How to Start an Electric Motorcycle Business

People are increasing turning to small motorcyles as a transportation option.

More and more people are turning to motorcycles as a transportation option. Launching an electric motorcycle business will include the normal marketplace analysis, administrative preparation, and marketing activities you would expect. It will also include gaining a command of federal regulations specific to electric motorcycles and building a network of suppliers.

Things You'll Need

• Start-up finances
• Supply of electric motorcycles
• Retail facility

Instructions

1. Conduct business feasibility research. Business feasibility involves analyzing such important start-up considerations as local market interest and available financial resources. It also addresses availability of good retail space and potential competitors. Write a business plan if the research demonstrates the enterprise to be feasible for you.

2. Determine administrative steps necessary to start the business. Administrative start-up steps include registering the business with local and state government agencies, including obtaining business licenses or permits where applicable in your jurisdiction. Request a tax identification number (TIN) from the Internal Revenue Service. Set up a business bank account.

3. Secure start-up finances. Start-up costs for inventory can vary widely depending on the amount and type of motorcycle inventory stocked. Learn about small business bank loan options through the U.S. Small Business Administration's (SBA) web site, which details the federal agency's various SBA Guaranteed Loan Programs.

4. Find and submit credit applications with suppliers of electric motorcycles. Organizations such as The National Association of Wholesalers-Distributors (NAW) and The National Motorcycle Dealers Association (NMDA) will be good associations to network with and learn about motorcycle manufacturers and distributors. Once suppliers are identified, request product catalogs as well as standard retailer terms and costs.

5. Review retail facility options. Consider that the main feature of a retail motorcycle company will be the showroom space. Customer consultation space should typically be developed separate from core employee business operations.

6. Hire retail sales staff. This will include individuals knowledgeable about motorcycle products and who have general sales experience. Employees should be able to work with both customers and suppliers.

7. Stay abreast of state and federal laws that impact motorcycle drivers. This will include licensing regulatory requirements, as well as emission and noise-level laws that may be regulated by both the state law and regulations from such U.S. federal government agencies as the Environmental Protection Agency (EPA).

8. Advertise the business. This includes developing a business identity with a professional Web site and brochures. Advertise the grand opening of the motorcycle business on the radio, television, and local publications. Purchase basic business insurance and develop business cards and letterhead. A list of motorcycle magazines can be found at worldnewspapers.com.

Tips & Warnings

• Develop motorcycle seminars for customers. This may include motorcycle driving and safety class or other motorcycle instruction and custom motorcycle design workshops.

• This article is for informational purposes only and should not be used as a substitute for legal or tax advice.

References

• tax identificaiton number
• SBA Guaranteed Loan Programs
• National Association of Wholesalers-Distributors (NAW)
• The National Motorcycle Dealers Association (NMDA)
• Environmental Protection Agency (EPA)

Resources

• worldnewspapers.com