Business plan for bike rental
In the warm season, both in megalopolises and in small towns, we see a fairly large number of cyclists. On this type of transport, you can move very quickly around the city, you will not be stopped by any traffic jams. In addition to convenience, a bicycle also has a number of other advantages. Surely everyone knows about the health benefits of cycling. Children and adults adore riding this type of transport, so a bike rental business can be an excellent profitable idea of earning money.
How to open a bicycle rental and how much you can earn on it, we will talk in our today's article.
Bicycle rental business plan
Any business idea requires gradual and competent implementation. Therefore, first of all, you should draw up a detailed bike rental business plan. In this document, you should outline such important points as profitability, determine the demand for a service, competition, calculate the payback period and profit from the business.
Advantages and Disadvantages of a Bicycle Rental Business
Each type of activity must be legally registered with the relevant authorities. It is best for novice businessmen to opt for individual entrepreneurship or found a limited liability company. It is much easier to issue an individual entrepreneur than an LLC, so if you plan to open a small bike rental company, then stop at this option. It is better to entrust the collection and execution of documents to an experienced lawyer.
How to open a bike rental?
These vehicles must be purchased to arrange bike rental. The demand for the service, and therefore your profit, will directly depend on the range and condition of bicycles.
At the initial stages, you shouldn't buy a lot of bicycles, 5-6 units will be enough. It is advisable not to be limited to any one model, but to offer your customers a choice. Therefore, you should purchase sports models, mountain bikes, for off-road travel, as well as for children. By reaching as large a part of the audience as possible, you will get more customers and, accordingly, significantly increase your income.
It is quite expensive to buy new vehicles or expensive models. Believe me, professional athletes are not interested in bike rental, your clients are children and people who want to relax, ride a bike in the park. Therefore, purchasing expensive, modern models is a waste of money. Give preference to used models from abroad, they are much better quality than domestic bicycles and are much cheaper at a price.
According to a study by Roland Berger Strategy Consultants, the bike rental market is expected to grow rapidly in the coming years, averaging 20% per year. To properly organize such a point, you will need a detailed bike rental business plan.
Step-by-step opening instructions
How much does it cost to open a bike rental?
Bicycle rental provides bicycles and related products for rent for a period from an hour to several days.
Administrator functions: arranges rental and lends bicycles.
- familiarization with the price list;
- signing a lease agreement;
- leaving a security deposit.
It is important to remember that the requirement to leave documents as collateral is illegal.
After returning the bike, the deposit is returned to the renter, provided that there is no damage to the bike.
City bike rental is a seasonal business with little investment and low turnover. Most people are ready to ride a bike from May to September for entertainment and do not use this means of transportation as a substitute for transportation. In Russian cities there is no infrastructure that would make it possible to comfortably move along the streets. Therefore, you should not expect a large profit from one bike rental point. Nevertheless, it is still possible to earn money like this in the summer season. We will tell you how to start a bike rental business, how much investment is required and where is the best place to open.
How to start a bike rental business
To understand whether it is worth opening a bike rental, you should first assess the potential level of demand for this service. The fact is that Russian cities are ill-suited for cyclists. You can ride relatively comfortably only in recreation parks, on embankments and in tourist areas. It is the visitors to these zones that will be potential rental customers.
Suppose there is a free zone where there are many potential customers. How to start creating a bike rental? First of all, you need to purchase a fleet of bicycles, at least 10-15 units. It is desirable that a point has a choice of several models. This makes it more likely to attract more customers.
Next, you need to select a specific location. If the point is in the open air, it must be agreed with the local authorities. Usually this direction is supervised by the departments of trade and leisure in the municipal administration. It will be necessary to provide a diagram of the installation of a non-stationary object, indicate the number of bicycles and the operating time. The administration will issue a permit that is valid for several years.
Another option is to open up indoors. It is important that it is also located in the area of congestion of potential customers. It is not required to agree on this option with the administration, provided that the bicycles will be stored indoors, that is, they will not occupy a part of the street.
Most of the funds for opening such a business will have to be spent on creating a park. City bike rentals will be in great demand if they have several bike models:
- standard with foot brake;
- mountain / sports;
- chopper bikes; <
- electric bicycles.
Theoretically, you can do without special categories and buy a dozen of the same models, but customers will like it less. Renting a bike is in most cases entertainment, so the monotony of the models will not allow the client to enjoy the choice and experience new sensations from driving an electric bike or tandem.
The average cost of a standard bike is now 25 thousand rubles. You shouldn't buy models for 5-7 thousand rubles. They look unattractive and break quickly. In the end, the cost of repairing them will be greater than the profit. Some models will cost much more (electric, road, bikes). A park of 15 bicycles will require an average of 400 thousand rubles. In some stores, a discount is provided for a bulk order, do not miss the opportunity to save significantly.
Rental offices must be equipped with spare parts and tools for repair / maintenance of bicycles. It will cost much less - an average of 10 thousand rubles. If the point is to be operated outdoors, a rain cover will be needed, as well as a parking area to which bicycles need to be fastened with locks. This is another 30 thousand rubles.
- 1 Features and nuances of a bicycle rental business
- 2 Pros and cons of business
- 3 Who can do this and how much money will be needed to start
- 4 Where to start and how to make money on bike rental
- 5 What documents are needed to open
- 6 How to minimize risks
- 7 How many staff to hire
- 8 A real-world example of how much you can earn on renting bicycles
- 9 How to attract customers
- 10 What else to rent to earn
- 11 Conclusion
Bicycle rental is one of the most popular business models that are gaining popularity. This is a seasonal type of business that you will not do during the cold season, but if properly organized, it will bring substantial profits from spring to autumn.
Another plus of this type of activity is that you do not need special knowledge to organize it and large financial investments. All that is needed is to correctly approach the process and organize it, and then the profit will not have to wait.
Features and nuances of the bike rental business
The main feature of the bike rental business is seasonality. It operates mainly from mid-April to mid-October. If the weather permits, then you can work longer.
During the rest of the year it will not generate income, but you can use the part of the room where bicycles are stored for something else in the winter.
If for some reason this option is not suitable for your region, check out other models for business from scratch, and try them out of season for renting bicycles. This way, you will profit all year round and avoid downtime.
Another feature of this business is that it can be opened in a large or small city with a population of more than 50 thousand people. In less densely populated regions, the demand for rent will be low, therefore, you will receive a small profit. But in small towns and cities, cycling is a popular pastime for groups of friends, family, and couples. Cycling on weekends is especially popular.
Pros and cons of business
As with any other type of business, there are pros and cons.
Renting a bike is profitable because:
- This is an affordable type of business that does not require significant investments. To start, you will need several bicycles (10-15 pieces), a room and 2-3 staff.
- It doesn't take a lot of documents to open it. You don't have to go to dozens of government organizations to get your long-awaited registration.
- Downtime during the season is limited to 5-8 rainy days per month.
- With the right location and a little competition, you can quickly "recapture" all investments and get a good profit.
- If at the same time you are engaged in the repair and sale of bicycles, accessories and the necessary equipment for them, then you can earn extra money on this.
Bicycle rental as a business is a fairly young service provided in our country. Therefore, there is a lack of a large number of competitors in the rental business. Before starting a bike rental, make a detailed business plan. Pay special attention to the analysis of possible risks. On our portal you can quickly and easily download a free bike rental business plan.
How to start planning your business
- project summary;
- overview of the bike rental market;
- goods and services that will be provided by rental;
- employees who will carry out work and communicate with customers;
- a portrait of the consumer;
- legal aspects;
- advertising for bike rental;
- organizational plan;
- financial calculations (equipment costs, salaries of employees, rent of premises, etc.)
- possible risks during the implementation and development of the business.
As the project develops, some points in the plan may be modified, that is, supplemented or removed altogether.
Our sample project indicates the cost required to open a bike rental - 500,000 rubles. In addition to this information, information is provided on the payback period - 4 months, as well as on the organizational and legal form - an individual entrepreneur.
Bicycle rental services, products and employees
In summer, spring and autumn, you can rent, except bicycles:
- roller skates;
- protective equipment (helmets, elbow pads, knee pads , gloves, etc.).
In winter, you can rent: skis, sledges, skates, snowboards, protective equipment.
The sample business plan provides information about the personnel that will be required at the initial stage: 3 instructors, an accountant, a mechanic, and a leader who will act as an administrator and manager.
Payroll and insurance premiums can be found in the free sample.
Organizational plan and possible risks
The organizational plan of the example presented on our portal also contains information about the amount of inventory and goods that will be required to operate the bike rental.