Do you want to open a cycle store? If YES, go through this article to get a how-to guide with cost and profit margin on selling bicycles.
In the current situation, people are avoiding public transport consciously. And desperately searching for a low-cost alternative. As the fuel (petrol and diesel) price is getting high, the demand for bicycles is increasing very fast. Also, there are several advantages to choosing a bicycle instead of other vehicles.
If you want to start a retail business that needs small capital investment, then opening a bicycle store is a great option for you. Also, it needs minimum licensing and permissions.
Why is Cycle Store Business Profitable?
First of all, a cycle comes at less cost compared to other private vehicles. So, a large number of people prefer having a cycle than other vehicles.
Secondly, cycle riding has several health benefits too. If helps in enhancing the overall body fitness and protecting from hazards of the crowd. So, you can expect a growing number of customers for bicycles.
As it has no fuel cost, it is a cheaper option for a large group of people. Specially, who prefers avoiding public transport. So, you can expect an increasing sales volume at your cycle store.
Also, you can initiate this business with a comparatively low startup cost. So, it also a low-risk business. Apart from selling different types of bicycles, you can offer accessories and spare parts too.
6 Steps to Start a Profitable Cycle Store Business
Here are the basic steps to follow to start a profitable cycle store business:
1. Right Business Model for Cycle Store
In opening a cycle store successfully, the most important thing is the business model. You must select the product range carefully. And also, you must have a clear idea of whom you are going to sell those products.
As far as the product is concerned you have two options. These are multi-brand stores and single-brand stores. Definitely, a multi-brand store can generate more unit sales than a single brand store. However, opening a cycle shop as an authorized sales agent of a reputed brand is also a great idea. For more information, find here Top 25 Best Cycle Brands in India.
2. Choose Right Products According to Demographic
There is a wide range of cycles available in the Indian market. According to features, they come in different price ranges also. Additionally, people with different age group has a different preference for bicycles. So, product selection is the make or break aspect in this business.
Some of the most popular types of cycle models are perambulators, tri-cycles, regular bicycles, bicycles with gear, lady’s cycle, fitness bicycles, BMX bicycles, etc. Each type of cycle comes with different features hence different purposes.
3. Prepare Registration & Licensing
For starting a business in India, you will need to have a license from that. Even if you start as a proprietorship company, then also you must have a Trade License from the Local Authority. If you are going to accept the third party funding, then think about LLP or Pvt. Ltd or Ltd options.
Before you sell the first cycle from your store, you will need to have a current bank account and GST registration. These are basic. Also, apply for a fire license for your store.
4. Select a Location from your Cycle Store Business
In any retail business, location matters. So, select the store location carefully. High traffic areas are the perfect option for this business. Like inside the shopping mall, nearby areas of schools, offices, market complexes, etc.
Your store must have a front window for showcasing the products. Generally, the size of the store depends on the inventory volume. Apart from keeping bicycles, you must have space for accessories, customers waiting for the lounge, and billing counter.
5. Hire Employees
Hire trained and professional employees who have previous experience. Talking to a customer at a shop and describing the features according to his or her need is the most important aspect of this business. So, you need experienced employees here.
Employee training is a must in any retail business. Employees must have clear knowledge about your company, the brands you sell, and product features.
6. Promote your Cycle Store
You must promote your shop locally. And do it both offline and online. As an offline promotion, newspaper advertisement, billboard, distributing leaflets are effective options. Register your store with GoogleMyBusiness. It will help people to find out your store with contact details.
Social media is a highly powerful instrument these days. So, create your company’s social media pages properly. Also, keep those accounts updated regularly. You must have a website. Clearly, mention your products, features, contact details, etc.
In recent time, bicycle sale is definitely going to rise very fast. So, if you can offer the right product according to the customer’s need you can expect a lot of profit from your cycle store business.
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Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.