Powersports shop with servicing workshop

Local riders, farmers and rural businesses, families buying for young riders, and recreational riders needing servicing and repairs.

Vehicle sales margin, workshop labour and parts, and sales of gear and accessories. Servicing gives steadier income than vehicle sales alone.

• Mechanical skills or a qualified mechanic on the team
• Selling and customer service
• Stock buying and cash flow management
• Running a small workshop

• A motor dealer licence is likely needed, and mechanical work may need qualified staff, so check your state's rules
• Stock finance and unsold stock can strain cash flow
• Seasonal demand and weather swings
• Public liability, stock, property and workers compensation insurance once you hire
• Safety standards and recall obligations for the vehicles you sell
• Dealer agreements with manufacturers may set targets and display requirements

Startup costs are typically estimated at around $60,000 to $250,000, depending on your premises, the stock you carry and your workshop set-up. Stock finance and unsold stock can strain cash flow, so budget for that.

Monthly revenue is typically estimated at around $25,000 to $120,000, depending on how many vehicles you sell and how much servicing, gear and parts work you win. Demand can swing with the season and weather.

Check your state's rules, as a motor dealer licence is likely needed and mechanical work may need qualified staff. Also check safety standards and recall obligations for vehicles you sell, any manufacturer dealer agreement terms, and your insurance.