Thinking about opening up a bike shop with a friend. What area do you think needs a

[slownotfast]

bike shop? I'm looking to open a bike shop since I have been thinking about owning a biz after I finish college this March of 08. I am a computer science major but my friend/ business partner is a marketing and business admin major. I'm good with repairing bikes and am mainly into road bikes and he is knowledgeable about how to run a business and has lots of experience with mountain bikes. I'm in the LA area and we are thinking about a shop possibly in the east since rent will be much much cheaper....somewhere like Riverside but definately not in an area as far out as Palm Springs. Which area do you think would work best? We're researching lots of areas but it would be nice to have input from cyclists in socal.

[Jeff262]

Getting input from this forum is a good idea, but I would would put a very small value on it when it comes to something as serious as starting a business. There is lots of data out there go find it and put it to use.

I could think of dozens of reasons to tell you why it would be a bad idea, but my attitude has always been to go for it, but go for it smart and methodically becuase that's what makes the difference. You need to first think about being a business person and second about the bike part.

[maximan1]

Buena Park needs more bike shops

[nesdog]

I would look to purchasing an existing shop before opening something new. Then you have some potential cash flow to start. Remember if you need to stock bikes on the floor, you've got to pay for those long before you sell 'em. Takes a lot of cash to open a business. And a business plan is a must. Not to mention you should have a partnership agreement, all done legal like, as well.

Not to burst the bubble or dream, but.....

Sheldon

[summoner12]

There was a shop for sale on eBay, I think the purchasing price was like 250 turnkey.

Try eBay.

[bitingduck]

I've seen a few successful shops for sale in the past year or so-- it's a good way to get started. I think they sell for something like one year's revenues plus the value of the merchandise in stock.

[WhiteCarbonDude]

Don't go to Fullerton, man there was this new bike shop that opened the end of last year, The Bicycle Lane. It is already closed. Every time I went in there it was deadsville.

I think you should open a fixed/SS oriented shop, that seems to be growing by leaps and bounds.

[dddave]

I think you should open a fixed/SS oriented shop, that seems to be growing by leaps and bounds.

maybe not specifically, but it should definitely be a part of it.

[Garfield Cat]

I assume both of your parents will be involved? Do they have their own CPA's? You might run by your thoughts with them first.

Is your business admin/marketing major friend...experienced? Has any of you worked in a position of, say a store manager of a retail store? Sometimes its good to learn as an employee and then start up a new business or buy a business.

[Lullapalooza]

Anthony's Cyclery is located in Riverside very close to UCR (where I go to school). They seem primarily to cater to the students, and they've developed quite a name for themselves (the school always mentions them when referring to a bike shop in any kind of brochure or anything).

But, I still think there is a HUGE untapped bike market in the UCR community that has not been realized.

First off, I don't like the selection of bicycles at Anthony's. They are ridiculously expensive Bianchi bikes for the most part. If you opened up a bike shop with more affordable entry level Treks and Schwinn's, I think you could be very successful. College students don't have a lot of money to throw away at expensive road bikes, especially when they are just looking to get around campus. So I would definitely consider this.

The area around the university is one of the fastest developing areas in the country. The University of California is looking to increase the population of students at least 3 fold over the next 3 or 4 years on the Riverside campus. Plus, with the development of the medical school in the works, local businesses are going to have a great opportunity to expand.

The area by UCR you should look at is called University Village. It's where most of the college kids hang out, with several coffee shops, fast food restaurants, a movie theater, music stores etc. I think that would prime real estate to own a bike shop. And it's at least half the distance to Anthony's.

If you're looking to market bikes and bike repair primarily to bicycle enthusiasts who will spend a lot on high end components and what not, you won't do to well because Anthony's has already established a pretty solid name for themselves. They are pretty experienced and well known among hardcore cycling enthusiasts. BUT, if you are looking to making a lot of money, you still have the chance to do so by marketing bikes to college students. You'd be making a lot of money from primarily selling bikes and components in higher volumes. Plus, more bikes you sell, means more money you'll get from repairs.

I hope this helps somewhat! I'm a college student, so I can speak from that point of view. Also, you should definitely do something about selling used bikes if you open a bike shop. Some people just want a bike for transportation purposes, not for recreational purposes, in which case 3,000 bikes are pretty ridiculous.

[Jeff262]

Not to hijack the thread and nothing against Anthony's but anyone in Riverside that wants a high end Road bike usually ends up in OC or San Diego with some of the local business going to Redlands (IMO the best shop in the area and deserving of your hard earned $$s) or Riverside Cyclery...Don's and Cycletek thrown in a little also.

I agree that targeting students (and faculty) is likely a good idea.

[ovoleg]

Don't go to Fullerton, man there was this new bike shop that opened the end of last year, The Bicycle Lane. It is already closed. Every time I went in there it was deadsville.

I think you should open a fixed/SS oriented shop, that seems to be growing by leaps and bounds.

Fullerton has lots of car repair shops! I was there for a housewarming last weekend

Off Ash and and some other street(i forget the name), I took the 91 exit and it was like the 3rd one.

driving 101 -> 5 is so much traffic jeeeeeeeeezzzzzzzzzzzzz

[Biker2004]

But Garden Grove needs a few more ALSO!!!

;)

[roadfix]

Targeting students is always a good idea. My close to campus bike shop would also be part barber/salon and coffee bar.....and perhaps income tax prep during tax season. Rent needs to be paid regardless.....thus the peripheral businesses... :D

[PlanetU]

I have several friends in the bicycling retail business that would love to get OUT. When you run a bike shop, you're pretty much buying yourself a full-time+ job. Most good shops are open 6-7 days a week. The shop I know about that's for sale is in Orange County. E me privately if you're interested in the owner's contact information.

[Biker2004]

I wonder if you're talking about one in particular...is it Big Wheel in Anaheim (Euclid near Ball)???

[jslopez]

In my very not so expert opinion, there are chain bike shops and there are "small owner" bike shops. Chain bike shops make their money via whole sale prices (would not hurt if they had good service and people). While the smaller ones really need to find a niche in order to entice a clientelle.

I mean, I'm not a rich guy, so I will find it hard to justify, paying 2-30% more just because I know/like the owner of a certain bike shop. I bought my good bike from a now defunct bike shop. Reason one, the brand was new at the time so not a lot of people had them. Two, they fit the bike for me (not just eyeball) and they swapped around parts to make the bike fit vs going with an off the shelf. Three, they offered lifetime free service. My bike budget was maybe 2/3 of what I ended spending but they made it "worth it" to get a bike.

Sadly they were in a rather posh neighborhood and I think rent/overhead was simply too much.

Another bike shop near me fully supports a local cycling club. Unfortunately stock is limited, prices are at retail, and the brands they carry don't really entice me. I really like them though but it all goes back to like vs the customer's needs.

[maximan1]

Don't go to Fullerton, man there was this new bike shop that opened the end of last year, The Bicycle Lane. It is already closed. Every time I went in there it was deadsville.

I think you should open a fixed/SS oriented shop, that seems to be growing by leaps and bounds.

I had an internship there. That fat dude was gonna buy it wasn't he? Too bad it closed.