It is located in a heavily trafficked, university-focused area. Hub first began investigating the ownership of a bike business two years ago, however, the local Metroburg market seemed saturated with shops.
Strategic Analysis with current research! The Company was founded in by John Doe.
Doe has already begun sourcing a number of wholesalers that will provide the business with its expansive inventory.
The Company will also generate secondary streams of revenue from the sale of bicycle repair services, which will be provided on site.
This is an important revenue stream for the business as the margins generated from this segment of the business are very high.
Additionally, the business will be able to generate addition sales of bicycle parts via this segment of the business. The third section of the business plan will further describe the services offered by the Bike Shop. The interest rate and loan agreement are to be further discussed during negotiation.
Doe has more than 10 years of experience in the retail management industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations. Doe expects a strong rate of growth at the start of operations.
Below are the expected financials over the next three years. Doe intends to implement marketing campaigns that will effectively target individuals and biking enthusiasts within the target market. The Company is registered as a corporation in the State of New York. Below is a breakdown of how these funds will be used: Doe is not seeking an investment from a third party at this time.
Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Bike Shop.
Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings. Doe intends on carry a large and diverse line of mountain bicycles, sport bikes, BMX style bicycles, and racing bikes for sale to the general public.
The Company will also regional distributors and wholesalers that will provide the business with brand name inventories. Manufacturers that the Company will carry include, but are not limited to: As stated in the executive summary, this is an important revenue source for the business as it will provide the Company with high margin income.
Additionally, part sales will be made to customers through this segment of the business. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid, at which point the economy will begin a prolonged recovery period.
In turn, customers may have less discretionary income, which may translate into lower sales for the business as it begins its business operations.If you are looking for a sample bicycle shop business plan template, here is a business plan for starting a bicycle retail shop and free feasibility study.
At Full Cycle Bike Shop, we provide quality and affordable used bikes and repair services. Youth interns learn both bike mechanic and basic business skills and play a significant role in running our non-profit bike shop.
BUSINESS PLAN Bikes that give back Supporting homeless youth and our community through bikes, business, and relationships by , the success of Full Cycle Bike Shop and paid internship program homeless youth learn bicycle mechanics and basic business skills while gaining practical job experience.
“I want to use my Full Cycle. Many shop owners often do not take a wage in the early years, and put all the cash back into their business. Financial control and oversight are fundamental to the development and long term future of a successful cycle retail business. University Cycle Works retail bicycle shop business plan products and services.
University Cycle Works is bicycle specialty store, offering retail sales of new bicycles, parts and accessories, clothing, and maintenance and repair service. Research and build a sound business plan. Planning, organizational skills, and high energy are prerequisites for success in the bicycle business.
Financial management can be challenging in a low-margin, highly competitive industry, and studies show the most profitable shops today deliver excellence while also controlling costs.