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bicycle business plan

BUSINESS PLAN Bikes that give back Supporting homeless youth and our community through bikes, business, and relationships homeless youth learn bicycle mechanics and basic business skills while gaining practical job experience. “I want to use my Full Cycle experience to business goals within the bike shop through proven. Sep 04,  · A first-rate business plan is job one for your startup bicycle rental business. If time is scarce, business plan software can be used to streamline the process. A business plan software solution is an effective tool for time-strapped bicycle rental business owners who understand the importance of a great business plan. University Cycle Works retail bicycle shop business plan executive summary. University Cycle Works is bicycle specialty store, offering retail sales of new bicycles, parts and accessories, clothing, and maintenance and repair service.



Bob Adams takes you through a sample business plan. Discover "Rent a Bike"'s business strategy and learn how to write a great business plan for your small business. Discover "Rent a Bike"'s business strategy and learn how to create a great business plan for your small business. We will be part of the large and growing bicycle rental industry. Our target market is summer visitors to Cape Cod, particularly central Cape Cod.

We will be differentiated from competitors in that we will deliver rental bicycles directly to our customers at their motels, campsites, or summer rental residences. At this point we have assembled a detailed operating plan, including promotional plans. We have arranged access to a station wagon to deliver bicycles and a garage to store them in.

We have started to carefully buy used bicycles in excellent quality at very reasonable prices. Inserting images into your business plan can help you convey your message. Another important differential is that our cost base is dramatically lower than bicycle business plan of our competitors.

For one, we are going to buy used bicycles in a very disciplined way to build our rental fleet, whereas our competitors buy new bicycles. We estimate that we can buy quality used bicycles for approximately half the cost our competitors spend for new bicycles.

We will also have very bicycle business plan labor cost. There are other employees. Bob has ridden bicycles for many years, is handy with tools, and believes he can do most basic bicycle repairs himself.

We will also have very low overhead costs. We will store bicycles in an old garage previously converted from an outhouse on our family property. Bob bicycle business plan use the family station wagon, only paying for gas, to service the business. Bob also has a good neighbor and friend, Harold Perethian, who runs a large bicycle wholesale business, who lends additional advice and provides wholesale prices for accessories and parts. We expect the business to be highly profitable and for investors to potentially earn back their investment very quickly.

By reinvesting part of our profits from our initial summers, we plan to expand our fleet and increase our advertising, eventually expanding our promotional activity throughout the entire area. Bicycle business plan overall sale of bicycles and related items in the U. However, with the average bicycle dealer deriving just 0.

Although I cannot find data available for just the Cape Cod bicycle business plan that I will be focusing on, I can estimate it. The bicycle business plan of rentals are single-day rentals.

For simplicity, I will assume all rentals are single-day rentals. A good graph will always be better than a thousand words. I estimate from anecdotal information and limited personal observation that, bicycle business plan, including off-weather days, rental bicycles average a 40 percent utilization rate during the summer season, or in other words, are rented for an average of 28 days.

Then I adjust for off-season rentals. Also, bicycle business plan, I believe the total possible market is larger, particularly because many rentals are an impulse decision.

So every time a new rental stand is set up, I believe the market incrementally expands. Furthermore, with my introduction of bicycle rentals delivered to motels, campsites, bicycle business plan, and summer residences, the market may expand further, bicycle business plan. I believe the market for bicycle rentals on Cape Cod is continuing to grow and is fueled by a number of favorable factors.

The rail trails, old railroad lines converted into bicycle trails, are becoming increasingly well known and popular and especially important to the segment of the population that will only take on the expense of a rental bicycle if they can ride it on a dedicated bicycle trail. People are generally pursuing more healthy lifestyles, especially on vacations, and are increasingly more likely to bicycle business plan to bicycle on vacation. Many people are becoming increasingly discerning about the quality and type of bicycle that they wish to rent.

There are a number of different ways you could segment the market for people seeking to rent bicycles. First you could segment it by quality and price. The rental market for this rider is particularly small because this kind of rider is most likely to bring his or her own bicycle on vacation on a rack on the back of the car.

The most common bicycle renter is typically above average income, is not too bicycle business plan conscious if he or she considers the price to be more or less reasonable, and expects a good-quality bicycle but not the high-end bicycle that the enthusiast would. I estimate this segment to be roughly 25 percent of the market. Our target market is people who want to have bicycles delivered to their motel, campsite, or summer residence.

Because there will be some expense in making this delivery, we will primarily focus on customers interested in renting bicycles for more than one day. Even though in my analysis of the market I estimated that only about 20 percent of rentals are bicycle business plan more than one day, the revenue from such rentals is significantly higher.

In fact, with the price for two days usually being exactly double one day, and a week being substantially higher than two days, for example, the market for rentals of more than one day may be over 40 percent of the market in dollar terms. We will, however, try to capture some of the price-shopping market, bicycle business plan, especially because people who rent bicycles for longer periods of time may tend to be more price conscious.

With our customers looking to have bicycle rentals delivered to them, and generally renting for periods longer than a day, these people will be quite a bit different than the person who might rent a bicycle for an hour from a roadside stand.

People renting bicycles for an hour from a roadside stand are generally young—often in their twenties—and frequently single but usually in the company of one or more friends. People renting bicycles delivered to their motel, campsite, or summer residence and renting for multiple days tend to be a couple, if not a family group, bicycle business plan.

Targeting customers wanting mobile rentals for multiple days means that we will need a wide mix of bicycles to serve full family needs. So we need bicycles of all sizes and we need bicycle business plan of baby seats! The mobile rental customer is not as much of an impulse customer as someone renting from a roadside stand is. So having bicycle business plan shiniest and newest bicycles is not really going to help us get rentals. But the bicycles need to work and work well.

The bicycle rental industry on is dominated by U Pedal It, Inc. Although they have a storefront near the harbor in Hyannis, most of their rentals are from dozens of agent-operated locations all over Cape Cod. Other than U Pedal It, Inc. And there are a handful of bicycle retail shops on Cape Cod that also rent bicycles.

U Pedal It, bicycle business plan, Inc. In addition, the several rental firms that are located on bicycle trails are basically betting their business on their proximity to a great bike riding location. There does bicycle business plan appear to be much price competition. Everyone offers about the same price for a standard bicycle. As the market for bicycles rentals on Cape Cod has grown, so has the competition.

The popularity of the rail trails has led to more rental locations near the rail trails. And the increased emergence of bicycle bicycle business plan looking for high-end rentals has further splintered the market and created a rental niche for high-end bike dealers. Our primary competitor is U Pedal It, Inc. I estimate they own 1, of the 1, estimated total rental bicycles available on Cape Cod. They have at least double if not triple the combined locations of bicycle business plan rest of the industry put together.

Their strategy is to dominate Cape Cod by making agreements with agents, such as gas stations, motels, bicycle business plan, etc. They have very carefully selected their rental agents and will negotiate the percentage of revenue, particularly if the location is highly successful.

They rent high-quality Raleigh bicycles. They completely renew their fleet every two years or so. Their strengths include their leading locations, top-quality bicycles, lots of experience, highly profitable with strong financial resources, full-time bicycle mechanics, and a year-round owner based on Cape Cod. They also have only one type of bicycle, the very recognizable Raleigh brand, bicycle business plan, which looks great and holds up well during rentals, and because they use a single brand, their bicycles are easier to maintain.

A possible weakness is that U Pedal It, Inc. Our primary competitor, U Pedal It, Inc. While U Pedal It, bicycle business plan, Inc. These displays appeal not only to impulse renters but also to more contemplative renters, who are constantly reminded about the availability of the U Pedal It, Inc.

The clearest need I see in the market is for the delivery of bicycle rentals directly to motels, campsites, and summer residences. Although costs will not make this practical for very short i. Also, because most competitors, including the dominant U Pedal It, Inc. Because such longer-term rentals can become rather expensive, bicycle business plan, potential renters are more likely to shop around for a competitive price.

And U Pedal It, Inc. The biggest threat would be if a highly established player, especially the dominant U Pedal It, bicycle business plan, Inc. However, as I have outlined previously, I think this is highly unlikely because their model is highly successful and we are just gearing up for a sliver of the market. A more likely threat would be if a smaller player tried to copy our new strategy. This is possible, bicycle business plan, but I think it is unlikely, bicycle business plan, especially during the first season.

Also, bicycle business plan, for an existing player with an existing location, it is a lot more work to deliver rental bicycles. Not everyone wants to work as hard as Bob Adams. I can see how they are doing business, bicycle business plan I can design a new business model that both serves unmet customer needs and avoids competing directly with my competitors.

I know how to get a great value buying used bicycles. My mother is going to allow me to use the family station wagon for this business, as long as I pay for gas and can work around her schedule.

I believe much of the longer-term, deliverable bicycle rental market will be families, so I will make an effort to build a rental fleet with bicycles for all ages and also have plenty of baby seats. I am going to be flexible in pricing for longer periods of time, such as a week or a month, when the rental fee might come close to being as high as my entire purchase price for my average used bicycle.

Because I am not renting bicycles on impulse from highly visible bicycle stands and customers will not see my bicycles until after they have requested a rental delivery, and because I have very limited resources, I will build a rental fleet of used bicycles instead of new ones. I bicycle business plan also not limit myself to just one brand name, so that I can buy bicycles opportunistically and get the best deals possible.

I am going to design my own advertising. Our service is renting bicycles.

 

 

bicycle business plan

 

Creating a Business Plan Is Essential to Your Business. Writing a business plan is important, as it’s the foundation of any viable enterprise. Your business plan should be a living and breathing document that contains your goals and your plan for reaching them. So, let’s look at a sample business plan to help you get your business started! BUSINESS PLAN Bikes that give back Supporting homeless youth and our community through bikes, business, and relationships homeless youth learn bicycle mechanics and basic business skills while gaining practical job experience. “I want to use my Full Cycle experience to business goals within the bike shop through proven. University Cycle Works retail bicycle shop business plan executive summary. University Cycle Works is bicycle specialty store, offering retail sales of new bicycles, parts and accessories, clothing, and maintenance and repair service.