How would you acquire a MZ dealership?

[Uberkraut]

I've noticed there is not a MZ, Triumph, or Moto Guzzi dealer in the Cincinnati area. The nearest dealer is VERY far away. So far that I wouldn't buy a new bike without the support of a dealer.

Who would I contact?
What is needed to qualify?

[DAVID THOMPSON]

ask John Casimir
he posts here on the site he can hook you or some one in your area
that is intrested in being a dealer with the proper person at mzna

[Uberkraut]

Thank you so much!

[cdfisher]

You will have to have a dealership license for your state and then purchase a minumum amount of bikes from MZNA. John is discriminating a bit more lately as to the type of dealer he wants to represent MZ, and that is a good thing.

Normally, it's better if you have Transamerica or GE financing available because these bikes take awhile to move. If you're looking for a "hobby" shop, these bikes are priced outside of the hobby style of dealership. I don't mean that in a negative manner, it's just the amount of money that you can tie up in a few bikes is beyond those who wish for a dealership to pay for their passions. One thing about MZ, you have to believe in it and then be patient. Then be patient some more...

Sincerely,

[cdfisher]

You know, I should have covered the basics first. This is sage advice to anyone about starting a dealership. Don’t take any offense to this criteria. I am qualified to comment because I started a dealership with 3 other partners last year. You can become a dealer using your own money, but you should be Scotsman-like in your approach (deep pockets with short arms). Another way is to use OPM (Other Peoples Money) and leverage your own cash. Either way, you will need a squeaky clean credit history and if your going OPM most certainly a business plan that shows projected cash flow, inventory and assets.

Banks and other lending institutions haven’t a clue how to interpret your business plan. They want you to show you have your homework done, then they will look at your numbers. Having a well prepared plan that covers every aspect of the business is essential to getting an audience with the lenders board. This is especially key if you have never been in REAL business before. REAL business is one that you have risked and gained (or lost) tangible assets in an endeavor that is TAXABLE. Don’t walk in with your under-the-table garage business and expect it to count.

You usually deal with a VP of something or other. Almost everyone in a bank is a VP, or clerical or a teller. So don’t let that VP title fool you. The job of the VP is to filter the bad candidates and present the good ones. If you can make it to the board with the VP’s blessing, then you still have to pass muster on the plan.

The decision is always based on one criterion. CAN YOU PAY THE MONEY BACK? Your business plan says so, but as I said, they really don’t understand it, even if they read it. They then look to your collateral. House, cars, stocks, retirement, they love liquid retirement packages. Those are like lip-smackin’ good! Well, now everything checks out. You are the solid business type and they lean back and say to you: “Yes we can apply for an SBA loan at this time”. Of course, you won’t hear this until at least your 10th bank, but you got great game. Also, in the beginning, deal with one bank. You can submit to three or four, but you’ll run yourself ragged with all the junk each one wants from you. Stick with one or two, and after those have turned you down, get all the data together and submit to many banks at once.

SBA is not an option unless your credit is perfect and your own cash is at least 30% of what you’re asking for. Assets are about liquidity. If they are tools and machinery, its worth pennies on the dollar, and the bank doesn’t want them back. SBA will normally guarantee 75-85% of the loan. That’s why you have to have the cash to have skin in the game, otherwise, SBA may turn you down. You have to get the bank first though. Otherwise, SBA will run you through all kinds of hoops just being bureaucratic. They will offer you seminars and all kinds of things to insure your presentation to the bank is perfect. If you need this, do it. But you’re better off getting some books and studying what you need to do, then just do it. Trying never gets anything done, doing it does.

If you have a timetable for getting this done, double it, then add three months for good measure. The bank people are the worst for time off, meetings, training and seminars they have to attend and every other thing except dealing with your schedule. You can show it to them, plead with them, but never, never threaten them about going somewhere else because they are taking too long. Just quietly go somewhere else. They weren’t interested anyway, eventually, you will find a bank that takes you seriously. Getting into business is about persistence. If you can’t last the time it takes to get funding, then you should probably consider doing something else. Now this is important: DO NOT SPEND YOUR MONEY UNTIL YOU HAVE THE NOD FROM THE BANK THAT EVERYTHING IS GOING TO GO THROUGH. Finally, you will get the call. The money is there and it’s time to move. Your new life has begun. Embrace it and get busy.

[DAVID THOMPSON]

Embrace it and get busy
What Curtis means is get ready to get off your butt and do serious work.
Most shops i worked at the parts guy and the mechanical staff
were there at 7:30 to 4pm the new and used bike sales at 10am 7pm

a closing mechanic came in at 12 noon and finished at 8pm
if parts sales was busy a afternoon parts man.. noon to 8pm to help
with parts pull packing and shipping.. Shipping labels were
done with magic marker (1970’S before the great and wonderful confuser )

I was a parts guy and worked 8am to 2pm tue to sat
Then drove each day 100 miles to a bowling alley where I worked
From 5pm to 11pm then 100miles back to the shop took a shower
And slept in the back room till 730 am when it started all over again my off time was 11pm Sunday night to 8am tue
This went on for 2 years it’s a fast way to wear out yourself and a 750 BMW

And the shop owner was a conductor on the B&O RR and was doing 6 and some times 8hr in the shop and 8 to 14hr on coal trains
AND THEY CALL IT THE GOOD OLD DAYS?


Standup get off your butt and get ready to do serious work.