Hesketh was inspired by Lord Hesketh, who at the time had a background of F1 racing being the last private team to win a F1 Grand Prix with James Hunt at the wheel. Lord Hesketh wanted to use the skills and facilities built up in that pursuit to greater effect and production of a quality motorcycle was born. The Hesketh motorcycle was developed on the Easton Neston estate, the home of the Lord, with the prototype running in the spring of 1980 with, which was then a special Weslake engine commissioned for the Hesketh machine. Research, development and road testing has continued from that date on the estate to the present day.

After two years of intense development it was announced to the press and partners were sort for the manufacturing. As none were forthcoming and the City was interested in investing in the venture, Hesketh motorcycles PLC was formed. In 1981-2 a modern purpose built factory was set up to manufacture the bikes in Daventry (15 miles to the north) but unfortunately due to lack of cash, start-up problems and a collapsing market, this went into receivership and ceased trading after manufacturing about one hundred V1000 models for the home market.