How to Start a Motorcycle Business: A Comprehensive Business Plan Guide

The idea of opening a motorcycle business has often come to the minds of those who love these machines and see them as their lifestyle and not just the source of revenue. Yet, being a biker and a motorcycle lover is not the same as being an entrepreneur. You need to have a clear vision of what you are going to do, what risks you might face and what strategy you need to use to stay afloat. In the article below, we will guide you through some major steps of this journey based on the example of Sharmax Motors, a motorcycle manufacturer that also offers its business franchise. 

Why this business idea is viable

This business idea works great for both big cities and smaller towns.

Unlike the car industry, the motorcycle market is booming. If you're interested in this field and have the financial means, selling motorcycles could be a fantastic business opportunity.

Over the past few years, interest in motorcycles, ATVs, and other motorized vehicles has been steadily growing. People are embracing active lifestyles, and urban mobility is evolving fast. As cities get more crowded and traffic heavier, personal transportation options like these are becoming even more appealing.

Experts believe the global motorcycle market will keep growing in 2025. By the end of the year, sales could hit around 60 million units, with a market value of over $130 billion. What makes this business even more attractive is the high profit margins on imported bikes, which can range from 20% to 40%, depending on the brand and model.

Target audience of the motorcycle store

The target audience for a motorcycle showroom is diverse, spanning several key segments.

The first group includes young people aged 18 to 35 who see motorcycles as both a mode of transportation and a lifestyle choice. For them, a motorcycle symbolizes freedom, speed, and individuality. These customers often opt for urban motorcycle models or sports bikes and are active buyers of accessories and gear, prioritizing style and safety.

The second segment comprises men aged 35 to 50 who view motorcycles as tools for recreation and travel. This audience typically prefers more powerful and expensive models, such as touring and off-road motorcycles, as well as ATVs for countryside trips. They prioritize quality, reliability, and brand reputation, often gravitating toward premium equipment.

Another important group includes residents of rural and suburban areas who purchase ATVs and off-road vehicles for practical purposes like work in challenging terrains or hunting and fishing. These customers value functionality and practicality, often selecting vehicles to address everyday needs rather than for entertainment.

Finally, professionals who rely on motorcycles for work, such as couriers and delivery service providers, form a significant audience. This group prioritizes efficiency, maneuverability, and low maintenance costs, frequently opting for budget-friendly motorcycles and scooters that minimize operating expenses.

What to Sell in the Showroom?

It is highly advisable to have the full lineup of your chosen brand in stock for customer demonstrations and test drives. If you are dealing with Chinese motorcycle manufacturers, most of the inventory will fall into the budget segment, with new motorcycles typically costing between $1,000 and $3,000, depending on the class.

At the beginning of the business, focus on affordable and popular models. In both small towns and large cities, the demand for various types of scooters is growing yearly. This category should form the core of your inventory.

Next, include moderately priced but more powerful scooters and motorcycles. These models are usually priced at $1,500 to $2,000.

It is also worth considering motorcycles in the mid-price range, costing between $4,000 and $10,000.

For premium clients requesting specific motorcycle models priced above $10,000, these should be procured exclusively on a per-order basis.

If you represent a single-brand dealership, consider purchasing a few “magnet” models from more recognizable brands to attract customers unfamiliar with your brand.

For the initial phase of this business idea, focus on offering around 20 types of small motorcycles to establish a diverse and appealing inventory.

Premises for the showroom

The choice of location for a motorcycle business is a critical success factor, as it directly affects the flow of customers, recognition and ease of service.

Passability and transport accessibility: the location should be easily accessible to customers by private and public transport. It is desirable that the motorcycle showroom be located near busy roads, major intersections or transport interchanges, which will ensure visibility and ease of access.

Availability of parking: for customers arriving by their own transport, the availability of spacious and convenient parking is an important condition. This is especially true for motorcycle showrooms, where buyers may want to test the equipment or inspect several models.

A store selling motorcycles must have an area of ​​at least 100 square meters. The optimal area for opening a small motorcycle showroom may vary depending on the specifics of the business, the services offered and the level of competition in the region. In large cities, where rental rates are high and competition is high, the area of ​​a motorcycle showroom should be from 150 to 200 square meters. This will provide enough space for an exhibition area where you can place several motorcycle models, as well as create areas for customer service and test drives.

The premises can be divided into zones: a showroom for equipment, an area for selling related products, and clothing racks.

A showroom for selling scooters and motorcycles can be very cozy, and most importantly, inexpensive, furnished. You can furnish the store with steel furniture. Immediately refuse warm pastel shades, your colors in the showroom are black, gray, dark tones.

Sharmax has developed a unique brand design and showroom design, and ready-made design solutions in this case make life much easier for the business owner during repairs.

Keeping in mind different needs and budgets of the potential franchisees, Sharmax has come up with three showroom formats: Small, Standard, and Large. They differ in the size of the premises, and, therefore, the initial investments required. A detailed breakdown of the investment and income will be given further below. 

Additional Revenue Streams

Selling Gear and Accessories

Most motorcycle showrooms offer essential gear like helmets, body armor, gloves, and specialized riding equipment. This is a profitable venture, as such products can be sourced directly from online suppliers in China or purchased from domestic wholesale importers. An initial investment of around $3,000 in gear should suffice, with average markups ranging from 20% to 50%, depending on the brand.

Spare Parts Sales

Offering spare parts for motorcycles is another lucrative avenue. Selling parts alongside motorcycles is convenient and brings additional income. Motorcycles, like cars, require regular maintenance and repairs, and sourcing specific parts for certain models and years can be challenging for riders. This scarcity ensures that motorcycle owners are often willing to pay a premium for the necessary parts. A well-stocked inventory of spare parts can position your showroom as a go-to destination for repair needs.

Repair and Maintenance Services

Opening a repair and maintenance workshop within your showroom is an excellent way to diversify income. All you need is a skilled mechanic to handle the job. This service is particularly valuable for beginner riders who may not yet know how to handle minor repairs or maintenance. By taking care of these tasks, you build trust and loyalty among new riders while creating a steady revenue stream. Sharmax includes this service center option in all its franchises and provides training on using and installing service equipment.

Financing and Trade-Ins

Two highly sought-after services in a motorcycle showroom are financing and trade-ins. Financing allows customers to purchase bikes without having the entire amount upfront, while trade-ins let them exchange their old motorcycles for newer, more powerful models. Partnering with banks for motorcycle loans is essential, but note that not all financial institutions work with two-wheelers due to higher perceived risks compared to auto loans. Nevertheless, when a motorcycle is sold on credit, the dealership earns a commission from the bank for referring the customer. Insurance is mandatory for financed purchases, which banks often bundle with loans, though you can also partner with insurance companies to offer this service directly.

Trade-ins are particularly popular among newer riders. Many start with simpler models (up to 200cc) and upgrade to more powerful motorcycles with 400cc or 600cc engines after a year or two. Offering trade-ins not only simplifies the upgrade process for customers but also provides the dealership with an additional profit opportunity. Typically, trade-in motorcycles are purchased at prices around 20% below market value, allowing the dealership to resell them later at a healthy margin.

By incorporating these additional revenue streams, a motorcycle showroom can diversify its offerings, increase profitability, and attract a wider range of customers.

Developing an Online Store for Your Motorcycle Business

Once your physical showroom is up and running, it's time to start building an online store for motorcycle sales. Combining a physical location with an e-commerce platform can significantly boost revenue. Linking the domain of your online store to the physical showroom establishes trust with customers, as it shows a legitimate and professional operation. This approach attracts not only local buyers but also motorcycle enthusiasts from nearby areas, expanding your customer base and increasing business reach.

Present your motorcycles in the best possible light. Hire a professional photographer to take high-quality photos of each model, and pair them with detailed descriptions and pricing. Include essential details such as contact information, business hours, showroom address, and a map for easy navigation. Keep your online store updated with information about promotional campaigns and discounts to encourage repeat visits and purchases.

While launching your online store, consider developing a professional website to showcase your full inventory. This platform can host instructional videos on motorcycle operation, tips for choosing the right gear, and other resources to engage and educate potential customers.

Sharmax offers comprehensive marketing solutions, including assistance in setting up online stores and professional websites, ensuring that your business has all the tools it needs to succeed in the digital marketplace.

Promotion and Marketing Strategies

In the initial stage of promoting your motorcycle showroom, focus on building awareness among your target audience. Start by advertising on specialized websites, local city portals, and across various social media platforms. Visibility is key, and these channels provide direct access to potential customers.

Extend your marketing efforts offline. Ensure your showroom’s branding and logos are prominently displayed during motorcycle races, rock festivals, and thematic events. These gatherings attract motorcycle enthusiasts and offer an excellent opportunity to showcase your brand.

Online marketing plays a crucial role in modern promotion strategies. Use social media to engage with your audience, share updates, and create a buzz around your showroom. Community engagement is another powerful tool—partner with local businesses, sponsor motorcycle rides, and participate in events that resonate with the biking community. These activities not only enhance visibility but also establish trust and connection with your audience.

Sharmax supports its franchisees with tailored marketing strategies, helping them maximize exposure and achieve their promotional goals. From creating social media campaigns to setting up event partnerships, the Sharmax team ensures franchise owners have the tools needed to make an impact in their local markets.

What we offer:

1. Search engine visibility: We will share with you all the essential keywords and search queries for Google search, ensuring that your Sharmax website ranks within the top 5 search results on Google. Our ongoing SEO support and analytics insight are aimed at maximizing your online presence and drawing more traffic to your website.
2. Online map presence: We meticulously enhance your visibility and appeal on platforms like Google Maps, ensuring your business is not just found but also stands out. By optimizing your map listings with attractive visuals and accurate information, we make it effortless for customers to locate and choose your business over competitors, effectively increasing foot traffic and online inquiries.
3. Professional listings: We also offer ready-made solutions for all your listings. Our team of expert photographers will provide you with high-quality, professional studio photographs that capture the essence of your products and services. Coupled with compelling, strategically written content by our copywriters and marketing specialists, your listings will not only catch the eye but also engage and convert viewers into customers. 
4. Comprehensive marketing materials: We provide pre-designed solutions for offline and online marketing materials, including banners, brochures, business cards and similar promotional items designed to present your brand consistently and professionally across all platforms and venues. These materials will enhance your visibility and reinforce your market presence.
5. Monthly promotions: Each month, we offer promotional campaigns to boost your sales volume and increase customer engagement. Our promotions like "Buy a motorcycle, get 2 cans of oil for free," are accompanied by captivating banners and comprehensive support materials for both your website and physical locations. These promotions aim to attract more customers and enhance your sales strategy.
6. Social media content framework: We will provide you with a ready-made framework for social media content, empowering you to create captivating posts with ease. From video recording guidelines to photography tips that highlight your offerings from the perfect angles, our guidelines will surely help you amplify your social media presence.  With such engaging and relevant content, you will draw your audience closer, turning followers into customers.

Overview of initial investments and anticipated profit

According to estimates of the Sharmax business development team, investments required to open a showroom range between $400,000 and $1,500,000, depending on the area and condition of the premises. We have prepared an approximate financial plan that will give you an overview of how the funds will be allocated. 

In addition, we have outlined a profit and loss  structure that will help you understand the expected financial performance of your investment. This structure highlights the key revenue streams, major expense categories, and projected net cash flow, giving a clear picture of the showroom's financial potential.  

Breakdown of investments and net income by showroom formats:   

Let’s take the Standard showroom option of 300 sqm. The initial sum to start would be somewhere around $700,000, which is a middle entry threshold for a business looking to enter the market quickly. The opening of this type of store usually takes up to three months with all the renovation and the time required for the shipment of equipment. The showroom is expected to achieve a total average revenue of $4,000,000 per year, indicating its potential for high sales turnover. After covering all the expenses, a net income should be starting at $500,000. The time required to recover the initial investment is estimated at approximately 2 years, a relatively short timeframe for a business of such a scale. 

Also, there is always an option to start with a smaller version of the showroom and gradually reinvest and grow it to a larger format as your profit grows. 

Your initial investment of $700,000 will have to cover (roughly): 

• Initial inventory and stock: $280,000 (40%)
• Operating expenses: $70,000 (10%)
• Construction and installation works: $175,000 (25%)
• Design and showroom decor: $70,000 (10%)
• IT solutions and operations systems: $35,000 (5%)
• Furniture and office equipment: $28,000 (4%)
• Marketing: $14,000 (2%)

Understandably, the largest portion of the initial investment, (40%), should be allocated to purchasing motorcycles themselves. The main area of business concern is sales, thus maintaining a strong inventory is vital to satisfying customer demands and making showrooms ready to display.

Fixed costs to consider

1. Rent or lease for the showroom space (500 sqm): Approximately 7,000 USD per month, depending on location and region.
2. Utilities (electricity, water, internet, etc.): Estimated at 2,000 USD per month.
3. Salaries for 6 employees: Around 12,000 USD monthly, assuming an average salary of 2,000 USD per employee.
4. Insurance (business, inventory, liability): Approximately 1,000–1,500 USD monthly, depending on coverage and location.
5. Advertising and marketing expenses: Calculated as 2% of the revenue, which can be 6,000–8,000 USD monthly, assuming monthly revenue of 300,000–400,000 USD.
6. Depreciation of assets (e.g., equipment, fixtures): A typical figure would be around 800–1,500 USD monthly, depending on the asset value and depreciation method.

Projected income

The sales of on-road motorcycles are expected to generate the biggest part of your cash flow. They are estimated to be around $700,000 per year. Off-road motorcycles share will add another $600,000. To increase the overall sales, we suggest selling additional equipment such as ATVs and UTVs. Atvs could add around $500,000, while buggies can bring $150,000. Altogether, these sales channels are expected to reach a total of approximately $2,000,000 annually.

About Sharmax and Its Franchise Program

Sharmax Motors has earned its status as a manufacturer of durable and high-quality motorcycles and other motorized equipment for outdoor activities (quad bikes, buggies, RIB boats and outboard motors). The core of the brand is its off-road and on-road motorbikes.

The mission of the brand is to bring the joy of a wild adventure to everyone. To keep up with the mission, the brand has struck a perfect balance between quality and affordability. 

The versatility of the lineup is one of the biggest advantages of the company. Sharmax offers scooters and maxi scooters, classic road bikes, naked bikes, touring models, sports models, roadsters, and street bikes.

Separately stands the off-road segment of enduro and pitbikes with displacement starting at 145cc. 

Electric models add a sense of eco-friendliness and represent a promising niche with big potential.   

For a potential business in motorcycles, such a wide range of products means a bigger coverage of different customer groups.

Bottom Line

To summarize, launching a motorcycle sales business and making it profitable requires the following steps:

1. Ideally, create a business plan where you can calculate revenue, net income, expenses, and identify all the "pros" and "cons" of this business type. Consider costs such as rent, renovation, employee salaries, customs duties, taxes, online promotion, and advertising. Additionally, frequent travel may be required to negotiate contracts for motorcycle supplies, adding transportation or travel ticket costs as another expense category.
2. Obtain all necessary business operation documents and prepare the paperwork for the motorcycles, including registration, tax payments, and customs clearance.
3. Rent a space for the showroom to display motorcycles for sale.
4. Decide which motorcycle models to order first. It’s essential to communicate with dealers from manufacturing countries. Keep in mind that 30% of success depends directly on your communication skills, ability to negotiate, and finalize contracts.
5. Determine whether to include used motorcycles in your inventory. Pre-owned motorcycles and scooters are more affordable than new ones and therefore attract strong demand from consumers.

Becoming an official dealer of a well-known brand simplifies the process, as manufacturers offer exclusive regional rights, staff training, and supply chain support for spare parts. However, this approach requires significant initial investments.

Sharmax provides a franchise option with comprehensive support and services for participants.

If motorcycles are your passion, you’re surrounded by biker friends, and you understand these machines well, this business can bring you joy while ensuring rapid growth and profitability.