind flagship store with a coffee shop where bike lovers can spend time and meet bike aficionados in store.

Finally, you can offer other supplementary services inside your bike shop, including: bike repairs, parts replacement, routine maintenance and bike rental.

d) Pricing Strategy

In addition to products and services, make sure to add details about your pricing strategy.

For example, you can compile a pricing list outlining the average price per product and/or service. When it comes to the products, keep it simple and set a pricing range by category (road bike, mountain bike, hybrid bike, etc.).

Adding a pricing table is very useful as it helps lenders and investors to tie your pricing strategy with your financial projections later on. 

e) Legal Structure

Finally, your business overview section should specify what type of business structure you want. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

3. Bike Shop Market Overview

Starting a bike shop business only makes sense if you understand the market you’re in.

For instance, if you’re setting up your facility near a college where many students need cheap bikes for frequent commuting, stocking budget-friendly models for road cycling might make more sense vs. expensive brands.

However, if the region is dominated by off-road enthusiasts obsessed with weekend adventures, prioritize the all-weather mountain bikes.

When assessing your market, be sure to address the following aspects: 

• Bike shop industry size & growth : how big is the bike industry in your area? What is its growth/decline rate, and what factors contribute to its growth/decline?
• Competition overview : how many competitors are there? How do they compare vs. your business? How can you differentiate yourself from them?
• Customer analysis : who is your target market ? What type of bikes / bike sports do they prefer? How regularly do they purchase/rent bikes? How much do they spend on average on bikes & accessories?

a) Bike Shop Industry Size & Growth

How big is the bike shop industry in the us.

The market size of the bike industry in the US is estimated to be about $6.9 billion in 2021, and is expected to grow at a CAGR of 6.1% from 2022 to 2027.

18.5 million bikes were sold in the US alone in 2021: that’s an average of $372 per bike.

When it comes to the bike shops, there were about 7,000 bicycle shops in the US: that’s an average annual turnover of $985,000 per bike shop.

How big is the bike shop industry in your area?

After getting a clear picture of the US biking industry, narrow down to your location. It’s possible that you won’t find the size of the market anywhere (at least not for free). In which case, read our article on how to estimate TAM, SAM and SOM for your startup. Let’s see how to do it below:

We know that the average bike shop has an annual turnover of $985,000. So if there are 10 bike shops in your city for example, you can assume that the bicycle industry in your city is worth ~$10 million.

How fast is the bike shop industry growing in your city?

Looking at publicly available reports online, we know that the average annual growth of the industry was 6.1% from 2017 to 2022 . But what about where you live?

US national averages can be a great addition to your business plan, yet they don’t necessarily help to assess the biking industry where you plan to operate. For example, the industry might be growing in the US, but declining in your region for a number of reasons (decreasing population or disposable income, etc.).

Instead, you can use the number of bike shops as a proxy to find the market growth in your area. For instance, if there were 18 bike shops in 2018 and 20 in 2022, the average annual growth rate is ~3%, slightly lower than the US average.

b) Competition Overview 

You may face stiff competition when opening your bike shop. So before doing so you may want to learn from your competitors, identifying their strengths and weaknesses and the major reasons behind their respective successes and challenges. 

Get accurate information about their marketing strategies, products and services, and additional features that add value to their business. There’s no harm in visiting the stores in person to get first-hand information about your competitors.

Here is a sample table that you can use:

c) Customer Analysis

After assessing the level of competition in the region, switch your attention to your target market. Get a clear picture of your target customer by answering the following questions, among others:

• Average spend on bikes (purchasing or renting) per year?
• Frequency of visits (how often do they visit a bike shop?)
• What type of bike(s) do they prefer?
• What type of services do they need?
• What do they like or dislike in the existing bike shops in the region?

4. Sales & Marketing Strategy

This is the segment where you outline your customer acquisition strategy. Try to answer the following questions:

• What is your Unique Selling Point ( USP )?
• What are the different marketing strategies you will use? 
• How do you intend to track the success of your marketing strategy? 
• What is your customer acquisition cost (CAC)? 
• What is your marketing budget? 
• What introductory promos and offers do you intend to provide for attracting new customers? 

What marketing channels do bike shops use?

Some of the most popular marketing channels used by bike shops include:

• Local listing & customer reviews (Google Business)
• PPC ads, Facebook ads, etc. 
• Content marketing on social media and blogs
• Word of mouth, recommendations
• Loyalty programs

What is Your Unique Selling Point (USP)?

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors. A few examples of USPs are:

• Pricing : you may have affordable prices vs. competitors for the bikes you’re selling and/or the services you offer
• Extra services : add-on services like bike repairs competitors might not offer
• Partnerships with leading brands that refer you to their customers (via email marketing) and/or offer you special rates for their products (bikes, accessories, sportswear).
• Uniqueness : you may be the exclusive distributor of a well-known brand in the region
• Location : your bike shop may be located closer to your target audience and/or closer to a busy street
• Promos and offers : you offer discounts for frequent customers, etc.

5. Management & People

You must address two things here:

• The management team and their experience/track record
• The organizational structure : different team members and who reports to whom?

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your bike shop.

Describe here their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.

Organization Structure

Even if you haven’t already hired an assistant manager, salesmen, bike mechanics and other relevant staff members, you may want to provide a chart of the organizational structure defining the hierarchy of reporting like the one below.

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan for a bike shop.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your bike shop is an attractive investment.

There should be 2 sections to your financial plan section:

• The startup costs of your project (if you plan to start a new bike shop, renovate your store, etc.)
• The 5-year financial projections

a) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For a bike shop, startup costs are all the expenses you incur before you open your shop and start making sales. These expenses typically are:

• The lease security deposit (if you rent) or the downpayment if you buy the real estate
• Renovations and improvements
• Upfront Inventory

Of course, the startup costs depend on a number of factors: the size of your bike shop, its location, the quality of the existing shop, the furniture and design, whether you buy or rent the space, etc.

On average, it costs $47,500 to $237,500 to open a small bike shop (2,000 sq. ft.) with 3 employees in the US .

Note that these costs are for illustrative purposes and may not be fully relevant for your business. For more information on how much it costs to open and run a bike shop, read our article here .

b) Financial Projections

In addition to startup costs, you will now need to build a solid 5-year financial model for your bike shop.

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in the business plan of your bike shop.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

• How much revenue do you expect to generate over the next 5 years?
• When do you expect to break even?
• How much cash will you burn until you get there?
• What’s the impact of a change in pricing (say 15%) on your margins?
• What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

• The number of customers over time ;
• Your expected revenue ;
• Operating costs to run the business ;
• Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing, the cost of goods sold (the cost you incur to buy the bikes from the manufacturer) and your sales volume. Indeed, a small change in these assumptions may have a significant impact on your revenues and profits.

7. Use of Funds

This is the last section of your bike shop business plan. Now that we have explained what your bike shop’s business model is, what you sell and to whom, your marketing strategy, etc., this section must now answer the following questions:

• How much funding do you need?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

• What percentage of the total funding the loan represents?
• What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

• What percentage ownership are you selling as part of this funding round?
• What is the corresponding valuation of your business?

Use of Funds

Any business plan for a bike shop should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment in paying your employees’ salaries? Or will it cover mostly the cost for the lease deposit and the upfront inventory costs?

We also strongly recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

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How to start a Motorcycle Shop Business?

Explore Options to Get a Business Plan.

Are you interested in starting your own Motorcycle Shop Business?

Why write a business plan?

• Business Plans can help to articulate and flesh out the business’s goals and objectives. This can be beneficial not only for the business owner, but also for potential investors or partners
• Business Plans can serve as a roadmap for the business, helping to keep it on track and on target. This is especially important for businesses that are growing and evolving, as it can be easy to get sidetracked without a clear plan in place.
• Business plans can be a valuable tool for communicating the business’s vision to employees, customers, and other key stakeholders.
• Business plans are one of the most affordable and straightforward ways of ensuring your business is successful.
• Business plans allow you to understand your competition better to critically analyze your unique business proposition and differentiate yourself from the market.
• Business Plans allow you to better understand your customer. Conducting a customer analysis is essential to create better products and services and market more effectively.
• Business Plans allow you to determine the financial needs of the business leading to a better understanding of how much capital is needed to start the business and how much fundraising is needed.
• Business Plans allow you to put your business model in words and analyze it further to improve revenues or fill the holes in your strategy.
• Business plans allow you to attract investors and partners into the business as they can read an explanation about the business.
• Business plans allow you to position your brand by understanding your company’s role in the marketplace.
• Business Plans allow you to uncover new opportunities by undergoing the process of brainstorming while drafting your business plan which allows you to see your business in a new light. This allows you to come up with new ideas for products/services, business and marketing strategies.
• Business Plans allow you to access the growth and success of your business by comparing actual operational results versus the forecasts and assumptions in your business plan. This allows you to update your business plan to a business growth plan and ensure the long-term success and survival of your business.

Business Plan Content

• Executive Summary
• Company Overview
• Industry Analysis
• Consumer Analysis
• Competitor Analysis & Advantages
• Marketing Strategies & Plan
• Plan of Action
• Management Team

The financial forecast template is an extensive Microsoft Excel sheet with Sheets on Required Start-up Capital, Salary & Wage Plans, 5-year Income Statement, 5-year Cash-Flow Statement, 5-Year Balance Sheet, 5-Year Financial Highlights and other accounting statements that would cost in excess of £1000 if obtained by an accountant.

The financial forecast has been excluded from the business plan template. If you’d like to receive the financial forecast template for your start-up, please contact us at [email protected] . Our consultants will be happy to discuss your business plan and provide you with the financial forecast template to accompany your business plan.

Instructions for the Business Plan Template

To complete your perfect Motorcycle Shop business plan, fill out the form below and download our Motorcycle Shop business plan template. The template is a word document that can be edited to include information about your Motorcycle Shop business. The document contains instructions to complete the business plan and will go over all sections of the plan. Instructions are given in the document in red font and some tips are also included in blue font. The free template includes all sections excluding the financial forecast. If you need any additional help with drafting your business plan from our business plan template, please set up a complimentary 30-minute consultation with one of our consultants.

Ongoing Business Planning

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Website Design & Development for Motorcycle Shop Businesses

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Motorcycle Shop Business Plan Template FAQs

What is a business plan for a/an motorcycle shop business, how to customize the business plan template for a motorcycle shop business, what financial information should be included in a motorcycle shop business plan, are there industry-specific considerations in the motorcycle shop business plan template, how to conduct market research for a motorcycle shop business plan, what are the common challenges when creating a business plan for a motorcycle shop business, how often should i update my motorcycle shop business plan, can i use the business plan template for seeking funding for a motorcycle shop business, what legal considerations are there in a motorcycle shop business plan.

Motorcycle Dealership Business Plan Template & Guidebook

If you’re considering starting a motorcycle dealership, the #1 Motorcycle Dealership Business Plan Template & Guidebook offers an invaluable resource for business owners looking for clear direction and concrete advice. This comprehensive guidebook provides all the information and tools you need to construct a strategic plan that can steer your decisions in the right direction and ensure success in your new business.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Motorcycle Dealership Business [11 Steps]

How to Write a Motorcycle Dealership Business Plan in 7 Steps:

1. describe the purpose of your motorcycle dealership business..

The first step to writing your business plan is to describe the purpose of your motorcycle dealership business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a motorcycle dealership business:

Our mission at XYZ Motorcycles is to provide our customers with the highest quality motorcycles and accessories at competitive prices, while ensuring a pleasant and rewarding shopping experience. We strive to be the leading motorcycle dealership in the area by delivering outstanding sales and service to our customers, creating an enjoyable work environment for our employees, and giving back to our local community.

2. Products & Services Offered by Your Motorcycle Dealership Business.

The next step is to outline your products and services for your motorcycle dealership business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your motorcycle dealership business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your motorcycle dealership business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your motorcycle dealership business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a motorcycle dealership business?

• Business license
• Motorcycle parts and accessories
• Motorcycle repair tools and equipment
• Computer equipment and software
• Shop space, including a showroom, office, and service area
• Advertising materials
• Financial resources to cover overhead and payroll expenses
• Security system (alarm, cameras)

5. Management & Organization of Your Motorcycle Dealership Business.

The second part of your motorcycle dealership business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your motorcycle dealership business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Motorcycle Dealership Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a motorcycle dealership business varies based on many different variables, but below are a few different types of startup costs for a motorcycle dealership business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your motorcycle dealership business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your motorcycle dealership business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your motorcycle dealership business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Motorcycle Dealership Business Plans:

Why do you need a business plan for a motorcycle dealership business.

A comprehensive business plan is essential to the success of any business, including a motorcycle dealership business. It serves as a roadmap that outlines the goals and strategies of the business and provides key financial information, such as projected income and expenses. The plan helps the owner evaluate the potential success of the business and determine whether it is an appropriate investment. It also helps the owner to ensure that all legal requirements are met before launching a business. Additionally, a well-crafted plan is often used to secure funding from investors or lenders.

Who should you ask for help with your motorcycle dealership business plan?

It is a good idea to consult an experienced business advisor who specializes in the motorcycle industry for help with creating a business plan for your motorcycle dealership. You may also want to consider seeking advice from an accountant or financial planner. Additionally, local Small Business Development Centers (SBDCs) are often a great resource for small business owners, providing free or low-cost support and guidance throughout the business planning process.

Can you write a motorcycle dealership business plan yourself?

Yes, you can create a motorcycle dealership business plan yourself if you have the necessary resources and knowledge. It is important to research the industry, assess the competition, outline a marketing strategy, and identify potential challenges that may arise. Additionally, you should include financial projections and develop an organized plan for operating the business itself.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

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How to write a business plan for a motorcycle parts manufacturer?

Creating a business plan for a motorcycle parts manufacturer is an essential process for any entrepreneur. It serves as a roadmap that outlines the necessary steps to be taken to start or grow the business, the resources required, and the anticipated financial outcomes. It should be crafted with method and confidence.

This guide is designed to provide you with the tools and knowledge necessary for creating a motorcycle parts manufacturer business plan, covering why it is so important both when starting up and running an established business, what should be included in your plan, how it should be structured, what tools should be used to save time and avoid errors, and other helpful tips.

We have a lot to cover, so let's get to it!

In this guide:

Why write a business plan for a motorcycle parts manufacturer?

What information is needed to create a business plan for a motorcycle parts manufacturer.

• What goes in the financial forecast for a motorcycle parts manufacturer?
• What goes in the written part of a motorcycle parts manufacturer business plan?
• What tool can I use to write my motorcycle parts manufacturer business plan?

Understanding the document's scope and goals will help you easily grasp its structure and content. Before diving into the specifics of the plan, let's take a moment to explore the key reasons why having a motorcycle parts manufacturer business plan is so crucial.

To have a clear roadmap to grow the business

Small businesses rarely experience a constant and predictable environment. Economic cycles go up and down, while the business landscape is mutating constantly with new regulations, technologies, competitors, and consumer behaviours emerging when we least expect it.

In this dynamic context, it's essential to have a clear roadmap for your motorcycle parts manufacturer. Otherwise, you are navigating in the dark which is dangerous given that - as a business owner - your capital is at risk.

That's why crafting a well-thought-out business plan is crucial to ensure the long-term success and sustainability of your venture.

To create an effective business plan, you'll need to take a step-by-step approach. First, you'll have to assess your current position (if you're already in business), and then identify where you'd like your motorcycle parts manufacturer to be in the next three to five years.

Once you have a clear destination for your motorcycle parts manufacturer, you'll focus on three key areas:

• Resources: you'll determine the human, equipment, and capital resources needed to reach your goals successfully.
• Speed: you'll establish the optimal pace at which your business needs to grow if it is to meet its objectives within the desired timeframe.
• Risks: you'll identify and address potential risks you might encounter along the way.

By going through this process regularly, you'll be able to make informed decisions about resource allocation, paving the way for the long-term success of your business.

To maintain visibility on future cash flows

Businesses can go for years without making a profit, but they go bust as soon as they run out of cash. That's why "cash is king", and maintaining visibility on your motorcycle parts manufacturer's future cash flows is critical.

How do I do that? That's simple: you need an up-to-date financial forecast.

The good news is that your motorcycle parts manufacturer business plan already contains a financial forecast (more on that later in this guide), so all you have to do is to keep it up-to-date.

To do this, you need to regularly compare the actual financial performance of your business to what was planned in your financial forecast, and adjust the forecast based on the current trajectory of your business.

Monitoring your motorcycle parts manufacturer's financial health will enable you to identify potential financial problems (such as an unexpected cash shortfall) early and to put in place corrective measures. It will also allow you to detect and capitalize on potential growth opportunities (higher demand from a given segment of customers for example).

To secure financing

A detailed business plan becomes a crucial tool when seeking financing from banks or investors for your motorcycle parts manufacturer.

Investing and lending to small businesses are very risky activities given how fragile they are. Therefore, financiers have to take extra precautions before putting their capital at risk.

At a minimum, financiers will want to ensure that you have a clear roadmap and a solid understanding of your future cash flows (like we just explained above). But they will also want to ensure that your business plan fits the risk/reward profile they seek.

This will off-course vary from bank to bank and investor to investor, but as a rule of thumb. Banks will want to see a conservative financial management style (low risk), and they will use the information in your business plan to assess your borrowing capacity — the level of debt they think your business can comfortably handle — and your ability to repay the loan. This evaluation will determine whether they'll provide credit to your motorcycle parts manufacturer and the terms of the agreement.

Whereas investors will carefully analyze your business plan to gauge the potential return on their investment. Their focus lies on evidence indicating your motorcycle parts manufacturer's potential for high growth, profitability, and consistent cash flow generation over time.

Now that you recognize the importance of creating a business plan for your motorcycle parts manufacturer, let's explore what information is required to create a compelling plan.

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Writing a motorcycle parts manufacturer business plan requires research so that you can project sales, investments and cost accurately in your financial forecast.

In this section, we cover three key pieces of information you should gather before drafting your business plan!

Carrying out market research for a motorcycle parts manufacturer

Carrying out market research before writing a business plan for a motorcycle parts manufacturer is essential to ensure that the financial projections are accurate and realistic.

Market research helps you gain insight into your target customer base, competitors, pricing strategies and other key factors which can have an impact on the commercial success of your business.

In particular, it is useful in forecasting revenue as it provides valuable data regarding potential customers’ spending habits and preferences.

Your market research might reveal that motorcycle parts manufacturers could see an increase in demand for high-end and custom parts. It could also show that the market for vintage and antique parts may be growing.

This information can then be used to create more accurate financial projections which will help investors make informed decisions about investing in your motorcycle parts manufacturer.

Developing the sales and marketing plan for a motorcycle parts manufacturer

Budgeting sales and marketing expenses is essential before creating a motorcycle parts manufacturer business plan.

A comprehensive sales and marketing plan should provide an accurate projection of what actions need to be implemented to acquire and retain customers, how many people are needed to carry out these initiatives, and how much needs to be spent on promotions, advertising, and other aspects.

This helps ensure that the right amount of resources is allocated to these activities in order to hit the sales and growth objectives forecasted in your business plan.

The staffing and capital expenditure requirements of a motorcycle parts manufacturer

Whether you are starting or expanding a motorcycle parts manufacturer, it is important to have a clear plan for recruitment and capital expenditures (investment in equipment and real estate) in order to ensure the success of the business.

Both the recruitment and investment plans need to be coherent with the timing and level of growth planned in your forecast, and require appropriate funding.

A motorcycle parts manufacturer might incur staffing costs such as salaries for the production workers, supervisors, and engineers involved in the manufacturing process. In addition, they may need to purchase or rent equipment such as machines, tools, and storage containers to produce the parts. They may also need to purchase raw materials, such as metal or plastic, to create the components.

In order to create a realistic financial forecast, you will also need to consider the other operating expenses associated with running the business on a day-to-day basis (insurance, bookkeeping, etc.). 

Once you have all the necessary information to create a business plan for your motorcycle parts manufacturer, it is time to start creating your financial forecast.

What goes into your motorcycle parts manufacturer's financial forecast?

The objective of the financial forecast of your motorcycle parts manufacturer's business plan is to show the growth, profitability, funding requirements, and cash generation potential of your business over the next 3 to 5 years.

The four key outputs of a financial forecast for a motorcycle parts manufacturer are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

The projected P&L statement for a motorcycle parts manufacturer shows how much revenue and profits your business is expected to generate in the future.

Ideally, your motorcycle parts manufacturer's P&L statement should show:

• Healthy growth - above inflation level
• Improving or stable profit margins
• Positive net profit

Expectations will vary based on the stage of your business. A startup will be expected to grow faster than an established motorcycle parts manufacturer. And similarly, an established company should showcase a higher level of profitability than a new venture.

The forecasted balance sheet of your motorcycle parts manufacturer

The projected balance sheet of your motorcycle parts manufacturer will enable the reader of your business plan to assess the overall financial health of your business.

It shows three elements: assets, liabilities and equity:

• Assets: are productive resources owned by the business, such as equipment, cash, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors, lenders, and other entities, such as accounts payable (money owed to suppliers).
• Equity: includes the sums invested by the shareholders or business owners and the profits and losses accumulated by the business to date (which are called retained earnings). It is a proxy for the value of the owner's stake in the business.

Analysing your motorcycle parts manufacturer projected balance sheet provides an understanding of your motorcycle parts manufacturer's working capital structure, investment and financing policies.

In particular, the readers of your plan can compare the level of financial debt on the balance sheet to the equity value to measure the level of financial risk (equity doesn't need to be reimbursed, while financial debt must be repaid, making it riskier).

They can also use your balance sheet to assess your motorcycle parts manufacturer's liquidity and solvency:

• A liquidity analysis: focuses on whether or not your business has sufficient cash and short-term assets to cover its liabilities due in the next 12 months.
• A solvency analysis: takes and longer view to assess whether or not your business has the capacity to repay its debts over the medium-term.

The cash flow forecast

As we've seen earlier in this guide, monitoring future cash flows is the key to success and the only way of ensuring that your motorcycle parts manufacturer has enough cash to operate.

As you can expect showing future cash flows is the main role of the cash flow forecast in your motorcycle parts manufacturer business plan.

It is best practice to organise the cash flow statement by nature in order to show the cash impact of the following areas:

• Cash flow generated from operations: the operating cash flow shows how much cash is generated or consumed by the business's commercial activities
• Cash flow from investing activities: the investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.) either to maintain the business's equipment or to expand its capabilities
• Cash flow from financing activities: the financing cash flow shows how much cash is raised or distributed to financiers

Looking at the cash flow forecast helps you to make sure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

Your motorcycle parts manufacturer business plan will normally include both yearly and monthly cash flow forecasts so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The initial financing plan, also known as a sources and uses table, is a valuable resource to have in your business plan when starting your motorcycle parts manufacturer as it reveals the origins of the money needed to establish the business (sources) and how it will be allocated (uses).

Having this table helps show what costs are involved in setting up your motorcycle parts manufacturer, how risks are shared between founders, investors and lenders, and what the starting cash position will be. This cash position needs to be sufficient to sustain operations until the business reaches a break-even point.

Now that you have a clear understanding of what goes into the financial forecast of your motorcycle parts manufacturer business plan, let's shift our focus to the written part of the plan.

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The written part of a motorcycle parts manufacturer business plan

The written part of a motorcycle parts manufacturer business plan plays a key role: it lays out the plan of action you intend to execute to seize the commercial opportunity you've identified on the market and provides the context needed for the reader to decide if they believe your plan to be achievable and your financial forecast to be realistic.

The written part of a motorcycle parts manufacturer business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The executive summary, the first section of your motorcycle parts manufacturer's business plan, serves as an inviting snapshot of your entire plan, leaving readers eager to know more about your business.

To compose an effective executive summary, start with a concise introduction of your business, covering its name, concept, location, history, and unique aspects. Share insights about the services or products you intend to offer and your target customer base.

Subsequently, provide an overview of your motorcycle parts manufacturer's addressable market, highlighting current trends and potential growth opportunities.

Then, present a summary of critical financial figures, such as projected revenues, profits, and cash flows.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Lastly, address any funding needs in the "ask" section of your executive summary.

2. The presentation of the company

As you build your motorcycle parts manufacturer business plan, the second section deserves attention as it delves into the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide valuable insights into the legal structure of the business, the identities of the owners, and their respective investments and ownership stakes. This level of transparency is vital, particularly if you're seeking financing, as it clarifies which legal entity will receive the funds and who holds the reins of the business.

Moving to the location part, you'll offer a comprehensive view of the company's premises and articulate why this specific location is strategic for the business, emphasizing factors like catchment area, accessibility, and nearby amenities.

When describing the location of your motorcycle parts manufacturer, you may want to focus on the potential for growth in the area. You could emphasize the region's access to transportation networks, which could make it easy to move goods to and from the factory. Additionally, you could highlight the potential for a skilled workforce in the area, which might make it easier to hire the right people for the job. Finally, you could point to the region's potential for economic development, which could create cost savings and other advantages for the manufacturer.

Lastly, you should introduce your esteemed management team. Provide a thorough explanation of each member's role, background, and extensive experience.

It's equally important to highlight any past successes the management team has achieved and underscore the duration they've been working together. This information will instil trust in potential lenders or investors, showcasing the strength and expertise of your leadership team and their ability to deliver the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of what your company offers, who are the target customers, and what distribution channels are part of your go-to-market. 

For example, your motorcycle parts manufacturer might offer a variety of motorcycle parts such as tires, brakes, engines, and lighting. Additionally, the company might offer services such as installation and repairs, as well as custom parts fabrication and painting. These products and services would allow customers to customize their motorcycles to better suit their individual needs and preferences.

4. The market analysis

When outlining your market analysis in the motorcycle parts manufacturer business plan, it's essential to include comprehensive details about customers' demographics and segmentation, target market, competition, barriers to entry, and relevant regulations.

The primary aim of this section is to give the reader an understanding of the market size and appeal while demonstrating your expertise in the industry.

To begin, delve into the demographics and segmentation subsection, providing an overview of the addressable market for your motorcycle parts manufacturer, key marketplace trends, and introducing various customer segments and their preferences in terms of purchasing habits and budgets.

Next, shift your focus to the target market subsection, where you can zoom in on the specific customer segments your motorcycle parts manufacturer targets. Explain how your products and services are tailored to meet the unique needs of these customers.

For example, your target market might include hobbyists who are passionate about customizing their motorcycles. These customers are likely to be interested in investing in high-quality parts to upgrade their motorcycle's performance. They may also be willing to spend extra money on custom parts to make their motorcycles unique.

In the competition subsection, introduce your main competitors and explain what sets your motorcycle parts manufacturer apart from them.

Finally, round off your market analysis by providing an overview of the main regulations that apply to your motorcycle parts manufacturer.

5. The strategy section

When crafting the strategy section of your business plan for your motorcycle parts manufacturer, it's important to cover several key aspects, including your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, clearly explain what sets your company apart from competitors. This is particularly critical if you're a startup, as you'll be trying to establish your presence in the marketplace among entrenched players.

The pricing strategy subsection should demonstrate how you aim to maintain profitability while offering competitive prices to your customers.

For the sales & marketing plan, outline how you plan to reach and acquire new customers, as well as retain existing ones through loyalty programs or special offers.

In the milestones subsection, detail what your company has achieved thus far and outline your primary objectives for the coming years by including specific dates for expected progress. This ensures everyone involved has clear expectations.

Lastly, in the risks and mitigants subsection, list the main risks that could potentially impact the execution of your plan. Explain the measures you've taken to minimize these risks. This is vital for investors or lenders to feel confident in supporting your venture - try to proactively address any objection they might have.

Your motorcycle parts manufacturer could face a number of risks. For example, they may not be able to secure necessary materials to produce parts, or they could experience a disruption in their supply chain. This could lead to a shortage of parts, or delays in production, which could in turn lead to a loss of customers and revenue. Additionally, they may face the threat of competitors entering the market, which could lead to decreased market share and decreased profitability.

6. The operations section

The operations of your motorcycle parts manufacturer must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your motorcycle parts manufacturer - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You may have key assets such as the designs for parts and components, as well as the machinery and tools used to manufacture them. Your Intellectual Property could include patents on certain parts or components, or it might include copyrights for designs or logos.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we discussed earlier in this guide.

Now that you have a clear idea of what goes into a motorcycle parts manufacturer business plan, let's look at some of the tools you can use to create yours efficiently.

What tool should I use to write my motorcycle parts manufacturer's business plan?

In this section, we will be reviewing the two main options for writing a motorcycle parts manufacturer business plan efficiently:

• Using specialized software,
• Outsourcing the drafting to the business plan writer.

Using an online business plan software for your motorcycle parts manufacturer's business plan

Using online business planning software is the most efficient and modern way to create a motorcycle parts manufacturer business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

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Hiring a business plan writer to write your motorcycle parts manufacturer's business plan

Outsourcing your motorcycle parts manufacturer business plan to a business plan writer can also be a viable option.

Business plan writers are experienced in writing business plans and adept at creating financial forecasts without errors. Furthermore, hiring a consultant can save you time and allow you to focus on the day-to-day operations of your business.

However, hiring business plan writers is expensive as you are paying for the software used by the consultant, plus their time, and their profit margin of course.

From experience, you need to budget at least £1.5k ($2.0k) excluding tax for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders or investors).

You also need to be careful when seeking investment. Investors want their money to be used to grow the business, not spent on consulting fees. Therefore, the amount you spend on business plan writing services (and other consulting services such as legal services) needs to be negligible relative to the amount raised.

The other drawback is that you usually don't own the business plan itself: you just get the output, while the actual document is saved in the consultant's business plan software - which makes it difficult to maintain the document up to date without hiring the consultant on a retainer.

For these reasons, outsourcing the motorcycle parts manufacturer business plan to a business plan writer should be considered carefully, weighing both the advantages and disadvantages of hiring outside help.

Ultimately, it may be the right decision for some businesses, while others may find it beneficial to write their business plan using online software.

Why not create your motorcycle parts manufacturer's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a motorcycle parts manufacturer business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my motorcycle parts manufacturer business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

• Word processors don't include instructions and examples for each part of your business plan
• Word processors don't update your numbers automatically when they change in your forecast
• Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating a motorcycle parts manufacturer business plan for some entrepreneurs, it is by far not the best or most efficient solution.

• Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
• A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
• A business plan has 2 main parts: a financial forecast outlining the funding requirements of your motorcycle parts manufacturer and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your motorcycle parts manufacturer business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.

Also on The Business Plan Shop

• How to write a business plan to secure a bank loan?
• Key steps to write a business plan?
• Top mistakes to avoid in your business plan

Do you know entrepreneurs interested in starting or growing a motorcycle parts manufacturer? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Bicycle Shop Business Plan Template

Written by Dave Lavinsky

Bicycle Shop Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their bicycle shops. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a bicycle shop business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your bicycle shop as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a bicycle shop or grow your existing bicycle  shop, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your bicycle shop to improve your chances of success. Your bicycle shop business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Bicycle Shops

With regards to funding, the main sources of funding for a bicycle shop are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for bicycle shop companies.

Finish Your Business Plan Today!

How to write a business plan for a bicycle shop.

If you want to start a bicycle shop or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your bicycle shop business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of bicycle shop you are running and the status. For example, are you a startup, do you have a bicycle shop that you would like to grow, or are you operating a chain of bicycle shops?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the bicycle shop industry.
• Discuss the type of bicycle shop you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of bicycle shop you are operating.

For example, you might specialize in one of the following types of bicycle shops:

• Custom bicycle shop: This type of bicycle shop specializes in designing and building custom bicycles for customers.
• Full-service bicycle shop: This type of business sells a wide range of bicycles, parts, and accessories as well as providing services such as bicycle maintenance and repair.
• Specialty bicycle shop: This type of business specializes in  a particular type of bicycle such as mountain bikes, tandem bicycles, unicycles, or racing bicylces.

In addition to explaining the type of bicycle shop you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the number of bicycles sold, reaching $X amount in revenues, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the bicycle shop industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the bicycle shop industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your bicycle shop business plan:

• How big is the bicycle shop industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your bicycle shop? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your bicycle shop business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of bicycle shop you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other bicycle shops.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of sports shops, do-it-yourself bicycle repair tutorials, or big box retailers that sell bicycles. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of bicycle shop are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you make it easier for customers to acquire your product or service?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a bicycle shop business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of bicycle  shop that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide bicycle repair services, custom builds, or bicycle accessories?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your bicycle  shop. Document where your company is situated and mention how the site will impact your success. For example, is your bicycle  shop located in a busy retail district, a business district, a standalone store, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your bicycle shop marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your bicycle  shop, including answering calls, greeting customers, cleaning the shop, collecting payments, and organizing inventory, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your bicycle  shop to a new city.  

Management Team

To demonstrate your bicycle shop’s potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing bicycle shops. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a bicycle shop or successfully running a small bicycle repair operation.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you employ 3 sales associates, and will each associate sell 10 bicycles per day? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your bicycle shop, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a bicycle shop:

• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your bicycles shop location lease or a list of brands you carry.  

Writing a business plan for your bicycle shop is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the bicycle shop industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful bicycle shop.  

Bicycle Shop Business Plan Template FAQs

What is the easiest way to complete my bicycle shop business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your bicycle shop business plan.

How Do You Start a Bicycle Shop Business?

Starting a bicycle shop business is easy with these 14 steps:

• Choose the Name for Your Bicycle Shop Business
• Create Your Bicycle Shop Business Plan
• Choose the Legal Structure for Your Bicycle Shop Business
• Secure Startup Funding for Bicycle Shop Business (If Needed)
• Secure a Location for Your Business
• Register Your Bicycle Shop Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Bicycle Shop Business
• Buy or Lease the Right Bicycle Shop Business Equipment
• Develop Your Bicycle Shop Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Bicycle Shop Business
• Open for Business

Don’t you wish there was a faster, easier way to finish your Bicycle Shop business plan?

OR, Let Us Develop Your Plan For You

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