Southern California - Lets put our money together and buy this bike shop!

http://www.bikeforums.net/showthread.php?t=269462

Would'nt it be cool to own a SoCal forums bike shop?!!. Maybe business savvy people like Fixer can help us run it!:D I'll put up first 20Gs.:)

I don't have any money. Will you just hire me to work the cash register for my share in the business? :D

I don't have any money. Will you just hire me to work the cash register for my share in the business? :D

In a heartbeat! We'll double the business in no time with you in front!:)

I'll be in charge of the barber's chair, the expresso machine/juice bar, and the fixed gear department at the back of the shop. :D

In a heartbeat! We'll double the business in no time with you in front!:)
:love: How sweet are you. Okay, sign me up. :D

I'll build custom lugged frames in a small rathole of a shop in the back.
It'll always smell of brazing flux, paint, cheap chianti and linguini sauce.

I'll build custom lugged frames in a small rathole of a shop in the back.
It'll always smell of brazing flux, paint, cheap chianti and linguini sauce.

Hmmm...maybe I'll work in the back, sweeping the floors and such. I love cheap Chianti!

Hmmm...maybe I'll work in the back, sweeping the floors and such. I love cheap Chianti!

I'll teach you to file lugs. Brazing is reserved for Il Maestro.

hmmm... I can handle the finances and marketing...

It would be cool, but a lot of work to keep the business profitable. If the shop is big enough, it might be better to split it in half and sell golf equipment. That's where the money is at. Bicycles is pretty much a small niche business...plus you have the chain stores as competition for the bread-and-butter entry bikes. Don't forget you have to pay rent/lease plus all the various business and tax licences. Overhead is something you have to keep a tight financial grip on...otherwise you would be better off selling stuff/services from your garage or on eBay. Good customer service, knowing your product lines, willingness to special order bikes or parts the customer wants, and individual attention to prospective customers is where the small business excells over the chain stores.

No mention if any of the stock is on assignment or how old the items are. Excessive or slow moving stock is a killer to your bottom line. Usually there is a co-op, in this case, between bike shops to place a combined order large enough to realise enough savings to stay competitive. And you only order enough for the current demand...with new stuff coming out all the time, you don't want to get stuck with yesterday's fad. Know more than a few that buy items on sale from the larger chains because it's cheaper than what their wholesale prices are. Bartering between shops is fairly common IF you establish a good working relationship...just don't forget any favors you owe if you didn't make any equivelent exchange.

What about keeping the existing employees? Or would you have to cut back/layoff in order to pay the monthly loan note and rent?

Lot of things you have to consider before going into business. One of the worst is if there are several partners and sooner or later there might be an argument how the business should be run. Everybody has to be on the same page with a solid long term business plan...otherwise you'll end up losing your partners (which may be your friends) or having to sell out. There are more than a few that never see or take a vacation...so that's something else you need to take into account.

Way to spoil a dream with all that silly "reality" and "profit" talk...

Way to spoil a dream with all that silly "reality" and "profit" talk...
+1 Party Pooper! :( ;)

Does that mean no hamburger stands inside ?

i'm sure you've heard the old saying, "if you want to make a million dollars selling bicycles, start with 10 million, in no time you'll have a million".

Step 1, acquire bicycle shop
Step 3, Profit

I'll install the pole and the lights and we can transform it into a "club" at night . . . :p

The check is in the mail

I'll install the pole and the lights and we can transform it into a "club" at night . . . :p

A pole ??? hmmmmmmm ( extra money :rolleyes: )

I call dibs on the store manager position. Nobody else called it yet :D

dibs on new bike tester!!

Can I work too?

Can I work too?
What position would you like?

Big Cheese (doesn't make any money because it's reinvested in inventory, but he gets to act important)
Minimum wage shop kid who does nothing but sweep and clean the toilet
Head Mechanic (makes a little more than minimum wage)
Head Salesperson (makes a little more than minimum wage, plus commission)
Bike Salesperson (minimum wage plus commission)
Minimum wage shop kid with seniority who changes tubes and goes for food runs
Accountant (Calculates how much money the shop is losing)
Groupie racer who doesn't really work there but helps out hoping to get discounts
Apprentice Mechanic (changes tubes when shop kid is gone, real repairs when Head Mechanic is gone)

Head Mechanic or Big Cheese :)

Plus one to RonJon10. Now if somehow we could put an end to this internet buying thing AND close down all the Performance shops ( admit it...you've bought SOMETHING there). WE might with hard work and by paying no wages be able to break even. Unless by some chance we get the Lance phenomena times 10 the LBS is an anachronism.

I want to be in charge of installing dork disks on all the carbon wheelsets.

I was the Groupie Racer in highschool. I'll take that position again, only I'm much older, fatter and slower now.

I made up my mind. I'll be a big cheese head mechanic :):D

I'll be the accountant. because when the store runs out of money I will be the only one paid...

:D

They already doubled the price. Yesterday when it first went up it was $55,000 plus inventory.:rolleyes:

I'll be the accountant. because when the store runs out of money I will be the only one paid...

:DIn that case, I'll be the bankrupt attorney....:p

Ill be the Kegorator operator and tester.:D

There's two ways to look at this. It could be a "for profit" or it could be "not for Profit". In the latter, it would be like a 501(c)(3) organization, recoginized by the IRS as a non profit. Its main purpose would be "charitable and educational". It would still sell stuff and the pressure to sell a particular line of framesets, etc. would not be there.

Its main revenue stream would have to be from grants from other non profits just like when you hear about the big foundations giving money to support National Public Radio or Public Television.

The educational aspect would be to educate the public about bicycle safety and the sport of bicycle riding and the health benefits of this type of exercise. The charitable purpose would be to offer things at cost plus to cover expenses. A parallel would be like the local Boys and Girls Club or the local Boxing Club or the local Little League. These are all 501(c)(3) organizations.

The former method is "for profit". I see that bike equipment is pretty much a commodity, with just some variations. Therefore the big thing is "service". This is in the mechanics and the bike fitting. Also it crosses over into the human performance thing which includes health care disciplines. Strategic partnering with existing bike retailers who currently own rights to sell certain frames like Felt, Cannondale, Specialized, Trek, Giant, Cervelo, Scott, etc. can participate in the commodity of equipment aspect. That way this new shop will not have to spend significant money on inventory and manufacturer's whims.

Geez. I want in. I hate sales but am good at customer service. I know a lot about insurance, sound equipment, painting, skateboards, and theater. Hey, maybe we could make it part skateboard shop! Those things are selling like hotcakes right now.

Heck, I'll do anything to get out of the job I'm in right now. Name it.

There's two ways to look at this. It could be a "for profit" or it could be "not for Profit". In the latter, it would be like a 501(c)(3) organization, recoginized by the IRS as a non profit. Its main purpose would be "charitable and educational". It would still sell stuff and the pressure to sell a particular line of framesets, etc. would not be there.

Its main revenue stream would have to be from grants from other non profits just like when you hear about the big foundations giving money to support National Public Radio or Public Television.

The educational aspect would be to educate the public about bicycle safety and the sport of bicycle riding and the health benefits of this type of exercise. The charitable purpose would be to offer things at cost plus to cover expenses. A parallel would be like the local Boys and Girls Club or the local Boxing Club or the local Little League. These are all 501(c)(3) organizations.

For some reason, that actually seems like a really nice idea. We could form and coach a junior and/or grassroots racing team, host events for organizations (boys and girls, boy scouts, girl scouts, etc.) hold diy and safety clinics, and earmark any product sales to fund such programs.

Condo... or bike shop..... could always work my butt off to make money for a condo later......... shoot maybe get a house instead of a condo.... dreams... what this country is alllllll about.

Well, it looks like we've filled all the positions at the new bike shop.:D Problem is we're still little bit short in the money department to start one.:rolleyes: :D

So exactly how much are we short?

So exactly how much are we short?

All of it? :D :D

So what benefits does the person(s) financing the operation get? The cost is only, oh, several years' worth of my stipend. :p

I will toss in a dollar or two if I can be the non resident taco sauce consultant.

All of it? :D :D

minus my 20Gs.:D

So what benefits does the person(s) financing the operation get? The cost is only, oh, several years' worth of my stipend. :pHey, no absentee partnership allowed!...:p :D

Hey, no absentee partnership allowed!...:p :D
Who said anything about "absentee"? :mad: With so much invested ($85k still needed?) I'd drop by daily to check on things (ie take the cute cash register girl to lunch ;) ) and every Friday to get Vivian's derailleurs fine tuned for the weekend's riding. And every Monday to test ride some cool toy. :D

Who said anything about "absentee"? :mad: With so much invested ($85k still needed?) I'd drop by daily to check on things (ie take the cute cash register girl to lunch ;) ) and every Friday to get Vivian's derailleurs fine tuned for the weekend's riding. And every Monday to test ride some cool toy. :D

You would have to assign the cash register girl a number rather than a letter. Otherwise things will get hopelessly confused.

Wait... I thought M.E. was signed up as cash register girl. How many cash registers does one bike shop need?

If we use RFID tags that directly debit the customers account then we can easily have just one register. Then ME would have time to work directly with customers (the more personalized the service, the better!) and we could increase our sales by having two female TC winners at our shop...

i'll chip in if we can have strippers and a batting cage.

I do not have one entreprenial bone in my body. But, when it comes to bike shops, I think I would like to grow one. Been told a bottom line bike shop cost at least 100 K.

Raising $100k to start a shop isn't the hard part. (It's not trivial, but it's far easier than what follows.) Running it profitably... there's the rub. Never mind profitably enough to pay oneself a reasonable salary. :eek:

that's why we need the strippers. imagine getting a pro fitting. hooter's style.