How to Write a Bike Shop Business Plan: Complete Guide

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your bike shop, you will first need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in the business plan of your bike shop. Use this template to create a complete, clear and solid business plan that get you funded.

For more information on bike shops, make sure to check our guides below: How Much Does It Cost To Open a Bike Shop? How to Open a Bike Shop Business in 9 Steps? How To Build a Financial Model For a Bike Shop

1. Bike Shop Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire business plan below.

Why do you need a business plan for a bike shop?

The purpose of a business plan is to secure funding through one of the following channels:

• Obtain bank financing or secure a loan from other lenders (such as a SBA loan)
• Obtain private investments from investment funds, angel investors, etc.
• Obtain a public or a private grant

How to write your bike shop’s executive summary?

Provide a precise and high-level summary of every section that you have included in the business plan of your bike shop. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately.

Also make sure that the executive summary doesn’t exceed 2 pages in total: it’s supposed to be a summary for investors and lenders who don’t have time to scroll through 40-50 pages, so keep it short and brief.

The executive summary usually consists of 5 major sub-sections:

• Business overview: describe your business in detail, providing information about the business model (franchise vs. independent store) you intend to use and all the products (bikes, accessories, sportswear, etc.) and services (rental, repair, etc.) customers can find in your shop

• Market analysis: the market analysis segment will contain an overview of the expected market size, target audience, and demography. Also provide here a quick overview of your competitors, your strengths & weaknesses (think SWOT analysis) and how your bike shop differ vs. competition

• People: first, introduce your bike shop’s management. Provide a brief (no more than a couple of sentences each) of the experience and track record of the team. Also, speak about your hiring plans: in other words, how you intend to run the business (what are the different teams and how many employees will you hire?)

• Financial plan: how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? You can also include here a chart with your key financials (revenue, gross profit, net profit)

• Funding ask: what loan/investment/grant are you seeking? How much do you need? How long will this last?

Bike Shop Financial Model

Download an expert-built 5-year Excel financial model for your business plan