start with 2 million. Wait, we haven't said that yet.

Identify what products or services other local shops are not offering. In my area, it was high-end servicing and a dedicated workshop which did more than just assemble bikes for the sales floor.

Identify what local riders like and dislike about bike shops. Some things will be unavoidable, like pricing in many cases, but some gripes customers have you can actually address. In my area, it was unwillingness to install or work on parts bought online, an arrogant sales-based attitude from many shop staff, and a lack of suspension servicing or other specialist (eg tandem/recumbent/IGH/wheel building/etc) work.

Then, do your maths and boring business-y stuff. See if you can address the shortfalls in your market, and stand out from the pack. You may have to think outside of the box and be prepared to re-invent an existing business.

My business partner and I started our repair shop 2 years ago, with almost no capital, and have yielded a reasonable salary for each of us in both of those 2 years. Nothing special, just work hard, be nice to people, and be flexible.

YMMV, maybe your area is over-saturated and a few places have to close.

- Joel