Before you decide to go into business for yourself and open a motorcycle salvage yard, learn the legal and business requirements. Although anyone can open a motorcycle salvage yard, more information is required than you like to ride and fix everyone's bike on the side. The key is to get your business open and profitable within a reasonable time. Rather than purchase the motorcycle parts in advance and store them in your own garage, you must have a long- term, successful business strategy. Preparation is the key, as you begin to implement financial budgets, streamline the product retrieval process and determine methods of advertisement.
Learn all you can about the business on someone else's money. Become an employee and let them pay you as you volunteer to work in all the different aspects of the business from the ground up. Observe each different operation of a motorcycle salvage yard. From the office, assist in time sheets, payroll, ordering supplies and budgeting. Speak to insurance adjusters, clients, vendors and banks on the phone. Look at the business ads, posters or advertising campaigns, as you save your money to finance your business.
Organize your business. Make a business plan yourself, rather than farm it out, so you know what you want to accomplish and the time frame for each item. Decide on a business name and a location. Consider freeway access and the local zoning codes for the area. Contact the local planning board before you negotiate a lease and ensure the area you select is zoned for a motorcycle salvage yard business. Go to the local city, state and federal licensing boards and prepare the documents for a business licensing. Contact the IRS and apply for a tax identification number.
Get your financials in order. Choose a bank and open a bank account for the business in its name. Apply as a business merchant to accept credit cards as payment for supplies. Pick up credit card applications and apply for credit cards for the business. Buy a software program and set up a billing program and a payroll plan for the business. Print business cards, letterhead, and envelopes for your motorcycle salvage yard.
Attend motorcycle auctions. Inspect the merchandise for sale and watch how the bids are handled. Discover the differences between the titles and the various methods of transporting large quantities of the vehicles. After you understand the bidding process, examine the bikes yourself and pick out several to bid on as you add to your motorcycle salvage yard supplies.
Schedule and advertise the "grand opening" of your motorcycle salvage yard business. Insert print ads into the motorcycle magazines in your area. Speak to the local retail merchants of motorcycle gear and ask them if they would allow your flyer to be displayed in their store. Consider purchasing the back of the receipt to advertise your grand opening.