This motorsports dealership business plan sample is focused on the growing industry in Charlotte, North Carolina. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own. To get your dealership started, there are no costs associated with overhead, storage, packaging, which in turn will save you a lot of time and money. Our motorsports dealership business plan writers created this sample.
“Motorhub Motorsports Limited.” operating as “Motorhub Motorsports” (The company) was incorporated on June 22, 2021 in the State of Charlotte, North Carolina. The company sells a variety of used and pre-owned motorsport vehicles including motorcycles, snowmobiles, dirt bikes, all terrain vehicles (ATV’s) and utility terrain vehicles (UTV’s).
With over 10 years of experience in the motorsports retail management industry, and an extensive network in the American motorsports community, Mr. Michael brings a wealth of knowledge, experience and skill to this opportunity. He is a professional backcountry snowmobiler and motorsports enthusiast, with experience directly managing two successful motorsports dealerships in the past. As Founder of Motorhub Motorsports, Mr. Michael is ready to apply his experience and skills to this new opportunity, with a goal of profitability within the first year of operations.
Motorhub Motorsports is seeking a $78,500 loan through the North Carolina Small Business Administration to purchase equipment and leasehold improvements for this Charlotte Dealership. With a growing motorsport community in Charlotte, Charlotte is an ideal location to establish the company’s first facility.
Motorhub Motorsports will drive sales by implementing a digital marketing strategy which will include Google Ads, social media marketing and an ecommerce store. Furthermore, Mr. Michael has identified a gap in Charlotte’s motorsport industry in the sale of used and pre-owned equipment. As the sector grows, there are more and more people with used equipment looking to sell, trade, or purchase for their own use. The company will meet this demand with a centralized location, an experienced team, and sought after motorsport equipment.
Motorhub Motorsports offers direct-to-customer sales of motorsport vehicles such as motorcycles, snowmobiles, dirt bikes, ATVs and UTVs. In addition, the business will host an integrated and up to date e-commerce store listing available inventory and selling motorsport vehicle parts, accessories and safety gear. The company will have a dealership, retail storefront and in-house maintenance services and repairs. Motorhub Motorsports is currently seeking funds from the North Carolina SBA Loan Program to support initial start-up costs including leasehold improvements, and the purchase of equipment.
Our mission is to become the leader in used motorsport sales in Charlotte and continually support the strong and growing community of motorsport enthusiasts with superior products and services.
Our vision is a motorsport community in Charlotte, which has access to an array of used and pre-owned vehicles, making our sport accessible to all Charlotteans.
- Serve customers year round with a variety of motorsports equipment
- Strong customer service with a customer first attitude
- Achieving and maintaining a profitable business
- Make motorsports vehicles accessible to the public through a variety of options
- Going the extra mile for customers
- Offering fair and accessible financing directly through our network
Since incorporating in June 2021, the company has achieved the following milestones:
- Successfully incorporated the business
- Acquired a business license in the State of North Carolina
- Secured a retail space to run the daily dealership operations
- Secured a brokerage company to supply financing for customer purchases
- Implemented a dealer management supply system to control inventory and manage daily operations
- Launched a website with substantial traffic, unique site visits and click-through rates
- Launched Facebook and Instagram social media channels and gained a substantial following
- Implemented a Google Business listing, proving strong results on site visits in awareness generation
Goals and Objectives
- To acquire an original equipment manufacturer (OEM) to provide genuine vehicle parts directly to Motorhub Motorsports
- Develop a large, loyal customer base who use Motorhub Motorsports services for all their motorsports needs
- To have a wide pre-owned vehicle inventory of both summer and winter motorsports equipment to generate revenue year round
- To hold the largest selection of pre-owned motorsport units in Charlotte
- Become known across the State as the best pre-owned motorsport dealer
Motorhub Motorsports operates in automotive sales and in the outdoor recreation vehicle industries. Specifically, the company serves snowmobiling, offroading (dirtbikes, ATVs, UTVs), and motorcycling sectors in the outdoor recreation industry.
All automotive dealerships in Charlotte are required to abide by the North Carolina Division of Motor Vehicles Dealer Unit, which requires all employees to act in accordance with the policies set out in the Motor Dealer Act and the Public Service Act. The Motor Dealer Act requires that the owner be registered and offer repairs for vehicles purchased through the dealership on site or with a partner legislated contractor. Additionally, all dealerships are required to have a clear sign on site to state the nature of the business. All staff who work on site as a salesperson must be licensed, and owners of dealerships must consent to disclosure on fees, exemptions, bonding, and advertisements upon request.
The used automotive and motorsport industry in North Carolina is valued at $14.3BN in revenue with an annual growth rate of 2.2% between 2021-2026. The industry reported $314.6M in profits in 2020, with an increasing annual growth rate of 1.4% between 2016-2021. There are 7,625 businesses in North Carolina, employing over 13,778 people. Used vehicles make up 63.5% of the industry, with parts and services making up 25.6% followed by financing and insurance at 11.0%. Overall, the industry is highly fragmented with low levels of competition. 99.9% of used automotive dealerships have under 100 staff, with no one player dominating the majority of the market.
Covid-19 has challenged the automotive industry’s supply chain and many car manufacturers are struggling to produce new vehicles due to a shortage of semiconductors. This has resulted in an inflation of the used vehicle and motorsport market, allowing dealers to charge more for used vehicles and an overall increase in the willingness to pay on the customers’ part. Increased demand for used motorsports and vehicles has resulted in an increasing number of motorsport dealership registrations in North Carolina, and an overall increase in lending institutions financing automotive purchasers for used and pre-owned vehicles and motorsport equipment. Additionally, there has been a steady increase in people becoming interested in motorsports recreation in the past two years, indicating that the market is growing. In fact, 2019 saw record sales in motorsport vehicles across all categories, with dirt bikes completely selling out across the State in the spring of 2019.
Charlotte is considered a hotbed for offroading enthusiasts and is a prime location for a motorsports dealership. Charlotte is centrally located within the five top rated places to offroad in North Carolina by Riderswest in 2020. These include Greenstone, Mount Ida, Bardolph and Becker Lakes, Bear Creek, and Allendale Lake. As such Motorhub Motorsports will be well-positioned geographically and situationally for growth, profitability and success.
Banner Rec and Marine: Banner Rec and Marine is a recreational Snowmobile, ATV, UTV, Sled, Motorcycle, Sea-Doo, and Boat dealer with locations in Charlotte, Raleigh, Greensboro, and Wilmington. Banner Rec and Marine sells new and pre-owned motorsport vehicles, with a regular inventory on clearance across all product categories. Each product features comprehensive details and information about each item, including dealer insights, features, engine, transmission, chassis, capacity, instrumentation and dimensions. Banner Rec and Marine also offers rentals, and storage facilities and partners with Bankgate Financial to offer financing services directly through the website.
M&M Performance: M&M Performance is a Powersports dealership in Charlotte North Carolina that sells UTVs, ATVs, snowmobiles, slingshots, and motorcycles. M&M Performance sells both new and used vehicles, parts and accessories, as well as conducts trade value assessments allowing customers to trade their Powersports vehicles through the dealership. It is a registered dealer for Triumph, Polaris, and Indian Motorcycle, and has a wider variety of pre-owned vehicles. M&M Performance has eighteen staff and offers services with a full service department located on site as well as a financing calculator and estimator available online.
Valley Motorsports: Valley Motorsports is a Powersports dealership located in Charlotte North Carolina that has been operating since 1995. The dealership sells new and pre-owned motorsport vehicles. Valley Motorsports specialized in Arctic Cat, Kawasaki, KTM, Royal Enfield, Suzuki and Husqvarna, with a wide selection of pre-owned vehicles of all models. Valley Motorsports has a parts and service department on site, and a wide array of resources and dealer information available online. Their website has a fully integrated virtual showroom displaying all in stock items and offers trade in offers and financing available directly through the website.
Products and Services
Motorhub Motorsports will sell a variety of outdoor motorsport vehicles, equipment, parts and accessories through their physical dealership as well as online.
Motorhub Motorsports will sell a variety of products to serve customers year round. The company’s pricing model is as follows:
Motorhub Motorsports’ competitive advantage is based on Mr. Michael’s experience and expertise in dealer management and vehicle sales. He possesses the ability to grow Motorhub Motorsports to become well known across the State for providing high quality pre-owned motorsport vehicles and equipment for a variety of sports and activity types. The company differentiates itself from competitors by providing the option for customers to finance pre-owned recreation vehicles. This market is large and currently, no dealers are specializing solely in pre-owned motorsports vehicles with the option to trade-in, upgrade, or receive financing to fund a purchase. Motorhub Motorsports is creating a new market where customers are able to purchase a 1-5 year old automobile at a discounted price through a reputable dealership that can guarantee a level of authenticity, performance and price for the quality. Financing is available for customers to pay for a pre-owned vehicle on a monthly basis, instead of cash outright purchase.
Key Success Factors
Motorhub Motorsports key success factors are as follows:
- Increasing the number of motorsport vehicles sold
- Increasing the number of conversions from visitors to the Motorhub Motorsports dealership
- Maintaining and withholding a strong reputation as the top pre-owned motorsport dealer in Charlotte
- An increasing number of walk-ins quarter over quarter
- Increasing vehicle sales quarter over quarter
- Increasing profitability levels
- Growing and retaining a top tier sales staff
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Sales and Marketing Plan
As a successful sales professional, Mr. Michael has a unique advantage in ensuring Motorhub Motorsports is acquiring customers and growing the company’s customer base. The company currently has a robust sales and marketing plan in place to reach its target customers and attract new customers to the Motorhub Motorsports dealership and website.
Motorhub Motorsports has defined the target customer to be middle and upper class men and women that engage in motorsports and outdoor activities. The company will target individuals that live within 250km of the Motorhub Motorsports Charlotte location and have an annual household income exceeding $60,000. Additionally, Motorhub Motorsports will target individuals within the motorsport community that are willing to spend between $20,000 – $25,000 on a motorsports vehicle, between $4,000 – $6,000 per year on motorsport vehicle maintenance services, and between $4,000 – $6,000 per year on motorsport vehicle parts and accessories.
Motorhub Motorsports will employ a web-based digital marketing strategy to drive awareness, interest consideration, and purchases as well as print advertising in local markets and motorsports media. Motorhub Motorsports plans to utilize the following channels to reach the target customers stated in Section 5.1:
Digital Marketing: Mr. Michael will create and maintain a Facebook and Instagram following where he will consistently promote the Motorhub Motorsports brand to build up a following of thousands of followers. Motorhub Motorsports will employ both paid and organic marketing methods, including paid Instagram, Facebook, and google ads that target interested customers and potential new customers. The company will also employ organic advertising such as search engine optimization and frequent website upgrades with key information on the motorsports industry.
Internet Sales Strategies: Motorhub Motorsports will also employ internet sales strategies to drive awareness and bring customers into the dealership location. This strategy is especially important, as many customers are often searching for local businesses in their area, and will use the internet as the first point of discovery. Mr. Michael will register the dealership on all relevant online portals as well as develop a strong online inventory and showcasing system to display all relevant and up-to-date information on available products and services.
Print Media and Advertising: Mr. Michael also will prioritize print and traditional advertising in key markets to promote Motorhub Motorsports to relevant audiences. This includes advertising in local Charlottean newspapers, as well as in motorcycle, snowsports, and UTV/ATV magazines and media.
Key Performance Indicators
Motorhub Motorsports will monitor progress by referring to the following key performance indicators (KPI’s) at each quarterly meeting:
- Profitability ratios
- Number of repeat customers
- Number of new customers
- Sales volume (Month-to-date, Year-to-date)
- Sale to customer visit ratios
- Positive reviews and five-star feedback
- Average turnaround time on inventory
- Mechanical and cosmetic reconditioning time
- Cost to market value
Motorhub Motorsports will operate out of a dealership located in Charlotte, North Carolina. Customers will be able to visit the facility to view inventory, speak to sales professionals and shop in the retail space for motorsports accessories and equipment. Additionally, the company will leverage a constantly up-to-date online inventory system where customers can visit the website to learn about available products.
Motorhub Motorsports will acquire inventory via trade-ins from customers and by actively pursuing and purchasing high quality pre-owned motorsports equipment. The company will offer inventory to customers at their dealership location, and offer financing and monthly payment options directly through the dealership. This increases the accessibility for motorsports equipment, allowing customers to purchase high quality pre-owned vehicles and equipment from a reputable dealer. Motorhub Motorsports will accept cash, debit, and credit, and work with a third party brokerage to offer various financing options to customers.
Equipment & Inventory
The company will use the funds to acquire the following equipment: Forklift ($15,000), Enclosed Trailer ($20,000), Computer ($3,000), Sled Deck ($6,000), Signs ($6,500), Office Deck ($1,000), Front Counter ($3,000), Flooring ($3,000), Paint ($3,000), Lights ($3,000), Electrician ($2,000), Slat Walls ($3,000) and Bathrooms ($10,000).
Motorhub Motorsports is located at 26 W 30th St Charlotte, NC 28206.
Motorhub Motorsports operates in the automobile sales industry and is vulnerable to the following risks:
Macroeconomic risks such as unemployment rates, the fluctuating world price of crude oil, new vehicle sales, and the per capita disposable income impact the success of Motorhub Motorsports to reach a desirable scale and factors including average household debt, interest rates, and gasoline prices contribute to the overall demand for used vehicles. Motorsports sales are primarily influenced by consumers’ financial stability and spending power for recreational items. Additional risks include the inability for customers to meet financial obligations for vehicle purchases as well as the increasing competition for used vehicles between dealerships, increasing the overall market price and demand for pre-owned vehicles and motorsports equipment.
Owner and Operator
Jim Michael has more than ten years of experience in the motorsports retail management industry in the fields of sales, management, and business development. He has owned a successful business for the past four years and has successfully managed two motorsports dealerships in the past. He has a strong background and proven success in sales and holds numerous sales certifications and professional designations. He was ranked in the Top Five salespeople in North Carolina for NC Snowmobiles and has gained a strong reputation and knowledge base on motorsports vehicle sales.
In addition, Jim Michael is a professional backcountry snowmobiler and motorsports enthusiast. He started riding motorsport vehicles at the age of five and has participated in a number of competitions throughout his career. His past entrepreneurial and management experience will directly apply to his ability to manage, grow, and scale Motorhub Motorsports to become known across the State as a top choice for pre-owned motorsport vehicles, accessories, and repairs.
Motorhub Motorsports has a goal to become experts in the field of motorsports and will employ a strong corporate culture of interest and passion in a variety of motorsport activities. As a professional backcountry snowmobiler, Jim Michael will employ a culture of knowledge sharing and community at his motorsports dealership, inviting customers to ask questions, learn from staff, and trust Motorhub Motorsports for all their motorsports questions and needs.
Motorhub Motorsports will recruit via traditional recruitment techniques such as Indeed, Glassdoor, and Workopolis. Additionally, Mr. Michael will leverage his industry connections to attract and retain top talent in the automobile and motorsports sales industry. Within the next two years the company will recruit the following staff members:
Salary: $50,000 per year
- Maintains records of financial transactions by establishing accounts; posting transactions; ensuring legal requirements compliance.
- Develops a system to account for financial transactions by establishing a chart of accounts; defining bookkeeping policies and procedures.
- Maintains subsidiary accounts by verifying, allocating, and posting transactions.
- Balances subsidiary accounts by reconciling entries.
- Maintains general ledger by transferring subsidiary account summaries.
- Balances general ledger by preparing a trial balance; reconciling entries.
- Maintains historical records by filing documents.
- Prepares financial reports by collecting, analyzing, and summarizing account information and trends.
- Complies with federal, state, and local legal requirements by studying requirements; enforcing adherence to requirements; filing reports; advising management on needed actions.
- Contributes to team effort by accomplishing related results as needed.
Salary: $60,000 per year
- Open and distribute incoming regular and electronic mail and other material and co-ordinate the flow of information internally and with other departments.
- Schedule and confirm appointments and meetings.
- Order office supplies and maintain inventory.
- Answer telephone and electronic inquiries and relay telephone calls and messages.
- Set up and maintain manual and computerized information filing systems.
- Determine and establish office procedures.
- Compile data, statistics and other information.
- Supervise and train office staff in procedures and in use of current software.
Salary: $60,000 per year
- Dismantle engines and repair or replace defective parts, such as magnetos, carburetors, and generators.
- Remove cylinder heads, grind valves, and scrape off carbon, and replace defective valves, pistons, cylinders and rings, using hand tools and power tools.
- Hammer out dents and bends in frames, weld tears and breaks; then reassemble frames and reinstall engines.
- Repair or replace other parts, such as headlights, horns, handlebar controls, gasoline and oil tanks, starters, and mufflers.
- Repair and adjust snowmobile/dirtbike/UTV/ATV subassemblies such as forks, transmissions, brakes, and drive chains, according to specifications.
- Replace defective parts, using hand tools, arbour presses, flexible power presses, or power tools.
- Reassemble and test sub-assembly units.
- Disassemble subassembly units and examine condition, movement or alignment of parts visually or using gauges.
The following financial projections have been developed by the management team of Motorhub Motorsports.
Pro Forma Income Statement
Pro Forma Cash Flow Statement
Pro Forma Balance Sheet