[B1105]

Hey there, I'm curious as to what is needed to start up a shop. I've heard 40k-100k is needed jsut for inventory and was wondeirng if anyone who has started a shop would share their experiences. How is the income if I may ask and what obstacles did you face. I've worked at a shop for two years now, and understand much of what is needed but was specifically curious as to costs and whatnot. Any info would be awesome.

Thanks

Byron

 

[Echo]

The best way to end up with a million dollars in the bike business is to start with two million...

 

[squirrelonabike]

The best advice I can give you is run! Its not about money cause the bike industry is on its ass. You do it cause you love it. The problem comes when you no longer get to love it, because you have to work all the time. Wanna take a weekend off, oops your mechanic just quit. Wanna close early, well you can't cause someone might come in and buy somthing, and well you owe your bike supplier 80k, and its due in 30 days. You wanna own a shop, move to my area, and we'll make you a partner, and we'll open a 3rd together.
So you probably need at least 150k, for inventory, not to mention the 15k you just had to put into the place your renting to make it not suck. the 1500-3000k monthlye for rent and utilities. Like I said before RUN!
Oh yeah, when is the last time any one you know bought somthing at retail price.

 

[BikeGeek]

If you're serious, check out: http://nbda.com/site/index.cfm

They have some great market studies for sale that get into what you can expect the numbers to look like in various markets.

They were very helpful to me in determing that the place I wanted to build a shop couldn't support another shop.

 

[B1105]

Hey thanks guys. As far as money goes, I for sure wouldn't start a bike shop for the money, however I was just curious as to how comfortable one could live from a shop.

Keep the responses coming,

Byron

 

[N8 v2.0]

A friend of mine started a shop. He had worked at another local shop for a couple years and had a HUGE following because of his knowlege and outstanding customer service.

He started with $150,000 and pretty much spent it all before he even opened for business. I'd say he's in the red at the moment since he just opened his shop in March of this year.

He doesn't get Saturdays off...ever. I think all he sees at the moment is all the money he's spending and how very tiny the trickle of money in is...

Do it cuz you love it not cuz you want to be rich. You can make a living at it depending on where you are located.

 

[Echo]

I think the general rule of thumb is, you should plan on being profitable in your 5th year of operation. Those first 4 years are where most shops go broke and fail.

 

[B1105]

Thanks for the site, was very useful.

 

[Knuckleslammer]

Dude, rent a shack next to a bike shop with dirt floors and put a big sign on the front www.bikeparts.com or whatever, paint the windows black and write closed, visit our website for orders and write it in orange, and also put a few signs up like XTR derailleurs, $50, 888r forks $600 and whatnot. You'll be rich in no time

Knuckle

 

[BurlyShirley]

Originally posted by Echo
The best way to end up with a million dollars

Yes "end up"

 

[NastySid]

You start up small and put the money back in the buissnes..

If you plan to run any kind of serious repair shop you need a whole lot of spares. you cannot buy them all at once becouse you can't afford it and you wont get credit for it anyways.

As things progress and you start get more and more volume you can get the ocational bling bits. Most bling customers buys it online and then expect you to build it up for them nearly nothing at all

The flats, the chain and casett changes etc are what pays the bills. Standard to moderate MTBs and Hybrids tool. The bling is fun to tinker with and stuff but the everyday joe is what you need to base your biz on.

The key to any sucsessful shop is customer serveice and quality bits in stock. It's tempting to get really cheap tires and stuff and make a huge profit but quality bits pays in the end.

Dont expect to get much rest/sleep/sex/ride time during bike season.
Dont expect to have that much money to spare either.
DUring wintertime you have time but no money
During summertime you get money but the bills are due and you barely have enough time to sleep, eat and do it all over again