Business Idea?

Kerrmit1992

Hi guys,

I know this probably isn't a question use get asked every day. I am a business student and an avid mountain biker.

I am looking into the Idea of opening a small bike store that mainly specializes in mountain bikes (either one manufacturer or various) however i would also like to maybe do mountain bike tours within the UK and abroad, i dont know how popular this would be and im unsure of how well bike shops tend to do these days, i was hoping they are maybe doing quite well with people swapping cars for bikes with the increasing fuel costs etc.

What are your thoughts?

Thanks
Craig

1mancity2

Specializing in one type of bike is limiting your market, you want to appeal to every type of biker out there.

Think long and hard on setting up your own business, its hard really hard, and when its not going well its utterly deverstating.

I had my own business for 7yrs and when your a small business you can't take holidays, you get home worrying about stock, cash flow, wages.

And the hardest bit is employees, some are great but some can be a nightmare.

Put you off?

No?

Go for it,

If you don't try you will never know

have you done any market research yet?

cooldad

I think this is the market research.

I'm not sure riding tours here would work. Given the choice I'd rather go to the Alps, Canada, California or some 'adventure' area - S Amercia/Asia, than sunny Wales.
Can't see many tourists coming here for the riding.

1mancity2

cooldad wrote:

I think this is the market research.

I'm not sure riding tours here would work. Given the choice I'd rather go to the Alps, Canada, California or some 'adventure' area - S Amercia/Asia, than sunny Wales.
Can't see many tourists coming here for the riding.

Yeah maybe CD, but I was thinking more along the lines of, how many bike shops are there in the location hes thinking off, odviously you would open one were there wasn't one but do people ride bikes in that local area, passing trade etc.

And I think your right about the trails, unless he is planning on Scotland trails.

Kerrmit1992

I don't plan on taking it any further at the moment, I want to get my degree first and possibly land myself one of those nice graduate schemes, the bike shop is a kind back-up plan and I have to come up with a business idea for uni and just wanted to see what folk thought ... And I did say about mountain bike trips abroad as well as the UK lol

Thanks
Craig

nicklouse

you want to make money?

then selling bikes and bikestuff is not a good way.

Anonymous

Bike shops these days, you've got chains like Evans and Halfords for which you need the mentality of a Dixons salesman to work in, local shops in areas without trails which will just sell commuter and family bikes, and those near trails.

The big chains selling tonnes of very cheap stuff to people who won't ride their bikes much or for kids and are the ones that manage to succeed. The urban shops seem to come and go and depends how good they are. The trail located ones can be good but really need to offer way more than just the bikes they sell. Decent service, advice, local organised rides, and plenty of assistance and supplies to help out the riders with broken components. Add to that a stock of bikes that can be taken out on trails for demo rides and you've got a potentially good shop.

Overheads are the key factor, how much it costs to rent the shop, get the stock and hire people. Can you get good distributor deals and manage to reasonably compete with other shops and online prices. If there are other similar shops about, try to offer something different or a different range. Picking just one brand isn't necessarily a bad thing as long as it's decent stuff and plenty for people to drool over and test.

And employ people who actually like bikes, will enjoy the job and are likely to understand what they're selling or maintaining (ideally more than the customer).

I'd check out other local shops and look for a good location. Have a chat with loads of people in the area, other riders, shop owners, see what people want.

Riding tours, if you mean more than just local rides, i.e. trips further away, then you need to consider who's running those tours, costs of course and will you be taking staff away from the shop. Noting that if it's a trail located place, peak times for the shop will be weekends.

And yeah, making a big profit out of this is probably a long hard slog and may not return a massive profit but just enough to keep the business going and have some fun. You'd make more money in the bike industry by opening a warehouse and selling online.

Briggo

There is a ridiculous amount of competition out there, you'd need to make yourself stand out.

Despite what CD says, theres quite a few toured holidays in the UK, coast to coasts, Yorkshire Dales, Scotland trips etc etc etc.

cooldad

Probably right, but I wouldn't etc etc etc.

Kerrmit1992

Hi guys,

Thanks for your advice

It would be quite fun i think but i may have to have a look at another business idea ... As i mentioned this idea was mainly for Uni as they wanted us to come up with a good business idea, it may be something i might still do in the future ... if not i will have to come up with a better idea :P

Again, Thanks
Craig