I have been bitten by the small business bug. Over xmas i decided to jack in the world of high finance in the city and set up a yoga venture with my better half after we'd chanced on a near perfect lease in the village at the right price etc... we are on the cusp of getting planning approval so all being well the thing will be operational by april. ive loved every minute of getting the thing set up from negotiating the lease to working with the logo designer and getting the fit out lined up... ill be busy for 9 months after which ill decide to either scout out another site to scale the yoga business or think about my own thing which would of course involve bikes of a certain ilk! i went to bed last night thinking i really wanted to source and sell bikes spanning the tamburini era and also have some small retail offering carrying a handful of brands that i really like clearly huge risk and volatility given the seasonality and the fact that independent bike dealers seem to be a dying breed but what do you guys reckon? its not gonna make me a fortune which is fine but is it really viable to sell such niche set of bikes especially when most folks prefer to buy privately (as i do). my mate is really into aprilias so am thinking we could offer both and share the cost burden etc and it would be a lot of fun heart says yes head says walk
I was thinking of similar funnily enough, but decided it would be a lot of pain for not much gain buying and selling. Would you be servicing too as that may be better - people servicing Ducati's don't seem to buy & sell too so that may tell you something?
yep i did note that unlike in car world you either sell or service dukes but not both and in terms of the split between those that sell vs service i dont know many that sell only dukes whereas we all know loads that service...
Once you have devoted 25 years to building up a good reputation amongst Ducati owners (who are a very picky lot), you'll have a great business. In the meantime, regard it as a tax loss. Or a front for something else.
You are not the first contributor to this forum to consider entering the world of supplying Ducati parts. From my perspective, the potential is there to follow the antiques retail business where dealers sell to dealers which only serves to artificially inflates prices to the likes of me. Sadly in this instance, I think Pete 1950 has the right of it. Andy
I can't answer that. You only have to look at eBay to see how unrealistic some sellers are so you are fighting to buy at a reasonable price a diminishing stock. Clearly there is money in importing but that seems very complicated and the tax man wants to rob you blind. If you can take advantage of the occasional find it's profit but not turn over. A hobby rather than a business. Good luck with your fledgling busines though. Andy
You could try breaking if you have the room - or buy bikes with lots of bling (with original parts where possible) then put back to standard, sell the bike and sell the parts They are alive and well, it was a 'tax' offshoot of a larger dealership - can't remember the name now but always see them advertising Italian Bikes on Ebay I bought my zero mile launch model R6 off them cheap to go with my new 4XV R1
There is always room as the bikes get older and come out of main dealerships, but as stated above really only where someone has a lot of history with the product. Breaking bikes seems good business at the mo if you have space (as exige says) but be prepared to be called all sorts of things as well as have your reputation and personal morality tarnished
If you have space, it will be liable to pay business rates proportional to the rental value of the premises so better to set up shop in a depressed, low-rent area. If the location becomes fashionable and expensive, your business had better have enough turnover and margin to cover the rates, or else you'll be in trouble.
If you have the space, there is the potential to offset the seasonality by offering a) sales on commission, thus not tying your own cash up in slow moving stock; b) winter storage as your facility may well be drier, larger, cleaner and more secure than many owners' own facilities - like mine, I'd love to decant the contents of the garage to allow me to work on other projects - too many bikes not enough space; c) winter fettling/set up/repairs/resprays (all of which you could farm out and manage, if not willing/able to provide yourself) d) using your financial background, offer market leading financial solutions to owning and maintaining wheeled treasures e) in time build a fleet of classics to rent out for road or track etc... Go for it, what have you to lose, other than your shirt?
Which is exactly what we are seeing right now with the readjustment. £8m to £29m pa anyone?! Bonkers!!
Good point actually. More and more are investing in cars and bikes, not to admire and drive/ride but simply as the pension pot of the future. There don't seem to be many places around to cater for this. There is a huge hanger in Swindon, which is like a laboratory, I know a couple of people who keep their cars there. Need a lot of space plus some good security and insurance tho
Really? If you receive more income, you have to pay more income tax. If you buy more goods, you have to pay more VAT. If you use more fuel, you have to pay more fuel duty. And if you occupy a more valuable property, you have to pay more property tax (i.e. rates). So what do you think is bonkers about that?
The rewards are there, but look for more personal than financial. That applies in pretty much any venture in self employment, at least for the first good few years. It's hard work and long hours and recent changes to consumer laws make it a minefield. Set your sights and don't deviate, or get tempted into a "quick buck". It doesn't work long term. If your selling bikes, either look at "collectables" or sell to the masses. Having a few tasty bikes parked up next to a row of £1-2k "regulars" won't impress the target clients. Sourcing "collectables" is a lot harder than it sounds... You're up against some serious players who have contacts all over Europe. Finding them isn't too hard, buying them at a price you'll make money on is the tough one. Try dipping your toes and sell a few from home. If it's what you think it is, then go "pro" but if you do, then do it right but don't expect any quick returns. Insurance (mention motorcycles and it goes thru the roof), tax, overheads can get scary and get bigger as the business grows. VAT is a pain in the arse and if you pick things up, you'd soon need to register. There's a lot at it and some are in it for the short haul or doing it as a "hobby". You have to out live these, so you have to offer more and take less. Once you have your rep' then it's gets easier, but it's always a battle in the used bike game.
