Business plan: bike rental as a profitable business. How to Start a Bicycle Rental Business Company and Industry Description
Bicycle rental is most profitable to open in resort towns or in megacities, not far from central squares and parks. Recently, many urban residents prefer cycling, so the demand for rental services is constantly growing. If you are attracted to such an activity, the detailed bike rental business plan proposed in this article will help you properly organize this profitable and quite promising business.
Activity registration
Before you open your bike rental business, you must first register the business. If you plan to open a network of rental points throughout the city, you can apply for an IP, since the advantages of an LLC are not of particular importance for this business.
In addition, you will also need a permit from the city authorities. It can be obtained from the local administration.
Location of the rental point
After you complete everything Required documents need to decide on a location. It is most advantageous to place a city bike rental in an area with good traffic, for example:- On the embankment;
- In the amusement park;
- In the city park;
- In a park or grove;
- On the square.
Before making a final decision, make sure that the area you choose is not prohibited from cycling. It is important that there is at least one bike path. In order for people to know where to rent a bike, put up some signposts or put up banner ads.
The working hours of the bicycle rental point in the park are from 9.00 to 21.00. If it is located in a resort town, working time can be extended by 1-2 hours. In the evenings and weekends, there is a high demand for adult vehicles. On weekdays in the morning you will bring good profit rental of children's bicycles.
Equipment
If you decide to open a bike rental in 2017, you first need to purchase the vehicles themselves. The profitability of the business largely depends on their technical condition and assortment, so the choice of bicycles must be approached seriously and responsibly. At the stage of formation, you should not immediately purchase a lot of equipment. It is enough to purchase 5-6 units. You should not be limited to vehicles of one model.
Bicycles must be presented at the rental point for:
- Cross-country driving;
- Straight and dirt;
- Women;
- Children.
This approach will allow you to reach a large audience of customers and, accordingly, earn decent money.
Experts do not recommend buying expensive sports bikes for rent. Professional athletes are unlikely to come to you to rent them for training. Simple models that are designed for walking are suitable for ordinary customers. To save some money, you can buy used imported bikes. They are of affordable price and high quality. It is best to buy equipment and equipment in winter. In this case, you can get a good discount.
When buying a bike, pay special attention to:
- The strength and durability of the material from which it is made;
- frame size;
- Rear shock absorbers.
One reliable and high-quality adult bicycle costs 25–30 thousand rubles, a children's model costs 15 thousand rubles. In general, the purchase of equipment for bicycle rental will require approximately 400 thousand rubles. If you buy all the equipment from one manufacturer, you can negotiate a good discount. Plus, you can save a lot on shipping.
Services
Do not forget that bike rental is a seasonal business that brings good profits in the warm season. This service starts in April and ends in October. Accordingly, a downtime period is formed. In order for the business to generate income all year round, you need to reorganize for the winter season.
In summer, you can earn additional income by renting:
- Skateboards;
- roller skates;
- scooters;
- protective equipment.
In winter, customers rent:
- Skates;
- Sanok;
- Snowboard.
To ensure round-the-clock operation of the rental point, additional investments will be required. This important point should be taken into account when developing a business plan.
Staff
Since the rental point is open from morning to late evening, work in it must be carried out in shifts. At first, to reduce costs, you can work on your own. Over time, when the business begins to bring a decent profit, you can hire an assistant. This may be a young person who is looking for,.
If you plan to open a network of rental points around the city, you need to invite an accountant to work, who will deal with various financial issues and record keeping. For the repair and maintenance of equipment, you should hire an experienced craftsman or agree on cooperation with a company that, if necessary, will send its employees to you.
Financial investments
Beginners who are doing this for the first time try to get the most expensive bikes for rent. But often their price is greatly inflated due to the brand, so this technique quickly fails and thus brings serious losses to novice entrepreneurs. Experienced businessmen who have been working in this field for a long time recommend buying adult bicycles no more than 25-30 thousand rubles each. Children's models will cost you 15 thousand rubles. You should not buy adult bicycles for 10-15 thousand rubles, as they can break down in just a few days.When drawing up a business plan for renting a bike with calculations, you need to consider that in addition to buying vehicles, you will also need money for:
- Renting a room for storing bicycles - 5-7 thousand rubles a month;
- Renting a plot for a rental point - 8-10 thousand rubles;
- Repair tool - 50 thousand rubles;
- Skiing equipment - 50 thousand rubles.
According to experts, bicycle rental is one of the most popular. If you cannot decide, without knowledge and experience, try to do such a simple and quite profitable business.
Profit
Thinking about it, many aspiring entrepreneurs for some reason overlook the rental of bicycles. This service appeared in our country relatively recently, so there is still no high level of competition in this area. But this can bring real stable income.
Bicycles are usually rented by the hour. It is desirable that the client leave some kind of deposit (a document or a certain amount of money). Some entrepreneurs offer to rent a bike for a day or for several days, but this service is not in great demand.
Before calculating future profits, first determine the prices. To do this, you need to carefully research the market and find out how much bike rental from competitors costs. To attract customers to your business, at first, offer them low prices, as well as various discounts and bonuses. Over time, when you have your own client base, prices can be gradually raised.
The average cost of bike rental is 100-150 rubles per hour or 500-800 rubles per day. The price of renting a children's bike should be a little lower. Thanks to this, you will be able to attract more customers to your business. If you want to increase your income, you can rent scooters, roller skates, skateboards and equipment.
Approximately 50 people use this service daily. Accordingly, in one month, a rental point located in a crowded place brings 150 thousand rubles of profit. Of these, 90 thousand rubles is net income. This is one of . All initial investments pay off in 1-2 months of work. Bicycle rental is a great option for those who are interested in. The profitability of this business ranges from 40-55%.
Business from scratch: Rent and rent
Risks
In order for your business to flourish and bring good income, you need to minimize all possible risks:
- Theft. You can protect yourself from thieves and scammers if you conclude a lease agreement with each client. In addition, you need to make a photocopy of the tenant's documents or ask to leave them as a deposit;
- Breaking. This nuance must also be discussed in the agreement. Experts recommend taking full responsibility for breakdowns, since in most cases bikes fail through no fault of the client;
- Late return. A client who does not comply with the terms of the agreement must pay a fine;
- Injuries. In order not to be responsible for the life and health of customers, it is necessary to indicate in the contract that the tenant himself is responsible for his injuries. Before giving out a bicycle, be sure to conduct a short safety briefing and make a note in a special journal.
It is impossible to foresee all the risks, but if you protect yourself from possible problems as much as possible, you can safely count on the fact that the business will bring stable profits without any surprises.
findings
Bicycle rental is a great option for beginners who can't decide. Such a business does not require large initial investments or special preparation from you. If you minimize all risks, you can safely count on a decent stable income.
When choosing a business with little investment, pay attention to bike rental. You can open a small rental point with about 250 thousand rubles of starting capital. This amount implies the purchase of 10 bicycles and a set of spare parts for the first time. Since the service is very popular, one season is enough for a full return on investment.
Interestingly, the competition is not so high, since potential businessmen believe that the rental is irrelevant. Indeed, if every tourist can afford to buy an inexpensive bike for 5-10 thousand, then why should he go to a rental shop? However, practice shows that in most cases people prefer to rent bicycles, even if the purchase and rental amounts are comparable.
Reasons for its popularity:
- There is simply nowhere for a modern city dweller to store a bicycle, because in a small apartment or on a balcony it takes up a lot of space. And not everyone likes to climb the stairs with him.
- At the rental point, you can always choose between different models and even classes of bicycles. You can ride a mountain, sports or road bike, evaluate the advantages of expensive full-suspension bikes and compare the quality of different manufacturers.
- Most often, bicycles at the rental point are taken by young couples or even small companies for whom it makes no sense to buy bicycles for 1-2 trips per season.
- Especially popular is rental in tourist and cultural cities, where there are always many tourists who want to ride around the city with a breeze and look around. Of course, they can’t drag their bike with them.
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Business Organization Issues
The main difficulties that will have to be faced are finding suitable premises and resolving legal issues. The required minimum conditions include:
- Registration of an individual entrepreneur with a choice of UTII, STS or patent as a taxation system.
- Room rental. For a small rental point, 20 square meters is enough. You can install a pavilion or a mobile trailer.
- Purchase of bicycles. 10-15 pieces are enough (depending on the expected flow). The total acquisition costs are 150 thousand and above. You can save money by buying bikes in the off-season.
- Search and hiring of employees. To work seven days a week, 2 people are enough, with a shift or partially overlapping schedule.
Rental business success secrets
For a business to be truly profitable, several principles of successful organization should be observed. Despite the wonderful nature, in rural areas such an initiative will obviously fail, as well as in a small town. It makes sense to start a bike rental in cities with a population of 50,000 or more. The only exception is the resort villages, where in certain seasons there is an influx of tourists. The rental point should be located in crowded places.
The range of models should cover the widest possible range, and each option should be represented by at least two copies. Mountain and road bikes, women's and children's, must be available, there must be a two-suspension. Only by covering the entire range of models, you can please every client.
Preference should be given only to high-quality models from famous manufacturers. This is also useful from a marketing point of view, because an amateur cyclist will be happy to rent a bike of a well-known brand. Yes, and you can save a lot on repairs, because the main difference between high-quality models is their durability and reliability.
Practice shows that 50 cheap copies fail faster than 15 high-quality ones with the same total cost. If the starting capital is not enough to purchase the required assortment, it is better to buy later than to immediately lean towards budget options.
Underwater rocks
It is important to understand that even the most expensive and high-quality devices also tend to break down, so it is necessary to without fail provide for the balance amount for the purchase of spare parts. It is highly desirable that a master repairman sit right at the rental point (you can combine rental services with repair services at the same time).
The most painful stumbling block in any rental business is the theft of rental items. You can, of course, take documents as collateral, but there is always a chance that they will turn out to be fake. A pledge value comparable to the cost of a leased lot is often practiced, but the disadvantage of this scheme is obvious - not everyone carries such amounts in their pocket. In fact, rented bike theft is extremely rare, so it's best not to scare off customers with exorbitant amounts of deposits.
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Profit calculation
An example of calculation is shown for a town of 300,000, provided that the rental point is opened in a park area. Estimated rental price - 150 rubles per hour. On a weekday you will have about 20 clients. On weekends, the number of customers usually doubles, although this can greatly depend on how isolated the area in which you have opened a rental shop.
Assuming that there are an average of 5-6 bad days per month (rainy, for example), we can calculate that there will be 500 customers in total. The average rental time is 1-2 hours, so the total monthly revenue will be about 100 thousand rubles. By expanding the range of services in the repair and sale of spare parts, as well as related products, you can additionally increase revenue by 1.5-2 times (we do not take this option into account in our calculations).
After deducting all expenses (rent of premises - 5 thousand, salaries - 25-30 thousand, depreciation - 10 thousand, tax deductions - 10 thousand), about 45 thousand rubles of net profit remains. In half a year (this is exactly how long the season lasts), the revenue will amount to 270 thousand, which will fully recoup all investments and expand the bicycle fleet for the next season.
More than a billion bicycles travel around the world. If in Europe a bicycle is considered an environmentally friendly and convenient form of personal transport, then in Russia cycling is associated with an active type of recreation, for which demand has recently been growing both in large and small cities of the country.
If we continue the comparison with Europe, the cycling culture in Russia as a whole is in its infancy, but nevertheless, the idea of opening a bike rental is actively used in large cities, in which there are already entire networks of bike rentals that bring their owners a stable profit in the warm season.
I started with three bicycles, which I delivered around the city to order. Then a team began to be recruited, and we began to work more seriously - to open rental points. Today we already have 6 points located in different parts of the city, and a separate bicycle repair shop.
But opening a bike rental is perfect as a business idea for a small town. If there is not a single bike rental in your city or the existing ones cannot meet demand, or you have looked for a better place - for example, next to a park, shopping center, boulevard, pedestrian street or on the waterfront - bike rental can be a great option to start own business and it does not require large investments.
Moreover, often in small and medium-sized cities the infrastructure for an active and healthy lifestyle is poorly developed. Therefore, your initiative to open a bike rental can be supported by the city authorities, especially if you have access to the city administration.
By the way, opening a bike rental will be an excellent business idea for resort or tourist cities, especially if you can rent a room or area in places with the highest tourist flow. In addition, it is in tourist cities that you can combine bike rental with bike tours or bike rides along tourist routes. To do this, you will need to develop your own tour route and support it with high-quality excursion content, and an agreement with the tourist center or travel agencies of the city will help to put these educational and sports bike rides on stream.
Open a bike rental: where to start?
In order to organize a bike rental, firstly, you need to purchase bicycles. 10-12 bikes are enough to start. Buying used bikes is not worth it - they will wear out much faster and will need repair much more often than new ones. On the other hand, buying professional or even semi-professional mountain bikes also makes no sense - most of your customers will not be able to appreciate the delights of shifting 30 speeds. Therefore, it is worth buying bicycles in the price range from 12 to 15 thousand rubles.
Velomiks bike rental owner
To start, I bought 10 bikes. But during the first month of work, I had to purchase four more, because due to inexperience, about 5 bicycles were stolen from me during the first month. Every next month I bought about 3 more bikes, so by the end of the season I had a bike park of 24 bikes, and the next season I already opened with 40 bikes, including children's ones.
Another important factor for the implementation of a bike rental business idea is the rental of premises or space. Of course, renting a street area will cost less - you will only need to buy an awning or put up a change house. The only problem will be with the decision and coordination of the municipal lease with the local authorities.
In addition, the awning option suggests that you store your bikes elsewhere, such as in your own garage. In this case, you will have to deliver the bikes to the rental place daily and take them back at night to avoid theft.
If you do not have free and free bike storage, you will have to turn to renting a room. However, this option has some disadvantages. In no case should you place a bike rental in yards or on impassable streets - you simply will not be found. You will also have to spend money on a sign - it will attract the passing idle residents of the city. In this regard, the sign must be bright and conspicuous.
Owner of the bicycle rental network "Prokat in Rostov"
When choosing a room for rent, it is not necessary to pay attention to its condition. It can be a garage or even a utility room, but it should be an easy approach and a safe exit. It is better to start in small areas. Ideally, if you can find a rental that allows you to occupy more space as your bike fleet grows.
Also try to negotiate with the landlord on the terms of rent in the "off season", so that you either do not pay rent during the winter months, or pay it at a discount rate. The main thing is that you must be sure that the premises will remain yours, and you can immediately start work with the beginning of the season in the same place.
Cons to be aware of
However, the bike-sharing business idea also has its downsides, which you need to be aware of in advance in order to prepare yourself financially and develop options to prevent unpleasant incidents.
First minus associated with the seasonality of business, which falls on the warm months of the year - from April to September inclusive. With the onset of the first cold weather, the desire to ride with the breeze disappears without a trace. The business that brought stable income, you have to turn off or re-profile - organizing a rental point for skis, skates and tubing, if the location allows it.
Another factor One thing that can ruin the performance of the bike-sharing business is the weather, which is unpredictable and changeable, especially in the central part of the country. Neither heat nor rain is suitable for a comfortable bike ride. If such weather falls on the weekend - the peaks of activity in the bike-sharing business - the revenue will decrease significantly.
Third minus is the need for bike repair. Active use of bicycles, unfortunately, leads to their wear and tear. Careless use by customers, who usually do not care about maintaining the performance and durability of a rented two-wheeled friend, cannot be ruled out. In this case, you will have to look for a repairman who you can contact if the condition of your bike fleet deteriorates, or learn the science of bicycle repair yourself. On the other hand, having a professional repairman on staff, you can add an additional service to the bike rental price list and take the citizens' personal bikes for repairs.
Another significant downside this business are scammers and thieves.
Moreover, the danger of theft comes from both customers and employees. The first ones rent a bike, leaving in exchange documents that do not belong to them, or an insignificant cash deposit, and then disappear with your bike, the second ones hide the real income for the day. In the first case, even drawing up a rental agreement does not give real guarantees of the return of the bike - both the address and the contact phone number with the name given by the thief may be fake. The only way out is to carefully check the conformity of the photos on the documents with the real person. In the case of employees, you will have to think over a system of either control or motivation for honest work.
In fact, just like any other business, it requires building a business model, analyzing the market and the possibilities of the future owner of a bike rental. Without this, it is difficult to say how profitable your bike rental will be, because many factors will affect the profitability of the business.
For example, you opened a bike rental with 10 bikes. In the first season, you received a normal profit, recaptured all investments, etc. But in the second season, the bicycles began to break down, and in the third, they became completely non-working. Accordingly, the profit first decreased, and after that you began to work at a loss.
Therefore, it is simply necessary to calculate everything in detail and, of course, form a fund for the winter or for repairs, which in the future will help you work without losses and become an airbag. On average, to form a normal fund, you need to set aside 30% of net profit.
In the warm season, both in megacities and in small towns, we see a fairly large number of cyclists. On this type of transport, you can very quickly move around the city, no traffic jams will stop you. In addition to convenience, the bike also has a number of other advantages. Everyone knows about the health benefits of cycling. Children and adults love to ride this type of transport, so the bike rental business can be great. profitable idea earnings.
We will talk about how to open a bike rental and how much you can earn from it in our article today.
Bicycle rental business plan
Any business idea requires a gradual and competent implementation. Therefore, first of all, you should draw up a detailed bike rental business plan. In this document, it is necessary to identify such important points as profitability, determine the demand for the service, competition, calculate the payback period and profit from the business.
Advantages and disadvantages of a bike rental business
- High demand. Bicycle rental service is popular all over the world. This type of transport is in great demand due to a number of its important advantages. You can ride a bike in the park or go to the other end of the city on business. This transport is mobile, therefore it is relevant for large cities, where traffic jams often occur.
- Small investment. Organization of bike rental is a business that does not require large financial investments. Therefore, both a novice entrepreneur (student, unemployed) and an experienced businessman (an excellent financial investment of the free part of the capital) can organize a business in this area.
- Competition. Accordingly, the high demand for the service gives rise to solid competition. Therefore, you will have to work hard to achieve success in your chosen field of activity.
- Seasonality. Bicycle rental business is a seasonal type of income. But such a minus, significant at first glance, should not stop you. Believe me, with a competent approach, it is quite possible to earn a substantial amount of money in the spring-autumn.
Business registration
Each type of activity is subject to mandatory legal registration with the relevant authorities. For novice businessmen, it is best to stop at individual entrepreneurship or establish a limited liability company. Making an IP is much easier than an LLC, so if you are planning 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?
To organize a bike rental, you must purchase these vehicles. The demand for the service, and, accordingly, your profit will directly depend on the range and condition of bicycles.
At the initial stages, you should not 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. Thus, sports models, mountain bikes, off-road bikes, and children's bikes should be purchased. By covering as much 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 customers are children and people who want to relax, ride a bike in the park. Therefore, the acquisition of expensive, modern models is a waste of money. Give preference to used models from abroad, they are much better than domestic bicycles and at a much cheaper price.
Choose a rental location
The flow of customers who want to use the service depends on the correct choice of the rental place. Therefore, if you want to recoup all investments in a short time and get a good income, pay special attention to the location of the bike rental point.
Choose places with high traffic. Bicycle rental can be opened in the central part of the city, for example, in a park, near attractions, entertainment centers. It is very important that potential customers distinguish you from afar, so a bright sign will not be superfluous.
Bicycle storage
To store vehicles, you will need to rent a small enclosed space. It is desirable that the place of storage and rental be nearby in order to avoid the constant costs of transporting bicycles.
An ordinary garage is suitable for storing vehicles. It can be rented or purchased if you have the necessary funds.
How to arrange bike rental: money back guarantees
Vehicle rental is a popular service, but it can hardly be called completely safe. To keep vehicles safe and sound, every possible security measure should be taken.
An agreement should be concluded with a client who rents a bicycle, which will provide for all non-standard situations, the conditions for renting and returning a bicycle. The contract should include such important points as financial compensation in the event of a bike breakdown, as well as a fine for late return of the vehicle.
In addition to the contract, the client must provide you with a copy of his passport, name the address of residence and contact number for communication.
How much is bike rental?
You, as the owner of a bike rental point, have the right to independently determine the prices for the service. But I recommend that you competently treat such an important nuance. In this field of activity, the competition is quite strong, so unreasonable prices will only scare away potential customers. In order to understand how much bike rental costs, you should monitor the prices for a similar service in your region.
Costs and profits
- Purchase of bicycles. The approximate cost of one is about 150-200 dollars. You need to buy, for starters, at least 10 pieces. In total, this is 1500-2000 dollars;
- Garage rental. The rental price will depend on the area and location;
- Salary in case you hire employees to work at the rental. Naturally, you can save money and at first work on your own.
Profit
Your income will depend on the demand for the service and, accordingly, its price. If the competition is strong, then you should not count on quick profits, but still you do not need to despair. An advantageous place, a competent advertising campaign, over time will certainly lead to success and turn your business into a profitable business.
It is quite possible to make good money on bicycle rental if you open several points in different parts of the city. It all depends solely on your entrepreneurial talent.
Additional income
In addition to providing a bicycle rental service, you can open a bicycle repair shop nearby. Hire an intelligent master and you are guaranteed a decent additional income.
Bicycle accessories. To ride a bike safely, you must not only follow the rules of the road, but also wear protective equipment. Therefore, in addition to renting bicycles, you can offer your customers to additionally rent knee pads and helmets for safe city driving.
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* Calculations use average data for Russia
1. PROJECT SUMMARY
The goal of the project is to organize a bicycle rental office in Rostov-on-Don. Services are aimed primarily at young people (men and women) aged 15-30, as well as families with children. It is planned to open two rental points - in the city center and in the recreational area (see Sections 2, 3 of this business plan).
The prerequisites for the successful implementation of the project are the popularization of cycling as a means of urban recreation and the improvement of many areas of the city, including its central part. The project does not require significant capital investments, the project initiator independently performs most of the functions associated with the implementation of the project. Project risks are low. The investment attractiveness of the project is confirmed by the integral performance indicators given in Table. 1.
Table 1. Integral performance indicators
2. COMPANY AND INDUSTRY DESCRIPTION
The project involves the organization of a small business entity in the city of Rostov-on-Don, the main service of which will be the provision of bicycles for rent to the population for up to a day. Rostov-on-Don is a city with a population of 1.1 million people, the capital of the Southern Federal District and the administrative center of the Rostov Region. The city concentrates objects of culture and art, educational institutions, historical monuments - all this attracts visitors pursuing various goals. In the central part of the city there is an extended pedestrian zone - st. Pushkinskaya, which is a well-maintained boulevard with cafes, restaurants and other infrastructure. Thus, arranging a bike rental here seems to be the most expedient solution. The rental point is a branded mobile reception desk, as well as a bike rack designed for 15 units. The second rental point is located in the Pervomaisky district of the city, directly at the entrance to the Aviators' Park, which has been a recreational area equipped for cycling since 2014.
Storage areas are provided for racks and bicycles. In the area of st. A part of the basement (20 m 2) of one of the buildings of the federal university is rented to Pushkinskaya, about which a lease agreement was concluded with the leadership of the university. Within 300 m from the entrance to the Aviators' Park, a metal garage is rented from a private person, located on the territory of a garage cooperative; garage area - 22 m 2.
To attract the attention of potential tenants, the racks are designed in a modern catchy design. A professional designer is involved in its development. The bike park consists exclusively of new comfortable city bikes, 60% of which are men's (most women do not experience any inconvenience when riding a men's bike), 30% are women's, 10% are children's.
As for the market for such services as a whole, in recent years it has been actively gaining momentum. Young people coming to the city center from sleeping areas are more and more willing to rent bicycles for walking. Bicycles are also increasingly used for family recreation.
With the growing interest in cycling, there is a trend in the market to buy your own bikes. However, compared to using your own bike, bike rental has a number of advantages, such as low cost of use, no need for ongoing maintenance, repair and storage, etc. In addition, even with his own bicycle, a person with average physical fitness is unlikely to want to travel 10-15 km one way in order to drive along the central boulevard of the city. In most cases, urban public transport is used for this, and then, on the spot, a bicycle is rented.
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There are currently 18 active bicycle rental offices in the city, which do not cover the need of citizens for bicycles provided for rent. Of these, 12 are located directly within the city; the rest are in suburban recreational areas. In close proximity to st. There are 7 bike rentals on Pushkinskaya Street, officially none from the Aviator Park, but at the entrance there are rental points belonging to bureaus located in the city center.
3. DESCRIPTION OF SERVICES
The company provides bicycle rental services for a period of one hour to several days. Bicycle rental and delivery is carried out at the reception desks located on the street. Pushkinskaya and at the entrance to the park of aviators. The administrator draws up a rental agreement, a bicycle is issued on the security of a passport or driver's license and an amount of 3,000 rubles. Upon the return of the bike, the deposit is returned to the tenant, provided that the bike is not damaged. If any are found, the amount of the repair is deducted from the security deposit. The tenant gets acquainted with the price list for the most common damages at the stage of registration of the lease.
In fact, the company provides only two types of services: renting an adult bike and renting a children's bike. The cost of an hourly rental of an adult bicycle is 130 rubles, for a child - 100 rubles. When renting for a day / night (12 hours) or a day (24 hours), additional discounts are provided. Given that at least 80% of renters prefer to rent bikes for no more than 3-4 hours, discounts do not apply in most cases. In Table. 2 shows the basic data on the services of the enterprise.
Table 2. Nomenclature of enterprise services
Complete with a bicycle, at the request of the tenant, a full set of protective equipment is issued. For non-compliance with the deadline for returning the bike specified in the contract, the renter pays its cost according to the price list rounded up to the full hour, as well as a penalty in the amount of 10% of the delay.
4. SALES AND MARKETING
The target audience of the project is men and women aged 15-30, as well as married couples with children. Cycling in the city center is mostly preferred by young people - single young people in companies, as well as young childless couples. Walks in the Aviators' Park are mostly preferred by families with children. Based on this, the formation of a transport fleet is being carried out: at a point on the street. Pushkinskaya is only 1 children's bike, the other 3 - in the park Aviators.
Sales of the company's services are passive. To attract the attention of potential customers, a catchy design of reception desks, developed by a professional designer in a modern urban style, is used. Administrators are polite and behave to the maximum extent correctly and attentively towards customers, which is an advantage of the enterprise. The main competitive advantage lies in the most favorable territorial location of rental points.
The condition of the bike park is also of great importance. Each of them runs weekly Maintenance and sink. In case of heavy pollution - more often, if necessary.
The price segment in which the company is positioned is medium. The price level is on average at the level of competitors. The difference between the company and most of its competitors is that all bicycles provided for rent belong to the same class - city pleasure bikes. This allows you to unify the pricing policy.
5. PRODUCTION PLAN
The fixed assets of the enterprise primarily include bicycles. They are purchased in quantities of 30 pieces from a supplier in Moscow. The criterion for choosing is the brand of the bike, its model - they should be as comfortable as possible for a long ride around the city. Also, the selection criterion is the price.
Bicycle storage is carried out in rented premises, in the immediate vicinity of the points of sale. The area of the premises is 20 and 22 m 2 (see Section 2 of this business plan). In the same premises, the administrator's desks are also stored. Racks are made folding for convenience of their transportation and storage. A professional designer is involved in the design of the racks.
Demand for bike rental services is certainly highly seasonal, peaking in late spring and early autumn. In summer, demand occurs mainly in cool evenings. On average, the project profitability calculation assumes an average use of 3 hours per day for each bike.
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In the off-season, bicycles are stored in the same premises as in summer. Before this, conservation is carried out - cleaning and lubrication of all nodes, loosening the cables, installing bicycles on special stands. Before the season, re-preservation is carried out - repeated maintenance, tightening of nodes, etc. Maintenance is carried out by an invited qualified specialist.
Table 3. Production plan
6. ORGANIZATIONAL PLAN
The initiator of the project acts as a leader, as well as one of the administrators. Accounting is outsourced. The functions of an administrator can be performed by an employee without special qualifications. However, given that bikeshare image is essential to re-engaging customers, administrators need to be neat, friendly, and efficient in their duties. The age of administrators is 18-30 years old. Work schedule is shift, 2/2, from 10.00 to 22.00. In addition, administrators are seasonal workers hired from April to October.
Table 4 staffing and payroll
|
Position |
Salary, rub. |
Quantity, pers. |
FOT, rub. |
|
|
|
||||
|
Administrator outlet |
||||
|
Total: |
RUB 66,000.00 |
|||
|
Social Security contributions: |
RUB 19,800.00 |
|||
|
Total with deductions: |
RUB 85,800.00 |
|||
7. FINANCIAL PLAN
The financial plan is calculated for a period of 5 years, taking into account all costs, income, tax and loan payments, etc. Investment costs for the project amount to 730,000 rubles, of which 600,000 are the project initiator's own funds. The bulk of the funds are spent on the purchase of bicycles, as well as on the development and promotion of the company's website (Table 5). The lack of funds is covered by a bank loan for a period of 36 months at a rate of 18% per annum.
Table 5. Investment costs
|
NAME |
AMOUNT, rub. |
|
|
Equipment |
||
|
reception desk |
||
|
Bicycle rack |
||
|
Bicycles |
||
|
Uniform for administrators |
||
|
Obtaining licenses and permits |
||
| working capital | ||
|
Total: |
730 000 ₽ |
|
|
Own funds: |
RUB 600,000.00 |
|
|
Required borrowings: |
130 000 ₽ |
|
|
Bid: |
18,00% |
|
|
Term, months: |
||
Conventionally, there are no variable costs for the project, since it is quite difficult to take into account the costs for each hour of renting a bike. For this reason, all costs are fixed. Depreciation takes into account the cost of fixed assets and is calculated on a straight-line basis over 60 months.
Table 6. Fixed costs
A detailed financial plan is provided in Appendix 1 of this business plan.
8. PERFORMANCE EVALUATION
The effectiveness of the project and its investment attractiveness are evaluated on the basis of the calculated financial plan according to integral performance indicators, such as net present value (NPV), profitability index (PI), internal rate of return (IRR), etc. (Table 1)
To account for the time value of money, a discount rate is applied, set according to the rate of inflation, possible risks etc. For this project, it is taken at the level of 5%, which is due to relatively low risks, as well as the fact that the service is not innovative, but is well known to the market, the market has a stable growth trend, and the bulk of investments are made in tangible assets, which are a guarantee of return on investment. funds.
The payback period of the project is 17 months. Net profit for the fifth year of the project is 766 thousand rubles, which is acceptable for small businesses with self-employment. The NPV of the project significantly exceeds the investment costs, which indicates the effectiveness of the project. IRR exceeds the discount rate, and PI > 1 - these values also indicate the investment attractiveness of this project.
9. RISKS AND WARRANTY
To take into account all the risks associated with the project, a SWOT analysis was carried out, taking into account all micro- and macroeconomic factors.
Table 7. SWOT analysis of the project
|
Low level of investment Good location of points of sale A systematic approach to the design of points and recruitment New fleet of high quality bikes High quality website to attract additional customers |
Relatively small bike fleet Price policy higher than competitors The current competitive environment |
|
Park expansion over time Attracting repeat customers through loyalty programs Ensuring loyalty through the high quality of the fleet |
Failure to fulfill the sales plan Adverse weather conditions Dumping competitors The emergence of new competitors in the immediate vicinity |
10. APPS
APPENDIX 1
Financial plan
Denis Miroshnichenko
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