Since I have ben out of work I have SERIOUSLY considerd starting my own dealership for ATVs...
I am trying to think of any "GOTCHAS" and how to possibly avoid them.
Also what to consider when starting it up??
How much front money am I looking at?
Who all do I need? Mechanic, Accountant.. ETC..
I dont want too many people until its off the ground.. I would like to carey, a few brands of ATV, Cycles (Dirt/Street/Cruiser), Sleds in the winter and PWC in the summer.

Its a BIG venture but I want to give it a shot.....
I have a few extra NON ATV related busness options also but I really want to work for my self and not have qrick for a boss, umm just filp the q [img]i/expressions/face-icon-small-smile.gif[/img]..
Anyways, any help is welcome!!!!

 

you have to qualify for franchises first, otherwise you are wasting your time. it's very complex. contatct a good attorney - youre gonna become good friends.

good luck!

 

I know the feeling .... really I do!

Rod

 

Another user by the name of Fourlix opened up a dealership in New Mexico, since he opened his dealership recently, that could be a great contact for you - he certainly isn't your competition so if you guys toss info back and forth it's not hurting business.

And hey - he was on Junkyard Wars once too! His team built a really fast junkyard boat that shoulda almost won but didn't. You'd have to see the episode to understand.

 

I too am researching opening a dealership ...

it's too early in the process for me to offer any advice, but I did notice a certain lesser known, asian manufacturer offering distrubutor / dealer opportunities for cheap.

Hopefully we can keep this thread alive and gain some knowledge for wannabe dealers like myself.

When I get some worthwhile info, I'll post it.

 

Raptor 8 is correct about the franchises, without them you are fighting an uphill battle. Contact every potential franchise you can, forget about any that have dealerships nearby. Try and get what you like, it is a lot easier to sell what you believe in. (I could have had Kawi or Arctic Cat for the asking,,,I never asked.)

"Dealer Development" will kick it back to your District Sales Manager for final approval after you have jumped through all the credit hoops. You will need a good business plan, 5 year pro-forma, 12 month pro-forma, opening day balance sheet, impressive personal financial statement and significant net worth with a good chuck of liquid assets ready to throw into a very big hole. Ever owned a boat? It seems a lot like that in these first months.

Get the franchises first. You may want to set up an LLC (limited liability corporation) an attorney will do it for about $500, or do it on line for about $60. That was easy.....Get to know Microsoft excell, very well, you will need it to do spread sheets for pro-formas etc.

These are not franchises like McDonalds, but "Dealerships". Samantics. Dealer agreement instead of Franchise agreement, but everybody knows they are not franchises, doesn't understand the difference and calls them that anyway.

You will need a location, but you don't need to have it in your possession, I only had a verbal agreement on a vacant lot. Everything will cost more than you expected. Try and save every buck you can along the way. Lots of hardware, tools, forklift, signs, furnishings.

Good staff is very important, hiring and firing is crucial, it sucks, but get used to it, it's them or it's you AND them.

Buying. Try and get it right the first time. Don't get stuck with a lot of crap that won't sell. Especially hard with a new dealership 'cause you really don't know what is going to move. (Why did I buy that fu@#ing mower?) You will need Parts Unlimited and other accessory companies too, but they are easy once you have the main dealerships.

Is it worth it? The paperwork sucks. I thought I would get to do some of the mechanical work, hah! No chance. Time on the showroom floor with customers is golden, if I can drag my ball and chain out of my office that is. I try to stay out of my office on Fridays and Saturdays, and we're closed on Mondays. I have a sales manager, service manager (good mechanic), parts manager (still learning) and a part-time sales-kid, part-time accessory girl, and part-time mechanic/gunk boy. Everybody is still learning. I handle the "top end" paying and paying, buying, dealing with franchises. Soon we are going to start learning each other's jobs so we can cover each other and take a break without the store falling apart.

Sales have been excellent. 45 units in two months. We projected 100 for the first year. We may hit 200.
Had to fire one mechanic, who helped build the place. He was costing me money where the other mechanic was making me money. Parts and accessories is still struggling. It's a harder job than it looks.
Moral is good, attention to the customer crucial. Nobody walks around our floor without the old meet and greet within a minute or two. What we lack in experience we make up for in enthusiasm. We have the coolest looking store anywhere around. You can have a look at atvmountaincycle dot com. Nes Pas?

 

Fourlix that is one cool looking store. You did well getting Bombardier, Polaris & Suzuki. I just have one question. Where is the Bombardier sign? Perhaps it hadn't arrived yet. If it was me, I would put it above the Polaris/Suzuki signs. [img]i/expressions/face-icon-small-happy.gif[/img]

Congratulations on your new dealership. It looks like things are going great. If I end up down that way, I will definitely stop by.