Due to the flexibility of motorcycle (boda boda) transport, Kenyans opt to use motorcycles for short errands. This has led to an increase in the number of boda bodas in the country. Consequently, these motorbikes need constant servicing and repair, hence the need for spare parts in most parts of the country. Venturing into motorcycle spare parts business is a great idea to fill the market gap. This is what you need to start a motorcycle spare parts business in Kenya.
.Read also: How to start boda boda business.
Prepare a Motorcycle Spare Parts Business Plan
A business plan is important to guide you through your business's growth. Motorcycle spare parts business plan should contain an overview of startup capital, revenue projections, licenses, market segmentation, and motorcycle spare parts in demand. Additionally, it should include business location, suppliers, pricing, expected profits, operational plans and market competition.
Read more: How to write a business plan.
Identify a Gap in the Market
It is essential first to identify a market gap before launching motorcycle spare parts business. Proper market analysis will help you identify your potential customers and how best you can help satisfy their needs. It will also help you analyze the level of competition and identify strategies to employ to win the competition.
Know the Motorcycle Models
Once you have identified a market gap, you need to know the common motorcycle models. This is important because spare parts are tied to motorbike models and customers will come asking for spare parts specific to their motorcycle brands. To serve your customers well, you need to know various boda boda models. Although some spare parts can work across all models (such as rims, tires and side mirrors) others are specific to certain models. Examples of motorcycle models include;
- Boxer Bajaj
Identify Motorcycle Spare Parts Suppliers
Proper market research will help you identify genuine and reliable motorbike spare parts suppliers. Get suppliers selling spare parts at wholesale prices. To identifuy genuine suppliers, ask people already in the business. Examples of popular motorcycle spare parts dealers in Kenya are;
- Shineray Motorcycle Co Ltd Dunga Rd, Nairobi
- Maxali Kenya Lamu Road, Malindi
- Royal Motor Dealer Ngara, Desai Road, Nairobi
- MotoADV Kenya Modern Reliance Industries GoDown, Mombasa Road, Nairobi
- Lifan Kenya Bamburi Road, Industrial Area, Nairobi
Cost of Starting a Motorcycle Spare Parts Business in Kenya
The startup capital for a motorcycle spare parts business depends on business's size, the types of spare parts you want to sell, and business location. You can start a small motorbike spare parts business with Ksh 300,000 startup capital. You will need over Ksh 1 million to start a large business.
- Stock - Ksh 200,000
- Business branding - Ksh 10,000
- Rental costs - Ksh 15,000
- Business Licenses - Ksh 5,000
- Marketing - Ksh 5,000
Find a Suitable Business Location
It is best to set up your motorcycle spare parts business in a location where the boda boda business is popular. This can be either in the outskirts of major towns or in the heart of major towns. Additionally, your ideal business location should be near motorcycle garages and repair bases.
Once you have identified an excellent location, you need to rent business premises. It will depend on your business' size and location. A spacious room will cost around Ksh 10,000 every month.
Read also: How to start car repair business.
Preparing and Renovating your Business Premises
When you rent a business room, you will need to renovate to meet your needs. You need to install furniture like shelves and counters. It is best to brand your motorcycle spare parts shop. Tell people what your business is about through your branding. Branding and renovation may cost around Ksh 10,000.
Necessary Stock for a Motorcycle Spare Parts Business
With proper market analysis, you will know the popular motorbike models operating around your business premises. This will help you get the necessary stock for your business. It is important to stock various spare parts of different motorbike models. Go for spare parts that sell fast and are in demand. Go for quality and original spare parts. The basic motorcycle spare parts include:
- Brake Pads
- Side Mirrors
- Spark Plugs
- Return Springs
- Head Cases
- Side Mirror Holder
Get Business Licenses and Permits
The Kenyan business law requires that all businesses get licenses and permits before they can start operating. You will need a Single Business Permit which you can get from county government offices. A single business permit for a motorcycle spare parts business goes for Ksh 5,000.
Read also: How to start a mobile phone repair business.
Market your Motorcycle Spare Parts Business
When you meet the legal requirements, you can now launch your motorcycle spare parts business. You will need to drive sales and this is possible if people know about your business. You need to market your business.
You can use posters, brochures, pamphlets, and fliers. Social media marketing can help you reach many people. Use your convenient marketing strategy. Always remember that the best way to market a business is through exceptional customer service. Satisfied customers will refer other customers to your business.
Read also: How to start photography business in Kenya.
Is the Motorcycle Spare Parts Business Profitable?
Yes. If you are consistent with the types of spare parts you sell, a small shop with a steady flow of customers can give you between Ksh 5,000 and Ksh 7,000 per day. Consistency is essential in this business.