bike service center business plan pdf

Bike Shop Business Plan PDF Example

• March 5, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful bike shop. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your bike shop’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a bike shop business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the retail industry, this guide, complete with a business plan example, lays the groundwork for turning your bike shop concept into reality. Let’s dive in!

Our bike shop business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the shop’s operations, marketing strategy , market environment, competitors, management team, and financial forecasts.

• Executive Summary : Offers an overview of your bike shop’s business concept, market analysis , management, and financial strategy.
• Shop & Location: Describes the shop’s design, features, and why its location is strategic for cyclists.
• Products & Services : Lists the products and services provided by your bike shop, including bike sales, repairs, and pricing structure .
• Key Stats: Shares industry size , growth trends, and relevant statistics for the cycling market.
• Key Trends: Highlights recent trends affecting the cycling sector, such as the rise in eco-friendly transportation and e-bikes.
• Key Competitors : Analyzes main competitors in the area and how your shop offers a unique value proposition .
• SWOT: Strengths, weaknesses, opportunities, and threats analysis.
• Marketing Plan : Strategies for building brand awareness and retaining customers.
• Timeline : Key milestones and objectives from start-up through the first year of operation.
• Management: Information on who manages the bike shop and their roles, emphasizing experience in cycling and business management.
• Financial Plan : Projects the shop’s 5-year financial performance, including revenue from sales and services, expenses, and profit forecasts.

Bike Shop Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your bike shop’s business plan, providing a succinct overview of your shop and its offerings. It will highlight your market positioning, the array of bicycles, accessories, and repair services you offer, its location, size, and a sketch of daily operations. 

This section will also delve into how your bike shop will fit into the local market, including an analysis of direct competitors in the area, identifying who they are, as well as your shop’s unique selling points that set it apart from these competitors.

Moreover, it should cover information about the management and co-founding team, outlining their roles and contributions to the bike shop’s success.

Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be included to give a clear overview of your bike shop’s financial strategy.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

For a Bike Shop, the Business Overview section can be effectively divided into 2 main parts:

Shop & Location

Our bike shop features a welcoming, well-organized layout designed to optimize customer experience. Located near popular cycling trails and with ample parking, it’s ideally positioned to attract cycling enthusiasts of all levels.

Products & Services

We offer a wide selection of bicycles, including mountain, road, and electric bikes, alongside essential cycling accessories and gear. Our services range from basic tune-ups to comprehensive repairs, all priced competitively to provide great value. Special offers and loyalty programs are in place to reward our returning customers.

Make sure to cover here _ Shop & Location _ Products & Services

Market Overview

Industry size & growth.

In the Market Overview of your bike shop business plan, begin by assessing the size of the cycling industry and its growth prospects. This analysis is key to understanding the market’s breadth and spotting opportunities for expansion.

Key Market Trends

Next, delve into current market trends , such as the rising consumer interest in health and fitness, the growth in urban cycling, and the surge in demand for electric bikes. Highlight the consumer shift towards specialized bikes for different terrains and purposes, and the increasing emphasis on sustainable and eco-friendly transportation options.

Key Competitors

Lastly, examine the competitive landscape, which spans from high-end specialty stores to affordable mass-market retailers, as well as the growing online sales of bikes and accessories. Point out what sets your bike shop apart, whether it’s through superior customer service, a diverse product range, or expertise in specific types of cycling.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

First, conduct a SWOT analysis for the bike shop , identifying Strengths (such as a diverse range of quality bikes and cycling expertise), Weaknesses (like limited market reach or intense local competition), Opportunities (for instance, the growing interest in cycling as a fitness and leisure activity), and Threats (such as economic downturns impacting discretionary spending on hobbies).

Marketing Plan

Next, craft a marketing strategy that details approaches to draw and keep customers through focused advertising, seasonal sales, a dynamic online presence, and participation in cycling events and local community activities.

Lastly, establish a comprehensive timeline that marks key milestones for the bike shop’s launch, marketing initiatives, customer base development, and potential expansion plans, ensuring the business progresses with clarity and intent.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the bike shop’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the bike shop toward its financial and operational goals.

For your bike shop business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your bike shop’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your bike shop business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Privacy Overview

• Business Ideas
• Grow Your Business
• Online Business
• Internet Marketing
• Use Of Cookie

The Most Profitable Food Franchise for Sale to Invest In

15 profitable business ideas & opportunities in south africa for 2024, starting a food truck business in new zealand – procedure, permits…, 7 profitable business ideas & opportunities in 3d printing technology, starting a pool cleaning business – profitable business plan sample, how to work effectively with a local marketing consultant, the business of opulence: how luxury hotels stay ahead in the…, 10 situations when your business should consult an employment attorney, top tips for success as a new e-commerce firm, partnering with an amazon fba prep centre: what to look for…, examining the top challenges faced by start-ups in australia, peter’s success: navigating nyc’s vacation rental business legally, how artificial intelligence is changing appraisal management and how to adapt, starting a small business in australia – an overview, find the perfect led display rental for your business needs, 5 reasons to combine dropshipping with shopify, 5 new online business trends for 2024, andrew’s inspiring blogging success: from passion to prosperity, 5 ways to make money from home right now, success in e-book publishing business: a journey from dream to reality, seo tactics tailored for the hospitality industry, marketing the unique: strategies for promoting boutique hotels in a competitive…, 4 ways to optimize underperforming email campaigns, how to create product descriptions that convert, bike service center business plan – how to start & profit margin.

Being in the service provider business has the potential to be highly profitable, provided that you start your trade in a sector that is high in demand. Vehicle servicing is one such sector that is always in demand. What with the tremendous increase in the number of people owning cars and bikes for their daily travel requirements, bike servicing is highly in demand. It is not always feasible for an individual to go to a bike repairing center or a garage to get their bike fixed. To address this problem, you can start your own bike servicing center. It can be built into a chain of centers that makes bike servicing facilities easily available to people. Since investing time into these jobs is an issue for most people these days, a bike service center where everything is taken care of simultaneously is quite a welcome move.

Location Selection

To start a full-fledged bike service center, the first and foremost requirement is space. Ample space is required for the different kinds of bike servicing facilities that you would need to provide. The locale is also quite important. Do your research and accumulate data as how many families in the vicinity of your desired location own bikes and other two-wheelers. This is an important step as it would help you start your business on a note of profit. Plus, you also need to look into the accessibility of your service center, so that you get exposed to larger client base.

Next up, you need the license to start your business. There can be much legality involved that need to be addressed before you start running shop. Once everything is in place and you have acquired a suitable place to start your business, you need to hire a team of workers who are well-versed in bike servicing.

Hiring Staff & Training

You need an expert team so that the quality of the services that you provide is not marred in any way. After all, the better the quality of services you provide, more will be the increase in your business’ popularity. Word of mouth is the most basic and most effective form of advertising in this field. Make a list of all the services that you would be providing and be sure to advertise them well in order to build your customer base.

Marketing Your Business

You could start your own website which contains all the details of your business. It is the digital age where everything is easily available at the click of a few buttons. Use it to your advantage to promote your business. Keep your rates as competitive as possible and it is sure to give your business venture a boost. People these days are always looking for services that are hassle-free and less time consuming. If the services provided are up to the mark and the client is satisfied with them, you can be sure to have made a loyal customer for your business. Therefore, always make sure that you do not compromise on the quality of the service that you provide.

Pickup & Drop Facility

You can offer pickup and drop facility of bikes from home to service center. This will result in hassle free experience of your clients and they will be happy with this service. No one wants to spend their weekends for this kind of works, that’s why this pickup/drop facility will generate more customers to your service center.

Maintain A Mobile App

You can also create a mobile app which will help in sending notification to your customers about the servicing process, current progress and customers profile.

A bike or any two-wheeler sees a lot of wear and tear due to frequent use and therefore, also requires frequent maintenance. This makes it a really feasible to test your entrepreneurial skills by setting up your own bike service center. You could work independently or get associated with some of the leading bike brands to build more credibility for yourself as a bike service care provider.

RELATED ARTICLES MORE FROM AUTHOR

Starting a food truck business in new zealand – procedure, permits & license, starting a new business abroad: is it worth it.

I want to open a exclusive two wheeler service center in my city Agra,

i want to open a service centre in my city jamngar please guide me the same

I want to open two weeler garaz in mumbai bhayander

i Request to open mutilate brand Service Center at Chennai.

I want open in ghazipur up guide me about

LEAVE A REPLY Cancel reply

Save my name, email, and website in this browser for the next time I comment.

TRENDING ARTICLES

20 best franchise business opportunities under 10k dollars in the usa, 20 best business ideas & opportunities in dubai – uae.

• Advertise With Us
• Privacy Policy

Privacy Overview

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 Template [Updated 2024]

Bike Shop Business Plan Template

If you want to start a successful bike shop business or expand your current bike shop business, you need a business plan.

Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of bicycle shop business plans.

The following bike shop business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want.

You can download our Ultimate Business Plan Template (including a full, customizable financial model) to your computer here.  

Bike Shop Business Plan Example

I. executive summary, business overview.

Located in the heart of [Location], [Company Name] is a new bike shop that sells a wide variety of bikes, e-bikes, accessories, bike parts, and gear. We carry multiple models from top brands, including Trek, Specialized, Giant, and Cannondale. Whether our customers need a bike for commuting, mountain biking, or occasional use, we have everything a bike enthusiast could ever need.

We are committed to providing our customers with the best possible experience, from the moment they walk through our doors to the moment they ride away on their new bike. With our expert team and top-notch customer service, we expect to be the #1 bike shop in town within the next five years.

Products Served

[Company Name] sells a large inventory of bikes, e-bikes, and accessories. Some of the brands we sell include:

• Specialized

We also carry a wide variety of accessories, including:

• Water bottles
• Cargo cages

Customer Focus

[Company Name] will serve the residents living within a 10-mile radius of our location. The demographics of [Location] are as follows:

• Local Residents: 87,451
• Average Income: $65,000
• Median Age: 32 years
• Local workers: 32,752
• 54% in Mgt./Professional occupations

Management Team

[Company Name] is led by [Founder’s Name], who has been in the bike industry for [X] years. During his career, he has worked for several high-profile bike shops across the US. [Founder’s Name] has a deep understanding of the bike industry, from the latest trends to the needs of different types of cyclists. He is also a skilled mechanic and can repair and maintain any type of bike. His experience, knowledge, and skillset are [Company Name]’s most valuable assets.

Success Factors

[Company Name] is qualified to succeed due to the following reasons:

• There is currently a high demand for bikes in the community due to a rise in environmental awareness. In addition, the shop has surveyed the local population and received highly positive feedback pointing towards an explicit demand for our products.
• [Company Name]’s location is in a high-volume traffic area and will thus be highly convenient to a significant number of people visiting nearby.
• The management team has a track record of success in the bike business.
• Bike shops are a proven business and have succeeded in communities throughout the US.

Financial Highlights

[Company Name] is currently seeking $300,000 to launch its bike shop. Specifically, these funds will be used as follows:

• Store design/build: $100,000
• Initial equipment, inventory, and supplies: $100,000
• Working capital: $100,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

II. Company Overview

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Who is [Company Name]?

Located in the heart of [Location], [Company Name] is a new bike shop that is committed to providing its customers with the best possible bike shopping experience. We carry a wide variety of bikes, e-bikes, accessories, bike parts, and gear from top brands, including Trek, Specialized, Giant, and Cannondale. Whether our customers need a bike for commuting, mountain biking, or occasional use, we have everything a bike enthusiast could ever need. We are committed to providing our customers with the best possible service, and we strive to be the #1 bike shop in town within the next five years.

Here are some of the things that make us different from other bike shops:

• We carry a wide variety of bikes, e-bikes, accessories, bike parts, and gear from top brands. No other bike shop in town can compete with the size and diversity of our inventory.
• We have an expert team of bike enthusiasts who know everything about our products and the biking community.
• We offer a variety of services, including repairs, maintenance, and customization.
• We are committed to providing our customers with the best possible service.

[Company Name]’s History

[Founder’s Name] is a bike enthusiast with a successful career in the bicycle industry. Having worked for various famous shops across the United States, he has an immense understanding of the procedures required for starting a bike shop business. With his experience and knowledge, [Founder’s Name] is positive about the launch of the bike shop.

[Founder’s Name] incorporated [Company Name] on [Date of Incorporation] as an S-corporation. [Founder’s Name] has selected an initial location and is currently undergoing due diligence to ensure that it is the most desirable location for the bike shop. The business is currently being run out of [Founder’s Name]’s home, but once the lease on [Company Name]’s retail location is finalized, all operations will be run from there.

Since incorporation, the company has achieved the following milestones:

• Developed the shop’s name, logo, and website
• Created the list of products that will be available in the shop
• Began recruiting key employees with experience in the bike industry

[Company Name]’s Products/Services

[Company Name] sells a large inventory of bikes, e-bikes, and accessories. Some of the top bike brands we sell include Trek, Giant, Cannondale, and Specialized. In addition to our bikes, we sell a variety of gear and accessories, including helmets, lights, locks, pumps, tires, and bike racks. [Company Name] also offers repair, maintenance, and customization services. For larger purchases or repairs, we offer flexible financing and payment plans.

III. Industry Analysis

You can download our Business Plan Template (including a full, customizable financial model) to your computer here. [Company Name] competes against small, individually owned bike shops and major chains. The US bike industry consists of more than 10,000 shops of varying sizes. These shops may specialize in selling certain types of bikes (such as commuter bikes, BMX bikes, or mountain bikes) and may sell accessories and/or offer repair and maintenance services.

According to Grand View Research, the global bicycle market size was valued at $64,625 million in 2022 and is expected to grow at a CAGR of 9.7% from now until 2030. This shows that the industry is in high demand and will experience strong growth over the next decade.

Positive factors that are helping the industry grow include:

• Increasing urbanization and rising disposable incomes : As more people move to urban areas, they are looking for alternative modes of transportation that are both affordable and environmentally friendly. Bikes are a great option for commuting and running errands, and they are becoming increasingly popular as people become more aware of the environmental benefits of cycling.
• Growing popularity of cycling as a recreational activity : Cycling is a great way to get exercise and enjoy the outdoors. As more people become interested in leading healthier lifestyles, they are turning to cycling as a way to stay active.
• Government initiatives to promote cycling : Many governments are promoting cycling as a way to reduce traffic congestion and air pollution. These initiatives include building more bike lanes and trails, providing financial incentives for people to buy bikes, and educating the public about the benefits of cycling.

These positive factors are expected to continue to drive growth in the global bicycle market in the coming years. We expect that these factors will help [Company Name] succeed in the local market.

IV. Customer Analysis

Demographic profile of target market.

[Company Name] will serve the residents of [Location] and its surrounding areas. The area residents it will serve are affluent and expected to spend more on bikes than the national average.

Customer Segmentation

[Company Name] will primarily target the following customer segments:

• High-Income Individuals : [Company Name] will attract people who have the disposable income to spend more on bikes per capita than the national average.
• Local Professionals : [Company Name] will attract local professionals who work in offices in downtown [Location]. Many professionals do not own cars and depend on public transportation. The demand for affordable bicycles to get around town is high in this segment.
• Local Residents : [Location] is home to 80,000 residents who are all committed to environmental transportation. Therefore, there is a very high demand for bicycles and other environmental means of transportation.

V. Competitive Analysis

Direct & indirect competitors.

The following establishments operate within a 10-mile radius of [Company Name], thus providing either direct or indirect competition:

The Town Wheeler The Town Wheeler is a full-service bike shop that offers a wide variety of new and used bicycles, as well as parts and accessories. They specialize in selling commuter bicycles and are always stocked with the best brands, such as Cannondale and Schwinn. The Town Wheeler is committed to providing its customers with the best possible experience. They also offer a variety of financing options to make it easy for customers to get the bike they want. We expect that The Town Wheeler will be our biggest competitor for locals looking for commuter bikes.

Jones’ Bike Emporium Jones’ Bike Emporium is a specialty bike shop that focuses on high-end bicycles and components. The shop is owned and operated by John Jones, a lifelong cyclist and expert in the field. Jones’ Bike Emporium carries a wide variety of bikes from top brands, including Trek, Specialized, Cannondale, and Giant. They also have a large selection of components, such as wheels, tires, handlebars, and seats. In addition to sales, Jones’ Bike Emporium also offers a full range of repair and maintenance services. Their experienced mechanics can handle anything from a simple tune-up to a complete overhaul. Jones’ Bike Emporium will be a major competitor for customers looking for high-end, premium bicycles.

Cycle Haven Cycle Haven is a family-owned bike shop that has been serving the community for over 20 years. They offer a wide variety of bicycles and accessories for all ages and skill levels, including road bikes, mountain bikes, hybrids, and children’s bikes. They also carry a selection of bike parts and accessories, such as helmets, lights, and locks. Cycle Haven specializes in selling bikes for occasional use and that are budget-friendly. They believe that everyone should be able to enjoy the benefits of cycling, regardless of their budget or experience level. They offer a variety of financing options, so you can find the perfect bike for your needs without breaking the bank. They will be our biggest competitor for customers looking for bikes for occasional use.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Management : [Company Name]’s management team has [X] years of business and marketing experience in the bike industry which allows them to serve customers in an improved and more sophisticated manner than the competitors.
• Relationships : Having lived in the community, [Founder’s Name] knows all of the local leaders, newspapers, and other influences. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.
• Great bikes at an affordable price : The complete array of bikes and accessories offered by [Company Name] nearly equals the most premium-positioned competitors. However, [Company Name] will offer these products at a much more affordable price.
• Location : [Company Name]’s location is near the center of town, giving the company access to many passersby.

VI. Marketing Plan

The [company name] brand.

The [Company Name] brand will focus on the company’s unique value proposition:

• Convenient location
• Customer relationships
• Top-tier bikes and accessories
• Moderate pricing

Promotions Strategy

[Company Name] expects its target market to be residents living and working within a 10-mile radius. [Company Name]’s promotions strategy to reach this target market includes:

Advertisement Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. [Company Name] will advertise its products in popular industry magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.

Website/SEO [Company Name] will invest in developing a professional website that displays all of the products and services offered by the company. It will also invest in SEO so that the company’s website will appear at the top of search engine results.

Social Media [Company Name] will create the company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographic.

Direct Mail [Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other promotions for people to avail of our products.

Customer Loyalty Programs [Company Name] will create a winning customer loyalty program to keep its best customers coming back again and again. When not actively providing services to customers in the store, the professionals and other employees will make periodic, regular phone calls to customers. Long-term customers will have the opportunity to participate in the loyalty program, and referrals will be rewarded as well.

Special Offers Offers and incentives are an excellent approach to assisting businesses in replenishing the churn in their customer base that they lose each year. [Company Name] will introduce special offers to attract new consumers and encourage repeat purchases, which will be quite advantageous in the long run.

Pricing Strategy

[Company Name]’s pricing will be moderate so that customers feel they receive great value when availing of our bike products and services.

VII. Operations Plan

Functional roles.

To execute [Company Name]’s business model, the company needs to perform many functions, including the following:

Service Functions

• Provide customer service
• Sell bikes and accessories
• Operate the cash register
• Janitorial and maintenance functions

Administrative Functions

• Social media management
• Website management
• Bookkeeping
• Hiring and training staff
• Other general administrative functions

VIII. Management Team

Management team members.

[Company Name] is led by [Founder’s Name], who has been in the bike industry for [X] years. [Founder’s Name] has a deep understanding of the bike industry, from the latest trends in bike technology to the needs of different types of cyclists. He is also a skilled mechanic and can repair and maintain any type of bike.

In addition to his technical expertise, [Founder’s Name] is also a talented salesperson and marketer. He knows how to connect with customers and build relationships that will keep them coming back for more. With [Founder’s Name] at the helm, [Company Name] is poised for success. He has the experience, knowledge, and skills necessary to build a thriving bike shop business.

Though he has never run a bike shop himself, he has worked in the industry long enough to gain an in-depth knowledge of the business, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

Hiring Plan

[Founder’s Name] will serve as the Store Manager. To launch the bike shop, [Founder’s Name] will consider hiring the following personnel:

• Assistant Managers (2 to start)
• Administrative Assistant (1 to start)
• Bike Sales Associates/Enthusiasts (3 to start)

IX. Financial Plan

Revenue and cost drivers.

[Company Name]’s revenues will come from the sale of bikes and accessories.

The major costs for the company will be supplies and employee salaries. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market. Moreover, rent for the prime location is also one of the notable cost drivers for the [Company Name].

Capital Requirements and Use of Funds

  5 Year Annual Income Statement

Comments are closed.

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Retail Bicycle Shop Business Plan

Start your own retail bicycle shop business plan

University Cycle Works

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.">.

University Cycle Works is an established bicycle specialty store, offering retail sales of new bicycles, parts and accessories, clothing, and maintenance and repair service. It is located in a heavily trafficked, university-focused area.

The primary market for University Cycle Works is the university student population, which normally has a turnover/growth of approximately 25% each year. The secondary market is the university faculty and staff, and the tertiary market is the greater Metroburg community.

Hubert “Hub” Freewheeler has been the assistant manager of University Cycle Works for five years, with an additional seven years of bicycle industry retail sales and service experience. Hub first began investigating the ownership of a bike business two years ago, however, the local Metroburg market seemed saturated with shops. Realizing that a more practical option would  be to buy an existing shop, Hub approached his current boss. The result of two years of negotiations will be the sale of University Cycle Works to Hub taking effect July 1, 2001. The goal will be a seamless transfer of ownership, with staff, bike lines, location, and operations unchanged. 

This business plan is being prepared for presentation to Metroburg Business Bank, and to the store’s major suppliers of new bicycles, accessories, and parts. A substantial part of the past year’s planning has been negotiations with these suppliers to maintain the current financial agreements as the business changed hands. These negotiations benefited greatly by the good working relationships Hub had developed with the various suppliers’ sales representatives, who advocated on Hub’s behalf. The suppliers have provisionally granted continuation of existing terms and dating programs, pending review of this business plan. 

Note: Names, proprietary information, and some financials have been disguised in this sample plan.

1.1 Objectives

The objectives for University Cycle Works are:

• Continue to provide the high quality of sales and services that University Cycle Works is known for.
• Manage a seamless transfer of ownership.
• Maintain a financially healthy business and validate the trust and advocacy of other people in support of this business purchase.
• Repay the start-up loan provided by family members within the first year.
• Achieve monthly and yearly sales equal to or better than the previous year under the former owner.
• Aim to improve sales of bicycle specific garments and rainwear over the year.
• Focus marketing on new student influx to maintain current growth in sales and service revenue.

1.2 Keys to Success

Our premier, high visibility location immediately adjacent to the State University in Metroburg has been critical to our success as the bicycle sales and service purveyor of choice to the university community.

The continuance of established accounts payable, sales programs, and co-op advertising resources by suppliers of bicycles, accessories, and parts makes the financial plan reasonable and attainable. Without this support, the purchase of the business would be unacceptably risky.

Buying and continuing to use the recognized, well respected name University Cycle Works provides continuity for the customers, the owner, and the employees.

Retaining and promoting the current employees of the shop is as important as any other item here. They are the life of University Cycle Works. Long-term relationships with customers have always been a hallmark of the University Cycle Works experience. We recognize and address our customers by name, and want to be part of their university experience. 

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.">

University Cycle Works is a subchapter S corporation, and is currently owned by Han Delbar. Hubert “Hub” Freewheeler, current assistant manager of University Cycle Works, is purchasing University Cycle Works from Delbar, acquiring existing inventory, and assuming outstanding accounts payable and dating program debts to suppliers, location lease, customer base and information, and University Cycle Works’ business name and goodwill. The business will continue to be a subchapter S corporation. Exchange of ownership will occur on July 1, of this year.

To establish an accurate accounting of existing inventory and outstanding debts, the prior year’s closing inventory and year end financial statement as reviewed by the business’ CPA were used as benchmarks. The sales, orders placed, deliveries received, and accounts payable payments made have been tracked each month, and a trial balance of these will be run June 15 to establish the final purchase price for inventory on hand, and the amount of Accounts Payable assumed. The figures presented here are conservative, realistic estimates used for planning purposes.

2.1 Start-up Summary

The current owner, Han Delbar, has sold the business to Hub for $140,000. To help determine this price, a business valuation specialist was hired. This professional priced existing store fixtures, tools, and mobile leasehold improvements. These included bicycle wall racks, display cases, track lighting, repair and assembly tools, supply cabinets and storage shelving, air compressor, etc., and are part of the purchase price.

The value of the existing company, its reputation, assumption of the business name, existing client base, etc. is recognized as part of the purchase. It appears as a start-up expense in the following table as Down Payment. The balance appears as a long-term liability. Additional payments shall be made monthly.

Inventory, accounts payable, and invoices were tracked for five months to determine an accurate price of current inventory and amounts of accounts payable assumed.

A deposit equal to one month rent was required by the landlord as assurance in continuing the current lease to the new owner. It appears as a short-term asset.

Hub is investing some of his own money, partially a home equity loan, in the company. An additional amount is being invested, as short-term interest free loans, by family members. This plan calls for these loans to be repaid in the first year.

2.2 Company Locations and Facilities

University Cycle Works is located in Metroburg, a major city on the east/west Interstate. Metroburg is also home to the main univeristy campus. Outdoor recreation is very popular in the area; there are bicycle friendly country roads leading to parks and lakes, as well as an extensive array of mountain biking trails for the more adventurous.

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

The store is 2,000 sq. ft. of interior space with covered outside space adjacent to the heavily trafficked sidewalk. Used bicycles are displayed in this space. One or two new bikes are displayed as well as a visual draw. All are secured with lock and cable. As a service to all cyclists, a hose from the air compressor and a pressure gauge are present under the overhang next to the sidewalk. This primes the pump for quite a bit of spontaneous walk-in business.

Products and Services

Retail Sales

• Bicycles . We sell new bicycles, predominantly in the mountain bike style, retro-cruiser is a close second, and sport/touring/racing road bikes a distant third. We also sell some used bikes which we take in on trade as a service to our customers who are buying new bikes.
• Accessories . We offer a wide variety of accessories. Locks, computer speedometers, fenders, cargo racks, comfortable seats, headlights, helmets, water bottles, panniers/back packs/messenger bags, child seats and trailers, bike storage racks, and auto roof rack systems all fall in this category. It is not possible to carry every possible accessory, so we try to carefully chose those which will be most useful or desired by our target markets. When we receive special requests for a new item, we’ll often order several to test the local demand, and if adequate, will add it to our regular stock.
• Clothing . Clothing appeals to all cyclists, whether it is a logo emblazoned T-shirt or a piece of waterproof rainwear. At University Cycle Works, we rotate our clothing based on the season. Just before the autumn rains we stock jackets and Gore-Tex. Come winter we offer helmet covers and liners, insulated jerseys and pants, gloves, and shoe covers. And when spring arrives and the first crocus appears through the melting snow, we start displaying summer jerseys, and racing shorts.
• Parts . Parts generally refers to pieces or materials necessary to the basic functioning of the bicycle. Generally, parts are installed during service [see below] and are an additional charge beyond the service fees. Some, like cranksets, pedals, tires, derailleurs or brakes, are both integral parts and upgrade accessories. Others, such as headsets, bottom brackets, spokes, chains, cables, and cable housings are strictly maintenance, though some will be sold to cyclists who prefer to work on their bikes themselves.

University Cycle Works is a full-service specialized bicycle shop. Our service offering includes, but is not limited to:

• Free 30-day/100-mile tune up with every new bike sold.
• Quick repairs for flat tires, broken chains, brake cables, etc.
• Scheduled tune-ups, replacement of all bearing surfaces, repacking of lubricants, and adjustments of derailleurs and brake systems.
• Installation of all accessories.
• Authorized warranty repairs on the bikes.
• Custom wheel building.
• Frameset repairs by outsourcing to Via Porco custom frame builders.

3.1 Competitive Comparison

In almost any retail industry a specialty shop will be slightly more expensive than a mass retailer, due to the higher prices charged by suppliers. University Cycle Works is no exception. The prices we charge for bicycles, parts, and accessories is higher than the prices charged by a K-Mart, GI Joe’s, Target, or by mail-order.

What we do offer, which these large retail outlets cannot match, is friendly, knowledgeable service. We are passionate about bicycles. People do not go into the bicycle business because they want to get rich quickly. They enter the bicycle industry because they love bicycles. That kind of passion and committment comes across to customers when they find a sales person who can fit them to a bicycle so they feel comfortable and want to ride it. Someone who recognizes you and remembers your name is a welcome feature at a specialty store.

Local service is a major drawing factor for a specialty store such as ourselves. A mega retail can sell a bicycle, but it takes a trained service technician to keep it in fine running order. University Cycle Works staff provides the kind of personal, professional service people want, and are willing to pay for. We base our shop time fees on an industry standard, which we then adjust for our target market. This shop rate is comparable to other specialty bicycle shops in Metroburg.

Our location is a competitive advantage for us. Our customer base is predominantly university students and staff. We are almost part of the campus. They walk and ride past us every day, often several times. The convenience of local sales and service brings our customers in. They know they can get the service they need by dropping their bike off on the way to campus and picking it up on their way home: fast, convenient, reliable service.

3.2 Fulfillment

There are three mainstream bike lines and three specialty brands carried at University Cycle Works.

• Litespeed Titanium–Serious top-of-the-line bicycles of unique materials and the very best components for road racers, tourists, and mountain bikers who will spend whatever they need to get the performance enhancing machine they want.
• Via Porco (Road Hog)–Custom sizes and framesets, fillet brazed by a local frame builder, for cyclists looking for the perfect fit and a long-term investment.

Parts for the repair and maintenance of bicycles are available from a variety of suppliers. Four that we regularly order from are listed here.

• United Bicycle Parts
• United Bicycle Tools–a supplier of specialty tools for the bicycle industry. They sell shop grade tools, and consumer grade tools for retail sales by bike shops.

Accessories are a huge part of the retail sales in the bike industry. Everything from helmets to headlights, panniers to computer speedometers, water bottles to locks and cables. Three of the largest suppliers are listed here.

• Trek Bicycle Corporation

Bicycling clothing can be either technology-oriented or simple. Anything from cotton cargo shorts to gel padded, multi-panel cycling shorts is acceptable for cycling. T-shirts and moisture wicking nano-fiber jerseys ride side by side, and when the weather turns inclement, there are nylon shells, plastic ponchos, and Gore-Tex jackets, pants, gloves, and shoe covers for the commuter who needs dry office attire, or the continental tourist who needs thousand-mile protection. University Cycle Works regularly stocks these brands. We also regularly purchase small lots of other brands to test their popularity in our market.

3.3 Future Products and Services

Wheels can be anything from wire spokes to aerodynamic discs. Clothes range from high-tech moisture wicking synthetic fiber jerseys and Gore-Tex rainwear to traditional wool or cotton shorts.

Each year the major component companies such as Shimano, Mavic, and Campagnolo introduce new parts gruppos. The marketing has become as strident as that of the automobile industry. This means that the bike shop must maintain replacement parts to repair old groups, stock parts for early replacements of new models, and have an inventory of high priced gruppos for the equipment-focused bike nobs who want to upgrade their bikes with the newest and greatest. Additionally, the shop must regularly order manuals and specialty tools to service the new bikes and components.

Following the trends in technology and futuristic products is as much fun as it is work for Hub and his staff. They work on bicycles because they love bicycling.

Market Analysis Summary how to do a market analysis for your business plan.">

The predominant market segment for University Cycle Works is the university student population. We also cater to the university staff, local business employees, and, along with every other bicycle shop in town, the greater Metroburg population.

In part the local market is driven by the lack of parking. Bicycle transportation is more economical, as well as time and space efficient in the university neighborhood. Part of the market is price constrained and another part is hooked on the latest fad, be it frame style, number of gears, or portrayed image. As long as new students arrive each year at the State University at Metroburg, our market segment growth is assured.

4.1 Market Segmentation

The university students are our main target market.

• They are mostly undergraduates, so there is a 25% annual turnover.
• The lack of parking in the university area and the general ease of bike mobility throughout Metroburg motivates them to use bicycles as inexpensive transport. Athletic pursuits draw them, and the nearby areas for use of mountain and trail bikes provides a great place to ride.
• There is a new enthusiasm for retro Cruiser bikes, and higher tech cruiser-style bikes with multiple gears, good brakes, etc. among the college age population.
• Also, main market for racks, locks, throughout, pannier/bags, fenders, rainwear, etc.
• They want convenience for sales and service.

University employees are another prime market segment.

• Small growth and turnover, but on the whole, the group is pretty stable.
• Are willing to commute by bicycle to work.
• They want a stable, comfortable bike and a full range of accessories.
• When their bikes need service and maintenance, local drop off/pickup convenience is important.
• They have families who ride bicycles also, and will patronize a shop that gives personal service.

Greater Metroburg population.

This segment has a choice of going to any bike shop in Metroburg, and will probably choose a shop located closer to their home. They are not the main target market segment of University Cycle Works, and we market to them casually, only as a collateral effect to our university-oriented efforts.

4.2 Target Market Segment Strategy

We’ve chosen our target market segments, the greater university population because:

• They are contained in one area with a high daily population density. 
• Are easily reached with advertising, such as outdoor displays on main street next to campus.
• Have discretionary income.
• They have a regular turnover of population/influx of new potential customers.
• Are, in general, athletically/physically active, and often performance oriented.
• In need of quick, efficient, maneuverable, alternative transportation.
• Like toys, especially expensive toys.
• Are image and brand conscious. 
• Respond to convenience, especially highly visible, easy access convenience, with impulsive purchases.

4.2.1 Market Trends

Trends in the bicycle industry usually last for a time. Some of them have been:

• 1960s – Big rush on 10 speeds.
• 1970s – Touring bikes became popular.
• 1980s and 1990s – Huge growth of mountain bikes
• 1990s – The rumored but exaggerated death of “road bikes” and the unfulfilled prophesy of a boom in the tandem market.
• 2000s – Popularity of retro ‘cruisers.’

4.2.2 Market Growth

The bulk of University Cycle Works’ market growth is the regular matriculation of students from the State University in Metroburg. While the overall market numbers change in small increments, usually less than 10%, the market has a turnover of 22-26% yearly. In a longer time frame the number of students and the number of university employees grows and shrinks with economic changes, and with population demographics.

For the next three years we foresee a slow but steady growth in the overall university population as well as continued growth of Metroburg as a desirable place to live.

4.2.3 Market Needs

Our market niche has several needs which we strive to meet:

• Quality bikes at several price points.
• Various styles and sizes of bikes, leaning heavily toward the styles most popular with the student population.
• Range of accessories most practical in the local setting, such as locks, fenders, lights, tires, seats, rainwear, etc.
• Plenty of replacement components and service parts.
• Friendly personal relationships between cyclists and shop staff.
• Prompt and convenient service from on-the-spot flat tire fix, to drop in repairs, to scheduled major maintenance, where the rider can drop their bike off, head to class or work, and be assured that their bike will be ready for the ride home.

4.3 Service Business Analysis

The bicycle industry is a world wide concern. The Pacific Rim is a huge producer of framesets, components, tires, and accessories. European countries have a long and honored tradition of producing the finest in road touring and racing bikes and parts. The United States has probably the largest number of producers of high-tech, exotic metal, jewelry components, and handbuilt custom framesets.

Transportation of all these various pieces and fully assembled bikes across continents and oceans brings the industry its international flavor. It also adds a certain cost all products. Interestingly enough, some of the least expensive bicycles are imported from the People’s Republic of China, and some of the most outrageously expensive pieces are made in the U.S. and are handbuilt at a small shop that uses CNC machining to make titanium bolt, nut, and screw sets for the bike nob who wants to reduce the weight of his bike that last 143 grams. 

4.3.1 Main Competitors

Setting aside the discount department stores, University Cycle Works has the following direct competitors.

• 1 local multi-sport store at the local megamall
• 1 statewide chain of bicycle shops which started out as Schwinn-only shops, but has had to take on other brands and products.
• 1 used bike store that has made a fine business reputation for itself, dealing strictly in used bikes.
• 3 local, including the oldest shop in town.
• 1 local multi-location chain, that has specialized in opening shops in small local malls in areas of new housing development.
• Several garage mechanics offering service only.

The two strongest competitors are the Oldest Shop in Town which carries the cache of being the most stable, and most well known — a Metroburg institution. The Mountain Bike Specialist targets the same athletic, young, performance and image conscious rider that we target in the university student population. These cyclists are particular about their bike and will go where the name brand they want is sold, or will try every bike and then buy the one that fits best, regardless of store loyalty.

4.3.2 Business Participants

The bicycle industry has many players large and small all over the world. A few are listed below.

Big bicycle manufactures

• Giant – one of the largest manufacturers in China. Private label manufacturer that sells under its own name.
• Huffy – The largest manufacturer and seller of bikes in the U.S. under its own private labels.
• Cannondale – U.S. company that was in early on the “Made in USA” movement in the 1970s.
• Trek – Heavily marketed U.S. company that has expanded to offer bikes, clothes, accessories, road support for events, training for shops, and other services.

Big component manufacturers

• Shimano – largest manufacturer of cranksets, derailleurs, drive trains, brake sets, hubs. HQ in Japan with offices, distribution, and factories world wide.
• Campagnolo – Premier Italian producer of the finest component gruppos for almost 100 years.

Big accessory distributors

• Specialized
• Bell Sports
• Quality Bike Parts

Mail order/Online companies who began selling through the mail and now have extensive Web presence as well. They offer great prices, but no installation or services.

• Performance
• Bike Nashbar

Discount stores are the usual outlet for Huffy bikes in several guises. These are the $100 bikes which are assembled by minimally trained clerks, and frequently end up at specialty shops being reassembled and serviced for the owners. The price bargain usually isn’t by the time the bike rides well and safely.

• GI Joe’s

Specialty bike store such as University Cycle Works, where bicycles are our focus and passion. Trained and knowledgeable sales people, service techs, and avid riders in their own right.

Custom frame builders, smaller specialized manufacturers of folding bikes, tandems, trailers, racing bikes, and custom components.

Strategy and Implementation Summary

Information on our sales and marketing efforts are discussed in the following sections.

5.1 Competitive Edge

The foremost competitive advantage of University Cycle Works is our university location. The State University at Metroburg is over 100 years old and as it has grown, Metroburg has grown around it. Parking is almost nonexistent, with all campus parking permit or meter controlled, and local streets filled to capacity with the vehicles of residents. Bicycles are an obvious and popular transportation solution.

Our location, in the first block off campus in a commercial area featuring the university Bookstore, a private bookstore, bank, cafes, coffee shops and popular watering holes is ideal. We get constant, daily visual exposure. Students and staff throng the sidewalk outside our door, and we reap the benefits. Our nearest competitor is almost a mile away. For the student customer, on foot, in a hurry, University Cycle Works is the immediate solution to their needs.

After that first parking ticket, we are the first bike shop the new pedestrian sees. We are conveniently located when a cyclist gets a flat tire on the way to class. The first time a rider gets to class with a wet back they come in at lunch for a set of fenders and a rain jacket.

The negotiations of the past two years also brings the advantage of continued financial agreements with major suppliers. This is an advantage over a start-up bicycle shop, but, is more a leveling of the bike path when compared to other established shop in Metroburg. Traditionally a start-up store will be placed on a Cash On Delivery (COD) status by bicycle manufacturers and parts/accessories suppliers. The COD status stays in effect until the new shop demonstrates its ability to manage its orders and cash flow. This also means the new shop must have more funding to be able to write checks on a moments notice, for large amounts.

University Cycle Works will be continuing an established system of dating programs, ordering, delivery, and invoicing/accounts payable, stabilizing our funding needs and monthly cash flow.

5.2 Marketing Strategy

Our marketing strategy seeks to optimize our advantage of prime location. We want the university population to see us as their bike shop, even our name says so, University Cycle Works. We want them to see us as part of their daily experience, and a shop they can depend on for quick repair and maintenance service.

5.2.1 Marketing Programs

Our marketing programs are locally focused, where we can effect our main target market.

Back to school specials , at the beginning of each term, including perhaps a free Kryptonite lock with a new bike purchase. We will try to have a special purchase of an economy value bike for each term.

Spring special . This coincides with the beginning of spring term, but we will direct some of our advertising at the wider population as people hang up their skis and tune up their bikes.

Coupons . Once every other month we will run a coupon for a service special in the university newspaper, the Daily Hyperbole . We also run this coupon as a banner ad in the Daily Hyperbole Online .

Website . Our content site will also serve as a marketing medium. We offer downloadable maps of the city bike routes, maps of rides outside the city area, give information about the store, and announce sales. We believe that cyclists will regularly access our site for the valuable information we will provide, and this will reinforce their of awareness of University Cycle Works, and we will become their bike shop of choice.

Print advertising . In addition to our coupons, we will keep a small 3 column inch ad appearing on a recurring schedule in the Daily Hyperbole . To boost citywide awareness of our sales specials we will also run slightly larger ads in the Metroburg Bombast-Obfuscator during the weekends prior to the sale.

5.2.2 Web Plan Summary

University Cycle Works’ website is designed to be a content site. We have neither the desire nor the time to attempt a full-blown e-commerce site. There are several large mail order/e-commerce companies, such as Performance, Bike Nashbar, and REI, and many smaller companies who are well established in the marketplace. We could never compete successfully against them.

Our target markets are immediate. They are within cycling and walking distance of us, so we are providing locally topical information to them. We are using HooDaThunkIt Search Engine Consultants for the design and upkeep of our site, and especially for their expertise in gaining favorable listings of our website in the Internet search engines. Just putting up a website is not enough. Without the proper coding and search engine linking, a website will never appear in a Yahoo! or Hotbot search. We don’t have the money to buy our way to a top three listing on every search, but HooDaThunkIt can get us into the search engines, and appearing higher than our local competitors.

First, we will have our store information: hours, location, phone number, brands sold, etc. Sales and current promotions will also be featured.

Downloadable files:

• Monthly maps and directions for both a road and a mountain bike ride.
• Bicycling Magazines

5.2.3 Pricing Strategy

Pricing of bicycles is very tight with a markup of between 30% and 40% depending upon the brand and model. Many people believe that bicycles are priced like automobiles and are open for negotiation, and make almost insulting offers. The shops have little leeway here.

Parts and accessories are generally keystone priced. Some small items cost more in handling and sales than they do to buy from supplier. These can be double and triple keystoned, because customers won’t buy them if they don’t have a minimum perceived value. On the plus side, these are great “throw-in” items used to close the sale of a bike. When new technology arrives in bicycles, and if the supply is limited, almost any price can be demanded. This was the case in the mid-1990s when RockShox introduced suspension forks for mountain bikes. The bike nobs would pay whatever was asked just to get those forks. Of course, in this type of situation the price, both wholesale and retail, lowers.

Other accessories, such as step-in pedals, pannier racks, helmets, or headlights are sometimes heavily marketed by the manufacturers. While this drives demand and brings people into the shop to get these items, the suggested manufacturer’s retail price may limit markup.

The markup on clothes, shoes, jackets, gloves can vary from keystone to triple keystone, depending upon product, manufacturer, country of origin, and customer perception of value. Pearl Izumi and Burley Design rainwear can demand  premium prices as top-of-the-line garments, but many budget conscious students can only afford a $35 nylon windbreaker. It has been and always will be a demanding job for us to adequately stock garments at the various price points.

We try to maintain a basic “Hourly shop rate” at $45/hour. Standard repairs are then priced based upon an average time for completion. Some repairs, such as a flat tire, are limited by customer perception of difficulty. Examples:

• Flat Tire — $7.50
• Install Fenders — $10.00
• Brake Adjustment — $25.00
• Tune-up — $65.00
• Overhaul — $100.00

All parts used in repairs are priced at keystone, and added to the labor service charge.

With several other bicycle shops in the city, there are some price constraints based on competition. Coupons and specials can balance price ceilings by drawing in customers.

5.3 Sales Strategy

Sales vary season to season and with the academic school year. Surprisingly, summer is the slowest season because there are fewer students in town. Business picks up in August with the return of the students and staff, and flourishes in September. Accessories and rainwear sales increase in the autumn and early winter. Repairs and maintenance are steady. Holiday sales are brisk, though generally leaning again to accessories, parts, rainwear, gloves, helmets, headlights, etc. Winter sales are moderate, and then pick up in springtime as people put away their skies and look forward to local outdoor activities, longer daylight hours, and drier weather.

We have three large sales promotions each year. 

• Spring . This coincides with both the return of nice weather, and beginning of Spring term. We feature new bicycles, and repair/maintenance/tune-up specials. It is important to us to have a good selection on hand at this time. When people decide they want that new bike, they want it now. If we don’t have the bike then, and make the sale immediately, many riders will decide that they really can get another season out of their old bike, and will spend their discretionary income on some other purchase.

Additionally, we have some special buys available for June graduation.

We get some small monthly revenue from these sources:

• Monthly service contract for repairs and parts with the University Security Office.

5.4 Strategic Alliances

• Bicycle manufacturers – continuation of dating programs and financial agreements.
• Accessory suppliers – continuation of financial agreements.
• Metroburg Parks Dept. – we sponsor printed map of city bike paths to publish on our website.
• University Security Office – maintenance, supply service contract for cycle security.
• HooDaThunkIt – website design and maintenance, search engine placement.

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.">

The current assistant manager, Hub Freewheeler, is buying University Cycle Works, and will manage the business. Hub has a B.S. degree in Economics and an M.A. in Comparative Literature. His passion however has always been cycling. He originally worked at his local bike shop when he was in college. After several years trying to find suitable work in his degree field, Hub gave up chasing the chimera of these fields and decided to work with something substantial, and returned to his youthful enjoyment of bicycles.

He attended two of the major bicycle mechanic training programs, at New England Bicycle Academy and the United Bicycle Institute. These courses covered mechanical service and maintenance, frame building and repair, wheel building, and shop organization, sales, and management. He has 12 years of progressively responsible experience in bicycle shops with the last five at University Cycle Works.

One of the other full-time employees, Vel O’Cipede has expressed interest in learning more about the bike industry and she will be promoted to be the new assistant manager. Vel has been with us for three years. She graduated from State University at Metroburg with tandem B.S. degrees in Exercise Physiology and Recreation Management. She loves to cycle, and has kept her contacts at the university active. Her knowledge and expertise draws many women bicyclists to our store where they know they will get the care and attention which is usually missing from traditionally male staffed shops.

The current owner, Han Delbar will be available as a resource.

Additional resources are:

• Continental Shelf Bank.
• Newt Ria, a partner at Weasel, Stoat, Muskrat who advised on the sale/purchase arrangements.

6.1 Personnel Plan

The staff will consist of Hub Freewheeler, the new assistant manager, Vel O’Cipede, and two other full-time employees Dee Raylure, and Jean-Baptiste Kapsyze.

To meet the need for additional help during the year, University Cycle Works hires two to four part-time employees from the university population. We look for people who are enthusiastic about cycling, and who have a mechanical aptitude. Some of these folks have worked for us throughout their entire college sojourn. Their hours vary depending on the stores’ needs and their class schedules.

Financial Plan investor-ready personnel plan .">

This financial plan was developed based upon previous years’ data for the existing store, tracking trends in revenues and expenses. A five-month track of sales, accounts receivables and payables, and inventory from a year-end benchmark was made.

The seller, buyer, and the accountant worked together on the plan to balance optimism with reality.

An attorney was consulted on specifics of the sale contract.

The topics which follow present specific projections.

7.1 Important Assumptions

Payment days are averaged at 45. This is an average figure used for planning purposes. Bicycle manufacturers and some accessories suppliers offer dating programs where shops order product at the annual trade show in September for delivery in February or March so that new product will be available to customers at the beginning of the cycling season. Shops are invoiced for payment due, depending upon the program, somewhere between May and July.

The financial projections presented here are based on the assumption that suppliers will continue their current invoicing programs with University Cycle Works. We are thankful for the active support and advocacy of the various sales representatives who deal with us.

Other products are ordered on a monthly basis to replace items sold, such as tires, tubes, aptitude and cages, ball bearings, drive chains, etc. These are invoiced at net 30. Some special orders are C.O.D.

We also assume that:

• Interest rates will fluctuate only slightly.
• The level of discretionary income will remain steady or increase.
• The current enrollment at the university will continue at or above its current level.
• That the lack of auto parking in the university area will continue.
• That gasoline prices will continue to encourage alternative transportation, e.g. bicycle commuting.
• World trade treaties will continue to allow shipping of material and product across all borders, continents and oceans.

7.2 Key Financial Indicators

The following chart compares five key indicators as they change over time. The indicators include sales, gross margin, operating expenses, inventory turnover, and collection days. The chart uses indicator values that are set to compare changes with the base year showing up as 1.00 and all other years showing up as multiples from the base.

7.3 Break-even Analysis

The Average Percent Variable Cost and Estimated Monthly Fixed Cost figures in the break-even table and chart below are drawn from data in the Profit and Loss and Sales Forecast tables.  The table and chart give us a rough estimate on how much product and service we need to sell each month to cover all our expenses.

7.4 Projected Profit and Loss

In negotiating the smooth transition in ownership, the landlord agreed with Hub to continue the current lease unchanged. As surety, one month’s rent was required as a deposit at the time of sale. This is shown in the Start-up table. Further, the landlord agreed that if, after 11 months operation the new company was solvent and current in lease payments, that the deposit could be applied to the twelfth month’s rent.

The mid-summer months of July and August are slow months when a large part of the university population is gone on summer break. The mid-winter months are traditionally loss months. The weather is the most inclement and discretionary income is at its lowest after the holiday binges. However, we try to keep our entire staff on board to work on our own inventory, store refurbishing, and staff training.

7.5 Projected Cash Flow

The Cash Flow chart and table reflect the seasonality of bicycle sales and the varying payment programs. At times, the business is inventory heavy, stocking up for the beginning of school rush, or specific sales. At other times, there is substantial negative cash flow as long-term accounts payable, net 90, net 60 payments coincide with regular net 30 invoices.

7.6 Projected Balance Sheet

Our goal is to repay the loans from our family within the first year, and we project paying Han Delbar his entire purchase price within five years. Other balance sheet information is shown in the table below.

7.7 Business Ratios

Business ratio analysis for our first three years appears in the table below. For comparison, industry standard ratios for Standard Industrial Classification (SIC) code 5941, Sporting Goods and Bicycle Shops, are presented as well.

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

Need a business plan? Call now:

Talk to our experts:

• Business Plan for Investors
• Bank/SBA Business Plan
• Operational/Strategic Planning
• L1 Visa Business Plan
• E1 Treaty Trader Visa Business Plan
• E2 Treaty Investor Visa Business Plan
• EB1 Business Plan
• EB2 Visa Business Plan
• EB5 Business Plan
• Innovator Founder Visa Business Plan
• UK Start-Up Visa Business Plan
• UK Expansion Worker Visa Business Plan
• Manitoba MPNP Visa Business Plan
• Start-Up Visa Business Plan
• Nova Scotia NSNP Visa Business Plan
• British Columbia BC PNP Visa Business Plan
• Self-Employed Visa Business Plan
• OINP Entrepreneur Stream Business Plan
• LMIA Owner Operator Business Plan
• ICT Work Permit Business Plan
• LMIA Mobility Program – C11 Entrepreneur Business Plan
• USMCA (ex-NAFTA) Business Plan
• Franchise Business Planning 
• Landlord Business Plan 
• Nonprofit Start-Up Business Plan 
• USDA Business Plan
• Cannabis business plan 
• eCommerce business plan
• Online Boutique Business Plan
• Mobile Application Business Plan
• Daycare business plan
• Restaurant business plan
• Food Delivery Business Plan
• Real Estate Business Plan
• Business Continuity Plan
• Buy Side Due Diligence Services
• ICO whitepaper
• ICO consulting services
• Confidential Information Memorandum
• Private Placement Memorandum
• Feasibility study
• Fractional CFO
• How it works
• Business Plan Examples

Bike Rental Business Plan

Published Jul.05, 2023

Updated Apr.19, 2024

By: Jakub Babkins

Average rating 5 / 5. Vote count: 2

No votes so far! Be the first to rate this post.

Table of Content

Bike rental businesses cater to individuals seeking bikes, such as tourists, commuters, students, and leisure riders. These enterprises can operate in various locations, but they are particularly popular in urban hubs, tourist hotspots, university campuses, and residential districts. The bike rental industry is an emerging sector attracting entrepreneurs who aim to meet the increasing demand for affordable and convenient transportation alternatives. A Bike Rental Business Plan is a pivotal component for such entrepreneurs.

Within this article, we will elaborate on the significance of a bike rental business plan, its necessity, and the process of crafting one. Furthermore, we will furnish you with a sample business plan template for bike rental that can serve as an inspiration for your own endeavor.

What is a Bike Rental Business Plan?

A bike rental business plan is a document that describes the goals, objectives, strategies, and projections for starting and operating a successful bike rental business. It provides entrepreneurs and investors with crucial information about your business, such as:

• The type of bike rental service you will offer
• The location of your bike rental business
• Your target customer segment
• Your rental rates
• Your marketing strategies
• Your organizational structure
• Your management team
• Your financial projections
• Your operational milestones

Crafting an extensively researched and meticulously detailed business plan is of paramount importance to steer your bike rental business towards success. This endeavor will facilitate the attraction of lenders, investors, and partners who can contribute to the growth of your enterprise while maintaining discretion.

Why Do We Need a Bike Rental Business Plan Sample?

Writing a business plan can be challenging, especially if you’re preparing it for the first time. It requires detailed research and consideration of many factors. A bike rental business plan sample can give you a better idea of what to include in your own plan.

A sample bike rental business plan can help you:

• Learn from the best practices of successful bike rental businesses.
• Avoid common mistakes in writing a business plan.
• Customize the sample plan to fit your specific needs.

If you’re seriously planning to start your own bike rental business, our team of experts at OGSCapital can help you. (Check our Car Rental Business Plan ) In the following sections, we share our sample bike rental business plan that you can use as a reference. This sample will help you save you time, effort, money and help you make informed decisions about your own business, and ensure that you are on the right track to success.

Executive Summary

The executive summary of a business plan provides an overview of a bike rental business. It includes information about the services offered, the target market, the management team, the financials, and the key success factors. The summary also highlights the main objectives and goals of the business.

Here is the executive summary of a bike rental business called “Velocity Bikes”.

Business Overview

Velocity Bikes is a bike rental business that offers high-quality bikes for rent to customers in California. Velocity Bikes offers different types of bikes such as city bikes, premium bikes, electric bikes, and mountain bikes, as well as bike accessories like helmets, locks, baskets, lights, and maps. Velocity Bikes operates from a strategic location near Disneyland Park, one of the most popular tourist attractions in California where customers can easily access the bikes and enjoy the scenic routes and attractions.

Velocity Bikes will offer the following services to its customers:

• Bike Rental – Rent bikes for hourly, daily, weekly, or monthly periods. Velocity Bikes offer a variety of bikes, including city bikes, mountain bikes, electric bikes, premium bikes, and vintage bikes.
• Bike Maintenance and Repair – During your rental period, Velocity Bikes offer a nominal fee for bike maintenance service, which includes checking the brakes, tires, gears, chain, and lights. They will also provide roadside assistance in case of any breakdown or accident.
• Bike Tours – Take guided bike tours of California’s best sights and attractions with experienced and friendly guides who provide information and tips on local culture and history.
• Online Booking and Delivery – Book bikes online through Velocity Bikes’ website or mobile app. Choose to have the bikes delivered to your hotel or preferred location, or pick them up from the shop.
• Accessories and Gear – Optional accessories and gear are available for rent, such as helmets, gloves, jackets, panniers, locks, maps, and guides. A small fee is charged per accessory or gear per hour.

Customer Focus

Velocity Bikes serves customers who want to explore California affordably and eco-friendly. Velocity Bikes targets the following customer segments:

• Tourists – Visitors who come to California for leisure or vacation are one of Velocity Bikes’ main customer segments.
• Commuters – Local residents who use bikes to get to work, school, or other places are another customer segment.
• Students – Young people who study at colleges or universities in California and need bikes for academic or recreational activities are also a target customer.
• Recreational riders – People who ride bikes for fitness or enjoyment purposes and need bikes that are suitable for different terrains and challenges are another target customer.

Management Team

Velocity Bikes is owned and managed by Bailey Howell, who has 15 years of experience in the bike rental industry. Bailey is responsible for the overall strategy, operations, marketing, and finance of the business. He is supported by a team of 30 staff members who perform the following roles:

• Bike rental manager – Responsible for managing the bike rental operations, including booking, delivery, maintenance, and inventory.
• Bike tour guide – Responsible for leading the bike tours, providing information and tips to customers, and ensuring their safety and satisfaction.
• Bike mechanic – Responsible for repairing and servicing the bikes, as well as ensuring their quality and performance.
• Bike attendant – Responsible for assisting customers with their bike rental needs, such as choosing the right bike, fitting the accessories, and providing instructions and directions.

Success Factors

Velocity Bikes aims to achieve the following success factors in its bike rental business:

• Customer satisfaction – To provide high-quality bikes and services that meet or exceed the expectations of its customers.
• Competitive pricing – To offer competitive pricing that is affordable and attractive to its target market.
• Convenient location – Operates from a convenient location in California, where customers can easily access the bikes and enjoy the scenic routes and attractions.
• Marketing strategy – Implement an effective marketing strategy that includes online and offline channels, such as a website, social media, flyers, brochures, banners, and word-of-mouth.

Velocity Bikes expects to generate revenue from four main sources. The following table shows the projected revenue for the first three years of operation:

The main expenses for Velocity Bikes include rent, utilities, salaries, marketing, insurance, taxes, depreciation, and maintenance. The following table shows the projected expenses for the first three years of operation:

The following table shows the projected net income for the first three years of operation:

Company Overview

This section describes the key elements of your business concept, such as what is your bike rental business, who is your bike rental business, and what is your bike rental business history. (Check our Charter Bus Business Plan for better understanding)

Who is Velocity Bikes?

Business plan for investors.

Velocity Bikes is a bike rental business in California that rents bikes to customers. Tourists rent bikes for a few hours to tour the neighborhood recreationally. College students and daily commuters also rent bikes for practical reasons. In addition to bike rentals, Velocity Bikes also offers bike delivery, bike tours, bike maintenance, and loyalty programs. These additional services meet or exceed the expectations of customers.

Velocity Bikes History

Velocity Bikes was founded in 2022 by Bailey Howell, who has a passion for bikes and 15 years of experience in the bike rental business. Bailey wanted to provide a memorable and enjoyable bike rental experience for customers.

The business started with 5 bikes and has since grown to 150 bikes and a larger store in the downtown area. Bailey is supported by a team of professional staff who perform various roles, such as bike rental manager, bike tour guide, bike mechanic, and bike attendant. The staff members are trained and skilled in their respective roles, and they share Bailey’s passion and vision for the business.

Industry Analysis

According to a report by Allied Market Research, the global bike rental market was valued at $2.1 billion in 2021, and is projected to reach $11.3 billion by 2031, growing at a CAGR of 18.5% from 2022 to 2031. The increase in bike rental industry is driven by several factors, such as:

• The booming tourism industry – The travel and tourism sector in the United States is expected to generate $190.4 billion in revenue in 2023. This is projected to grow at an annual rate of 3.17% from 2023 to 2027. By 2032, the sector is expected to make up 9.2% of the entire US economy. (Source – Statista )
• Rapid urbanization – By 2050, 87.4% of the US population is projected to live in urban areas. (Source – Statista )
• Rapid digitalization – The demand for digital transformation is expected to reach US$ 2.3 Trillion in 2032, exhibiting a growth rate of 14.2%. (Source – Factmr )
• Increasing adventure tourism – The global adventure tourism market was worth $366.7 billion in 2022. It is projected to reach $4.6 trillion by 2032, growing at a compound annual growth rate (CAGR) of 28.7% from 2023. (Source – Allied Market Research )

Customer Analysis

Demographic profile of target market.

The target market for Velocity Bikes consists of customers who are looking to rent a bike in California. The demographic profile of the target market is as follows:

• Age: 18 to 65 years old
• Gender: Male and female
• Income: Low to high income
• Education: High school to college degree
• Occupation: Students, professionals, workers, retirees
• Lifestyle: Active, adventurous, health-conscious, environmentally aware

Customer Segmentation

Velocity Bikes segments its target market into three main customer segments based on their purpose and motivation for renting bikes.

• Tourists who visit California for leisure or vacation typically rent bikes for short-term durations, such as hourly or daily. They prefer city bikes or electric bikes that are easy and comfortable to ride.
• Residents who live in California typically rent bikes for long-term durations, such as weekly or monthly. They prefer premium bikes or mountain bikes.
• Students who study in California typically rent bikes for medium-term durations, such as daily or weekly. They prefer electric bikes or scooters that are fast and convenient.

Competitive Analysis

Direct and indirect competitors.

Some of the direct competitors of Velocity Bikes are:

• Bounce – Bounce is a leading bike rental startup in the US, operating in 5 states including California. Its strengths include its large scale, low price, convenience, and use of technology. Its weaknesses include its dependence on scooters only, lack of customer service, and regulatory issues.
• Vogo – Vogo is a prominent bike rental startup in the US, operating in California and two other states. Its strengths include strategic partnerships, a customer loyalty program, and safety features. Its weaknesses include limited scale, high price, and operational challenges.
• Yuha – Yuha is a bike rental startup in the US that operates in 7 states, including California. Yuha’s strengths are its eco-friendly bikes, its focus on micro-mobility, and its social impact initiatives. Yuha’s weaknesses are its low speed, its limited range, and its availability in some areas.

Some of the indirect competitors of Velocity Bikes are:

• Public transportation – Public transportation includes buses, trains, metros, and taxis that provide mass transit services to customers.
• Private vehicles – Private vehicles include cars, bikes, and cycles that are owned by customers.
• Other modes of transportation – Walking, cycling, skating, and the use of innovative devices, such as hoverboards, segways, or e-scooters, are all other modes of transportation.

Competitive Advantage

Velocity Bikes has the following competitive advantages over its competitors:

• Quality – Offering high-quality bikes that are well-maintained and serviced regularly.
• Variety – Offering a variety of bikes that suit different preferences and needs of its customers.
• Convenience – Operating from a convenient location that is close to tourist attractions.
• Customer service – Providing excellent customer service that is friendly, helpful, and responsive.

Marketing Plan

Promotions strategy.

Velocity Bikes uses a variety of online and offline channels to promote its business.

• Website – Velocity Bikes has a user-friendly website that provides information about its services, prices, locations, testimonials, and contact details.
• Social media – Velocity Bikes has a strong social media presence on platforms such as Facebook, Instagram, Twitter, and YouTube.
• Flyers, brochures, banners – Velocity Bikes distributes flyers, brochures, and banners in strategic locations such as hotels, travel agencies, tourist organizations, campuses, and public places.
• Word-of-mouth – Velocity Bikes relies on word-of-mouth marketing to spread the word about its bike rental business.

Velocity Bikes offers affordable and attractive pricing to its target market. They offer flexible payment options, including cash, credit card, and online payment. The pricing of bike rental services is based on the type and duration of the rental. (Check our Air Charter Business Plan for better understanding)

The following table shows the pricing of bike rental services:

The following table shows the pricing of bike delivery and bike tour services:

Operations Plan

Operation functions.

Velocity Bikes operates its bike rental business using the following functions:

• Booking – Managing bookings from customers through the website, mobile app, or in-store.
• Delivery – Delivering bikes to customers who request delivery service.
• Maintenance – Repairing and servicing bikes to ensure their quality and performance.
• Inventory – Tracking the number and status of bikes and accessories in stock.
• Tours – Leading bike tours that cover the best sights and attractions in California.

Velocity Bikes has set the following milestones for its bike rental business:

• Launch the website and mobile app by March 2023.
• Acquire 150 bikes and accessories by May 2023.
• Hire 50 staff members by July 2023.
• Open the shop near Yosemite National Park by August 2023.
• Reach 20,000 customers by October 2023.
• Break even by December 2023.

Financial plan

Key revenue & costs.

The key revenue sources for Velocity Bikes are:

• Bike rental fees
• Bike tour fees
• Bike repair
• Accessories and Gear

The key costs for Velocity Bikes are:

• Depreciation
• Maintenance

Funding Requirements and Use of Funds

Velocity Bikes requires $100,000 of funding to expand its bike rental business. The funding will be used for:

• Purchasing 20 bikes and accessories
• Renting shop space near Yosemite National Park
• Hiring staff members
• Marketing the bike rental business
• Obtaining permits and licenses
• Paying insurance and taxes

Velocity Bikes plan to obtain funding from external sources, such as personal savings, bank loan, angel investor, or crowdfunding.

Key Assumptions

The financial projections for Velocity Bikes are based on the following key assumptions:

• The average occupancy rate of bikes is 70%
• The average rental duration of bikes is 4 hours
• The average number of participants per bike tour is 10
• The average length of bike tour is 3 hours
• The growth rate of revenue is 20% per year
• The growth rate of expenses is 10% per year

Sources of Funding for Bike Rental Business

• Bank loan – Apply for a loan from a financial institution that offers loans for small businesses by providing a detailed business plan, financial projections, and collateral to secure the loan.
• Angel investor – Find an individual or group of individuals who are willing to invest in the bike rental business in exchange for equity or ownership stake by pitching the business idea, market potential, and competitive advantage to the angel investor.
• Crowdfunding – Raise money from a large number of people through an online platform, such as Kickstarter or Indiegogo by creating a campaign Velocity Bikes and offer rewards or incentives to the backers who support your campaign.

OGSCapital: The Best Consulting Company for Your Bike Rental Business Plan

Excellent work.

excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

We hope this sample rental bike business plan has helped you. It shows the structure and format of a professional business plan and gives you some ideas on how to write your own. To write a high-quality and effective bike rental business plan, you need professional help from experts. OGSCapital is a leading provider of individual solutions for existing small/medium businesses and start-up projects.

We have been helping businesses attract $2.7 billion in financing for over a decade. Our team of experts will create a custom business plan for you, tailored to your specific needs. We conduct market research, prepare financial projections, and provide strategic advice. We offer other services, such as business continuity plans, pitch decks, due diligence, ICO whitepapers, ICO consulting, confidential information memorandums, private placement memorandum, feasibility studies, and more.

Jakub Babkins is a senior consultant who specializes in writing bike rental business plans. He has a degree in economics from Harvard University and has worked as a financial analyst, investment banker, and management consultant for leading firms. He has written more than 100 successful business plans for clients in various industries. (For example, Helicopter Business Plan ) You can trust Jakub Babkins and other OGSCapital consultants to write a high-quality and effective bike rental business plan for you. They will work with you closely throughout the process and help you turn your dream into reality.

The bike rental business plan cost depends on the complexity and scope of your project. You can get a free quote from us by filling out an online form on our website. Don’t hesitate to contact us today and get started on your bike rental business plan. We are here to support you and help you succeed.

Frequently Asked Questions

1. What is the target market for bike rental business?

The target market for bike rental business is customers who want to explore their destination on two wheels, such as tourists, residents, students, etc.

2. What are the advantages of bike rental schemes?

The advantages of bike rental schemes are convenience, accessibility, cost-effectiveness, health, fitness, recreation, eco-friendliness, and employment.

Download Bike Rental Business Plan Sample in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

How to Start a Plumbing Business in 2024: A Detailed Guide

Vegetable Farming Business Plan

Trading Business Plan

How To Write A Textile Manufacturing Business Plan

Start a Vending Machine Business in 2024: A Detailed Guide

Oil and Gas Business Plan

Any questions? Get in Touch!

We have been mentioned in the press:

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Search the site:

Bike Rental Business Plan Template & Guidebook

Whether you're a novice or experienced business owner, it can be challenging to develop a comprehensive bike rental business plan. The good news is that you now have access to the #1 Bike Rental Business Plan Template & Guidebook to make the process easier. Here, you'll find everything you need--from an executive summary and financial projections to marketing advice and a detailed look at risk management--for creating an effective plan that sets your bike rental business up for success.

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

• How to Start a Profitable Bike Rental Business [11 Steps]
• 25 Catchy Bike Rental Business Names:

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

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

The first step to writing your business plan is to describe the purpose of your bike rental 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 rental business:

Our mission is to provide exceptional quality bike rental services to our customers, empowering them with the best rental experience possible. We strive to promote a safe, sustainable and healthy environment through cycling. We will offer a wide selection of bikes and accessories at competitive prices to create a convenient and enjoyable ride. We are committed to providing excellent customer care and reliable, trustworthy service for all of our customers.

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

The next step is to outline your products and services for your bike rental 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 rental 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 rental 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 rental 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 rental business?

• Bike rental facility, such as a store, shop, or portage (depending on the size of your business and the geographical area you service)
• Bicycle inventory, including mountain bikes, road bikes, tandems, beach cruisers, and electric bikes.
• Appropriate protective gear such as helmets and pads
• Safety accessories such as locks and lights
• Point-of-sale system to manage your inventory and track transactions
• Insurance policy to cover any unforeseen accidents or injuries
• State, city or county rental permits to operate your business legally

5. Management & Organization of Your Bike Rental Business.

The second part of your bike rental 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 rental 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 Rental 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 rental business varies based on many different variables, but below are a few different types of startup costs for a bike rental 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 rental 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 rental 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 rental 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 Rental Business Plans:

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

A business plan for a bike rental business is needed as a roadmap for its development. It provides an outline for key areas such as marketing, operations, financials, and management. It also helps identify goals and strategies for the company to follow in order to reach those goals. A business plan helps potential investors understand the potential of the business and decide whether or not to invest in it.

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

You should ask for help from experts in the bike rental industry, such as bike shop owners, suppliers or other professionals who offer bike rental services. You may also want to consult a business attorney and an accountant to ensure that your plan is legally sound and financially feasible.

Can you write a bike rental business plan yourself?

Yes, it is possible to create a bike rental business plan on your own. However, it is recommended to consult an experienced business consultant or financial advisor to ensure that your business plan is well structured and takes into account all the necessary elements. Additionally, having a professional look over your plan can help to identify any areas of improvement or additional steps you should take when starting your bike rental business.

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.