Business Idea - Motorcycle Breaker

[Darby]

Hi,

I am currently serving as an engineer in the Royal Navy but am about to be discharged on medical grounds (within the next few months).

I am expecting a gratuity of circa £15k and pension of around £500 per month (payable from discharge).

I intend to use this opportunity to start up my own business. I intend to buy crash damaged/non-running motorcycles and dismantle them. I will then sell the components online, on ebay, over the counter etc.

Motorcycle spares are rather expensive and I can strip a bike in a few hours.

Do you think that this will be a viable business?

My initial expenses, as far as I can tell, will be mainly:

• 
  Workshop Rent (approx £600 pcm)

• Workshop fixtures & fittings

• Van

• Tools

• First few damaged bikes

• Fees (accountant, business rates, council permits etc)

Have I missed any major expenses?

Do you think that £15k is a realistic budget for this kind of project?

Thank you in advance for your help.

 

[vvaannmmaann]

Contact your local council to see what you need.Some have different regs to others.

This may also help
http://www.ukbusinessforums.co.uk/forums/showthread.php?t=118487&highlight=scrap+cars

 

[Darby]

Very helpful. Thank you

 

[showtimeni]

I know a guy who does something similar to this. He gets all his customers from motorcycle clubs on facebook and forums..... good place to get your name out there

 

[Big Pete]

Hi,

I am currently serving as an engineer in the Royal Navy but am about to be discharged on medical grounds (within the next few months).

I am expecting a gratuity of circa £15k and pension of around £500 per month (payable from discharge).

I intend to use this opportunity to start up my own business. I intend to buy crash damaged/non-running motorcycles and dismantle them. I will then sell the components online, on ebay, over the counter etc.

Motorcycle spares are rather expensive and I can strip a bike in a few hours.

Do you think that this will be a viable business?

My initial expenses, as far as I can tell, will be mainly:

• 
  Workshop Rent (approx £600 pcm)

• Workshop fixtures & fittings

• Van

• Tools

• First few damaged bikes

• Fees (accountant, business rates, council permits etc)

Have I missed any major expenses?

Do you think that £15k is a realistic budget for this kind of project?

Thank you in advance for your help.

I would say the budget is fine for that .. Good Luck ..

 

[3 MORE YEARS]

I think it's a very good idea. From my point of view what would make it even better is if you could advise people on parts, so you add value to your product or service. If you did that then people like me may be willing to pay a bit more to buy the right part.

Good luck.

 

[Matt1959]

a guy not far from me does this from a proper work unit and always seems to be busy - well he's been going about 15 years so must be doing something right he also sells damaged repairables. £500pcm should get you quite a big place. The beauty of bikes is they have a small footprint unlike a car, so you can make great use of your space.

 

Sure there is a demand,you may need a website to get known country wide.

Could you not find somewhere cheaper,always keep your overheads To a minimum when starting something like you are proposing.You don't need to be on the high st for bike parts.

Be very carefull how you spend your advertising budget,money don't go far in that area.


I think maybe sourcing stock may be your main problem.I expect the established lads are in with the police and insurance companies e.t.c.

Earl

 

[thebigIAM]

I thought your workshop rent was a tad on the high side, too. Do you already have one in mind? How big is it?

 

[sanjiv]

TBH with you mate, it is a good idea but you should test the market first. Get yourself slightly estabilished and then go for the workshop. Just rent a garage or something. As a sole trader do you need an accountant? See if you can get a good deal on renting a van.

I think it is a good idea, however there is always the slightest chance of it not working out and you wouldn't want to blow 15k. Would to better to start of smaller and safer.

That's what I would do anyway.

 

[Darby]

Thank you all for your advice.

The £600 a month is for 1,800 sq ft. The same business centre has units ranging from £175pcm (250sq ft) upwards. perhaps it would be best to start with a smaller unit.

I hadn't thought about renting a van. I'll look into it but I suspect it will work out cheaper to buy a used one for a grand or so.

A website is no problem as I've designed a few in the past.

I don't know whether I'll "get" an accountant or not, but I'll probably at least consult one prior to starting out.

Once again, many thanks.

 

[sanjiv]

That sounds good mate

Good luck

 

[Duke Fame]

I's echo the above. Start small, almost as a hobby business, work on sourcing the bikes and just use a garage for now.

When I needed a part for my car, I used one of the online services which put my in touch with a breaker. This obviously costs the breaker but worth looking into as a source of customers.

For more specialist parts, get yourself a presence on the forums, I find bits for our Figaro this way.

 

[Deleted member 54079]

I've been thinking along the same lines as I already have a Fiat Scudo van which would need a towbar fitting and the purchase of a motorbike trailer and I also rent a lock up garage in a secure compound.

I would probably try and start with a lock up garage if possible for storage to reduce your initial overheads just to see how busy you are. Downside is no electricity and no toilets for yourself.

The most difficult part is sourcing damaged bikes at a reasonable price as the insurance disposal companies appear to want quite a bit of money for them.

I used to know someone who purchased damaged Honda Goldwings as a hobby and repair them, he was so busy he nearly packed in a very good job to do it full time.

Good luck and let us know how you go on.

 

[cjd]

There is a market but there are people that already do it.

As far as your budget goes. You missed

1. Utilities - Gas, electricity, council tax, water?, broadband and telephony (happy to help

2. disposal of scrap and toxic materials

3. Payments - how are you taking cash? - you may need a credit card terminal and an account with a clearing bank.

4. Insurance?

5. web site

6. Marketing - how are you going to let people know you're around? Just ebay?

6. packaging materials and postage

Then add 25% for stuff you have thought of.

As said above - start small, don't splash out on big capital items or rental obligations that you can't get out of quickly.

Find the major brands and owners clubs forums and advertise there.

 

[vvaannmmaann]

Not sure where you are,these guys are in Cheshire.
http://www.cheshiremotorcyclesalvage.com/

 

[SusanP]

I don't know anything about motorbikes, but I'd say you need to budget for advertising - to reach out to sellers of old bikes as well as buyers of your spare parts.