Investment and Costs
The investment package starts at P298K. It is used to set up the branch. Its amount and content varies according to the type of branch and inventory level.
When starting, consider rent, inventory, staff, licenses and permits. These can cost over $10,000. Supplies and equipment are also expensive. Carefully budget inventory.
Business Plan and Revenue Potential
If you want to start or expand a bicycle shop, you need a business plan. Explain the status of your shop. For example, are you a startup, expanding, or operating a chain? Next, overview each plan section.
The retail profit margin for bike sales is 36%. This is higher than for clothing and accessories. How much you charge depends on your cost to acquire them. In a shop, entry-level road bikes are $1,500. Your margin after costs should be 20%. In year one or two, sell three bikes per week. This brings in $234,000 revenue. With a 20% margin, profit is $46,800. As sales climb to eight bikes per week and $624,000 revenue, profit rises to $124,800.
Online Sales and Market Share
Many shop online too. Mountain bikes are 25% of sales. Have a variety as mountain bikes sell easily.
So a startup bike shop needs significant capital. But with hard work, it can be profitable. Passion plus planning makes anything possible.