Do you need help starting a bike rental shop? If YES, here is a sample bike rental business plan template.
Rental services are numerous and hold a lot of opportunity for persons willing to take the chance. If you are one of such, this bicycle rental business plan sample may be of help. If you are reading this article, then you may have specifically searched for this information.
Bicycle rental business is now, ever than before, witnessing more demand and patronage these days, and this is as a result of the oil prices that has risen. No wonder, tourists would prefer renting out a bike rather than going for cars.
Starting a bike shop for selling, repairing and assembly can be a profitable cum rewarding experience, only if you are ready to put in the necessary work and capital.
BIKE RENTAL BUSINESS PLAN TEMPLATE
Will you mind capitalizing on bike shop? Do you need the requirements needed before starting a bike shop?
Whatever your need is for starting a bike shop, this article is furnished with all what it entails to venture into the bike industry.
The incessant increased in demand for bikes has over the years brought about the appearance of more and more manufacturers in the bike industry, you have a clear chance to make a way out of those manufacturing companies by starting your own bike shop.
All you need is just a connection to be one of their retailers, and you are good to go. With the following surefire ways and method, you are bonding to have a hitch free in the course of starting a bike shop.
So therefore, if you reside in an environment where private means of transportation stays scarce or a vicinity that is so narrow that automobiles wouldn’t be able to pass through, then starting a bicycle rental business would be a perfect business opportunity for you in such an area.
Here is a sample business plan for starting a bicycle rental shop.
Define your Niche
Right! You have tracked down a suitable location plus a building for your bike shop and contacted your bike supplier.
Now, you have to identify your niche and choose the type of bike to sell before spreading the startup capital around so that you wouldn’t get stock up in the long run.
Your first supply of bikes to your bike shop should at least give your prospective customers a choice of two brands.
Your supplier will help you out in deciding the best colors, frame sizes and design to start with. In as much as you are trading with a reputable firm, you need not to disturb yourself about being oversold on any given style.
What is Your Bicycle Rental Business Startup Cost?
Starting a bicycle rental business doesn’t require millions of dollars, but yet you will need to have the enormous amount of dollars in your purse. The big part of your finances need to be set aside purposely for acquiring a standard fleet of bicycles.
Also, you will need to get the repair kits available for the maintenance and repair of your bicycles. Depending on the number and quality of the bicycles that you would be acquiring, you will need to spend something around $8000 for a nice fleet of over 20 bicycles.
Fairly used bicycles -if you actually go for them -may lower the acquisition capital, but the maintenance fee would be naturally higher if you try to bring them up to have equal value with quality ones.
Ensure you adequately maintain a varied fleet, renters’ needs and desires may vary from each other. For instance, mountain bicycles are popular and common, having it on your inventory is nothing but a great benefit to your bicycle rental business.
However, you don’t have to discard the other types as some of your potential customers and renters may find them appealing for their use. Some other important costs that you will have to maintain to keep your bicycle rental business flourishing include the insurance cover (liability and theft) and the likes.
So therefore, the number one tip for starting a bicycle rental business is for you to ensure that you have more than enough startup capital on you.
A Business Plan and Adequate Knowledge of the Bicycle Renting Industry
Starting a bicycle rental business is a profitable and rewarding exercise, but it is ideal to come up with a plan on how the business will look like in detail before you begin.
In addition, having a thorough knowledge of the rewarding bicycle rental business is the key to starting the business.
The bicycle rental industry has its own unique tricks of the trade which is of great benefits to having a knowledge of.
This vital information you need about the business can only be obtained from someone who has a vast experience in the business, and essentially, someone who will be a potential competitor.
There are several bicycle rental businessmen out there who are willing to talk and discuss the tricks of the trade with you, mind you, finding them wouldn’t be easy, may hap, it will take some bit out of your time.
An Ideal Location for Your Bicycle Rental Business
Your bicycle rental business needs to be located at a strategically chosen place or position for it to attract, capture and captivate the attention of the customers easily. An interesting position for your business is a place nearer to the highway, which will aid the motorists and the tourists to see the bicycles you put on display for rent.
Another suitable spot for your bicycle business is a location where rental services like the movie and the camera rentals are situated, these are places where renters often visit regularly, they wouldn’t hesitate pedaling through this area.
However, the importance of selecting the right and better location for your bicycle rental business is a common tradition for small business startups. Choosing the right location for your bicycle business is one of the critical factors to its success.
Having choose a perfect spot as your bicycle rental business location, the next thing you need to do when starting a bicycle rental business is to get all the startup equipment ready. The major startup equipment require for a bicycle rental business is nothing but bicycles.
Addition to bicycle is safety equipment like a helmet and a central location. You can get started with just a small booth, as time goes by, you can relocate to a wider facility as your business grows up with a well expanded revenue stream. Another important thing that needs to be considered and addressed prior to launching your bicycle rental business is insurance.
If one of your renters gets hurt while riding one of your bicycles, you will need a strong insurance to cover your personal assets plus your rental shop from legal liability, take note!
Before your bike shop grand opening, of course, you sure will have to find a reliable wholesale supplier who will be furnishing your bike shop with bikes, spare parts and accessories.
This aspect too needs careful timing: Around summer months, you may encounter difficulties in finding sources whose goods have not been sold out completely to existing dealers.
As a result, it is better to open your bike shop during the fall (the height of the season will be over then) when most of the distributors will be eager to welcome new business.
By this, you will also have the time to get yourself acquainted with the operation sequel to the spring rolls around, and your target audience will have some time, also, to get familiar to the presence of your bike store.
However, the easiest way you can get a supplier is by surfing the net for the available bike supplier.
The following are some of bike supplying company that might be of help to you: Gitane Pacific, D-I-N Industry, Beacon Cycle supply, Alpine Distributors etc.
Consider the Competition in the Bicycle Rental Business Industry
Sequel to opening a bicycle rental business, it’s advisable you do some findings on how the business of your who-be competitors are.
Find out if the competitors are really doing a good job, and it is very imperative you understand their strengths, weaknesses and look for ways you can adopt to stack up against them.
Rental Charges Rates
You should decide your Bicycle rental charges by the time spent. It should be in order of the hour spent be it half-day, full-day and/or weekend. Charges vary from one rental market to the other, but you need to be lenient on your prospects while billing them since you are just starting out; first impression they say it last even longer.
However, the bicycle rental business has been a lucrative venture over the years. For this reason, it wouldn’t be a big deal if you decide to venture into the industry as well. Master the above tips very well if you are looking for the strategies involved in starting a bicycle rental business, this article is indeed a comprehensive business startup guide for wannabe like you.
Whatever the penny you have left from the startup capital should be held tightly as a reserve capital just in case you will be in serious need of it. You never can tell, a customer can walk into your bike shop and request for 5 to 8 bikes for his children or grandchildren.
For example, so if they are not available in your stock, at least, with the reserve fund you will be able to order for the bikes from your supplier. While most of the businesses are new and thriving well, it is usually the best option to keep back every penny of profit earn into the operation, therefore, a bike shop is no an exception.
Be informed that it is not a good idea to depend on your business and fledging enterprise as your source of livelihood unless and until it has be firmly established.
Ideally, the other tips and method of starting a bike shop apart from the aforementioned depends on how well you work during the course of learning and operating the business. However, you cannot expect yourself to get rich quickly with the business but if you are ready to work hard with your bike shop in quiet and peaceful surroundings, surely, good things will come your way.
BICYCLE RENTAL BUSINESS PLAN EXAMPLE
This sample bicycle rental plan is revealing in the sense that persons who have had difficulties in putting their plans together will find this very helpful.
However, you must know that it does not start and end with your plan. Writing a good bicycle rental plan is one thing, patiently following and implementing your plan is another.
- Executive Summary
Two Wheels Rentals is a bicycle rental business located in Michigan’s Mackinac Island. This is a top tourist destination that attracts tourists from all across the United States and beyond. To explore this island, tourists would need to find a way to get around. This is where we come in. Our bicycle rental business will have a fleet of 35 new bicycles. These will be rented out to tourists from $10 to $15 per hour.
We provide a vital service that has since contributed to the boom of the tourist industry on Mackinac Island. The best part of this business is that it can be managed by one person. However, the owner Darwin Stubbs has employed a helping hand to help manage the rental business better. The maintenance costs for our bicycle rental is significantly low.
- Services Offered
We provide tourists an easy way to get around the island. All the bicycles on our fleet are well maintained and oiled to ensure that our clients have nothing to worry about. In a situation where our bicycles malfunction, we offer our client 2 options; a refund or an exchange.
Two Wheels Rentals is a low cost bicycle rental business. To finance the business, we have saved up the sum of $15,000.00. This sum will be used in buying our fleet of bicycles as well as spare parts which will need to be changed when damaged. We are setting aside 20% of these funds as running cost. The average cost of a unit will be around $300.00 depending on the seller.
- SWOT Analysis
We are dedicated to ensuring that our business is guided to profitability. The proper maintenance of our fleet of bicycles is key to our profitability. We also consider a SWOT analysis necessary for our business. This is to enable us identify where problems may lurk and plan for them ahead of time.
Our bicycle rental business is in a strategic location where there are constant droves of tourists. They need to get around the island easily. Our fleet of bicycles makes this possible. We are growth focused and seek to expand our fleet of bicycles once demand outstrips supply.
We have no previous experience in this line of business. This may count against us at some point in future. A remedy to this problem is constantly seeking ways to address difficulties at their early stages.
The future looks good for our bicycle rental business. A greater number of people are embracing the use of bicycles as an easier way to beat vehicular traffic. We are considering expanding into crowded cities. We are also taking advantage of state legislation that have addressed safety for bicycle users through the creation of dedicated lanes.
In the event of a recession, the tourism sector will be badly affected. Tourists will no longer visit because their disposable income streams have dried up. We will be at the receiving end as patronage will come in trickles or cease totally.
- Sales Projection
With the current boom in the tourism industry, our services will be in high demand. This trend is even expected to improve in the coming years. Our sales projection includes a 3 year prediction using the demand for our services.
Our forecast shows the following;
- First Financial Year $20,000.00
- Second Financial Year $50,000.00
- Third financial Year $80,000.00
- Competitive Advantage
Our advantages over our competitors are our new fleet of bicycles. These are of better quality and are brand new. We also charge one of the lowest fees within our location. This makes us the preferred bicycle rental business for tourists.
- Marketing and Sales Strategy
We have mounted billboards at the point of arrival. This informs tourists of our services. We are located close to the point of arrival. This area is strategic and can be visible from most points of the island. Our bicycles are also displayed for easy identification.
- Target Market
Our target market consists of pretty much anyone interested in enjoying a bicycle ride. Because tourists are the major visitors to Mackinac Island, they are our main target market.
As we expand our services to the mainland, we will target the busiest parts of the city. Here, our target audience will be more diverse. It will include business executives that want to beat traffic, men, women and teenagers.
Using our bicycle rental business plan sample, you will be able to put together your own plan. It does not matter how long it takes to do so.
The most important thing is that you get it right. You should try to understand the constraints or challenges, opportunities as well as underlying factors influencing the successful take-off of this business.
This will contribute in no small measure in helping you put together an excellent plan.