In the United States, cycling is a well-liked activity, and many people ride their bikes for recreation, fitness, and transportation. 17.4 million bikes were sold in the nation in just 2015 alone. Bicycles occasionally break down when they are used, and the majority of people aren’t skilled at fixing them. When customers’ vehicles break down, a bike repair shop repairs and refurbishes the bikes for the customers.
The E-Bike market has seen significant growth in recent years due to increasing concerns about environmental sustainability and the desire for a more efficient and convenient mode of transportation. The E-Bike industry has benefited from advancements in technology, leading to improved battery life, range, and power, as well as greater affordability for consumers.
Compared to ordinary bikes, electric bikes require significantly more upkeep. Therefore, the only concern with this potential is how quickly you can capitalize on it and increase your market share.
The advantages of the e-bike repair business are:
- You get customers from everywhere (local people, your local competition, e-shops, direct sell bike brands, etc.) for a very low cost for cheap local marketing, or even for free!
- You don’t need to have a lot of dead money in the business — no big space, no big stock, no many employees. So you don’t need any real cash upfront.
- You have the most control and information about the customer and an advantage over brands, distributors, and other players. You are the closest to the customer.
- You can sell anything to those customers later (products, services, and even new expensive electric bikes).
- Last but not least (especially in the pandemic) — People need to sport individually (for instance, eMTB business) and avoid public transport (city e-bike business).
- Bonus: Now everybody is supporting cycling, mobility, and especially electric bikes
- Bonus: This process is repeatable — repeatable with the number of workstations or locations. When you can run profitably one repair center, you can open new “production lines” or new branches with the same knowledge.
To sum it up, as a repair center, you are closest to the customer, create direct relationships, and have the most influence on his riding experience and buying decisions.
Here is a plan of action for doing it. Since we use this technique while starting new repair shops, we divided it into weeks. You can go at your own pace and consider the weeks to be the major checkpoints. But you must adhere to the instructions.
Both those with and without experience or any other repair shop assets can use this system. You can speed up the procedure if you already have some experience, a workshop, tools, and other resources.
Plan your business
Startup expenses associated with opening a bicycle repair business are fairly minimal, although you’ll probably need these essential items:
- Basic tools (open wrenches, hex keys, screwdrivers, a ratchet set, wire cutters, adjustable pliers)
- Specialized tools (tire spoons, a chain breaker, a tire pump and pressure gauge, a spoke wrench, a crank arm pulley)
- Work stand
- Truing stand (for wheels)
Business owners who don’t already have these tools should expect to spend a few hundred dollars on them.
Repairing bikes also requires a workspace and replacement parts, but both of these potential costs can be kept to almost nothing. Many bike repair business owners have begun by fixing bikes in their garage or basement so that they didn’t have to worry about lease payments until their business was established. The cost of replacement parts is normally built into the invoices customer pay, and customers who need expensive parts can be asked to provide a deposit upfront. Such a deposit can be used to cover the cost of the needed parts.
Get information about the global, but especially your local market. How do you fit into the area? Make your company’s decisions — your niche on the market, size, customers, and services. Check your competition, but do it better, modern. Don’t create another same looking same old-school bike shop.
A bike repair business’ ideal customer is an avid cycler who doesn’t know how, or doesn’t want to take the time and effort, to repair their own bike. Such a customer will likely need repairs and maintenance fairly often, since they use their bike a lot, and they’ll be willing to pay for the work their bike requires.
Bike repair business owners can add new revenue sources and increase their profits, by offering workshops on fixing bikes and repairing old bicycles. Some cycling enthusiasts will pay for a class that shows them how to care for and repair their own bikes. Refurbishing old bikes can also net a nice profit, as they can be sold once they’re repaired and working properly.
Do The Planning And Targets
How much money do you want to make? How big will your company be? In other words — be clear on your goals and targets, do a simplified Business Plan, Financial Plan, and Timeline.
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Many bike repair businesses offer basic tune-ups for a set fee and perform more advanced repairs at an adjustable rate. For example, Wheels in Motion offers three levels of tune-ups that range in price from $79.99 to $214.99. Repairs that go beyond what’s included in a tune-up are usually priced based on the parts and labor they require.
Some bike repair business owners earn up to $35 per hour or more, not including any profit they earn on parts sales. Business owners who grow their businesses into full-time businesses may earn $1,600 per week or more.
Form a legal entity
The most common business structure types are sole proprietorship, partnership, limited liability company (LLC), and corporation.
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your bike repair business is sued. You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection. When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
- Open a business bank account
Besides being a requirement when applying for business loans, opening a business bank account:
- Separates your personal assets from your company’s assets, which is necessary for personal asset protection.
- Makes accounting and tax filing easier.
Get business insurance
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial well-being in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers’ Compensation Coverage.
Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you already have a logo, you can also add it to a QR code with a Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.
- How to promote & market a bike repair business
The best way to promote a bike repair business is to become connected with the local cycling community. Business owners can do this by volunteering at cycling safety events, bike races, and mountain biking trail maintenance days.
Business owners may also want to carry basic bike repair tools on them at all times, so they can help cyclists whose bikes break down. On-the-spot repairs would likely have to be provided for free, but volunteering to help a cyclist fix their bike could lead to a lifelong customer.
- How to keep customers coming back
Bike repair business owners can set themselves apart from competitors by developing a reputation as cycling guru who knows everything there is to know about bikes. Business owners will become respected biking experts if they know a lot about bikes and regularly volunteer information. Maintaining a regular blog or newsletter with useful biking tips is another great way to grow your customer base.
Create your business website
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites – full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system.
Bike repair business owners spend a lot of time working on bicycles. This work includes:
- Testing bikes to diagnose issues
- Stripping bikes down
- Checking and cleaning components
- Repairing or replacing broken pieces
- Rebuilding bikes
When not working on a bike, business owners spend time ordering parts, conversing with customers, and marketing their businesses.
Successfully running a bike repair business requires an in-depth knowledge of bikes, how they’re put together and how they work. Business owners must be able to take apart any bike they work on, identify any issues, address those issues and put the bike back together.
Many regions have community programs and trade schools where business owners can learn these skills. Entrepreneurs who don’t have a program or school nearby may gain the necessary skills by working at an established bike repair shop for a season. The National Bicycle Dealers Association hosts seminars and educational programs for professionals in the bike industry and may be another useful resource.
After completing any training, business owners should keep a couple of bike repair manuals readily available for consulting.
Many bike repair businesses are individual locations that serve the local cycling community, and a number are run by just one or two people. Some, however, grow beyond a local area, eventually becoming regional or national businesses. Bike Doctor in Maryland is an example of a regional bike repair chain, and Velofix is a national one.
Finding free bikes that no one wants, regardless of condition, can help business owners enhance their profit margin. Business owners can disassemble donation motorcycles for spare parts when business is slow. Many bicycle parts, including bearings, brake calipers, chains, and cranks, are interchangeable between models.
Owners of bike repair shops can then employ these components whenever they are hired for a job. Owners can ultimately sell the parts and make a pure profit since the parts were provided free of charge. Owners may also offer free replacement components in exchange for cyclists covering the cost of any necessary labor. This can be especially helpful when a business is growing because the components only take time to acquire and everyone likes it.
