Used motorcycle shop with a service bay

Local riders, first-time buyers, commuters and hobbyists looking for a reliable used bike, plus owners who need repairs.

Margin on each bike sold, labor charges for servicing, and markup on parts, accessories and gear. Fees for paperwork or trade-ins can add a little.

• Mechanical knowledge of motorcycles
• Valuing and negotiating used bikes
• Customer service and sales
• Keeping accurate records

• Most states require a motor vehicle dealer license, and some require a surety bond and a set premises, so check your state's DMV or licensing board
• Garage liability and garagekeepers insurance, plus coverage for bikes on the lot
• Zoning, signage and environmental rules for storing fuel, oil, batteries and used tires, so check with your city or county
• Title and odometer paperwork, and the risk of buying a bike with a lien or a salvage history
• Tied-up cash in inventory, and the seasonal dip in sales in colder states
• Sales tax registration, and workers' compensation if you hire a mechanic

Startup costs are typically around $30,000 to $120,000, depending on your lot or unit rent, how many bikes you stock, and the tools and equipment for your service bay. These are estimates, and inventory ties up cash.

Monthly revenue is typically around $15,000 to $60,000, depending on how many bikes you sell, how much servicing and gear you add, and your location. Sales can dip seasonally in colder states, and this is revenue, not profit.

Most states require a motor vehicle dealer license, and some require a surety bond and a set premises, so check your state's DMV or licensing board. Also check garage liability insurance, zoning, and title and odometer paperwork.