A bicycle shop business plan should first make a complete inventory of what you’re offering – what you’re all about, as it were. Do you make custom bicycles, or only offer major manufacturers’ brands? Will you perform repairs onsite, or do you leave bike fixes, tires, and alignments to other businesses with less retail footprint? On the topic, will your bicycle shop have ancillary products like reflective gear, chains, water bottles, and the like, or are you strictly a bike sales shop? Knowing “who you are” in business not only helps define what you sell, it will pave a path to a more reliable pro forma financial model – and banks like that. Cover these issues in your plan:
• What is the demographic profile of your target customer?
• What is the average sale price of a bicycle or ancillary product/service?
• What is the market need and how are you fulfilling it?
• Where are the chief competitors and how are you able to be better?
• What ultimate market share do you envision commanding within 3 years?
The bicycle shop business plan will need to have an industry analysis that looks at the state of the industry nationally and regionally, along with a market snapshot showing who lives near your shop and what the average household spending is on recreational equipment (the Census Bureau tracks this!). You should also be able to assess your competitors and formulate a marketing strategy for your shop that capitalizes on the weaknesses these companies exhibit. Finally, your pro forma will work best with an assumptions table that an investor or banker can tweak to gauge your likelihood for success if certain variables change. Want help here? There’s no company better equipped to guide your business planning efforts than MasterPlans in Portland, Oregon (one of the nation’s true bicycle capitals, by the way). Call 877-453-2011 today!
