RHODNY’S BIKE SHOP

Located at Purok 3 Bonfal Proper Bayombong Nueva Vizcaya

SUBMITTED BY: RHODNY EDISON E. AGGASID

SUBMITTED TO: ENGR. JUN ROSARIO
 TABLE OF CONTENTS

Section Description Page No.

I Executive Summary 3
II Business/Industry Overview 4
III Market Analysis and Competition 4
IV Sales and Marketing Plan 6
A. Product or Service Offerings 6
B. Pricing Strategy 7
C. Sales and Distribution 8
D. Advertising and Promotion 8
E. Competitive Analysis 9

V Ownership and Management Plan 10

A. Ownership Structure 10
B. Management Plan and Team 10
C. External Resources and Services 11
D. Human Resources 11

VI Operating Plan 12
A. Production 12
B. Facilities 13
C. Staffing 13
D. Equipment 14
E. Supplies 15
 I. Executive Summary

At Rhodny's Bike Shop, our mission is to inspire and empower individuals to embrace a

healthier and more sustainable lifestyle through cycling. We envision becoming a community hub

that not only offers high-quality bicycles, accessories, and services but also fosters a culture of

passion for cycling, promoting both physical well-being and environmental consciousness.

Rhodny's Bike Shop, founded by Rhodny Waters, is a retail and service-oriented business

focused on providing a wide range of bicycles, accessories, and gear. With a commitment to

exceptional customer service and community engagement, we aim to be the go-to destination for

cyclists of all levels.

Our main product offerings include a diverse selection of bicycles, from commuter bikes to

high-performance models, along with a comprehensive range of accessories and gear. Additionally,

we provide expert services such as custom bike fittings, maintenance workshops, and personalized

customer support.

We will cater to a diverse customer base, including avid cyclists, fitness enthusiasts, commuters,

and families seeking quality bikes and accessories. Our business model focuses on inclusivity,

welcoming both seasoned riders and those new to the cycling community.

Rhodny's Bike Shop distinguishes itself through a combination of factors: expertise and service.

Certified technicians and staff offer personalized services like custom bike fittings. Community

Engagement: hosting events, workshops, and partnering with local groups to build a thriving

cycling community. Sustainable Focus: Emphasizing eco-friendly practices, including sustainable

product sourcing and environmental awareness.

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 To launch and sustain initial operations, Rhodny's Bike Shop seeks a start-up financing package

of ₱ 1,500,000.00. These funds will be allocated to securing a prime storefront location, acquiring

inventory, implementing marketing strategies, and ensuring a robust online presence. The capital

will also cover staffing, equipment, and initial marketing campaigns to establish brand visibility.

II. Business Overview

Rhodny's Bike Shop is a community-focused, customer-centric establishment in the rapidly

growing bicycle retail industry. The industry has seen significant growth due to increased

awareness of health and environmental benefits, recreational cycling, and alternative

transportation methods. The global bicycle market has seen a steady increase in sales, with a

particular emphasis on electric bikes and high-performance models. Rhodny's Bike Shop aims to

differentiate itself through personalized service, community engagement, and a carefully curated

product selection. The shop targets urban commuters, cycling enthusiasts, and families within a

specific radius, catering to the increasing demand for electric bikes. The shop offers a range of

bicycles suitable for all ages and skill levels, and stands out by offering personalized bike fittings,

maintenance workshops, and community events. Rhodny's Bike Shop is committed to providing

high-quality products and a comprehensive customer experience, and leverages its relationships

with suppliers to offer competitive pricing.

III. Market Analysis and Competition

Rhodny's Bike Shop caters to the growing need for sustainable transportation, recreational

activities, and healthy lifestyles. Bicycles serve as an eco-friendly alternative to traditional

transportation, providing health benefits and reducing carbon footprints. Additionally, the

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increasing interest in cycling for fitness and leisure activities has created a demand for diverse,

high-quality bikes and related accessories.

The overall market size for bicycles and related products in our target area is estimated to be ₱

500,000 - ₱ 1,000,000.00 annually. This calculation is based on factors such as population density,

commuting patterns, and the prevalence of recreational activities in the region. As cycling gains

popularity as a mode of transportation and recreation, we anticipate a steady increase in the

market size over the next few years.

Cycling is a lifestyle choice that often leads to repeat purchases as enthusiasts upgrade their

bikes, replace components, or seek accessories to enhance their experience. Rhodny's Bike Shop

aims to build lasting relationships through exceptional customer service, loyalty programs, and

targeted marketing initiatives.

Economic and demographic changes can influence the market dynamics. For instance,

economic downturns may lead to a temporary decline in high-end bike sales, while an increase in

urbanization may boost the demand for commuter and electric bikes. Rhodny's Bike Shop is poised

to adapt to these changes by maintaining a diversified product portfolio and staying attuned to

evolving consumer preferences.

In comparison to existing competitors, Rhodny's Bike Shop aims to capture a significant market

share by focusing on personalized service, community engagement, and competitive pricing. Our

sales projections for the first year estimate 30% of the local market share, with a subsequent

increase to 50% over the next 5-10 years. While competitors like 3 Kings Bike Shop, Sukisok Bike

Shop, and Life Cycle Bike Shop have established their presence, Rhodny's Bike Shop differentiates

itself through a curated product selection, community-building initiatives, and an emphasis on

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customer relationships. We anticipate that our unique approach will enable us to effectively

compete and thrive in the local market.

IV. Sales and Marketing Plan

Product or Service Offerings

Rhodny's Bike Shop offers a wide range of bicycles, including commuter, mountain, road,

and electric bikes, with reputable brands. The shop provides personalized guidance to match riders

with the most suitable model, promoting a positive cycling experience.

Custom bike fittings are provided by trained technicians using advanced tools to optimize

comfort, efficiency, and injury prevention. This personalized service enhances riding comfort,

reduces fatigue, and mitigates injury risk.

Rhodny's Bike Shop conducts regular maintenance workshops to educate customers on

essential bike care skills, saving on repair costs and fostering a sense of independence and

community. The shop also offers a comprehensive selection of accessories and gear, including

helmets, lights, locks, and apparel. The shop organizes community events and rides to build a

vibrant cycling community, providing networking opportunities, skill development, and shared

passion for cycling. The shop's commitment to community-building through events and rides

fosters a sense of belonging among customers.

Rhodny's Bike Shop also offers trade-in and upgrade programs, promoting sustainability

and affordability. This initiative allows customers to easily upgrade to the latest models and access

budget-friendly options.

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 Rhodny's Bike Shop stands out for its personalized service, community engagement,

education, and curated selection.

Pricing Strategy

Rhodny's Bike Shop will use a cost-plus pricing strategy, which involves calculating the cost

of acquiring or producing a product and adding a markup percentage to determine the selling price.

This strategy ensures that the business covers its costs, including product procurement, operating

expenses, and overhead, while providing a reasonable profit margin. The company will also

regularly assess and adjust prices to remain competitive within the local market, monitoring the

pricing strategies of key competitors and adjusting prices to align with or slightly undercut the

market average.

Value-based pricing will be implemented for premium products or unique services, such as

custom bike fittings, to provide added value to customers. Bundle pricing will be introduced to

encourage multiple purchases and increase transaction value. Breakeven analysis will guide pricing

decisions, ensuring that the pricing strategy aligns with financial goals and helps set realistic sales

targets.

Retail pricing strategies to increase profitability include dynamic pricing, psychological pricing,

and discount strategies. By combining cost-plus pricing with competitive and value-based elements,

Rhodny's Bike Shop aims to strike a balance that attracts customers, covers costs, and generates a

sustainable profit.

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Sales and Distribution

Rhodny's Bike Shop plans to operate primarily through retail sales, with a focus on

providing an immersive and informative in-store experience. The shop will also establish an e-

commerce platform to reach a broader audience, showcasing its product range and partnering with

courier services for secure delivery. The shop may explore strategic partnerships with local bike

shops or sporting goods stores for wholesale distribution.

Payment methods will be available in-store and online, with secure payment options for

both. Wholesale transactions will be negotiated with partners. Rhodny's Bike Shop may also offer

financing options, such as installment payment plans and promotional financing.

After-sales services will include assembly and maintenance for bicycle purchases, warranty

coverage, and ongoing customer support. Marketing and promotion will involve regular

promotional events, discounts, and loyalty programs, as well as digital marketing channels like

social media, email campaigns, and online advertising. This strategy aims to attract and retain

customers while ensuring the safety and convenience of their purchases.

Advertising and Promotion

Rhodny's Bike Shop plans to utilize digital marketing strategies, including a user-friendly

website, social media platforms like Instagram, Facebook, and Twitter, email marketing, and

traditional media like local newspapers and magazines. They will also use community bulletin

boards to post flyers and advertisements strategically. Sales promotions will include free

workshops, demonstrations, and loyalty programs. Marketing materials will include professional

business cards, flyers, brochures, and promotional merchandise. Product launches and tradeshows

will be organized, with PPC advertising and paid social media ads. Community engagement will be

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achieved through sponsorships and collaborations with local businesses. The budget for advertising

and promotion is set at ₱ 1,000.00 per month for digital marketing and social media promotions, ₱

1,000.00 per month for print advertisements, and ₱ 5,000.00 per event or sponsorship opportunity.

The goal is to increase visibility on search engines and relevant websites, strengthen community

ties, and enhance brand visibility.

Competitive Analysis

Rhodny's Bike Shop is a community-oriented establishment that offers high-quality

products and a comprehensive cycling experience. Its strengths include fostering a strong sense of

community through events, workshops, and group rides, emphasizing personalized service, and

offering a carefully curated product selection. However, it faces challenges in brand recognition and

a smaller inventory compared to its competitors. Opportunities for growth include targeting niche

markets and leveraging e-commerce to reach a wider audience.

Threats include economic downturns impacting consumer spending on non-essential items

and intense competition from well-established local and online competitors. Rhodny's Bike Shop

can expand its online presence and target niche markets based on specific customer needs and

preferences. Future strategies include brand building, e-commerce expansion, and strategic

partnerships with local businesses or organizations.

In summary, Rhodny's Bike Shop has strengths in community engagement, personalized

service, and a curated product selection, but faces challenges in brand recognition and inventory

management.

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 V. Ownership and Management Plan

Ownership Structure

Rhodny's Bike Shop is a Limited Liability Company (LLC), offering a balance between flexibility

and liability protection. The company's ownership percentages are distributed among founding

members, with Rhodny Waters holding 60%, and managers having 20% and 20%, respectively.

This legal structure allows for operational flexibility and limited personal liability for the company's

debts and obligations.

Management Plan and Team

Rhodny's Bike Shop is a business that operates under the leadership of its founder and CEO,

Rhodny Waters. The team includes an Operations Manager, Sales and Customer Service Manager,

Marketing and Community Engagement Coordinator, and Bicycle Technician and Service Manager.

The sales team includes Sales Associates, Cashier/Checkout Personnel, Service and Maintenance

Team, and Workshop Coordinator. The administrative and support staff includes Administrative

Assistants and Store Support Staff.

The management strategy includes regular team meetings to discuss goals, address

concerns, and foster open communication. Investing in ongoing training programs enhances the

team's skills, especially in areas like customer service, product knowledge, and technical expertise.

Employee recognition and incentives motivate the team, and a customer feedback loop is

established to collect and analyze feedback. Cross-training among team members enhances

versatility and ensures multiple team members can handle various responsibilities.

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 The team structure includes a sales team, a service and maintenance team, and administrative

and support staff. The goal is to ensure a smooth and efficient operation, fostering brand visibility,

customer engagement, and a positive work environment.

External Resources and Services

Rhodny's Bike Shop plans to utilize external resources and services to ensure its smooth

operation and growth. These include establishing strong relationships with bicycle manufacturers,

distributors, and suppliers, engaging professional advisors to ensure compliance with local

regulations, and partnering with IT professionals to maintain and secure the business website.

Marketing and advertising agencies will be employed to design and execute promotional

campaigns, while logistics and shipping partners will manage product transportation and

fulfillment. Training and development providers will provide specialized workshops for the team,

while community and event collaborators will collaborate with local organizations. Financial

institutions will be established for banking services and financial advice. CRM software will be

implemented to manage customer interactions and personalize marketing strategies. Legal and

regulatory compliance services will be engaged to stay updated on regulations.

Human Resources

Rhodny's Bike Shop has a hierarchical business organization with a CEO, Co-Owner/Manager,

and various department managers. The CEO is responsible for overall leadership, strategic

planning, and decision-making, with competitive salaries and potential for profit-sharing or

bonuses. The sales team includes sales associates and cashier/checkout personnel, with hourly or

salary-based salaries. The service and maintenance team includes bicycle technicians and

workshop coordinators, with hourly or salary-based salaries. Administrative and support staff

include administrative assistants and store support staff. The estimated salary and benefit costs for

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the CEO, Co-Owner/Manager, department managers, sales team, service and maintenance team,

and administrative and support staff are ₱ 150,000.00 to ₱ 300,000.00. Benefits include health

insurance, potential commission or bonuses, and potential for health insurance for full-time

employees.

VI. Operating Plan

Production

Rhodny's Bike Shop focuses on retail and service sectors, selling bicycles, accessories, and

gear, as well as providing services like custom bike fittings and maintenance workshops. The

production process involves managing inventory, assembling bikes, and delivering services. Key

aspects include establishing partnerships with manufacturers and distributors, using an inventory

management system, and employing skilled bicycle technicians for in-house assembly. They also

offer personalized services, such as custom bike fittings, and maintain a well-equipped workshop.

The production and service delivery process is affected by factors such as supplier

relationships, seasonal variations, and customer needs. Strong relationships with suppliers, regular

communication, and a well-organized fitting process contribute to timely deliveries. To handle

potential problems, Rhodny's Bike Shop maintains a buffer stock of popular items, implements

priority processing for urgent requests, diversifies suppliers, and develops contingency plans for

unforeseen disruptions. Regular maintenance and upgrades of workshop equipment and cross-

train technicians ensure flexibility in the assembly and service process.

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Facilities

Rhodny's Bike Shop plans to be located in a vibrant commercial area near popular cycling

routes, parks, or community spaces. The initial store size will be approximately 100 sq.m and will

allow for future expansion. The business may consider leasing commercial space initially, but future

plans may involve assessing property ownership. The building specifications include high ceilings,

adequate windows, and a dedicated workshop space for bike assembly, repairs, and maintenance.

Equipment includes quality tools, a modern POS system, and specialized tools for bike fittings,

repairs, and maintenance. Maintenance and utilities costs include regular budgeting for repairs,

painting, and upkeep. Overhead costs include insurance, security, property taxes, and licenses.

Accessibility and amenities include parking, bike racks, restrooms, and a lounge area.

Environmental considerations include implementing eco-friendly practices, landscaping, and

contingency plans for emergencies. The business will also consider partnerships with eco-conscious

suppliers and brands.

Staffing

Rhodny's Bike Shop has a leadership team consisting of the founder and CEO, and

department managers. The CEO leads the strategic leadership, business development, and decision-

making, while the co-owner/manager assists in managing day-to-day operations. The operations

manager oversees day-to-day operations, inventory management, and logistical aspects of the

business. The sales and customer service manager leads the sales team, develops sales strategies,

and ensures excellent customer service. The marketing and community engagement coordinator

executes marketing strategies, manages social media, and organizes community events. The bike

technician and service manager manages the bike service and repair department, oversees

maintenance workshops, and coordinates with suppliers. The sales team includes sales associates,

cashiers, service and maintenance technicians, workshop coordinators, administrative assistants,

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and store support staff. Experience in retail or customer service is preferred.

Equipment

Item Quanity Type/model Purpose/use Cost (per Total

unit) cost
Storefront Equipment
Security Cameras 4 Hikvision Turbo HD Surveillance ₱ 7,800 ₱ 31,200
CCTV and Security
Alarm System 1 Advanced Security Store Security ₱ 5,000 ₱ 5,000
System
Cash Registers/POS 1 POS SYSTEM Sales ₱ 19,000 ₱ 19,000
Systems Transactions
Shelving & Display 1 Custom-designed for Product ₱ 5,000 ₱ 5,000
Units Bikes and Gear Dsiplay
Comfortable Seating 2 Ergonomic Chairs Customer ₱ 7,000 ₱ 14,000
for Customers and Benches Waiting Area
Workshop Equipment
Bike Assembly Tools 1 Professional Toolset Bike Assembly ₱ 10,000 ₱ 10,000
Bike Repair and 1 Specialized Tools Repairs & ₱ 5,000 ₱ 5,000
Maintenance Tools Maintenance
Workbenches 2 Sturdy Workbenches Workshop ₱ 1,000 ₱ 2,000
Stations
Storage Cabinets 2 Heavy-duty Cabinets Tools and ₱ 5,000 ₱ 5,000
Parts Storage
Office Equipment
Computers/Laptops 1 High-performance Administrative ₱ 60, 000 ₱ 60, 000
Models Task
Printers/Scanners 1 Multi-function Documenting ₱ 6,000 ₱ 6,000
Devices Handling
Office Furniture 1 Desk, Chairs, Filling Administrative ₱ 5,000 ₱ 5,000
cabinets Workspaces
Bicycle Fitting Equipment
Fitting Stations 1 Adjustable Fitting Custom Bike ₱ 8, 000 ₱ 8,000
Platforms Fittings
Computerized Fitting 1 Fit kit Fitting Data Analysis ₱ 5,000 ₱ 5,000
Software Software and Reporting
Miscellaneous
First Aid Kit 1 Comprehensive First Emergency ₱ 2,500 ₱ 2,500
Aid Kit Preparedness
TOTAL ESTIMATED COST ₱ 182,700

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Supplies

Rhodny's Bike Shop focuses on sourcing and managing inventory rather than raw materials,

selling bicycles, accessories, and gear, and providing services like custom bike fittings and

maintenance workshops. The business has a comprehensive supplies plan, including a bicycle

inventory, accessories and gear, service and maintenance supplies, tools and equipment, fitting

platforms and software, marketing and promotional materials, inventory management, supplier

relationships, safety stock, collaboration with suppliers, environmental considerations, contingency

plans, quality control, and major suppliers.

Bicycles are sourced from reputable manufacturers and distributors, while accessories and

gear are sourced from multiple suppliers. Service and maintenance supplies include replacement

parts, tools and equipment, fitting platforms and software, and marketing and promotional

materials. A modern POS system is implemented for real-time tracking and inventory management,

and regular inventory audits are conducted to track inventory levels and prevent stockouts.

Supplier relationships are nurtured to ensure reliable and timely deliveries, and safety stock is

maintained to prevent disruptions.

Environmental considerations include sourcing sustainable products, developing

contingency plans for supply chain disruptions, and implementing quality control measures. Major

suppliers are established for primary supply of bikes, while local suppliers provide niche or

specialty products.

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