AMGT401-001_TP_Nabozny

Creek Motorsports LLC
Written by: Zachary Nabozny
Michele Harvey
Professor
AMGT401-001
December6, 2016

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708 Campus Drive
Big Rapids, MI 49307-2281
December 6, 2016
Mrs. Michele Harvey
Professor
Ferris State University
Automotive Center 103
708 Campus Drive
Big Rapids, MI 49307-2281
Dear Mrs. Harvey
Enclosed below is my term project paper about KTM Motorcycle Company. The information
covers some background of the company, what kind of motorcycles that KTM produces, and
how KTM’s fixed operations work. I gained some valuable information from interviewing
multiple people to get insight on KTM from a retailer’s viewpoint.
While reading you will find my business plan regarding starting up a KTM dealer. There is
valuable information I gathered throughout the semester to help extend my knowledge about
KTM for my term project. The work on this assignment is entirely my own, except otherwise
noted.
Sincerely,
Zachary Nabozny
Enclosure

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Table of Contents
Introduction.......................................................................................................................................4
Executive Summary ............................................................................................................................5
Business Description andVision...........................................................................................................6
Market/Location of Dealership............................................................................................................8
Site Preparation and Facility..............................................................................................................14
Definition of the Market ...................................................................................................................18
Organization and Management.........................................................................................................20
Forming Creek Motorsports, LLC........................................................................................................22
Personnel.........................................................................................................................................24
Product and Services.........................................................................................................................29
Marketing and Sales Strategy............................................................................................................34
Financial Management......................................................................................................................38
Financial Documents.........................................................................................................................39
References.......................................................................................................................................45
Appendix..........................................................................................................................................46

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Introduction
The following document is a business plan regarding the necessary steps to startup and
operate a KTM dealership. The location of the dealership will be located in Galesburg, the heart
of Southwest Michigan. Dirt bikes, street bikes, and adventure bikes will all be offered in our
inventory. OEM and aftermarket parts will be in stock for purchase and installation with
qualified and trained technicians to service the machines when needed. An energetic and
experienced sales teamhas been established to talk about what KTM has to offer to Southwest
Michigan.

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Executive Summary
The powersports industry experienced some difficult times during the Recession in
2008. Since the Recession, the powersports industry has made tremendous improvements in all
branches of products. The manufacturers have taken advantage of this prosperous time to
make engineering leaps in their products. The motorcycles have evolved more in the last eight
years than in the last thirty.
With all of the being said, the sport of racing motorcycles has become more popular
than ever. Thanks to social media and the mass volume of people that use it, the sport gets the
publicity that it has never received before. People today have more interactions with the sport,
as well as the athletes that participate in them. Due to the growing interest in the racing, more
people are starting to participate in the sport.
KTM is one of the most profitable company in the motorcycle industry. In the past three
years, KTM has doubled their revenue. They have a corner in the market with their enduro dirt
bike lineup compared to their competitors in Japan. Due to KTM’s success, they have bought
out other small dirt bike manufacturing companies that were struggling. "Ready to Race" is
KTM’s catch phrase that’s used daily and it means they do not just do business, but they
understand it and truly live it every day.
With KTM dealerships in Grand Rapids, Lansing, Jackson, and South Bend, there is a
large gap of KTM dealerships in the Southwest Michigan area. Customers in this area are
looking for quality bikes, service, parts, and experience all with a professional manor at
affordable prices. Customers want a dealer in the area they can visit to ask questions to gain
first-hand knowledge about KTM products and services. Customer’s will want to travel to our
state-of-the-art dealership and eventually the largest dealership in the area, just to see what
we have to offer.
I will show you how the greater Kalamazoo area is growing at a healthy rate. With the
grow of the powersports industry and the growth of the surrounding area, there is a need for a
KTM dealership in Southwest Michigan. We will be able to provide customers with quality
products and services they expect out of their dealership experience when visiting us. Our goal
is to fulfil those needs with KTM products customers desire.
The result from my in-depth research in the following documents express how Creek
Motorsports will rise to success and make just under $200,000 or 19% return on your
investment in the first year of operations. I am excited to show you my business plan and how
your investment into Creek Motorsports is something worth considering.

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Business Description and Vision
Mission Statement
Our mission at Creek Motorsports is to be a one stop shop for all of Southwest
Michigan’s KTM needs. We will provide customers of Southwest Michigan with the knowledge
and professionalismwhile representing KTM’s brand.
Company Vision
Through our relentless dedication to Southwest Michigan with a professional manor,
first-hand experience and knowledge about our products and services, Creek Motorsports will
become the largest KTM dealer in Michigan.
Values:
Creek Motorsports has set goals for each department of the dealership.
 Safety: To take customer’s safety into every situation.
 Satisfaction: To guarantee the highest customer satisfaction with every bike
sold.
 Respect: Keeping customers our number one priority.
Goals & Objectives
Our main goal at Creek Motorsports is to build a sustainable company that can
withstand any economic downturn we’re dealt with from the opening day of business.
 To make this possible we need to have a 95% customer satisfaction throughout
the entire dealership.
 Have over 50% of our revenue to be from repeat customers.
 To have 40% of our revenue from parts, 40% from service and 20% from sales.
Our second goal is to have every franchised off-road motorcycle manufacturer in our
dealership in five years.
 We need to show profitable years during any economic state.
 To sell above and beyond the minimum amount of units.
 We need to have the skills, knowledge, and capital to expand.
Our third goal is to become the largest KTM dealer in the state of Michigan in three
years.
 Hire a marketing company to handle advertisement for the first three years.
 Hire motivated and experienced sales people in the powersports industry.
 Have a marketing position to maintain our website, and social media pages for
the first three years.

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Company Principals
The owner of the dealership will be my job title. I will manage the fixed operations of
the dealership. I will own 49% of the dealership. This means being involved with hiring new
employees, making sure they’re fulfilling daily task and ultimately working towards achieving
our company goals. My job requires me to make sure the dealership is working at its best and
to figure out how I can make the company become more profitable.
My grandfather, Harold Hemel, will be an investor into the business. With having 51%
ownership of the company he will have the last say in any financial decision for the dealership.
He has the authority to buy and sell assets as he likes. He will only be on site when there are
issues that need to be resolved. My grandfather is there to work on the business, not in the
business.
My mother, Johanna Nabozny, will take care of all the finances with the dealership. She
will be able to see when the dealership is making money and when it’s not. She will send
reports to me to show the financial state of the business so I can take actions to resolve the
situation at hand. If either my grandfather or I pass away, or wants to sell out, she will take over
our share of the company unless otherwise noted. She will only have decision making authority
if my grandfather is not involved with the business anymore. She has the ability to sign for OEM
contracts, and bank agreements if I am not present.

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Market/Location of Dealership
Property #1 Harper Village,Battle Creek
The first property that I’m considering on using is a 1.6-acre lot. This property is zoned
for commercial use only. The history of the area has grown tremendously in the past 10 years
with other businesses starting up around it. This property is in a commercialized area of Battle
Creek off of M66 and I94 in Harper Village. The property offers easy access to get to with a
large population being directly in Battle Creek for potential customers. This property would
require little land construction to build my dealership on. The only downside the property will
not be visible from the highway, and will limit dealership growth. The listing price for the
property is $79,500.
(Image courtesy ofGoogleEarth)

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Property #2 HelmerRd.
The second location is still near I94 and is located in Battle Creek off of Helmer Road.
This location offers an easy access from the highway, as well as enough property to build my
dealership and expand if growth is present. The property is split into two zones, but together is
just under 18 acres. This property is covered with trees and would require a large amount of
tree removal to build my dealership. This property could have a small test course in the back lot
but would have to see if there is a noise ordinance with the property being within city limits.
The property is zoned for general commercial use. This side of town has grown in residential
use only and not commercial. With the property being listed at $512,720, it is the most
expensive one.

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Optimal Property#3 S. 35th
St.
The location that I decided on was at exit 85 off of Interstate 94 on 35th Street. This
property has more than enough land to build my dealership on at 18 acres. The property is
located in Galesburg Michigan, directly in between Kalamazoo and Battle Creek. With the
property being directly next to the highway, the building will be easily visible to passing traffic
making their commute to and from work. This property as it sits now is a bean field and won’t
require much renovating other than leveling of the land. The property is zoned as B3 or general
business use. The growth for this area has expand south of town near the exit at I94, where my
dealership will be located. The residential area next to the property is new as of 2010. There is
public water and sewer, as well as gas and electric being available at the street. The asking price
is at $499,000. (Article A)
Legal Description of the Property
SEC 25-2-10 NE1/4 NW1/4 SEC 25 THE EAST 750 FT OF THE FOLLOWINGDESC NW1/4 NE1/4 SEC
25 ALSO ALL THAT PORTION SE1/4 SEC 24 LYING S OF US HWY I-94 EXC E 660 FT ALSO EXC THE CASTLE
RIDGE CONDOMINIUMSUBDIVISION SPLITON 12/06/2007 INTO07-25-127-001; THRU 25-127-999
CASTLE CREEK CONDOS

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Local Public Services
There are a few local public service departments near Creek Motorsports. The nearest
fire department and police department to Creek Motorsports is located at 200 E Michigan Ave,
Galesburg, MI 49053.
Zoning Information
The property that is located at South 35th Street in Galesburg is zoned as B-3 or General
Business. This district is supposed to be used for automotive related business that create a large
amount of traffic and requires a large volume of space for parking purposes. With that being
said a property that is zoned for General Business should be located next to a major road way
to prevent any future issues.
History of Area
The Kalamazoo and Battle Creek area is one of the best places to start a new business.
With over 260,000 people in the Kalamazoo County area, there is all kinds of business to be
made. I started looking for property in Battle Creek that had easy access on and off the
expressway. I know that offroad enthusiasts have to travel a lot to enjoy their motorcycles so I
felt being near a major expressway would be the ideal location for a KTM dealership. Galesburg
has great potential to establish a KTM dealership due to Lansing being the nearest one in the
area. Being located in between Kalamazoo and Battle Creek, Creek Motorsports will be able to
pull markets from both locations. The area has grown in population since the 2008 recession.
The median income for both cities are a respectable $55,000 a year. This area isn’t as wealthy
as some area’s in Grand Rapids, but Creek Motorsports is also covering a larger area as well.
Demographics in Kalamazoo, MI
City Population 74,262
Number of Households 66,800
Average Household Size 2
Average Income $33,766
High School Education 92.7%
Bachelor’s Degree 34.4%
Kalamazoo & Battle Creek Population 126,609
Kalamazoo County Population 256,725

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Traffic Count
The Traffic count below is Kalamazoo Area Transportation Study’s figures. The numbers
represent the Annual Average Daily Traffic on each street. The red box represents the property
were my dealership will be built on. The second diagram is the traffic count for Interstate 94
from MDOT’s website.
(Images courtesy ofMichiganDOT)

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Competition
The nearest KTM dealership in Michigan is either Jackson, Lansing or South Bend for
people that live in the Kalamazoo and Battle Creek area. For the dedicated KTM owners, this is
a big issue due to the amount of travel time it takes to get quality parts and service. There’s
other Japanese dealerships in the Battle Creek and Kalamazoo, but that would mainly affect just
the sales department of my dealership. There are only a handful of independent repair facilities
within 50 miles of Creek Motorsports, making my dealership’s service department a must stop
for anyone in the Kalamazoo, Battle Creek area. My biggest competition in the parts
department will be over the internet. Offroad enthusiasts do the majority of their shopping
online to save themselves time and money. Motosport.com and Rocky Mountain ATV MC is the
two largest aftermarket warehouses in the United States, as well as my biggest competitors.
(Image courtesy ofKTM.com)

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Site Preparation and Facility
Once the property is bought and obtained, it will then be zoned appropriately through
Charter Township. Once the property is zoned, a soil erosion test must be put into place before
construction can start to ensure the ground can support the dealership. The site plan and fee of
$250 must be in place and paid in full before any construction is started in the vicinity of the
proposed dealership. This includes all of the utilities that’s needed for the dealership. This
means they need to be extended from the road to the proposed location. The application must
include any tree removal and moving of soil that will go on during the building process of the
dealership. Lastly, the permit for the county drain, sewer and water tap has to be filled out and
paid. (Article B)
Application and Fees
Site Erosion and
Sediment Control
Permit to
Connect County
Drain
Water Tap Fee Sewer Tap Fee Driveway Permit
$250 for first acre
$35 each
additional acre
$150
+ Review &
Inspection fees
$2,100
+Expenses
$2,500
+Expenses
$240 for first
driveway
$35 for additional
driveway
 Soil erosion, drain water, and driveway permits were received online through
Kalamazoo County.
Excavation of Site
The proposed location for the dealership consists of an 18-acre agricultural field. Things
that will need to be done through the excavating company includes the following.
o Removal of agricultural plants
o Complete leveling of the ground
o Removal of trees in front of highway
To ensure the ground is stable enough and has a strong foundation to support a
structure of the dealership, there will have to be a site boring test that must be done. This is an
essential element to my dealership due to the fact the proposed location is near the ridge in the
corner of the property.
Dealer Location Requirements (Article C)
The dealership requirements for KTM is a minimum of 2,000 square feet of service floor
or warehouse area and must include at least 2 service bays. The showroom floor or retail area
must have a minimum of 2,000 square feet. The parking lot must have ample space for

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customer parking and easy access. The building must be in a high traffic area with high visibility
of the building. The total square footage for a KTM dealership is 4,000 square feet.
Dealership Building Permit
Once the site has been approved by the township and county, a building permit must be
approved by the County of Kalamazoo. The fee for the building permit for a commercial
building that is less than $1.5 million is $1,500 plus an additional $600 for the building
blueprints to be reviewed.
Internal Building Floor Plan and Traffic Flow
The internal facility will look something similar to this. The showroom floor is the first
thing that a customer experience as they walk into the dealership. Whether they’re looking to
buy a new bike or not, the new bike will spark any thought about a future purchase. The
entrance and exit is located in one spot so customers have to go through the showroom floor
whenever they walk into our dealership. The service area and parts desk is located directly in
the middle of the dealership. By putting the offices right next to the service floor, technicians
will be able to save time with any questions that may arise while servicing a bike. The lobby is
located near the front to keep waiting customers away from any potential clients that are
Foot Traffic
Future Expansion

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looking a purchasing a new bike. This won’t confuse salesmen that are working the showroom
floor from thinking a window shopper is someone that’s actually looking to buy a new bike
(Article C).
Site Floor Plan and Traffic Flow
This image shows the representation of the traffic flow for customers and for inventory
drop off. The orange arrows are the customers. They will have the decision to pull into either
driveway. Since the displays will mainly be inside of the dealership there will be no reason for a
customer to go behind the dealership. The green arrows represent the semi-trucks unloading
inventory to our dealership. With the truck moving in a counter clockwise fashion, the driver
doesn’t have to waste time walking around the truck to go inside to get a signature or help
unload the inventory. This way it saves time for the truck drivers and employees in the
dealership. Also with the large room behind the dealership, more than one semi-truck can be
on the property instead of in the street if the situation every arises. On the left hand side of the
dealership there is a fenced in area where we keep all of the bike at when they’re still in
shipping crates. The entrances and exits are located for easy access for both customers and
semi-trucks.
CUSTOMER TRAFFIC
SEMI TRAFFIC
FUTURE EXPANSION

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Cost of Construction
Showroom Service Total
$775,000 $525,000 $1,300,000
$210 per square foot $210 per square foot $210 per square foot
3,500 square feet 2,500 square feet 6,000 square feet
Future Expansion
If the dealership grows enough to where the building and property needs to expand, the
possibilities exists. In the diagrams above, you can see the blue arrows representing future
expansion of the dealership.
o The property that my dealership is on is an 18-acre field. This means that there is
plenty of room for future expansion.
o Building wise the structure is built in a way to have the dealership grow
sideways, away from the service floor, in case the service floor, showroom floor,
or parts department isn’t large enough.
o If the service floor has the potential to expand it will be built larger off the back
of the building.

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Definition of the Market
Motorcycle Industry Outlook
Today, more consumers have disposable income to spend on their hobbies. During the
recession the motorcycle industry was experiencing difficult times much worse than other
branch of the automotive industries. The industry has recovered since the hard economic times
in 2008 and is growing at a steady rate. KTM claims they will have a healthy amount of growth
going into the 2017 year. KTM is expecting 7% of growth in revenue to be exact. (Article D)
Factors Affecting the future of the Motorcycle Industry
 The number one factor regarding the motorcycle industry is disposable income. If
consumers don’t have extra money to spend on their hobbies, the industry will suffer.
 Another factor with the motorcycle industry is consumers’ confidence in the economy. If
consumers are scared about the future, they’re most likely going to hold onto their
disposable income, meaning less sales revenue.
 Another factor regarding revenue sales is the amount of innovation with new models
coming out. Whether it’s fuel injection, launch control, or air forks, it will drive potential
consumers to purchase a new bike because of their new features they have to offer over
older models.
Critical Market Needs for Southwest Michigan
 Close proximity for KTM bike, parts, and services. The nearest KTM dealership in
southwest Michigan is Grand Rapids, Lansing, Jackson and South Bend. There is no
centralized location in southwest Michigan to offer KTM products and services.
o Customers need less than an hour drive to a KTM dealership.
o Customer need close and fast service for bikes.
o Customers need to be able to view and purchase products online.
 Need reliable service for technical electronically fuel injected four stroke engines. The
bikes are getting more electronically dependent with their sensors and computers.
 Michigan offers some of the most unique kind of off-road racing and customers need
bikes that are competitive and reliable in the area.
Figure 1

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Target Market Characteristics and Profile
The location of my dealership covers a large portion of Southwest Michigan. The county
that my dealership is located in is Kalamazoo County. According to the United States Census
Bureau the median household income for the neighboring counties are listed below.
Kalamazoo County $52,164
Calhoun County $44,520
Van Buran County $46,536
St. Joseph County $44,145
With two largely populated cities, there is a large amount of people that live in the
urban area of the counties. The last two counties have almost half of the population due to the
fact they are mostly rural areas.
Competitive Landscape
The market is a competitive area that is shared with Japanese Manufactures. For the
off-road portion of the dealership they have to compete with Kawasaki, Honda, Suzuki, and
Yamaha. These companies have a rich history in the United States and usually are cheaper than
the comparable KTM models. All manufacturers have different riding characteristics and is
completely a personal preference for the customer. Japanese manufactures offer rebates and
rider support for those who are competitive in racing. For the road motorcycles, all the
Japanese manufactures listed above as well as Victory, and Harley Davidson are the two other
competitors.
Expected Market Share
Midway through 2016 KTM’s market share has grown to 6.5 percent from the beginning
of the new year. Market shares improvements started in 2009 and has continued ever since.
My dealership’s goal is to focus in the off-road market and push more marketing towards it.
With that being said KTM is more competitive against four companies compared to six in the
street motorcycle market. Creeks Motorsport will expect to take over 10% of the market in
Southwest Michigan. We will target Yamaha and Honda customers with the majority of our
focus being on our dirt bike lineup.
Dealership Competitive Advantages
 To showcase and offer all KTM enduro bikes.
 Sponsor local races and have vending truck to show our passion with the sport.
 Offer rider support to qualified riders.
 Have KTM certified technicians on staff.
 Offer a lobby room with motocross games to keep the atmosphere competitive.
 Have online scheduling for drop off and pickup for service.
 Offer ride days for potential customers to demo new bikes.
 Offer every bike KTM makes to offer a diverse selection of bikes to choose from.

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Organization and Management
The organization of management roles in the dealership is crucial in making sure the
business is successful. It is important for both the customers and the employees to understand
who they need to talk to in when there are problems that arise on a daily basis. Without the
business have an organized management structure, the dealership would be chaotic and issues
would happen more often than they should. The need to having proper managers in place is the
key to making the dealership be successful as well as profitable.
Management Structure
Owner/Operator: The Owner/Operator is the one that makes all final decisions for the best
interests of the investors. The Owner/Operator also will be the responsible to manage the team
of branch managers on a daily basis. The Service Manager, Parts Manager, Sales Manager, and
Business Manager will report to the Owner/Operator directly.
 Service Manager: Oversees the two technicians that are working in the service floor.
The two technicians will report to the Service Manager.
 Parts Manger: Manages the parts department and one other parts specialist. The parts
specialist will report to the Parts Manager.
 Sales Manager: Oversees the new and used inventory sales. The two sale associates
report to the Sales Manager for any needs.
 Business Manager: If there are any financial questions from the parts, sales, or service
department, they will report directly to the Business Manager.
Manager Bio and Qualifications
Service Manager: The service manager needs to have three or more years in an automotive
service manager position. The position not limited to experience with automotive dealerships
only. They must have a strong background of motorcycle repairs as well as communication and
customer service skills. They must have the ability to schedule appointments accordingly and
organize service floor to operate smoothly.
Parts Manager: The parts manager must have a strong knowledge of motorcycle repairs. They
must have great customer service skills as well as the ability to multitask. They need to have a
minimum of one-year experience in a similar position.
Sales Manager: The sales manager must have at least four years in motorcycle sales as well as
two years in a management position. Have experience with financing, excellent verbal and
written communication skills, proficient with Microsoft Office. They must be outgoing and
extremely self-motivated to succeed.
Business Manager: The business manager will deal with the finances and hiring processes for
the dealership. They must have a clean record and have over five years in commercial financial

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experience. This position deals with the day to day expenses of the business and needs to be a
trusted individual. They need to have excellent computer skills with Microsoft Office as well as
communication skills.
Dealership Organization Chart
Creek Motorsports Business Structure
Creek Motorsports will operate as a Limited Liability Company. This gives the flexibility
of a general partnership or sole proprietorship while being protected by the law. The major
benefit of being a LLC is owner’s personal assets are protected from creditors. Being a LLC the
owners are unable to be taxed twice on income generated from the dealership. This means any
income made or lost by the company is passed on to the owner’s income tax return. There are
less annual state formality requirements than an S corporation or C corporation.
Creek Motorsports Financial Members
 One Owner/Operator
 One Financial Investor
 One Financial Institution

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Forming Creek Motorsports, LLC. (Article E)
Applying for Business Name: The first step in forming a Limited Liability Company is to come up
with a name for the dealership and then file it with the State of Michigan. The business name is
automatically registered with the state when you register your dealership.
File the Articles of Organization: This document makes your dealership a legitimate business
entity. This will include the dealership name, address, and the names of the dealership’s
members. There may be an association filing fee.
Create an Operating Agreement: Operating agreements are highly recommended for
multimember LLC’s. This way it provides rules and regulations for smoother operation. The
operating agreement includes the percent of interests, distribution of profits and losses,
member’s rights and responsibilities, as well as other previsions.
Taxes: The federal government does not view an LLC as a separate tax entity, which means the
business itself is not taxed. All of the federal income taxes are passed onto the LLC’s members
and are paid through the member’s individual income taxes.
Licenses and Permits
Tax Registration: Employer Identification Number or Employer Tax ID. Before hiring an
employee, the dealership must obtain an Employer Tax ID. This is necessary for reporting taxes
and other documents to the IRS as well as information about the employees to state agencies.
Michigan’s Tax Registration: Any business operating in the state if Michigan is required to
register to withhold employees’ income tax, sales tax, and unemployment tax.
Business Licenses
Original Dealer Application: This application must be filled out in full to the Secretary of State
as part of the Dealership start up. This application requires business name, location, telephone,
and business type.
Finger Printing: Each person that is part owner of the dealership must have their fingerprints
copied in person by appointment.
Sales Tax Number: Most Michigan businesses are required to have a sales tax number
Class A Zoning: A dealership that selling new vehicles under a contract or franchise agreement
is categorized as a Class A dealer.

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Service Repair Facility: All new and used car dealership must register their repair facility under
a dealer license application.
Uniform Vehicle Dealer Surety Bond: This bond must be completed or a dealer license cannot
be established. This application requires signatures from the offering attorney, a witness for the
attorney, a licensed resident insurance agent, dealer principal, and a witness for the principal.
Local Permits: Kalamazoo and Charter Township both have permits that deal with building,
zoning, signage, and setback requirements for the dealership.
Employee Requirements: A business is responsible for withholding and submitting taxes to the
state and federal government.
 Withholding Income Taxes
 Federal Income Taxes W-4
 Federal Wage and Tax W-2
 Employee Eligibility Verification I-9
Required Insurance: A business is required to have insurance on the employee.
 Unemployment Insurance
 Workers Compensation Insurance
(Information courtesy ofMichigan.gov andSBA.gov)

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Personnel
Owner/Operator: The owner/operatorwillbe onsightof the dealership.Hisdutiesare to
oversee the entire operationsof the dealershipandmakingfinal decisionsforthe bestinterestsof the
financial investors.Hisobjectiveistomanage bywalkingaroundbetweenthe three departmentsinthe
dealership.Understandingthe needsbetweeneachdepartmentandmakingthe bestdecisionforthe
dealershipasawhole isthe majordutyfor thisposition.
Owner/OperatorTasks
 Organize andleadweeklyandmonthlymeetingsforemployeesinall departmentsof
the dealership.
 Oversee generaloperationsof the entire dealership.
 Make all final decisionsforall departmentsforthe bestinterestsforthe shareholdersin
the dealerships.
 The ownerwill deal directlywithKTMabout anyissuesorbusinessregardstowiththe
dealership.
 Be the voice forthe dealershipwithoutside relationssuchasbanks,financial lenders,
cityand townshipofficials,lawyersaswell asotherlocal businessesthatthe dealership
dealswith.
 Helpinginthe HumanResourcesdepartmentwiththe hiringandterminationprocessof
employees.
BusinessManager: The businessmanagerwill stayinthe office formajorityof the time unless
there isan issue inone of the departments.The managerwilldeal withthe financialsof the dealership.
All incomingandoutgoingfinanceswillgothroughthe businessmanager.The businessmanager will
alsodeal withthe hiringprocessfornew employees.The businessmanagerwillhelpthe owneroperator
inregards withmeetingKTM’sfranchise businessconcerns.Theywill attendall meetingsandbringthe
majorityof the financial issues,concerns, orachievements.
BusinessManagerTasks
 Aidinthe hiringprocessforall departments.
 AssistownerwithmeetingKTMfranchise agreementexpectations.
 Deal withall of the financesof the dealership.
 Manage whenproblemsarrive orwhenownerisnotpresentinthe dealership.
SalesManager: The salesmanagerhasmany responsibilitiesthattheyhave todeal with
because of the size of the startup dealershipandnumbersof unitsthatare soldona yearlybasis.The
salesmanageroverseesbothnewandusedunitsthatare inthe dealership’sinventory.Theyare also
responsible forthe warranty,aftersalesandfinancingof anew unitbeingsold.Withsellingjustover100
unitsa year thistaskis veryachievable.
SalesManagerTasks
 Reasonable forbothnew andusedbike inventoryandsales.
 Assistinanysalesneedsorquestionswhenothersalesassociatesare busy.

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 Responsible forwarrantyandaftermarketpartsupsell.
 Have to deal withthe F&I portionof a new bike sale.
Parts Manager: The parts mangersmainobjective inthe partsdepartmentistomeetsales
requirements.Theyare responsible of everytransactionthatgoesthroughtheirdepartmentandreports
an issuestothe businessmanagerif anyarise.Theywill manage the partsassociate inmakingfinal
decisionsonatransactionor assistingacustomer.The parts managerhas to have a great relationship
withthe salesmanagerto make sure any upsalesthat are done are carriedoverintothe parts
department.Theywillhave tohave greatcommunication withthe servicedepartmenttoensure proper
parts are beingorderedandinstalledonthe bikesbeingworkedoninthe service department.Theywill
alsobe responsible withdealingwiththe relationshipsof independentrepairshopsinthe areato sell
OEM parts to them.
Parts Manager Tasks
 Theyare responsible forreportingdailyinventorycheckatthe endof the day.
 Performstatistical reportstoshow whatisand isn’tselling.
 Theyare responsible dealingwiththe relationshipsof independentrepairshopsinthe
area to sell OEMparts.
Service Manager: The service managerwill reporttothe ownerif anyissuesarise intheir
department.The service managerwill be responsibleforall the operationsinthe service department.
Thisincludesmakingsure the departmentisbeingprofitable,achievingservicesinatimelymanager,
deal withcustomersina professional manor,andmake sure the service departmentispresentableto
anyone thatwalksthroughit.Theywill be responsible fordealingwiththe humanresourcesof the
service department.Theyneedtohave agood relationshipwiththe partsmanagertomaintaina
smoothoperationinthe service department.
Service ManagerTasks
 Theyare responsible fordealingwithcustomersastheywalkinthroughthe door.
 Communicate withthe techniciansaboutrepairsthatneedtobe done.
 Theyneedtocommunicate withthe customeraboutthe state of theirbike.
 Assistinanyservice workthat techniciansneed.
 Performweeklyreportstoreview technician’sperformance.
Department Payment Plans
Owner/Operator: The ownerof the businesswillreceive an$80,000 salarywithnocommission.
The owners’salarywill reflectdirectlyonhow well the dealershipreturnoninvestmentwasthatyear.
Each year itwell be effectedbythe dealership’ssuccessandissubmittochange on a yearlybasis.
BusinessManager: The businessmanagerwill receivea$50,000 salary withtwoweeks’
vacation,whichincludesholidays.Theywill have ayearlyreportontheirperformance toadjust their
salaryaccordingly.If the dealershipdoesbetterthanexpectedtheywill receiveabonuscheckforthe
Christmas.

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SalesManager: The salesmanagerpositionisona salarybasedwitha commissionatthe endof
each month.The salesmanager’ssalarywill be $40,000 a year withthe commissionwill have acap of at
$13,333.33 or 15% of theirbase salary.The commissionwill be afterall sellingexpenses,fixedexpenses,
and taxesare takenout of the profitonthe sale.
SalesAssociates: The salesassociateswill be onasalaryand commissionbasedwage.Their
startingsalarywill be $20,000 a year witha 13% or $20,085 limit.If stockouts existinanygivenyear
they will receiveabonuscheckfor the holidays.Theywillalsoreceive twoweeksof vacationsandthis
includesholiday.
Parts Manager: The parts managerwill alsobe a salarypositionwithabonuswhensales
objectivesare metatthe endof eachmonth.Theirbase salary will startat $20,000 witha 6%
commissionongrossprofitonparts sales.Theirsalary will be adjustedaccordingly onyearly
performance review.The bonuswillconsistof extravacationdaysif expectationsare exceededinthe
parts department.
Parts Assistant:The parts assistantwill be onastraighthourlypaidwage. Theywill be paid$15
an hour withnocommissionincentives.Theywill receiveabonuscheckfor Christmasif the parts
departmentexceedprojectpartssalesforthatgivenyear.
Service Manager: The service managerwill be onasalarypayroll withthe possibilityof abonus
at the endof the year.This positionwillbe paidarespectable $40,000 that will be adjustedonayearly
basisaftera performance reportisdone to determineproductivitywiththe individual aswell asthe
service department.The bonuswill be extravacationdaysandwill be determinedbasedon
expectationsforthe servicedepartmentmade bythe owner.
Technicians:Both technicianswillbe ona combinedhourlyandflatrate plan.We will continue
thispay planuntil otherwisenoted.Theyhourlypaywill be $10 an hour withnocommissioncap.They
will receiveone weekpaidvacationif theyexceedthe expectedamountof service soldinayear.
Employee Policies
Office Department
 Personal appearance andhygienemustbe upkept.This includesnotattoosorpiercings
otherthan females’ears. Businessprofessional isrequiredatall timesotherthan
Businesscasual onFridayandSaturday.
 There will onlybe one hourof free roaminginternetusage duringlunchbreakonly.The
telephoneisnotallowedforpersonalusage.Cellphonesmaybe usedduringworkbutif
it hasan effectonemployee’sproductivityitwill be suspended.
 Smokingbreaksare onlyallowed outside inthe backof the building.
 The onlytime an employeecango intoanotherdepartmentistodiscussbusinesstopics
or issuesthatneedtobe resolved.

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SalesDepartment
 Personal appearance andhygienemustbe upkept inthe salesdepartmentandneedto
meetwiththe industry’sexpectations.Salespersonnel have towearthe Creek
Motorsportspolothat is provided.
 Salespersonnel mayacceptgiftsfromclientsaslongastheydo notexceed$100.
 Employeesinthe salesdepartmentare expectedtoworkwithusual weeklyhoursas
well asbefore andaftereverymajorUS holiday,unlesstheymake priorarrangements.
 The salesdepartmentisresponsible formakingsure the showroomfloorisorganized to
meetthe expectationsof the franchise agreement.Theyare alsoresponsible forplacing
bikesoutside andbringingthembackinatthe beginningandendof eachday.
Parts Department
 The parts departmentisallowedtohave visible tattoosontheirarmsonly.Anyother
tattoo needstobe coveredbyCreekMotorsportsclothingthatisprovidedatthe day of
hiring.
 The use of the parts vehicle canonly be grantedbythe partsmanager.
 All companypropertymustbe returnedtothe parts managerif a parts assistisfired.
Service Department
 All techniciansmusthave avaliddriver’slicense withlessthan2pointsas well asan
enhancedmotorcycle license fortestdrivingbikesafterworkhasbeenperformed.
 Techniciansare onlyallowedtoworkontheirownequipmentonMonday’swhile off
the clock.
 The use of cellphonesisnotpermittedinthe workarea.If someone needstobe
reachedinthe service department,theyneedtocall the service manager’sline tospeak
withsomeone.
 Techniciansmustweara cleanCreeksMotorsportspolo thatis providedtothemwhen
hiredeveryday.
Department Performance Objectives
SalesDepartment
 Exceeda minimumnumberof three new dirtbikes soldperweekandone usedunitsold
permonth.
 Exceeda minimumnumberof twonew streetbikessoldperweekandone usedunit
soldpermonth.
 Each salesassociate mustattendMichiganState’ssalestrainingwithinthe firstmonth
of beingemployed.
 The customersatisfactionratingshouldbe nolessthan90% at anytime.
 Holda demodayat local tracks at leasttwice ayear.
 Participate inKTMsalespromotionsandevents.

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Parts Department
 Must sell at least$75,000 inOEM or aftermarketpartsinyear one.
 Have a OEM toAftermarketpartsratioof 1:4.
 Continuouslyattempttoincrease aB2B customerbase withthe parts departmentand
otherindependentrepairshops.
 Performdailypartcountto ensure nostock out issueswithpartsthatare sellingrapidly.
 Planparts deliveryfirstthinginthe morningand ina logical sequence forcustomer
satisfaction.
 Monitorcompetitorssellingpricesforaftermarketpricing.Thisincludeslocal
dealerships,independentrepairshops,andinternetwarehouses.
 Attendlocal racesfor ridersthatneedtrack side parts.
Service Department
 All techniciansneedtobe KTMOrange certifiedtoperformworkonany equipment
comingintothe service department.
 All comebacks come outof technicians’paycheck,andneedstostaybelow a2% ratio.
 Technicianshave toattemptto upsell oneveryservice beingperformed.
 There needstobe at least1 upsell oneverythirdbike thatcomesintothe service
department.
 Sell anaverage of 200 hoursof service perweek.
 Quickand professionalcommunicationwiththe customerisamust whendiscussing
price,andestimatedtime of repairbeingfinished.
 Attendlocal racesfor ridersthatneedtrack side service forcustomersatisfaction.

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Product and Services
NewVehicle Products:CreekMotorsportswill offervirtuallyeverythingthatKTMhas to offer
fromthe manufacturingplant.We wanttoutilize the openopportunitiesthatmostKTMdealershipsin
the area missed.CreekMotorsports willofferbothstreet,enduro andmotocrossbikes.Ourgoal isto
have at leastone of everymodel onourshowroomfloorforpotential customerstohave a visual
experience of the productbefore purchasing.
Street Bikes
Supersport
 RC 125 – The entrylevel forreallyambitiousracers.The state-of-the-art,water-cooled
DOHC engine delivers11 kW (15 hp),12 Nm of torque and total race performance for
everydayuse.Everyride turnsintopreparationforthe nextrace withthe new street-
legal KTMRC 125.
 RC 390 – A sports bike initspurestform.Reducedtothe essentials.Agile,fast,suitable
for A2 drivinglicenseandextremelysporty.Whetheryouare on countryroads or the
racetrack, the Moto3 genesare perceptible ineverymaneuverandconveypure race
feeling.The handling–simplyspectacular.The performance –incredible.The power–
awesome.
Naked
 1290 Super Duke R – Inthe formof the KTM1290 SUPER DUKE R, KTM has crownedits
legendaryNakedBike model range withamachine thatredefinesthe term
'Streetfighter'.One lookatitsimpressiveperformance dataandaggressive designis
enoughtosee that the 1290 R isthe most extreme SuperDuke ever.Thanksto
unbeatable performance inconjunctionwiththe versatilityprovidedbythe adjustable
ridingmodes andPowerPartssetups.
 690 Duke – Two decadesago,the original Duke wasnothingshortof revolutionary.
KTM’s firstsingle-cylinderstreetbike grew intoacultclassic,addingextremefuntoa
raw and radical concept.In2016, the fullyrevised690DUKE staysfaithful toits
ancestor’sways,butadds future-proofrefinements:impressive smoothness,
sophisticatedelectronics,improvedergonomicsandagood oldpowerboostoverlast
year’smodel.Thisfirmlycementsthe world’sstrongestsingle-cylinderproduction
motorcycle at the cuttingedge of engineering.Speakingof which:carvingcornershas
neverbeenmore fun,thankstoitsrevisedforkoffset.Longlivethe Duke!

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 390 Duke – The 390 Duke breatheslife intovaluesthathave made motorcyclingso
amazingfor decades.Itcombinesmaximumridingpleasurewithoptimumuservalue
and issuperioreverywhere where reallynimblehandlingcounts.Lightasa feather,
powerful andpackedwithstate-of-the-arttechnology,itguaranteesundreamedof
dynamicfun,whetheryou're inthe urbanjungle ora forestof bends.390 Duke–
nowhere youwill findmore motorcycle foryourmoney.
Travel
 1090 Adventure R – The KTM1090 ADVENTURE R staresdownanythinginitspath.
Bespoke WPsuspension,offroadwheelsandatoughyet fuel-efficientengine are ready
to rumble.Decadesof rallyraidvictoriesroarwithin.Asshrewdasitischiseled,thisbike
usesthe same state-of-the-arttechnologyasthe KTM1290 ADVENTURER and even
thoughitsengine capacityissmaller,it’sstillbigonpower:125 hp (92 kW).That’s 23
more than FabrizioMeoni’sDakarwinning950. The worldisyours - Devourit.
 1290 Adventure R – True adventure takesguts,soKTM’s rallyexpertsbroughtoutthe
bigguns andpacked1.301cc, 140 Nmof torque and 160 hp intothe world’smost
advancedTravel Endurochassis.Thismakesfora mile-munchingomnivore,readyto
carve itsname intoany terrain – the tougher,the better.Itis our mostextreme
ADVENTUREever,full stop.Full throttle.
 1290 Super Adventure T – The KTM 1290 SUPER ADVENTURE T isready to travel tothe
top of the foodchain,matchingits needforspeedwithyourlustforlife.Thisextremely
well-equipped1,301cc powerhouse goesfromcruisingwithapassengertoracinga local
at the flickof yourwrist.Andwithoutbreakingasweat,thankstoKTM’s advanced
electronicsthathelpyououtrunandoutsmarttrickyconditions.Ithasneverbeenmore
comfortable toleave yourcomfortzone.Sogo,chase the horizon.Youmightevencatch
it.
Enduro Bikes
 500 EXC – The 500 EXC isthe strongestdual sportbike inthe world,althoughthat
doesn’tmeanit’shardto control.Thismotorcycle isas leanandcivilizedasa
thoroughbredracehorse.Butletitrip,andits all-new 4-strokeSOHCengine blaststhe
redesignedchassisacrossanyterrainyouchoose.Aheadof the competition.Nosweat,
justglory.
 450 XC-F– If maximumpowerisrequired,there isnootherwaybut the 450 XC-F.The
compact SOHC (single overheadcamshaft) engine thatdeliversexplosivebut
controllable powershares95% of the parts withthe bike of RyanDungeywinningthe
AMA Supercrosschampionship2015.
 350 EXC-F– You don’tjustbecome the bestseller.Youhave toearnit.With mud,sweat
and gears.The power-to-weightratioof itscompact DOHC engine isspotonforany
terrainand situation.Itwill answerthe call of anytrail withprecise handlingandeven
toughersuspension.Nomatterhow mud-cakedyourface is,thatsmile will shine
through.Whenyoufindthe endof the trail,youwill know whatwe’re talkingabout.
 350 XC-F– Withthe arrival of the new generation350 XC-Fthe successstory can
continue.The nimble butpowerful bike comprisesof almostasmuchpoweras a 450,
but withthe agilityof a250 – so the basicideaiseasily summarized,andhasbeena
conceptwithsuccessfromthe start.

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 300 XC – With enoughpowertoexcel onall sortsof tracks andterrain,combinedwith
an extremelylightweightchassis,the 300 XC has one of the bestpower-to-weightratios
inits class.The unrivalledpower-to-weightratioof the lightweight2-stroke engine
makesita true contenderagainstthe more complex 4-strokes.ForMY 2017 the 300 XC
featuresdetail improvementsandnew colorsandgraphics,butbasicallyretainsthe
same chassisand engine specificationasMY 2016.
 300 XC-W – 4-stroke rivals,beware:thistool mightjustbe the sharpestinthe shed.It’s
hard to finda betterpower-to-weightratiointhe worldof Enduro.If you wanttorque
by the bucketloads,a top-endtodie forand a lightweightchassisreadytorise toany
occasion,give this300 cc lightningboltago.
 250 EXC-F– Fill anagile,state-of-the-artchassiswithanengine deliveringclass-leading
powerandtorque.Thendressit withtopclass components,ensuringthat the new4-
stroke maintainsitsedge overthe competition.The resultisaREADY TO RACEdual
sport suitable foramateurexplorers,while still satisfyingthe pros.Eatthat, adversaries.
 250 XC-F– Alreadyknownforitsstrongperformance,the new generation250XC-F
presentsitselfwithanewlydeveloped,strongerengine builtintoanall-new chassis.The
performance combinationof apowerful andmuchtorqueierengine inalightweightand
agile chassisissure to make the 250 XC-Fthe star of the show forthe future.
 250 XC-W – Whenthe smoke clears,you’ll be the lastriderstanding.The new KTM250
XC-Wis one of the bestpound-for-poundfightersinthe worldof Enduro,pummelingit’s
more complex 4-Stroke rivals.Allmuscle,nofat:this2-stroke machine isas leanasit is
powerful.
 250 XC – With enoughpowertoexcel onall sortsof tracks andterrain,combinedwith
an extremelylightweightchassis,the 250 XC has one of the bestpower-to-weightratios
inits class.The unrivalledperformance of the lightweight2-stroke engine makesita
true contenderagainstthe more complex 4-strokes.
 150 XC-W – ‘XC’meanscross-country.‘W’representsitswide-ratiotransmission.‘KTM’
standsfor winning.Thismodel isarace-readybike builtforclosedcourse enduro racing.
Withthe agilityof a125 and enoughmuscle totake the fightto the 250 cc 4-Strokes,
thisbike puncheswell aboveitsweight.That’swhywhenthe goinggetstough,the
toughget an XC-W.
Motocross Bikes
 450 SX-F– If goldis whatyou’re after,a 450 SX-Fiswhatyou get.Thanksto itscompact
engine deliveringexplosive butcontrollable power,it’sthe weaponof choice forthe Red
Bull KTMFactory Team andthe champion,RyanDungey.ThisREADYTO RACE bike rules
the AMA SupercrossChampionship.Itssecret?Precisehandlingandarm-stretching
grunt.Winners - line uphere.
 350 SX-F– Since TonyCairoli firsttooka 350 SX-Fto the topof the MX1 World
Championshipin2010, the RedBull KTM athlete hasdominatedthe classaboardthis
nimble butpowerfulbike withfive consecutive WorldChampionshiptitles.Nosurprises
here,withthe combinationof 450-classmuscle andthe agilityof a 250. Who saidyou
can’t have everything?
 250 SX-F– The 250 SX-Fhas beenontopof the MX2 WorldChampionshipformany
yearsnowand addeda secondAMA SupercrossLitesChampionshiptoitscrowded

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trophycabinet.Butthat’s nosurprise.The successful combinationof apowerful and
torqueyengine inalightweightandagile chassisisboundtoplace the 250 SX-Fonto
podiumafterpodium.
 250 SX – The newKTM 250 SX withitsall-new engine hasone of the bestpower-to-
weightratiosinthe worldof dirt,formingthe ultimate weaponagainstmore complex 4-
stroke rivals.Withthe gruntto devourall sortsof tracks and terrains,anda lightweight
chassiskeentoskimthe surface,thismasterpiece of KTM’sR&D andMotorsport
departmentsisborntoleadthe nextpack of winnersthatpreferpremix.
 150 SX – Withthe agilityof a 125 andenoughmuscle totake the fighttothe 250cc 4-
strokes,thisbike puncheswell above itsweight.Itssnarlingenginesetsbenchmarksin
termsof powerandtorque,rocketingitsstate-of-the-artchassismilesaheadof the
competition.The topstepof the podiumdoeshave the unmistakable scentof 2-stroke
premix exhaust.
 85 SX – The ridersof the juniorclassare nolongerbeginners.Theseare future
championsfightingforvictory,nomatterif itisthe a AMA AmateurNational Title or
JuniorMotocrossWorld Championship.Inthisscene,the 85 SX is consideredthe
weaponof choice.Withthe mostpowerful engineinthe fieldanda superlightweight,
stable chassis,the onlyreal competitioncomesfromothersracingonthe 85 SX.
 65 SX – The 65 SXis a fully-fledgedpiece of racingkitsportsequipmentforyoungpilots
agedaround 8 to 12 yearswitha bodyheightof upto 1.60m. Thisyear’stop
ministudentfeaturesrevolutionaryWPAER35 frontforks,cool graphicsanda lotof
detailedimprovementsthatsettingthe standardintermsof power,riding dynamics,
equipmentandcraftsmanship.Like itslargercounterparts,the 65SX istrulyREADY TO
RACE forits youngcompetitors.
 50 SX and MINI– The 50 SXis a true READY TO RACE KTMfor youngMX riders.It isa
genuine dirtbike that,like itsbiggersiblings,isproducedwithtop-qualitycomponents.
Thismakesthe 50 SX the firstchoice as a steppingstone intothe worldof MXor for the
firstracing steponthe ladder.Withthe youngsterinmindthispackage hasan engine
that deliverssteady,controllable power,incorporatinganautomaticclutchthat allows
the riderto concentrate onthe track, notshifting.Thisyear’smodel features
revolutionaryWPAER35 frontforks,fullyadjustable rearsuspension,anew exhaust,
ultra-cool graphicsanda lot of detail improvementsthatmake goingfastfun.
(Images and Bike Description courtesyofKTM.com)
Used Vehicle Inventory
CreeksMotorsportswill have ausedvehicle inventory.Usedbikeswillvarycompletelyontrade-
insthat we receive aftersellinganewKTMbike.We will notpurchase usedbikesoff the of the internet
for resale.Ourinventoryselectionhastobe no lessthaneightyearsoldto trade-inandneedstopass
service department’sengine,chassis,andsuspensioninspection.
Service Department
There will be aKTM certifiedservice departmentthatwill performall maintenance andrepair
needs.All warrantyrepairsthatiscoveredunderKTM’spolicies.Alldiagnosticstoolswill be availableto
the techniciansforadvancedcomputerprocessingthat’sequippedonthe new machines.The service

33
departmentwill alsoinclude all the machiningtoolsthatare necessarytoperformqualityrepairson
engine andtransmissionoverhauls.
Service Departmentfeatures:
 Quicklane tire changes
 CertifiedKTMOrange TeamTechs
 Machiningequipmentforengine andtransmissionoverhauls
 Online schedulingtomeetcustomers’needs
 Aftermarketpartsinstallation
Parts Department
The parts departmentwill be locatedwithinthe dealershipthatisaccessibleforboththe
customersandservice department.The partsdepartmentwill includeaftermarketandOEMparts to
assistbetterperformance andinstallationqualityonKTMmotorcycles.Alsothe partsdepartmentwill
offera full line of aftermarketgearrangingfromvariousclothingbrands.
Dealership Competitive Advantage
SalesDepartment
 NewState of the Artdealership.
 Free internetandmotocrossvideogaminginthe lobbyarea.
 Offersponsorshipsforqualifiedrideronnew bikes.
 Large showroomflooroffersafirstperson experience forpotential buyers.
 Offerone of everyKTMmodel that’smanufactured.
 Offerdemodaysat local tracks.
Service Department
 Offerone seasonsponsorshipstoqualifiedriders.
 Free tire changeswithpurchase of frontand rear tire.
 QualifiedKTMtechniciansonall KTMmotorcycles.

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Marketing and Sales Strategy
Growth Strategy
Growing in the recreational market is one of the toughest obstacles for any motorsports
dealership. To ensure that Creek Motorsports will be a success, there will be a growth plan to
assist the dealership towards a positive future. This growth plan needs to be followed word for
word. The growth plan is set in place for one reason and that’s to grow. If it’s not followed by
one department, the dealership will fail in any economic state. Creek Motorsports will be
successful by the following processes.
1. Advertising
 Advertising is the best way to get our new dealership off the ground.
Creek Motorsports will invest a large portion of its profits towards
advertising and then slowly cut back once a customer base is established
for a stable stream of revenue. The extra funds will allow Creek
Motorsports to put the majority of our focus in the local area without
jeopardizing more distanced advertising.
2. Offering Quick Experienced Problem Free Service
 One of the largest draw backs in a dealership is standing behind their
service. Many motorcycle enthusiasts service their own bikes. Creek
Motorsports is set out to break the bad habit of customers working on
their own bikes by providing quality service that will be perform correctly
the first time in a timely manner.
 Creek Motorsports has to stand behind their customer’s service warranty
as well as KTM’s warranty.
3. Customer Loyalty and Retention
 Having a continuous flow of customers coming through a powersports’
doors is one of the most difficult issue to deal with. Creek Motorsports
has to make customers feel like they’re lifelong friends. Making sure
customers understand that Creek Motorsports was established for them.
We want customers to understand that if they have an issue, Creek
Motorsports is there to resolve it.
4. Profitability
 Creek Motorsports will offer competitive prices for products and services
while maintaining a comfortable profit margin.
5. Adjusting with Technology
 The powersports industry is going through an exciting time with all the
new technologies and advancements that companies are offering. To
keep customers coming back to Creek Motorsports, we have to be able
to adjust to the industry trends in a reasonable manner. All departments

35
of Creek Motorsports need to be proactive about industry trends to
assist any questions or concerns about KTM.
6. Gaining Market Share
 Whether its other KTM dealers, or local Japanese dealerships, Creek
Motorsports strives each and every day to take over more of the market
that surrounds it. Making customer’s our number one focus is what
we’re here for. Taking over the market will guarantee our dealerships
success for any kind of economic disaster, as well as more opportunities
for expanding into other manufacturers. We project to take over 10% of
the market after the first year of being in business.
Advertising Strategy
The focus of our advertising strategy is to show our potential customers that we’re not
your average motorsports dealership. The end goal for our is to get customers to come visit us.
If we get them through our doors, our advertising strategy worked. The more people that visit
us the better. Our culture in the Creek Motorsports will keep customers wanting to come back.
We’ll use the many different methods to get people to talk about Creek Motorsports. The four
methods that we’re going to focus on are the radio, internet, TV and local newspapers.
1. Radio
 Creeks Motorsports will spend 15% of our annual advertising budget on
radio commercials. The commercials will talk about service specials and
rebates that we’re offering during that time. We will cater our ads to
certain radio stations that the major of their listeners are motorcycle
riders.
2. Television
 Our dealerships will spend the least amount of our annual budget in the
television division at 12%. We feel there is a slow decline with television
user in our target market of customers. We will still provide a good
amount of ads about our new state of the art dealership, but not as
extensive as our radio advertising.
3. Newspaper
 We are planning on spending 18% of our advertising budget on our
dealership in local newspapers. We will spend a large portion of that 18%
in the District 14 newspaper. This is a newspaper that’s available for all
District 14 members that race. There are thousands of riders that view
this monthly newspaper.
4. Internet
 Creek Motorsports is set out to be the most active dealership in Michigan
when it comes to social media. We will spend 30% of our annual

36
advertising budget on internet ads. One may that we plan to set
ourselves apart from other dealerships is to have a Snapchat account
showing the exciting events that we’re attending or hosting around the
area. We will have an active YouTube channel, Facebook and Instagram
page as well. Through our social media pages, we will advertise the
following:
i. local events we are sponsoring where customers can get free
stuff,
ii. articles from the manufacture of my most recent purchase,
iii. service specials,
iv. referral programs,
v. contests for prizes and gift cards
Sales Strategy: KTM is broke down into seven different categories but Creek
Motorsports will put the majority of our focus in five of them. This sales strategy has the
greatest profit potential according to the market in Southwest Michigan.
 KTM is the only manufacturer that offers a two-
stroke bike with offroad racing in mind. Due to
having a corner in the market, we will have a
large amount of Enduro bikes in stock.
 Creek Motorsports will have a large amount of
inventory for motocross riders of all size and skill
levels. KTM has more competition to deal with in
the motocross industry but loyal customers that
swear by the machines will purchase them.
 The third group that we will focus on are the Naked bikes that KTM has to offer. The
most notable of this category is the KTM Super Duke. Built for winding European
roads, KTM offers a unique bike for Americans to enjoy. Due to having a corner in
the market we will stock a majority of Naked bikes in our dealership for our street
bikes.
Pricing Strategy: Creek Motorsports will offer a one price, no negotiating atmosphere
for a comfortable buying experience for customers for the first two months. We will also offer
discounts on select aftermarket products with the sale of a new bike. We will show customers
that we are pricing the bikes 3% lower than MSRP. This percentage we are still making a
comfortable profit while stimulating business through new customers. After the two months of
discounted prices, we will then bring the sale of the bikes back to suggested retail from KTM.
Sales Force: Creeks Motorsports will be looking for experience sales personnel with a
passion for the sport and KTM products. A sales recruiter with over 10 years of experience in
the industry will be hired to aid in finding qualified sales associates for our dealership. The sales
(Image courtesy ofKTM.com)
(Image courtesy of GoogleImages)

37
department is the backbone for a motorsports dealership, and having experienced sales
associates is a must. Once the associates are hired they will go through both the State of
Michigan’s training program as well as Powersports Business seminars. Powersports Business
has great online information about being successful in all branches of the dealership.
Grand Opening Activities: For our grand opening we are planning on holding a cook out
with all of the new products on display for the customers. Creek Motorsports goal in going this
is to make a friendly atmosphere for potential customers to talk about anything and everything.
We will promote our grand opening through newspaper ads, TV commercials, and social media.
We will send out a personalized letter inviting everyone that was involved in making our
dealership a reality. There will be a ribbon cutting ceremony and a raffle for a gift card to Creek
Motorsports.

38
Financial Management
New Bike Sales
 Two different categories of bikes, Street and Off-road
 Average new dirt bike selling price $8,500
 Average new street bike selling price $15,000
 On average, sell three dirt bikes per week and street bikes two a week
 Projected first year of gross profit $265,200 or 9% ROI
Financing
Creek Motorsports will finance their floor plan through KTM directly. The average
interest rate on their floor planning is 4.5%. On my balance sheet, we can see under Short Term
Liabilities that Creek Motorsport is financing their floor plan quarterly. Doing this will help with
not having to front all the money to purchase the bikes all at once for one years’ worth of new
bike inventory.
KTM does their bike purchasing differently from any other company on the powersports
industry. KTM has a dealership place their order in November for the entire year. They arrive
whenever KTM has one built for your dealership.
The most crucial element to purchasing their bikes is KTM doesn’t allow any more
purchases for new bikes outside of your order that was placed in November. This means if our
dealership sells out, of a certain bike, we’re out of stock until next year. The first year is the
hardest to estimate how much inventory we need to purchase. Our dealership needs to make
sure we don’t have stock outs in the middle of the year, as well as have left over models from
previous years that we have to sell at a discounted price to get them off of our showroom floor.
Used Bike Sales
Creek Motorsports will not have a large inventory of used bikes on the showroom floor.
The only time that we will have a used bike in our inventory is if we accept a trade-in from one
of our new bike purchases. As soon as we get that bike in we will sell it within the month.
 Expected to sell one a month
 Average markup on dirt bike is $2,000
 Average markup on street bike is $2,500
 ROI on used dirt bike sales is 33%
 ROI on used street bike sales is 25%
Parts Sales
Parts sales are directly correlated to the amount of hours sold in the service area. These
service hours include work on customer’s bikes, as well as used inventory that was traded in on
a new bike purchase.
 Parts sales is 90% of our service sales
 The average markup on parts is 40%
 ROI for parts sales 50%

39
Financial Documents
Funding Percentage Amount
Investor Funding
Harold Hemel 100% 1,000,000.00$
Future Investor 0% -$
Total Investment 1,000,000.00$
Loans
Mortgage 1,420,000.00$
Total Loans 1,420,000.00$
Other Funding
KTM Floor Planning Financing 580,661.20$
Other -$
Total Other Funding 580,661.20$
Total Funding 3,000,661.20$
Costs Actual
Fixed Costs
New Bikes 630,000.00$
Used Bikes -$
Starting Inventory Parts 174,420.00$
Building 1,200,000.00$
Land 500,000.00$
Technology 10,000.00$
Tools and Equipment 50,000.00$
Fixtures 15,000.00$
Furniture 10,000.00$
Permits, Licenses, Professional Fees 10,000.00$
Telephone 300.00$
Prepaid Insurance 3,250.00$
Advertising 30,699.20$
Property Tax 9,692.00$
Electricity 800.00$
Heat/AC 500.00$
Water/Sewer 250.00$
Trash Removal 250.00$
Hazardous Waste Removal 500.00$
Mortgage Down Payment 355,000.00$
Total Start-up Requirements 3,000,661.20$
Business Startup Costs

40
Position Rate Hrs/Day Days/Wk Weeks/Yr Productivity Labor Cost Commisison Total Wages Rate Revenue Generated
Salaried - non income producing
Owner/Operator 80,000.00$ 10 5 50 1 80,000.00$
Business Manager 50,000.00$ 9 6 50 1 50,000.00$
New Sales Manager 40,000.00$ 3 6 50 1 13,333.33$
Used Sales Manager 40,000.00$ 3 6 50 1 13,333.33$
Service Manager 40,000.00$ 8 5 50 1 40,000.00$
196,666.67$
Salary - income producing (without commission/cost of sales)
F&I Manager 40,000.00$ 3 6 50 1 13,333.33$ 15% 55,333.33$
Sales Associate 1 20,000.00$ 8 6 50 1 20,000.00$ 13% 40,085.00$
Sales Associate 2 20,000.00$ 8 6 50 1 20,000.00$ 13% 40,085.00$
Parts Manager 20,000.00$ 8 6 50 1 20,000.00$ 6% 40,930.40$
73,333.33$ 176,433.73$
Hourly
Technician 1 10.00$ 8 6 50 1.8 43,200.00$ 95.00$ 410,400.00$
Technician 2 10.00$ 8 6 50 1.6 38,400.00$ 95.00$ 364,800.00$
Parts Assistant 15.00$ 8 6 50 1 36,000.00$
117,600.00$ 775,200.00$Total
Cost of Labor / Cost of Sales Sales
Total
Total

41
New Bike Sales 2,775,000.00$
Used Bike Sales 132,000.00$
F&I Sales 225,000.00$
Parts Sales 697,680.00$
Service Sales 775,200.00$
Total Revenue 4,604,880.00$
New Bike Sales 2,520,000.00$
F&I Sales -$
Total COS 3,068,440.00$
New Bike Sales 255,000.00$
F&I Sales 225,000.00$
Total Gross Profit 1,536,440.00$
Personnel:
Salaries 464,033.73$
Vacation 3,200.00$
Benefits 50,000.00$
Subtotal 517,233.73$
Year One Good
Expenses
Cost of Sales
Revenue
Gross Profit

42
Semi-Fixed:
Advertising 8.0% 368,390.40$
Bad Debt (Write off) 1.0% 46,048.80$
Service/Parts Policy Adjustments 5.0% 73,644.00$
Interest Expense 70,037.04$
Business Loan -$
Floor Plan Loan 4.5% 17,801.016$
Property Tax 19,384.00$
Payroll Tax 5.0% 25,861.69$
Depreciation 41,483.52$
Electricity 9,600.00$
Heat/AC 6,000.00$
Water/Sewer 3,000.00$
Trash Removal 3,000.00$
Hazardous Waste Removal 6,000.00$
Telephone/Internet 3,600.00$
Technology 12,000.00$
Credit Card Fees 2.3% 23,268.33$
Permits, Licenses, Professional Fees 10,000.00$
Insurance (property/Liability) 6,500.00$
Total Expenses 1,262,852.52$
Net Income (loss) Before Tax: 273,587.48$
Income Tax 34.0% 93,019.74$
Net Income (loss) 180,567.73$
Return on Investments 18.06%
Fixed Expenses

43
Cash 1,000.00$ Accounts Payable 5,757.00$
Cash-in-Bank 315,713.13$ Notes Payable (<12 months) -$
Accounts Recievable -$ Floor Plan - New (possible to use for Used) 395,578.14$
Prepaid Expenses (Semi Annual) 12,942.00$ Short Term portion of Mortgage 44,590.10$
Total Current Assets 329,655.13$ Total Short Term Liabilities 445,925.24$
New Bikes 630,000.00$ Notes Payable -$
Used Bikes 1,560.00$ Mortgage 1,332,990.08$
Parts 174,420.00$ Total Long Term Liabilities 1,332,990.08$
Work in Process 7,364.40$
Total Inventory 813,344.40$ Total Liabilities 1,778,915.32$
Land 500,000.00$ Capital Stock 1,000,000.00$
Building 1,200,000.00$ Retained Earnings -$
Building Depreciation 30,769.23$ Net Income 180,567.73$
Furniture 10,000.00$ Total Net Worth 1,180,567.73$
Furniture Depreciation 1,428.57$
Tools and Equipment 50,000.00$
Tools and Equipment Depreciation 7,142.86$
Fixtures 15,000.00$
Fixtures Depreciation 2,142.86$
Total Fixed Assests 1,816,483.52$
Total Assests 2,959,483.05$ Total Liabilities + Total Net Worth 2,959,483.05$
Balance Sheet Year One Good
Net Worth (Owner's equity)
Assests Liabilities
Fixed Assets
Inventory
Current Assests Short Term
Long Term
Zachary:
After Year 1
4.5% interest
in Floor Plan
Zachary:
80% of fixed
assests costs.
20% down
payment. 5% at
20 years monthly
payment =

44
Fixed Calculations:
$9,371.37
240
$2,249,129.16
$829,129.16
01-Dec-2036
Date
Capital
Paid
Interest
Paid
01-Jan-2017 $3,454.70 $5,916.67
01-Feb-2017 $3,469.10 $5,902.27
01-Mar-2017 $3,483.55 $5,887.82
01-Apr-2017 $3,498.07 $5,873.30
01-May-2017 $3,512.64 $5,858.73
01-Jun-2017 $3,527.28 $5,844.09
01-Jul-2017 $3,541.98 $5,829.39
01-Aug-2017 $3,556.74 $5,814.64
01-Sep-2017 $3,571.56 $5,799.82
01-Oct-2017 $3,586.44 $5,784.93
01-Nov-2017 $3,601.38 $5,769.99
01-Dec-2017 $3,616.39 $5,754.99
01-Jan-2018 $3,631.45 $5,739.92
01-Feb-2018 $3,646.59 $5,724.79
01-Mar-2018 $3,661.78 $5,709.59
01-Apr-2018 $3,677.04 $5,694.33
01-May-2018 $3,692.36 $5,679.01
01-Jun-2018 $3,707.74 $5,663.63
01-Jul-2018 $3,723.19 $5,648.18
01-Aug-2018 $3,738.70 $5,632.67
01-Sep-2018 $3,754.28 $5,617.09
01-Oct-2018 $3,769.93 $5,601.45
01-Nov-2018 $3,785.63 $5,585.74
01-Dec-2018 $3,801.41 $5,569.96
01-Jan-2019 $3,817.25 $5,554.13
01-Feb-2019 $3,833.15 $5,538.22
01-Mar-2019 $3,849.12 $5,522.25
01-Apr-2019 $3,865.16 $5,506.21
01-May-2019 $3,881.27 $5,490.11
01-Jun-2019 $3,897.44 $5,473.93
01-Jul-2019 $3,913.68 $5,457.69
01-Aug-2019 $3,929.98 $5,441.39
01-Sep-2019 $3,946.36 $5,425.01
Scheduled Payment Amount:
Mortgage Calculator
Loan Amount:
User-Input Fields:
$1,420,000.00
Total Interest Paid:12
Date of Last Payment:
Total No. Payments:
Total Payment Amount:Number of Years:
Start Date (optional):
Number of Payments Per Year:
Interest Rate (%): 5.00%
20
01-Dec-2016
$1,406,094.57
$1,402,581.93
$1,399,054.65
$1,395,512.67
Remaining
Balance
$1,416,545.30
$1,413,076.20
$1,409,592.64
$1,377,580.18
$1,373,948.72
$1,370,302.14
$1,366,640.36
$1,391,955.94
$1,388,384.38
$1,384,797.94
$1,381,196.56
$1,348,101.33
$1,344,347.04
$1,340,577.12
$1,336,791.49
$1,362,963.32
$1,359,270.97
$1,355,563.22
$1,351,840.03
$1,317,625.40
$1,313,744.13
$1,309,846.69
$1,305,933.02
$1,332,990.08
$1,329,172.83
$1,325,339.68
$1,321,490.56
$1,302,003.03
$1,298,056.67
Payment
No.
1
2
3
8
9
10
11
4
5
6
7
16
17
18
19
12
13
14
15
24
25
26
27
20
21
22
23
32
33
28
29
30
31
Start
Balance
$1,420,000.00
$1,416,545.30
$1,413,076.20
$1,395,512.67
$1,391,955.94
$1,388,384.38
$1,384,797.94
$1,409,592.64
$1,406,094.57
$1,402,581.93
$1,399,054.65
$1,366,640.36
$1,362,963.32
$1,359,270.97
$1,355,563.22
$1,381,196.56
$1,377,580.18
$1,373,948.72
$1,370,302.14
$1,336,791.49
$1,332,990.08
$1,329,172.83
$1,325,339.68
$1,351,840.03
$1,348,101.33
$1,344,347.04
$1,340,577.12
$1,305,933.02
$1,302,003.03
$1,321,490.56
$1,317,625.40
$1,313,744.13
$1,309,846.69
Payment
Amount
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37
$9,371.37

45
References
Schultz, Brian, Personal Interview. Sales Associate, Callander Commercial, Kalamazoo, MI,
September 26, 2016
Todd McNeal, Personal Interview. Client Advisor, Zeigler Motorsports, Kalamazoo, MI,
September 26, 2016
Mike White, Personal Interview, Sales Manager, Village Motorsports, Grand Rapids, MI,
September 26, 2016
John Petta, Email Interview, District Sales Manager, KTM North America Inc, Murrieta, CA,
September 26, 2016
Crowley, Patricia, Phone and Email Interview, Kalamazoo County Drain Commission, Kalamazoo,
MI, October 6, 2016
Van Ryn, Mike, Phone and Email Interview, Director of Talent Development, Zeigler Auto Group,
Kalamazoo, MI, October 28, 2016
Hemel, Frank, Email and Phone Interview, Technical Support Service, Western Powersports Inc,
Boise, ID, November 27, 2016
Nabozny, Johanna, Personal Interview, Commercial Relationship Manager, Old National Bank,
Kalamazoo, MI, November 27, 2016

46
Appendix
Article A: Property Description, Legal Description, Land Information
Article B: Application for County Drain, Soil Erosion and Sedimentation Control, Schedule of
Kalamazoo County Fees
Article C: Dealership Requirements
Article D: KTM Financial Statement
Article E: LLC Forms and Permits, Dealer Applications, Service Facility Application
Article F: Thank You Letters

47
708 Campus Drive
Big Rapids, MI 49307
December 4, 2016
John Petta
District Sales Manager
KTM North America, Inc.
38429 Innovation Court
Murrieta, CA 92563
Dear Mr. John Petta
Thank you for your time and giving me a chance to ask questions to help assist my Automotive
capstone project for my degree. The information you gave made my project go smoothly with
little stress. I enjoyed creating a new connection with you and hope to continue and grow our
relationship in the near future when I graduate.
My project will be viewed by my professor of the Automotive Management Fixed Operations
class, Mrs. Michele Harvey. Your information that was given to me during our interview and
will play a vital role in my project.
Once again I would like to thank you for taking the time for the interview and information you
provided me. If you have any further information or questions about future opportunities, you
can contact me at 269-830-7763 or naboznz@ferris.edu.
Respectfully yours,
Zachary T. Nabozny

48
708 Campus Drive
December 4, 2016
Brian Schultz
Sales Associate
Callander Commercial
628 West Milham Road
Portage, MI 49024
Dear Mr. Brian Schultz
Respectfully yours,
Zachary T. Nabozny

49
708 Campus Drive
December 4, 2016
Mike White
Sales Manager
Village Motorsports
3700 Plainfield
Grand Rapids, MI 49525
Dear Mr. Mike White
Respectfully yours,
Zachary T. Nabozny

50
708 Campus Drive
December 4, 2016
Frank Hemel
Technical Assistance
Western Power Sports
601 E Gowen Rd
Boise, ID 83716
Dear Mr. Frank Hemel
Respectfully yours,
Zachary T. Nabozny

51
708 Campus Drive
December 4, 2016
Todd McNeal
Client Advisor
Zeigler Motorsports
3825 Lake Street
Kalamazoo, MI 49048
Dear Mr. Todd McNeal
Respectfully yours,
Zachary T. Nabozny

AMGT401-001_TP_Nabozny

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