In other words, if your rental operation is part of a bicycle sales and service operation, you’ll likely have a longer season than if it’s a standalone rental site. Professional services – You should consult a lawyer, at least for drawing up your customer waiver, and accountant for startup costs. In addition, you might want to consult a graphic designer and web developer for logos, signage and website creation. Fleet costs and related gear – If the 20 bike were purchased for $250 each, your startup fleet costs $5,000.
Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of – $10,000. This allows each bike to serve several users per day but reduces revenue. Monthly or yearly membership subscriptions and initial registration fees may apply. To reduce losses from theft often users are required to commit to temporary deposit via a credit card or debit card. Jack Williams® Bike Sharing Company, Inc. is established with the aim of maximizing profits in the Bike sharing industry and we are going to ensure that we do all it takes to meet and surpass the expectations of all our clients. Some of these economic externalities (e.g. reduced congestion) can be systematically evaluated using empirical data, and therefore may be internalized through government subsidy.
The owner has also formed several key partnerships with suppliers and industry experts that will ensure the long term success of the company. Concrete Carbon will employ two somewhat distinct marketing strategies to reach its perspective customer segments. The first strategy uses the website to raise awareness of Concrete Carbon’s parts to individual consumers.
3 Market Trends
There’s a standardized set of information and variables for most small businesses including the financial model, market research, and basic business overview that most executives are familiarized with. The primary expenses of an e-bike business are usually staff, rent, maintenance and repairs, and utilities. In this section you will find further information about the major expenses of the e-bike company. Another possible solution is to use online business plan software, like the one we offer here at The Business Plan Shop. It will allow you to show potential investors that you’ve thought deeply about every aspect of your bike shop, from the actions you’ll put in place to attract customers to a solid contingency plan. The written section of your business plan can’t be neglected because it puts the figures presented in the financial part into context – allowing those reading the plan to understand the risks and assets of your business model.
- Then it’s time to look at the equipment and staff that will be needed to help you operate your bike shop.
- Alpha Blonde Bicycle Shop®, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business best practices wherever possible.
- After completing your business plan, you can download your business plan in PDF or DOC file with Upmetrics.
- Consider displaying in your shop souvenirs that celebrate your neighborhood or region, such as postcards, t-shirts, mugs, bumper stickers, keychains and related paraphernalia.
- These months will be cash flow positive and will carry the company through the slower months.
This will be the measure of your performance and the basis upon which finance is invested in the new business. Making the most of the money you initially invest in your business is absolutely critical. First year sales are projected to be $500,000 with approximately 250 bikes sold, accounting for $125,000 in revenues. Gross margin on bicycle sales will average 30%, while parts, accessories and apparel will be sold at a 50% margin.
A Sample Bike Sharing Business Plan Template
A separate study on Washington, D.C.’s Capital Bikeshare found that the bike-share program contributed a 2 to 3 percent reduction in traffic congestion within the evaluated neighborhood. Performs cash management, general ledger accounting, and financial reporting for one or more properties. For many systems, smartphone mapping apps show nearby available bikes and open docks. Bicycle sharing systems are an economic good, and are generally classified as private good due to their excludable and rivalrous nature.
Watch This Video Before Starting Your Bike Shop Business Plan Pdf!
This is better explained by including an organizational chart, providing information on owners, with names, percentage ownership, level of involvement in running the business, and biography. Also covered here are details relating to costs, pricing, distribution, and promotions. This is where many entrepreneurs get overwhelmed as they cannot seem to figure out how to go about the planning process. Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500). Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
Certain sections are considered vital to writing a good plan and include the executive summary and the company description. Starting an electric bike business like any other commercial undertaking will require careful planning. As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams. In other to continue to be in business and grow, we must continue to sell the bicycles, bicycle spare parts and accessories that are available in our store which is why we will go all out to empower or sales and marketing team to deliver.