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Motorcycle Store Business Plan

If you are planning to write the Motorcycle Store business plan on your own, then this sample Motorcycle Store business plan can be great for guidance. However, if you are looking for a professional business plan writer for a business loan, SBA loan or to find out the possibility of success for your new business then let’s talk!  

Executive Summary

Overview: Recycled Riding Dreams 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.

Financial Overview

Motorcycle Store business plan financial overview

Financials is one of the most important sections of a Motorcycle Store business plan. You can get an idea of your projected revenue, required investment amount, is the business sustainable without additional funding, etc.

Financial Highlights

Current ratio612233242
Quick ratio611223140
Interest coverage ratio8.211.114.2
Debt to asset ratio0.
Gross profit margin51%51%53%53%53%
EBITDA margin12%14%21%22%22%
Return on asset5%6%13%14%14%
Return on equity5%6%16%17%17%

Use of Funds

Motorcycle Store investment Capex

Industry Analysis

The industry analysis section of the Motorcycle Store  business plan will help you get better insights into competitors, market growth, and overall industry prospects. You can order a custom market research report for your Motorcycle Store business.

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.

Motorcycle Store business plan industry analysis

While working on the industry analysis section of the Motorcycle Store business plan make sure that you add significant number of stats to support your claims and use proper referencing so that your lender can validate the data.

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.

Motorcycle Store Business Plan Industry Analysis

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

Motorcycle Store business plan organogram

Financial Plan

This section of the Motorcycle Store business plan helps your lender figure out whether you will be able to pay off the loan, whether the business is sustainable, what are the growth prospects, etc.


Motorcycle Store Business Plan Financial Plan

Income Statement:

Item 19,21759,117175,410415,277781,357
Item 234,701222,558660,3681,563,3942,941,580
Item 34,06719,56146,43278,519114,905
Total annual revenue47,985301,236882,2112,057,1893,837,842
% increase528%193%133%87%
Item 13602,2596,61715,42928,784
Item 24803,0128,82220,57238,378
Item 352,00065,00078,00091,000104,000
Item 47203,6158,82216,45823,027
Item 5140,000336,000560,000840,0001,120,000
Item 660,000144,000240,000360,000480,000
Item 732,00061,33385,533112,153141,435
Total Cost of Revenue285,560615,220987,7941,455,6121,935,625
as % of revenue595%204%112%71%50%
Gross Profit-237,575-313,984-105,583601,5781,902,218
Item 128,00096,800154,880175,692193,261
Item 275,000105,000120,000120,000120,000
Item 336,00096,000108,000120,000120,000
Item 48,00012,00012,00012,00012,000
Item 53,83918,07444,11161,716115,135
Item 63,35912,04926,46641,14476,757
Item 75,60010,00012,90415,03417,376
Item 86,66714,00022,06730,94040,701
Total selling & admin expenses166,464363,924500,428576,525695,230
as % of revenue347%121%57%28%18%
Net profit-404,039-677,907-606,01125,0521,206,987
Accumulated net profit-404,039-1,081,947-1,687,957-1,662,905-455,918

Cash Flow Statement:

Net profit before tax-$404,039-$677,907-$606,011$25,052$1,206,987
Item 1$4,333$5,417$6,500$7,583$8,667
Item 2$11,667$28,000$46,667$70,000$93,333
Item 3$6,250$8,750$10,000$10,000$10,000
Item 4$3,000$8,000$9,000$10,000$10,000
Item 5$667$1,000$1,000$1,000$1,000
Total payables$25,917$51,167$73,167$98,583$123,000
change in payables$25,917$25,250$22,000$25,417$24,417
Item 1$320$1,506$3,676$5,143$9,595
Item 2$360$1,807$4,411$8,229$11,514
Total receivables$680$3,314$8,087$13,372$21,108
change in receivables-$680-$2,634-$4,773-$5,285-$7,736
Net cash flow from operating activities-$334,536-$569,958-$468,280$203,311$1,423,180
Item 1$16,000$13,200$14,520$15,972$17,569
Item 2$20,000$22,000$24,200$26,620$29,282
Item 3$28,000$22,000$14,520$10,648$11,713
Item 4$96,000$88,000$72,600$79,860$87,846
Item 5$20,000$22,000$24,200$26,620$29,282
Net cash flow/ (outflow) from investing activities-$180,000-$167,200-$150,040-$159,720-$175,692
Net cash flow from financing activities$400,000$440,000$484,000$532,400$585,640
Net (decrease)/ increase in cash/ cash equivalents-$114,536-$297,158-$134,320$575,991$1,833,128
Cash and cash equivalents at the beginning of the year-$114,536-$411,693-$546,014$29,978
Cash & cash equivalents at the end of the year-$114,536-$411,693-$546,014$29,978$1,863,105

Balance Sheet:

Item 1$16,000$29,200$43,720$59,692$77,261
Item 2$20,000$42,000$66,200$92,820$122,102
Item 3$28,000$50,000$64,520$75,168$86,881
Item 4$96,000$184,000$256,600$336,460$424,306
Item 5$20,000$42,000$66,200$92,820$122,102
Accumulated depreciation$44,267$129,600$250,104$408,231$607,743
Net non-current assets$135,733$217,600$247,136$248,729$224,909
Accounts receivables$680$3,314$8,087$13,372$21,108
Total current assets-$113,856-$408,380-$537,927$43,349$1,884,214
Total Assets$21,878-$190,780-$290,791$292,078$2,109,122
Account payables$25,917$51,167$73,167$98,583$123,000
Total liabilities$25,917$51,167$73,167$98,583$123,000
Owner’s equity$400,000$840,000$1,324,000$1,856,400$2,442,040
Accumulated net profit-$404,039-$1,081,947-$1,687,957-$1,662,905-$455,918
Total equities-$4,039-$241,947-$363,957$193,495$1,986,122
Total liabilities & equities$21,878-$190,780-$290,791$292,078$2,109,122