Opening a new shop?

[Pongo]

You will have to deal with Federal and Provincial Govts. Collect GST and PST and remit it on time. If you employ anyone as well there will be Payroll tax also workers comp. All these things can really detract from the enjoyment of running your own business and add up to many additional hours of book keeping/paperwork.

What paul246 has to say sounds the best. Start small, borrow little and if you ever find you aren’t enjoying it, get out…. Nothing worse than running a business you don’t enjoy, everyone suffers.

Start up businesses often take 3 years or more to turn a profit and the majority fail.

Have a plan for bringing in income in the winter months too.

I hope it works well for you when you take the plunge.

[mattwells]

Canucker,

One of my friends (who has started, made succeed and sold 4 or 5 different businesses) says that you need to plan on losing money for at least 5 years.

I think that you have 2 options, make a nice, clean, fancy H-D'esque shop (not my cup of tea) or a laid back relaxed shop that doesn't necessarily carry alot of new bikes, but has everything you need and sells nice used bikes (the local shop I go to makes all its money off of HD accessories and turns a few used bikes over).

my .02 is go for a neighborhood friendly shop that people will like to come to.

[plasticweld]

Thanks guys; If anyone else has any advice or info, let me know. If and when I get around to doing it, I'd want it to be a bit different than what's out there. I like the above ideas!

I started my business from nothing but determination and a good income from another successful company. With out boring the rest of you with the story you can go to our web page http://empiregp.com/ and go to the EmpireGP icon at the top of the page and read how I started.


I started out small and bought and sold bikes that I paid cash for and re-sold them I stuck with bikes I knew and bikes I could get a great deal on. The amount of money required to start any existing motorcycle shop is huge compared to what it takes to buy ten bikes to get started with. This is a good time of year to buy; any bike you buy today is worth 20 to 25 percent more in 3 months, If your careful and know what your buying and buy it right you could not do any better with your money as far as an investment.

I am specialized now and paint bikes for others instead of myself, I have employees and overhead like I never had when I sold 20 bikes a year. I am fortunate that I make a decent living at what I do and really enjoy it.

I would personally advise against buying a dealership unless you have that kind of cash already invested in something else and your not happy with it. My guess is that by the time you learn the ropes of running any business it will take awhile to show a profit. If you start out small your mistakes are never so large that the put you out of business.

If you want more info I would be happy to share with you some of what I have done, you may at least be able to learn from some of the mistakes I have made along the way. You should find other owners who are willing to share some of their advice it might save you from making some of the mistakes we all have made over the years

The best of luck to you... being self employed in this business means long days and lots of them but it can be very rewarding..Bob

[2wheel]

There is some good advice so far on this thread. I too looked into starting a bike dealership in Ontario (London). Our government will not make it easy on you! Like noted above, there are permits and regulations, etc. etc. Did you know you have to pay $1000 a year for a dealers permit in Ontario?

I was looking at starting a Gas Gas dealership. They are eager to get into the Canadian market. You only have to buy 3 bikes to get started without any further commitment.

Its a tough business, long hours, cranky customers, staff issues, etc.

If you just want to start small, start something from your house, selling parts, doing repairs, etc.


Good luck with your decision!

[niterider]

You are so far up north that snow mobiling sales and repair will be a great way to carry you through the winter months.

[BuzZz]

To survive winter in Canada, sell hockey equipment. That's what all the the shops here used to do. It's just been the last few years that dealerships who don't deal hockey stuff too opened up.

It's a never ending market. It's not weather dependent anymore. Kid's never stop growing out of their gear. Or breaking sticks. And they can't skate unless the blades have just been sharpened just right anymore. The amount of cash spent on hockey in this country is astounding.....