Experience of universities in organizing bike rentals. How to start a bike rental business

In the warm season, both in megacities and in small towns, we see a fairly large number of cyclists. On this type of transport, you can very quickly move around the city, no traffic jams will stop you. In addition to convenience, the bike also has a number of other advantages. Everyone knows about the health benefits of cycling. Children and adults love to ride this type of transport, so a bike rental business can be a great profitable idea for making money.

We will talk about how to open a bike rental and how much you can earn from it in our article today.

Bicycle rental business plan

Any business idea requires a gradual and competent implementation. Therefore, first of all, you should draw up a detailed bike rental business plan. In this document, it is necessary to identify such important points as profitability, determine the demand for the service, competition, calculate the payback period and profit from the business.

Advantages and disadvantages of a bike rental business

1. High demand. Bicycle rental service is popular all over the world. This type of transport is in great demand due to a number of its important advantages. You can ride a bike in the park or go to the other end of the city on business. This transport is mobile, therefore it is relevant for large cities, where traffic jams often occur.
2. Small investment. Organization of bike rental is a business that does not require large financial investments. Therefore, both a novice entrepreneur (student, unemployed) and an experienced businessman (an excellent financial investment of the free part of the capital) can organize a business in this area.
3. Competition. Accordingly, the high demand for the service generates solid competition. Therefore, you will have to work hard to achieve success in your chosen field of activity.
4. Seasonality. Bicycle rental business is a seasonal type of income. But such a minus, significant at first glance, should not stop you. Believe me, with a competent approach, it is quite possible to earn a substantial amount of money in the spring-autumn.

Business registration

Each type of activity is subject to mandatory legal registration with the relevant authorities. For novice businessmen, it is best to stop at individual entrepreneurship or establish a limited liability company. Making an IP is much easier than an LLC, so if you are planning to open a small bike rental company, then stop at this option. It is better to entrust the collection and execution of documents to an experienced lawyer.

How to open a bike rental?

To organize a bike rental, you must purchase these vehicles. The demand for the service, and, accordingly, your profit will directly depend on the range and condition of bicycles.

At the initial stages, you should not buy a lot of bicycles, 5-6 units will be enough. It is advisable not to be limited to any one model, but to offer your customers a choice. Thus, sports models, mountain bikes, off-road bikes, and children's bikes should be purchased. By covering as much of the audience as possible, you will get more customers and, accordingly, significantly increase your income.

It is quite expensive to buy new vehicles or expensive models. Believe me, professional athletes are not interested in bike rental, your customers are children and people who want to relax, ride a bike in the park. Therefore, the acquisition of expensive, modern models is a waste of money. Give preference to used models from abroad, they are much better than domestic bicycles and at a much cheaper price.

Choose a rental location

The flow of customers who want to use the service depends on the correct choice of the rental location. Therefore, if you want to recoup all investments in a short time and get a good income, pay special attention to the location of the bike rental point.

Choose places with high traffic. Bicycle rental can be opened in the central part of the city, for example, in a park, near attractions, entertainment centers. It is very important that potential customers distinguish you from afar, so a bright sign will not be superfluous.

Bicycle storage

To store vehicles, you will need to rent a small enclosed space. It is desirable that the place of storage and rental be nearby in order to avoid the constant costs of transporting bicycles.

An ordinary garage is suitable for storing vehicles. It can be rented or purchased if you have the necessary funds.

How to arrange bike rental: money back guarantees

Vehicle rental is a popular service, but it can hardly be called completely safe. To keep vehicles safe and sound, every possible security measure should be taken.

An agreement should be concluded with a client who rents a bicycle, which will provide for all non-standard situations, the conditions for renting and returning a bicycle. The contract should include such important points as financial compensation in the event of a bike breakdown, as well as a fine for late return of the vehicle.

In addition to the contract, the client must provide you with a copy of his passport, name the address of residence and contact number for communication.

How much is bike rental?

You, as the owner of a bike rental point, have the right to independently determine the prices for the service. But I recommend that you competently treat such an important nuance. In this field of activity, the competition is quite strong, so unreasonable prices will only scare away potential customers. In order to understand how much bike rental costs, you should monitor the prices for a similar service in your region.

Costs and profits

1. Purchase of bicycles. The approximate cost of one is about 150-200 dollars. You need to buy, for starters, at least 10 pieces. In total, this is 1500-2000 dollars;
2. Garage rental. The rental price will depend on the area and location;
3. Salary in case you hire employees to work at the rental. Naturally, you can save money and at first work on your own.

Profit

Your income will depend on the demand for the service and, accordingly, its price. If the competition is strong, then you should not count on quick profits, but still you do not need to despair. An advantageous place, a competent advertising campaign, over time will certainly lead to success and turn your business into a profitable business.

It is quite possible to make good money on bicycle rental if you open several points in different parts of the city. It all depends solely on your entrepreneurial talent.

Additional income

In addition to providing a bicycle rental service, you can open a bicycle repair shop nearby. Hire an intelligent master and you are guaranteed a decent additional income.

Bicycle accessories. To ride a bike safely, you must not only follow the rules of the road, but also wear protective equipment. Therefore, in addition to renting bicycles, you can offer your customers to additionally rent knee pads and helmets for safe city driving.

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Business advertising

Ways to attract customers

• Advertising around the city. A fairly effective way is to distribute flyers with the address of a bike rental point. Hire people to distribute leaflets in crowded parts of the city.
• Word of mouth radio. Word of mouth is considered the most effective and fastest way to attract customers. Good customer reviews about quality service and affordable prices for the service will provide you with high attendance at the bike rental point in a short time.
• Internet advertising. Alternatively, you can advertise your services on popular Internet sites or create your own news portal, where all information about services, prices, and the location of a bike rental point will be available.
• Bright sign. An attention-grabbing bright sign is also sure to grab people's attention. Therefore, take care of this small but important nuance.
• Promotions and discounts. Nothing pleases people like promotions, they always attract additional customers. A competent approach can significantly increase your profits. For example, you can arrange a day of cyclists, in which the cost of renting a vehicle will be 50% lower. Or offer discounts to customers who have brought several friends with them. In general, in this matter, fantasy is limitless, act at your own discretion.

I wish you good luck in business and quick profits.

The implementation of any business idea, even the most successful and original, must be preceded by the stage of creating a business plan. This allows not only to assess the situation on the market, to identify the main competitors, but also to see the real threats, weaknesses of the project. In this article, we will draw up a detailed bike rental business plan, which will allow us to develop a further strategy of action and indicate the profitability of the idea.

Right away, let's talk about the idea itself. Bicycle rental is a rather specific topic, the conditions of which are limited by geographical location.

With the correct calculation of all parameters, this business can bring good profit. It is distinguished by a quick payback, the presence of regular customers and does not require a complex implementation scheme.

Bicycle rental is especially interesting in the warm season, in metropolitan areas and medium-sized cities. This type of transport allows not only to quickly move around the city, but also to take a bike ride, admire the sights, and play sports.

Not surprisingly, bike rental in big cities is in such demand during the warm season. To implement this idea, you need to have a starting capital of 200-250 thousand rubles. In this case, the payback period will be 5-6 months.

And now let's take a closer look at where to start and how to write a business plan.

Principles of creating a business plan

Many novice businessmen who decide to start their own business make a very common mistake. They rush, as they say, “into the pool of their heads” in the implementation of a business idea, without prior planning.

At the same time, it is the key to the successful implementation of the project. What is it and why is such a document needed? If you think that writing a plan to implement a business idea is a waste of time, then we will immediately turn your attention to the main goals of this document.

A well-written business plan will become a step-by-step guide in the future, which will allow you to achieve your goal without deviating from the main idea. This document reflects all aspects of the activity and helps to plan the sequence of actions necessary for the successful implementation of the company's goals.

He helps:

• analyze the competitive environment;
• define the target audience;
• calculate the payback period of the business;
• write the required amount of raw materials and equipment to implement the idea;
• see the strengths and weaknesses of the project.

If you do not have initial capital to implement the project and you plan to seek help from private investors, then you will need to draw up two documents.

A business plan for internal use is written, as they say, "for yourself." A big mistake will be the distortion of data, ignoring weaknesses. You must clearly understand all external and internal threats to your business, calculate the real payback period and the expenses that will simply be incurred to implement the business.

It is this document that will be a reference book that will point the way step by step.

The external document is drawn up primarily for investors or business partners. Of course, it is also not worth distorting the data or embellishing it. Do not forget that such a business plan will be read by literate people who understand finance. But at the same time, it is important to reflect the business idea in its best form. Information should demonstrate the strengths of the project, indicate its quick payback with minimal investment.

It is better to start developing a document right away from a plan for internal use, in order to consider the business in the process of creating it, taking into account its weaknesses, analyzing the competitive market, and identifying risks.

It is possible that most of the information will not be included in the document intended for investors. But for you it will be a serious help in the proper organization of the business process.

Video. How to make money on bike rental?

What to consider in a bike rental service?

Keep in mind that bike rental is not only a geographic restriction, but also a seasonal business. Agree that it is unlikely that in the metropolis, in January, someone will need to take a bike ride.

The main direction of this business is the rental of two-wheeled vehicles. But to increase profitability, you can not limit yourself to this small service. To strengthen your position in the market and attract more customers, you can offer related services and products.

The season that is most favorable for this business lasts almost 7 months, from April to October. Therefore, during these months it is necessary to reach a profit that will allow the remaining five months of the year to keep the business afloat. Do not forget that even without handing over the transport, you will have to pay rent, pay taxes of a private entrepreneur, possibly service equipment, etc.

How will a business plan help when implementing a bike rental project?

To achieve success in the implementation of any idea, careful planning is indispensable. An assessment of strengths and weaknesses, a competent analysis of the competitive environment will help to successfully implement a business and prevent serious mistakes.

A business plan is an effective management tool that allows you to:

• establish a sales market;
• find your niche in the market;
• attract investors;
• enlist the support of business partners;
• correctly define goals (short-term and long-term);
• calculate production and advertising costs;
• develop a marketing policy.

Pros and cons of a bike rental business idea

Before starting to write a business plan and implement the idea itself, let's analyze the advantages and disadvantages of this project, identifying the strengths and weaknesses.

Advantages:

But, despite all the visible advantages of this business idea, it would be unfair not to mention the disadvantages of renting a bike.

Flaws:

1. Business seasonality. This factor stops so many businessmen and forces them to abandon the idea. The idea that a business will only operate 6-7 months of the year is not for everyone. After all, you want to establish a business that would function all year round, generating income. Here you will have to pay several months a year for rent, maintenance and maintenance of bicycles.
2. High competition. Actually, this minus smoothly follows from the advantage of high demand. The higher the demand, the more offers - this is the law of the market. Therefore, in order to adequately enter the market with this idea and successfully implement it, it will take a lot of effort, conduct a good marketing campaign and study the competitive environment, identifying weaknesses.

Given the high competition, when writing a business plan, a strong emphasis should be placed on market analysis and the search for a target audience. All this will allow you to occupy your niche in the market and really offer the client a worthy product.

Step-by-step instructions on how to open a bike rental

Before the implementation of the business itself, the purchase of equipment and the search for premises, great attention should be paid to the paperwork.

Step #1. Paperwork.

For a beginner taking his first steps in business, this stage will cause certain difficulties.

You must first register an IP. This procedure is carried out at the tax office, where the following documents are presented:

• passport of a citizen of the Russian Federation;
• receipt of payment of the state fee (800 rubles).
• Application form P21001.

After submitting all the documents, the employee of the Federal Tax Service reviews the documents within 5 working days, after which he issues the Certificate of registration of the IP.

As for the taxation system, there will be no particular difficulties here, since bike rental is carried out according to a simplified scheme.

According to this scheme, the entrepreneur pays 6% of all profits and contributions to the Pension Fund, FFOMS.

• passport of a citizen of the Russian Federation;
• IP registration certificate;
• a document confirming tax registration;
• a lease agreement for premises;
• medical books of employees (in the event that you hire staff);
• permission from the fire service and the sanitary and epidemiological station.

Step #2. Finding a room.

This stage is one of the most important in this form and in many ways, it is the place of hire that will determine the success of the entire project.

On the one hand, it is cheaper to rent premises for your business on the outskirts of the city or in a residential area, but in this case you should not count on a large flow of customers.

Such a business should be implemented in a crowded place, with good traffic and excellent transport interchange. After all, many residents and guests of the city will get to the bike rental place by public transport or by car.

Of course, you need to correctly assess your financial capabilities, but you should not save on renting a room for a bike rental.

A good location will play a key role in this business and largely determine profits, so pay special attention to finding a room.

The ideal place would be:

• a park;
• embankment;
• tourist base;
• resort center;
• lake, etc.

It will be necessary to conduct a safety briefing for each client, so it is imperative to keep an appropriate log.

For the convenience of customers, it is important to organize a corner where a person can change clothes and shoes. An excellent option for the service will be lockers in which tourists can leave their personal belongings while walking around the city or its environs.

Here you can expect another surprise. Not all park areas allow bike rental, so before renting, you should ask the local administration about the legitimacy of the business.

As for the area of ​​​​the premises, here you are counting on the scale of your project. If you do not plan to rent more than 7-10 units of transport, then 20-25 square meters will be enough for you. At other scales, take care of a larger area of ​​\u200b\u200bthe room.

The rental price, in many respects, will be determined by the peculiarity of the region and the distance from the center. Therefore, it is difficult to talk about the average price per square meter.

Step #3. Purchase of equipment.

At this stage, it is very important to accurately analyze the competitive market, to determine its strengths and weaknesses.

It is equally important to clearly define the target audience. You can purchase vehicles of different price segments and, accordingly, determine a differentiated pricing policy.

For a budget group of tourists, you will rent one type of transport at a lower price, for professionals - a more expensive one.

You don't have to buy a lot of bikes at once. Keep in mind that it will take some time before the business is up and running and generating a steady stream of customers. In order to start, 10-15 pieces will be enough.

With increased demand, you can always buy the required number of bicycles. In addition, by this time you will already see in which price category bicycles are more popular.

You should also not buy deliberately cheap transport. Firstly, you immediately discredit yourself as a quality service in the eyes of the client. Secondly, after a few weeks of active use, you will have to spend money on vehicle repairs and replacement of spare parts.

Choose the middle price segment, paying attention to the following indicators:

• frame height (within 18-20 inches);
• light durable metal;
• good shock absorbers;
• reliable braking system;
• the lineup should contain not only men's, but also children's, women's bikes.

For the assortment of your bike park, you can buy models from the category of "street" (street) and mountain bikes. In the process of implementing a business, you will see which models are most popular and will be able to complement this model range.

As for the costs, this, of course, will be the most costly part of the project implementation.

The average cost of one medium market bike is 10-15 thousand rubles. To purchase 10 bicycles, you will need 100-150 thousand rubles.

A little advice. Given the seasonal nature of the business, it is best to purchase equipment in the winter. At this time of the year, manufacturers offer the lowest prices for this group of goods.

The following items should also be included in the category of expenses for equipment:

• helmets;
• bike bags and backpacks;
• repair tool;
• pumps.

Step number 4. Personnel search.

In this part of the implementation of the business plan, you will not encounter great difficulties, since this business does not require certain qualifications. To perform the functional duties of an administrator or seller of services, it will be enough to have a minimal understanding of cycling.

Keep in mind that you may need a technician who will check the technical condition of the vehicle from time to time, change spare parts, service bicycles, etc.

Depending on the flow of customers and the scale of the business, you can do it in two ways:

• Hire a full-time staff member whose functional duties will include servicing transport and renting bicycles to customers.
• Invite a technician at a certain time and pay for piece work.

When looking for staff, focus on the following requirements:

• pleasant appearance;
• sociability;
• courtesy and ability to instruct;
• responsibility and discipline;
• basic knowledge of cycling.

Stage number 5. Search for distribution channels

Advertising determines the success of any business and future profits. You can, of course, open a bike rental point and wait for word of mouth to work. Or you can take matters into your own hands and organize an advertising campaign in order to attract as many customers as possible.

Study the actions of competitors and analyze how they advertise their services.

Here it is difficult to give advice regarding the search for advertising channels, since everything depends on regional characteristics.

• distribution of leaflets in places of mass influx of people;
• advertising in public transport;
• newspaper ads;
• billboards;
• promotion in social networks;
• partnership programs.

Considering that the main part of the business is built on regular customers, be sure to think about a system of discounts, bonuses, etc. It should be interesting and profitable for customers to return to this bike rental point.

And, of course, do not forget about advertising the rental point itself. The sign must be visible and attract people's attention. You can creatively approach the implementation of the business and hire a person for the first time who will invite tourists to use the rental services.

Financial plan

This part of the document reflects all the costs associated with the implementation of the business idea. We will give an example of an estimate for a bicycle rental point in the amount of 15 pieces for a city with a population of 300 thousand people. The estimate is approximate and depends on the scale of the business, the location of the point.

• paperwork and certificates will require about 10,000 rubles;
• monthly rent of the premises -10,000 rubles;
• transport and purchase of other equipment - 160,000 rubles;
• payment for two employees - from 30,000 rubles;
• repair work - 15,000 rubles;
• advertising company (for the first month) - 5 thousand rubles.

TOTAL: 230 thousand rubles.

Income

This is perhaps one of the most interesting points that directly indicates the profitability of a business.

Many investors and business partners begin their study of the document with this chapter. Here it is important to set the price correctly so as not to dump, but at the same time not to underestimate profits.

Additionally, you can offer customers and related services that will increase your competitive advantage in the market and at the same time increase revenue.

It could be:

• organization of outbound tourist routes;
• invitation of guides and guides;
• development of personal routes to places of interest;
• organization of bike quests, etc.

On average, one bike rental point (at the rate of 15 pieces per month) brings the owner about 100 thousand rubles a month. Of this amount, you will have to pay about 60 thousand rubles for expenses.

There are 40 thousand rubles left. The payback period for such a business will be 6 months, which is quite good in terms of investing money.

Video. Bicycle rental business

Important Points

Given the specifics of this business, for its successful implementation, it is important to consider the following points:

1. Before the issuance of each piece of equipment, it will be necessary to conduct a briefing. The client must sign in the appropriate box confirming the passage of the safety briefing. This is a mandatory requirement, failure to comply with which can lead to serious problems in the event of an accident.
2. In order to increase the security of the service, it is necessary to take care of the return of the vehicle by the client. To do this, it will be necessary to conclude an agreement with each client, which provides for all situations, including breakdown, damage to the integrity of the hull, etc. This contract must necessarily reflect penalties for untimely return of the bike or for return in improper condition.
3. Each client must provide a copy of the passport when making a rental service, name the address of residence, leave a contact phone number.

Conclusion

Bicycle rental, despite the simplicity of the idea, is a new direction that has not yet fully filled the market.

With the right business organization, studying the competitive market and offering a high quality service, you can receive passive income from 40 thousand rubles a month.

Video. Bicycle rental business idea

If you have a small net worth and a desire to go into business, we recommend that you consider opening a bike rental shop. In the business environment, it is believed that this is a youth type of income, and is well suited for novice businessmen. Insignificant material risk, constant work with clients and regular income is what you need to learn how to earn money on your own.

Organizing a bike rental is easy. However, despite the relative simplicity of such a project, there are some nuances that need to be taken into account when deciding on the advisability of working in this direction.

Bicycle rental as a business does not require too complicated organization. To get started you will need:

• register as an entrepreneur (check out);
• rent a room adapted for storage and maintenance of bicycles;
• purchase bicycles, equipment and accessories necessary for cycling;
• organize an advertising campaign.

This is a necessary minimum, with the condition that the rental organizer himself will deal with the issuance of transport, its acceptance and repair.

If the owner of the station does not have the skills and knowledge necessary for the maintenance and overhaul of bicycles, an additional mechanic will need to be hired.

Important! If an entrepreneur planning to open a bike rental is already registered as an individual entrepreneur for another type of activity, before opening the rental, he needs to change or add the code for the type of activity according to OKVED 71.40.4 (“Inventory and equipment rental”) and enter information about the new code in USRIP.

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Formation of the material and technical base

The main thing for the rental station is bicycles. There should not be many of them, but they should be different so that each client can choose a transport for his level.

It is unprofitable to rent low-cost bicycles for rent, as there is a risk of frequent breakdowns. Acceptable price range - from 20 to 50 thousand rubles. It is not worth buying too expensive equipment.

The range of the station should include bicycles:

• children's;
• women's;
• cross;
• mountain;
• highway;
• cruisers.

At the box office, it is enough to have two or three units of each type of bicycle transport. On average, the cost of bicycles will be about 500 thousand rubles.

Accessories (helmets, gloves, bags, pumps, etc.) as well as consumables for repairs will cost approximately 100 thousand rubles.

Acquiring a room for a bike rental is unprofitable. Such a deal will require large investments, and there is not so much practical use in this acquisition.

Moreover, recently, rental entrepreneurs rent pavilions for bicycle equipment only for the warm season, and for the winter period they deposit all the equipment in specially equipped garages. This significantly reduces running costs.

If you are planning to open a bike rental as an investment, in which the entrepreneur only makes a profit, and the organization of the commercial process is carried out by employees, then the estimated costs will increase significantly for the wages of one or more specialists.

How to attract customers

The best marketing ploy for bike sharing is to set up a station in a good, busy location.

How and where is the best place to rent bikes? The answer to this question depends on the characteristics of a particular locality. Judging by the general trends, the greatest demand for bicycles is in rental stations located:

• at the entrance to city parks;
• in areas of cities equipped with bike paths;
• in recreation areas near city lakes;
• in busy areas of sleeping areas, etc.

Before you open a bike rental, you should make sure that potential customers have the opportunity to receive information about the start of a new project. To solve this problem you will need:

• installation of information signs and signs;
• distribution of announcements and leaflets.

When can you expect profit?

One working season is considered a good indicator for the payback of bike rental, if about 600 thousand rubles were initially invested in the station.

In order for the rental to earn 150 thousand per month, each bike (out of 20 units purchased) must travel for about 40 hours. This is approximately 1.5-2 hours a day, with an average cost of 150-200 rubles per hour. The figure is small and quite achievable in the conditions of even a not very large city.

With active work - 6 months, the entrepreneur will have the opportunity to fully cover investments in the amount of 600 thousand rubles during this period.

Monthly salary for staff is about 30 thousand rubles.

Rent and utility bills - up to 20 thousand rubles.

Do not forget that force majeure, breakdown of equipment, illness, etc. are possible. To cover unforeseen expenses in the first year of operation, it is recommended to set aside part of the earned funds in a kind of stabilization fund in order to insure yourself against any financial troubles.

The following video talks about new ideas in the work of bike rentals and the principles for setting tariffs for services:

First of all, you should decide whether a business is right for you, where you really have to work most of the time, especially for the initial stage, when the money has already been invested and there are no customers - you will have to “endure” a lot of things until the moment of the first profits.

The bike rental business is not suitable for all places, it will be especially successful where people want to spend time together and for a long time - resort towns will do just fine, bicycles are also in good demand in megacities near parks, alleys and central squares.

Usually people just notice your service and instead of the usual, walking, they prefer “rides” on a bicycle, as a result of which you make good money on customers, and they, for a small amount, get a lot of pleasure and return to childhood (after all, in the “ordinary” Most people have never ridden a bike in recent years.

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Such a business is suitable for those who want to start, but are afraid of difficulties, although they are here, they are not catastrophic, and all problems can be solved as they become available in a short time without much loss. "Ease" is determined by many things - first of all, small investments (having only a few thousand dollars "in the bosom" you can start working for yourself, taking all the income personally, communicating with clients and spending time in nature), small risks - almost no one wants to "hijack » your bike, because it will be caught almost immediately, but in case of breakdowns, you will face minor losses (you can fix a bike for a couple of tens of dollars, in most cases).

Target Audience for Bicycle Rental Business

You need to stay in crowded places, usually they are parks, embankments, city squares. A lot of "couples" pass by who may want to use your service in order to bring themselves pleasure, and you - a pretty penny that will cover the costs, and even for "tea" will remain. In most cases, in such a specific type of business as bike rental, it is the location that “decides”, since no one will book a trip for two in advance - the desire to ride usually arises spontaneously, you just need to influence being visible, as well as provide a pleasant pricing policy and comfortable conditions.

When renting several bikes, you can make a discount - it’s important for those who walk with families, for example, renting 2 bikes for themselves, you can offer them 3 for a child for free, thanks to this approach, this trio can become your regular customers for the whole season, and next time will bring even friends of the family.

Where to open a bike rental point

Here you have many options, the only criterion that must be taken into account at 100% is the cross-country ability and crowding. Resort towns are especially good in these parameters, where every day a thousand or two potential customers arrive who want to relax and have fun during their holidays. It is possible to organize as a static point when you simply rent bicycles to anyone who pays and gives documents, or you can “bring” bicycles to the place - this method justifies itself for long-term rentals.

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The latter takes place on vacation, for example, in Thailand, or even in our area, a person will gladly pay several hundred hryvnias for renting a bicycle for the entire duration of his stay, because it is much more convenient to go shopping or to the beach, and the fee is insignificant.

For the purpose of advertising, it is worth coming up with special offers for customers, and not just hanging up leaflets - they should also be, because upon arrival, most of the vacationers find themselves in this area for the first time and do not even know that your bike rental is available, but by creating tempting conditions to get paying consumers will be even easier.

Start-up capital and the main expense in the bicycle business

One of the undoubted advantages of the bike rental business is the low entry threshold, unlike car rental or any other special. equipment, you only need a few thousand dollars to buy bicycles, as well as a little money “in reserve” in case of breakdowns and pay salaries (irrelevant if you decide to personally deal with all issues, including working with clients, with a small number of bicycles this approach is fully justified and will save you hundreds of dollars).

This is one of the types of business that you can start even with borrowed funds. Money for the purchase of the first bicycles will be given to you without any problems at the branch of any normal bank, since the amount is small - there will be no special requirements for you, as a candidate, to receive funds. As for the specific figures - to buy 10 bicycles (which may even be a lot for the first term), you will need about 2-3 thousand dollars, for an employee’s salary (if you don’t want to work yourself) about 250-350 dollars (depending on the region), 3 hours of driving today cost "on average" about $ 5, so if you load at least some of them to zero, you definitely won't work.

Risks associated with the cycling business

Most likely, astute readers have already guessed all the risks themselves, in fact - there is only one risk, namely, bike theft, but given the fact that there is an agreement between you and the tenant, and plus you have copies (and in some cases, original) of the passport, if the bike disappears or breaks down, it will not be difficult to file a claim. There are many nuances, for example, a bicycle may break down not through the fault of a person, so it is best to take over the repair in order not to produce dissatisfied customers (they break property on purpose, well, very rarely).

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In order to protect yourself, learn all the nuances and laws regarding the bicycle business, this is not difficult, but it will help resolve disputes quickly and without problems for each of the parties.

How much does bike rental make

Having spent about 3 thousand dollars on the purchase of bicycles, you most likely want to return them as quickly as possible and make a profit. With a good flow of customers, this will not be difficult, but in the event of downtime, the return on investment will increase significantly. For people with little capital and a lot of free time, we can advise you to work alone, so as not to spend precious dollars on salaries, and it makes no sense to fool around when you can earn money (after all, this is what business is for).

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Until quite recently, it seemed that the number of people willing to rent expensive things was reduced to almost zero. But quite unexpectedly, a new trend appeared on the market - bicycle rental, which not only managed to survive the "fashion syndrome", but also steadily occupied its niche in the service market. Bicycle rental today is quite a worthy and promising type of business, designed for people who like to ride, but do not have the opportunity to purchase a bicycle or simply do not have the necessary space to store it.

The demand for modern bicycle models makes it possible to make this business almost year-round in the southern regions of the country (from April to November). In large cities, the number of people who are ready to transfer to this type of transport is growing due to traffic jams and the trend towards an active lifestyle.

In the middle lane, where the cycling season lasts from March-April to October-November, the prospects for high profitability of bike rental are also becoming more obvious, due to the growing demand for bike rental as a profitable, simple and convenient means of transport.

Integral indicators

The goal of the project is to create a bike rental point in a city with a population of about 1 million people. Project objectives:

• Promotion of cycling.
• Meeting the needs of the population in cycling as the most convenient means of transportation in large cities.
• Organization and dissemination of new forms of family recreation using bicycles.

The main target audience is young people aged 14-35, families with children, tourists and city guests.

The project does not require large investments and is characterized by a low level of potential risks.

Most organizational and functional activities are carried out directly by the founder - an individual entrepreneur.

The value of the total cost of the project	RUB 2,492,574
Discount rate
In year	Per month
5%	0,407%
Estimated time to reach the payback point / including discounting	17 months / 17 months
profitability ratio	8,16%
Yield index	3,32
Internal rate of return	7,40%

Market analysis

The project is designed to create a small business entity for a city with a population of about 1,000,000 people, rich in historical sights, cultural and recreational facilities. The presence of this business facility in such a locality is an appropriate solution in terms of its profitability and efficiency in achieving the declared goals.

As the analysis shows, bike rental is becoming an increasingly popular and popular type of business. Its market share is constantly growing. At the same time, against the backdrop of a rapid increase in interest in bicycles as a means of transportation, the intensity of their sale into ownership is also growing.

However, for a number of groups of the general target audience, renting a bicycle is more preferable. These include:

• Those who do not want or do not know how to service this vehicle.
• Low-income people who cannot afford an expensive bike.
• People who use this mode of transport periodically.
• People who have nowhere to store a bike.
• Families with children who believe that it is inappropriate to own a bicycle while the child is growing up.

As statistics show, in settlements with a similar population throughout the entire cycling season, on average, from 18 to 25 rental facilities are actively working. Their location is not always dictated by the optimal conditions for business development, which significantly reduces its profitability.

Description of the object

The project provides for the organization of a bicycle rental point located in a place where the urban infrastructure allows the active use of this vehicle for movement and recreation.

The bike rental point is located in a rented room with an area of ​​20-25 sq. meters, equipped with a branded rack, racks for temporary storage of bicycles, a workplace for a cashier-operator.

The entrance to the premises and the counter at the bike rental shop are designed in a modern style to attract potential customers and familiarize them with the services provided. Design development is carried out by specialists.

The car park is calculated based on the proportion:

• Universal bicycles for men and women - 60%.
• Teenage bikes - 20%.
• Special ladies bikes - 10%.
• Children's bicycles - 15.

For customer service, only new machines of modern models are purchased.

Services

The point provides car rental for various categories of users as a main service. The rental period is from 1 hour to several days. The contract for car rental is drawn up directly by the administrator, the bike is provided to the client on the security of a passport or other document proving the identity of the tenant. It is also permissible to conclude a lease agreement without a pledge of a passport, with the presentation of a photocopy of the document.

In addition, customers are charged a security deposit in the amount of 3 thousand rubles, which is returned to the tenant in full after the end of the lease term. If technical malfunctions or damage to the car are found at the time of its return to the rental point, the costs of restoring and repairing the vehicle are reimbursed from the deposit. The amount of compensation is calculated according to the cost of repairing or restoring the bike.

It is envisaged that when signing a lease agreement, the client must familiarize himself with the price list of services for the repair of the most common types of damage to equipment.

The following prices for bicycle rental services are set:

Type of service	Price
Name of service	Basic	Medium
Bicycle rental for adults and teenagers	130 rub. in 1 hour	110 rub. in 1 hour
Children's bike rental, 1 hour	100 rub. in 1 hour	90 rub. in 1 hour
Discounts
Duration of bike rental	Discount amount
12 hours (day/night)	20%
24 hours (day)	50%

Considering that over 80% of users prefer to rent bicycles for no more than 3-4 hours, the provision of discounts will be episodic.

In addition to bicycles, for a fee, tenants will be given a full or partial set of protective attributes: a bicycle helmet, knee pads, shoulder pads, etc.

The bicycle rental agreement provides that in case of violation of the terms for returning the cars without prior notice, the client is charged a penalty in the amount of 10% of the cost of the rental period, equivalent to the delay period (rounded up to the nearest hour).

Marketing

For the main part of the target audience, the sale of services is carried out in a passive mode. The main resources for attracting consumers and increasing the reputational status of an enterprise, first of all, are:

• Eye-catching design of the room and reception desk, made in an urban style.
• Attentiveness, sensitivity and correctness of the staff.

The most important competitive advantage of the company is the location of the bike rental point and the technical condition of new models of cars issued to customers.

Maintenance of the bicycle fleet in a technically sound condition is ensured by their regular maintenance, cleaning and washing.

The bike rental point is positioned on the service market as an enterprise of the middle price segment with the provision of one class of cars for rent - city walking bikes. At the initial stage of business development, this circumstance should be considered an advantage, since it makes it possible to unify the pricing policy.

Production plan

Modern models of bicycles are the main means of production of rental services. They are purchased in bulk in the amount of 30 pieces according to a given range of machine types.

The demand for bicycle rental services has a pronounced seasonal dependence. The peak of sales falls on the spring-summer and early autumn periods. Bicycle rental is most actively used in the evening, on average for 3-4 hours.

In winter, the equipment undergoes maintenance, lubrication and storage. In the spring, it is re-preserved.

For the repair of components and parts of bicycles, qualified specialists of the appropriate profile may be involved. It is recommended to invite such a specialist to the state, then, in addition to bicycle rental services, you can offer services for minor maintenance and repair of bicycles, including for owners.

This business plan for renting bicycles with calculations provides for the following amounts of revenue:

	Services list	Average monthly plan for the implementation of services (quantity)	Unit price	Planned revenue
1	Adult bike rental, 1 hour	2 340	110 rub.	257.4 thousand rubles
2	Rent a children's bike, 1 hour	360	80 rub.	28.8 thousand rubles
Total:				286.2 thousand rubles

These are the maximum figures for the summer period. Due to seasonal fluctuations, revenue is expected to fall by 30-70% in the spring and autumn months, depending on the weather. Off-season months: December to March. If the region allows, it is possible in the future to open snowmobile and ATV rentals for the winter months. The service will be used by hunters, fishermen and outdoor enthusiasts.

Recruitment

The founder of the enterprise is the main administrator of the bike rental point. Accounting support of the project is outsourced. If necessary, 1-2 more seasonal hired workers are involved to work as an administrator.

Operating mode - shift (two days after two), from 10:00 to 22:00 hours.

Staff costs:

	Job title	Salary	Number of units	Payroll value
1	Bike rental administrator	22 thousand rubles	3	66 thousand rubles
	Total:			66 thousand rubles
	The amount of social contributions			19.8 thousand rubles
	Total			85.8 thousand rubles

Financial plan

An example of this business plan is designed for a 5-year period of operation of the enterprise.

The total investment is 455 thousand rubles, including 325 thousand rubles - the entrepreneur's own funds. The missing amount is a bank loan for a three-year period at 18% per annum.

The main expenditure items of the project:

• Purchase of bicycles.
• Rental equipment.
• Payment for services for the development and promotion of the site.

There are no variable costs in this business plan, since it is not possible to accurately calculate the costs for 1 hour of renting a bike.

Depreciation is calculated over 5 years using the straight-line method, taking into account the cost of fixed assets.

The calculation of fixed costs for 1 month is presented in the table:

Potential risks

The most obvious potential risks for this business are:

• Relatively small fleet of bicycles, which has a negative impact on sales.
• A slightly higher price level at the initial stage of the project.
• High competitive environment and use of dumping by competitors.
• Failure to fulfill the sales plan for services.
• Bicycle breakdown.
• Unfavorable weather conditions.
• The emergence of similar business facilities in the immediate vicinity of the bike rental point.

Based on the SWOT analysis of the project parameters, the overall risk level is assessed as medium.

Eventually

The main advantages of this project should be recognized:

• Low level of investment.
• Good location for bike rental.
• A new fleet of modern bike models.
• Having your own website to promote services on the Internet.
• Possibility to ensure high consumer loyalty through the use of new bicycle equipment in the rental.
• Possibility of further expansion of the enterprise.

These advantages make it possible to ensure high profitability and efficiency of the project, which is clearly confirmed by the calculations.

The estimated payback period is expected during the first season. During the 2nd and 3rd season, you can earn, according to the weighted average, about 200 thousand rubles in the seasonal months. From the 3rd season, a gradual renewal of the bike park begins. In the future, this process will be continuous. Every year it is planned to purchase new bicycles, increasing the fleet, and withdraw from circulation 30% of the most worn ones.