Starting a kid's cycle store business.
Start your own successful kid’s cycle store business. Learn how to launch a profitable small retail chain, find top suppliers, and grow your business.
In this blog article, you will understand how a chain of showrooms (cycle store business) can be started by investing around Rs 20 lakhs. Keep reading.
Starting a kid’s cycle store business can be a profitable and rewarding venture in India, with a growing market for children’s bicycles. With the increasing popularity of cycling as a recreational activity, there is a growing demand for high-quality, affordable kid’s cycles. In this article, we will explore the market for kid’s cycles in India, discuss whether a chain of cycle store business is profitable, and provide a step-by-step guide on how to start a cycle shop business. We will also provide tips on how to promote a cycle showroom in a locality and provide a financial roadmap for the next five years.
Frequently asked questions.
How profitable is a bike shop?
The profitability of a bicycle shop can vary depending on several factors such as location, target market, competition, and overall operating costs. A well-run and efficiently managed shop that offers high-quality products and services in a competitive market can be profitable. However, the level of profitability can be impacted by factors such as seasonal changes in demand, economic conditions, and increased competition. It is important for the owner to regularly evaluate their financial performance and make adjustments as needed to maintain and improve profitability. In general the gross profit margin varies from 30% to 40%.
What business can I do with bicycle?
The most unique one is, you can open a kids bicycle showroom chain and provide a valuable service to families in your area.
How to open a cycle shop?
Conduct market research: Determine the demand for kids bicycles in your area and identify your target market.
Secure financing: Consider options for financing such as personal savings, loans, or investors.
Choose a location: Select a location for your store that is easily accessible and visible to potential customers.
Purchase inventory: Choose a variety of kids bicycles from reputable suppliers, taking into account different sizes, styles, and price points.
Design the showroom: Create an attractive and inviting showroom, including displays, signage, and a point-of-sale system.
Hire staff: Recruit and train employees to assist with sales, customer service, and bicycle maintenance.
Market your store: Develop a marketing plan to promote your store and attract customers, including online and offline advertising, community events, and social media.
Launch your store: Hold a grand opening event to launch your store and generate excitement in the community.
Kid's Cycle Market in India.
The market for children’s bicycles in India is growing, driven by an increasing focus on fitness and a desire to provide children with an active, healthy lifestyle. With more and more families choosing to live in urban areas, there is a growing demand for quality bicycles that are both safe and affordable. Additionally, with the rise of eco-consciousness, many families are seeking alternative modes of transportation for their children.
Is Bicycle Business Profitable?
Yes, the cycle store business can be highly profitable, particularly for those who focus on selling high-quality, affordable kid’s cycles. With the growing popularity of cycling, there is a growing demand for quality bicycles, and with the right business plan and marketing strategy, a cycle shop can be very successful. Additionally, by selling a variety of cycling accessories and providing repair services, a cycle shop can increase its revenue streams and increase its overall profitability.
How to Start a Cycle Shop Business.
Conduct Market Research: Start by researching the market for kid’s cycles in your area. Identify the types of cycles that are in demand, and assess the competition to determine if there is a gap in the market that your business can fill.
Develop a Business Plan: A well-written business plan is crucial for any successful business venture. Your plan should include a detailed financial forecast, a marketing strategy, and a plan for managing and growing your business over time.
Secure Funding: Depending on the scale of your business, you may need to secure funding to cover the costs of setting up your cycle shop. This may involve taking out a loan, seeking investment, or using personal savings.
Choose a Location: When choosing a location for your cycle showroom, consider factors such as accessibility, visibility, and proximity to potential customers. Ideally, you should choose a location that is easily accessible for both customers and suppliers.
Purchase Inventory: Once you have secured funding, it’s time to purchase your inventory. This may include kid’s cycles, cycling accessories, and any necessary tools and equipment for repairing cycles.
Launch Your Business: Once your inventory is in place, it’s time to launch your business. Host a launch event, offer promotions and discounts and start promoting your business through advertising and social media.
How to Promote a Kid's Bicycle Shop in a Locality?
Offer Promotions and Discounts: Offer promotions and discounts to customers to incentivize them to visit your shop and make a purchase.
Host Events: Host events such as cycle rides and repair workshops to build a sense of community around your business and attract new customers.
Use Social Media: Use social media platforms such as Facebook and Instagram to promote your business, showcase your inventory, and engage with customers.
Build Relationships with Local Businesses: Build relationships with local businesses such as schools, parks, and community centers to promote your business and reach potential customers.
Financial Roadmap for the Next 5 Years.
- Year 1: In the first year, your primary focus should be on establishing your business and building a customer base. This will likely involve significant investments in advertising and promotions, as well as the cost of purchasing inventory and setting up your shop. Your goal in the first year should be to break even and generate enough revenue to cover your expenses.
Year 2-3: In the second and third years, you should focus on expanding your customer base and growing your business. This may involve opening additional stores in new locations or offering new products and services. You should also start to see an increase in revenue as your customer base grows and your brand becomes more established.
Year 4-5: In the fourth and fifth years, you should focus on refining your business processes and maximizing profitability. This may involve investing in new technology or hiring additional staff to manage growth. You should also start to see a significant return on your investment, with profits increasing as your business continues to grow.
Investment required to start a chain of cycle store business.
The break-up of Rs 20 Lakhs initial investment for 5 bicycle showrooms can be as follows:
Inventory: Approximately 40-50% of the initial investment, or around Rs 8-10 Lakhs, should be allocated towards purchasing inventory, including kid’s cycles, cycling accessories, and any necessary tools and equipment for repairing cycles.
Shop Setup and Equipment: Approximately 15-20% of the initial investment, or around Rs 3-4 Lakhs, should be allocated towards setting up and equipping each shop. This may include the cost of renting or purchasing a storefront, purchasing display cases, shelving, and other necessary equipment.
Advertising and Promotions: Approximately 10-15% of the initial investment, or around Rs 2-3 Lakhs, should be allocated towards advertising and promotions. This may include the cost of printing flyers, setting up a website, and hosting launch events or other promotional activities.
Working Capital: Approximately 20-25% of the initial investment, or around Rs 4-5 Lakhs, should be set aside as working capital to cover expenses such as rent, utilities, and employee salaries in the early stages of the business.
Legal and Miscellaneous Expenses: The remaining 5-10% of the initial investment, or around Rs 1-2 Lakhs, should be set aside for legal and miscellaneous expenses such as registering the business, obtaining licenses, and covering any other unexpected expenses that may arise.
It’s important to note that this is just a general guideline and the actual break-up of the initial investment may vary depending on the specific needs of your business. It’s always recommended to seek the advice of a financial advisor to ensure that you have a solid financial plan in place.
Companies in India that produce kid's bicycles.
Here are a few , sharing along with their contact email id:
Hero Cycles: [email protected]
Avon Cycles: [email protected]
Atlas Cycles: [email protected]
TI Cycles of India: [email protected]
Firefox Bikes: [email protected]
Montra Bikes: [email protected]
Hercules Roadeo: [email protected]
These are just a few examples and there may be many other companies in India that produce kid’s bicycles. You may also want to consider contacting local distributors or wholesalers to learn about additional options. It’s important to research and compare the products and prices offered by different companies before making a decision to ensure that you are able to find the best option for your business.
Famous models of kid's bicycles in India.
Here are a few famous models of kid’s bicycles in India and their approximate prices:
Hero Sprint Pro 20T: Approximately Rs. 4,000-5,000
Avon E-Lite 16T: Approximately Rs. 4,000-5,000
Atlas Onyx 14T: Approximately Rs. 4,000-5,000
TI Cycles BSA Champ 16T: Approximately Rs. 5,000-6,000
Firefox Nxg 16T: Approximately Rs. 5,000-6,000
Montra Madrock 16T: Approximately Rs. 5,000-6,000
Hercules Roadeo A100: Approximately Rs. 6,000-7,000
The prices may vary depending on the location, brand, and specific model, so it’s important to research and compare prices to ensure that you are able to find the best options for your business.
The retail margin in the kid’s bicycle business is typically around 20-30%, although this can vary depending on a number of factors, such as the type of bicycle, the brand, and the competition in the market. It’s important to research and compare prices and margins in your local market to ensure that you are able to determine the best retail margins for your business.
Other Useful Links
Conclusion.
Starting a kid’s cycle store business can be a profitable and rewarding venture in India. By conducting market research, developing a solid business plan, and promoting your business effectively, you can build a successful business that will grow and thrive in the years to come. With an initial investment of Rs 20 Lakhs, careful planning, and execution, the business can become a small retail chain and one of the successful small retail business ideas.
