Off brand ATVs often perform at comparable levels to the most popular brands.
Selling motorcycles and all terrain vehicles (ATV), whether as a manufacturer, a distributor or a retailer, can provide a profitable outlet for your passion for off road riding. Not every ATV enthusiast shops for the most expensive models — a wide range of off road riders prefer off brand vehicles which perform just as well without costing nearly as much. Starting an off brand motorcycle and ATV business can be a profitable opportunity to serve this niche of cost-sensitive riders.
1. List the types of vehicles and equipment you wish to sell through your business. This will influence many of the decisions you make in subsequent steps. You might choose to specialize in only motorcycles and ATVs, for example, or you may choose to stock dirt bikes and snowmobiles as well. You might choose to focus strictly on vehicle sales, as another example, or you may choose to sell equipment such as helmets, tools and performance parts.
2. Create a business plan for your company. Use this step to really think through every aspect of your new business. Define your business‘s mission and vision near the beginning of your plan, then move on to thoroughly define your target market. Create a section detailing exactly how your off brand products meet your target customers’ needs better than big name alternatives, and lay out a budget and a three year financial plan. Include a brief marketing plan, as well, outlining exactly how you plan to develop ATV and motorcycle enthusiasts into loyal customers and champions for your brand.
3. Determine the amount of startup financing you require, and make a list of potential sources of capital. The amount of startup capital you need depends to a large degree on the types and depth of product lines you plan to carry. Your marketing plan influences how much money you need up front, as well, since different marketing strategies come with different price tags.
You have a range of options to choose from when seeking startup funds. You might choose to take a small business loan from a bank or credit institution. Alternatively, you can seek a private investor to infuse the business with cash and provide helpful strategic guidance. Personal savings can be a viable source of startup financing, as well, provided you have the time and discretionary income to save what you need.
4. Register your business in your state. Contact your Secretary of State’s office for detailed instructions and forms for registering the form of organization you choose for your business — an ATV retailer can function well as either a sole proprietorship, private partnership or limited liability company. You will most likely be required to submit a simple form, such as the Articles of Organization for limited liability companies, along with an administrative fee.
5. Register for federal and state taxes with the IRS and your state Department of Revenue, respectively. You can obtain an Employer ID Number (EIN) and register for federal taxes online at IRS.gov, but you may need to register for state taxes via mail, depending on your state.
6. Contact your Secretary of State or state Department of Revenue to determine whether you need to purchase any business licenses or permits. Sellers of all terrain vehicles do not require a specialized license at the federal level, but your county and state may require a permit for all registered businesses.