Motorbikes are a great way to get from place to place, and they also make for an excellent hobby! As a motorcyclist, there are several fantastic benefits to riding a motorbike. Motorcycles allow you to experience tranquil journeys, enjoy quick and easy commuting, and meet like-minded groups who share the same hobby. Not to mention, riding a motorcycle looks super cool!
There remains a significant demand for motorbikes, but where can people buy their dream one? A large motorbike dealership can be costly while purchasing a second-hand bike can lead to several issues, and it just won’t have the same premium quality. If you are a business owner, then the motorcycle industry is a fantastic opportunity that is not to be missed.
Motorbike Accident Claims is a solicitor service run by the legal firm Hutcheon Law. Motorbike Claims was formed to offer specialist advice on motorbike accidents while also helping injured motorcyclists claim compensation. As experts on motorbikes, they have provided Talk Business with some pointers on how a business owner can set up their own motorbike dealership.
Do your research & planning
First things first, you need to start researching and planning your potential motorbike dealership! This part of the process is not just about setting you on the road to success but also helping you conclude whether or not it is the right decision for you. We recommend that you start by looking into the demand for motorbikes within your intended service area. It would best if you considered whether the area is home to people interested in riding a motorbike and whether the town is motorbike friendly.
Aim to determine your target audience as soon as possible, including the ages and genders most likely to be attracted to your dealership. There are typically local statistics available that will inform you of the standard demographics, the types of motorbikes people most often purchase, and whether new bikes or second-hand models are most preferred. Your customers may be looking for a commuting motorbike, an off-road adventure bike, or a collectable.
Next up, start researching potential competitors that currently serve in your city. We recommend that you look at the types of motorbikes that they sell, what their prices are like, and whether they offer additional services such as repairs and MOT testing. You can also examine their digital activity, including website, social media, and marketing campaigns. At the end of this research, you should make a judgment call on whether you can compete with them.
Early on during the planning stage, you must determine your business’s unique selling points. You should ask yourself, why will a customer choose you over anyone else? Will your prices be more affordable? Will you offer unbeatable offers? Will you sell motorbike models that cannot be purchased anywhere else? Be sure to identify how you will stand out from the rest.
With the plan starting to become a reality, do you know where your dealership will be based? Unless you plan to operate online-only, you need to search the land for the perfect spot to set up camp. There may be ready-built premises that you can move into or land that is suitable for development. There are several factors to consider, and choosing the wrong location can be disastrous. Ultimately, you want your dealership to be easily accessible, offer nearby parking, and be visible to people walking or driving past. Not to mention, you will want to avoid being close to competitors that you may struggle to beat.
Register your motorbike dealership
If you’ve reached this stage, then chances are you are more than confident that this is the correct path for you. It’s time to start making the business a formal and legal entity! In the UK, you will need to set up a company through the government. You can usually achieve this through the government’s website. There are a few options available to you, including registering as a sole trader, a limited company, or a partnership. You will need to state a company name, but this can differ from your eventual trading name.
As part of the process of legally setting up your business, there are different scenarios based on the industry, the services or products you intend to sell, and how you plan to operate. We would highly recommend that you speak to a specialist to get all the advice you need. For example, if the business involves registering new vehicles for the motor trade, you need to join a government scheme. If you plan to offer MOT testing, you will require authorisation from the Driver and Vehicle Standards Agency. If you provide finance, your company will need consumer credit authorisation. You get the drift – there’s a lot of logistics involved depending on your intentions!
What motorbikes and services will your motorbike dealership offer?
When your business is registered and you’ve moved into your all-new premises, it’s time to start focussing on what you will offer your customers. Thankfully, your products and services don’t have to remain the same throughout your company’s lifetime. You can add or remove products and services at any point. However, we recommend sticking with your plan as identified above for as much as possible. It would be best if you offered motorbike models that are most suited to your target audience. As for services, your premises may have been built to accommodate certain services, such as repairs and testing.
There are several factors to consider when choosing your product inventory, including the motorbike’s size and brand and whether it is intended for commuting or off-road adventures. Similarly, you need to consider whether to prioritise new bikes or second-hand models, or a combination of both. Where you source the motorbikes is another critical consideration. With all that in mind, make sure that you set prices that are competitive but profitable. It may be wise to offer flexible payment options, including credit finance as well as outright purchase. Services such as MOT testing and motorbike repairs can be a great way to boost your revenue and gain loyal customers.
Keep your marketing efforts up
Finally, it’s time to focus on your marketing efforts! With everything up and running, the maintenance of your business largely relies on your marketing campaigns. It is your marketing strategy that will help attract new customers and re-engage previous customers. Offline marketing activities can include promoting your dealership with visible promotions outside the store. In modern times, digital marketing is vastly important. This can include regularly updating your website and making use of paid advertising via social platforms and Google Ads.