Are you about starting a bicycle shop? If YES, here is a complete sample bicycle shop business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a bicycle shop. We also took it further by analyzing and drafting a sample bicycle shop marketing plan template backed up by actionable guerrilla marketing ideas for bicycle shops. So let’s proceed to the business planning section.
Why Start a Bicycle Shop?
No doubt, there are businesses that someone with little schooling, little training and no serious business background can start. One of such businesses is to open a bicycle dealership and repair shop. The basic things you would need to have in place to make success from this type of business is technical training on how to fix bicycles, bicycle repair tool box, a good location, easy access to wholesale supply of bicycles and bicycle spare parts and good customer service skill.
Generally, if your shop is located in an area with good human and vehicular traffic, and you have stocked in your different types and sizes of bicycles from different brands, you may not have to struggle to get people to visit your shop and make purchase and repairs.
So, if you have decided to open a bicycle dealership and repair shop, then you should ensure that you carry out feasibility studies and also market survey. This will enable you properly locate the business in a good location and then hit the ground running. Business plan is yet another very important business document that you should not take for granted in the bid to launching your own business.
Below is a sample bicycle shop business plan template that can help you to successfully write your own with little or no difficulty.
A Sample Bicycle Shop Business Plan Template
- Industry Overview
Players in the Bicycle Dealership and Repair Shops industry primarily sell new bicycles, bicycle parts and accessories. A good number of bicycle dealership shops also provide repair and maintenance services.
Despite the fact that revenue for the Bicycle Dealership and Repair industry has grown over the last half a decade, many bicycle dealers had difficulty staying in business during the period of recession. No doubt, the industry has fared well overall as cycling has gained popularity for its health and environmental benefits, and as rising disposable income has encouraged consumer purchases.
Nevertheless, despite rising consumer demand, external competition for bicycle sales from mass merchandisers, which can provide less expensive bicycles from low-cost brands, has steadily increased. While this competition is expected to continue to temper sales somewhat over the next five years, as consumers earn higher incomes and are better able to afford luxury items like specialty bicycles, sales and profit for bicycle dealers are expected to grow.
The Bicycle Dealership and Repair industry is indeed a thriving and profitable industry in most countries of the world. It is a major sector of the economy of the United States of America and they generate a whooping sum of well over $291 million annually from more than 13,927bicycle dealership and repair shops scattered all around the United States of America.
The industry is responsible for the employment of well over 84,282 people. Experts project that the industry will grow at a 3.1 percent annual rate between 2011 and 2016. No establishment can boast of having the lion share of the available market in this industry. The industry is open for fair competition.
A recent report published by IBISWORLD shows that the Bicycle Dealership and Repair industry has a very low level of industry concentration, with no major industry players dominating industry revenue in 2016. The report stated that the industry is highly fragmented, and is made up of a large number of small independent dealerships conducting business from only one or two establishments.
So also, The National Bicycle Dealers Association reported that 84.0 percent of specialty bicycle retailers had one location, while 92.8 percent had no more than two locations. The report further stated that over the past five years, industry concentration has remained low as operators are primarily single-location shops or niche stores that cater to specific demographics or categories. Going forward, the total number of enterprises has increased at an average annual rate of 2.2 percent to 13,927.
Over and above, the Bicycle Dealership and Repair industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale in a street corner or you can choose to start on a large scale with several outlets in key cities through the United States of America and Canada retailing quality bicycles from top brands.
Bicycle Shop Business Plan – Executive Summary
Alpha Blonde Bicycle Shop®, Inc. is a standard and registered bicycle dealership and repair shop that will be located in one of the busiest streets in Little Rock – Arkansas. We have been able to lease a facility that is big enough to fit into the design of the kind of standard bicycle dealership and repair shop that we intend launching and the facility is located in a corner piece facility in the center of the commercial hub in Little Rock – Arkansas.
Alpha Blonde Bicycle Shop®, Inc. will be involved in Retailing new bicycles (Mountain bicycles, Road bicycles, Hybrid/cross bicycles and other bicycles), bicycle parts and accessories from different manufacturers (brands) from the United States and abroad and also providing bicycle repair and maintenance services. We are set to sell our products to a wide range of customers in and around Little Rock – Arkansas.
We are aware that there are several large and small chains of bicycle dealership and repair shop outlets all around Little Rock – Arkansas, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors. We have an online – service option for our customers, and our outlet is well secured with various payments of options.
Alpha Blonde Bicycle Shop®, Inc. will ensure that all our customers are given first class treatment whenever they visit our shop. We have in place, a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customers’ base may grow to. We will ensure that we get our customers involved in the selection of tire brands that will be in our shops and also when making some business decisions.
Alpha Blonde Bicycle Shop®, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business best practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our customers.
Alpha Blonde Bicycle Shop®, Inc. is a family business that is owned by Alfred Gordon and his immediate family members. Alfred Gordon has a B.Sc. in Business Administration from University of Southern Maine – Portland, with well over 5 years of experience in the bicycle dealership and repair shops industry, working for some of the leading brand in the United States.
Although the business is launching out with just one outlet in Little Rock – Arkansas, but there is a plan to open other outlets and sell franchise all around major cities in the United States and Canada.
- Our Products and Services Offering
Alpha Blonde Bicycle Shop®, Inc. is in the Bicycle Dealership and Repair Shop Industry to service a wide range of corporate and individual clients and of course to make profits, which is why we will ensure we go all the way to make available a wide range of bicycles and accessories from top manufacturing brands the United States and other countries of the world.
We are in the Bicycle Dealership and Repair Shop industry to make profits and we will ensure that we do all that is permitted by the law of the United States to achieve our aim and ambition of starting the business. Our product and services offerings are listed below;
- Retailing new bicycles (Mountain bicycles, Road bicycles, Hybrid/cross bicycles and other bicycles), bicycle parts and accessories
- Providing bicycle repair and maintenance services
Our Vision Statement
Our vision is to become one of the leading brands in the bicycle dealership and repair shops industry in Arkansas and to establish a one stop bicycle dealership and repair shop in Little Rock – Arkansas and in other key cities in the United States of America and Canada.
- Our Mission Statement
Our mission is to establish a world – class bicycle dealership and repair shop business that will make available a wide range of bicycle and accessories from top bicycle manufacturing brands at affordable prices to the residence of Little Rock – Arkansas and other key cities in the United States of America and Canada where we intend opening of chains of bicycle dealership and repair shops and franchise.
- Our Business Structure
Alpha Blonde Bicycle Shop®, Inc. do not intend to start a bicycle dealership and repair shop business like the usual mom and pop business around the street corner; our intention of starting a bicycle dealership and repair shop business is to build a standard and one stop bicycle dealership and repair shop outlets in Little Rock – Arkansas and other key cities in the United States of America and Canada. We will make that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers). As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.
In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Shop Manager
- Human Resources and Admin Manager
- Merchandize Manager
- Sales and Marketing Manager
- Information Technologist
- Accountants / Cashiers
- Sales Agents / Customer Services Executive
- Bicycle Repair Technicians
Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities.
- Responsible for managing the daily activities in the shop
- Ensures that proper records of bicycles, bicycle spare parts and accessories are kept and warehouse does not run out of products
- Ensures that the store facility is in tip top shape and goods are properly arranged and easy to locate
- Interfaces with third – party suppliers (vendors)
- Controls bicycles distribution and supply inventory
- Supervises the workforce in the bicycle sales floor.
- Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Helps to ensure consistent quality of bicycles, bicycle spare parts and accessories from different manufacturers are purchased and retailed in good price that will ensure we make good profit
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
- Ensures that the organization operates within stipulated budget.
Sales and Marketing Manager
- Responsible for retailing new bicycles (Mountain bicycles, Road bicycles, Hybrid/cross bicycles and other bicycles), bicycle parts and accessories
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer purchases
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding increase sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
- Manages the organization website
- Handles ecommerce aspect of the business
- Responsible for installing and maintenance of computer software and hardware for the organization
- Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
- Manages the organization’s CCTV
- Handles any other technological and IT related duties.
Accountant / Cashier:
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Sales Agents / Client Service Executive
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries (answer customer queries regarding the store and the merchandise)
- Finds out the customer’s needs, recommend, select and help locate the right merchandise, describe a product’s features and benefits.
- Makes suggestions and encourage purchase of products
- Provides information about warranties, manufacturing specifications, care and maintenance of merchandise and delivery options
Bicycle Repair Technicians:
- Responsible for providing bicycle repair and maintenance services
- Helps in assembling bicycles for clients after purchase
- Handles any other duty as assigned by the shop manager.
- Responsible for cleaning all the bicycles, spare parts, accessories and the store facility at all times
- Ensures that toiletries and supplies don’t run out of stock
- Cleans both the interior and exterior of the store facility
- Handle any other duty as assigned by the store manager.
Bicycle Shop Business Plan – SWOT Analysis
Our plan of starting with just one outlet of our bicycle dealership and repair shop in Little Rock – Arkansas is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then open other chains of outlets all over major towns in Arkansas and key cities in the United States and Canada.
We are quite aware that there are several bicycle dealership and repair shops all over Little Rock – Arkansas and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.
Alpha Blonde Bicycle Shop®, Inc. employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a business model that will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Alpha Blonde Bicycle Shop®, Inc.;
The location of our shop, the business model we will be operating on both (physical store and online store), varieties of payment options, wide range of bicycles from different manufacturers and our excellent customer service culture will definitely count as a strong strength for Alpha Blonde Bicycle Shop®, Inc. So also our team of highly qualify staff members is also a plus for us.
A major weakness that may count against us is the fact that we are a new bicycle dealership and repair shop outlet in Little Rock – Arkansas and we don’t have the financial capacity to compete with multi – million dollars bicycle dealership and repair shop outlets when it comes to retailing at a rock bottom prices for all their tires.
The fact that we are going to be operating our bicycle dealership and repair shop in one of the busiest streets in Little Rock – Arkansas couple with the rising number of people and household switching to cycling as against driving provide us with unlimited opportunities to sell our bicycles to a large number of individuals and corporate organizations.
We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our bicycle dealership and repair shop outlets; we are well positioned to take on the opportunities that will come our way.
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new bicycle dealership and repair shop outlet in same location where ours is located. So also, unfavorable government policies may also pose a threat to businesses such as ours.
Bicycle Shop Business Plan – MARKET ANALYSIS
- Market Trends
The Bicycle Dealership and Repair Shop Industry, just like most businesses in the retailing industry, depend on strong consumer spending to spur the demand for industry products. Over the last half a decade, the economy has begun recovering from recessionary declines with both the Consumer Confidence Index and disposable income increasing.
Going forward, as the economy of the United States continues to recover and consumers are expected to loosen their discretionary budgets, the industry is anticipated to thrive. This is why raising disposable income, healthy lifestyle and climate change cum global warming will support demand for industry products and services.
Truly the industry has fared well overall as cycling has gained popularity for its health and environmental benefits, and as rising disposable income has encouraged consumer purchases.
As part of marketing strategies, bicycle dealership and repair shops engage in massive clearance sales and discount sales to attract customers. It is a strategy that helps them welcome new customers and also reinforce the loyalty of old customers. So also in the bid to maximize profits,
Lastly, in recent time, the bicycle dealership and repair shops landscape has seen tremendous changes in the last 20 years; it has grown from the smaller outlets to a more organized and far reaching venture. The introduction of franchise and online store makes it easier for bicycle dealership and repair shops to reach out to a larger market far beyond the areas where a physical bicycle dealership and repair shop is located.
- Our Target Market
Possibly it will be safe to submit that the bicycle dealership and repair shops industry has a wide range of customers; every individual and corporate organization (cyclist clubs) who owns bicycles would at one point or the other call for repair and replacement of parts.
In view of that, we have positioned our bicycle dealership and repair shop to service the residence of Little Rock – Arkansas and every other location where franchise cum outlets of our bicycle dealership and repair shops will be located all over key cities in the United States of America and Canada. We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us.
We are in business to retail a wide range of new bicycles and bicycles spare parts and accessories to the following groups of people and corporate organizations;
- Cyclist clubs
- Corporate Executives
- Sportsmen and Sportswomen
- Everyone who resides in our target locations
Our Competitive Advantage
A close study of the bicycle dealership and repair shops industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.
We are aware of the stiffer competition and we are well prepared to compete favorably with other leading bicycle dealership and repair shops in Little Rock – Arkansas and throughout the United States and Canada.
Alpha Blonde Bicycle Shop®, Inc. is launching a standard one stop bicycle dealership and repair shop that will indeed become the preferred choice of residence of Little Rock – Arkansas and every other location where our outlets will be opened.
Our bicycle dealership and repair shop is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Little Rock – Arkansas. We have enough parking spaces that can accommodate well over 20 cars per time.
One thing is certain; we will ensure that we have a wide range of new bicycles and bicycle spare parts and accessories from leading manufacturers available in our shop at all times. It will be difficult for customers to visit our shop and not see the type and size of bicycle they are looking for.
One of our business goals is to make Alpha Blonde Bicycle Shop®, Inc. a one stop bicycle dealership and repair shop for both individual and corporate organizations. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups bicycle dealership and repair shops) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
Bicycle Shop Business Plan – SALES AND MARKETING STRATEGY
Sources of Income
Alpha Blonde Bicycle Shop®, Inc. is in business to retail a wide range of bicycles and bicycle spare parts and accessories to the residence of Little Rock – Arkansas and every other location our shop will be opened. We are in the bicycle dealership and repair shops industry to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives.
In essence, our source of income will be the retailing of a wide range of new bicycles and bicycle spare parts and accessories at affordable prices. Alpha Blonde Bicycle Shop®, Inc. will generate income by;
- Retailing new bicycles (Mountain bicycles, Road bicycles, Hybrid/cross bicycles and other bicycles), bicycle parts and accessories
- Providing bicycle repair and maintenance services.
One thing is certain when it comes to bicycle dealership and repair shop business, if your shop is well stocked with various types of bicycles, bicycle spare parts and accessories from different brands and centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Little Rock – Arkansas and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.
We have been able to critically examine the Bicycle Dealership and Repair Shops Industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Little Rock – Arkansas.
Below are the sales projections for Alpha Blonde Bicycle Shop®, Inc. it is based on the location of our business and other factors as it relates to bicycle dealership and repair shops start – ups in the United States;
- First Fiscal Year-: $150,000
- Second Fiscal Year-: $350,000
- Third Fiscal Year-: $750,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor retailing same bicycle brands and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location for Alpha Blonde Bicycle Shop®, Inc. we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Little Rock – Arkansas. We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.
We hired experts who have good understanding of the bicycle dealership and repair shop industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Little Rock – Arkansas.
In other to continue to be in business and grow, we must continue to sell the bicycles, bicycle spare parts and accessories that are available in our store which is why we will go all out to empower or sales and marketing team to deliver.
In summary, Alpha Blonde Bicycle Shop®, Inc. will adopt the following sales and marketing approach to win customers over;
- Open our bicycle dealership and repair shop in a grand style with a party for all
- Introduce our bicycle dealership and repair shop by sending introductory letters alongside our brochure to cyclist clubs, corporate organizations, households and key stake holders in Little Rock – Arkansas
- Ensure that we have a wide range of bicycles, bicycle spare parts and accessories from different brands at all times.
- Make use of attractive hand bills to create awareness and also to give direction to our shop
- Position our signage / flexi banners at strategic places around Little Rock – Arkansas
- Position our greeters to welcome and direct potential customers
- Create a loyalty plan that will enable us reward our regular customers
- Engage on road shows within our neighborhood to create awareness for our shop
- List our business and products on yellow pages ads (local directories)
- Leverage on the internet to promote our business
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
Bicycle Shop Business Plan – Publicity and Advertising Strategy
Despite the fact that our shop is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our bicycle dealership and repair shop.
Alpha Blonde Bicycle Shop®, Inc. has a long term plan of opening outlets in various locations all around Arkansas and key cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in Little Rock before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Alpha Blonde Bicycle Shop®, Inc.;
- Place adverts on community based newspapers, radio stations and TV stations.
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Snapchat, Badoo, Google+ and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Little Rock – Arkansas
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Contact cyclist clubs, corporate organizations, households, landlord associations and schools by calling them up and informing them of Alpha Blonde Bicycle Shop®, Inc. and the products we sell
- Advertise our bicycle dealership and repair shop business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and trucks and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.
Our Pricing Strategy
Aside from quality, pricing is one of the key factors that gives leverage to retailing business such as bicycle dealership and repair shops, it is normal for consumers to go to places (bicycle dealership shop outlets) where they can get bicycles, bicycle spare parts and accessories at cheaper price.
We know we don’t have the capacity to compete with big players in the industry, but we will ensure that the prices and quality of all the bicycles, bicycle spare parts and accessories that are available in our shop are competitive with what is obtainable amongst bicycle dealership and repair shops within our level.
- Payment Options
The payment policy adopted by Alpha Blonde Bicycle Shop®, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Alpha Blonde Bicycle Shop®, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards / Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for purchase of bicycles, bicycle spare parts and accessories and for repair and maintenance services.
- Start – Up Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting / leasing a big facility, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.
The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a bicycle dealership and repair shop business; it might differ in other countries due to the value of their money.
These are the key areas where we will spend our start – up capital;
- The total fee for registering the business in the Unites States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of Victory Express Tire Shop®, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring Business Consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
- Cost for Shop remodeling (construction of racks and shelves) – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The cost for start-up inventory (stocking with a wide range of bicycles, bicycle spare parts and accessories from different brands and bicycle repair tool box) – $250,000
- The cost for counter area equipment – $9,500
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- Cost of purchase and installation of CCTVs: $10,000
- The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
- The cost of launching a website: $600
- The cost for our opening party: $7,000
- Miscellaneous: $10,000
We would need an estimate of $750,000 to successfully set up our bicycle dealership and repair shop in Little Rock – Arkansas. Please note that this amount includes the salaries of all the staff for the first month of operation.
Generating Funds / Startup Capital for Alpha Blonde Bicycle Shop®, Inc.
Alpha Blonde Bicycle Shop®, Inc. is a private registered business that is solely owned and financed by Alfred Gordon and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.
These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $250,000 (Personal savings $200,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
Bicycle Shop Business Plan – Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Alpha Blonde Bicycle Shop®, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to retail our wide range of quality bicycles, bicycle spare parts and accessories a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Alpha Blonde Bicycle Shop®, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the shop: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed bicycle repair tool box, furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Compilation of our list of products that will be available in our store: Completed
- Establishing business relationship with vendors – manufacturers and suppliers of bicycles, bicycle spare parts and accessories: In Progress