• What equipment to choose for a bike rental business
• Which OKVED to indicate when registering a bike rental
• What documents are needed to open
• Which taxation system to choose for bike rental
• Do you need permission
• Bicycle rental business technology

How much money do you need to open a bike rental

Bicycle rental is a simple business with minimal start-up investment. The cost of opening a small bike rental point starts from 250 thousand rubles. Usually, the main start-up costs include the purchase of 10 - 15 bicycles and the purchase of spare parts for them. With a competent business organization, the start-up costs pay off in one season.

Bicycles for rent refers to a simple business with minimal start-up investment. The cost of opening a small bike rental point starts from 250 thousand rubles. Usually, the main start-up costs include the purchase of 10 - 15 bicycles and the purchase of spare parts for them. With a competent business organization, the start-up costs pay off in one season.

Why is rental still relevant, because today you can buy a new bike for only 5,000 rubles?

The main reasons for the demand for rental:

Reason 1. A city dweller simply has nowhere to store a bicycle, you can’t put it in a room, the balcony is also occupied;

Reason 2. Bicycles are often rented by small amateur companies (couples) who ride only a few times during the season and because of this it makes no sense to buy your own bike;

Reason 3. At the rental point there is always a choice of different types of bicycles, for example, mountain, road, two-suspension, etc., and often not for 5-6 thousand rubles, but quite expensive models and everyone can ride any of them;

Reason 4. Not infrequently, the rental is located in tourist, cultural and resort cities, where the majority of customers are visitors and vacationers who probably do not take a bicycle with them on a trip;

Reason 5. Cycling through the green park and picturesque corners in the company of friends is fun, interesting, sporty and healthy!

How to start a bike rental business

To open a bike rental shop, you need:

1. Registration of individual entrepreneurship. As a taxation system, you can choose the simplified tax system, UTII or a patent;
2. Renting a room from 20m2 or installing a mobile trailer to accommodate bicycles and equipment;
3. Purchase of 10 - 15 bicycles, with a total cost of 150 thousand rubles;
4. Hiring employees from 2 people. For the daily work of the rental point from 10:00 to 19:00, it is enough to set a shift work schedule for 2 people.

We highlight the main conditions for the successful organization of a bike rental point:

1. The rental point should be launched in a city with a population of at least 50 thousand people. A rental point opened in the countryside will not even pay off the initial costs, as there will be very few customers. The exception is resort villages, where there are many tourists in the summer;
2. Bicycle rental should be located in high traffic areas. It is also necessary to have favorable conditions for cycling, such as park areas, tourist camps, etc.
3. Availability of different models of bicycles at the rental point: mountain bikes, road bikes, full-suspension bikes, women's bikes, children's bikes, etc. The assortment is necessary first of all in order to please every client, as families, young couples, children of different ages, lovers of fast driving, etc. will contact the rental point. Naturally, each of them has its own type of bike. It is better to buy bicycles in off-season, when the manufacturer sets minimum prices.
4. Bicycles should be of good quality, you should not save on cheap models. It is better to take 15 expensive and high-quality models than 50 cheap ones that will quickly fail. For a small town, it is enough to purchase two models for each type of bicycle. Further in the course of activity, depending on demand, you can buy the necessary models.
5. Availability of a bicycle repairman at the rental point, as bicycles will break down and someone has to repair them. Plus, you can provide repair services, which will bring additional profit.
6. Bicycle rental is a seasonal business that lasts from April to October, so it is necessary to open in the spring.
7. The presence of competitors. If a bicycle rental is already open nearby, then in most cases it is better to organize a business elsewhere.

Compliance with these conditions will increase the profitability of the rental point several times.

A separate topic of conversation is the theft of rented bicycles. Of course, you will take an identity document (passport or driving license) from the client on bail, but there is a possibility of pledging fake documents. Taking the full cost of the bike as a deposit is not an option, rarely does anyone have a large amount of money with them. However, such situations will not happen often and are unlikely to have a serious impact on the profitability of the rental shop.

How much can you earn from this business

Let's calculate the approximate profitability of a small rental shop for 15 bicycles located in a park area of ​​a city with a population of about 300 thousand people.

The average rental price in the regions is 150 rubles per hour. Let about 20 people use the rental for one weekday (an average of 1-2 people per hour). On weekends, for obvious reasons, the number of customers doubles, that is, about 40 people a day. In total, it turns out that in a month (minus 5-6 rainy days) about 500 people will use the rental. The revenue in this case will be about 96,000 rubles per month.

At the same time, the monthly expenses of the rental office include:

• Rent, from 5 thousand rubles;
• Salary of 2 employees, from 25 thousand rubles;
• Repair, depreciation - from 10 thousand rubles;
• Taxes and deductions to the Pension Fund of the Russian Federation - from 10 thousand rubles;
• Other expenses - from 5 thousand rubles.

Total net income per month will be 41,000 rubles. For 6 months of work (from April to September), the total profit of the rental point will be 246,000 rubles.

Additional income of the rental point can be obtained through:

• Bicycle repair services;
• Trade in bicycles, spare parts and other sports equipment;
• Inclusion in the rental of additional equipment: roller skates, kites (for children), scooters, etc.

Additional services will increase revenue by 1.5 - 2 times.

You should not expect super profits from bike rental. Rather, it is a proven seasonal business, with low start-up costs, and does not require special training and experience from the entrepreneur. At the same time, it is possible to recoup the costs incurred in the first season of work. These facts make the bike rental business affordable for many aspiring businessmen.

Bicycle sales business can bring a steady income. Bicycles are bought by people who do not just love cycling, for some this sport is a professional activity or a way of life, so even the most expensive bikes find their buyers. Bicycles are different: city, mountain, road, sports and others.

When organizing a bicycle shop, you should think about opening a workshop at the same time. It requires additional equipment in the amount of at least 50 thousand rubles, premises, the rent of which is 15 thousand rubles, and a mechanic with a salary of 30 thousand rubles. However, the payback period of the workshop is lower and it will attract additional customers to the store.

The store will require a space of at least 50 square meters. In addition to bicycles, you can sell spare parts for them, accessories, and equipment there. You can also consider renting bikes. Parking and a bike path should be created in front of the store for the convenience of customers. The premises can be rented in a residential area, so you will save on rent, and the client will even drive a few extra kilometers to a good store.

The following staff will be required: at least two sales assistants, a cashier, an accountant. Employees who will sell the goods must understand the features of the operation of bicycles, their designs and components. The purchase of goods should also be put in the hands of a professional, the goods must be of high quality, since buyers often understand it no worse than sellers.

The cycling season is February-November, but it is better to purchase goods in the autumn, because by the beginning of the season, large shopping centers buy almost everything from suppliers, and small firms have to be content with the leftovers.

The store should be well advertised. Various leaflets, promotions and online advertising on thematic forums will tell potential customers about the store. In many cities there are cycling clubs, their members organize friendly competitions, your store can become a sponsor of such competitions and provide prizes to the winners. And if there is no such club in your city, feel free to organize it. Perhaps, such advertising will be the most promising.

So, the price of a bicycle is 25-30 thousand rubles, the markup is 25-50%, for related products - 50%. The purchase of goods requires about 500 thousand rubles, rent of premises and equipment - 200 thousand rubles, staff salaries - 60 thousand rubles.

The payback of a business with good sales is from one to one and a half years.

We advise you to open a profitable business selling bicycles. Many would-be bike buyers are unaware that there are so many types of bikes (adult, municipal, sports, road, two-seat, etc.) that serve, as everyone knows, for various purposes.

Undoubtedly, it is worth mentioning that the advantage of bicycles of individual modifications is their high price. It is comparable to the price of Russian-made cars.

I must say that even for such expensive bikes, clients are found. It must be emphasized that they tend to pay an increased price due to what customers think is the high quality materials that the bike is made of. A receipt is provided for this account.

You need to find a skilled seller who can present the goods to customers in a favorable light, you also need to take care of guarantees for the maintenance of bicycles in the event of a breakdown.

We immediately advise you to solve the problem of completing your store with various models of bicycles. I must say that the storage of spare parts and the maintenance of the bicycles themselves will require additional costs. It would be bad if we didn't point out that the low cost of spare parts and a set of bicycle keys increases the profit margin of this business.

Anyway, compared to the budget for opening a bike shop, these costs are not that big. The main thing is the moment of payback. In fact, the main trump card is the warranty service. It will attract new customers to the store. At first, you can offer as a bonus to offer free warranty service for the bike.

Arranging the placement of bicycles in the store

Bicycles are products, as everyone knows, overall, so the trading area should be about 50 square meters. To this should be added another warehouse for spare parts, equipment, devices and other products.

Choice of workers

We advise you to entrust the topic of buying a product to a competent professional. It should be noted that this should be a person who is fully versed in all the varieties of bicycles, their novelties, features of work, various modifications, and the availability of spare parts for them.

I would like to emphasize that the connoisseur who organizes sales is obliged to understand the devices of all models of bicycles sold. Strange as it may seem, but oversights in this matter can be detrimental to your bike business.

We advise you to buy bicycles in the autumn, because by the end of summer and the beginning of winter, bicycles are bought up, as everyone knows, by large trading organizations. Few people know that in winter cycling continues from month to month in different areas.

Non-professional bike riders and cyclists often organize competitions, one or the other organize friendly competitions and general rides. If a cycling society exists within the city, participate in its activities, be close to sporting events, give cups to champions.

Needless to say, if your city does not have a cycling society, then quickly create one. One fact is impressive that you yourself have created a sports society!

Calculation of commercial profit

The average retail price of a bicycle is 25-30,000 rubles. For the initial purchase of all goods (bicycles and spare parts) you will need about 500,000 rubles. Also, renting a room and additional equipment will require about another 200,000 rubles. To pay salaries to employees, you will need approximately 60,000 rubles per month.

The markup on bicycles when selling is approximately 25-50%. Also, the markup on spare parts usually starts at 50%.

For additional profit, you can rent bicycles, as well as introduce additional services - airbrushing and others.

The payback period for organizing a bicycle sales business is usually about 1 year, maximum 1.5 years.

The popularity of a healthy lifestyle is generating demand for a variety of outdoor and lifestyle products. One of these products is a bicycle.

Starting a bike selling business does not require high costs and pays off quickly. Renting the premises and salaries of employees will cost about 50,000 rubles. The purchase of goods is about 500 thousand and about 200 thousand more for advertising, various permits and store equipment. The payback period is about a year, sometimes less.

Features of a Bicycle Sales Business

When opening a store, first of all, you must consider:

• Business seasonality. In winter, the demand for bicycles drops sharply, so it is better to open a store in the spring. But the bikes themselves are better to buy in the fall. Range. Try to offer buyers all kinds of bicycles.
• Sale of related products. A significant part of the profit will go away from you if you only sell bicycles. Buy various accessories (water bottles, backpacks, etc.) and spare parts.
• Provide bike maintenance and repair. This will increase the credibility of your store.

Also, as additional options, you can offer rental, this will increase your profits. For example, a business selling and renting sporting goods (snowboards, bicycles) will pay off in an average of 10 months.

What is the benefit of buying an existing business project?

Creating your own store will take a lot of time and will require large financial costs. It will be more profitable

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Bicycle shop business plan

Ride On Bike is a bicycle retail store located near the largest university.

The owner has extensive experience in the sporting goods industry and is the exclusive dealer of brand name cycling products within a 50 mile radius of the store's location.

Ride On Bike offers all types of bikes, from cruisers (beach bikes) to MTBs (mountain bikes). In addition, the store offers all the necessary accessories, equipment and spare parts, as well as services for their installation in its own service department with certified mechanics.

The store is located in the heart of the campus, where 20 thousand students live. They constitute the primary group of consumers. In addition, since the company is the exclusive dealer of four major bicycle manufacturers, the entire local population (including students of three other colleges) in the amount of 100,000 people acts as its potential buyers.

There are three competing bike shops in this region, but none of them carry the brands that Ride On Bike offers.

The owners of the company place their greatest hopes on students living on the campus where the store is located. The university promotes an active lifestyle. Students and the shop will jointly develop various cycling programs and events. The business owner has already entered into several partnership agreements with suppliers and experts in this field. All this will contribute to the rapid achievement of success.

Ride On Bike's first year sales are expected to be $500,000. By the start of its second year, the company will be profitable, with low overheads and minimal debt. During the first five years, its owners expect to repay all previously taken loans and credits.

At the moment, to open a business, it is planned to obtain a loan from the Small Business Administration in the amount of $175,000. This money will be used for repairs, the purchase of equipment, goods and marketing campaigns. The owner is investing $25,000 in cash and $20,000 in equipment and tools into the project.

download western business plan how to open a bike shop

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