bike shop business plan philippines

Trending News

How to start a real estate business in the philippines .

• Business Ideas
• Human Resources
• Office Technology
• Starting a Business

Start Your Own Bicycle Shop: A Comprehensive Guide to Success 

Disclosure: Small Business Philippines strives to provide relevant and accurate information in all its articles. However, some information in our articles may differ or might be outdated from what you can see or read directly from the establishments’ or businesses’ websites. Please get in touch with us directly for any discrepancies.

Starting a bicycle shop involves establishing and operating a retail business that specializes in selling bicycles, accessories, and related products.

This comprehensive guide will walk you through the step-by-step process of setting up a successful bicycle shop in the Philippines.

Why Start a Bicycle Shop?

When and where to start a bicycle shop, 1. develop a business plan, 2. secure funding, 3. choose a legal structure, 4. find suppliers and inventory, 5. set up your store, 6. obtain necessary permits and licenses, 7. develop a marketing strategy, 8. provide exceptional customer service, specialize in a niche, offer repair and maintenance services, build relationships with local cycling communities, embrace online sales, key takeaways.

Starting a bicycle shop can be an exciting and rewarding venture for passionate entrepreneurs. The rising popularity of cycling as a recreational activity, an eco-friendly transportation option, and a means of improving fitness presents a lucrative opportunity. By catering to the growing demand for bicycles and cycling accessories, you can tap into a thriving market and create a business that aligns with your passion.

Timing and location play crucial roles in the success of your bicycle shop . Analyze market trends, conduct thorough research, and choose the right time to enter the market. Additionally, selecting a strategic location that offers high foot traffic, accessibility, and proximity to cycling communities will increase your chances of attracting customers.

How to Start a Bicycle Shop – Step-by-Step Guide

Outline your vision, mission, target market, competition analysis, and financial projections. A well-crafted business plan serves as your roadmap to success.

Determine the startup costs, including inventory, store setup, permits, and marketing expenses. Explore funding options such as personal savings, loans, or partnerships.

Decide whether to register your business as a sole proprietorship , partnership, or corporation. Consult with a l egal professional to ensure complianc e with local regulations.

Establish relationships with reliable bicycle and accessory suppliers. Consider factors such as quality, variety, pricing, and delivery options when selecting your inventory.

Design an attractive and functional retail space that showcases your products. Invest in eye-catching displays, comfortable seating areas, and well-organized shelves to enhance the customer experience.

Comply with legal requirements by obtaining business permits , tax registrations, and any specific licenses related to operating a bicycle shop.

Utilize various marketing channels to create awareness and attract customers. Leverage online platforms, social media, community partnerships, and local events to reach your target audience effectively.

Train your staff to offer expert advice, guidance, and exceptional customer service. Establish a reputation for reliability, knowledge, and a friendly shopping environment.

Examples and Tips for Success

Consider focusing on a specific segment of the cycling market, such as mountain bikes, road bikes, or vintage bicycles. This specialization can attract passionate customers and differentiate your shop from competitors.

Provide in-house bicycle repair and maintenance services to cater to the needs of your customers. This additional service can generate recurring revenue and foster customer loyalty.

Collaborate with cycling clubs, organizations, and enthusiasts to build a supportive network. Sponsor local events, organize group rides, and create partnerships to establish your shop as a hub for the cycling community.

Expand your reach by creating an e-commerce website or partnering with existing online platforms . Provide customers with the option to browse and purchase your products conveniently.

Starting a bicycle shop in the Philippines in 2023 requires careful planning, market analysis, and strategic execution. By following this comprehensive guide, you can establish a thriving business that caters to the growing demand for bicycles and accessories. Remember to focus on exceptional customer service, build relationships within the cycling community, and adapt to the changing landscape of online sales. Start your entrepreneurial journey today and join the vibrant world of bicycle retail.

Start a Fitness Center in the Philippines: Your Ultimate Guide to Success

Streamline workforce management with hr time and attendance solutions.

Allan Martinez

Related posts, how to start a bakery business in the philippines , how to start a piggery business , how to start a landscaping business in the philippines , launching your own stationery store in the philippines , is a food cart business worth the investment , how to start a tutorial center , leave a reply cancel reply.

You must be logged in to post a comment.

Unlocking the Benefits of Internet Banking in the Philippines 

Unlocking the potential of free email domains , exploring sample collection letters , exploring time card samples , understanding sales funnel templates: a blueprint for effective marketing , creating an inviting and functional space , exploring free job posting sites , exploring types of pos systems , exploring customer service programs , exploring storefront signs , understanding backpay calculator , unveiling the laughter , crafting comprehensive content , understanding payroll computation , understanding pos in business , exploring different types of light fixtures , optimizing pricing strategies with a selling price calculator , exploring quickbooks enterprise pricing , enhancing business operations with pos inventory systems , unveiling effective marketing materials .

Username or Email Address

Remember Me

Registration confirmation will be emailed to you.

Bicycle Shop Business Plan Template

Written by Dave Lavinsky

Bicycle Shop Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their bicycle shops. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a bicycle shop business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Bicycle Shop Business Plan?

A business plan provides a snapshot of your bicycle shop as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Bicycle Shop

If you’re looking to start a bicycle shop or grow your existing bicycle  shop, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your bicycle shop to improve your chances of success. Your bicycle shop business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Bicycle Shops

With regards to funding, the main sources of funding for a bicycle shop are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for bicycle shop companies.

Finish Your Business Plan Today!

How to write a business plan for a bicycle shop.

If you want to start a bicycle shop or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your bicycle shop business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of bicycle shop you are running and the status. For example, are you a startup, do you have a bicycle shop that you would like to grow, or are you operating a chain of bicycle shops?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the bicycle shop industry.
• Discuss the type of bicycle shop you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of bicycle shop you are operating.

For example, you might specialize in one of the following types of bicycle shops:

• Custom bicycle shop: This type of bicycle shop specializes in designing and building custom bicycles for customers.
• Full-service bicycle shop: This type of business sells a wide range of bicycles, parts, and accessories as well as providing services such as bicycle maintenance and repair.
• Specialty bicycle shop: This type of business specializes in  a particular type of bicycle such as mountain bikes, tandem bicycles, unicycles, or racing bicylces.

In addition to explaining the type of bicycle shop you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the number of bicycles sold, reaching $X amount in revenues, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the bicycle shop industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the bicycle shop industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your bicycle shop business plan:

• How big is the bicycle shop industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your bicycle shop? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your bicycle shop business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of bicycle shop you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Bicycle Shop Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other bicycle shops.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of sports shops, do-it-yourself bicycle repair tutorials, or big box retailers that sell bicycles. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of bicycle shop are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you make it easier for customers to acquire your product or service?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a bicycle shop business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of bicycle  shop that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide bicycle repair services, custom builds, or bicycle accessories?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your bicycle  shop. Document where your company is situated and mention how the site will impact your success. For example, is your bicycle  shop located in a busy retail district, a business district, a standalone store, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your bicycle shop marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your bicycle  shop, including answering calls, greeting customers, cleaning the shop, collecting payments, and organizing inventory, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your bicycle  shop to a new city.  

Management Team

To demonstrate your bicycle shop’s potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing bicycle shops. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a bicycle shop or successfully running a small bicycle repair operation.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you employ 3 sales associates, and will each associate sell 10 bicycles per day? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your bicycle shop, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a bicycle shop:

• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your bicycles shop location lease or a list of brands you carry.  

Writing a business plan for your bicycle shop is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the bicycle shop industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful bicycle shop.  

Bicycle Shop Business Plan Template FAQs

What is the easiest way to complete my bicycle shop business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your bicycle shop business plan.

How Do You Start a Bicycle Shop Business?

Starting a bicycle shop business is easy with these 14 steps:

• Choose the Name for Your Bicycle Shop Business
• Create Your Bicycle Shop Business Plan
• Choose the Legal Structure for Your Bicycle Shop Business
• Secure Startup Funding for Bicycle Shop Business (If Needed)
• Secure a Location for Your Business
• Register Your Bicycle Shop Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Bicycle Shop Business
• Buy or Lease the Right Bicycle Shop Business Equipment
• Develop Your Bicycle Shop Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Bicycle Shop Business
• Open for Business

Don’t you wish there was a faster, easier way to finish your Bicycle Shop business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan professional services can help you create a winning business.

Other Helpful Business Plan Articles & Templates

Bike Shop Business Plan: Forging a Strategic Path to Success

• by Iskouhie Poladian
• December 19, 2023

In the biking realm, where trends continuously evolve and customer demands shift, having a clear plan of action for your business is really important. This guide on an electric bike business plan illuminates the steps and tools crucial to ensure profitability, sustainability, and success in the cycling industry. Ensure you’re well-prepared for the journey ahead.

Significance of a Well-Structured Bike Shop Business Plan in the Industry and Its Role in Guiding Success

In the ever-evolving world of entrepreneurship, the significance of a well-structured bike shop business plan cannot be overstated.  The World Bank’s Entrepreneurship Survey and database  underscores the rapid emergence of new businesses year after year. However, the harsh reality is that only a fraction of these enterprises stand the test of time.

One of the main reasons cited across various studies is the “ lack of business planning .” Launching a business without a plan is like taking a long journey in a dense forest without a map. 

Considering the bicycle industry, which thrives on innovation, adaptability, and ever-shifting consumer demands, having a solid business plan becomes even more imperative. A business plan serves as a guiding light, illuminating the path forward, enabling bike shop owners to:

• Set Clear Objectives

A comprehensive business plan establishes clear objectives, providing both short-term and long-term direction. This foresight is crucial in industries like biking, which might face  seasonal demands  or trends.

• Optimize Resource Allocation

Bike shops, like all businesses, don’t have infinite resources. A well-structured business plan ensures  optimal resource allocation , be it for inventory management,  marketing campaigns , or staff recruitment.

• Enhance Viability

For bike shops, translating a concept into reality might mean launching a new product line or diversifying into bike maintenance and services. A business plan serves as a blueprint for such initiatives.

• Facilitate Decision-making

When faced with challenges like choosing the right supplier,  determining pricing strategies , or selecting an ideal shop location, a business plan provides invaluable insights, helping in informed decision-making.

• Attract Investors

As the biking industry continues to evolve, opportunities for expansion or diversification can arise. A robust business plan can woo potential investors, showcasing the shop’s vision, profitability, and prospects.

Studies by renowned institutions and researchers, including  Kraus and Schwarz  and  Chwolka and Raith  have reinforced the value of meticulous planning in  driving business success . For instance, pre-start-up planning has been linked to superior business performance. 

Moreover, the mere perception of business planning’s value can boost entrepreneur motivation, clarify goals, and ensure effective resource allocation.

Analyzing Market Trends and Customer Preferences

Analyzing market trends, customer preferences, and competition is vital in the biking industry. Why? The biking landscape is dynamic, with ever-evolving trends and shifting  consumer priorities , making a thorough market analysis indispensable. Just imagine navigating without a roadmap. Would you succeed? Probably not. 

Similarly, without an understanding of your customers, you’re pedaling in the dark. Are your bikers the adrenaline-seeking professionals or the leisure weekend riders? What’s their spending comfort zone? These insights will empower you to refine your product lines and sharpen your marketing tactics. So if you’re looking into how to start a bike shop, these considerations are fundamental.

Now, let’s switch gears to competition. In the expansive biking field, understanding competitors isn’t just beneficial – it’s essential. It’s not just about knowing who they are; it’s about delving into their  core strengths and vulnerabilities . Maybe one competitor shines with sleek designs, another with unbeatable performance, or perhaps one offers unmatched after-sales support. 

A SWOT analysis here can illuminate paths less traveled, highlighting potential business accelerators. Any business plan for a bike shop would stress the importance of such competitor understanding.

Lastly, staying in the lead means spotting  emerging trends . Be it avant-garde bike designs, breakthrough technologies, or the surge towards green and sustainable cycles, the biking industry is ever-pivoting so your electric bike business plan should not fall behind. By regularly updating market analyses, businesses can not only keep pace but potentially set the pace, driving the industry forward.

Focus on Your Unique Selling Proposition (USP)

After delving into market trends, customer inclinations, and sizing up the competition in the biking industry, the crucial next step in your business plan for bike shop is defining your Unique Selling Proposition (USP). But  what exactly is a USP ? It’s the golden thread that differentiates your offerings, making them not just products or services but distinct solutions that cater specifically to your target market.

A USP is more than just a marketing buzzword; it’s the backbone of your brand’s value proposition. It narrows down the essence of what makes your bike shop stand out amidst a sea of competitors. If you’re wondering how to start a bike shop, understanding the importance of a well-defined USP becomes your beacon, directing customers precisely to what they’ve been searching for.

To illustrate the power of an impactful USP, consider these renowned brands:

Patagonia asserts, “We’re In Business to Save Our Home Planet.” This is not merely about apparel but a commitment to a higher purpose.

Tiffany & Co. elegantly states, “The right one is worth waiting for.” This positions their products as more than just jewelry – they’re lifelong treasures.

Best Buy confidently challenges with, “Find a lower price and we’ll match it,” underscoring their unrivaled value proposition.

Think about your USP when drafting your electric bike business plan. Maybe your USP revolves around providing the most sustainable biking solutions or guaranteeing the widest range of electric bikes. It’s vital to remember that it’s not about  being everything to everyone  but being the perfect solution for someone. 

Your bikes, accessories, and services are undoubtedly crucial, but it’s your USP that will carve out a distinctive space for you in the market. Make it compelling, make it resonate, and most importantly, make it genuinely represent what your bike shop stands for.

The Importance of Branding for Your Ebike Business 

Branding and positioning form the very foundation upon which successful bike shops are built. These elements answer the vital questions: 

• Who are you in the market? 
• What do you represent? 
• Why should consumers choose you over others? 

Given the biking industry’s vibrant competition and the ever-evolving tastes of cyclists, establishing a strong, unique brand is non-negotiable.

Branding is the culmination of efforts to craft a distinct  image and perception  for your bike shop in the minds of consumers. It’s more than just a name, logo, or color scheme. It’s the emotional and psychological relationship you establish with your customers.

Positioning Your Bike Shop Right

Positioning  is an instrumental facet of branding. It refers to the unique spot you aspire to occupy in the consumer’s mind, determined through a strategic brand positioning approach. Why is this so important? Because it’s what sets you apart in the market.

Consider this : In an age where consumers are overwhelmed with choices, they crave simplicity. Your brand positioning clarifies their options. Instead of being another bike shop among hundreds, effective branding and positioning make you THE bike shop for a specific set of cyclists. They ensure you’re  not  just selling bicycles, but an experience, a solution, and a promise.

Within the vast spectrum of the bicycle industry, several brands have skillfully articulated their unique positioning, creating lasting impressions. Take, for instance, Brompton Bicycles, the archetype of  urban efficiency  with its signature foldable design catering to city commuters. 

Then there’s Trek Bicycles, championing environmental responsibility with their “One World, Two Wheels” campaign, underscoring the eco-benefits of cycling. 

Brands like Specialized Bicycles resonate with enthusiasts, emphasizing technological advancements and top-tier design, while Canyon Bicycles brilliantly leverage its direct-to-consumer model to offer premium bikes at unbeatable value. 

On the  innovative  front, Peloton seamlessly merges fitness with technology, selling not just a stationary bike but an immersive lifestyle experience. Lastly, VanMoof has revolutionized urban e-biking, integrating cutting-edge anti-theft technology, and positioning itself as the essential urban e-bike solution. 

These examples vividly illustrate how distinctive positioning can illuminate a brand in a densely packed market.

In a nutshell, if you’re trying to figure out  how to start a bike shop , remember this: A business plan for bike shop without clear branding and positioning is like a bicycle without a direction – you may move, but you’ll lack purpose and destination.

How to Market Your Ebike Business

Talking about  marketing channels . They function as the veins and arteries of your bike shop’s promotional campaigns, ensuring that your brand message and offerings reach the intended audience. 

Initially, marketing was largely limited to traditional pathways like billboards. However, the digital age has dramatically transformed this landscape as well. Nowadays marketing channels are a diverse blend of digital and traditional mediums, from SEO, content marketing, and influencer partnerships to conventional print and mass media promotions. 

The choice of channel hinges on factors like  target demographics , budget, and the nature of the message. The correct blend ensures not only brand visibility but also a deeper connection with potential customers, nurturing leads, and fostering brand loyalty. 

As the bike market becomes increasingly digital, understanding and leveraging these channels is as vital as the wheels on a bicycle. They ensure that your brand message travels swiftly and effectively to those who need to hear it.

Setting the Best Pricing Strategy

Pricing can make or break your bike shop business. Set your rate too low, and you’re just gifting profit away. Swing too high, and you’ll watch potential hallmark sales slip right past. The sweet spot in pricing? It’s all about  finding that strategy  that fits like a glove to your company’s narrative.

Understand this: a customer’s willingness to part with their money isn’t about  your  costs. It’s tied to how much they value what they’re getting. 

Dive into the  five strategies : cost-plus pricing has you tallying costs and adding a neat markup. Competitive pricing? It’s a game of keeping an eye on the competition’s tag. Price skimming starts high and mellows as time ticks, while penetration pricing is all about entering with a bang with low prices and then tuning it up. And then there’s value-based pricing, setting your price to the beat of the  customer’s perceived value .

Pricing is less a math problem and more an art. When you peg that price, it’s not about what you want, but what your customer sees. They have this mental range—a floor, where your costs lie, and a ceiling, their value threshold. Find that comfortable middle where they nod in agreement.

When steering towards that middle, think about operational expenses, stock levels, delivery fees, market whims, your unique edge, and how the customer feels about your price. After all, picking the right pricing strategy is more than crunching numbers—it’s about  resonating  with your market’s heart and soul.

Bike Shop Business Plan: Sales

A sales plan, distinct from the overarching business plan, forms the execution blueprint for your sales ambitions. It carefully charts out the strategies and actions to realize the revenue objectives you’ve set. 

By emphasizing realistic targets, tracking tools, future anticipations, commission frameworks, and pertinent training modules, it provides an  essential framework  for the sales team. 

Essentially, while a business plan for bike shop articulates the ‘what’, the sales plan explains  how  to start a bike shop that’s profitable. It elucidates the steps the sales department will adopt to realize broader company goals. 

For instance, if your business plan aims to sell a thousand e-bikes within the first year, the sales plan outlines the steps to achieve this goal. Being a critical tool, it not only helps in driving sales but also helps in risk assessment. The sales plan is essential in ensuring the growth of an organization and aligning the sales representatives with the  company’s priorities .

Sales Tactics, Promotions, and Customer Retention Strategies

For a thriving bike shop, it’s imperative to have an effective sales strategy. Begin with  Consultative Selling . Consider every customer as unique and centralize your selling approach around their needs. Initiate conversations with basic questions like “Where do you live?” or “Where do you work?” This not only  builds rapport  but provides clues about their lifestyle

Dive deeper by asking about their biking goals, their current bike’s limitations, or any specific adventures they’ve envisioned.

Next, implement a Three-Step Consultation. 

• First, initiate with open-ended questions. 
• Then, engage in a deeper consultation, inquiring about their biking preferences, needs, and any concerns. 
• Lastly, based on the insights gathered, walk them through a curated selection of bikes and accessories that align with their needs.

An emotional connection can also boost sales. Sell the experience, not just the bike. If someone is eyeing a commuter bike, share stories of others who’ve taken similar models on extraordinary journeys, tapping into the aspirational aspect of the purchase.

Moreover, always have a consistent  Upselling Strategy . While selling a primary product, like a bike, be ready to recommend complementary items. If a customer is keen on a bike for nightly commuting, suggest dynamo lights or hi-vis gear. By tailoring your upselling based on the customer’s needs, it feels less like a sales pitch and more like genuine advice.

By integrating these tactics into your business plan for bike shop, you can provide valuable, personalized service, driving both sales and customer loyalty.

Sales Promotions

Sales promotions play an essential role in driving the commercial success of any venture, particularly when working on a business plan for a bike shop. Recognized as a part of the promotional mix, they have an intense focus on delivering immediate and compelling results:

Capturing Attention

In the broad market of bicycles, from traditional to electric bikes, sales promotions act as your torch. They instantly increase your product’s exposure, ensuring your bikes stand out from the crowd.

Stimulating Demand

If you’re pondering on how to start a bike shop, know that promotions have the power to not just capture attention but also stimulate the desire for a purchase, nudging a customer to invest in a new bicycle.

Short-Term Sales Boost

Limited-time offers, when paired with a well-executed marketing campaign, create a sense of urgency. This strategy drives immediate sales and can also assist in offloading excess stock, be it mountain bikes, road bikes, or electric variants.

While sales promotions can be directed at either customers or trade entities like  distributors and retailers , the essence remains the same – providing an immediate value proposition to those involved in the bike industry.

Attracting New Customers

A standout deal on a new electric bike or a promotion on accessories can reel in someone who might have been unsure about upgrading their ride.

Encouraging Loyalty & Repeat Purchases

By offering exclusive deals to existing customers, such as those who’ve previously purchased from your shop, you’re reinforcing their decision to choose you over competitors.

Market Insights

Responses to promotions can offer valuable insights into customer preferences, from the type of bike they prefer to the accessories they find essential.

Reacting to Market Opportunities

Whether it’s gearing up for a biking season or launching a new line of electric bikes, promotions can be tailored to tap into these market trends.

Inventory Management

Got an excess of a particular bike model? Special promotions can ensure they’re sold faster, mitigating potential losses.

Customer Retention Strategies

While attracting new cycling enthusiasts is essential,  retaining  seasoned riders is equally, if not more, important. Customer retention in the bike world focuses on building and sustaining a loyal community of cyclists, ensuring they don’t pedal over to competitors.

Remember, a cyclist who’s satisfied with their purchase and the service they received not only remains loyal but often becomes an advocate driving more customers to your door.

The Financial Aspects of a Bike Shop Business Plan

Sales forecasts, revenue projections, cost estimation, and budget planning.

Riding ahead in the bike industry means knowing your numbers. Drawing insights from past sales data, shops and manufacturers alike can anticipate the demand for various bicycle models, accessories, and even repair services, tailoring their stock and offerings accordingly.

Revenue projections, on the other hand, delve deeper. By analyzing historical sales trends, coupled with an understanding of  current market dynamics  – from the rise of e-bikes to the latest cycling gear innovations – these projections will help your bike business gauge its potential earnings and adjust its strategies.

When launching a new bicycle model or introducing novel accessories, cost estimation comes into the spotlight. It involves a thorough  assessment of expenses and resources , ensuring that every facet of the project, from design to distribution, is financially feasible and aligned with the industry’s dynamics.

Not to forget, budget planning is the linchpin that holds everything together. For bike shops and manufacturers, budgets don’t just track revenues and expenses. They also offer invaluable insights, highlighting periods of peak sales (like summer months or holiday seasons), identifying investment opportunities (such as new tech or training programs), and ensuring your business plan for bike shop remains agile and adaptable in a competitive market.

Break-Even Analysis, Profit and Loss Statements and Cashflow Forecasts

Another critical tool in financial planning is the break-even analysis. This accounting method pinpoints the exact moment when your bike shop becomes profitable by offsetting production costs. In simpler terms, it answers how many bikes or services you need to sell before  surpassing overheads  and beginning to  make a profit . If you’re wondering how to start a bike shop, this is a fundamental concept to grasp.

To keep track of your company’s financial health, the profit and loss (P&L) statement is indispensable. Offering a summarized view of revenues, costs, and expenses over a certain period, the P&L statement stands alongside other essential reports like the balance sheet and cashflow statement, all of which are integral for businesses operating in a dynamic sector like the bike industry.

Lastly, predicting cash movement is crucial. Cashflow forecasting, or estimating the inflow and outflow of cash over a span, can be a short-term strategy for the upcoming 30 days, shedding light on immediate funding requirements or surpluses. For bike businesses, such forecasting ensures optimal financial management, facilitating smooth operations even in the face of unforeseen industry changes.

Navigating the complex landscape of the bike industry requires a decent business plan for bike shop. The significance of a detailed plan not only anchors a shop’s vision but also propels it to success amidst the ever-evolving entrepreneurial challenges.

Iskouhie Poladian

Iskouhi is presently engaged in pursuing her Master's degree in Innovation and Entrepreneurship. Additionally, she derives great pleasure from composing articles on various innovative products and topics.

Related Articles

7 Major Healthcare Trends Shaping the Industry

• by Dikran Seferian
• April 17, 2024

Ecommerce Market Research in 2024: Step-by-Step Guide

• by Alice Ananian
• April 8, 2024

Upmetrics AI Assistant: Simplifying Business Planning through AI-Powered Insights. Learn How

• AI ASSISTANTS

Upmetrics AI Your go-to AI-powered business assistant

AI Writing Assist Write, translate, and refine your text with AI

AI Financial Assist Automated forecasts and AI recommendations

• TOP FEATURES

AI Business Plan Generator Create business plans faster with AI

Financial Forecasting Make accurate financial forecasts faster

Strategic Planning Develop actionable strategic plans on-the-go

AI Pitch Deck Generator Use AI to generate your investor deck

See how it works  →

AI-powered business planning software

Very useful business plan software connected to AI. Saved a lot of time, money and energy. Their team is highly skilled and always here to help.

- Julien López

• BY USE CASE

Starting & Launching a Business Plan your business for launch and success

Validate Your Business Idea Discover the potential of your business idea

Secure Funding, Loans, Grants Create plans that get you funded

Business Consultant & Advisors Plan seamlessly with your team members and clients

Business Schools & Educators Simplify business plan education for students

Students & Learners Your e-tutor for business planning

• Sample Plans
• WHY UPMETRICS?

Reviews See why customers love Upmetrics

Customer Success Stories Read our customer success stories

Blogs Latest business planning tips and strategies

Strategic Planning Templates Ready-to-use strategic plan templates

Business Plan Course A step-by-step business planning course

Ebooks & Guides A free resource hub on business planning

Business Tools Free business tools to help you grow

• Sample Business Plans
• Retail, Consumers & E-commerce

Bicycle Shop Business Plan

High demand, spreading awareness regarding fitness, and for environmental reasons, people are preferring bicycles. Thus, starting a bicycle shop can be a lucrative and rewarding profession.

Anyone can start a new business, but you need a detailed business plan when it comes to raising funding, applying for loans, and scaling it like a pro!

Need help writing a business plan for your bicycle shop? You’re at the right place. Our bicycle shop business plan template will help you get started.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write A Bicycle Shop Business Plan?

Writing a bicycle shop business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Products of bicycle shop:.

Highlight the bicycle shop products you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information:

Describe what kind of bicycle shop company you run and the name of it. You may specialize in one of the following bicycle businesses:

• Full-service bicycle shop
• Specialized bicycle shop
• Bicycle rental shop
• Custom bike shop
• Online bike shop
• Bike boutique
• Describe the legal structure of your bicycle shop, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established bicycle shop, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your retail bicycle shop business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products of Your Bicycle Shop

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your products:

Mention the bicycle shop products your business will offer. This list may include products like,

• Types of bicycles such as road bikes, mountain bikes, etc
• Bicycle accessories like helmets, lights, locks, pumps, tools, etc
• Bicycle components and parts
• Cycling apparel and gear
• Maintenance repair and products

Describe each product:

Provide a detailed description of each product you provide, including the types of that particular product.

Quality measures

Additional services.

In short, this section of your bicycle shop plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your bicycle shop business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your bicycle shop, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & machinery:.

Include the list of equipment and machinery required for the bicycle shop, such as bicycle repair stand, POS system, bike wash stations, bicycle display stands & racks, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your bicycle shop’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your bicycle shop, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your bicycle shop business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample bicycle shop business plan will provide an idea for writing a successful bicycle shop plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our bicycle shop business plan pdf .

Related Posts

Toy Store Business Plan

Bike Shop Business Plan

Marketing Strategies Process Guide

Writing Customer Analysis in Business Plan

How To Write A Business Plan for Startup

Importance of Right Business Location

Frequently asked questions, why do you need a bicycle shop business plan.

A business plan is an essential tool for anyone looking to start or run a successful bicycle shop. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your bicycle shop.

How to get funding for your bicycle shop?

There are several ways to get funding for your bicycle shop, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your bicycle shop?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your bicycle shop business plan and outline your vision as you have in your mind.

What is the easiest way to write your bicycle shop business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any bicycle shop business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How do I write a good market analysis in a bicycle shop business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry. We can categorize the process of writing a good market analysis section into the following steps:

• Stating the objective of your market analysis—e.g., investor funding.
• Industry study—market size, growth potential, market trends, etc.
• Identifying target market—based on user behavior and demographics.
• Analyzing direct and indirect competitors.
• Calculating market share—understanding TAM, SAM, and SOM.
• Knowing regulations and restrictions
• Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

How detailed should the financial projections be in my bicycle shop business plan?

The level of detail of the financial projections of your bicycle shop may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a complete view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

What key components should a bicycle shop business plan include?

The following are the key components your bicycle shop business plan must include:

• Executive summary
• Business Overview
• Market Analysis
• Products and services
• Sales and marketing strategies
• Operations plan
• Management team
• Financial plan

Can a good bicycle shop business plan help me secure funding?

Indeed. A well-crafted bicycle shop will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

What's the importance of a marketing strategy in a bicycle shop business plan?

Marketing strategy is a key component of your bicycle shop business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having an impactful marketing strategy:

• It provides your business an edge over your competitors.
• It helps investors better understand your business and growth potential.
• It helps you develop products with the best profit potential.
• It helps you set accurate pricing for your products or services.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Popular Templates

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

Item added to your cart

How to write a business plan for your bicycle shop.

Starting a bicycle shop is a great idea because it is a growing industry that provides an excellent opportunity to tap into a large customer base.

Additionally, the low overhead costs associated with running a bicycle shop make it a very attractive option for entrepreneurs.

Nevertheless, the first step is to develop a business plan.

Creating a business plan is a critical step before starting a new project, such as a bicycle shop. It provides a roadmap for success and helps identify potential issues before they arise.

In short, a good business plan will help ensure the profitability of your bicycle shop .

What key details need to be in the business plan for a bicycle shop? How do you organize the structure? What are the recommended financial benchmarks to incorporate? How can I write a business plan in the most efficient way?

Please, find comprehensive answers to all these questions below.

One last thing: it's not mandatory to start your business plan from scratch.

You can download our professional business plan for a bicycle shop and tailor it to suit your requirements.

Building a business plan for a bicycle shop

Should you write a business plan for your bicycle shop.

Yes, you should write a business plan for your bicycle shop.

Drafting a viable business plan will help to:

• learn about the bicycle shop market
• familiarize yourself with the industry's evolving landscape
• pinpoint what makes a bicycle shop thriving
• understand the cycling needs, bike preferences, and accessories desired by customers
• come up with a winning value proposition for your bike retailer
• study competitor distribution channels
• find competitive advantages for your bicycle shop
• find a business model that will make you profitable
• formulate an airtight strategy to maximize business growth
• evaluate risks associated with operating a bicycle shop, including product liability, theft prevention, and changing cycling trends

Our team has drafted a business plan for a bicycle shop that is designed to make it easier for you to achieve all the elements listed.

How to outline a business plan for a bicycle shop?

A business plan is full of important facts, numbers, and indicators. There should be a clear structure, so it does not look messy.

When we built and designed our business plan for a bicycle shop , we made sure it had a proper structure.

The business plan has 5 sections (Opportunity, Project, Market Research, Strategy and Finances).

1. Market Opportunity

The first section is titled "Market Opportunity."

This section offers comprehensive insights and market analysis for bicycle shopes, including bike trends, customer preferences, maintenance services, and marketing strategies, guiding entrepreneurs in establishing successful and thriving bicycle retail ventures.

This section is revamped twice a tear to make sure data is up to date.

2. Project Presentation

In the "Project" section, you can describe your bicycle shop, including the range of bicycles you offer (e.g., road bikes, mountain bikes, e-bikes), accessories, maintenance and repair services, knowledgeable staff, community engagement initiatives, and the unique value proposition that promotes cycling as a sustainable and enjoyable mode of transportation.

Also include a self-introduction at the end of this section.

Discuss your love for bicycles, your knowledge of different types and brands, and how you plan to create an exceptional bicycle shop experience for cycling enthusiasts. Highlight your ability to offer a diverse selection of bicycles and accessories, your expertise in bike maintenance and repairs, and your commitment to providing personalized customer service that supports customers' cycling adventures.

We've written descriptions for you in advance. Feel free to tailor them to match your business idea precisely.

3. Market Research

The third part is the "Market Research" section.

In this section, you will find a detailed market segmentation analysis for your bicycle shop.

It includes a presentation of other bicycle shops in the area that will be competing with you. Your shop's unique bike selections and competitive advantages are also highlighted. A customized SWOT analysis is included.

4. Strategy

The "Strategy" section encompasses a complete growth plan, delineating the necessary actions and initiatives to make your bicycle shop exceptionally profitable.

You will also find in this section a comprehensive marketing plan, a risk management strategy and a Business Model Canvas (already filled).

5. Finances

Lastly, the "Finances" section is dedicated to presenting all the financial data, tables, and diagrams for your project.

How to make the Executive Summary for a bicycle shop?

The Executive Summary offers a summarized introduction to the business plan of your bicycle shop.

It should be short, clear and concise. Only the key elements of your business plans should be reflected on this document.

This is the opening statement that the financial institution will read first when you show them your business plan. It should make them interested and want to read the rest of the plan.

In the Executive Summary of your bicycle shop, provide responses to the following: what products and services does your bicycle shop offer? who is your target audience? are there other bicycle shops nearby? what funding do you need?

How to do the market analysis for a bicycle shop?

Conducting a market study for your bicycle shop enables you to grasp external factors like customer demands for bicycles and cycling accessories, competition within the cycling industry, and emerging trends in transportation alternatives.

By conducting an extensive market analysis, a bicycle shop can understand consumer preferences, offer a diverse selection of bicycles and accessories, optimize pricing strategies, and execute targeted marketing campaigns, ultimately leading to a loyal customer base, increased sales, and a prominent presence in the local cycling market.

Here is what you can expect to find in the "Market Research" section of our business plan for a bicycle shop :

• interesting data points and market insights about bicycle shops, including cycling trends, bike sales, and the impact of e-bikes on the industry
• a list of potential audiences for a bicycle shop
• the competitive research
• the potential competitive advantages for a bicycle shop

The key points of the business plan for a bicycle shop

What's the business model of a bicycle shop, business model of a bicycle shop.

A bicycle shop's model centers around selling bicycles, accessories, and providing related services such as repairs and maintenance. Revenue is generated through product sales, repair services, and potentially bike rentals or guided tours.

The business model focuses on offering a diverse range of bicycles and accessories, providing knowledgeable staff for customer assistance, organizing community rides or events, maintaining expertise in bike repairs and maintenance, and creating a welcoming and inclusive environment for cycling enthusiasts.

Success depends on selecting popular and high-quality brands, staying updated with industry trends, fostering strong relationships with suppliers, and offering exceptional customer service and expertise.

Business model vs Business plan

Keep in mind that "business plan" and "business model" refer to different concepts.

A business model outlines the way a company creates value, generates revenue, and operates.

In a business plan, you adopt the Business Model Canvas as a straightforward tool to showcase the fundamental elements of your business model.

Rest assured, we offer a completed Business Model Canvas in business plan for a bicycle shop .

How do you identify the market segments of a bicycle shop?

Segmenting the market for your bicycle shop involves dividing your potential customers into different groups based on their cycling preferences, demographics, and needs.

These categories may include factors such as road cyclists, mountain bikers, urban commuters, or families looking for recreational bikes.

By segmenting your market, you can offer a range of bicycles, accessories, and services tailored to each segment's specific requirements. For example, you might provide high-performance road bikes and professional gear for avid cyclists, sturdy and versatile mountain bikes for off-road enthusiasts, or practical and reliable commuter bikes for urban dwellers.

Market segmentation allows you to effectively target your marketing efforts, provide personalized recommendations, and create a diverse product selection that caters to the unique needs of each customer segment.

In the business plan for a bicycle shop , you will find a comprehensive market segmentation that will help you identify your potential customers.

How to conduct a competitor analysis for a bicycle shop?

It's clear that you won't be the only bicycle shop in your area. There are other shops catering to cycling enthusiasts and offering bikes and accessories.

Make sure to thoroughly analyze your competitors as part of your business plan by listing their attributes, strengths, and weaknesses.

Pay attention to their weaknesses (such as limited product variety, inadequate customer service, or ineffective repair services).

Why is it important to address these concerns? Because these weaknesses can result in customer dissatisfaction when it comes to bicycle shops.

By focusing on these areas, you can offer a wide range of quality bikes, provide expert advice, and create a welcoming environment, setting your bicycle shop apart from the competition and appealing to cycling enthusiasts.

It's what we call competitive advantages—strengthening them helps your business stand out from the rest.

Here are some examples of competitive advantages for a bicycle shop: wide selection of high-quality bicycles and accessories, knowledgeable and friendly staff, expert bike maintenance and repair services, competitive pricing, community engagement and cycling events, customer loyalty programs.

How to draft a SWOT analysis for a bike shop?

A SWOT analysis can help identify potential opportunities and threats to help inform the development of a successful business plan for a bicycle shop.

As you can guess, there is indeed a completed and editable SWOT matrix in our business plan for a bicycle shop

The strengths for a bicycle shop

When we talk about the "S" in SWOT, we mean Strengths, which are the project's positive attributes or advantages.

For a bicycle shop, strengths could include knowledgeable staff, a wide selection of bicycles, excellent customer service, and competitive pricing.

The weaknesses for a bicycle shop

W represents Weaknesses, highlighting the areas or aspects of the project that need attention.

For a bicycle shop, potential weaknesses could be limited access to customers, limited inventory, lack of financing options, and limited marketing resources.

The opportunities for a bicycle shop

O represents Opportunities, which are the external factors or circumstances that can benefit the project.

In the case of a bicycle shop, potential opportunities could include offering e-bike sales, providing bike maintenance services, creating an online store, and offering bike rentals.

The threats for a bicycle shop

T represents Threats in SWOT, highlighting the external risks or vulnerabilities that the project may face.

How to elaborate a marketing strategy for a bike shop?

A marketing strategy is an integral part of a business plan as it outlines how a business will acquire customers and achieve sales objectives.

A bicycle shop can appeal to cycling enthusiasts and commuters by developing an effective marketing approach that emphasizes the shop's wide selection of bicycles, knowledgeable staff, and quality cycling accessories.

Cycling enthusiasts won't shop at your bike shop without effective marketing; showcasing your quality bikes, accessories, and expert advice is crucial.

Are you implementing effective marketing strategies for your bike shop? Consider organizing cycling events or group rides, collaborating with local biking clubs or organizations, and utilizing social media platforms to showcase the latest bike models and accessories.

Don't worry if you don't have many ideas for the marketing strategy of your project.

How to build a solid financial plan for a bike shop?

A successful business plan requires comprehensive financial data in order to accurately forecast future performance.

When developing your business plan, you'll need to estimate the projected revenue for your bicycle shop.

We need to ensure that this revenue forecast is understandable and intuitive.

Our financial plan for a bicycle shop is user-friendly, providing automated validations that allow you to rectify any assumptions swiftly. This guarantees the creation of credible projections with ease and assurance.

Without a doubt, you will be required to draft a provisional budget for your bicycle shop. Don't forget any expense (we have listed them all in our financial plan !).

The break-even analysis is central in the financial plan as it will tell you whether your bicycle shop will be profitable or not.

• Choosing a selection results in a full page refresh.
• Opens in a new window.

Bike Shop Business Plan [Sample Template]

Home » Business Plans » Automotive Sector

Do you want to start a bike shop and need to write a business plan? If YES, here is a sample bike shop business plan template & feasibility report. There are businesses that someone with little schooling, little training and no serious business background can start. One of such businesses is a bike dealership and repair shop.

The basic things you need to have in place to make success from this type of business are training on how to fix bicycles, a good location, easy access to wholesale supply of bicycles and bicycle spare parts and good customer service skills.

If your shop is located in an area with good human and vehicular traffic, and you have different sizes of bikes from different brands, you may not have to struggle to get people to visit your shop and make purchases and repairs. Below is a sample bike shop business plan template that can help you to successfully write your own with little or no difficulty.

A Sample Bike Shop Business Plan Template

1. industry overview.

Players in the Bicycle Dealership and Repair Shops industry sell new bicycles, bicycle parts and accessories. A good number of bicycle dealership shops also provide repair and maintenance services. So also, those that are only involved in bike repairs and servicing are also part of this industry.

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 a major sector of the economy of the united states of America and they generate over billion annually from more than 16,795 bicycle dealership and repair shops scattered all around the United States of America.

The industry is responsible for the employment of over 114,041 people. Experts project that the industry will grow at a 2.1 percent annual rate between 2014 and 2019. No establishment can boast of having the lion share of the available market in this industry.

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 going forward. 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.

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.

Please note that in the United States of America, depending on the location and size of your bike shop, opening a bicycle shop can cost as much as $350,000, or as little as $10,000.

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 retailing quality bicycles from top brands.

2. Executive Summary

Martins Greene® Bike Shop, Inc. is a registered bicycle dealership and repair shop that will be located in one of the busiest streets in Huntsville – Alabama. We have been able to lease a facility that is big enough to fit into 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 a commercial hub in Huntsville – Alabama.

Martins Greene® Bike 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 from the United States and abroad and also providing bicycle repair and maintenance services. We are set to sell our products and offer our services to a wide range of customers in and around Huntsville – Alabama.

We are aware that there are several bicycle dealership and repair outlets all around Huntsville – Alabama, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to compete with our competitors.

Martins Greene® Bike 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 their numbers grow to. We will ensure that we get our customers involved in the selection of brands that will be in our shops and also when making some business decisions.

Martins Greene® Bike 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 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 and services.

Martins Greene® Bike Shop, Inc. is owned by Martins Greene and his immediate family members. Martins Greene has a Degree in Mechanical Engineering from University of Southern Maine – Portland, with over 15 years’ experience in the bicycle dealership and repair industry, working for some of the leading brands in the United States.

Although the business is launching out with just one outlet in Huntsville – Alabama, but there is a plan to open other outlets and sell franchise all around major cities in the United States and Canada.

3. Our Products and Services

Martins Greene® Bike Shop, Inc. is in the Bicycle Dealership and Repair Shop Industry to service a wide range of clients and of course to make profits, which is why we will ensure we make available a wide range of bicycles and accessories from top manufacturing brands the United States and other countries of the world.

Our product and services offerings are listed below;

• Retailing new bicycles (Mountain bicycles, BMX bicycles, Road bicycles, Hybrid/cross bicycles and other bicycles), bicycle parts and accessories
• Providing bicycle repair and maintenance services

4. Our Mission and Vision Statement

• Our vision is to become one of the leading brands in the bicycle dealership and repair shops industry in Alabama and to establish a one stop bicycle dealership and repair shop in Huntsville – Alabama.
• Our mission is to establish a world – class bicycle dealership and repair shop business that will make available a wide range of bikes and accessories from top bicycle manufacturing brands and also offer top notch bike repair services at affordable prices to the residents of Huntsville – Alabama.

Our Business Structure

Our intention of starting a bicycle dealership and repair shop business is to build a standard outlet in Huntsville – Alabama and other key cities in the United States of America. We will make that we put the right structures 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.

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 Amin Manager

Merchandize Manager

Sales and Marketing Manager

• Accountants/Cashiers
• Sales Agents/Customer Services Executive
• Bike Repair Technicians

5. Job 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
• Creating, communicating, and implementing 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
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

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.
• Defining job positions for recruitment and managing interviewing process
• Carrying out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office activities.

Shop Manager:

• Responsible for managing the daily activities in the bike shop
• Ensures that proper records of bicycles, spare parts and accessories are kept and warehouse does not run out of products
• Ensure that the store facility is in tip top shape and goods are properly arranged and easy to locate
• Control bicycles distribution and supply inventory
• Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Help 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
• Responsible for retailing new 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
• Model demographic information and analyze the volumes of transactional data generated by customer purchases
• Identify, prioritize, and reach out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Document all customer contact and information
• Represent the company in strategic meetings
• Help increase sales and growth for the company

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports
• 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
• Ensuring 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
• 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)
• Make suggestions and encourage purchase of products
• Provide information about warranties, manufacturing specifications, care and maintenance of merchandise and delivery options

Bike Repair Technicians:

• Responsible for providing bicycle repair and maintenance services
• Help in assembling bicycles for clients after purchase
• Handle 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
• Ensure that toiletries and supplies don’t run out of stock
• Handle any other duty as assigned by the store manager.

6. SWOT Analysis

Our plan of starting with just one outlet of our bike shop in Huntsville – Alabama is to test run the business for a period of 4 to 5 years to know if we will invest more money, expand the business and then open other outlets in major towns in Alabama.

We are quite aware that there are several bicycle dealership and repair shops all over Huntsville – Alabama, 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 equipped to confront our threats.

Martins Greene® Bike 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 Martins Greene® Bike Shop, Inc.;

The location of our shop, the business model we will be operating on, 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 Martins Greene® Bike 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 in Huntsville – Alabama and we don’t have the financial capacity to compete with multi – million dollars bicycle dealership and repair outlets when it comes to retailing at a rock bottom prices.

• Opportunities:

The fact that we are going to be operating our bicycle dealership and repair shop in one of the busiest streets in Huntsville – Alabama, coupled with the raising number of people switching to cycling as against driving provide us with unlimited opportunities to sell our bicycles to a large number of individuals.

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.

7. MARKET ANALYSIS

• Market Trends

The Bicycle Dealership and Repair Shop Industry depends on strong consumer spending to spur demand for industry products. The Consumer Confidence Index (CCI) measures consumers’ feelings about present and future economic conditions.

Consumers base their decisions to purchase discretionary items such as bicycles on changes in disposable income and their ability to maintain current incomes in the future. The CCI is expected to decrease in 2019, representing a potential threat to the industry.

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.

Bicycles are used for recreation and sporting activities, including cycling competitions. As a result, an increase in sports participation can raise demand for new bicycles. Participation in sports is expected to increase in 2019, representing a potential opportunity for the industry.

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 reach out to a larger market far beyond the areas where a physical shop is located.

8. Our Target Market

The bicycle dealership and repair shops industry has a wide range of customers; every individual and corporate organization (cyclist clubs and bicycle courier services) 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 bike shop to service the residents of Huntsville – Alabama. 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;

• Cyclist clubs
• Bicycle courier services companies
• Sportsmen and Sportswomen

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 stiff competition and we are prepared to compete favorably with other leading bicycle dealership and repair shops in Huntsville – Alabama and throughout the United States and Canada.

Martins Greene® Bike Shop, Inc. is launching a standard one stop bicycle dealership and repair shop that will indeed become the preferred choice of residents of Huntsville – Alabama 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 Huntsville – Alabama. One thing is certain; we will ensure that we have a wide range of bicycles and bicycle spare parts and accessories from leading manufacturers available in our shop at all times.

One of our business goals is to make Martins Greene® Bike Shop, Inc. a one stop bicycle dealership and repair shop for both individuals 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 in the industry meaning that they will be more than willing to build the business with us and help deliver our goals and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Martins Greene® Bike Shop, Inc. is in business to retail a wide range of bicycles and bicycle spare parts and accessories and offer repair services to the residents of Huntsville – Alabama 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 ensure that we achieve or business goals and objectives. Martins Greene® Bike Shop, Inc. will generate income by;

• Retailing new bicycles (Mountain bicycles, BMX bicycle, Road bicycles, Hybrid/cross bicycles and other bicycles), bicycle parts and accessories
• Providing bicycle repair and maintenance services.

10. Sales Forecast

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, 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 for the business.

We are well positioned to take on the available market in Huntsville – Alabama and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.

We have been able to examine the Bicycle Dealership and Repair Shops Industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Martins Greene® Bike 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 (FY1): $290,000
• Second Fiscal Year (FY2): $450,000
• Third Fiscal Year (FY3): $700,000

N.B: This projection was 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 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 Martins Greene® Bike Shop, Inc. we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for residents of Huntsville – Alabama.

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 Huntsville – Alabama.

In summary, Martins Greene® Bike Shop, Inc. will adopt the following sales and marketing approach to win customers over;

• Introduce our bicycle dealership and repair shop by sending introductory letters alongside our brochure to cyclist clubs, bicycle courier services companies, corporate organizations, households and key stake holders in Huntsville – Alabama
• 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 Huntsville – Alabama
• Position our greeters to welcome and direct potential customers
• Create a loyalty plan that will enable us reward our regular customers
• Engage on roadshows 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)

11. 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.

Martins Greene® Bike Shop, Inc. has a long – term plan of opening outlets in various locations all around Alabama and key cities in the United States which is why we will deliberately build our brand to be well accepted in Huntsville before venturing out.

Here are the platforms we intend leveraging on to promote and advertise Martins Greene® Bike Shop, Inc.;

• lace adverts on community based newspapers, radio 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, Google+ and other platforms to promote our business.
• Ensure that our we position our banners and billboards in strategic positions all around Huntsville – Alabama
• 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 Martins Greene® Bike 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 ensure that all our staff members wear our branded shirt or cap at regular intervals

12. Our Pricing Strategy

Aside from quality, pricing is one of the key factors that gives leverage to a bicycle dealership and repair shop.

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 dealerships within our level.

• Payment Options

The payment policy adopted by Martins Greene® Bike 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 Martins Greene® Bike Shop, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• 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 clients make payment for bikes purchase and repair services rendered without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

These are the key areas where we will spend our startup 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 Martins Greene® Bike 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.
• The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $75,600.
• The 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) – $150,000
• The cost for counter area equipment – $9,500
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The 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
• Miscellaneous: $10,000

We would need an estimate of $300,000 to successfully set up our bicycle dealership and repair shop in Huntsville – Alabama.

Generating Funds/Startup Capital for Martins Greene® Bike Shop, Inc.

Martins Greene® Bike Shop, Inc. is a private registered business that is owned and financed by Martins Greene. He has decided to restrict the sourcing of the startup capital to 3 major sources.

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from the bank

N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

Part of the plans we have in place to sustain Martins Greene® Bike Shop, Inc. is to ensure that we continue to make available a wide range of bicycles, bicycle parts and accessories from different manufacturing brands in our shop outlets, deliver quality repair and maintenance services, improvise on how to do things faster and cheaper.

We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.

We are quite aware that our customers are a key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better and the products they want to see in our store. We will not waste time in adopting new technology, best practices and diversifying our services.

Martins Greene® Bike 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 retraining 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 three 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 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
• Printing of Packaging and 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
• 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

Related Posts:

• Windshield Repair Business Plan [Sample Template]
• Car Parts and Accessories Store Business Plan [Sample Template]
• Paintless Dent Repair Business Plan [Sample Template]
• Rock Chip Repair Business Plan [Sample Template]
• Car Assembling Plant Business Plan [Sample Template]

Bike Shop Business Plan Template & Guidebook

Starting a successful bike shop requires more than just passion and dedication - it requires a solid business plan. With the right resources and guidance, any aspiring entrepreneur can create and execute a plan with success. The #1 Bike Shop Business Plan Template & Guidebook is the perfect starting point for anyone looking to launch their own bike shop business. This comprehensive guidebook provides a road map for everything from setting up shop to securing financing and maximizing online visibility. With its step-by-step guidance and helpful resources, this template and guidebook serve as an invaluable asset for anyone launching their own bike business.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Bike Shop Business [11 Steps]
• 25 Catchy Bike Shop Business Names:
• List of the Best Marketing Ideas For Your Bike Shop Store:

How to Write a Bike Shop Business Plan in 7 Steps:

1. describe the purpose of your bike shop business..

The first step to writing your business plan is to describe the purpose of your bike shop business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a bike shop business:

Our purpose at [Bike Shop] is to provide a wide selection of quality bicycles, parts, and accessories at reasonable prices, while delivering excellent customer service and fostering a love of biking in our community.

2. Products & Services Offered by Your Bike Shop Business.

The next step is to outline your products and services for your bike shop business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your bike shop business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your bike shop business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your bike shop business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a bike shop business?

• Equipment: Bicycle stands, work benches, repair tools, specialised tools, cleaning supplies.
• Supplies: Greeting cards, bike maps, helmets, mirrors, bells, handlebar baskets, locks and light sets.
• Permits: A business license from your local government and permits to sell bicycles may be required depending on the location.

5. Management & Organization of Your Bike Shop Business.

The second part of your bike shop business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your bike shop business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Bike Shop Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a bike shop business varies based on many different variables, but below are a few different types of startup costs for a bike shop business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your bike shop business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your bike shop business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your bike shop business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Bike Shop Business Plans:

Why do you need a business plan for a bike shop business.

A business plan for a bike shop business is essential because it can provide direction and structure to setting up the business. It can serve as a guide on how to implement new ideas and strategies while allowing you to assess the potential success of the venture. Additionally, if you plan on seeking out financing for your bike shop, you will likely need a comprehensive business plan in order to demonstrate the potential success of your business.

Who should you ask for help with your bike shop business plan?

It is a good idea to seek out professional help from an experienced business consultant, financial advisor, or accountant. Additionally, many local business and economic development organizations offer free or low-cost consulting services to help entrepreneurs create their business plan.

Can you write a bike shop business plan yourself?

Yes, it is possible to write your own business plan for a bike shop. It will require research into the industry, an analysis of the current market and competitors, and a detailed financial plan. Additionally, you'll need to consider the types of bikes and accessories you will sell, the costs associated with purchasing inventory and managing a store, marketing and advertising strategies, customer service policies, and any other relevant information. A comprehensive business plan can help ensure a successful launch for your bike shop.

Related Business Plans

Home Inventory Business Plan Template & Guidebook

Home Inspection Business Plan Template & Guidebook

Home Decor Business Plan Template & Guidebook

Health And Wellness Business Plan Template & Guidebook

Hauling Business Plan Template & Guidebook

Hardware Business Plan Template & Guidebook

Handyman Business Plan Template & Guidebook

Hair Extension Business Plan Template & Guidebook

Handbag Business Plan Template & Guidebook

I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

How to Write a Bike Shop Business Plan: Complete Guide

• January 11, 2023

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your bike shop, you will first need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in the business plan of your bike shop . Use this template to create a complete, clear and solid business plan that get you funded.

1. Bike Shop Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire business plan below.

Why do you need a business plan for a bike shop?

The purpose of a business plan is to secure funding through one of the following channels:

• Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
• Obtain private investments from investment funds, angel investors, etc.
• Obtain a public or a private grant

How to write your bike shop’s executive summary?

Provide a precise and high-level summary of every section that you have included in the business plan of your bike shop. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately.

Also make sure that the executive summary doesn’t exceed 2 pages in total: it’s supposed to be a summary for investors and lenders who don’t have time to scroll through 40-50 pages, so keep it short and brief.

The executive summary usually consists of 5 major sub-sections:

• Business overview : describe your business in detail, providing information about the business model (franchise vs. independent store) you intend to use and all the products (bikes, accessories, sportswear, etc.) and services (rental, repair, etc.) customers can find in your shop
• Market analysis : the market analysis segment will contain an overview of the expected market size , target audience , and demography. Also provide here a quick overview of your competitors , your strengths & weaknesses (think SWOT analysis ) and how your bike shop differ vs. competition
• People : first, introduce your bike shop’s management. Provide a brief (no more than a couple of sentences each) of the experience and track record of the team. Also, speak about your hiring plans: in other words, how you intend to run the business (what are the different teams and how many employees will you hire?)
• Financial plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? You can also include here a chart with your key financials (revenue, gross profit, net profit )
• Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?

Bike Shop Financial Model

Download an expert-built 5-year Excel financial model for your business plan

2. Bike Shop Business Overview

This is the perfect time to give the lenders a detailed overview of your bike shop. What type of bike shop are you opening? What products and services will you offer? Use the following questions to guide you:

• Why are you starting a bike shop today? 
• Where exactly is your bike shop located? 
• Why did you choose that location? 
• What type of bike shop are you opening?
• Which products and services will you provide? Will you sell bikes or rent them as well?
• Will you offer repair services?
• What will be your pricing strategy ? 
• What will be your opening days and operating hours? 
• What will be the legal structure of your company?

a) History of the Project

Any business overview must start with explaining the history of the project. There are 2 components here:

• Passion & experience of the business owner
• Rationale behind starting a bike shop today

Passion & experience

There’s nothing more appealing to investors and lenders than finding a business owner who has a strong passion for the industry they evolve in. Same goes for cycling.

Prior experience will make your story more believable, making it easier for the lenders and other financial bodies to fund your project. There’s no harm if you don’t possess the relevant experience. But, if so, be sure to demonstrate your ability to run a successful business. 

After demonstrating your ability to run the business, give enough justifications that this is the right time to invest in a bike shop business. For example, there may not be any specialised bike shop within a 25-mile radius selling high-quality bicycle racing brands and where bike lovers can get repair services from bicycle experts.

b) Business Model

What type of bike shop will you open? You can start a new bike shop from scratch or buy a franchise instead. But ensure you understand the pros and cons of every model and what’s best for the area where you plan to operate.

This section should address the following questions:

• Will you sell and/or rent bikes as well?
• Will you partner exclusively with selected brands to offer their bikes and accessories?
• Will you target a specific age group? (children vs. adults)  
• Will you provide special services/add-ons? (bike repair, servicing, advice, etc.)
• Will you offer an online platform for selling your bikes (ecommerce)? 

Your store may target professional cyclers or local riders. Alternatively, you could be looking to start a large warehouse focusing on online sales. Similarly, you can stock all bicycles, including the electric types, or choose a single category. All in all, choose the best option for your target audience and the location where you plan to open your bike shop.

c) Products & Services

Now that you have gone in details about your bike shop business model, let’s now list out your products and services. In other words, what is your bike shop actually selling?

If the majority of the population are off-road biking enthusiasts, you may want to stock up on mountain bicycles. But if they are average cyclists looking for a a bike for a once-a-month sunday adventure, you might want to offer road bikes instead.

In addition to bikes, there are a number of products you may want to sell: accessories, sportswear, etc.

You may even want to create a one-of-a-kind flagship store with a coffee shop where bike lovers can spend time and meet bike aficionados in store.

Finally, you can offer other supplementary services inside your bike shop, including: bike repairs, parts replacement, routine maintenance and bike rental.

d) Pricing Strategy

In addition to products and services, make sure to add details about your pricing strategy.

For example, you can compile a pricing list outlining the average price per product and/or service. When it comes to the products, keep it simple and set a pricing range by category (road bike, mountain bike, hybrid bike, etc.).

Adding a pricing table is very useful as it helps lenders and investors to tie your pricing strategy with your financial projections later on. 

e) Legal Structure

Finally, your business overview section should specify what type of business structure you want. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

3. Bike Shop Market Overview

Starting a bike shop business only makes sense if you understand the market you’re in.

For instance, if you’re setting up your facility near a college where many students need cheap bikes for frequent commuting, stocking budget-friendly models for road cycling might make more sense vs. expensive brands.

However, if the region is dominated by off-road enthusiasts obsessed with weekend adventures, prioritize the all-weather mountain bikes.

When assessing your market, be sure to address the following aspects: 

• Bike shop industry size & growth : how big is the bike industry in your area? What is its growth/decline rate, and what factors contribute to its growth/decline?
• Competition overview : how many competitors are there? How do they compare vs. your business? How can you differentiate yourself from them?
• Customer analysis : who is your target market ? What type of bikes / bike sports do they prefer? How regularly do they purchase/rent bikes? How much do they spend on average on bikes & accessories?

a) Bike Shop Industry Size & Growth

How big is the bike shop industry in the us.

The market size of the bike industry in the US is estimated to be about $6.9 billion in 2021, and is expected to grow at a CAGR of 6.1% from 2022 to 2027.

18.5 million bikes were sold in the US alone in 2021: that’s an average of $372 per bike.

When it comes to the bike shops, there were about 7,000 bicycle shops in the US: that’s an average annual turnover of $985,000 per bike shop.

How big is the bike shop industry in your area?

After getting a clear picture of the US biking industry, narrow down to your location. It’s possible that you won’t find the size of the market anywhere (at least not for free). In which case, read our article on how to estimate TAM, SAM and SOM for your startup. Let’s see how to do it below:

We know that the average bike shop has an annual turnover of $985,000. So if there are 10 bike shops in your city for example, you can assume that the bicycle industry in your city is worth ~$10 million.

How fast is the bike shop industry growing in your city?

Looking at publicly available reports online, we know that the average annual growth of the industry was 6.1% from 2017 to 2022 . But what about where you live?

US national averages can be a great addition to your business plan, yet they don’t necessarily help to assess the biking industry where you plan to operate. For example, the industry might be growing in the US, but declining in your region for a number of reasons (decreasing population or disposable income, etc.).

Instead, you can use the number of bike shops as a proxy to find the market growth in your area. For instance, if there were 18 bike shops in 2018 and 20 in 2022, the average annual growth rate is ~3%, slightly lower than the US average.

b) Competition Overview 

You may face stiff competition when opening your bike shop. So before doing so you may want to learn from your competitors, identifying their strengths and weaknesses and the major reasons behind their respective successes and challenges. 

Get accurate information about their marketing strategies, products and services, and additional features that add value to their business. There’s no harm in visiting the stores in person to get first-hand information about your competitors.

Here is a sample table that you can use:

c) Customer Analysis

After assessing the level of competition in the region, switch your attention to your target market. Get a clear picture of your target customer by answering the following questions, among others:

• Average spend on bikes (purchasing or renting) per year?
• Frequency of visits (how often do they visit a bike shop?)
• What type of bike(s) do they prefer?
• What type of services do they need?
• What do they like or dislike in the existing bike shops in the region?

4. Sales & Marketing Strategy

This is the segment where you outline your customer acquisition strategy. Try to answer the following questions:

• What is your Unique Selling Point ( USP )?
• What are the different marketing strategies you will use? 
• How do you intend to track the success of your marketing strategy? 
• What is your customer acquisition cost (CAC)? 
• What is your marketing budget? 
• What introductory promos and offers do you intend to provide for attracting new customers? 

What marketing channels do bike shops use?

Some of the most popular marketing channels used by bike shops include:

• Local listing & customer reviews (Google Business)
• PPC ads, Facebook ads, etc. 
• Content marketing on social media and blogs
• Word of mouth, recommendations
• Loyalty programs

What is Your Unique Selling Point (USP)?

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors. A few examples of USPs are:

• Pricing : you may have affordable prices vs. competitors for the bikes you’re selling and/or the services you offer
• Extra services : add-on services like bike repairs competitors might not offer
• Partnerships with leading brands that refer you to their customers (via email marketing) and/or offer you special rates for their products (bikes, accessories, sportswear).
• Uniqueness : you may be the exclusive distributor of a well-known brand in the region
• Location : your bike shop may be located closer to your target audience and/or closer to a busy street
• Promos and offers : you offer discounts for frequent customers, etc.

5. Management & People

You must address two things here:

• The management team and their experience/track record
• The organizational structure : different team members and who reports to whom?

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your bike shop.

Describe here their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.

Organization Structure

Even if you haven’t already hired an assistant manager, salesmen, bike mechanics and other relevant staff members, you may want to provide a chart of the organizational structure defining the hierarchy of reporting like the one below.

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan for a bike shop.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your bike shop is an attractive investment.

There should be 2 sections to your financial plan section:

• The startup costs of your project (if you plan to start a new bike shop, renovate your store, etc.)
• The 5-year financial projections

a) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For a bike shop, startup costs are all the expenses you incur before you open your shop and start making sales. These expenses typically are:

• The lease security deposit (if you rent) or the downpayment if you buy the real estate
• Renovations and improvements
• Upfront Inventory

Of course, the startup costs depend on a number of factors: the size of your bike shop, its location, the quality of the existing shop, the furniture and design, whether you buy or rent the space, etc.

On average, it costs $47,500 to $237,500 to open a small bike shop (2,000 sq. ft.) with 3 employees in the US .

Note that these costs are for illustrative purposes and may not be fully relevant for your business. For more information on how much it costs to open and run a bike shop, read our article here .

b) Financial Projections

In addition to startup costs, you will now need to build a solid 5-year financial model for your bike shop.

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in the business plan of your bike shop.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

• How much revenue do you expect to generate over the next 5 years?
• When do you expect to break even?
• How much cash will you burn until you get there?
• What’s the impact of a change in pricing (say 15%) on your margins?
• What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

• The number of customers over time ;
• Your expected revenue ;
• Operating costs to run the business ;
• Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing, the cost of goods sold (the cost you incur to buy the bikes from the manufacturer) and your sales volume. Indeed, a small change in these assumptions may have a significant impact on your revenues and profits.

7. Use of Funds

This is the last section of your bike shop business plan. Now that we have explained what your bike shop’s business model is, what you sell and to whom, your marketing strategy, etc., this section must now answer the following questions:

• How much funding do you need?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

• What percentage of the total funding the loan represents?
• What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

• What percentage ownership are you selling as part of this funding round?
• What is the corresponding valuation of your business?

Use of Funds

Any business plan for a bike shop should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment in paying your employees’ salaries? Or will it cover mostly the cost for the lease deposit and the upfront inventory costs?

We also strongly recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

Privacy Overview

• 212 best farm names

How to Start a Bike Shop: The Definitive Guide (2024)

January 22, 2021

Starting a bike shop is a rewarding career if you have the passion and skills. A bike business is a line of work where even a simple operation can generate substantial profits.

Want proof? We interviewed two business owners who took different approaches to starting a bike shop.

Armen, founder of the Glendale-based Bicycle Pit Stop , started his business in high school to make some extra money and fill his time. He used the common garage, a business strategy that many entrepreneurs use.

Meanwhile, Troy Rarick started Over the Edge Sports (OTES) using a business-minded approach that involved creating a business plan, securing investors, and developing a marketing strategy to pull people into his small town on their way to Moab, Colorado.

From there, Troy has expanded OTES to multiple locations across the globe.

Whether you are more like Armen or Troy, there is an opportunity for you to start a shop focused on bikes. We’ll discuss the steps to start a bike business and share insights from both Troy and Armen.

The cycling industry generated over $12 billion dollars in 2020 and is expected to grow 5% by 2029, generating opportunities to find your niche in the industry and help other enthusiasts get on bikes.

If bicycles are your passion, this guide will help you start a bike shop.

An operational bike shop often comes with the equipment, inventory, and location all in one, and is a faster way to get started.

Step 1: What bike business is right for you?

Conduct research to determine what is right for you. Your bicycle store should be run in a way that works for you, but will also satisfy your customer’s desires.

You may want to run a store focused on professional cyclers, one that caters to local riders, or you may want a warehouse where you focus on online sales.

You aren’t limited to just one type, but the type of business you choose will impact every decision you make going forward.

Bicycle Pit Stop focuses on all bicycles, including electric ones, but excluding motorcycles. Meanwhile Over the Edge rents and sells mountain bikes to ride on their trails.

Many consumers start their shopping experience online, so a shop that can sell a bike in person or online is a good way to start your bike business.

Mountain Bikes

Mountain Bikes are the largest segment of bike sales, with over 25% of cyclists saying their next bicycle purchase will be a mountain bike. Make sure you have a good variety because mountain bikes will be an easy sell.

In fact, mountain bikes were what inspired Troy to start his business. While he was working on getting the funding to start the business, he was also buying land and building trails to give a unique experience to bike riders.

To learn more about bike terms, check out the glossary of terms .

Step 2: Bike Business Name

I can’t stress enough the importance of a bike business name. Keep reading for best practices when naming a bike business.

Does the name explain the bike business?

Bicycle Pit Stop includes the products serviced as well as what it does, Pit Stop (a reference to the quick service provided in racing).

Is it easy to spell?

Make sure your business name is easy to remember when using a search engine.

A crazy name like Quasimodo Bikes makes searching for your business difficult. Register domain names for common misspellings and forward them to your website.

Including your state, county, or city identifies you as a local business. For example, Las Vegas Mountain Bikes would be a business located in Las Vegas.

Does your name fit your branding? Some business owners focus on visual ideas for a logo before a name. Las Vegas Mountain Bikes might have a logo with mountains, the strip, and bikes. It’s about communicating ideas, right?

Register a .com

Find a name for which the .com domain is available. It’s the most recognizable. You can conduct a search by clicking here .

Give it a go!

See how people like it. Make sure to check what happens if people shorten it. You wouldn’t want to name a business Destin Off-Road Klub because it would get shortened to DORK, and that isn’t what you want to communicate.

Check Google Trends. Read articles like Five Tools for Naming a Business. Finally, register your business name with the government.

Step 3: Write a Business Plan

You need a bike shop business plan to help define your vision, objectives, and strategy.

Its purpose is to drive the direction of your business by guiding decisions, securing financing, and developing partnerships with other businesses. 

Armen told us:

In the beginning there was no plan. Just make everything as nice as possible. Then the plan started forming. I looked at it as the future of the business. I always stuck to service. The plan always changes.  It grows and evolves into an art.

Having a flexible business plan that is constantly evolving is a great approach to the process and allows for businesses to pivot when necessary. Here are some resources to help with this step.

These business plan templates focus on helping small businesses succeed. Want to know the best part? They are all free!

• One-page business plan
• U.S. Small Business Administration (SBA) Business Guide
• State-specific templates
• Business Plan Template for a Startup Business

It gets better! Enjoy free and low-cost resources about writing successful business plans:

• How to Write a Business Plan
• SCORE’s free business plans and startup assistance resources
• The Complete Business Plan Course (Includes 50 Templates)

Step 4: Establish a legal structure

You have a business plan and name. Now you need to establish the legal structure for your bike business.

For best results, hire legal representation that has experience starting a business, like an attorney, accountant, or tax specialist. They’ll help you get your business started quicker so you can start selling bikes faster.

Licenses, permits, and tax forms

Each location has different licenses, permits, or tax forms required. Use the SBA License and Permits page to identify what your bike shop needs. Let’s look at different legal structures for bike businesses.

Sole proprietorship

A sole proprietorship is the easiest way to start a bike business. The bike company doesn’t protect the owner’s personal assets, meaning if the company has legal issues, you could lose your home as well as your business.

This structure should only be used if you cannot afford an LLC because bike companies have work that can cause injuries.

To start a sole proprietorship, fill out a special tax form called a Schedule C. Sole proprietors can also join the American Independent Business Alliance.

Limited Liability Corporation (LLC)

LLC is the most common business structure used in the United States because the company protects the owner’s personal assets.

It’s similar to partnerships and corporations but can be a single-member LLC in most states. An LLC requires a document called an operating agreement.

Partnerships and corporations

Partnerships and corporations are typically for massive organizations or legal firms.

Unless there is a specific reason you need a partnership, it is better to do a multi-person LLC. Investopedia has good information about partnerships and corporations here .

There are several opportunities to purchase bike franchises.

Franchising.com has two franchise opportunities in the United States and two in Australia that allow you to start a bike business using a reputable company’s name and business processes.

This makes it where an entrepreneur can benefit from the reputation of a bike business that has already worked out many of the kinks of starting from scratch.

Step 5: Getting Ready for Cycling Customers

Your bike business is an entity now, but you still need more. The order you do the rest of the steps will depend on the resources you have, your skill sets, and the type of bicycle business you are running.

There are five areas of business you will need to focus on to get your shop running:

• Location – Where will you be working?
• Inventory – What will you have in stock and how will you pay for it?
• Employees – Will you have employees and how will you make sure it is a safe environment?
• Finances – How will you keep track of transactions and financial records?
• Marketing – How will you find customers?

Step 6: Location

Finding a location will vary based on the bike business. For instance Armen started repairing bikes out of his garage while Troy was building trails for people to ride their mountain bikes.

When deciding to rent a space for a bicycle-based business, consider:

• How will I store equipment and parts?
• Is there space for a home-based office?
• Will customers be coming to my location?
• How much inventory will I have?
• How much display space do I need?
• How much space is needed to perform repairs?
• Will I be doing mobile repairs?

When opening a bike shop, you will probably need to rent space in your city. To find spaces to rent in your area, contact a local commercial real estate agent. You can search for them by your area here.

Know the local ordinances

Each city and state has different requirements for where a business is allowed to be located. Local ordinances might not allow a bike business to be home-based.

How am I supposed to start my shop with so many rules about bikes? Just search Municode Library to find your city regulations.

Finding a good spot

When looking for a space to rent, take into consideration your ideal client and what stores they might frequent.

For instance, they might want coffee or a smoothie after a long bike ride. Finding the right place will take some research, which will be much easier after considering your marketing efforts.

Step 7: Inventory, Tools, and Product Displays

A new shop requires inventory. Whether it is new bikes, replacement parts, or product displays for your store, there will be some costs associated with selling and repairing bikes.

Each of the business owners we talked to while researching this article took different approaches.

Armen started his business with virtually no inventory. He’d order it off of Amazon when he needed a part. This kept his upfront costs low.

Troy decided to go a different route and have inventory upfront so that people could rent or buy bikes to ride the trails he’d built.

To find a list of major bike manufacturers, check out this article .

Used tools and product displays

Tools and product displays can often be found at huge discounts if you buy them used. You can find used tools and product displays through most online markets, pawnshops, going out of business sales, and other places.

If you are considering buying an existing business, they should be included in the purchase price. Learn more about valuing an existing business in our guide about buying businesses.

Step 8: Employees

Troy emphasized the importance of good people, saying:

An open bicycle shop might need employees. Depending on your financial position when starting, you can work all the hours yourself or hire employees.

Either way, there are some things you’ll be required to do. Keep reading for more info.

Employer Identification Number

Get an Employer Identification Number (EIN) from the IRS to identify your company. Apply here or call 800-829-4933.

Tax filing and withholding

Federal and state tax filing requirements apply to new employers. You must keep records of employment taxes for at least four years, including special forms and accounting for state taxes.

Don’t worry! We’ve got you covered! Check out the IRS guide for employers here .

Unemployment Insurance Tax 

Unemployment Insurance Tax is required. It is a program under the Social Security Tax for employers.

Federal employment and labor law posters

All employers must display Workplace Posters , which you can download from the website.

Other requirements include:

• Employment Eligibility Verification (Form I-9)
• State’s New Hire Program
• Worker’s Compensation Insurance
• Disability insurance—varies by states
• Occupational Safety and Health Administration (OSHA)

Job Posting

Hiring people requires posting “now hiring” signs and posting on prominent job boards. Some places you can start posting job requirements are:

• Zip Recruiter

Having a prepared list of questions for interviews can make hiring the right people easier. Indeed offers a variety of resources to help you make better hiring decisions. Read their guide:  How to hire your first employee.

Compensation

Employees are typically a company’s biggest expense. Let’s take a closer look.

There are 3 common pay structures in business. Each fits different scenarios.

Flat weekly/monthly rate based on a person working a specific number of hours. This is typically reserved for owners, managers, and some admin roles. You might want to assign this to yourself for budgeting purposes.

This pay structure just tracks the hours an employee works and pays them a set hourly rate. This pay structure is solely based on time, not performance.

This pay structure is used for mechanics and other tradespeople where billing is based on the expected time it takes to complete a task.

This is a way of combining performance and time into the pay structure because those who complete a job successfully in less time have more opportunities to work on other projects.

This also protects the company from overcompensating for the learning curve.

Typically used in sales to give employees a percentage of revenue. It is a strictly performance compensation model.

Hybrid Models

Hybrid models combine two pay structures. For instance, hourly and commission to compensate for time and performance.

The hourly rate will typically be lower than an hourly rate without commission, but the commission should make it where good performing employees make more than they would without commission.

These structures also help reduce the variability of pay from week to week.

Paying employees an hourly wage works for most positions if your new bike business doesn’t require salespeople.

The article , “How to Create a Pay Structure That Promotes Team and Company Growth” offers some insights into thinking about pay structure.

Step 9: Financial Management

A crucial portion of successfully starting a small business is managing the financial aspect of the bike store. Armen told us when he started his bike shop:

That is a pretty risky way of starting a business that requires financial discipline because credit cards have high interest rates. To find banks that work with small businesses, use this resource .

Let’s look at some tricks you can use to help your bike shop become profitable.

Budget! Budget! Budget!

A budget is the most important tool you can use in business. Without it, your bike shop might not make it through the first few years.

While Armen started Bicycle Pit Stop with a shoestring budget, Troy says:

Troy spends a good bit of time discussing his budgeting strategy so I’ve put together a table to help you understand how he budgets.

Basically, he uses rules of thumb to keep his net profit margins around 10%. The table below shows what each of his budgets would be for $100,000 revenue in a bike business.

Troy loves Quickbooks because it lets him “develop budgets quickly without an accounting degree.” To learn more about budgets, check out low-cost courses from Udemy  

Consider the many funding options

Starting a bike shop doesn’t cost a fortune. The initial investment in owning a bike shop can be one year of savings.

Funds to start your bike shop can come from:

• Personal funds
• A loan from family or friends
• Business partner(s)
• Government programs

The SBA offers free courses on financing options and funding programs . For info on using personal funds to start a business, check out this article from The Hartford.

Alternative sources of funding include:

• Crowdfunding
• Credit cards
• Home equity loan
• Rollover for business startups (ROBS)

Develop a pricing structure

How you price your bikes and services will impact how many people you draw to the shop. If your prices are too high, they’ll go elsewhere. Too low, you’ll lose money.

Based on the rules of thumb presented by Troy in his interview, you’ll make about $10-27k for every $100k in sales if you use a 50% markup, which is pretty standard amongst businesses.

Don’t undersell to get new customers

Shops will often sell their products or services for a lower price to bring in new customers. Be careful about this.

If you sell your bikes for a discount and they tell others, you might have to sell another bike for the same price. People love a good deal! Just make sure it is sustainable for your bike shop.

Increase prices every year

Inflation occurs every year. To keep your business running, raise your prices 5% per year. It gives you room to increase wages and to make some extra money. Makes sense, right?

Step 10: Marketing

Your Bike shop is open. You have bikes to sell, parts to fix bikes that people bring in, but no clients!

How are you going to let people know about your company?

Marketing is crucial for all new businesses. Both Armen and Troy spent a good bit of time discussing their marketing strategies with us. Let’s look at what they have to say!

Bicycle Pit Stop Marketing

Armen tells us he started with Yelp, then gradually added Google. Over time, he has also added Instagram to market his bike shop. He thinks:

It sounds like Yelp’s pricing forced him to look for less costly alternatives and drove him to Google My Business and Instagram where he can do marketing without paying to show off his shop and bikes to people.

Over the Edge Sports Marketing

Troy uses a variety of methods to market his bike company. While he doesn’t discuss his social media marketing, a little research shows each of their locations has thousands of followers and hundreds of posts.

It’s obvious that they put some effort into social media to advertise their shop. Bike enthusiasts can share their photos as well.

Troy uses some innovative ways of marketing as well. He discusses how his bike company got to be known throughout the biking world by hosting the lunch at a bike convention:

Influencers

USA Cycling offers resources for clubs that can help with marketing influence. You can join one or start your own. Another common marketing tool is social media influencers.

For a list of cycling influencers, check this article out or use a hashtag generator to get the attention of cycling enthusiasts on your social media channels.

To recap this guide on how to start a bike business, ask yourself the following questions:

• Do I know how to start a bike business?
• Is it worth it for me to start a bicycle business?
• Will I be comfortable speaking to clients?
• Am I starting a bike business this year?
• Why am I starting a bike business?
• Do I need employees or advice?
• What will I need to feel successful?

Take the next step. Now that you know how, start a bicycle sales or repair business! The truth is, all it takes is a great idea, some skills in repairs and sales, and a good marketing strategy to get started. As Armen told us:

Let us know in the comments below if you have any questions—we’ll be more than happy to help!

80% of businesses fail... Learn how not to.

Learn from business failures and successes in 5 min or less. The stories, frameworks, and tactics that will make you a 10x better founder.

Brandon Boushy

Related articles

How to Start a Podcast: The Ultimate Guide (2024)

What Is A Podcast And How Does It Work?

• How Much Does It Cost to Start a Podcast?

Step 1. Plan Your Podcast

Step 2. decide on your podcast format, step 3. create a podcast brand.

• Step 4. Get Your Recording Equipment

Step 5. Select Audio Recording Software

Start 6. start recording podcast episodes, step 7. edit the podcast episode.

• Step 8. Create Podcast Artwork
• Step 9. Add Podcast to Buzzsprout

How To Start A Podcast On Apple Podcasts

How to start a podcast on google podcasts.

• How To Start A Podcast On Spotify
• How to Start A Podcast On Youtube

Step 11. How To Promote A Podcast

Podcast faq.

• Podcast Websites
• Apple Podcasts
• Google Podcasts
• Samsung Podcasts
• Find a huge list of podcast directories

Can You Make Money With A Podcast?

How do podcasts make money.

How To Make Money From Podcast

• Release podcast episodes
• Develop a following
• Create offerings to sell your audience
• Set up a payment system
• Add a call to action to your podcasts

How Much Does It Cost To Start A Podcast?

Podcast Startup Costs

Ongoing podcasting costs, how to start a podcast with no money, how to start a successful podcast.

• Plan Your Podcast
• Decide on Your Podcast Format
• Create a Podcast Brand
• Get Your Recording Equipment
• Select Audio Recording Software
• Start Recording Podcast Episodes
• Edit The Podcast Episode
• Create Podcast Artwork
• Add Podcast to Buzzsprout
• Apply for Other Podcast Channels
• How To Promote A Podcast
• Describe your goals
• Pick a theme
• Narrow your niche
• Choose a podcast name

Describe Your Goals

• The message you want to convey
• How you’ll convert listeners to leads
• Whether you're trying to become an industry leader
• How you’ll monetize the podcast

Pick a Podcast Theme or Topic

• Crime podcasts
• Business podcasts
• Comedy podcasts
• Fictional podcasts
• News podcasts

Narrow Your Niche

Choose a podcast name.

• The structure
• The length of each episode
• The frequency of posting

Podcast Structure

• Interviews 
• News commentary
• Cohosted podcasts
• Scripted readings of fiction or nonfiction
• Educational podcasts

Length of Podcasts

Frequency of New Episodes

• Podcast logo
• Podcast slogan
• Format of intros
• Podcast music
• Podcast title
• Episode description
• Podcast description
• Podcast cover art
• Quality of sound recordings
• Podcast host
• Language you use

Choose a Podcast Host

Step 4. what do i need to start a podcast.

• Podcast Microphones
• Headphones 

Podcast Microphone

Dynamic or condenser.

• Helping you identify the best place to position the mic.
• Reducing the editing time.
• Preventing situations where you have to trash a podcast recording due to poor sound quality.

Don’t Forget A Mixer

• Controlling each input separately
• Livestreaming plus recording
• Intro music and other sound effects

Other Equipment for Creating a Podcast

• RODE Boom Arm for Better Mic Placement | $120
• Shock Mount Vibration and Noise Reduction | $35-50
• Foam Ball or Pop Filter Noise Reduction| $6-$10
• Podcast Platform

Remote Recording Software

• Editing Software

Podcast Hosting Sites

• Podcast Recording
• Dynamic Podcast Advertising 
• Remote Recording
• Canva Cover Art Built-In

• Podcast Listed on 12 Directories
• 90-Day Free Trial
• Magic Mastering 
• Payment Processing
• Buzzsprout Ads
• Transcription
• API for Integrating Other Tools
• Cover Photo Creator
• Monetization
• Live Streaming features
• Instant Alexa Availability

Riverside.fm

• Free Trial (but $29/month plan is useful)
• Separate Track for Each Audio Channel
• Continuous Uploading 
• AI Transcription
• Studio-quality recordings

SquadCast.fm

Adobe Audition

Other podcast software.

• Capsho: AI for Podcasts  
• Repurpose.io: Convert podcast audio to YouTube
• Hootsuite: CRM and Social Media Management
• Boomerang for Gmail: Use to keep yourself on track
• Otter.ai: If you don’t have transcription in your hosting or editing software, Otter.Ai works well.
• Magic Mastering: Buzzsprout add-on that optimizes sound for you
• Audio Hijack: Record audio to add into your podcast, such as sound effects
• Prepare a script.
• Setup your equipment. Don’t forget headphones.
• Setup your software. (The ideal sound level is below -16 Loudness Unit relative to Full Scale ( LUFS ); anything higher will cause your sound to be reduced on Apple Podcasts).
• Do a test recording to check for mic placement.
• Make sure to have each sound recording on a separate channel.
• Record the podcast and use your notes. As long as it’s not livestreamed, you can correct your mistakes by restarting the sentence or paragraph.
• Save the files and get ready to edit.

• Import audio file into your editing tool.
• Remove any unwanted sounds like “uhm,” mistakes, awkward silences, and background noises.
• Add intro & outro music.
• Fix any volume discrepancies.
• Add the intro and outro.
• Export audio file and upload podcast to an AI editing tool if your primary one doesn’t have auto-balancing and other AI features.
• Save file as an MP3.

Step 8. How To Create Podcast Artwork

Step 9. how to add podcast to buzzsprout.

• Select “Upload New Episode” 
• Upload the audio file
• Add the title, description, and cover art
• Select publishing time and date
• Save episode
• Schedule to share it to social media using a tool like repurpose.io

Step 10. Apply for Other Podcast Channels

• How to start a podcast on apple for free
• How to start up a podcast on Google
• How to start a podcast on Spotify for free
• How to start a YouTube podcast

•  Go to Apple Podcast Connect to start an Apple podcast . 
•  Add a show either with an RSS feed or without it.
•  Name the show. You can use up to 150 characters.
•  Do not restrict access unless you have a reason you want a limited audience.
•  Add artwork.
•  Add a 4,000 character or less description.
•  Choose a channel if you run more than one podcast or offer paid content.
•  Select the type of series .
•  Specify posting frequency.
•  Add the Apple content category and subcategory. 
•  Mark explicit content if you talk about sex, drugs, violence, or have lots of cursing.
•  Specify the language your podcast is in.
•  Add your website URL.
•  Add copyright information.
• Create a public RSS feed.
• Create a homepage that links to the RSS feed. 
• Use supported audio file types. No video files are allowed.
• Use consistent Https or Http.
• Add an art file, title, description, owner email, and homepage URL.
• Set up a Google Search Console and request indexing .

How To Start A Podcast For Free On Spotify

• Name your podcast.
• Agree to service terms.
• Provide your RSS feed.
• Add Categories.
• Confirm Details.

How To Start A Podcast On YouTube

• Create and upload three episodes before releasing the podcast
• Add transcripts to every episode
• Tease new episodes on social media before release
• Share new episodes 2-3x during the week
• Pull in followers from your guests
• Share short clips
• Convert to video because Google loves video
• Add to less common directories to get backlinks
• Run contests and promotions during your first six weeks to get on the New and Noteworthy iTunes List
• Encourage partners to share content
• Be a guest on other podcasts

How To Start A Podcast Script

• Research common search queries with an SEO tool. 
• Create an outline of the questions people ask the most.
• Research each question. 
• Write out a sentence and practice it.
• Use cue cards or a teleprompter.
• Be prepared to shift if someone answers questions without prompting.

What Do You Need To Start A Podcast?

• Computer or Phone
• Internet Connection
• Recording Device and Software (Use your phone recording software to get started)
• RSS feed (Free ones are available)

How To Start A Video Podcast

• Follow the directions in the link above.
• Convert the Channel to an RSS feed. Just do this by converting your YouTube Channel to https://www.youtube.com/feeds/videos.xml?channel_id=CHANNEL_ID . (Make sure to change “CHANNEL_ID” to your channel name.)
• Add the RSS feed to your podcast hosting and podcast directories.
• Upload new episodes.
• Market your video podcast.

Get Started Today!

• How to start a sports podcast
• How to start a business podcast
• How to start a podcast on iphone 
• How to start a podcast network
• Something else - Tell us in the comments!

How to Start a Pressure Washing Business & Make $150K/Month

Do you want to go where you’ve never gone?

You’ll have to change what you’ve always done.

We’ll show you how to start a pressure washing business. Becoming a pressure washer changed Joshua Brown’s life, and it can do the same for you.

Josh started Brown’s Pressure Washing with just $5K and grew it to $1M in revenue annually in just four years. You’ll be amazed how he progressed from a life of poverty to becoming a preacher, then realizing:

I’m tired of creating someone else’s kingdom.

[su_note note_color="#dbeafc"] We’ll share his pressure washing mistakes, lessons learned, and how you can benefit from his experiences to start a pressure washing business that helps you thrive financially. We’ll also share an industry breakdown and tips on equipment, marketing, and more.

What Is Pressure Washing?

Case study: brown’s pressure washing, learn about the pressure washing industry, watch the free masterclass, step 1. establish a business structure, step 2. buy your pressure washing setup, step 3. set prices for pressure washing services, step 4. open a business bank account, step 5. establish marketing channels, pressure washing faqs.

• It’s Your Turn to Start a Successful Pressure Washing Business [/su_note]

Pressure washing is using high-pressure water to remove grease, dirt, and other grime from surfaces like roofs, walls, patios, and driveways to help make a property look more pristine.

Joshua Googled “top 5 businesses to start with $5,000,” and that’s how he started Brown’s Pressure Washing . We’ll show you how to start a pressure washing business that grows from $5K invested to $225K, $445K, $780K, and then nearly $1M in revenue in its first four years.

Today, Brown’s Pressure Washing makes $2M in annual revenue.

It wasn’t without struggle. Josh made a ton of mistakes. He’d run out of gas and chemicals and didn’t know what an O-ring was. Find out how Josh grew Brown’s Pressure Washing below.

If you want to know how to start a pressure washing business, you’ll have to understand the industry. We’ll answer some common questions about pressure washing businesses that people commonly ask.

How much does it cost to start a pressure washing business?

You can start a successful pressure washing business for between $220 and $48K depending on whether you have a vehicle and pressure washing equipment. Most people can start a pressure washing company for less than $5K, but Joshua explained:

[su_quote] Your equipment will determine how much you can make. … Start with the best equipment you can afford and build from there. [/su_quote]

Before starting your own pressure washing business, you’ll need to cover the following costs:

• Limited liability company formation: $50 to $900
• Pressure washing business license: $0 to $1,000
• Pressure washer: $100-$3K
• Nozzles and hoses: $20-$100
• Water tank: $100-$900
• Vehicle: $0 to $35K, depending on whether you own one already
• Auto insurance: $1,762 annually ( according to Insureon )
• Smartphone and plan: $0 to $1,800
• Business software: $0 to $500
• Marketing: $0 to $5K

All told, these costs range from $220 to $48K.

Joshua invested $5K to start his business. He bought a boat trailer for $300, a pressure washer for $3,500, and related equipment and expenses that accounted for the remainder of his relatively low startup costs.

How much does a pressure washer business make?

These businesses have an average annual revenue of $45,073 with an average profit margin of 8.44%. Some of the most successful pressure washing businesses make way more, though. Brown’s Pressure Washing makes $150K per month.

You can download the IBIS World pressure washing report for $925 to get detailed breakdowns of the industry revenue, businesses, profit margins, and expense reports.

Is a pressure washing business profitable?

Yes. A pressure washing business will normally have a net income ratio of between 5.6% and 8.4% of revenue, but Joshua told us his profit margins are typically between 20% and 30%.

A pressure washing business owner should expect revenue to be spent on the following expenses:

• Wages: 21 to 31% of revenue
• Purchases: 31-50% on equipment, vehicles, and other purchases
• Marketing: Expect to spend at least 1.5% to 3%, but many successful power washers spend 8-12%.
• Rent: Pressure washing rent expenses average 1 to 2% of revenue, but many people run their services from home offices. A home office can make the rent expense more of an on-paper cost than a monetary expense.
• Utilities: Normally, utilities are nominal—between one-third of a percent and 2.1% of revenue.
• Depreciation: Between 1% and 2% of revenue
• Other Costs: Between 17.8% and 22.8% of revenue
• Profit: The net income ratio is between 5.6% and 8.4%, but you can increase it dramatically by automating services.

What equipment do I need to start a pressure washing business?

At a minimum, you need the following pressure washer equipment:

• Pressure washer
• Water hoses
• Surface cleaner
• Telescoping wand
• Downstream injector
• Detergent tank

Additional equipment needed for pressure washing business operations may include:

• Water source (a water tank is best, but you can use a garden hose)
• Angled tips
• Hydrostatic line testers

Nozzles impact how a pressure washer operates. They are calibrated in degrees, and lower numbers create more powerful streams.

For example, a 65-degree nozzle works well for dousing concrete with detergent, while a lower angle might be better for commercial pressure washing services that need to get gum off the sidewalk in front of local businesses.

A surface cleaner is a tool that attaches to your pressure washer to clean large, flat surfaces like patios, driveways, and sidewalks.

Do I need a license to start a pressure washing business?

You may need a license when starting a pressure washing business depending on your location. Some states require a license, while others do not.

License requirements for pressure washing businesses include:

• Business license: You might need a state small business license and a sales tax license if you sell taxable services and products.
• Occupational license: Some states and local governments require a pressure washer license.
• Handyman's license: You may need a handyman license to offer pressure washer and roof cleaning services.

Check with your local municipality to find out what bonds, contractor licenses, insurance, permits, and registrations are needed in your location for licensing.

Pro Tip: Be aware that opening an unlicensed company of any kind can result in fines or even criminal charges.

Learn How to Use a Pressure Washer

Before you start a pressure washing business, you should learn how to use all the necessary equipment. Home and business owners expect quality results.

If you know how to efficiently and effectively pressure wash several surface types, including stone, cement, wood, and shingles, you’ll make your pressure washing company stand out.

Some of the best pressure washing business resources are below:

• Hands-on Practice: Learn and get paid by another pressure washing business to develop skills.
• Environmental Protection Agency: Contact the EPA to learn about pressure washing regulations.
• United Association of Mobile Contract Cleaners: The UAMCC provides certifications, publications, online learning, and hands-on learning.
• YouTube Videos: The video-sharing platform offers numerous pressure washing tutorials.

What you’ll in get FREE in the next 39 minutes:

• Little-known secrets to successfully finance your business
• The basics you’ll need to quickly start earning
• The most profitable services to offer for unlimited clients
• Proven ways to maximize your marketing budget.

…and so much more. See for yourself—watch the pressure washing masterclass here! [/su_note]

How to Start a Pressure Washing Business

• Establish a business structure
• Buy your pressure washing setup
• Set your rates
• Set up your banking
• Establish marketing channels

Starting a business requires forming a business structure for your pressure washing company. You’ll want to choose a business structure like a limited liability company (LLC), corporation, or sole proprietorship.

A sole proprietorship uses a “doing business as” (DBA) name and your social security number to operate under a different business name. This low-cost business structure leaves you personally liable for everything that occurs in your business, so legal experts don’t recommend it.

Meanwhile, an LLC or corporation will protect from personal liability.

To register your business, perform a name search on the Secretary of State’s website for the business name you want to use. Next, file the appropriate paperwork and pay the registration fee, which may be $200 to $700, to create the business entity.

You’ll need the right equipment to start a successful pressure washing business. Josh says when you’re just starting, you’ll need a:

• Pressure washing trailer
• Bumper tank
• Chemical tank

He says that though the equipment can cost around $15K, it can earn you $200K per year.

You could spend less on pressure washing equipment, but the money you save might slow your business growth. Washing with lower pressure means you can’t take as many customers. A lower-quality pressure washer might also break down more frequently.

You should also consider an equipment rig that can go in the back of a truck. Josh told us:

[su_quote] A pressure washing skid costs $22K but saves even more time, is safer than a trailer, and will make you look like the most professional pressure washer in town. [/su_quote]

You’ll probably want equipment insurance to protect against loss due to theft, damage, or malfunction.

Pro Tip: Read our trailer setup guide to learn more about Brown’s Pressure Washing trailers.

Now that we’ve covered your initial startup costs, it’s time to move on to pricing.

Brown’s focus is on pressure washing homes and businesses. His best pressure washing contract is with Top Golf, at $60K annually.

Josh explained that his crew can clean four homes daily with a pressure washing trailer or skid and charge $300 for each job. His primary pressure washing services are:

• Concrete cleaning and sealing
• Gutter cleaning
• Window cleaning
• Commercial building cleaning

They use a unique technique called a softwash. Softwash systems differ from regular pressure washing services because they use less pressure, which makes them less likely to damage a customer’s property.

How to Charge for Pressure Washing

All price data in this section comes from HomeGuide .

There are essentially three ways to determine the price of a pressure washing job. You can charge by:

• Space: $0.35 to $0.77 per square foot
• Time: $50 to $160 per hour
• Service: $100 to $500 flat rate

Charging by Space

Charging by square footage is transparent and projects objectivity to your potential customers. Here is a breakdown of average prices for different pressure washing services:

• Driveway: $0.50 per square foot
• Patio or Deck: $0.55 per square foot
• Fencing: $0.45 per square foot
• Roofing: $0.70 per square foot
• Siding: $0.50 per square foot

Charging by Time

To charge by time, multiply the time you think a job will take by your hourly rate. Don’t forget to include the time to estimate, book, and travel to the job in your calculation.

Charging by Service

Many businesses offer set prices for certain kinds of services. This can make budgeting easier for both the business and the client.

For example, your business could charge a set fee of $100 to pressure wash a deck, $150 to pressure wash a driveway, and $250 to pressure wash the exterior of a house. You will need to decide which services to provide and how much to charge for each.

To decide on a final price, you will also need to consider the cost of providing your services. Since the most commonly requested pressure washing service is the driveway, we will use this as an example.

Breaking Down the Cost to Pressure Wash a Driveway

Assuming you’re a one-person operation, the primary costs associated with this work will be fuel and time. The average driveway will take one to two hours to pressure wash.

The fuel cost (for both your vehicle and pressure washer) will depend on the size of the driveway and the distance you need to drive from your business location. That said, you can calculate your costs by assuming you will use approximately two gallons per hour on the job (including travel time).

The cost of your time is much trickier to calculate. You want to make enough to offset your business expenses and compensate for wear and tear on your equipment.

For those reasons, this number will largely depend on the cost of your existing business expenses. If you’re just starting with essential equipment, you can estimate that the cost to you will be around $20 to $30 per hour, plus the cost of fuel.

So if you’re pressure washing a small driveway (one hour of labor) with a one-hour drive, it will cost your business about $65 (assuming fuel is $2.50 per gallon). If you have employees, you must add their hourly cost to this figure.

From there, consider your competition, determine how much you want to profit, and set your price. Want more in-depth information?

Learn more about estimating pressure washing jobs in our ultimate pricing guide .

A business bank account is critical for business operations. For protection under an LLC, you must keep your personal and business accounts separate. Plus, business bank accounts make paying your taxes easier because you don’t have to sort through every expense.

Business bank accounts will even make it easier to get approved for things like business credit cards and business loans .

Find out how to open a business bank account .

Josh explained how to market a pressure washing business. He discussed the following types of pressure washing advertising options:

• Business cards
• Door hangers

Google Advertising

• Professional-looking videos
• Television ads
• Hiring a professional marketer

First, Josh invested in a comprehensive and well-designed website for the pressure washing company. Check out the website here . Then go check out our cleaning business website examples for insights into what customers look for when reviewing cleaning solutions’ websites.

Business Cards

Business cards are inexpensive marketing tools that can help you connect with partners and customers. Check out our blog about inexpensive business cards , make your own, and leave them everywhere you go.

Door Hangers

Door hangers or flyers are also good business expenses. A pressure washer company can leave them at neighbors’ houses or send them in the mail after you pressure wash a property.

Josh explained his experience with digital advertising in the pressure washing industry. And it didn’t start off great. He failed on platforms like Nextdoor, Facebook, and Google.

But eventually, he found a strategy for Google Advertising that leads to a good return on investment.

[su_quote] Invest your money during the warm times, then ramp down your ads during the summer. … We spend $6 per pressure wash customer on Google and make about $80 per dollar spent. [/su_quote]

He still uses Google to market his pressure washing company but avoids most other digital advertisements. He advises dedicating about 75% of your advertising budget to Google and the rest to the other options.

Professional-Looking Videos

Another trick to jumpstarting a pressure washing company is to create videos. Find beautiful homes that need pressure washing services, clean them, and share videos of the process.

Make sure your video is well-lit, properly framed, and edited smoothly. It will make you look more professional than other local businesses in the pressure washing industry.

This leads to another way Josh makes his pressure washing business successful…

Television Ads

Develop a relationship with a news network like Brown’s Pressure Washing did when they were a new business.

[su_quote] Once we hit a million [in revenue per year], I started advertising in the news, Monday Night Football, and college sports. Without this relationship [with Fox 17 in Nashville], things would not be the same. [/su_quote]

As a small business owner, this may sound like an expensive strategy compared to online advertising. Still, it gets your business in front of more potential customers in your target market. You can expect to pay $5 to $10 per 1,000 viewers for a 30-second ad.

Hiring a Professional Marketer

Don’t be afraid to hire someone who understands effective marketing strategies. Power washing services can save a lot of money by outsourcing their advertising.

[su_quote] I was spending $9K to $10K in Google Ads, which got cut to $3K monthly when I hired a professional marketer. [/su_quote]

Pro Tip: Talk to other successful pressure washing companies to find out who they hire for their marketing services.

How much is it to pressure wash a house?

The average cost to pressure wash a home is $400, but the range is between $200 and $1,250 depending on factors including house size, location, cost of labor, and cleanliness of the property.

Pressure washing businesses commonly use linear feet and the number of stories to determine the cost of pressure washing. They may use estimates of $0.15 to $0.75 per square foot, or hourly rates of $60 to $100 per hour.

How do pressure washing companies get clients?

Josh’s pressure washing business venture has a remarkable 73% closing rate. He attributes a good share of his success in booking jobs to his sales manager, Brady Ridings. Josh said:

[su_quote] An investor contacted me. I told him, ‘I don’t need an investor, I need a salesperson.’ That’s how I met Brady, who sold $1M his first year. His biggest challenge was fixing my mistakes. [/su_quote]

Brady shared that to win jobs, he makes sure to use the three Cs: constant clear communication .

Josh also shared one of his secrets for getting return customers. It’s simple: Rinse the plants after cleaning a roof.

What is the difference between pressure washing and power washing?

Some say that pressure washing and power washing are interchangeable terms, which is a sign that they’re laymen writing about the pressure washing business!

You can differentiate pressure washing and power washing by the temperature of the water. A pressure washer uses high-pressured room-temperature water, while a power washer uses pressurized steam to clean surfaces.

You want to use a pressure washer for products that you are concerned would be damaged or warped by steam, including paint, patios, decks, concrete, brick, and masonry. Meanwhile, pressure washing is better for removing grease, gum, salt, mold, and mildew.

Can you scale a pressure washing business?

Yes, you can scale a successful pressure washing business by adding more employees and locations or starting a pressure washing franchise business.

As your pressure washing business grows in size, you can increase the profit margins by creating your own customer relationship management software, selling franchises, offering pressure washing courses, and selling pressure washing business equipment.

What sort of things need to be pressure washed?

People commonly pressure wash brick, decks, driveways, fences, pools, porches, roofs, siding, sidewalks, solar panels, and other building materials.

A soft washing business uses similar pressure washing business equipment to wash cars and other vehicles at a lower pressure than a pressure washing business.

It’s Your Turn to Start a Successful Pressure Washing Business

A successful pressure washing company requires a lot of planning, hard work, and maybe a little bit of luck. Pressure washers will need to establish the business structure and get all the necessary equipment.

Then you’ll need to set prices for your residential and commercial pressure cleaning services. Next, you’ll need to open a business bank account to keep your personal and business expenses separate.

Finally, you’ll need to market your business and provide excellent customer service.

So what do you think? Is the pressure washing market right for you?

Business Startup Costs: The Ultimate Guide (2024)

Typical business startup costs

Fixed costs.

• Office Space (Recurring) : This includes both rent and utilities. Most small business owners start with home office space and deduct the percentage of space from their taxes as a small business cost.
• Legal Fees (Upfront) : These are recurring costs that you have to pay to run a business legally, which usually include business formation, business licensing, and other professional fees to comply with regulations.
• Software Costs (Upfront and Ongoing) : These business startup costs include payment processors, websites, CRM, accounting software, and more. You can find some that would be one-time costs, but most are recurring charges.
• Equipment Costs (Upfront) : This includes machinery, vehicles, and other costs to meet the mission critical aspects of the business.
• Insurance Costs (Upfront and Ongoing) : If your business requires insurance, make sure to keep it continuous. If it doesn’t, you may want to consider it anyway.

Variable Costs

• Shipping Costs (Variable Expense): Shipping costs are included in variable costs because you only pay for them if you order materials or ship products to a customer.
• Marketing Costs (Ongoing Costs) : The Small Business Administration suggests spending approximately 8% of desired revenue on marketing. The advertising costs seem to be one of the defining factors as to whether a business succeeds long term.
• Material Costs (Varies): The time and materials that go into offering a product or service will affect your revenue.
• Supplies and Packaging Costs: Items you use for running the business must be considered early in the game. This startup cost may include computers, cleaning supplies, business cards, packaging for products, and other items that help your business.
• Wages: Most wages will vary with the amount of business you have. You have to pay employees for their time regardless, but you’ll schedule less hours when you have less business.
• Unexpected Costs: You should always leave a little wiggle room for unforeseen events. I’d suggest at least a 10% slush fund for unexpected startup costs and operating costs.
• Other Costs: This is a catch all for spending you can forecast, but are not sure which cost categories to include them in.

How much does it cost to start a business?

• Low Cost: start a business with a shoestring budget and figure out the ongoing expenses along the way.
• Average Cost: start a business with the money to cover the first year of organizational expenses.
• High Cost: business owners interested in the startup costs to guarantee they stay in business for five years.
• Franchise: business owners who want to buy a franchise.

H ow much does it cost to start a small business?

How much does it cost to start an online business.

• E-commerce stores
• Graphic design
• YouTube content creators
• Virtual assistants
• Marketing agencies
• Software developers

How much does it cost to start a t-shirt business?

How much does it cost to start a landscaping business, how much does it cost to start an eyelash business, h ow much does it cost to start a cleaning business, h ow much does it cost to start a jewelry business, h ow much does it cost to start a storage unit business.

• Buy land (acres range from $1,600 to millions, with an average of $12K over the continental U.S.
• Build storage space for $25 to $45 per square foot.
• Run the property for $2 to $4 per square foot of operating expenses. 

H ow much does it cost to start a food truck business?

H ow much does it cost to start a dropshipping business, how much does it cost to start a candle business, how much does it cost to start a towing business, how much does it cost to start a painting business.

• Background checks
• Surety bonds
• Multiple years of experience 
• Licensing exams

How much does it cost to start a detailing business?

H ow much does it cost to start a trucking business, how much does it cost to start a taxi business, how much does it cost to start a laundromat business, how much does it cost to start a photography business, how much does it cost to start a handyman business, how much does it cost to start a soap business, small business owners funding resources.

• Business Credit : Check out our preferred lending partners to get small business loans or a business credit card.
• Business Hub : Learn how to start a business entity, get insurance, and estimate a company’s revenue in our hub .
• Small Business Administration : Get information from the SBA on grants, loans, and local business resources.
• Evaluate Funding Options : Whether you are using a personal savings account or looking for alternative funding methods, check out our funding blog .

What Type of Business Will You Start?

Are 2 to 3 employees good enough to start a bike shop? Thanks!

That should be enough. It depends on the hours you have, whether you want full-time or part-time employees, and the services you offer. I would use the formula (shop hours x positions need each hour) divided by 40 hours to calculate the needed Full-Time Equivalent Employees. Then I would add at least one extra employee to make sure you are never short staffed.

Become a business owner in less than 90 days

Start your 10-day free trial of the UpFlip Academy and learn how to start your own business from scratch.

Get business advice straight to your   Inbox 

How to Start a Bike Shop

In addition to selling new bicycles, many bike shops also purchase and restore used bicycles for resale. Most also stock replacement parts for the types of bicycles they sell as well as a variety of safety equipment such as helmets, gloves, and reflective gear. Bicycle shops help promote cycling as a beneficial exercise, a positive social activity, and a clean alternative form of transportation.

Learn how to start your own Bike Shop and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a bike shop by following these 10 steps:

• Plan your Bike Shop
• Form your Bike Shop into a Legal Entity
• Register your Bike Shop for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Bike Shop
• Get the Necessary Permits & Licenses for your Bike Shop
• Get Bike Shop Insurance
• Define your Bike Shop Brand
• Create your Bike Shop Website
• Set up your Business Phone System

We have put together this simple guide to starting your bike shop. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Bike Shop Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your bike shop?

Business name generator, what are the costs involved in opening a bike shop.

One of the initial costs is obtaining any required business license and permits . Depending on the location and size of your shop, opening a bicycle shop can cost as much as $350,000 , or as little as $10,000. Startup costs are usually lower in smaller cities where rents aren’t as high, since a substantial amount of space is required.

Once a suitable space is located, it must be outfitted to effectively display bikes and accessories. Purchasing initial inventory is also costly, but many wholesale bicycle dealers offer shop owners a line of credit at 0% interest for a limited time (usually 3-6 months), which helps finance the initial inventory. Other goods, such as safety equipment, clothing, and accessories must be purchased outright.

Read our bike shop purchasing guide to learn about the materials and equipment you'll need to start a bike shop, how much to budget, and where to make purchases.

What are the ongoing expenses for a bike shop?

Ongoing expenses include:

• License and insurance fees
• Inventory maintenance costs, which can be reduced by advertising more expensive items in brochures, rather than keeping them in stock
• Freight charges, which can be reduced by using local wholesalers whenever possible
• Sale and inventory management software designed specifically for bike shops
• Tool maintenance
• Staff training and salaries

Who is the target market?

Preferred customers are people who enjoy cycling as a form of transportation, a competitive sport, or a recreational hobby.

How does a bike shop make money?

Bicycle shops make money by purchasing bicycles and cycling accessories for resale. Most shops also offer replacement parts and bicycle repair services. Some offer bicycle rentals as well as sales. Customers rely on the extensive knowledge and expertise of bicycle shop staff members to maintain their bicycles in safe riding condition.

Bicycle repairs can cost anywhere from $10 to $150, depending on the complexity of the job and the cost of the replacement parts. Simple beach cruisers cost anywhere from $199 to $700, while complex, rugged mountain bikes can range from $700 up to $10,000. There are also hybrid electric bicycles. Although they may charge more, most people choose bicycle shops over big box stores for the quality of their products, the superior knowledge of the staff, and the high level of customization they offer.

How much profit can a bike shop make?

On average, the retail profit margin for bike sales is 36%, although the margin is somewhat higher for other types of cycling-related products, such as clothing and accessories. By selling a combination of bikes and other goods, the average bicycle shop earns a profit margin of about 42%.

How can you make your business more profitable?

Many bike shops have begun expanding their businesses, by making their stores available for other types of community events. According to a recent survey of 4,000 bike shops, 12% now have coffee bars, 11% offer cycling/spin classes, and nearly 1% partner with other service providers to offer massage and yoga. Your profits can increase in direct proportion to the community involvement your store makes possible.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your bike shop is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a bike shop business. Learn more about licensing requirements in your state by visiting the Small Business Administration’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Liability Waiver

If a bike shop is considering renting bikes, liability waivers are essential since consumers will be in high-risk environments, operating potentially dangerous machinery. For this reason, it is best to require protective gear.

Certificate of Occupancy

A bike shop business is generally run out of a retail store. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a bike shop:
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a bike shop business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
• If you plan to purchase or build a bike shop:
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business’ location to ensure your bike shop will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Bike Shop needs and how much it will cost you by reading our guide Business Insurance for Bike Shop.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a bike shop

A great way to promote your shop is by partnering with other local businesses to sponsor bicycle races and other community events for charitable causes. Part of what makes bicycling so attractive to people is being outdoors, interacting with nature and other members of the community. Providing more opportunities for them to do that is sure to increase your customer base.

Social media sites such as Facebook and Twitter are excellent platforms to advertise both community and sales events. Many bike shops also make it possible for their customers to purchase items online by maintaining a page on Shopify, or another sales platform. Creating and maintaining a website is a good way to inform regular customers about new products and services, as well as upcoming sales.

How to keep customers coming back

Purchasing used bikes from local community members is a good way to build a local reputation, establish customer loyalty, and lower your inventory costs. People who sell older bicycles that their children may have outgrown are apt to use the money to purchase a new one.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

This business is ideal for environmentally conscious people who want to promote physical fitness and enjoy interacting with others.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a bike shop?

Bicycle shop owners perform a wide variety of activities, including:

• Tracking sales and inventory
• Purchasing bicycles and accessories
• Scheduling and performing bicycle customization and repairs
• Creating sales promotions
• Arranging and participating in community events
• Researching new products and current trends in cycling
• Training staff

What are some skills and experiences that will help you build a successful bike shop?

Some skills that will help you succeed in this type of business include:

• Bicycle repair
• Customer service
• Knowledge of cycling products and accessories
• Accounting skills
• Managerial skills for training staff

The Barnett Bicycle Institute offers courses in bicycle mechanics and maintenance, and the National Bicycle Dealers Association provides a number of educational resources on their website.

What is the growth potential for a bike shop?

The bicycle industry is demonstrating continuous growth , with the majority of bicycle manufacturers enjoying an increase in profits for 2016. Depending on location, it is possible to achieve enough growth to offer franchise opportunities.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

How and when to build a team

It’s important to build a team from the beginning. Typically, a team includes a lending institution, and at least one staff member knowledgeable about cycling products, and skilled in bicycle repair.

Useful Links

Truic resources.

• TRUiC's Bike Shop Purchasing Guide

Industry Opportunities

• National Bike Dealers Association

Real World Examples

• Bike Doctor, a bicycle shop specializing in repairs, serving the Mid Atlantic area
• Wheels in Motion, bike shop

Further Reading

• Considerations when starting a bike shop

Entrepreneur Interviews

Read Interview

Have a Question? Leave a Comment!

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Motorcycle Shop Business Plan

Start your own motorcycle shop business plan

Recycled Riding Dreams

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Recycled Riding Dreams will offer quality used motorcycles and motorcycle parts to a growing market of motorcycling hobbyists.  For the beginner, Recycled Riding Dreams offers excellent value in a first bike that will not bust the customer’s budget.  For the experienced biker, quality used parts will cut the cost of repairs and modifications by 50% to 75%.

Over the past ten years, biking has developed an entirely new customer base among baby boomer men, ages 40 to 65.  Last year, motorcycle sales for this age group was twice that of young men, ages 18 to 25. In Montclair, motorcycle sales exceeded $6 million in 2000 and sales are predicted to grow by 15% this year.

Montclair is a city of 650,000 residents with an average income of $28,000.  The city has seven motorcycle organizations and sponsors an annual cycling event as part of the city’s spring celebration.

Brian Jefferson, owner of Recycled Riding Dreams is one of most respected and best known motorcyclist in Montclair.  Brian is the president of the largest motorcycle organization in the city with over 800 members.  Last year, Brian lead the motorcycle parade during the city’s spring celebration.

Brian’s connection with the motorcycling community and the growing demand for quality used motorcycles and motorcycle parts will make Recycled Riding Dreams one of the most popular shops in the city.

1.1 Objectives

The objectives of Recycled Riding Dreams are:

• Capture the majority of the used motorcycle business in the Montclair.
• Offer our customers a superior service, at a low price.

1.2 Mission

The mission of Recycled Riding Dreams is to become the primary resource for used motorcycle parts in Montclair.

1.3 Keys to Success

The keys to success for Recycled Riding Dreams are:

• Customer referrals.
• Exceeding the customer’s expectation for quality, timeliness and price.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Recycled Riding Dreams will offer quality used motorcycles and motorcycle parts to a growing market of motorcycling hobbyists.  The shop will purchase used and damaged bikes as well as used motorcycle parts.

2.1 Company Ownership

Recycled Riding Dreams is owned by Brian Jefferson.

2.2 Start-up Summary

Brian Jefferson will invest $55,000 in Recycled Riding Dreams.  Brian will also secure a $20,000 loan.  The initial inventory for Recycled Riding Dreams will be $45,000. The focus of this inventory will be on engine and electrical parts. The source of these parts are motorcycle hobbyists who sell the parts in order to purchase upgrade parts for their own motorcycles.

The following table and chart show projected initial start-up costs for Recycled Riding Dreams.

Recycled Riding Dreams offers the following products:

• Used Motorcycles : These cycles have been inspected and occasionally reconditioned in order to offer the customer the best value.
• Used Parts : These quality parts include engine parts, bodywork, gas tanks, electrical parts, frame, and chassis wheels and brakes.

Market Analysis Summary how to do a market analysis for your business plan.">

Over the past ten years, biking has developed an entirely new customer base among baby boomer men, ages 40 to 65.  Last year, motorcycle sales for this age group was twice that of young men, ages 18 to 25. These two groups represent 80% of motorcycle sales. In Montclair, motorcycle sales exceeded $6 million in 2000 and sales are predicted to grow by 10% this year. The city has ten motorcycle organizations and sponsors an annual cycling event as part of the city’s spring celebration.

The demographics suggest that there is a large market for used motorcycles and motorcycle parts, especially among experienced bikers.  This is particularly important because the experienced customer will seek out a shop where the owner has a reputation for quality and service in the motorcycle community.

4.1 Market Segmentation

Recycled Riding Dreams will focus on two customer groups:

• Male baby boomers, ages 40 – 65.
• Young men, ages 18 – 25.

Strategy and Implementation Summary

Excellent word of mouth among motorcycle hobbyists is the foundation of Recycled Riding Dreams. The motorcycle community in Montclair is close and used by its members to locate resources and services. Each satisfied customer of Recycled Riding Dreams will bring in more business.

5.1 Competitive Edge

Brian Jefferson, owner of Recycled Riding Dreams is one of most respected and best known motorcyclist in Montclair.  Brian is the president of the largest motorcycle organization in the city with over 800 members.  He has been a motorcycle hobbyist for 15 years and has built a reputation for quality customizing of motorcycles. For the past five years, Brian has served as a resource in locating used motorcycles and motorcycle parts for hobbyists.

Recycled Riding Dreams’ competitive edge is Brian’s visibility in the motorcycling community.

5.2 Sales Strategy

Recycled Riding Dreams will open with a Customization Show and Competition.  During the first month of operation, Recycled Riding Dreams will offer a 15% discount on all purchases over $50.  Brian will also offer a standard 10% discount to members of the city’s seven motorcycle organizations.

5.2.1 Sales Forecast

The table and charts below show Recycled Riding Dreams projected sales forecast for three years.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Brian Jefferson will manage the daily operations of the shop.

6.1 Personnel Plan

Besides Brian Jefferson, Recycled Riding Dreams will have one additional employee.

Financial Plan investor-ready personnel plan .">

The following is the financial plan for Recycled Riding Dreams.

7.1 Break-even Analysis

The monthly break-even point is approximately $16,000.

7.2 Projected Profit and Loss

The following table and charts shows projected profit and loss for three years.

7.3 Projected Cash Flow

The table and chart show the projected cash flow for three years.

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

7.4 Projected Balance Sheet

The table shows the projected balance sheet for three years.

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5015, Motor Vehicle Parts Used, are shown for comparison.

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

Boom times in bike town: How a shop is picking up business during the pandemic

TEN days after enhanced community quarantine was declared over the entire Luzon, businessman Jose Dasas received a call from a friend, a fellow Rotarian who owned a chain of small groceries.

“Pare, may stock ka pa ba ng mga bike?”

Since September 1994, Dasas and his wife Corazon had been running a bike store business. From his time as a marine engineer, Jose had plowed his savings into the venture, initially based in San Joaquin, Pasig. More than two decades on, the couple now operate JC Bikes and Motorcycle Center, a pair of stores on the outskirts of Makati: one along Kalayaan Avenue, the other in Comembo.

“Pare, meron,” Dasas replied, no idea why his friend was looking for a bike at this time. “Saan mo gagamitin?”

“Pare, kailangan ko. Kasi mga essential kami. Hindi pwedeng isara ang mga tindahan. Mape-penalty ako sa munisipyo kung isasara ko ang grocery ko.”

Worried, his friend added that with no mass transportation available, his employees were telling him they couldn’t get to work. “Kailangan ko,” he begged Dasas. “Tulungan mo ako.”

And that’s when it dawned on Dasas that his friend was probably not alone in looking for bikes in the middle of a pandemic. He pulled out his entire stock from the warehouse.

In less than a week, it was all gone.

Jose and Corazon got to work calling their suppliers, all importers who brought in bicycles and parts from China, trying to secure as many stocks as they could. One supplier insisted that they wouldn’t be able to sell bikes on credit.

Dasas didn’t hesitate. “Ika-cash ko yan. I-deliver mo na, ika-cash ko.” He was able to secure a shipment of 96 bikes.

On April 5, Dasas opened a small window of his Comembo shop to accommodate buyers. The store itself was closed — they could just peek in and select what they needed. Pre-pandemic, the stock of 96 bikes would have taken perhaps 20 weeks to sell through. Customers snapped it all up within a week.

“Alam ko, masakit man sabihin sa iba, pero sa akin, mabait si Lord,” Dasas said in an interview with SPIN Life. “This is a good opportunity. Parang nagkaroon ng magandang opportunity sa negosyo namin ng bikes.”

Essential transportation

There’s no question: The bike business is booming.

“Bigla [silang] naging in-demand, naging essential,” Trade Secretary Mon Lopez told CNN Philippines’ “The Source” in a May 29 interview.

Under enhanced community quarantine, the usual modes of mass transportation — the jeepney, the bus, the FX — were not allowed to ply their routes. Frontliners, many of whom owned no cars, had no choice but to get to work on their own steam. Some of them had to endure walking for hours under the vicious summer sun just to get to work.

From the very first day of lockdown, private groups like Life Cycle PH began to raise funds to donate bicycles to frontliners. “Naisip ko at ng isang grupo overnight na kailangan natin dalhin ‘yung mga frontliners natin pauwi na safe na hindi naglalakad,” said Keisha Mayuga, Life Cycle PH’s founder, in an interview with 24 Oras .

On March 25 — around the time the grocery store owner was calling Dasas — the Pasig City government signed an executive order declaring bikes as an essential mode of transportation. Bicycle shops, the order said, would be counted as essential businesses.

In a way they had never been before COVID-19, bikes became a necessary and vital part of the country’s economic landscape.

“Dahil sa loob ng two months lang, at mag-te-three months na, dumami talaga ‘yung bisikleta sa kalye,” said Mayuga, speaking to Howie Severino as NCR moved into general community quarantine.

The government has sat up and taken notice.

Bike lanes are being set up along EDSA. A lawmaker is suggesting incentives and tax relief for bike commuters. The Inter-Agency Task Force, never one to waste a good acronym, even has two for bicycles: non-motorized transport or NMTs, and personal mobility devices or PMDs. Whichever one you choose to use, the IATF calls them “an ideal travel mode for social distancing.”

And Mon Lopez’s Department of Trade and Industry is looking closely at unscrupulous players who are leveraging the current bike boom to make a quick buck off customers.

Cycles of profit

Dasas knows all about the increased competition ever since people have caught on that the bikes business was suddenly a very good place to be.

“Kahit mga di marunong mag-bike, may bike business na,” he said wryly.

Many of the new entrants in the ongoing bike shop turf wars are online resellers, who, unlike Dasas, don’t need to contend with the costs of maintaining shops. While he’s willing to sell in bulk to businesses who need to provide two-wheeled transport for their employees, he limits sales to just two units when he finds out he’s dealing with someone who wants to sell his bikes online.

So what do these online sellers do? They go straight to the source.

With dealers proliferating, the bike supply across the country has been strained, Dasas told SPIN Life . Importers who could reliably give him 50 or 100 units before would suddenly only ship him 10. Worse, he’s even found himself on the losing end of a deal as prices skyrocketed with the increased demand.

“Tukso,” he jokingly calls the price war currently going on as sellers jockey for the limited supply of bikes in the country.

While he confesses that relations with some long-time suppliers have been strained as of late, he can’t say he blames them, either. “May nag-alok sa'yo, double the price. Di mo tatanggapin?”

The situation has boiled over to the point that customers, in need of two-wheeled transport of their own, are feeling the pinch of increased bike prices. The government has even considered stepping in.

In early June, DTI Undersecretary Ruth Castelo implored bike sellers to limit price increases to “reasonable” levels. She also said that the agency is also debating whether to classify bicycles as a basic commodity, which will effectively impose price controls.

A price freeze, in fact, was a suggestion put forward by Senator Francis Tolentino, who, during his time as chairman of the Metro Manila Development Authority, opened several bike lanes across the capital city.

Wary of surprise DTI inspections, Dasas has posted clearly visible price tags on all of his units.

Dasas admitted that this explosion of sales, while ultimately beneficial for the bottom line, has caused new business challenges to crop up. “Ako na ngayon ang nagmamakaawa sa [mga supplier],” he said. “Your money is nothing without supply.” Together with his daughter Jessa, he’s considering taking a more direct hand in the supply situation, to ensure his shops remain fully stocked.

Brave new bike world

Despite the challenge of supply and the gradual resumption of public transportation, Dasas says that business at JC Bikes and Motorcycle Center is still good.

He claims that on a good day, customers can snap up to 25 bikes by lunchtime.

“Before COVID, [nabebenta ko] lang mga lima, tatlo, ganun,” he said.

Another separate queue forms for repair and servicing jobs, which have also increased during the pandemic as flocks of new riders discover the inconvenience of a nail lodged inside an inner tube.

While they’re still very hands-on with the business, the couple’s four children have pleaded with their parents, who are both nearing retirement age, not to go down to the shop. (Jose and Corazon live a few floors above their Comembo branch.) For the most part, Jose follows their instructions, content with monitoring the floor with his CCTV cameras and issuing instructions via the wall-mounted public address system.

Visitors to the shop would often hear Dasas’ voice suddenly explode out of the speakers, warning them to maintain social distancing.

But there are times that Jose — to the chagrin of his daughter Jessa — insists on going down to the shop floor to assist a would-be buyer. “Customer relations iyan!” he defends himself to his daughter.

For first-time riders, Dasas — a member of the Makati Riders Club — always recommends getting the basics: a helmet and a blinker light. The correct bike size is also an important consideration. It shouldn’t be so low that your legs are bent unnaturally while you’re pedaling, but it shouldn’t be too high that it’s difficult for you to stand on the road while seated.

He sometimes recommends getting the so-called Japanese bikes: a simple, sturdy unit with a step-through frame so it’s easy to mount and dismount.

Most of all, though, Dasas has this one piece of very important advice. “Sumunod ka lang sa batas trapiko,” he said. “Please naman, sundin niyo lang iyan.”

After taking care of a few customers or checking out the shore, Dasas dutifully makes his way back to his upper-floor apartment. Health first, safety first, as he says. The threat of COVID-19 will be hanging over the Philippines for a very long time, and in our new life fighting against the shadow of the pandemic, Dasas believes the bicycle will play an important role.

“Yung Pilipino kasi, di prefer na bisikleta ang mode of transportation,” he said, speaking of life before the disease arrived. “Apat na gulong [ang gusto nila]. Ito na lang na-realize nila ngayon na kailangan din pala ang bisikleta.”

And as best as they can, Jose and his family will be around to help them find the bicycles they need.

Spin fans unite at the Spin Viber Community ! Join the growing community now and complete the experience by subscribing to the Spin Chatbot .

Get more of the latest sports news & updates on SPIN.ph

• spin life ,
• new normal ,
• News And Trends
• Music, Movies And TV
• Food And Dining
• Dating And Relationships
• Career And Money
• Travel And Living
• Spin Locker
• Sneaker Spotting
• Health And Fitness
• Spin Doctor
• Leaderboard
• Courtside Crush
• Spin On Wheels
• Terms of Use
• Privacy Policy

NPC Seal of Registration

Spin.ph has been granted the NPC Seal of Registration in recognition of the successful registration of its DPO and DPS

We use cookies to ensure you get the best experience on Spin.ph. By continued use, you agree to our privacy policy and accept our use of such cookies. Find out more here .

• All Collections
• Eunorau Ebikes
• Bakcou Ebikes
• Nakto USA Ebikes
• Aostirmotor Ebikes
• Fiido Electric Bikes
• Velowave Ebikes
• X-Treme Electric Bikes
• See Full List of Brands
• Best Fat Tire Electric Bikes
• Best Folding Electric Bikes
• Best Ebikes for Women
• Ebike Range Calculator
• Ebike Classes Explained
• Shipping | Returns | Cancellations
• Privacy Policy
• Become a Supplier
• Author Biographies
• Terms & Conditions
• ADA Accessibility Policy
• RGE Extended Warranty
• Manufacturer Warranties
• Ebikes Under $1,000
• Customer Reviews
• Active Seniors
• Call 888-883-3350

Your Cart is Empty

• $0 Subtotal

Taxes and shipping calculated at checkout

Have Questions? Call 888-883-3350

How To Start An Electric Bike Business (Updated Guide)

With the popularity of ebikes on the rise , many people want to know how to start an electric bike business. 

As one of the leading professionals in the ebike industry, and someone who started his own ebike business while holding down a full-time professional job, I wanted to create this Complete Guide to Starting an Ebike Business, to help you get started with this fun and lucrative business model.

In this Guide we discuss some key business decisions to think about before moving ahead with your own ebike business. There are many things to consider:

• Do I want to rent ebikes or sell ebikes? Which is more profitable?
• How much does it cost to start an ebike business?
• Are licensing programs with Pedego or Rad worth the cost?
• Which brands and models should I start my fleet with?
• What kind of business structure should I set up?
• What licenses and permits do I need to get before opening?
• Do I need a website with a booking engine?
• What kind of marketing will I need to do?

All of these questions and more will be answered in this Guide. If you want to get started right away, with no upfront investment, check out the RGE 50/50 Brand Ambassador Club . Basically, as an Ambassador, you send people to my site Really Good Ebikes. When they make a purchase, you and I split the profit 50/50.

Elkin E-Bikes & Stuff , an electric bike rental business in Elkin, NC purchased their fleet from Really Good Ebikes, and they get paid every time one of their customers buys a bike from us.

Really Good Ebikes offers this Guide free of charge, and we will do everything we can to help you open your own ebike business.

I often get calls from people who are semi-retired but still active in life, who want to learn about starting their own electric bike rental business. Some have prior business experience, but for many this is a completely new endeavor.

I'm here to help. If you choose to buy your rolling stock from me while getting your ebike business up and running, that would be great. And if you want to work together to make future retail sales through our ecommerce website, even better.

I have well established relationships with each of the brands I carry, and can provide you and your customers with the highest level of support and satisfaction.

The Opportunity

My company Really Good Ebikes does not offer franchising or licensing. We offer free business coaching to Ambassadors, who earn 50% profits on all leads they generate that result in a sale.

Should I Rent Or Sell Electric Bikes? Which is More Profitable?

This is a key question, and it's an important one to ask early in your business planning process.

This will be your own business, for you to build and run as you like. You can choose to rent ebikes, and even give electric bike tours if you live in an area with nice bike trails. Depending on your location, you can expect to charge about $50 per rental hour.

Another approach is to offer free demo rides, using a try-before-you-buy business model. In the same amount of time you earned $50 from a rental, you could have earned $500 from a few sales.  

But just like any business, it will rely on a couple of key factors, which you have to get right to succeed.

First, you should love interacting with people, sharing with them the joys of ebike riding. Remember the first time you rode an ebike, and how magical it felt? Now you can share that experience with others.

Second, you should have an entrepreneurial mindset, believing that anyone who works hard on a good idea can succeed in business. If you need help breaking through a mindset block, give me a call. This is perhaps the most important skill, and will have a big impact on the potential success of your business.

Starting an electric bike business can be a great entrepreneurial endeavor, as either a part-time side hustle or a full-time venture.

Electric bike demos, rentals and sales are not mutually exclusive, and you can run the business and offer the services you like.

If you look for them, you will see ebikes around crowded beach towns, in mountain resort communities, and in many other locations where other tourist attractions and operators are present. Look for places with great foot traffic. Start thinking about how much space you will need, and who your target customer is.

There are a number of things to consider before starting your business, including the proper business structure, permits, and the profit potential. It is important to understand what your upfront costs will be, and also to have a good idea as to how long it may take to turn a profit based on a number of bookings your business can handle, or sales you can generate.

Pro Tip: If you wait until the end of this Guide, we will reveal the hidden money-making secret that many ebike rental companies completely fail to tap into.

How Much Does It Cost To Start An Electric Bike Business?

Sample cost analysis.

There will be some up-front costs to your business that we will go over in detail, but to understand your profit potential long-term, here are some numbers to consider.

Your revenue potential will essentially be a function of how many ebikes you have in your inventory, how often you demo them or rent them out, and conversion rate. What I mean by conversion rate is the number of customer engagements that result in a sale.

For instance, let's say that you have 4 ebikes in your fleet to start. You rent them out at $50/hour, and estimate each bike will get rented 2 times per day. That's $100 per bike/per day, or $400 for your fleet of 4. Assuming you run your business 5 days per week, your gross revenue would be about $8,000/month.

Let's also assume that during this same sample month, you offered demo rides and talked with rental customers about their interest in buying an ebike. It's a natural conversation to have at an electric bike rental shop, since many people want to try before they buy. That's why free demo rides is such a no-brainer. You help people decide which ebike would be best for them, or you give me a call and I can do helping. With this in mind, expect to sell at least one ebike per day, with a net profit of $150 (varies by model). That would be about $3,000/month.

So, using these very conservative figures, you could expect to gross about $11,000 per month with a 4-bike ebike fleet.

For a commercial setting, you should get ebikes for your fleet that are heavy duty, easy to operate, fun to ride, and desirable to your customer base. Your upfront cost for ebikes like this could be $2,000/bike, assuming you buy a spare battery for each unit. So your starter fleet of 4 bikes will cost about $8,000, and you will need to spend about $1,000 more on a decent bike maintenance shop setup, with tools, a work bench and bicycle stands.

Are Licensing Programs with Pedego or Rad Power Bikes Worth The Cost?

When starting an electric bike business, you should give serious consideration to the large affiliate programs out there, and see if one might be a good fit for you.

Pedego Electric Bikes

The Pedego Electric Bikes Own A Store Program says that "Pedego is built on two basic principles. First, delight our customers; and second, support our stores. Without Pedego stores, there would be no Pedego. Your success comes first!"

"Pedego’s world-class support takes all the guesswork out of owning a store, saves you a tremendous amount of time and money, and really sets you up for success. All with no royalties or fees!"

So how much does it cost to open a Pedego store? Pedego stated in 2016 that the average cost to open a store was about $75,000 . It has certainly increased since then.

“Ninety percent of our store owners are Boomers who were displaced by Corporate America or retired from other careers such as teaching and the military. Today, as owners of their own electric stores, they are experiencing second careers as entrepreneurs and finding success selling to other Boomers,” said Don DiCostanzo, Co-founder and CEO of Pedego Electric Bikes.

Targeting Boomers as store owners is a proven recipe for success, according to DiCostanzo. “Boomers grew up riding bikes as kids and want to experience that joy again and share it with others. Electric bikes make it possible. That’s why our slogan is ‘Hello, Fun!’”

According to DiCostanzo, the average cost to start a store is $75,000, which is significantly lower than most franchise opportunities, and there are no franchise fees because Pedego is not a franchise. In fact, according to DiCostanzo, the new store owner’s entire investment goes into the store.

Benefits of Pedego store ownership include:

• "Affordable" entry point as compared to franchises, starting at $75,000, depending on location
• No franchise fees; the entire investment goes into the store and product
• Support in finding a store location and negotiating the lease and signage
• Store set-up support, which includes build-out, point-of-sale equipment and inventory
• Negotiated discounts for bike accessories and other items to sell in your store
• Technical training on Pedego bikes, including assembly and repairs
• Sales and marketing training to help attract customers and sell bikes
• Marketing support, which includes website creation and social media platform set-up
• Online dealer support site with photos, graphics, inventory information and more
• Annual dealer meeting with the Pedego leadership team and other store owners
• Candidates are considered based on unique criteria including personality, general business experience and enthusiasm. Prior retail or bicycle industry experience is not needed. If you own or have rented a Pedego bike, your application goes to the top of the pile.

Rad Power Bikes Commercial Partners & Fleet Sales Program

Rad Power Bikes is the largest ebike company in the US. They have an awesome lineup of models at good prices. Unfortunately for me, they do not work with online-only stores like Really Good Ebikes. But they do work with commercial partners. As they describe it:

So, what can you make if you join the Rad Power Bikes program? You can read the entire Rental Fleet and Sales Referral Program Agreement , and decide for yourself. Under their program:

A minimum purchase of ten (10) bikes is required to establish a preferred rental  fleet (“Rental Fleet”), with additional discounts and extended payment terms at 15+ and  25+ unit benchmarks, as set forth below.

Discount Terms

• 10-14 units: 10% off MSRP
• 15-24 units: 15% off MSRP
• 25+ units: 20% off MSRP

Sales Referral Program Features

3. Rad Power Bikes’ retail sales model is exclusively consumer direct. As such, Rad Power Bikes does not engage in third party supplier or drop ship relationships; all orders, even those qualifying for the Sales Referral Program, must be placed and fulfilled through our website.

Really Good Ebikes 50/50 Ambassador Program Ambassador

Unlike Rad and Pedego, we do not have expensive startup fees or low commission reimbursement agreements with extensive restrictions. Whether you want to buy a fleet of 10 ebikes and open a retail/rental store, or you just want to start with 1 bike, our 50/50 Ambassador Program is unique.

If you want to start your own ebike business, Really Good Ebikes can provide services in 3 specific areas.

Here are a few other examples of the upfront costs to buy your initial inventory, which were developed for an actual customer of RGE.

Here's another recent quote we worked up for an actual Partner (January 2022):

The beauty about ebike rental businesses is that they are easy to run, and easily scalable. If you start off slowly with just two, four or six ebikes [pro tip: ebikes are rented and sold in pairs], your investment will be minimal, and the scale potential will be great.

When things start to work and you can see what your customers really want, then you can expand and grow - the only limit with be where to store all your ebikes. There are major ebike rental companies that have over 40 units in their inventory, which you can imagine builds up the profit potential.

Getting the Right Equipment for Your Electric Bike Rental Business

Which brands and models should i start with.

In order to make sure you can provide the best service to your customers, you need to make sure you have the best equipment, and the right tools to keep your fleet running smoothly. Here are a couple of important concepts to understand.

Some owner-operators might be tempted to buy ebikes on Amazon or Aliexpress, because they are less expensive. Or maybe they get ebikes that appeal to their personal riding preferences, without considering the needs of their customers and other commercial aspects of the business (ease and frequency of regular maintenance; high-quality components; resale potential).

There are hundreds of ebike brands in the US today , so picking the right brands, and the right ebike models for your rental startup business will be important.

Typically our most popular models sell for $1,000 - $2,000, while higher-performance models  start at around $1,500 and top out around $6,000. 

If you are serious about your business you should not take any chances buying products that are not suited for your use. It will likely cost you more money in the long run than you saved initially.

Some of the best performing electric bikes in rental and retail spaces include the Eunorau Fat-HD , Eunorau E-Fat-Step , Swell Summit LR2 Step-Thru Cruiser , and the Revi Cheetah Fat Tire Electric Bike .

Miscellaneous Up-Front Costs

Aside from purchasing your first fleet of ebike, starting your business will require some upfront costs that you should consider. These costs can vary significantly depending on how you set up your business and daily operations. For example, if you will meet your customers at a designated location, you may not even need a storefront to begin. That saves a ton in tenant improvements, rent and insurance.

Here is a list of things you should consider researching further:

Business Set Up :  When setting up your business, you want to separate it from yourself as a person. This means creating a company that owns the business, registering that company with a secretary of state, and obtaining any local business permits that might be applicable. You will also need to open a business checking account. Regardless of what state you live in, I would highly recommend registering your LLC in the State of Wyoming. They have no state tax, and everything can be done online and with a registered agent. Make sure the bank you choose supports the payment processing you want for your business (credit cards & PayPal).

Insurance :  Once you know the kind of business you will be running, consult the operators of similar businesses outside of your area. Find out what kind of insurance coverage they have, and if they like their provider. Next, contact a few insurance companies and get quotes for your business. The types of insurance you should consider include:

Website: You may think you need your own website right away, but many businesses get by simply using social media platforms to establish their online presence. You can easily create a FaceBook business page, and use Google My Business to let people know you exist. Some businesses get exposure on TikTok or Instagram. The main thing to consider is where are your customers, and how are they going to find you? Foot traffic is the best, but even then, people are using Google Maps to discover and navigate to local businesses. As you grow your fleet, another resource for your business is Bike Rental Manager software, which helps you run your entire electric bike business.

Marketing & Advertising : You will want to set aside a budget to advertise locally in order to get your first customers. This could be as little as a few hundred dollars, or much more, depending on how much money you are willing to invest to get your business up and running. Of course, if you simply add your website address and phone number to a plate that you put on each eBike, the will find an incredible (and free) source of advertising.

Legal Material:   In order to protect yourself and your business from any kind of litigation, it makes sense to have a standard contract and liability waiver that you will have customers sign before renting or even trying an ebike. Forms for this are readily available online for free.

Researching The Market

Starting an ebike rental business could be an incredible opportunity if your local market is underserved. Conversely, it might be a tall order to wiggle your way into an already crowded market. There are a few ways to approach this.

The Competition

Your first order of business is to find out how many businesses are actually offering ebike tours and rentals in the geographic area that you want to service. Luckily, that is quite easy to find out these days by doing a local search on Google or Yelp. Some key things that you want to take notice of:

• How many businesses are offering bicycle or ebike rentals?
• What prices are they charging? Find out what the going rate is, and what additional services they might be providing. For example, are they offering guided tours? Are they offering snacks or meals as part of longer tours? This will give you an idea of your profit potential, as well as how competitive the market may be.
• How well is the competition presenting itself? Are their websites professional looking, or do they look very out of date and confusing? That may be an opportunity to differentiate yourself.

Once you have taken stock of what the market looks like then you can start determining whether a real opportunity exists. Pro tip: Even in a what appears to be a crowded tour rental market, you can open a business and be very successful by having a “unique selling proposition.” Think about it - how many restaurants are in your town? How many hotels? Competition is a good thing - it’s a strong indication of market demand.  

Marketing Your Ebike Business

In order to get your first customers, you need to let them you know you exist! Local marketing has completely changed, largely because of the Internet. It used to make sense to take out a few ads in the Yellow pages and other local magazines, but that simply isn't the case anymore.

If you aren't connecting with your customers online then you are missing the boat. Your first order of business will be to get your online affairs in order. Here are a few key places to get you going.

• Trip Advisor
• Yahoo Local
• Google My Business

Local Advertising Can Be Extremely Effective

Online advertising technology has gotten extremely advanced, and local businesses can pinpoint their potential audience with greater accuracy than ever before. When you are first starting out in your ebike business it will make sense to set aside a budget for advertising in the beginning. Your goal is to book new business, impress your clients, and have them spread the word online and in their local community.

Right now the best bang for your buck will likely be Google and Facebook. They are the two most-used websites out there, and they offer the best advertising products for local businesses.

You can read up about Google's Adwords local program   here . The key reason why Google is so effective is because you are capturing a potential customer at the moment of intent. If you are able to serve up a relevant advertisement to a family who are looking to find a local ebike rental business for their visiting family, you can make sure that you show up.

The only downside is that pay-per-click advertising has gotten very competitive, and you could be competing against other ebike rental businesses for those spots. The best thing to do is to set aside a test budget and track very closely how much you are paying for new leads.

Facebook offers a different local advertising product, which you can read more about   here . They allow you to target various demographics and geographic locations with impressive precision. You can offer deals, drive people to your site, and various other methods. Facebook is constantly making their technology more effective, which is why it has become a preferred choice for local marketers.

Additionally, you could experiment with local deal sites like  Groupon in order to book your first set of clients.

Get Involved in the Community

Another effective tool in promoting your business is good old-fashioned networking. Get a bunch of professional-looking business cards printed from a service like   Vistaprint , and get prepared to pound the pavement!

There are plenty of ways to get creative with this approach. One way is to make sure you are connected with local companies that are associated with your eBike rental business. For example, there could be local tour companies that don't offer eBike rentals, and you could make sure they know you are available to supply them if the need arises.

Additionally, you could get involved with local organizations like   The Rotary Club . Anything you can do to make yourself visible to members of your community will help keep your ebike business in their minds if they eventually will need your services, or a friend of theirs asks.

Wrapping it Up - Will You Take the Dive into starting a eBike Rental Business?

We've covered a lot! By now you have a general overview of steps you should consider before starting your ebike business. Here is a brief recap:

• Size up the opportunity - evaluate your competition and the going rate for eBike rentals in your area. This will determine your profit potential.
• Get the right equipment - Commercial eBikes are a must for your venture. You can see our selection of appropriate inventory here.
• Don't forget about miscellaneous costs - There could be a few things to consider outside of just purchasing your fleet of eBikes.
• Have a local marketing plan - people in the local market need to know your ebike business exists so they can hire you!

If you are planning on taking the plunge we wish you the best of luck.   Keep us in mind for your ebike rental business needs!

As promised, we wanted to save the best for last. When you run an ebike rental company, for most of your customers this will be their first experience riding an ebike. And if you know anything about ebikes, you know that the first ride is simply awesome and amazing. More than 50% of first time ebike rental customers ask about buying an ebike. And you are the company who they have come to know, like and trust - so they will want to buy their new ebike from you.

After their rental, you will make it incredibly easy for them to buy their new ebike online, so in 5-7 days, they will have a brand new ebike delivered to their home, and you will reap the benefits. If you’re worried about the cost and complexity of setting up a sales channel, don’t give it another thought. That’s where Really Good Ebikes comes in.

We have spent the last 3+ years developing relationships with over 50 ebike brands, and we have an ecommerce site that’s built to sell. All you have to do it open a browser, show your customers what their options are, and close the sale. We will take care of all the fulfillment, so you can focus rentals and tours. For each bike you sell, you’ll get 50% of the profits- which is amazing, since the ebikes really sell themselves. All you have to do is open the browser, and point your customers to the BUY NOW button.

Cycle House

Cycle House Franchise Details:

• Industry: Services
• Category: Automotive

Royalty Fee: N/A

• Marketing Fee: N/A
• Franchise Fee: PHP 50,000
• Investment Capital: PHP 298k
• Franchise Terms: 3 years
• Coverage: N/A
• Origin: N/A
• Since: 2010

About Cycle House Franchise

Dubbed as the ‘Ang #1 Motorcycle at Bike Shop ng Bayan,’ Cycle House provides the best and professional repair services for motorcycle and bicycle users. It is the one stop shop for motorcycle and bicycle needs: parts accessories, services. It is owned by Mr. Jeff Chua.

Why invest in Cycle House?

Because of it’s huge market

• More than half (around 60%)of registered vehicle in the country
• 3.2 million are motorcycle, scooters, or tricycles (excluding the unregistered)
• Sales of motorcycle units are still growing
• Growing number of people acquiring bicycle as form of exercise, hobby, and even as a sport
• Philippine government and the World Bank invested $1.3 M to push bicycle use as mode of transport

Because we can offer something new in the market

• Professionalized
• Superior customer service
• High quality parts
• Trusted Brand
• The FUTURE…What we will offer in the market

OTHER REASONS WHY YOU SHOULD INVEST ON THIS FRANCHISE?

• By franchising with us, you join the nearly 10 branches with CycleHouse proven business concept
• Get the products at lower prices.
• Our Originally Designed store and Business System are DIFFERENT that catches a lot of attention.
• If you will be renting, this entails low cost because you don’t need a big space.

Today, Cycle House is under the management of Zylus Concept, Inc. It is the first in the industry to offer franchising option for a motorcycle and bike business industry.

Cycle House Franchise Products or Services

A one stop shop for motorcycle and bicycle needs:

• Parts accessories

Cycle House Franchise Inclusions or Package

FRANCHISE PACKAGE INCLUDES THE FOLLOWING to START THE BUSINESS:

• Operations Manual on how to run the business profitably.
• Store design, merchandise set-up, local market study and store opening assistance.
• Supervisor, Staff and Bike Mechanic Training.
• Initial Stocks and Inventory Management System and POS (software).
• Store/Product signages and marketing collaterals. 
• Right to use the Cycle House trademark and logo

Cycle House Franchise Application Process

Cycle house franchise contact details.

Phone/Mobile Number: 02899-9699

Emaill Address: [email protected]

Website: ​​​​​​​www.cyclehouseph.com

Cycle House Franchise Business Address

606 Araneta Ave. Brgy. Tatalon, Q.C. Philippines

www.pfa.org.ph www.cyclehouseph.com www.facebook.com/cyclehousephilippines

This post is not yet verified by the owner. Information and images are from the sources mentioned above.

Ultimate Guide to Franchising

Avoiding scams, making smart investments, and better decisions.

The franchise industry is booming, and entrepreneurs are wondering about how this sector works. This ebook aims to help aspiring franchisees achieve their business goals.

Recommended articles

7 Easy Steps to Boost Your Self-Confidence (and some extra…

Best digital marketing tools in 2023 to help grow your…, 10 practical ways to save money while shopping online, 15 best credit cards in the philippines 2023, 30 top searched franchises in the philippines in 2022, 30 best products to sell online in the philippines (2023), 10 top coffee shop franchises in the philippines, the top 15 richest filipinos (2022), top 15 corporations in the philippines to grow your career…, how to get a business loan in the philippines, 15 ways to achieve financial freedom, most iconic and other promising successful filipino…, 30 top searched franchises in the philippines in 2020, how to select a franchise location in the philippines, comprehensive guide to franchising in the philippines (2020), how to select a franchise in the philippines, why should you be franchising when you have other options, why you should franchise in the philippines now (2020), most read articles.

15 Business Trends in the Philippines (2023)

16 best milk tea franchises in the philippines (2023), your guide to starting a water refilling station in the…, great business ideas to pursue this 'new normal', 30 practical tips on saving money for filipinos in 2023, top 32 online and home based jobs in the philippines (2023), 20 passive income ideas in the philippines (2023), ultimate guide in creating a business plan in 2020, 18 best life insurance in the philippines (2023), 20 best investments before retirement in philippines (2021).

Other related franchises

Rapide Auto Service Experts

Type: General Services

Terms: 10 years

Royalty Fee: 5%

Investment Capital: PHP 4m - 7m

Bali Bliss Nail and Day Spa

Type: Beauty and Wellness

Terms: 6 years

Investment Capital: PHP 1.6m

The Dog Spa

Investment Capital: PHP 1.6m - 2m

Investment Capital: PHP 2.1m

Beauty and Beyond

Terms: 5 years

Investment Capital: PHP 1.8m - 3.5m

Triple Luck Brow & Nail Salon

Terms: 7 years

Investment Capital: PHP 1.2m

Be informed with the latest Franchise

Ultimate Guide to Franchising Avoiding Scams, Making Smart Investments, and Better Decisions

Quiz: Are you suited to become a Franchisee?