Freedom Cycle Motorsports

Words in [brackets] are blanks you fill in with your own details when you adopt this sample in Supreme Plan AI.

Executive Summary

Freedom Cycle Motorsports is an independent motorcycle dealership and service shop in Knoxville, Tennessee, owned by Rick and Dana Maddox. We sell inspected used and new motorcycles, parts and gear and offer service and repair.

Why this fits. Interest in riding and commuter bikes has grown, and riders want a local shop that is honest and skilled. A well-run independent shop with service revenue can build a loyal following.

Here is what our numbers show. In Year 1 we plan about 40 used bikes, 14 new bikes, 1,500 parts and accessory sales and 500 service jobs. That brings in sales of $815,500, growing to $2,676,688 by Year 5. We expect a loss of about $78,000 in Year 1, a loss of about $35,100 in Year 2, a profit of about $46,500 in Year 3 and a profit of about $208,600 by Year 5. The opening inventory, the shop lease, staff pay and insurance are our largest costs, and the plan counts all of them.

We need $375,000 in total. Of that, $261,000 is startup costs (shop lifts and diagnostics, showroom fixtures, a trailer, software, opening inventory, licensing and insurance, a lease deposit and a grand opening), and the rest is cash for the first months. We are putting in $80,000 of our own savings and asking for a $295,000 SBA 7(a) loan.

We are Rick and Dana Maddox, owners of Freedom Cycle Motorsports. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Freedom Cycle Motorsports will be a limited liability company (LLC) in Knoxville, Tennessee, owned and run by Rick and Dana Maddox. Rick has sold and repaired motorcycles for years and holds a dealer license. Dana handles finance paperwork, customer service and the books.

What we do:
- Pre-owned motorcycles and scooters.
- New motorcycles from one or two manufacturers.
- Parts, riding gear and accessories.
- Service, repairs and seasonal maintenance.
- Trade-ins and consignment.

Who we serve: Riders, commuters, hobbyists and new riders within about 60 miles of Knoxville.

Licensing and insurance. We will register the LLC, obtain the state motor vehicle dealer license and the sales tax permit, carry garage liability, property and workers compensation insurance, follow federal and state rules for titles, odometer disclosures and warranties and keep all transaction records. We do not offer financing ourselves and refer buyers to lenders.

Our promise. Honest prices, well-prepared bikes and service that keeps you riding.

Where things stand today. The business plan, inventory plan and price list are written. The next steps are the lease, the dealer license, the inventory and the grand opening.

Problem & Opportunity

Riders want a local shop they can trust for a bike, parts and service, and many dealerships are distant, expensive or pushy.

What customers run into:
1. Dealerships that push financing and add-ons.
2. Used bikes sold without inspection.
3. Long waits for service in the riding season.
4. No local shop for beginners.

Why it matters. A motorcycle is both a hobby and a safety-critical vehicle, and riders value an honest shop with skilled technicians.

Products & Services

Freedom Cycle will be the shop in Knoxville that keeps riders on the road.

What makes us different:
1. Every used bike inspected and serviced before sale.
2. Clear prices and no pressure.
3. Skilled technicians and fair labor rates.
4. New rider guidance and gear fitting.
5. A friendly riders community and events.

How a sale works:
1. The customer visits the shop and tells us what they want.
2. We help choose a bike, gear and a plan for training.
3. We prepare the bike, complete paperwork and deliver it.
4. We schedule follow-up service and invite the rider to events.

Why customers stay. Riders return for service, gear and their next bike, and recommend the shop at clubs.

Market Analysis

Who we serve:
- Beginning and returning riders.
- Commuters who want economical rides.
- Hobbyists and club members.
- Riders needing service and parts.

How we sized the market. Our Year 1 plan is about 40 used bikes, 14 new bikes, 1,500 parts and accessory sales and 500 service jobs, a small share of the motorcycle market in a region with strong riding. Replace this estimate with your own count of riders and dealers near you.

Why now. Interest in riding and scooters for commuting has grown, and riders want a trusted local shop.

Competitive Landscape

What customers can do today:

1. Large dealerships. Wide selection and higher prices.
2. Other independent shops. Skilled and varied.
3. Private sellers. Cheap and uncertain.
4. Online marketplaces. Wide choice and uninspected bikes.
5. Big-box parts stores. Convenient and limited.

Where we fit. Freedom Cycle will be the local independent shop with careful inspections, honest advice and fair prices.

Marketing & Sales Strategy

How customers will find us.

Before opening:
- Meet riding clubs and local groups.
- Host an open house and demo day.
- Set up a website with inventory and a Google Business Profile.
- Offer introductory service specials.

After opening:
- Ask every customer for a review.
- Host monthly ride days.
- Offer service reminders.
- Share bike photos on social media.
- Partner with riding schools.

What we will measure. How customers heard about us, how many visitors buy and how many customers return for service.

Operations Plan

How the business will run.

Season and schedule. Riding season runs from spring to fall in Tennessee, with winter work focused on service and parts. We plan inventory around the season.

Team. Rick runs the shop and sales. A technician, a sales associate and a parts and service advisor join in Year 1 and Year 2, and we add staff as sales grow.

Quality and safety. Technicians follow service procedures and use proper lifts and tools. We test-ride only with insured riders, require helmets and gear, record every inspection and keep fire and hazardous materials rules.

Equipment. We will buy shop equipment such as lifts and diagnostics, showroom fixtures, a trailer and shop vehicle and dealer management software and computers.

Paperwork and money. Customers pay at sale by cash, check or financing arranged through a lender. Service customers pay at pickup. We pay suppliers on agreed terms and review slow-selling inventory each month. We keep the books in simple accounting software and set aside money for taxes and insurance every month.

Management & Organization

The people who will run Freedom Cycle Motorsports.

Rick Maddox, owner and general manager. He buys bikes, sells and supervises the shop. Dana Maddox, owner and office manager. She handles paperwork, customer service and the books. (Replace this paragraph with your own background.)

Team. One technician and one sales associate in Year 1, growing to three technicians and three sales staff.

Office. A parts and service advisor joins in Year 2.

Outside advisors. An accountant, an insurance broker, an attorney who reviews contracts and a free mentor from SCORE or the Small Business Development Center.

Staff pay in this plan is a full year per person: owner / General Manager $56,000; sales Associate $36,000; motorcycle Technician $48,000; parts and Service Advisor $36,000. Replace them with the pay you can offer where you live.

Milestones Narrative

Our goals and when we plan to reach them.
- Before opening (4 months ahead): register the LLC, obtain the dealer license, sign the lease, buy the first inventory and equipment and plan the grand opening.
- Year 1: about 2,054 sales and service jobs with Rick, a technician and a sales associate; $815,500 in sales and a loss of about $78,000.
- Year 2: about 3,078 and a parts and service advisor; $1,242,930 in sales and a loss of about $35,100.
- Year 3: about 4,102 and a second technician; $1,693,478 in sales and a profit of about $46,500.
- Year 4: about 5,126 and a third technician; $2,171,038 in sales and a profit of about $120,700.
- Year 5: about 6,150 and a larger showroom; $2,676,688 in sales and a profit of about $208,600.
Growth depends on winning and keeping customers, so treat the later years as goals, not promises.

What we check every week: bikes sold, inventory on hand, gross margin, service jobs, unpaid invoices and cash in the bank.

Funding Request

How much we need and how we will use it. Total we are raising: $375,000.

How we got that number. The Funding Need Calculator in this plan adds up three things:
- Startup costs of $261,000, listed item by item in the Startup Costs section: $35,000 for shop lifts and diagnostic equipment, $15,000 for showroom fixtures, $12,000 for trailer and shop vehicle, $8,000 for dealer management software and computers, $4,000 for LLC filing, dealer license and attorney review, $12,000 for garage liability, property and workers compensation insurance, first payment, $14,000 for security deposit and first month's rent, $8,000 for signs, branding and website, $8,000 for grand opening marketing, $120,000 for opening inventory of used and new bikes, $25,000 for opening parts and accessories inventory.
- The cash the business uses before it breaks even, about $42,600. Sales build over the first months, so the business pays rent, staff and inventory costs before the shop reaches its normal volume.
- A cash cushion of about $68,000: three months of Year 1 operating costs.
- Together, the cash used before break even and the cushion come to about $110,600, and the three pieces add up to about $371,600, rounded up to the nearest $500: $372,000.
We are raising $3,000 more than that, $375,000 in all, to cover a slower first season than planned. With this funding, the lowest year-end cash balance is about $160,700, at the end of Year 2.

Where the money comes from:
- Our own money: $80,000.
- SBA 7(a) loan: $295,000.

Kind of funding we are looking for. An SBA 7(a) loan from a lender that finances small businesses, backed by our savings and the equipment and inventory as collateral.

How we will pay it back. We expect a loss of about $78,000 in Year 1, a loss of about $35,100 in Year 2, a profit of about $46,500 in Year 3, a profit of about $120,700 in Year 4 and a profit of about $208,600 in Year 5. With this funding, the business has money in the bank at the end of every year of the plan. Our loan is the SBA 7(a) loan at 10.5% over 10 years, $3,981 a month. That payment is already included in our cash flow. We chose these as cautious planning rates; ask the lender for the real rates, which may be lower or higher.

What we are offering the lender: the equipment and a personal guarantee.

A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan:
- Phase 1: open with a smaller inventory and one technician, which lowers the startup costs and the loan.
- Phase 2: once sales are steady, expand inventory, add technicians and follow this plan.
To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match.

All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume and a personal financial statement (a list of what you own and what you owe; lenders usually provide a form).
- Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov).
- Your dealer license and proof of insurance.
- A sample bill of sale and inspection checklist.
- Your lease or letter of intent.
- Quotes for lifts, diagnostics and inventory.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- Used Motorcycle Sales: about $9,500 in Year 1, rising to $10,692; about $7,600 in direct costs, rising to $8,554; about 40 in Year 1, growing to 104.
- New Motorcycle Sales: about $14,500 in Year 1, rising to $16,320; about $12,500 in direct costs, rising to $14,069; about 14 in Year 1, growing to 46.
- Parts and Accessories: about $85 in Year 1, rising to $96; about $45 in direct costs, rising to $51; about 1,500 in Year 1, growing to 4,300.
- Service and Repair: about $210 in Year 1, rising to $236; about $60 in direct costs, rising to $68; about 500 in Year 1, growing to 1,700.
- A used motorcycle averages about $9,500, a new motorcycle about $14,500, a parts and accessory sale about $85 and a service job about $210.
- Prices rise about 3% a year.
- Equipment ($70,000 in Year 1) covers shop lifts and diagnostics, showroom fixtures, a trailer and shop vehicle and dealer management software, and later years ($8,000, $10,000, $10,000 and $12,000) replace and add equipment.
- Pay (a full year, per person): owner / General Manager $56,000; sales Associate $36,000; motorcycle Technician $48,000; parts and Service Advisor $36,000.
- Other yearly costs in Year 1: showroom and Shop Lease $60,000, floor Plan Interest and Insurance $24,000, marketing $24,000, software and Admin $12,000, utilities $12,000. These grow between 3% and 5% a year.
- Customers and payers pay about 15 days after service, so at the end of Year 1 about $32,620 is still owed to us. Income tax at 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs