Business Plan for an electric bike business

-Sample-
Table of content:

1.Industry Overview

2.Executive Summary

3.Our Products and Services

4.Mission and Vision statement

5.Job Roles and Responsabilities (Personnel)

6.SWOT Analysis

7.Market Analysis

8.Target Market

9.Sales and Marketing Strategy

10.Sales Forecast

11.Publicity and Advertising Strategy

12.Pricing Strategy

13.Buget

14. Sustainability and Expansion Strategy

1. Industry Overview

Businesses that are into electric bike hire services basically engage in renting out their electric
bikes to customers. Electric bikes are categorized according to the power that their electric
motors can deliver. There are a great variety of electric bikes available worldwide, from electric
bikes that only have a small motor to assist the rider’s pedal-power (i.e., pedelecs) to more
powerful electric bikes which tend closer to moped-style functionality: all.
However, retain the ability to be pedaled by the rider and are therefore not electric motorcycles. A
full charge typically takes between two and a half to six hours, depending on the manufacturer,
battery capacity, and battery chemistry.

Despite the fact that revenue for the electric bike hire services has grown over the last half a
decade, many bike dealers had difficulty staying in business during the period of recession. No
doubt, the industry has fared well overall as cycling has gained popularity for its health and
environmental benefits, and as rising disposable income has encouraged customers to hire electric
bikes for fun.

Nevertheless, despite rising consumer demand, external competition for electric bike sales from
mass merchandisers, which can provide less expensive electric bike from low-cost brands, has
steadily increased.

The Bike Dealership and Repair industry is indeed a thriving and profitable industry in most
countries of the world. It is a major sector of the economy of the united states of America and
they generate a well over 1 million annually from more than 13,927 bike dealership and repair
shops scattered all around the United States of America.

The industry is responsible for the employment of over 84,282 people. Experts project that the
industry will grow at a 3.1 percent annual rate between 2011 and 2016. No establishment can
boast of having the lion share of the available market in this industry. The industry is open for fair
competition.

The electric bike hire services line of business has a very low level of industry concentration,
with no major industry players dominating industry revenue. The industry is highly fragmented,
and is made up of a large number of small independent electric bike hire shops conducting
business from only one or two establishments. Over the past five years, industry concentration
has remained low as operators are primarily single-location shops or niche stores that cater to
specific demographics or categories.

In the United States, depending on local laws, many electric bikes (e.g., pedelecs) are legally
classified as bikes rather than mopeds or motorcycles, so they are not subject to the more
stringent laws regarding their certification and operation, unlike the more powerful two-wheelers
which are often classed as electric motorcycles. Electric bikes can also be defined separately and
treated as a specific vehicle type in many areas of legal jurisdiction.

Over and above, the electric bike hire shop line of business is a profitable industry and it is open
for any aspiring entrepreneur to come in and establish his or her business; you can choose to start
on a small scale in a street corner or you can choose to start on a large scale with several outlets
in key cities through the United States of America and Canada with quality electric bikes from
top brands for hire.
2. Executive Summary

Tim Collins® Electric Bike Hire Shop is a registered electric bike hire shop that will be located in
one of the busiest streets in Long Beach – California. We have been able to lease a facility that is
big enough to fit into the design of the kind of standard electric bike hire shop that we intend
launching and the facility is located in a corner piece facility close to one of the largest parks in
Long Beach – California.

At Tim Collins® Electric Bike Hire Shop, our core services will be hiring electric bikes to
customers, but we will also be involved in retailing new bikes (Electric bikes, Mountain bikes,
Road bikes, Hybrid/cross bikes and other bikes), electric bike parts and accessories from different
manufacturers from the United States and abroad and also providing electric bike repair and
maintenance services.

We are aware that there are several large and small electric bike hire shops and even electric bike
dealership and repair shop outlets all around Long Beach – California who are also into electric
bike rental services, which is why we spent time and resources to conduct a thorough feasibility
studies and market survey so as to be well positioned to favorably compete with all our
competitors.

Tim Collins® Electric Bike Hire Shop will ensure that all our customers are given first class
treatment whenever they visit our shop. We have in place, a CRM software that will enable us
manage a one on one relationship with our customers no matter how large the number of our
customers’ base may grow to. We will ensure that we get our customers involved in the selection
of electric bike brands that will be in our shops and also when making some business decisions.

Tim Collins® Electric Bike Hire Shop will at all times demonstrate her commitment to
sustainability, both individually and as a firm, by actively participating in our communities and
integrating sustainable business best practices wherever possible. We will ensure that we hold
ourselves accountable to the highest standards by meeting our customers’ needs precisely and
completely whenever they patronize our services.

Tim Collins® Electric Bike Hire Shop is a family business that is owned by Tim Collins and his
immediate family members. Alfred Gordon has a B.Sc. in Business Administration from
University of Southern Maine – Portland, with over 3 years’ experience in the bike dealership and
repair shops industry, working for some of the leading brand in the United States. Although the
business is launching out with just one outlet in Long Beach – California, but there is a plan to
open other outlets and sell franchise all around major cities in the United States and Canada.

3. Our Products and Services

Tim Collins® Electric Bike Hire Shop is in the electric bike hire shop line of business to service a
wide range of clients and of course to make profits, which is why we will ensure we go all the
way to make available a wide range of electric bikes from top manufacturing brands the United
States and other countries of the world.

Our product and services offerings are listed below;

 Electric bike rental services

 Retailing new bikes (Electric Bikes, Mountain bikes, Road bikes, Hybrid/cross bikes and
other bikes), bike parts and accessories
 Providing electric bikes and general bike repair and maintenance services

4. Our Mission and Vision Statement

 Our vision is to become one of the leading brands in the electric bike hire shop line of
business in California and to establish a one stop electric bike dealership and repair shop
in Long Beach – California and in other key cities in the United States of America and
Canada.
 Our mission is to establish a world – class electric bike rental business and an electric
bike dealership and repair shop business that will make available a wide range of electric
bikes and accessories from top electric bike manufacturing brands at affordable prices to
the residents of Long Beach and other key cities in the United States of America and
Canada.

Business Structure

Our intention of starting an electric bike hire shop business is to build a standard electric bike hire
shop in Long Beach – California and other key cities in the United States of America and Canada.
We will make that we put the right structure in place that will support the kind of growth that we
have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to
work to help us build a prosperous business that will benefit all the stakeholders. As a matter of
fact, profit-sharing arrangement will be made available to all our senior management staff and it
will be based on their performance for a period of ten years or more.

In view of that, we have decided to hire qualified and competent hands to occupy the following
positions;

 Chief Executive Officer (Owner)

 Shop Manager
 Accountants/Cashiers
 Sales Agents/Customer Services Executive
 Bike Repair Technicians
 Cleaners
5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

 Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching,

counseling, and disciplining managers; communicating values, strategies, and objectives;
assigning accountabilities; planning, monitoring, and appraising job results; developing
incentives; developing a climate for offering information and opinions; providing educational
opportunities.
 Accountable for fixing prices and signing business deals
 In charge of providing direction for the business
 Creates, communicates, and implements the organization’s vision, mission, and overall direction –
i.e. leading the development and implementation of the overall organization’s strategy.
 Responsible for signing checks and documents on behalf of the company
 Evaluates the success of the organization

Shop Manager:

 Responsible for overseeing the smooth running of HR and administrative tasks for the
organization
 Upholds office supplies by checking stocks; placing and expediting orders; evaluating new
products
 Ensures operation of equipment by completing preventive maintenance requirements; calling for
repairs.
 Responsible for training, evaluation and assessment of employees
 Answerable for managing the daily activities in the shop
 Ensures that proper records of bikes, bike spare parts and accessories are kept and warehouse does
not run out of products
 Ensures that the store facility is in tip top shape and electric bikes and accessories are properly
arranged and easy to locate
 Controls electric bikes rental and repair services
 Supervises the workforce in the electric bike rental and repair floor

Accountant/Cashier:

 Responsible for preparing financial reports, budgets, and financial statements for the organization
 Provides managements with financial analyses, development budgets, and accounting reports;
analyzes financial feasibility for the most complex proposed projects; conducts market research to
forecast trends and business conditions.
 Responsible for financial forecasting and risks analysis.
 Performs cash management, general ledger accounting, and financial reporting
 Responsible for developing and managing financial systems and policies
 Responsible for administering payrolls
 Ensures compliance with taxation legislation
 Handles all financial transactions for the organization
 Serves as internal auditor for the organization

Sales Agents/Client Service Executive

  Responsible for hiring electric bikes and also retailing new bikes (Electric Bikes, Mountain bikes,
Road bikes, Hybrid/cross bikes and other bikes), bike parts and accessories
 Manages external research and coordinate all the internal sources of information to retain the
organizations’ best customers and attract new ones
 Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
 Develops, executes and evaluates new plans for expanding sales
 Document all customer contact and information
 Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client
with a personalized customer service experience of the highest level
 Through interaction with customers on the phone, uses every opportunity to build client’s interest
in the company’s products and services
 Manages administrative duties assigned by the human resources and admin manager in an
effective and timely manner
 Finds out the customer’s needs, recommend, select and help locate the right merchandise, describe
a product’s features and benefits.
 Makes suggestions and encourage purchase of products
 Provides information about warranties, manufacturing specifications, care and maintenance of
merchandise and delivery options

Bike Repair Technicians:

 Responsible for providing electric bike repair and maintenance services

 Helps in assembling electric for clients after purchase
 Handles any other duty as assigned by the shop manager

6. SWOT Analysis

Our plan of starting with just one electric bike hire outlet is to test run the business for a period of
2 to 5 years to know if we will invest more money, expand the business and then open other
outlets all over key cities in the United States.

We are quite aware that there are several electric bike hire shops and even bike dealership and
repair shops that are also into electric bike rental services all over Long Beach – California and
even in the same location where we intend locating ours, which is why we are following the due
process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to
position our business to maximize our strength, leverage on the opportunities that will be
available to us, mitigate our risks and be welled equipped to confront our threats.

 Strength:

The location of our electric bike hire shop, the business model we will be operating, varieties of
payment options, wide range of electric bikes from different manufacturers and our excellent
customer service culture will definitely count as a strong strength for us. So also, our team of
highly qualify staff members is also a plus for us.
  Weakness:

A major weakness that may count against us is the fact that we are a new electric bike hire shop
outlet in Long Beach – California and we don’t have the financial capacity to compete with
established players in the industry.

 Opportunities:

The fact that we are going to be operating our bike dealership and repair shop in one of the
busiest streets with one of the largest parks in California coupled with the raising number of
people and household switching to cycling as against driving provides us with unlimited
opportunities to rent out our electric bikes. We have been able to conduct thorough feasibility
studies and market survey and we know what our potential clients will be looking for when they
visit our electric bike hire shop outlets.

 Threat:

Just like any other business, one of the major threats that we are likely going to face is economic
downturn. Another threat that may likely confront us is the arrival of a new electric bike hire shop
or even a bike dealership and repair shop outlet that is into the rental of electric bikes in same
location where ours is located. So also, unfavorable government policies may also pose a threat to
businesses such as ours.

7. MARKET ANALYSIS

 Market Trends

The electric bike hire services business depends on strong consumer spending to spur the demand
for industry services. Over the last half a decade, the economy has begun recovering from
recessionary declines with both the Consumer Confidence Index and disposable income
increasing. Going forward, as the economy of the United States continues to recover and
consumers are expected to loosen their discretionary budgets, the industry is anticipated to thrive.

This is why raising disposable income, healthy lifestyle and climate change cum global warming
will support demand for industry products and services. Truly the industry has fared well overall
as cycling has gained popularity for its health and environmental benefits, and as rising
disposable income has encouraged consumer purchases.

Lastly, as part of marketing strategies and increase revenue for the business, electric hire shops
are also engaging in related services such as sale and repair of electric bikes. It is a strategy that
helps them welcome new customers and also reinforce the loyalty of old customers.

8. Our Target Market

Possibly it will be safe to submit that the electric bike hire shops (especially those who are also
into the sales and servicing of bikes) have a wide range of customers; every individual and
corporate organization (cyclist clubs) who own bikes would at one point or the other call for
repair and replacement of parts.

In view of that, we have positioned our electric bike hire shop to service the residents of Long
Beach California and every other location where franchise cum outlets will be located all over
key cities in the United States of America and Canada. We have conducted our market research
and feasibility studies and we have ideas of what our target market would be expecting from us.

We are in business to rent out electric bikes and also to retail a wide range of new electric bikes
and electric bikes spare parts and accessories to the following groups of people and corporate
organizations;

 Households
 Cyclist clubs
 Corporate Executives
 Sportsmen and Sportswomen
 Everyone that resides in our target location

Our competitive advantage

A close study of the electric bike hire business reveals that the market has become much more
intensely competitive over the last decade. As a matter of fact, you have to be highly creative,
customer centric and proactive if you must survive in this industry. We are aware of the stiff
competition and we are prepared to compete favorably with other leading electric bike hire shops
in Long Beach – California.

Our electric bike hire shop is located in a corner piece property on a busy road directly opposite
one of the largest residential estates and close to the largest park in Long Beach – California. We
can boast of having over 50 electric bikes of different sizes and shapes that can be hired at the
same time.

One thing is certain; we will ensure that we have a wide range of new electric bikes and electric
bike spare parts and accessories from leading manufacturers available in our shop at all times. It
will be difficult for customers to visit our shop and not see the type and size of electric bike they
are looking for. One of our business goals is to make Tim Collins® Electric Bike Hire Shop a one
stop electric bike shop.

Lastly, our employees will be well taken care of, and their welfare package will be among the
best within our category in the industry meaning that they will be more than willing to build the
business with us and help deliver our set goals and achieve all our aims and objectives. We will
also give good working conditions and commissions to freelance sales agents that we will recruit
from time to time.

9. SALES AND MARKETING STRATEGY

 Sources of Income
Tim Collins® Electric Bike Hire Shop is in business to rent out electric bikes and also to retail
electric bikes and electric bike spare parts. We are in the electric bike hire shop line of business to
maximize profits and we are going to go all the way out to ensure that we achieve or business
goals and objectives.

In essence, our source of income will be;

 Renting out electric bikes

 Retailing new bikes (Electric bikes, Mountain bikes, Road bikes, Hybrid/cross bikes and
other bikes), selling bike parts and accessories
 Providing electric bike repair and maintenance services

10. Sales Forecast

One thing is certain when it comes to electric bike hire shop businesses, if your shop is well
located and with various types of electric bikes and spare parts from different brands and
centrally positioned, you will always attract customers cum sales and that will sure translate to
increase in revenue for the business.

We are well positioned to take on the available market in Long Beach – California and we are
quite optimistic that we will meet our set target of generating enough profits from the first six
months of operation and grow the business and our clientele base.

We have been able to critically examine the electric bike hire business and we have analyzed our
chances in the industry and we have been able to come up with the following sales forecast. The
sales projections are based on information gathered on the field and some assumptions that are
peculiar to startups in Long Beach – California.

 First Fiscal Year: $150,000

 Second Fiscal Year: $350,000
 Third Fiscal Year: $750,000

N.B: This projection was done based on what is obtainable in the industry and with the
assumption that there won’t be any major economic meltdown and there won’t be any major
competitor renting out same electric bike brands and customer care services as we do within same
location. Please note that the above projection might be lower and at the same time it might be
higher.

 Marketing Strategy and Sales Strategy

Before choosing a location for Tim Collins® Electric Bike Hire Shop we conducted a thorough
market survey and feasibility studies in order for us to be able to penetrate the available market
and become the preferred choice for residents of Long Beach – California. We have detailed
information and data that we were able to utilize to structure our business to attract the number of
customers we want to attract per time.
In summary, Tim Collins® Electric Bike Hire Shop will adopt the following sales and marketing
approach to win customers over;

 Open our electric bike hire shop in a grand style with a party for all
 Introduce our electric bike hire shop by sending introductory letters alongside our
brochure to cyclist clubs, corporate organizations, households and key stake holders in
Long Beach – California
 Ensure that we have a wide range of electric bikes, electric bike spare parts and
accessories from different brands at all times
 Make use of attractive hand bills to create awareness and also to give direction to our
shop
 Position our signage / flexi banners at strategic places around Long Beach – California
 Position our greeters to welcome and direct potential customers
 Create a loyalty plan that will enable us reward our regular customers
 Engage on roadshows within our neighborhood to create awareness for our electric bike
hire shop
 List our business and products on yellow pages ads (local directories)
 Leverage on the internet to promote our business
 Engage in direct marketing and sales
 Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Despite the fact that our electric bike shop is well located, we will still go ahead to intensify
publicity for the business. We are going to explore all available means to promote our electric
bike shop.

Tim Collins® Electric Bike Hire Shop has a long – term plan of opening outlets in various
locations all around California and key cities in the United States and Canada which is why we
will deliberately build our brand to be well accepted in Long Beach – California before venturing
out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers
over but to effectively communicate our brand. Here are the platforms we intend leveraging on to
promote and advertise Tim Collins® Electric Bike Hire Shop;

 Place adverts on community based newspapers, radio and TV stations

 Encourage the use of word of mouth publicity from our loyal customers
 Leverage on the internet and social media platforms like YouTube, Instagram, Facebook,
Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
 Ensure that our we position our banners and billboards in strategic positions all around
Long Beach – California
 Distribute our fliers and handbills in target areas in and around our neighborhood
 Advertise our electric bike hire shop business in our official website and employ
strategies that will help us pull traffic to the site
 Brand all our electric bikes, official cars and trucks and ensure that all our staff members
and management staff wear our branded shirt or cap at regular intervals
12. Our Pricing Strategy

Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to
charge more and we don’t intend to charge less than what our competitors are charging their
clients in Long Beach – California.

Be that as it may, we have put plans in place to offer discount services once in a while and also to
reward our loyal customers especially when they refer clients to us or when they introduce their
friends and family members to our business.

The prices of our services will be same as what is obtainable in the United States’ electric bike
hire services open market.

 Payment Options

The payment policy adopted by Tim Collins® Electric Bike Hire Shop is all inclusive because we
are quite aware that different customers prefer different payment options as it suits them but at
the same time, we will ensure that we abide by the financial rules and regulation of the United
States of America.

Here are the payment options that Tim Collins® Electric Bike Hire Shop will make available to
her clients;

 Payment via bank transfer

 Payment with cash
 Payment via credit cards / Point of Sale Machines
 Payment via online bank transfer
 Payment via check
 Payment via mobile money transfer
 Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make
payment for our services and products without any stress on their part. Our bank account
numbers will be made available on our website and promotional materials to clients who may
want to deposit cash or make online transfer for renting our electric bikes.

13. Startup Expenditure (Budget)

The startup capital for an electric bike hire shop is not so capital-intensive. As a matter of fact,
you can start your electric bike hire shop business with a handful of fairly used electric bikes and
then grow the business as you so desire.

This goes to show that the startup expenditure for such business is not cast in stone. In the bid to
establishing Tim Collins® Electric Bike Hire Shop, these are the key areas where we will spend
our startup capital;
  The total fee for registering the business in the Unites States of America – $750
 Legal expenses for obtaining licenses and permits as well as the accounting services (software,
P.O.S machines and other software) – $3,300
 Marketing promotion expenses for the grand opening of Tim Collins® Electric Bike Hire Shop in
the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total
amount of $3,580
 The cost for hiring Business Consultant – $2,500
 Insurance (general liability, workers’ compensation and property casualty) coverage at a total
premium – $2,400
 Cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600
 Cost for shop remodeling (construction of racks and shelves) – $20,000
 Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
 Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
 The cost for start-up inventory (stocking with a wide range of electric bikes, electric bike spare
parts and accessories from different brands and bike repair tool box) – $250,000
 Cost for store equipment (cash register, security, ventilation, signage) – $13,750
 Cost of purchase and installation of CCTVs: $10,000
 The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs,
Sound System, tables and chairs et al): $4,000.
 The cost of launching a website: $600
 The cost for our opening party: $7,000
 Miscellaneous: $10,000

We would need an estimate of $450,000 to successfully set up our electric bike hire shop in Long
Beach – California.

Generating Startup Capital for Tim Collins® Electric Bike Hire Shop

Tim Collins® Electric Bike Hire Shop is a private registered business that is solely owned and
financed by Tim Collins and his immediate family members. They do not intend to welcome any
external business partner which is why he has decided to restrict the sourcing of the startup
capital to 3 major sources.

These are the areas we intend generating our startup capital;

 Generate part of the startup capital from personal savings

 Source for soft loans from family members and friends
 Apply for loan from my Bank

N.B: We have been able to generate about $150,000 (Personal savings $100,000 and soft loan
from family members $50,000) and we are at the final stages of obtaining a loan facility of
$300,000 from our bank. All the papers and documents have been signed and submitted, the loan
has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers they have, the capacity and
competence of their employees, their investment strategy and business structure. If all of these
factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Tim Collins® Electric Bike Hire Shop is to build a business
that will survive off its own cash flow without the need for injecting finance from external
sources once the business is officially running. We know that one of the ways of gaining approval
and winning customers over is to rent out our electric bikes and also retail our wide range of
quality electric bikes, electric bike spare parts and accessories a little bit cheaper than what is
obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Tim Collins® Electric Bike Hire Shop will make sure that the right foundation, structures and
processes are put in place to ensure that our staff welfare are well taken of. Our company’s
corporate culture is designed to drive our business to greater heights and training and retraining
of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands
we can get in the industry; they will be more committed to help us build the business of our
dreams.