Bike Shop Business Plan Template [Updated 2024]

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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:

  • Trek
  • Giant
  • Cannondale
  • Specialized
  • Salsa
  • Yeti
  • Kona

We also carry a wide variety of accessories, including:

  • Helmets
  • Shoes
  • Lights
  • Locks
  • Pumps
  • Tires
  • Tubes
  • Saddles
  • Grips
  • Water bottles
  • Bike racks
  • 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:

Financial SummaryFY 1FY 2FY 3FY 4FY 5
Revenue$560,401 $782,152 $1,069,331 $1,379,434 $1,699,644
Total Expenses$328,233 $391,429 $552,149 $696,577 $776,687
EBITDA$232,168 $390,722 $517,182 $682,858 $922,956
Depreciation$7,000 $7,000 $7,000 $7,000 $7,000
EBIT$225,168 $383,722 $510,182 $675,858 $915,956
Interest$6,016 $5,264 $4,512 $3,760 $3,008
Pre Tax Income$219,152 $378,458 $505,670 $672,098 $912,948
Income Tax Expense$76,703 $132,460 $176,985 $235,234 $319,532
Net Income$142,449 $245,998 $328,686 $436,864 $593,416
Net Profit Margin25%31%31%32%35%

 

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

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

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

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

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

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

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

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

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
  • Marketing
  • Hiring and training staff
  • Other general administrative functions

Milestones

The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

DateMilestone
[Date 1]Finalize lease agreement
[Date 2]Design and build out [Company Name]
[Date 3]Hire and train initial staff
[Date 4]Kickoff of promotional campaign
[Date 5]Launch [Company Name]
[Date 6]Reach break-even

 

VIII. Management Team

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

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

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

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

[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

 
5 Year Annual Income Statement

Year 1Year 2Year 3Year 4Year 5
Revenues
Product/Service A$151,200 $333,396 $367,569 $405,245 $446,783
Product/Service B$100,800 $222,264 $245,046 $270,163 $297,855
Total Revenues$252,000 $555,660 $612,615 $675,408 $744,638
Expenses & Costs
Cost of goods sold$57,960 $122,245 $122,523 $128,328 $134,035
Lease$60,000 $61,500 $63,038 $64,613 $66,229
Marketing$20,000 $25,000 $25,000 $25,000 $25,000
Salaries$133,890 $204,030 $224,943 $236,190 $248,000
Other Expenses$3,500 $4,000 $4,500 $5,000 $5,500
Total Expenses & Costs$271,850 $412,775 $435,504 $454,131 $473,263
EBITDA($19,850)$142,885 $177,112 $221,277 $271,374
Depreciation$36,960 $36,960 $36,960 $36,960 $36,960
EBIT($56,810)$105,925 $140,152 $184,317 $234,414
Interest$23,621 $20,668 $17,716 $14,763 $11,810
PRETAX INCOME($80,431)$85,257 $122,436 $169,554 $222,604
Net Operating Loss($80,431)($80,431)$0$0$0
Income Tax Expense$0$1,689 $42,853 $59,344 $77,911
NET INCOME($80,431)$83,568 $79,583 $110,210 $144,693
Net Profit Margin (%)-15.00%13.00%16.30%19.40%

 
5 Year Annual Balance Sheet

Year 1Year 2Year 3Year 4Year 5
ASSETS
Cash$16,710 $90,188 $158,957 $258,570 $392,389
Accounts receivable$0$0$0$0$0
Inventory$21,000 $23,153 $25,526 $28,142 $31,027
Total Current Assets$37,710 $113,340 $184,482 $286,712 $423,416
Fixed assets$246,450 $246,450 $246,450 $246,450 $246,450
Depreciation$36,960 $73,920 $110,880 $147,840 $184,800
Net fixed assets$209,490 $172,530 $135,570 $98,610 $61,650
TOTAL ASSETS$247,200 $285,870 $320,052 $385,322 $485,066
LIABILITIES & EQUITY
Debt$317,971 $272,546 $227,122 $181,698 $136,273
Accounts payable$9,660 $10,187 $10,210 $10,694 $11,170
Total Liabilities$327,631 $282,733 $237,332 $192,391 $147,443
Share Capital$0$0$0$0$0
Retained earnings($80,431)$3,137 $82,720 $192,930 $337,623
Total Equity($80,431)$3,137 $82,720 $192,930 $337,623
TOTAL LIABILITIES & EQUITY$247,200 $285,870 $320,052 $385,322 $485,066

 
5 Year Annual Cash Flow Statement

Year 1Year 2Year 3Year 4Year 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)($80,431)$83,568 $79,583 $110,210 $144,693
Change in working capital($11,340)($1,625)($2,350)($2,133)($2,409)
Depreciation$36,960 $36,960 $36,960 $36,960 $36,960
Net Cash Flow from Operations($54,811)$118,902 $114,193 $145,037 $179,244
CASH FLOW FROM INVESTMENTS
Investment($246,450)$0$0$0$0
Net Cash Flow from Investments($246,450)$0$0$0$0
CASH FLOW FROM FINANCING
Cash from equity$0$0$0$0$0
Cash from debt$317,971 ($45,424)($45,424)($45,424)($45,424)
Net Cash Flow from Financing$317,971 ($45,424)($45,424)($45,424)($45,424)
SUMMARY
Net Cash Flow$16,710 $73,478 $68,769 $99,613 $133,819
Cash at Beginning of Period$0$16,710 $90,188 $158,957 $258,570
Cash at End of Period$16,710 $90,188 $158,957 $258,570 $392,389

 

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