Topic: I want to pick your brains about a business venture im looking at

[Shtonecb500]

Hello all.

Last year I went on a cross country trip and found a honeypot in a run down forgotten town, hundreds of bikes in all conditions.
I went there in need of a clutch cable repair, was offered a job before I walked out of there with plans to return at some point after my trip. Well, that time is here.

Basically, this guy is still an active suzuki dealer, his shop looks like he bought out multiple shops over the years and has just been accumulating. If this place was in a city setting it would be picked dry, but it isn't. My buddy and I are kinda dropping everything and going there. The owner mentioned people have tried to come in and help him sell, but from what I took away from the story was that people get frustrated when dealing with all the random parts. This guy doesn't need help selling whole bikes, project bikes, rollers, he needs help selling the tanks, exhaust pipes,  needs parts bikes made whole or dismantled. I plan on going there, organizing everything, dealing with the parts and the hard stuff first, then essentially creating a catalog of everything we have.

The owner said he is willing to pay cash, in parts, and bikes. I'm wondering if any of you have suggestions to software to use to catalog outside of excel and or pen and pad, anything I need to keep in mind selling bikes, transporting bikes, dealing with shop owners, how shop owners conduct business, things I should keep an eye out for?

I know what i'm asking you is sort of vague and broad but I figured I would type this out anyway. After the parts and tanks and junk is sorted through, I'm sure we will spend time getting certain bikes running again, there is just about every type of bike and part I could think of which has me leaning towards all conversions and swap possibities.

Another thing, if you are looking for a specific bike, please comment it here, there are said to be over 300 bikes on the property, some of which I have not seen yet. I saw almost every kind of bike, lots of dirt bikes mostly old japanese stuff. I will need to create some kind of request list like this to help move inventory, so tell me what you need and give me a few months.

any input, advice, is appreciated.

thanks for reading.

[754]

 It sounds like a fun adventure, hope it stays that way.... things can change..
  Jyst keep in mind 3/4 of the stuff will be slow moving..  with maybe a few sales. But as you saidm  important to know what is there , and RESPOND QUICKLY  when asked.
 I assume there is a fairly well equipped shop to be able  to work on everything.  Tire machine ..etc

 Good Luck...
 
 I spent a fair amount of time at a mid size salvage yard , as it was closing down...  it hurt to see what happened to some of it, but when its time to go.... it has to go.l

[ekpent]

 Did you snap any pictures when you were down there the first time ?
  There was an episode on American Pickers once where there was a guy who owned multiple buildings that were full of mostly old Jap bikes. Seem to remember he may have owned a dealership at one time also. I guess there are hordes still hiding out there.

[Shtonecb500]

Did you snap any pictures when you were down there the first time ?
  There was an episode on American Pickers once where there was a guy who owned multiple buildings that were full of mostly old Jap bikes. Seem to remember he may have owned a dealership at one time also. I guess there are hordes still hiding out there.

thats two rooms, there is a display room with a mix of nicer bike and customer bikes, there is also a basement full of #$%*. crotch rocket front ends in boxes, wheels, exhausts, blah blah.

[goodtryer]

Beware of spending a lot on a software solution. They cost a lot to begin with and inevitably need lots of customization and upgrades and support.

On the other hand, there are lots of hardware tools that are inexpensive, quick, and helpful. Off hand , I’d look into barcode scanners, barcode printers and oil-proof labels.

And even though you said “not Excel”, there’s a lot you can do with a simple tool. The key is to not try to do too much at once. Keep it simple. One table for inventory, one table for sales. It’s easy enough to subtract one from the other, it’s easy to create a new inventory list to compare to the one from last month, etc.

Do the accounting somewhere else, prices, customers, etc.

[754]

Well that stuff looks pretty good , and well preserved..  good potential..

 My guess is, the owner is years into the burnout point, and for him its not fun anymore.
 That does not slow down the buying and accumulating, that usually stays  fun..right to the end..

[Shtonecb500]

Well that stuff looks pretty goid , and well preserved..  good potential..

 My guess is, the owner is years into the burnout point, and for him its not fun anymore.
 That does not slow down the buying and accumulating, that usually stays  fun..right to the end..

He and his wife are screaming "im ready to retire, come buy this place or help me sell it all"
They are very much at the end of the road and have realized they have  a TON of work in front of them. I wish I was in a position financially to buy the entire building but im not lol. Everything in there was just dusty for the most part, no "junk", he has a semi truck trailer full of bikes outside the shop, once room is made inside I can start unloading it.

[seanbarney41]

wow...looks like a great opportunity.  I wish I knew what advice to go give you.  Good luck anyway!

[madmtnmotors]

A database will have a lot more flexibility and organizational tools than excel. Open Office is free and is fully compatible with MS Office:

https://www.openoffice.org/product/index.html

Open Office "Base" is the database software and might be worth learning to help tame the task before you. Best of luck! 

[Alan F.]

+1 on Open Office

+1 on the bar codes too.

I've used this code39 font before:
https://download.cnet.com/Free-TrueType-Code-39-Barcode-Font/3000-2190_4-10067143.html

Freebies are good, powerful freebies that work are even better.

I recommend searching Craigslist for cheap laser printers and paper. Print your labels until toner runs out, if a printer works well keep it and buy a cheap toner cartridge and use it until you can't. Laminate your labels with dollar-store packing tape, it'll stay in place for 2 or 3 years before needing reapplication. Add English language descriptions to your tags and locations too so you can physically locate an item and not just know you have one.

String-Tags (toe-tags) might be a cheap option for some parts, cut out and tape your laser printed bar codes to the tags. https://www.ebay.com/itm/133635151576?hash=item1f1d4696d8:g:6D4AAOSwbwFf~Vte

Stockrooms I've worked in years ago used Locations A thru Z then AA thru ZZ then AAA thru ZZZ
(That's 78 locations, 6 foot tall racks could yield 6 shelves totaling 468 shelves, multiple items per shelf A, B, C, D... just 4 items per shelf = 1872 separate items cataloged and stocked. Multiples of the same item go in the same location.

Shelf#
Location left to right on that shelf

A-1-A is location A, top shelf, on the left.

You can modify as needed but it's a useful premise to catalog and organize vast amounts of parts.

You can find manufacturer's part numbers using online parts fiches like www.partzilla.com and www.cmsnl.com sign up for a free login at CMSNL and they give you the FULL Cross Reference of other bikes a part is used on, not just a short partial list, a really handy tool that!

I wish I was in a position to quit my job and join up, I really do. Tell me it's in the Northeast and I'll hang out and work for parts and free beer. Better yet I'll take a week off and ride out to lend a hand for room&board and buy the beer myself. Brothers gotta take care of Brothers, internships man!

[Kelly E]

That sounds like a lot of fun work to me. I love wrecking yards, especially well organized ones. Maybe we'll be ordering parts from you in the future. My friend and I resurrect older bikes into reliable riders. Currently we are doing some entry level bikes. Last month we did an 01' Suzuki LS650 Savage and we just finished a 95' Honda CB250S Nighthawk. We like to put reliable bikes under the new riders so all they have to worry about is learning to ride, not about the bike too. There's ten bikes we keep in our stable to ride. Maybe by the time you've up and running we'll have started on our 80' Suzuki GS 1100E because we will be needing a bunch of stuff for it. They are great riding bikes. We're called Rust Bro's Garage on FB.

[BenelliSEI]

I did something similar when I was a lot younger. If I could go back again (and you are flexible), lay some ground rules. For example:

1. My buddy and I are prepared to invest X amount of time. Probably a year or two.
2. Move in locally and expect to generate your bare minimum living expenses.
3. Expect the owner to pay for any inventory/sale  system/equipment you need.
4 Track and compare sales/profit growth to the last 12 months of the actual business performance.
5. Post the performance increase monthly, and have the owner agree to run the tally. Agree to your “share” of that monthly gain. Ultimately you can take that amount as a bonus, or leave it with him as a deposit on buying the business?
6. Expect to be compensated for growth you drive. If that’s not acceptable, walk away.

If you keep an accurate score card, you will quickly know if it’s worth sweating it out, or time to move on. Make sure you have a plan laid out, and accurately plot your performance every few weeks. If you can’t get total agreement, in writing, in advance; don’t waste your time. Good Luck!

[ken65]

I did something similar when I was a lot younger. If I could go back again (and you are flexible), lay some ground rules. For example:

1. My buddy and I are prepared to invest X amount of time. Probably a year or two.
2. Move in locally and expect to generate your bare minimum living expenses.
3. Expect the owner to pay for any inventory/sale  system/equipment you need.
4 Track and compare sales/profit growth to the last 12 months of the actual business performance.
5. Post the performance increase monthly, and have the owner agree to run the tally. Agree to your “share” of that monthly gain. Ultimately you can take that amount as a bonus, or leave it with him as a deposit on buying the business?
6. Expect to be compensated for growth you drive. If that’s not acceptable, walk away.

If you keep an accurate score card, you will quickly know if it’s worth sweating it out, or time to move on. Make sure you have a plan laid out, and accurately plot your performance every few weeks. If you can’t get total agreement, in writing, in advance; don’t waste your time. Good Luck!

Excellent advice. I've been in a similar position but not with bikes. You have to make sure its worthwhile.

[ken65]

Looks like  a couple of old kwaka triple tanks on the bench. Anything triple these days is big biccies.

[BenelliSEI]

Looks like  a couple of old kwaka triple tanks on the bench. Anything triple these days is big biccies.

True! I meant to add: this place looks viable! Dry, relatively clean, and decent stuff. Encouraging.

[ekpent]

 Does that guy have any more open space left around there or is it all packed tight like in the video. Not having space to organize stuff will make it rough. How are you planning on merchandising the loose parts, E-bay and Facebook etc..  The  best way to move large amounts of stuff quickly especially if not the most choice stuff is to have a 1 day old fashion live in person well advertised auction.

[Don R]

 I'm reminded of an old saying. It's like eating an elephant, you have to do it one bite at a time. 
 That was always my thought when getting a blueprint for a large plumbing job. All of it will overwhelm you so just
 concentrate on the first part first.

[ekpent]

 The elephant thing was one of my fathers favorite go to lines and I use it still today also Don.

[Alan F.]

Shipping costs have gone entirely insane and have crashed through the ceiling on their way to crashing through the roof.

USPS flat-rate boxes are still a fairly good deal but capacity is limited there.

I work for a big company that has their own FEDEX account, it seems that they get LARGE (2/3+) discounts over regular retail pricing. It might be worth looking into.

And again, Craigslist for used boxes and packing materials, don't pay full price if you don't have to.

[rb550four]

 Is there enough room for another temporary storage unit on the property? You may want a place to put partially assembled bikes that should go out as individual parts in that space instead of in your working space while taking inventory,  leaving enough indoor room for ongoing rebuild project stations for whole bikes for sale, and enough room for showroom/clean area of finished machines to keep them safe no matter if you are selling locally or on line...gotta keep them safe and clean ready for immediate sale once they are ready. 
  This is the kind of stuff we all dream about . There may be many dangers and rewards, be careful. I would be interested in knowing the history of how and why this business is failed, and more about the owner that you will be partnering with because he is the reason the place is in that condition ,and you'll want to be sure this owner is ready and willing for the change so you don't find yourself hung out in the wind by an owner with bad business decisions or a partner that is in severe debt that may leave you vulnerable.

[Shtonecb500]

Thank you for the advice everyone.

There is a basement in this building with a huge loading ramp instead of stairs, so I plan on taking every easy rolling rollers/bikes downstairs and lining them up to make room upstairs. I plan on tagging every customer bike so I don't waste time, moving them into the display room. There is another side to the building behind me, the room opposite the one with the car lift in it is the service bay which has another 20 bikes stored in there as well. The other opposite room is the show room/office.

This couple has got to be in their early 60s, hippies, very nice. They said they were in another building before but purchased this one 5-6 years ago for more room and the building had a history. They really are just in the middle of nowhere, seems like the only thing people around there like are Harleys so it makes sense to me that this place is still sitting there. The wife was very vocal about wanting to retire soon and he seemed to drag his feet on the matter, he did make it very clear that he was not attached to anything in the shop and wanted it all sold. He is ready to thin out his collection but it didnt seem like he is ready to retire....probably ready to get rid of everything and buy more stuff! my buddy and I are planning on helping them clear through their service back log. When I went in there for clutch cable repair she told me that all the customer bikes in the shop were quoted 3-4 months out.

My priority is the random parts, that huge bin of exhaust pipes, the gas tanks, pretty much all the headache stuff, Im going to let my buddy who is more mechanically inclined do most of the evaluation and diagnosis, I have another buddy who is great with numbers and very anal, he can handle catalog and sorting. Im pretty much the muscle and hustle, going to keep #$%* moving. My buddies told me I would have to spearhead this so...ya.

Worst case scenario, I walk out of there with enough projects and parts to keep me busy for the next 5 years.

Ill keep everyone updated.

[BenelliSEI]

Best of luck. Keep a diary!

[70CB750]

I used to work in DAM - digital asset management - and thats the system you would want to catalog parts.  In lame terms you get picture, metadata describing whats in the picture and keywords helping you to find the picture - all together it makes digital asset.
I am out of it for few years, but there are some over the counter solutions that you can use, the biggest expense will always be the cataloging of the bulk.  Once you have your system and data in place, you can just add new parts as needed. 
From my ebay experience i believe most of the bike places just load the picture and data to ebay and keep it there till it sells. 

[Rookster]

This is just my opinion but I noticed you used "we" a lot in your post.  Don't let this guy's problem become your problem. He obviously needs help to sell it off.  As a contractor you need to set specific rules and prices for what you are doing.  Don't take this on as a personal project.  At the end of the day the inventory belongs to the owner not you.  Don't do anything for him "as a friend".  You need to get paid for your work and your work needs to stop at the end of the work day.  There is a reason shops end up this way and it is usually poor management of both inventory and people.  Most of the time these places either auction off their inventory of sell it in one large chunk.  Attempting to sell off a dealerships inventory piece by piece will take years.  Set clear expectations and have a plan for the stuff that doesn't sell in a reasonable amount of time.  Good luck.

Scott

[Shtonecb500]

This is just my opinion but I noticed you used "we" a lot in your post.  Don't let this guy's problem become your problem. He obviously needs help to sell it off.  As a contractor you need to set specific rules and prices for what you are doing.  Don't take this on as a personal project.  At the end of the day the inventory belongs to the owner not you.  Don't do anything for him "as a friend".  You need to get paid for your work and your work needs to stop at the end of the work day.  There is a reason shops end up this way and it is usually poor management of both inventory and people.  Most of the time these places either auction off their inventory of sell it in one large chunk.  Attempting to sell off a dealerships inventory piece by piece will take years.  Set clear expectations and have a plan for the stuff that doesn't sell in a reasonable amount of time.  Good luck.

Scott

I absolutely agree with you, when I say "we" I mean me and my two buddies who might go with me. We absolutely are still trying to figure out why this guy is in this position, and waiting for a lot of information to come to us, worst case scenario the three of us walk out of this place with a ton of projects to take home and a new bikes.

I plan on going in and offering him one thing at a time, the first is organization. For me, I can get the place organized and cleaned up. I can get the dirt bikes in one area, sport bikes in another, yada yada. That will allow me to catalog everything so I can put a price on the building and inventory. Thats pretty much where the ball stops for me as far as physical labor, going to have to crunch numbers and make sure its all worth anymore time.
Ill most likely choose some bikes as payment but im open to anything as he said he was as well.

Ive considered cataloging everything so i can auction everything in one swing, Ive gone around to some local motorcycle dealers here in michigan, honda,susuki,yam, and they were very interested in the list I accumulate. Im not trying to be this guys savior or anything but Im up for the challenge if I can put together the right team and clear communication between all parties up front.

Best case: I help this guy retire
worst case: I leave with enough projects bikes/parts to last me a couple years