# start a bike shop?



## NeedhamDave (May 17, 2004)

I bet a lot of folks here have dreamed of quitting their job and opening a bike store...anybody have any good suggestions on how to learn more about what's really involved?

There are a lot of shops around here (Boston and metrowest) but I think there's enough bike traffic to support another, very local shop in Needham. And there is a ton of parent/kid bike activity; I guess they all go to International Bike in Newton, Landry's in Natick or REI in Framingham. But those all require a bit of a drive and Intl Bike is overwhelmingly busy every weekend I've been there.


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## RickC5 (Apr 26, 2002)

*IMHO, a tough business*

Two reasons: 1) profit margins on parts and bikes are pretty low, as least from what I've seen, and 2) good help is not easy to find.

Reason #1 sometimes pushes shop owners to rely more on service for profits, which means that reason #2 becomes critical.


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## cpuffe (Aug 1, 2004)

On my way out for a ride right now, and club meeting later, but I'm planning to open a shop later this year. I'll post some random thoughts later on this evening!


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## cmgauch (Oct 11, 2002)

*Cut out the middleman!*

Just file for bankruptcy now.

(sorry, I'm crabby today)

What's really involved? I dunno, I'm just a lender. At the risk of oversimplifying it seems like you've got to begin with an in-depth market study of your proposed location, find a likely spot to set up shop & go through the landlord's credit process, find a few mfgs to represent in your store (which involves seeing what brands the other shops in the area carry, because the mfgs will want to avoid competition between local dealers), go through their credit process & make a sizable initial investment in their bikes, find a wholesale parts dealer & go through their credit process & make a sizable investment in spare parts, invest in shop tools & equipment, set up your shop, etc., etc.

I can't begin to guess at the initial investment, but I'm sure that will vary greatly depending on the image you want to project & what mfgs you are representing. Let us know how you are making out as your research continues.


- Chris


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## dagger (Jul 22, 2004)

*High overhead*

I have a friend with a shop and he has few bikes in the shop because the bike makers want you to commit to a certain amount of bikes per year or you can't carry their brand. So if you don't have bikes then people generally will not visit your shop. So if you don't plan on carrying a buttload of bikes then you gotta have a hook, like free beer to people who visit your shop on a bike, or something like that.


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## bahueh (May 11, 2004)

*owner/mechanic...*



NeedhamDave said:


> I bet a lot of folks here have dreamed of quitting their job and opening a bike store...anybody have any good suggestions on how to learn more about what's really involved?
> 
> There are a lot of shops around here (Boston and metrowest) but I think there's enough bike traffic to support another, very local shop in Needham. And there is a ton of parent/kid bike activity; I guess they all go to International Bike in Newton, Landry's in Natick or REI in Framingham. But those all require a bit of a drive and Intl Bike is overwhelmingly busy every weekend I've been there.



is about the only way that small shops around here make their living. most are CRAMPED spaces dealing with a huge volume of repairs...not as many bike sales. 
the best way it seems is to find a niche as someone else pointed out..either go high end and deal with the high snob factor..or go middle of the line/commuter bikes, nicer people, and older rides. the tools/stands are the only real overhead but yes, bike manufacturers need you to commit to attempt selling a certain number of bikes. lots of shops sell off catelogs just because they don't have the space for huge numbers of assembled rides. the basics (pumps, tires, tubes, locks) have to be there in order to bring in customers. 
small shops are the way to go...but a hard living, especially when annual HUGE grouprides infiltrate the community. my shop owner friend was hit HARD with the Portland Bridge Pedal a few weeks ago (25,000 riders take the bike out of the garage once a year and dust it off to ride around all the 10 bridges here...freeways are shut down..pretty funny stuff). he was mx. bikes some 12 hours / day for weeks beforehand. 
its a mixed bag definitely, but a hard way to make a living. you have to really love bikes...and not really enjoy riding them that much as time is limited.
just my take...
corporate shops are different.


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## NeedhamDave (May 17, 2004)

*amazing what you can find on the internet*

Here's a 26-page report on this issue...from the Illinois department of commerce:

http://www.sbaer.uca.edu/profiles/industry_profiles/06.pdf


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## mandovoodoo (Aug 27, 2005)

The key is being the person who can run a business. I didn't know I was that person. I got into business by mistake. Now I'm fairly well known in my business (violinmaking & mandolins), gross about $500,000 per year, and have a good time. Forced to commute by bicycle over wonderful rolling Tennessee hills, or kayak to work, take off with the kids when I want etc. 

Sole proprietor with a great insurance policy. Get a $1M rider and don't tell anyone about it.

Get a good small business accountant.

Figure out your theme, vision, niche, whatever. Expect to change it.

Watch the numbers very carefully.

I made a gross profit of over $1000 today. And we're closed today. Go for it if your study says it will work and you have that drive. If you don't have the drive, don't do it. A good partner helps. Gianna (wife unit) and I run our thing as a partnership. Works great.

See www.giannaviolins.com


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## jakerson (Jun 15, 2004)

Great advice in some of these posts...

I have read versions of this in a few different bike shops: 
_*There's only one way to become a Millionaire running a bicycle shop: Start with $10 million.*
_

I ran a business for about 2 years. It was not profitable. I poured my heart into it - I poured my time into it. It was heart breaking to sell it. It was just not profitable. There wasn't any business model that would have been profitable.

Good luck. Whatever you do - good luck.


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## Alpedhuez55 (Jun 29, 2005)

Dave Best of Luck on your decision. It is a tough business. I worked in the insustry for a while. It is a labor of love. So don't expect to get rich. You need to find a good core group of customers. Hopefully a club or group you ride in may help spread the word. Be prepared to work on a lot of crappy bikes. 

Landry's, International and REI are all good shops. But they may do what ever they can to make sure you cannot sell the bigger brands like Trek, Cannondale and Specialized or any other brands they carry. They will all say you are too close to them when you try to pick up a brand they carry, and with thier multi store sales figures, they will probably get their way. So you may be looking at selling second tier brands like Jamis, Iron Horse or Fuji. While they make great bikes, the casual buyer may not think as highly of them.

It is a tough industy in the Boston Area. Northeast Bikes in Saugus and Pro Cycles in Wakefield both closed in the last couple of years. THey were both Trek Dealers with high street traffic locations. Dicks and Sports Authority are also moving into the area offereing cheap labor and bikes. Good Luck on your decision and PM me if I you have any questions.


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## Lifelover (Jul 8, 2004)

cmgauch said:


> Just file for bankruptcy now.
> - Chris


LOL....


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## rcnute (Dec 21, 2004)

Speaking as a customer, hire competent staff who don't have an attitude problem and follow up with the customer. (Every employer's dream, I know.) I'm amazed at the number of bike shop owners who fail to treat their customers with the attention and respect they deserve. This is basic, people.


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## Val_Garou (Apr 30, 2002)

Work in a shop.

Work in a couple of shops.

Revisit your dream.


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## firstrax (Nov 13, 2001)

I cant believe no one has mentioned the three most important things in retail success.

1) Location
2) Location
3) Location


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## Anti-gravity (Jul 16, 2004)

*Lol*



NeedhamDave said:


> I bet a lot of folks here have dreamed of quitting their job and opening a bike store...anybody have any good suggestions on how to learn more about what's really involved?
> 
> There are a lot of shops around here (Boston and metrowest) but I think there's enough bike traffic to support another, very local shop in Needham. And there is a ton of parent/kid bike activity; I guess they all go to International Bike in Newton, Landry's in Natick or REI in Framingham. But those all require a bit of a drive and Intl Bike is overwhelmingly busy every weekend I've been there.


I've dreamed of quitting my bike shop job and getting a *real* job!  . But in all seriousness, I personally don't believe anyone is ready to open their own shop in this day and age without working in one for a while starting as a lowly bike-building peon or just plain getting their hands dirty working on a POS Walmart Mongoose. I don't have much else to say, as the other people on this thread have posted good info, but you should realize that you really, really, really, really have to love bikes, the cycling community and your customers to survive in a business like this. Good mechanics are essential, as it doesn't take much of a screw-up for people to begin talking about your shop as the local screw-up shop. I'd definitely give this a ton of thought if you are at all serious because it isn't like any other business venture where money is the bottom line. There is no money-making in a bike shop, period, unless you have progressed to corporate status like Performance, Supergo, et al. Think long and think hard, because it can be a tough business, especially for the less experienced. I've worked at four different shops (one that went out of business and one that will probably soon go out of business), so I know the basic jist of the business. Good luck!


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## Henry Chinaski (Feb 3, 2004)

Val_Garou said:


> Work in a shop.
> 
> Work in a couple of shops.
> 
> Revisit your dream.


Yep. You'd be nuts to open a shop without having worked in them for a while. It's fun if you're young or independantly wealthy, but otherwise I'd stay away...


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## wayneanneli (Jul 8, 2004)

Henry Chinaski said:


> Yep. You'd be nuts to open a shop without having worked in them for a while. It's fun if you're young or independantly wealthy, but otherwise I'd stay away...


Come on Henry, we're both young and wealthy, wanna go into business together  ? Seriously, agree pretty much with everything said here. If I was 10 years younger and had no children or dependents to speak of, I would consider. The fact is that you won't be home a lot to see your children, if you have any. Consider working 60 hours weeks to start with and then some. If you're serious, do some marketing research and see what the potential for business is at your location, both local and within say a 50 miles radius. Will people drive to your store? Is there anything else there to attract them?


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## nate (Jun 20, 2004)

mandovoodoo said:


> The key is being the person who can run a business. I didn't know I was that person. I got into business by mistake. Now I'm fairly well known in my business (violinmaking & mandolins), gross about $500,000 per year, and have a good time. Forced to commute by bicycle over wonderful rolling Tennessee hills, or kayak to work, take off with the kids when I want etc.
> 
> Sole proprietor with a great insurance policy. Get a $1M rider and don't tell anyone about it.
> 
> ...


Did I read that correctly? You can kayak to work? Now that is cool.

The violin-making also seems neat. My first and only full size violin belonged to my great aunt and was bought from the Sears catalog around 1918. Too bad I haven't played in 20 years. 

I expect that there is slightly less competition in the violin-making business than there is in the retail bicycle business, and skill variance between instrument makers probably matters much more than bicycle retailers. In my area, it seems that the bicycle business has a lot of competition.


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## chipped teeth (Apr 18, 2005)

*Heed the advice...*

Work in one first. I don't know how many people try to open a restaurant without ever having washed dishes, waited a table or cooked, but I know they don't stay open.

Working there will give you an idea of what works and what doesn't as far as customers are concerned. It will also give you a sense of what the business end is like. Remember- the employees, creditors, landlord and vendors all get paid before the owner.You migh be paying yourself in bikes for the first couple years, and if you aren't careful even that will bankrupt you.


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## teoteoteo (Sep 8, 2002)

rcnute said:


> Speaking as a customer, hire competent staff who don't have an attitude problem and follow up with the customer. (Every employer's dream, I know.) I'm amazed at the number of bike shop owners who fail to treat their customers with the attention and respect they deserve. This is basic, people.



Hire a competant staff and LEAD by example. Many shops with @sshole owners can easily justify having @sshole employees and not think they have a problem. However, very few genuine caring, good owners will stand for @sshole employees unless they don't work daily in their shop and know what really goes on. 

While keeping Job definition clear also keep in mind that all of the employees will always base at least part of how they behave towards customers on how YOU treat customers. Next never lead by fear and intimidation. I worked at a shop with an owner that was tops with customers but had (and still has) a real problem treating employees well. Too many examples to post but there was a real Jekyll/Hyde thing going on and employees never knew when the Jekyll part would come out. The entire shop was scared to make judgement calls because the guy would snap ocaisionally even when sound judgement was used. In the shop we used to call it "handing out $hit sandwiches" and though we didn't expect the guy to be our friend we did expect and need consistancy and support.


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## goldsbar (Apr 24, 2002)

I hate to spoil your dreams, but I would never open a small retail shop. Any small retail shop (unless I really thought it had a niche). Very long hours. Very low pay. Your looking into this because you like riding? Do a lot of riding now then because you won't get to ride much based on the shop owners I've seen.

Try a search as there was an excellent post on this same topic a few months ago.


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## Road cyclist (Jan 15, 2005)

Let me help you with the investment amount. We have a real nice bike shop located
in an expensive area in silicon valley ( San Jose). One day, in a casual converstation with the owner I mentioned that he must have at least $250,000 tied up in merchandise just sitting in the store (honey to attract the flies). His answer to me was that amount was very conservative. WIth all the internet buzz and deals I can't imagine the average guy 
lasting in that situation. He started his business a long time ago.


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## Howzitbroke (Jun 1, 2005)

*Voice of experience....*

Research needs to begin with working in the business. I was managing a restaurant in 98 when I decided to chase my dream which happens to be the same as yours. I quit and spent a month at Barnetts in CO Springs for a little up to date suspension, and disc brake knowledge and other formal mechaincal education. I went on to wrench in 2 shops for 5 years. Both shops were very well known for their wheelbuilding and mechanical skill and taught me things everyday. After I felt I knew enough I wrote a business plan with market analysis, sales projections, competetive enviroment analysis, proposed location and demographics of that location and on and on and got a small business loan. Secured a 1200ft space with nicelocal traffic. I owned all the tools from purchasing them over the past 5 years slowly. I built my own work bench. Got in contact with bike companies, and parts wholesalers and bought a bunch of basic necessary stuff and opened the doors. 

In retrospect I did a lot right but I closed after 3 years. I had steady business from 3 local police departments, one with 10+ bikes that got abused regularly. You got you bike back same day if you dropped it off at lunch and picked up on your way home if you needed. Next day if you wanted, or at the longest in a week if I needed to order a part. I worked on anything. I built several sets of wheels for wheelchairs. I fixed strollers. Trued a motorcycle wheel. The bike assembler at a huge toy store down the street sent me new people almost every other day with things he was unamble to fix. The guy at the nearest Dicks sent me people with repairs as well. They were both just guys I had met at my store when they stopped in. We talked. I helped them, they helped me. Most of my core customers still visit my house for repairs. I didn't lose business for bad attitude, or poor work. Ever. That was rule one. 

The overhead sucks. Rent, insurance, phone (two lines and cell), gas&electric, accounting were all I had as fixed costs. I bought my displays from a closed department store. The neon sign required by the shopping center was expensive but I had no choice as it was specified in the lease. Need a sign? I advertised when I could get a good deal. I traded old product with two different local radio stations for give aways in exchange for advertising on air. I was nothing if not creative. Cost of goods sold is just high even if you can buy in bulk.

We also have big box bully shop that is pretty smart/or underhanded depending on your opinion of busniness. I started carrying a brand of BMX bike that was unknown in our area when I opened. Soon after Big Store had 40 of the same brand on their shelves (I can't prove this was done on purpose but I know their purchasing manager visited my shop soon after I opened). So if a kid came in and wanted something I didn't have he now had no reason to wait. Its the way it is. Cash talks. I lost a most of my sales this way. I didn't stock much, and when I tried to they would sit until I discounted them. If it aint in stock you can't sell it today, but you can't stock it all. You need to make good decisions here. Bling bling new whizbang stuff will be asked for often and purchased rarely and make you less on margin.

It was the best thing I ever did. I got it out of my system and enjoyed the hell out of it. I may do it again some day if I need a decent sized write off. I would make it smaller and even more efficient and put it between a coffee shop and a bar for my sake.

And based on the above post I rode 5 times last week. The most in a very long time. There is some truth there but I would have commuted if it were not for kid hauling.


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## NeedhamDave (May 17, 2004)

*thanks for all the advice*

Thanks for all the responses, many with a lot of great details. I think the negative/reality check stuff is par for the course in any small business start up and the key is to make sure this is what I really want to do. I'm nowhere near there yet; just trying to figure out something to do that's more rewarding than my current career and which will not require me to go broke.


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## wayneanneli (Jul 8, 2004)

NeedhamDave said:


> Thanks for all the responses, many with a lot of great details. I think the negative/reality check stuff is par for the course in any small business start up and the key is to make sure this is what I really want to do. I'm nowhere near there yet; just trying to figure out something to do that's more rewarding than my current career and which will not require me to go broke.


Hey Dave, 
I know what you're going through, kind of. We're both the same age, and I'm not sure if you have children, but I have two kids, 3 and 1.5. About two years ago, I was considering buying a franchise of Sweden's largest outdoor retailer. I would have had to pay 80,000 Sek (about 10,000 dollars US) just for the name, and an annual percentage of 6% of total sales, regardless if I made a profit or not. I did some research and called around to some of the other franchises and realised that I would be away from home way more than at home. And I just didn't want to sacrifice that time of my childrens' lives at work. That's my reason for not doing it. It's a hard decision, but I really don't know too many people who do it for the money. You won't become Steve Jobs rich. Anyway, good luck, Dave. Keep us posted.
Cheers, Wayne


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## pmf (Feb 23, 2004)

*Get into farming instead*

Next to a bike shop, farming is probably the quickest way to exhaust your lottery winnings.


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## jm3 (Mar 22, 2003)

*I'm building a shop right now...*

in SoCal. Much of the info posted has been correct. Location and market analysis are very important, and you must have adequate funding - this is where most mistakes are made. After building, merchandising, and marketing my shop, I'll still have a year's worth of full operating expenses to fall back on if things are slow. Also, you really need to have some big brands on board who will protect your territory, and help market your shop.

As far as a solid money figure, I would recommend about 500,000K to open if you have outstanding credit and will receive product on terms (bikes only at first to avoid credit hell). Not everyone is offered terms at first, but if you can get them, it helps a great deal.

I've been pretty lucky as my shop is in a community with good demogrpahics but poor bicycle retail service. Lots of brands want in, and have been willing to out-do one another for a piece of floor space. It's a good position to be in, but it's still no guarantee of success. Other than a lack of funding, customer service will make or break a new shop.


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## MarkS (Feb 3, 2004)

*customer service*



jm3 said:


> Other than a lack of funding, customer service will make or break a new shop.


As a customer, service is what I am interested in -- I can get the goods from calatogues or over the internet. The LBS that I patronize has excellent customer service. Teo's comments above about the interaction between the owner and the staff is something that you should take to heart. The owner can't attend to every customer during every minute that the shop is open. Your staff can make or break you. Getting and keeping good workers is not easy -- I have seen lots of them come and go at the LBS. But, I also have observed that the good ones stay for a long time -- there are at least two people that have been working at the shop for at least five years and others who have been there at least two or three. You have to have the resolve to get rid of bad employees quickly and reward the good ones so that they stay. Although money is a good part of the equation, a good working environment is key, too.


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## SJBiker (Jan 22, 2004)

*funny*



firstrax said:


> I cant believe no one has mentioned the three most important things in retail success.
> 
> 1) Location
> 2) Location
> 3) Location


how everyone says, 'Oh if you have the right location, you're in business." As far as I'm concerned, there is one bike shop I'll NEVER be buying a bike from...Too quick to sell an over-priced Cervelo toa college kid. Talked about money before the hour was over when I never even come close to discussing a sale (I just drool). Stuffy the next time I came by. Ignore me the rest. Location?? In the middle of a small township located at the crossroads of some of the best country riding here in MD. PACKED on weekends.

Just my $0.02 cynical cents


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## SJBiker (Jan 22, 2004)

*Sad stories here too*



Alpedhuez55 said:


> It is a tough industy in the Boston Area. Northeast Bikes in Saugus and Pro Cycles in Wakefield both closed in the last couple of years. THey were both Trek Dealers with high street traffic locations. Dicks and Sports Authority are also moving into the area offereing cheap labor and bikes. Good Luck on your decision and PM me if I you have any questions.


A couple of months ago, I was in a sort of craze to visit bike shops in the local area I had never seen before. So, I looked up bike shops on mapquest for my local area. Among most of the ones I visited, I saw 2 which made my cyclist's heart cry:

1) at the intersection of famous Rt.1 and a small road just past College Park, MD. It was a big barn-like building with the sign 'Bicycle Shop' outside but completely empty through the windows and had weeds all over the parking lot....

2) A small quaint house that had been converted to a bike shop. Even had the sign out front. On Church St. in Baltimore....Horrible location actually (halfway down a residential street). The house/building was still closed up and had overgrown weeds and a rusitng car in the driveway. No apparent sign of life....


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## mandovoodoo (Aug 27, 2005)

nate said:


> Did I read that correctly? You can kayak to work? Now that is cool.
> 
> The violin-making also seems neat. My first and only full size violin belonged to my great aunt and was bought from the Sears catalog around 1918. Too bad I haven't played in 20 years.
> 
> I expect that there is slightly less competition in the violin-making business than there is in the retail bicycle business, and skill variance between instrument makers probably matters much more than bicycle retailers. In my area, it seems that the bicycle business has a lot of competition.


The bowed strings market isn't terribly large. I'm surprised at both how much competition there is and how ineffective it is! The two of us from our $1500/month overhead rural location seem to have captured about 0.2% of the national market. Word of mouth brings in a great deal of business. We also do some special things nobody else does, develop our own products, provide sterling service and information, etc. That low overhead thing is very important. We run about 20% net profit (after taxes even!). 

Retail cycle seems to work pretty well for those with great service and location. Have to have that theme! I managed bicycle shops long ago. Kept to the intermediate and advance road market with an emphasis on free service and the like. Rather than trying to make everyone happy. So much counts on the emotional connection aspect. People have to want to buy things from you. I get calls now from people who want to chat about what they're going to save up for, folks who have read every word I've written. Pretty weird, but it works! So I've been able to get that connection going via the web and festivals. How to do that in a bicycle retail shop takes some thought. Have to figure out the market very carefully.

Another aspect of the business is invention. Bike people like toys. I actually have a wonderful bike invention I'm working on. Will be fun to see if it works.

And kayaking. My wife doesn't like kayaking, so we're riding to work now. It is only 2.5 miles direct, but we generally do 10 to 15 miles. Nice rolling warmup, then start punching pretty hard. I've just lowered my bars more so I can keep up with her. She's got so much lower air resistance! Another upside of getting a much younger wife - gives a wheel to follow for the old guy. 

maps.google.com enter 37737 then "gianna violins" None of the locations are particularly right, but that's the area we ride around. Shows the TN river where I paddle. Come visit!

And


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## firstrax (Nov 13, 2001)

SJBiker said:


> how everyone says, 'Oh if you have the right location, you're in business."


Location is the _*most*_ important aspect of retail. But not the _*only*_ important aspect. You still have to do everything else well.


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## cpuffe (Aug 1, 2004)

I'm in the process of finishing up my business plan and going after funding.

Many of the things, positive and negative, folks have posted in this thread I've heard before. I'm not deterred. The key is understanding whether or not a need exists in your community and whether or not you can serve it. My community is underserved by bike shops that offer family bikes, top notch service and honest fair customer service.

Above and beyond determining if a need exists and if it can be served, you need to assess if the idea is financially feasible. Developing a formal business plan is key to this. One thing I was told is not to be emotionally bound into the concept of opening your bike shop; if the numbers turn sour, you have to be able to walk away from your idea. 

Since retail bike business is so narrow margin, you need to do everything you can to limit expenses. There are some ways to manage inventory that keeps your investment tolerable. Working with reps helps, make them partners in your shop. Being smart as to what accessories and clothing you bring is is also important. There are lots of alternatives, some of which are higher margin and lower cost than seemingly identical items. Be smart and do your homework.

As far as IT goes, you can't afford to not have a good point of sale computer system with integrated customer relationship management and credit card processing. The time saved there is unreal, plus there are systems that will link to your POS system and search out the best prices on your high margin parts and accessories and further leverage your efficiencies.

Go to Interbike if you can. The contacts you make there are valuable beyond belief.

Another thing to consider is joining the Yaya Bike cooperative. I'm considering this very strongly. Yaya offers a ton of incentives to independent bike shop owners like highly leveraged purchase power, rebates on purchases done through the cooperative and customer relationship management. I'm still trying to determine what the down side of being affiliated with Yaya is since I heard of them last year, and I can't find any downsides. 

Good luck! I hope your dream comes true.


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## Nigeyy (Mar 30, 2003)

There are so many negatives posted in this thread. I don't know the first thing about owning and operating a bike store, but I do know that if you really want to do it and don't, in life you tend to regret the things you haven't done rather than the things you have. Though I have to be honest, even though I love bikes, the main reason I personally wouldn't want to go into the business is the fear of losing the pleasure and fun of bikes as they would then become a business.

Given my limited knowledge, I'll take a guess and add to other suggestions and say that since employees are some of the biggest expenses, you'd have to be very knowledgeable and be a good mechanic to start off until you can afford one. Actually that raises an interesting question -do you have to be a certified bike mechanic of some sort? Would you have to carry some sort of liability insurance and would the company require proof that you are a competent mechanic?

I have to say what I do sometimes dream of is to run a bike rental business in a vacation sort of place (think Nantucket or Martha's Vineyard). Somehow it seems more appealing than a bike store -and not bikes for serious roadies, but bikes for the vacationing family sort of thing. Course, I'm sure there are many problems with that, but you can always dream......


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## NeedhamDave (May 17, 2004)

*mid life*

Yep, I've got a 13-month old and another on the way. Even though we live a frugal lifestyle, it is hard to get around the housing costs around here. It doesn't mean I'm totally "trapped," but it raises the practicality bar and makes me think long and hard before doing anything. Also, I started a business with a friend before and that taught me that if I ever do it again, I better have a solid plan, an exit strategy, and total commitment.


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## Nigeyy (Mar 30, 2003)

I think I know where you're coming from Dave; I live in Westwood, three kids -2,3 and 4 years old (just shoot me now and get it over with). One of the problems living in the Boston area is the high cost. Unless you don't have mortgage payments or you've got a bit of money, you need to have enough to keep paying those mortgage payments while you take that risk to start that business.

Course, you could sell your house, invest the money you get in that business and then rent.....



NeedhamDave said:


> Yep, I've got a 13-month old and another on the way. Even though we live a frugal lifestyle, it is hard to get around the housing costs around here. It doesn't mean I'm totally "trapped," but it raises the practicality bar and makes me think long and hard before doing anything. Also, I started a business with a friend before and that taught me that if I ever do it again, I better have a solid plan, an exit strategy, and total commitment.


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## harvey (Feb 27, 2005)

NeedhamDave said:


> There are a lot of shops around here (Boston and metrowest) but I think there's enough bike traffic to support another, very local shop in Needham. And there is a ton of parent/kid bike activity; I guess they all go to International Bike in Newton, Landry's in Natick or REI in Framingham. But those all require a bit of a drive and Intl Bike is overwhelmingly busy every weekend I've been there.


In retail, your most important thing will be to attract customers. You've got a lot of local (and well-known -- I'm not that far from you) competetion, so you're going to need to let the community know that you're there. Serious cyclists generally go to shops they know, but maybe they'll be curious enough to stop to see what you have to offer. Likely, your biggest clientele will be parents buying bikes for their kids (and there your biggest competition will be the WalMart-type stores). You also have to decide what you'll do in the winter. I worked in a bike shop for a year and things really get SLOW after Christmas!

Good luck -- you're going to need it.


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## Alpedhuez55 (Jun 29, 2005)

Dave, I came across this addd on Craigslist for someone selling a bikeshop in the Metrowest area. I have no idea what chop it is since I do not make it to a lot of shops in the Metro West area:

http://boston.craigslist.org/bik/100000997.html

Even if you may not be interested in their shop, it is in the area you are looking to open up in. They may give you an idea of what to expect to 

I think there are a couple of other shops going under near Boston. I hear City Cycles in Lynn and Central Cycle in Revere are both closing shop. THis is in addition to Pro Cycles and North East Cycles which went under last year. I would be very cautios opening a shop right now.

Good Luck with your decision!!!


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## cpuffe (Aug 1, 2004)

Rather than just saying "it's a bad time to open a bike shop," look into the reasons why these shops failed. Were they overextended on debt? Did they have poor customer service or repair skills? Did they not make effective use of customer and sales information through IT? Were they not in sync with the local market and its bicycle needs?

You survive and thrive in small business by understanding and meeting a customer's need. Shops that can't do that fail. Shops that can do that are successful beyond expectations.


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## NeedhamDave (May 17, 2004)

*thanks for the link*

and all the responses here...I've just been thinking of all sorts of alternatives to my current job and am a long way from jumping in and doing something major like this. But it is a good start to find out what is really involved.


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## mandovoodoo (Aug 27, 2005)

An alternative method to doing something else, other than a "job." Let something you enjoy take over. That's how I became a violin shop owner. It actually took off when I was in law school. Never did practice much law. 

I started with a box of tools. Worked up to a bench. Then a room. Then a bigger room. Then the great room of our house. We eventually drove ourselves right out of our house into a $400 / month old general store. I think we'll get driven out of that by need for space eventually. Every step we've waited until we were driven to do something. And we've run mostly on cash. Very little credit. 

Picking a low inventory cost business is nice, too. We generally have under $50,000 in inventory. And we do $35,000 in sales / month, or a bit more. Including service and so on. After tax net for the 2 of us generally runs about 20% of sales. So this isn't too shabby for a rural setting. 

Very conservative approaches can work nicely.


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## brooklyn barrister (Aug 18, 2005)

I was researching LBS vs. Chain last month and of course fell in to the trap of reading about the killing that one or two folks have made with the Chain approach. 

The article below got a chuckle out of me with the huge-ass-Mercedes-driving-slash-and-burn capitalism that the author learned to write about in business school. 

http://www.inc.com/magazine/19910801/4779.html

Does anyone know the story behind Landry's in Mass? Was it a chain from the get-go or did it start as a mom & pop shop?


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## freakydimitri (May 5, 2009)

Are you serious about selling your sign?


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## merckx_rider (Aug 20, 2008)

Hey OP, check out my Virtual Bike Shop 
http://www.gotbiz.com/bricycles
Only problem, is finding enough customers to keep you in business.
I can tell you first hand that living the dream is more work than you can imagine.
Good luck with that!!


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## rook (Apr 5, 2009)

*You would have a greater chance of success opening a McDonald's franchise*

Person A:
Opens a McDonald's franchise, hates his job, goes home tired and angry at his employees being late, their service, etc. Still able to pay the bills and put the kids through college.

Person B:
Opens a bike shop. Loves bikes, has great employees, but lately very stressed because he can't pay his bills and the kids won't be getting help to pay for college.

Which person do you want to be? Exactly. Person A. Why? Because, at least, at the end of the day you can pay the bills and take care of the family. Your love for bikes is a selfish love if you are person B. Why? You don't care about what happens to your family because you chose this profession for yourself, not the welfare of your own family.


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## Claudio14 (Jan 25, 2008)

If you do it, remember one phrase!

If you build it they will come!

I believe that a shop that customizes the bike/components is a step ahead. You can stock a variety of frame sets a build a bike with a component set that suits a customer's budget and ability.


This also leads to being able to keep the customer in the future when they are ready to upgrade components, plus there is a good feeling that comes knowing that the bike was built for you.


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## FatTireFred (Jan 31, 2005)

this thread is 3.5 yrs old


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## tomk96 (Sep 24, 2007)

FatTireFred said:


> this thread is 3.5 yrs old


yeah, i wish i noticed that a little sooner.


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## rook (Apr 5, 2009)

FatTireFred said:


> this thread is 3.5 yrs old


Yeah, I just noticed that now too. Whoever bothers to look at how old these posts are. Anyway, it was listed at the top of the message board when I found it.


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## Indyfan (Mar 30, 2004)

I agree with everyone that says work in a couple of shops (or even more). Try to recognize the strengths and weaknesses of those shops as you work in them. Remember; first it's a business. By that I mean you have to be very organized, watch your pennies like a hawk and learn as much as you can from the BEST sources, as in going to BBI or UBI for wrenching, take some classes related to small business ownership at community college. It could take you years to become proficient in a shop by working in one and might not learn the best or even decent techniques. And If you learn the basics of the business end after you've started the business you're going to waste a lot of money and time. Did I say be or become organized? I should have said be absolutely anal-retentive about everything. When it's time, hire the best people you can (avoid the "hire my buddies" trap too), pay them as well as you can, put policies in place to keep temptation away from them (clean, organized, regularly inventoried), keep the place a reasonably fun place to work without losing the necessary structure and try to learn that at some point it's a really good thing to not have a "one man show" kind of place. 

Good luck,
Bob


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## muscleendurance (Jan 11, 2009)

someones playing naughty games with us! - now stop before the bad man comes..


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## Puchnuts (Oct 9, 2008)

Compromise: 

Are people getting screwed with bad service? Repairs being done by buck-toothed yeehaws whose only mechanical experience was using vice-grips and a hammer? People looking for an alternative?

Open an underground shop. I did this for 10 years. It wasn't my day-job, and I had to be careful not to advertise too well. Mostly word-of-mouth. And my skills spoke for themselves - I went the extra mile and made a person's bicycle work at it's full potential. Full overhauls were common. I didn't mind if people brought their own components. I was a wrench. I was swimming in professional tools. My customers were elated - and the monkey downtown and his pet hyenas hated my guts! I was in heaven! LOL!

So this can be a compromise to opening a front-line shop. Just be careful of your clientele. People should be referred to you by a friend. If you get truly overwhelmed - as happens in peak-season - make sure you have a few friends to help out. And train them well. It's easy - as long as they love cycling too.


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