How to Build a Bike Brand?
A bike shop needs significant capital. But with passion, planning and hard work it can thrive. Budget over $10,000.
Profit Margins:
- Range from 20% to 40%.
- Top brands offer 35% margins.
- Smaller shops get 20%.
Costs Include:
- Inventory
- Staff
- Licenses
- Permits
- Supplies
- Equipment
Carefully plan inventory quantities. Start with at least $5,000. Prepare for about $10,000 for a bigger shop with more models and parts. In early years, sell three bikes a week for $234,000 in revenue. At 20% margin, profit is $46,800. As sales increase to eight bikes a week, revenue can reach $624,000. Profit then hits $124,800. Consider selling online. Mountain bikes are 25% of online sales.
How to Start a Bike Company in India?
First build a prototype in your garage. Get it road tested and certified by an engineer as roadworthy. Then get its patent registered.
Where to Advertise Your Bike?
Sites like Gumtree, Facebook Marketplace and cycling classifieds offer cheap advertising to wide audiences.