My 2¢...
- Save up about a year's worth of income before going out on your own. Spend about the same amount of time putting together a detailed business plan. Research all the possibilities, and take the devil's advocate/worst case scenario approach. Pretend you're the bank or VC that will be fronting the money. Review your plan and business case from their point of view. It's easy to get caught up in the excitement of your new business venture, so beware of wearing blinders. Talk to as many people in the business as possible. Some of your competitors may not want to talk, so find someone in another state willing to share there experiences and offer guidance. Try to uncover and plan for as many possibilities *before* you actually have to deal with them.
Check out
www.lemcoandassociates.com They have these things called 20 Groups where a bunch of dealer principals get together to share their collective experiences with each other. They are the best in their industry, and the goal is to help each other out by sharing best practices - in all facets of running a business.
I have a friend who worked in the mortgage business. She spent just over 2 years saving money and researching a business plan for starting her own mortgage company. She started out small, but her research and planning allow her to execute according to a plan that she mapped out. She was running the business on paper for awhile before she had her first customer. Her and her husband have now been in business for almost 5 years, and have 50 mortgage brokers employed by them. The continued boom in the mortgage business certainly hasn't hurt, but she was very methodical and planned for starting and growing her business very well. They now own a title company as well, and let's just say they could retire in a few years (he's 33, she's 37). They are now buying property and building their own building for $800K, and paying cash.
Check out the book "Rules for Revolutionaries" by Guy Kawasaki. Subtitled "The Capitalist Manifesto for creating and marketing new products and services", it has a lot inspirational ideas for "priming" the entrepreneurial mindset. I gave it to my friend while she was planning her mortgage business.
- My dad has been in the motorcycle business for almost 35 years. He has worked in bike dealerships, has owned a very successful parts and accessory shop (Harleys, street leathers, etc.), and now owns a 6-line powersports dealership (Honda, Kaw, Suz, Yam, Sea Doo, Artic Cat). With all that said, my dad *strongly* discouraged me from getting into the business. It's very competitive on price, and the mark-up % for bikes is a whole lot smaller than you'd think. Parts/accessories have decent mark-up, but with internet sites now selling these things for rock-bottom prices, even that is cut-throat. It's also a retail business. No matter how much you're into the sport, are you cut out for the retail life? The hours? The customer headaches? Remember the old saying the customer is always right - well be prepared to meet some real a$$hole customers - with a smile on your face! Your employees are typically not mature/seasoned professionals. For the rates you can/have to pay, a lot will be 20-something kids. And be prepared to ride a whole lot less. Having your own business is a 24x7 job, either physically or mentally. Even while on vacation, you'll have to be almost daily contact with your store manager, assuming that you can get a great manager to be able to take a vacation!
Even though your passion may be in 2-wheeled off-road bikes, the reality is that you may very well have to expand your line to other areas to diversify your revenue base. My dad has to sell the whole gamut, from street, dirt, snow, water, service, parts, accessories, trailers... even generators, to even out the profit peaks and valleys. And when the vehicles don't sell, you have to pay big $$ store them until next season (and then give them away because they're last year's model!). Not trying to be a buzz-wreck here, but thought I'd share some indirect experiences of the business.
Like was mentioned earlier, if you can carve out a niche as different type of bike shop, offering something others aren't, that may help get you recognized above all the other shops.
- I had my own business for 2 years (custom software development). While it was very nice being your own boss, I found that I spent the majority of my time on things that were not software development. Marketing, accounting, billings, sales calls, proposals, mailings, etc. All necessary for sure, but don't be surprised to find that most of your time will be spent on things that are not your passion. I now "work for the man" again, but make more money, get lots of vacation time, flexibility, and don't worry about making payroll or getting paid for a job so that I can pay the mortgage. Depends on what stage in life you're in. Single guy/no kids, you can work a ton and focus/dedicate your life to starting/growing the business. But later in life with wife, kids, school activities, etc., it'd be hard to devote the time required to do it right.
Even with all that said, some of the greatest, most successful businesses were started with your same ambition and mindset. Drive, passion, and a willingness to *risk it all* to be your own boss (although your customer will be the ultimate boss!). I think that the money part is far down on the list of reasons/driving factors in determining your success.
Good luck!