Initial Capital and Costs
You can start a bike shop with $5,000 to $10,000. Prepare for startup costs like rent, inventory, staff, licenses, and equipment. Budget over $10,000.
Sales and Revenue Projections
In your first years, aim to sell three bikes a week. That generates $234,000 in revenue. With a 20% margin, you get $46,800 in profit. As sales increase to eight bikes a week, revenue can reach $624,000. Profit then rises to $124,800.
Expanding Your Market
Consider selling online. Mountain bikes are 25% of sales. Have variety as mountain bikes sell easily.
Profit Margins in Bike Sales
Profit margins range from 20% to 40%. Top brands offer margins around 35%. Smaller shops get 20% as minimum order quantities are difficult to meet.
A bike shop needs significant capital. But with passion, planning and hard work, it can be very profitable.