|   Possibility of starting a shop? | Skipper
Aug 14, 2003 1:20 PM | | So I've had this crazy idea for a little while now. I live in a mid-western state isn't exactly known for its tremendous riding. However, there's a small resort town (1500-2000 population with over 1 million visitors a year) in another part of the state that has the best MTB and road riding around. We're not talking Moab or anything, but for around here it's very nice (lots of hills and trails with a ton of winding, hilly roads). Anyway my wife and I both love the area and have often contemplated relocating there (have even looked at buying another business in the town). I've often thought that a bike shop that specialized in quality MTB & road bikes along with rental might not be a bad idea. There are several larger towns 50K to 60K people and a major university within 20 miles and a several metropolitan (up to 1 million people) within 3 hours of this town. What are everyone's thoughts on how a bike shop might do in this area? Anyone have a shop and could give me some ideas of things to look for in potential markets? What kind of $ could you expect to make if a bike shop does fairly well (I know I'm not going to get rich, but I've got to keep putting food on the table). Any thoughts or ideas are greatly appreciated. Feel free to email me with more detailed info (or if I could email you to pick your brains). Thanks! |
| re: Possibility of starting a shop? | Blacksheep
Aug 14, 2003 1:27 PM | | Buy the "Cost of Doing Business Survey" from www.nbda.com and visit www.bicycleretailer.com. Undercapitalization is a big danger for a bike shop, so be ready to spend 50k+ to get going. Very few bike shop owners ever make enough to consider it much of a living, most can put food on the table though. As with any business it helps to have years of experience in the industry--you wouldn't start a software business just because you use Windows every day! |
| re: Possibility of starting a shop? | SS ThunderBug
Aug 14, 2003 1:54 PM | | the old saying is "if you want to make a million in the bike business, start with three million and quit when you get down to your goal" |
| Yeah, sounds solid... | pimpbot
Aug 14, 2003 2:07 PM | | ... but don't expect to get rich running a bike shop. Do it for the love of bikes. The other poster is right. Flushing your $50k down the toilet is a more efficient way to loose dough.
If you got the 'only game in town' groove going for you, you should do well, at least in summer. You probably won't have any trafic in winter, exccept for the local hardcore guys, and even then it won't be much.
The other thing you gotta ask yourself, 'if this is such a good idea, why isn't anybody else doing it?' Maybe some body did, and lost their shirt and have been long gone before you came along.
I don't wanna stomp all over your dream, I just want you to find the fatal flaw in it, and decided if you can work around it. |
| Dual-purpose store? (more) | World B. Free
Aug 14, 2003 2:27 PM | | A ski/snowboard chain in the Bay Area also carries patio/outdoor furniture and seems to do pretty well. If it snows in your area, maybe you can cater to snow sports enthusiasts during that time of year.
Also, it seems that most shops do well catering to riders in the beginning/intermediate phase of riding. Starting from scratch, they need more accessories, or think they do! Weekly group rides are a great way to build a loyal clientele and share the love..
Good luck |
| here is a formula... | rideit..
Aug 14, 2003 4:11 PM | | generally you are going to have to gross $500,000 to make $30.000 annually, and gross 1 million in order to take home $50.000. And that is optimistic.Bike shops operate on a 2-8% profit margin, on average. If you really love bikes, be careful, you may not after owning a shop. |
| On a more positive note... | rideit...
Aug 14, 2003 8:31 PM | | Owning a shop is a labor of love, and I do have to say that it pffers a wonderful lifestyle, and a profession that you can be proud of. I like to tell people that bicycles are one of the few man made devices on the planet that are inherently good. (well, yarn doesn't have many issues, either...)You can have a flexible schedule, an instant peer/social group, access to gear and cool folks, you can promote races, rides, etc.The reaon for my earlier caveot is simply to prepare you, there is some serious stress involved if there is no angel or sugar daddy/momma involved. I highly encourage your enterprise, we need more mom and pops, but they gotta be strong! Good luck, R |
| Hey Skipper, I'm in the process of doing the same thing... | jcw
Aug 14, 2003 5:49 PM | | and first I gotta say, hope it's not the same town. The shop I'm currently working in has a profit margin of 4%-5%, and it's a well run shop in an extremely outdoor oriented college town. I agree with the poster that recommended diversifying into other areas. Even if the weather permits, people tend to stop biking in the winter months, so having something to fall back on can be a shop saver. I feel lucky in that I have some money saved, and due to the extremely low cost of living in the town I'm locating in, will be able to get by on very little. I also have a significant other that is already set up with a decent job in the town. I think an outside source of income while setting up and getting the shop off the ground will be very important. Initally all I'll need to do is pay the bills. I'm looking at an April start up date. I'd be happy to correspond via e-mail if your interested in sharing thoughts/ideas/experiences. My e-mail is .
Cheers,
John Wood |
| Good luck JW... nm | Ratt
Aug 14, 2003 9:52 PM | | |
| Thanks and here's a little more info... | Skipper
Aug 15, 2003 5:20 AM | | Thanks to all for the ideas, encouragement and real life experiences. Here's a little more insight...The money to get started shouldn't be a huge issue. My wife and I have done a fairly good job of stashing cash away. I don't have a ton of bike shop experience (worked in one for a while in college) but have basically been obsessed (as my wife puts it) with bikes since I was 5. I've thought long and hard about what I could do to supplement in the slow winter months and have a few decent ideas. To my knowledge there has never been a shop in this town (I've been going there for 15+ years and never a shop). I would definitely be looking at setting up several group rides with the idea of starting a cycling club for the area as there are many many well to do younger retirees in the area that are quite active that I think would participate. Thanks again for all of the input and please feel free to keep it coming! |
| prioritize | Hollywood
Aug 15, 2003 10:06 PM | | don't get caught up in all the cool perks like fun group rides and things that are "missing" from the town - although that would help stimulate biz I hope. Your job is not to blow the cash you've worked hard to save up. Sell, rent, lease anything and everything you can, year round. Assuming your wrench skills are up to par, read up on sales. That may sound like it's easy, but I love bikes too and I sucked as a sales guy in a LBS.
Stay current on bikes & parts - nothing makes me walk out of a shop quicker than when I think I know more about what's out than they do. Go to Interbike in Vegas this year and start networking - make up a company name now and register!
good luck to you-
Jeff |
| Thanks Ratt, I'll keep ya'll posted (nm). | jcw
Aug 15, 2003 8:35 AM | | nm |
| Advertise! | Drewdane
Aug 15, 2003 6:16 AM | | Not to belabor the obvious, but it seems to me a strong investment in advertising focusing on service and rentals and targeting folks in those larger towns and in the university community, would be beneficial.
If you plan to sponsor/lead local rides (which would also be a great way to establish your business in the community), see if you can coordinate with the local Chamber of Commerce and/or Tourism Office (if such exists) to publicize same.
Good luck!
Drew |
| Some of what I've heard and seen | uber-stupid
Aug 15, 2003 10:48 AM | | -There's a little shop in W Yellowstone, MT, that I stopped at on an XC trip. It's at the Western gate of yellowstone nat'l park. They do Bicycles, (sales of random bikes, a few new, I think, mostly used... and mostly the bike work is maintenance.) kites, and video rental. The bike thing seems like a side deal, though they advertise as a bike shop. The kites are probably for tourists to fly in the park, and the video rental covers winter business.
-I saw a small shop in Hill City (pop 650), in the black hills of S. Dakota. They're close to mt rushmore in a relative way, and also to the Crazy Horse memorial that's being built .
By "relative," I mean that the black hills can be vicious to ride through, so a few miles can last forever. It took me 3 days to get 60 miles in the middle of a trip where I was making 90 miles a day.
The name of the shop is Rushmore Bikes. I THINK they do rentals... I don't remember though. But that guy had the same idea you have. It's an itty-bitty shop, catering mostly to tourists, though he does some new-bike sales, too. It's close to Rapid City, Spearfish, and Sturgis (though I think the sturgis folks prefer something a little more motorized) and the guy there was really cool. I don't know the phone number of the shop, but I'm sure you can find it easily enough online. Hill City, Rushmore bikes. Try talking to the shop owner, and see if he can help. He's more or less done the closest I've seen to what you're talking about, so I'd think he'd have the most relevant advice. Not that the rest of the folks here aren't right, but since his isn't a regular shop, but a small one on the outskirts, doing more or less what you're talking about, he might have some more specific advice on weathering dry spells in a tourist economy, getting the tourist business, etc.
When (if) you call him, tell him thanks from an anonymous bicycle tourist... and be sure to post back in here how it goes. (I'm curious) |
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