DIY Cycle shop?
Thread Starter
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Outstanding HDF Member
Joined: Sep 2007
Posts: 2,782
Likes: 7
From: NC
I had a shop like that about 15 years ago. Net after the 1st year was $85K. Not a bad idea now a-days. The startup costs are something you really have to look at.
A mechanic advisor is also a good idea. Some of them are retired and just want to make an additional few bucks, say 15 to 20 per hour or buy the job with the cost passed on to the renter. He could even setup his own buss. in house and charge services himself. Eliminate you from collecting for him and have to do more book keeping.
A mechanic advisor is also a good idea. Some of them are retired and just want to make an additional few bucks, say 15 to 20 per hour or buy the job with the cost passed on to the renter. He could even setup his own buss. in house and charge services himself. Eliminate you from collecting for him and have to do more book keeping.
Thread Starter
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Outstanding HDF Member
Joined: Sep 2007
Posts: 2,782
Likes: 7
From: NC
"I would not limit it to just bikes...why cut your 2/3 of your prospective population out?"...one thing at a time...lol...bikes take up less space, thereby less rent for the location
Outstanding HDF Member
Joined: Oct 2007
Posts: 3,227
Likes: 5
You are getting a lot of information here, some good, some bad.
Franchise fees, although admittedly cost thousands come with advertisig and promotional events tied in. Who do you think pays for the Mcdonalds or Wedny's commercials? The company pays out of the fees collected. Not to say you can't or could not advertise on your own but it is a lot cheaper buying media in bulk. Jus sayin'.
Liability insurance will cover your building and contents up to agreed values. If you don't own the building you will not need to insure it. You can insure, as a renter, anything and everything in your shop, again, to the value you state. If your building catches fire and burns down the whole block you are not liable. Their, the neighbors, insurance will cover their buildings. Think of it as if your neighbors tree fell on your house, your insurance will be the one to cover the loss. Not your neighbor's. This is not to say there will not be subrogation of the insured party.
Form a corporation. LLC is the most popular and not very expensive. This will limit your liability to the limits of your policies, in most all instances, and protect your assets, as in your home, etc.
CONSULT AN ATTORNEY.....
I think it's a good idea. Let us know how it goes.
Good Luck
Franchise fees, although admittedly cost thousands come with advertisig and promotional events tied in. Who do you think pays for the Mcdonalds or Wedny's commercials? The company pays out of the fees collected. Not to say you can't or could not advertise on your own but it is a lot cheaper buying media in bulk. Jus sayin'.
Liability insurance will cover your building and contents up to agreed values. If you don't own the building you will not need to insure it. You can insure, as a renter, anything and everything in your shop, again, to the value you state. If your building catches fire and burns down the whole block you are not liable. Their, the neighbors, insurance will cover their buildings. Think of it as if your neighbors tree fell on your house, your insurance will be the one to cover the loss. Not your neighbor's. This is not to say there will not be subrogation of the insured party.
Form a corporation. LLC is the most popular and not very expensive. This will limit your liability to the limits of your policies, in most all instances, and protect your assets, as in your home, etc.
CONSULT AN ATTORNEY.....
I think it's a good idea. Let us know how it goes.
Good Luck
Road Captain
Joined: Feb 2008
Posts: 571
Likes: 0
From: Colorado
I bought a garage in a CBD (commercial buss. district) for $22,000 and had to bring it to code. The future renter backed out so I had to do something to get it paid for. The payment was $356.00 per month.
Insurance for fire and theft $237.00 per month.
Initial outlay for tools $ 4250.00 if I remember correctly.
Rental per day, per bay / lift $25.00.
Hand tools $5.00 each per day, regardless if used for 1 hour or 1 day.
Power tools $12.00 per day, same.
Lathe $25.00 per use.
Hydraulic press $4.00 per use.
Bay renter had to sign release of liability.
$25.00 security deposit. No overnight storage.
My insurance covered bay renters from loss if it was caused by my shop only. If it was because of something they did my insurance and thiers got together.
Nothing ever happened though.
Requirements were: 1. ALL batteries had to be removed, not just disconnected. ALL gastanks drained by me.
It was slow for the 1st 2 weeks, but after that I was full everyday and had to open on Sundays also until I sold the operation 6 years later.
Sold out for $235,000.00
It was a good adventure to say the least.
Insurance for fire and theft $237.00 per month.
Initial outlay for tools $ 4250.00 if I remember correctly.
Rental per day, per bay / lift $25.00.
Hand tools $5.00 each per day, regardless if used for 1 hour or 1 day.
Power tools $12.00 per day, same.
Lathe $25.00 per use.
Hydraulic press $4.00 per use.
Bay renter had to sign release of liability.
$25.00 security deposit. No overnight storage.
My insurance covered bay renters from loss if it was caused by my shop only. If it was because of something they did my insurance and thiers got together.
Nothing ever happened though.
Requirements were: 1. ALL batteries had to be removed, not just disconnected. ALL gastanks drained by me.
It was slow for the 1st 2 weeks, but after that I was full everyday and had to open on Sundays also until I sold the operation 6 years later.
Sold out for $235,000.00
It was a good adventure to say the least.
Big Kahuna HDF Member
Joined: Mar 2007
Posts: 29,598
Likes: 19
From: Oregon
You are getting a lot of information here, some good, some bad.
-snip-
If you don't own the building you will not need to insure it. You can insure, as a renter, anything and everything in your shop, again, to the value you state. If your building catches fire and burns down the whole block you are not liable. Their, the neighbors, insurance will cover their buildings.
-snip-
-snip-
If you don't own the building you will not need to insure it. You can insure, as a renter, anything and everything in your shop, again, to the value you state. If your building catches fire and burns down the whole block you are not liable. Their, the neighbors, insurance will cover their buildings.
-snip-
That's like saying you don't need liability insurance on your car because if you rear-end someone, they have insurance which will pay for their car.
Guess again. If your actions cause damage, you are liable.
Even a renter of an apartment should have an OLT policy in case he accidentally burns down the whole apartment complex, or just guts his own apt.
Last edited by JBaker421; Oct 14, 2008 at 06:29 PM.
Road Master
Joined: Apr 2008
Posts: 836
Likes: 4
From: NC / SC between the Mtns and the Ocean
when i was younger, i used to like to do a lot of work to my own cars, and i was into stereos quite a bit too, but being in apartments or whatever, and not living near family, i had nowhere to work on the car... especially in cooler months, how are you going to do a 10+ hour install on a complete stereo system w/ no garage?
here's what i would be thinking, how can you get the most bang for your buck? and when would most people want to work on their rides?
imo, most people will want to work on their rides at night and on weekends? so what if you had a multi purpose building that allowed for some work space through the weekdays, but also performed other business of some sort during the week, and then opened up the rest of the space in evenings and weekends for more self work?
some ideas that come to mind that could use similar space include
detail shop where you/staff do detailing of bikes/cars
some detail shops also do hand washes of cars/bikes
window tinting, you need a closed bay to do quality tinting work
if you're up to it, you could do some light mechanical stuff too, if it fit your plan, you could give some trained mechanics a place to moonlight maybe?
anyway, if you can use one of the business ventures to at least pay the bills, then use the other billed shop use time to help put you over the top, it might be a way to get off the ground, and then see which one will make more money long term, or expand both ends...
but i would not limit it to bikes, and let people work on cars too, unelss you're overrun w/ bike people and want to keep it on theme...
here's what i would be thinking, how can you get the most bang for your buck? and when would most people want to work on their rides?
imo, most people will want to work on their rides at night and on weekends? so what if you had a multi purpose building that allowed for some work space through the weekdays, but also performed other business of some sort during the week, and then opened up the rest of the space in evenings and weekends for more self work?
some ideas that come to mind that could use similar space include
detail shop where you/staff do detailing of bikes/cars
some detail shops also do hand washes of cars/bikes
window tinting, you need a closed bay to do quality tinting work
if you're up to it, you could do some light mechanical stuff too, if it fit your plan, you could give some trained mechanics a place to moonlight maybe?
anyway, if you can use one of the business ventures to at least pay the bills, then use the other billed shop use time to help put you over the top, it might be a way to get off the ground, and then see which one will make more money long term, or expand both ends...
but i would not limit it to bikes, and let people work on cars too, unelss you're overrun w/ bike people and want to keep it on theme...
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Joe Kucinski
Club Member
Joined: Feb 2008
Posts: 11,483
Likes: 39
From: Passaic County, NJ
Isn't that the sort of place that was the beginning of the end for Arnie and Christine? 
Seriously though, running with that idea, if it were attached to a salvage yard, and a bar (strip club?), you'd be golden. I have no garage and do all my work (as little possible because of this situation), in the yard with all the bugs and rain and crap.
Having one of those nuts and bolts centers you'd find in a good hardware store would be awesome.
Something like this would work in a large city such as NYC. Plenty of riders with no garage space to work on a bike.
Seriously though, running with that idea, if it were attached to a salvage yard, and a bar (strip club?), you'd be golden. I have no garage and do all my work (as little possible because of this situation), in the yard with all the bugs and rain and crap.
Having one of those nuts and bolts centers you'd find in a good hardware store would be awesome.
Something like this would work in a large city such as NYC. Plenty of riders with no garage space to work on a bike.
Last edited by SC-Longhair; Oct 14, 2008 at 08:47 PM.
Extreme HDF Member
Joined: Aug 2007
Posts: 17,880
Likes: 9,633
From: Big Pine Key, FL
Sounds like a civilian version of the MWR "Auto Hobby Shop". You're lucky to find a bay open in one of those on a weekend, and I'd think the current economy would only add to the pool of folks who'd like to work on their own bikes and save some coin in the process.
I think you could be very successful. It'd be key to have someone around, like you mentioned, to help folks along--not only with "tougher" jobs, but to help newcomers to motorcycle maintenance learn the basics.
I'd really like to hear how this works out for you if you decide to take the plunge. Best of luck.
I think you could be very successful. It'd be key to have someone around, like you mentioned, to help folks along--not only with "tougher" jobs, but to help newcomers to motorcycle maintenance learn the basics.
I'd really like to hear how this works out for you if you decide to take the plunge. Best of luck.