Motorcycle Spare Parts Business Ideas: How to Start a Motorcycle Spare Parts Business

Motorcycle spare part business is fast gaining ground in Africa and Asia. The reason is due to popularity of commercial cycle’s business in many countries.
Major manufacturers especially in China have lowered the cost of new bikes making them more affordable. Many City capitals have huge number of riders plying their trade as commercial transport operators.
This has provided job opportunities for a large number of seemingly unemployed youths. The astounding numbers of mostly commercial riders have opened new business opportunities in motorcycle spare parts business.
The lucrative fast growing trade has attracted astute entrepreneurs to trading in spare parts. The venture involves selling motorcycle parts as a wholesale or retailer to motorcycle enthusiasts.  Commercial transporters are common in major cities and even suburbs making the venture quite lucrative.
Business Plan
The importance of having a business plan can’t be over emphasized. The plan helps to highlight the business structure, challenges and future projections of the company.
The plan should have provisions for funding, staffing, purchase, location and merchandising. It covers all the parameters for a startup parts dealership. You can even secure bank loans on the strength of a comprehensive business plan.
If you don’t have a clue on writing a business plan hire a professional. Other considerations in the plan are accounting procedures and stocking.
Obtain a Business License
You need to register your company and obtain a business license. There are many unions and association regarding spare parts dealership. Find the ones in your area and join them to avoid undue harassment.
Find out if you need special permits to handle hazardous material like engine oil or diesel.
Get insured
Getting insured is very important in the cycle business. To avoid liabilities and risks get proper insurance for your goods. There are different types of insurance like comprehensive, accident and others.
Choose the Sector
The job of a bike spare parts trader involves selling either new or used parts. Most dealers concentrate on only one sector, however a few deal in both used and new parts.
You need to decide on new, refurbished or used parts. To attract lots of customers deal in everything but make sure your customers know what they are buying.
Operating on the retail end of the business requires a reputable wholesaler or manufacturer. Find a good wholesaler in your locality and do a general check on them before taking a decision.
Try to get recommendations from mechanics and other retailers before stocking your store. If you have money we recommend you buy your stock directly from manufacturers.

trasport operator
A businessperson interested in motorcycle spare parts business needs to have adequate finance. The money is needed for a store or warehouse, and spare parts.
He should consider insurance, marketing and proper location. The entrepreneur can get loans from banks and other financial institutions.
Other methods of securing finance are target saving, contributory schemes and loans from cooperative societies. Some apply local thrift collecting methods through daily contributions to shore up capital.
The entrepreneur could seek out a core investor or sell equity in his business venture. Startup capital is possible through partnership or the sale of ordinary shares in the company.
Spare parts traders usually have trade unions who aid members with soft loans and finance. To start a small spar parts business you need 5000-10000 this includes cost of parts and rent.
Learn the Trade
To start this enterprise understanding the intricacies of the business is beneficial. Motorcycles have many spare parts like headlights, cylinders, seats, engine blocks and brake pads.
Learn about the parts that regularly need servicing or change. Before stocking your store study the type of bikes favored in your locality.
There are many brands in the market from Honda, Yamaha, Toyo,Boxer and lots of Japanese and Chinese’s bikes. Try to stock only spare parts of the common brands used by commercial motorcycle riders in your area.
To learn the trades understudy a spare parts dealer as an apprentice. Read lots of books, get viable input from mechanics and spare stores in your locality.
Locating the Business
The best possible location is beside a motorcycle mechanic workshop. Situating the motorcycle spare parts shop beside a mechanic guarantees lots of patronage.
Your shop will also get lots of customers in a densely populated area. The shop should be properly secured from theft and your goods insured.
You can warehouse majority of your merchandise at another secure location and only display one of each item.
Some good locations for your business are a busy intersection or market place. You can locate your business at an articulated spare parts market to attract steady patronage. However you might have to compete with stores that sell the same merchandise.
Stocking Spare Parts
Try to stock only spare parts that have quick turn over and are constantly in use. More common spare parts stocked are motorcycle tubes, tires, and shock-absorbers
Other parts include seats, helmets, gear levers, exhaust pipes, rims and clutches. There are also parts like petrol tanks, break pads, head lamps, motorcycle frames and other accessories.
The key to success in this business is to narrow down your inventory and buy directly from manufacturers. There is nothing wrong in sourcing your merchandise from wholesalers. However, buying directly from manufacturers puts you ahead of the game.
Stock Quality Items
Try to buy only top quality parts for your enterprise. They are pricey but your customers would vouch for your reputation. Offer high quality items at best prices and include prompt delivery service.
List of Spare Parts to Stock
This is a short list of spare parts to stock in your bike parts business.
1             Motorcycle seats
2             Hard hat helmets
3             Tire tubes
4             Tire rims
5             Shock absorber springs
6             Exhaust pipes
7             Break pads
8             Clutches
9             Head and rear lamps
10          Bike frames
11          Petrol tanks
12          Engine blocks
13          Piston and rings
14          Other accessories like packing, belts, bolts, chains
Major Channels
As a spare part dealer you have a choice to sell wholesale or retail directly to customers. Wholesale traders need more finance than retailers to stock his warehouse.
You can buy stock directly from manufacturers in India, Asia, and China.
Marketing the Business
Both retailers and wholesalers attract more customers through advertisement. Newspaper publications attract lots of patronage for wholesalers and retailers.
You can use handbills, word of mouth and banners to advertise the business.  Get creative by organizing workshops, seminars and instructional classes.
Offer discount, coupons and inexpensive options for customers. Another marketing tool that works is a dedicated website for your operation.
List items in your store and add your company location and cost of shipment. Online resources account for 30% increase in sales for many businesses.
How to Stay Ahead of Competition
There is no business venture that does not have solid competition. To stay ahead of the competition you should stock high quality parts and secure a good location. Other ways are affordable parts, proper pricing and honesty.
Sharp practices such as selling counterfeit or substandard parts would have negative impact on your business. Study what your competitors are doing right and do it better.
Motorcycle spare part business is fast developing into a billion dollar industry. Businessmen interested in this venture can join the emerging market and reap huge profit.
Things to consider before starting a motorcycle spare parts business
1             Write a feasibility study
2             Get relevant certification and allocation
3             Register your company
4             Get proper financing
5             Locate a good property or shop
6             Buy spare parts from recognized dealers and manufacturers
7             Get high quality spare parts
8             Offer  competitive prices
9             Market your products and services
Are you thinking of starting a business then try motorcycle spare parts trading.


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