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Free VC Directory

With any B-Plan Purchase
425 Page Capital Directory
Through Feb. 28


Custom Business Plan
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2017
Free Bike Shop Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!

Please note that the financials in this complete free business plan are completely fictitious and may not match the text of the business plan below. This free business plan demonstration purposes only. If you are interested in purchasing the completed editable MS Word and Excel documents for this business plan, please click the button below! Also, the text of the business plan is formatted with a fully automated table of contents.



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It should be noted that there is no special software required to use these templates. All business plans come in Microsoft Word and Microsoft Excel format. Each business plan features:

  • Excecutive Summary
  • Company and Financing Summary
  • Products and Services Overview
  • Strategic Analysis with current research!
  • Marketing Plan
  • Personnel Plan
  • 3 Year Advanced Financial Plan
  • Expanded Financial Plan with Monthly Financials
  • FREE 30 Page Sample Private Placement Memorandum
  • FREE PowerPoint Presentation for Banks, Investors, or Grant Companies!

1.0 Executive Summary

The purpose of this business plan is to raise $100,000 for the development of a bicycle retailer while showcasing the expected financials and operations over the next three years. Bike Shop, Inc. (“the Company”) is a New York based corporation that will provide sales of bicycles and bicycle repair services to customers in its targeted market. The Company was founded in 2009 by John Doe.

1.1 Products and Services

The primary revenue center for the Bike Shop will come from the sale of bicycles to the general public. Mr. Doe has already begun sourcing a number of wholesalers that will provide the business with its expansive inventory. Management expects that each dollar of bicycle sales will generate contribution margins of approximately 60%. The Company will also generate secondary streams of revenue from the sale of bicycle repair services, which will be provided on site. This is an important revenue stream for the business as the margins generated from this segment of the business are very high. Additionally, the business will be able to generate addition sales of bicycle parts via this segment of the business. The third section of the business plan will further describe the services offered by the Bike Shop.

1.2 The Financing

Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.

1.3 Mission Statement

The Bike Shop’s missions is to become the recognized local leader for sale of bicycles and bicycle services while concurrently serving as a community meeting place for biking enthusiasts.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the retail management industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.

1.5 Sales Forecasts

Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.

1.6 Expansion Plan

The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals and biking enthusiasts within the target market.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Bike Shop, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Bike Shop requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:

2.3 Investor Equity

Mr. Doe is not seeking an investment from a third party at this time.

2.4 Management Equity

John Doe owns 100% of the Bike Shop, Inc.

2.5 Exit Strategy

If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Bike Shop. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.

3.0 Products and Services

Below is a description of the bicycle sales and related services offered by the Bike Shop.

3.1 Sales of Bicycles

Mr. Doe intends on carry a large and diverse line of mountain bicycles, sport bikes, BMX style bicycles, and racing bikes for sale to the general public. The Company will also regional distributors and wholesalers that will provide the business with brand name inventories. Manufacturers that the Company will carry include, but are not limited to: Craft, TYR, Park, Dimension, Surly, BMX, Haro, Maso, and others.

3.2 Sales of Bicycle Services

In addition to the sales of bicycles, the Company will provide onsite repair services. At least two of the employees hired by the business will be required to have specific training/experience with fixing bicycles. As stated in the executive summary, this is an important revenue source for the business as it will provide the Company with high margin income. Additionally, part sales will be made to customers through this segment of the business.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the bicycle retailing industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2010, at which point the economy will begin a prolonged recovery period. In turn, customers may have less discretionary income, which may translate into lower sales for the business as it begins its business operations.

4.2 Industry Analysis

The retail sale of bicycles and bicycle repair services generates approximately $6 billion per year of revenue. In 2007, approximately 18.2 million bicycles were sold among 6,000 retailers throughout the United States. The industry employs approximately 30,000 people, and payrolls in each of the last five years have exceeded $1 billion. This industry is expected to remain strong despite the current economic conditions. As the prices of oil have increased, people have sought ways to decrease their monthly transportation expenses. One of the most cost effective ways of doing this is to simply purchase a bicycle for short distance traveling. The industry has seen strong growth in the last two years with the increase in oil prices. Additionally, more people are becoming conscious of the issues facing the environment, and have also begun to use bicycles for short term traveling rather than automobiles.

4.3 Customer Profile

In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.

4.4 Competitive Analysis

This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.

5.0 Marketing Plan

The Bike Shop intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Bike Shop.

5.1 Marketing Objectives

  • • Establish the Bike Shop as a community forum for biking enthusiasts within the target market.

  • • Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.

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5.2 Marketing Strategies

Mr. Doe intends on using a number of marketing strategies that will allow the Bike Shop to easily target men and women within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. The Bike Shop will also use an internet based strategy. This is very important as many people seeking local retailers, such as bicycle shops, now the Internet to conduct their preliminary searches. Mr. Doe will register the Bike Shop with online portals so that potential customers can easily reach the Shop business. The Company will also develop its own online website showcasing the Company’s location, its inventory of bicycles, its services, and how to contact the Bike Shop. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the bicycles and related services that the Company is selling. Finally, Mr. Doe intends to brand the Bike Shop as a community forum for local biking enthusiasts that will gather at the store. Not only will this increase the visibility and community oriented nature of the business, but it will also promote sales of smaller retail items such as bottled beverages.

5.3 Pricing

In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.

6.0 Organizational Plan and Personnel Summary

6.1 Corporate Organization

6.2 Organizational Budget



6.3 Management Biographies

In this section of the business plan, you should write a two to four paragraph biography about your work experience, your education, and your skill set. For each owner or key employee, you should provide a brief biography in this section.

7.0 Financial Plan

7.1 Underlying Assumptions

  • • The Bike Shop will have an annual revenue growth rate of 9% per year.

  • • The Owner will acquire $100,000 of debt funds to develop the business.

  • • The loan will have a 10 year term with a 9% interest rate.

7.2 Sensitivity Analysis

In the event of an economic downturn, the business may have a decline in its revenues. However, and as discussed earlier, bicycle retailers have seen a marked increase in sales due to high oil prices and people becoming more conscious about the environment. As such, these factors may alleviate some of the risks associated with operating a retail business in today’s economic climate.

7.3 Source of Funds


7.4 General Assumptions

7.5 Profit and Loss Statements 

7.6 Cash Flow Analysis

 

7.7 Balance Sheet

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7.8 General Assumptions

7.9 Business Ratios

Expanded Profit and Loss Statements

Expanded Cash Flow Analysis