The bicycle industry has boomed over the last couple of years, and it doesn’t look like things are going to slow down any time soon. Now is a fantastic time for anyone looking at setting up a bike shop, and with sustainable travel options a growing priority, it’s also a sustainable business choice going into the future.
Read on to find out more about why opening a bike shop is a great idea, what your first steps should be, and how yoyo can give you an edge over your competitors.
Reasons for opening a bike shop in today’s world
From lockdowns to social distancing, the 2020 Covid-19 pandemic impacted our society in ways we never imagined. With more people looking to exercise and socialise while keeping safe, cycling became a popular choice. In fact, 3.1 million bikes were purchased in 2020 as 1 million adults took up cycling, with 25% of those who bought a bike being first-time cyclists. This demand carried on well into the following year and by 2021, bike sales were up over 40% with bike sellers struggling to meet the demand.
While this demand will likely slow as we start returning to some normality, our society’s conscious effort to move towards sustainability will continue to drive bike purchases. With people looking to reduce their carbon footprints, cycling has become a popular choice for commuters. From 2015 to 2019, cyclists made up 0.9% of road traffic in Great Britain, and by 2020, this had doubled to 1.8%.
Along with their cycle to work scheme, the UK government has also launched a national e-cycle support programme to help promote the benefits of cycling and make it accessible to more people. Healthier, flexible and kinder to the environment, e-bikes in particular are shaping the future of city cycling.
With more and more people discovering a love of bikes and all the benefits that come with cycling, opening a bike shop has the potential to be a triumph. The future of cycling is brighter than ever, so if you want to tap into this growing market, here are some fundamentals to consider when setting up a bike shop. These points will all help to put together a comprehensive business plan, giving you a clear idea of how to run a successful bike shop.
Work out your finances
The first step is to work out the potential cost involved with opening a bike shop, along with any ongoing costs. This should cover everything from rent, insurance and staff salaries to inventory, marketing and delivery costs. By getting a rough idea of what everything will cost, you can then work out your margins and decide whether you have the makings of a profitable business.
Define your target market
From commuters and competitors to Sunday bike riders out with the family, deciding who your customers are will guide your entire business. E-bikes, road bikes and mountain bikes are niche markets that will all appeal to different audiences, and so in order to draw customers in with effective brand and marketing strategies, you’ll need to know exactly who you’re talking to.
This means the first step for bike shop owners should be defining your audience. By making this clear right from the start, you’ll know who you’re targeting so you can tailor your marketing tactics, make smart inventory purchases and choose a suitable location.
Licences
Along with your standard legal obligations to consumers, there are a whole variety of licences and regulations that bike shop owners need to research. This includes any legal requirements when selling online and a second-hand dealer’s licence for restoring bikes. If you plan on offering customers the choice to pay using finance, then you’ll also need consumer credit authorisation from the Financial Conduct Authority (FCA).
Build a brand
When opening a bike shop, think about how you want your business to be perceived by the public. This is where your brand and marketing come into play, shaping the way your customers see you and your business values. If you deal with second-hand bikes and repairs, then you might be driven by sustainability, or if you only sell high-end bikes, then you want to be known for delivering premium products.
This will be guided by your target market and the sort of customers you want to attract. You can then decide on a name, making sure the URL is available. Once you have a brand image in mind, you can put together a marketing strategy that speaks to your audience. We have some great advice on how to build an excellent digital marketing strategy, from building a website to growing your presence on social media.
Choose your location wisely
Whether you’re opening a bike shop or starting up a bike rental business, location is key. Once you’ve worked out the maths and have an idea of budgets, do your market research and find a location where demand is high and competition is low.
Make the customer experience as easy as possible by looking for a town location with access to parking. If you’ve scouted out a few potential properties, then try to go for the larger one. Ideally, you want enough space for a healthy stock of bikes, accessories, and room for a workshop. Although it might look empty to start with, this gives you room for your bike shop business to grow.
Offer more than just bikes
When looking for your location and getting the necessary licences in place, also bear in mind that setting yourself apart from any competition is key when it comes to opening a bike shop geared towards success. As well as finding your niche in bikes and selling accessories, you could offer bike maintenance workshops or have a coffee shop space—a great addition if there are popular cycling routes nearby.
Through effective marketing, bike shop owners can also create a whole community around their brand. Posting on social media, creating useful blog posts and offering group bike tours around the local area are all great ways of getting people involved and making them feel like part of your family.
Offer test rides with demo bikes
Another great way of setting yourself apart from the competition is to offer bike demos. Bikes come in all shapes and sizes, each offering a completely different riding experience to the next. This means that just like cars, people would prefer to take your wheels out for a test ride so they can make sure that bike is the one for them. Offering demo bikes that can be booked out is especially important for anyone just opening a bike shop or dealing with more premium price tags, helping build trust in your services and products.
How bike shop owners can offer demo bike bookings, the yoyo way
Set up your website
When opening a bike shop, you’ll also want to set up an online store. This will not only support your marketing efforts and give you access to a wider audience, but it will also mean you can offer test rides safely and securely using our yoyo booking system.
Register your bikes
Once your yoyo account is all set up, the next step is to register your demo bikes. You can take photos and add notes, giving you a visual overview which makes it easier to keep track of your inventory. You can also add in other accessories like helmets to make sure customers have everything they need to stay safe while testing your wheels.
Download the yoyo plugin
Install our yoyo plugin onto your website’s booking page. This then gives customers the option to choose a date and session time. Once they click ‘Book A Ride’, they’ll be taken to a new page with more advanced booking options, showing all the demo bikes you have available for them to choose from.
And don’t worry, your brand’s logo will also be displayed clearly in large format at the top of the page. Although they’re now on yoyo’s booking form, this makes it clear that this is your booking and it’s only being powered by yoyo.
Customers make bookings
With your website all set up, customers can now start making bookings 24/7/365 from anywhere in the world. This makes you completely accessible, making the demo booking process super smooth and encouraging cyclists to try out your bikes.
During the booking process, we only ask for the basics which are name, email, date of birth and contact number. This keeps everything quick and simple, giving your customers a great booking experience. There is a £1 booking fee, so make sure to note this on your booking page.
Everything is logged
Every booking is automatically sent directly to your calendar, avoiding double bookings and cutting down the paperwork. This is then displayed on your dashboard, along with any reminders for maintenance so you can keep your demo bikes in top condition. With everything clearly logged, this not only keeps you organised but can also help with liability issues if a test ride takes a turn in the wrong direction.
Free forever for 1-10 bikes
By offering a free demo of our own software, you can give your customers an easy-to-book demo ride too. Why do we do it? For the love of cycling! We want to help as many people as possible discover the health, environmental and financial benefits of choosing to cycle, while also making life simple for bike shop owners.
If you’re thinking about opening a bike shop, then we hope this brief guide on how to start a successful bike shop will help get you going. Best of luck moving forward and if you want to find out more about how yoyo can help, then get in touch!