Possible Business Idea, Advice please..
Discussion
I am currently 19 years old and I am looking in to starting my own used bicycle business.
I have been promised a job for a while off a company now and it seems to be dragging on which is why I am looking for other routes.
The job was a Welding Inspector, It could still come up but I don't know how much longer I can sit around, Its driving me mental!
I am a time served Plater, Since leaving school at 16 I have worked my arse off to get the qualifications i have now which are listed below;
NVQ Level 2 In Fab + Welding
NVQ Level 3 In fab +Welding
BTEC National Award in Manufacturing Engineering
BTEC National Certificate in Manufacturing Engineering
Level 2 Autodesk Inventor 3d
Level 2 AutoCAD 2d
PCN Level 2 in MPI (Completed last month!)
I left to go travelling last year around Asia, Australia and parts of Europe. On my return I am really struggling to find work, I have had a job offers doing CAD in London which again wasn't (Would be getting paid a really low wage, just wasn't possible to live in London)
Since i have been 13 I have been in to serious biking and as well as enjoying the sport my business head always takes over and I have made a very nice little income over the years when i have needed to.
My idea is to open a used bike shop, Not the typical though. It would specialise in top end mountain bike ranging from £300 - £2000+. There is nothing with in 100miles+ which offers top end used bikes so competition is zero, bonus!
I have thought about doing things like offering a Part-Ex for there bike and the old 'We buy any top end Bike' (Something a bit catchier though) and stocking last years models instead of the newer stuff to keep the purchase cost down for the buyer.
I would initially start off from home with between 5-10 bikes and advertise locally but mainly online, Then progress on to a unit/shop and bring in the new bikes, new bike parts and the usual facilities but still keep it a used bike shop so its different from the rest.
I know there is money to be made it has basically supported me and my girlfriend for the last year whilst travelling! I have always got a lot of money from it, Between the 24th of august till now (Approx 6/7 week) i have made approx £3200, I haven't really bothered with advertising much and I haven't been sat on the computer all day, If it was a business this would be key so I would expect a lot more bikes. at the moment I don't really bother with the lower end bike were i only make £200 i mainly focus on the £600+ profit bikes, obviously I would start buying these bikes and this bringing the overall profit up.
I have a little bit of money put away and can lend money off family to start this off on a bit of a bigger scale, I have thought about going to enterprise and ask them for some advice and possible loans i could get.
I don't expect to become a millionaire from this but I think there is money to be made and why not give it a shot.
Thanks for reading and I look forward to hearing your advice on this.
Jack
I have been promised a job for a while off a company now and it seems to be dragging on which is why I am looking for other routes.
The job was a Welding Inspector, It could still come up but I don't know how much longer I can sit around, Its driving me mental!
I am a time served Plater, Since leaving school at 16 I have worked my arse off to get the qualifications i have now which are listed below;
NVQ Level 2 In Fab + Welding
NVQ Level 3 In fab +Welding
BTEC National Award in Manufacturing Engineering
BTEC National Certificate in Manufacturing Engineering
Level 2 Autodesk Inventor 3d
Level 2 AutoCAD 2d
PCN Level 2 in MPI (Completed last month!)
I left to go travelling last year around Asia, Australia and parts of Europe. On my return I am really struggling to find work, I have had a job offers doing CAD in London which again wasn't (Would be getting paid a really low wage, just wasn't possible to live in London)
Since i have been 13 I have been in to serious biking and as well as enjoying the sport my business head always takes over and I have made a very nice little income over the years when i have needed to.
My idea is to open a used bike shop, Not the typical though. It would specialise in top end mountain bike ranging from £300 - £2000+. There is nothing with in 100miles+ which offers top end used bikes so competition is zero, bonus!
I have thought about doing things like offering a Part-Ex for there bike and the old 'We buy any top end Bike' (Something a bit catchier though) and stocking last years models instead of the newer stuff to keep the purchase cost down for the buyer.
I would initially start off from home with between 5-10 bikes and advertise locally but mainly online, Then progress on to a unit/shop and bring in the new bikes, new bike parts and the usual facilities but still keep it a used bike shop so its different from the rest.
I know there is money to be made it has basically supported me and my girlfriend for the last year whilst travelling! I have always got a lot of money from it, Between the 24th of august till now (Approx 6/7 week) i have made approx £3200, I haven't really bothered with advertising much and I haven't been sat on the computer all day, If it was a business this would be key so I would expect a lot more bikes. at the moment I don't really bother with the lower end bike were i only make £200 i mainly focus on the £600+ profit bikes, obviously I would start buying these bikes and this bringing the overall profit up.
I have a little bit of money put away and can lend money off family to start this off on a bit of a bigger scale, I have thought about going to enterprise and ask them for some advice and possible loans i could get.
I don't expect to become a millionaire from this but I think there is money to be made and why not give it a shot.
Thanks for reading and I look forward to hearing your advice on this.
Jack
Thanks for the advice everyone. I could easily get £1500 profit in a month now but with a business on my shoulders I will be working full at it and hopefully will exceed this,
Its my brother in law who is getting me a job and his company take on a couple of new employees about this time every year so there;s always next year like you said, My MPI ticket is 3 or 5 years i believe.
I am going to have a look in to enterprise tomorrow and possibly arrange an appointment, Start off working from home doing mainly online advertising/sales.
Its my brother in law who is getting me a job and his company take on a couple of new employees about this time every year so there;s always next year like you said, My MPI ticket is 3 or 5 years i believe.
I am going to have a look in to enterprise tomorrow and possibly arrange an appointment, Start off working from home doing mainly online advertising/sales.
Most of the bikes I sell i either post or travel to meet the buyer so to start off with there's no point in getting a unit/shop. Once I start getting 15+ bikes then I will start looking in to premises.
How do I actually go about registering my self as self employed, setting up tax etc?
I will set up business account on the sites i use (Ebay, Gumtree etc) and probably set up my own website once I have a few bikes.
How do I actually go about registering my self as self employed, setting up tax etc?
I will set up business account on the sites i use (Ebay, Gumtree etc) and probably set up my own website once I have a few bikes.
Source:
I usually get my bikes of classified sites and bike sites, Rarely E-bay (Good place to sell, not buy!)
You can tell straight away if a bike is stolen just by the seller, knowledge of the bike, location and description. If i have any queries I can check via bikes sites and google search. When ever i collect a bike I write down every bit of info from the seller, Dates, Address, Number, Name etc.
I have been doing it for about 6 years now and luckily no problems.
Cashflow:
I have a bit of money put away to start it off and I can lend money off family if needs be, I know I can pay them back over a few months. There will always be the money in the bikes even if i only made £100 on bike it would just free up some money.
Seasonal:
There are times of the year were sales vary but not very much, December time is always good for xmas, Slows a little after that till about April were again it booms as people are getting them as the weather picks up, This carries on till about Sep/Oct. It never really gets slow though as theres always people birthdays or people just looking to upgrade their bike. I think that offering a PX service would help the bikes go out the door.
Warranty:
It isn't something I can offer at the moment it would be something i progress on to when I open a shop/unit.
All bikes are FULLY inspected before hand then they get serviced before sale, Buyer can test if they want. I could offer a 6 months free service or similar. There maybe the possibility of ringing the manufacturer and asking them after the first year if i can pay for an extra year which would be a bonus.
Accessories:
Used accessories are not worth a lot at all, I would be splitting some bikes and selling parts separately, I could always buy new or look around for the specific item they want and fit it free of charge, Over time parts see to build up any way.
Once i had a unit and more room I would bring in brand new parts and brand new bikes but still keep the majority used bikes and parts.
Premises:
Yeah it wont be a typical shop were kids can come in and get a bike for £100 so your usual high street bike shop wont help, Best of getting a unit near town were I have plenty of room, parking and space for customers to test the bikes.
USP:
Simple, I am selling quality used bikes in full mechanical order and near new condition for a fraction of the price, Why pay an extra £1000 for the same bike?
There is currently no shops like this around and I know a lot more people are buying second hand now as the prices are just going up and up.
Marketing:
I am a member on most of the main bike sites I would advertise on there, The usual classifieds such as Gumtree. I know a lot of the local bike spots so would also advertise there. Then there is always the local papers etc, They probably wont get much interest but it cant hurt to try.
I would also do things like open days eventually to let people come in and ride all the bikes, Interact more with customers and go out riding with them in my spare time to keep a good bond between me and the customers.
Future
Start off at home to begin with, I have plenty of room and time so that's no problem, Once I start running out of room that's when I would look for a unit.
I would aim for 60ish bikes in the shop, half new and half used. I would stock last years models as well as this years for people to catch the old stock bargains, I would stock new parts and accessories and stock as many used ones as I can. I would employ someone to come in twice a week and offer a more specialist servicing and possibly custom building with new or used parts.
Then there's the route of offering road racing bikes?
VAT?
I am not sure what route to take yet i will have to look in to it. Possibly a sole trader as there is not going to be a lot of money going in to it. If i was to expand to a bigger business is it possible to then re-register as a VAT registered company or are you still as a sole trader?
I have a name and will register it soon.
Thanks for that mate.
I usually get my bikes of classified sites and bike sites, Rarely E-bay (Good place to sell, not buy!)
You can tell straight away if a bike is stolen just by the seller, knowledge of the bike, location and description. If i have any queries I can check via bikes sites and google search. When ever i collect a bike I write down every bit of info from the seller, Dates, Address, Number, Name etc.
I have been doing it for about 6 years now and luckily no problems.
Cashflow:
I have a bit of money put away to start it off and I can lend money off family if needs be, I know I can pay them back over a few months. There will always be the money in the bikes even if i only made £100 on bike it would just free up some money.
Seasonal:
There are times of the year were sales vary but not very much, December time is always good for xmas, Slows a little after that till about April were again it booms as people are getting them as the weather picks up, This carries on till about Sep/Oct. It never really gets slow though as theres always people birthdays or people just looking to upgrade their bike. I think that offering a PX service would help the bikes go out the door.
Warranty:
It isn't something I can offer at the moment it would be something i progress on to when I open a shop/unit.
All bikes are FULLY inspected before hand then they get serviced before sale, Buyer can test if they want. I could offer a 6 months free service or similar. There maybe the possibility of ringing the manufacturer and asking them after the first year if i can pay for an extra year which would be a bonus.
Accessories:
Used accessories are not worth a lot at all, I would be splitting some bikes and selling parts separately, I could always buy new or look around for the specific item they want and fit it free of charge, Over time parts see to build up any way.
Once i had a unit and more room I would bring in brand new parts and brand new bikes but still keep the majority used bikes and parts.
Premises:
Yeah it wont be a typical shop were kids can come in and get a bike for £100 so your usual high street bike shop wont help, Best of getting a unit near town were I have plenty of room, parking and space for customers to test the bikes.
USP:
Simple, I am selling quality used bikes in full mechanical order and near new condition for a fraction of the price, Why pay an extra £1000 for the same bike?
There is currently no shops like this around and I know a lot more people are buying second hand now as the prices are just going up and up.
Marketing:
I am a member on most of the main bike sites I would advertise on there, The usual classifieds such as Gumtree. I know a lot of the local bike spots so would also advertise there. Then there is always the local papers etc, They probably wont get much interest but it cant hurt to try.
I would also do things like open days eventually to let people come in and ride all the bikes, Interact more with customers and go out riding with them in my spare time to keep a good bond between me and the customers.
Future
Start off at home to begin with, I have plenty of room and time so that's no problem, Once I start running out of room that's when I would look for a unit.
I would aim for 60ish bikes in the shop, half new and half used. I would stock last years models as well as this years for people to catch the old stock bargains, I would stock new parts and accessories and stock as many used ones as I can. I would employ someone to come in twice a week and offer a more specialist servicing and possibly custom building with new or used parts.
Then there's the route of offering road racing bikes?
VAT?
I am not sure what route to take yet i will have to look in to it. Possibly a sole trader as there is not going to be a lot of money going in to it. If i was to expand to a bigger business is it possible to then re-register as a VAT registered company or are you still as a sole trader?
I have a name and will register it soon.
Thanks for that mate.
Another quick question.
My girlfriend is also unemployed (Same reasons, Back from travelling, no work!)
I would like to bring her in to the company as she has managed a salon before and knows how to keep the books and it spot on at paperwork, Which gives me time to focus on sale and marketing.
Daft question but is a sole trader just 1 or could it go down as both?
My girlfriend is also unemployed (Same reasons, Back from travelling, no work!)
I would like to bring her in to the company as she has managed a salon before and knows how to keep the books and it spot on at paperwork, Which gives me time to focus on sale and marketing.
Daft question but is a sole trader just 1 or could it go down as both?
I would market it as ***** cycles but have a sub heading of soemthing along the lines of 'we buy any bike'
I am going to write a business plan out tonight and take it from there.
Whats do i need to do (Sorry bit dim on this!)
Register name
Register as a sole trader
Register a website
Set up PAYE as i will be employing my girlfriend, Just so shes not unemployed. Let here do all paperwork.
Hopefully it will take off an I can look at a unit after Xmas.
I am going to write a business plan out tonight and take it from there.
Whats do i need to do (Sorry bit dim on this!)
Register name
Register as a sole trader
Register a website
Set up PAYE as i will be employing my girlfriend, Just so shes not unemployed. Let here do all paperwork.
Hopefully it will take off an I can look at a unit after Xmas.
Also another question is that if i want to stock last years models brand new from the company will there actually be any left?
Basically if i e-mail Lapierre now saying I am opening a shop on xx/xx/xxxx and I want 30 of there 2012 bikes (2013 are now out) will they basically just check everything over and send them out or will they only want 2013 bikes?
There is a little niche in the market for new old models at knock down prices, Which is basically what my store will be about, Discount premium bikes.
Basically if i e-mail Lapierre now saying I am opening a shop on xx/xx/xxxx and I want 30 of there 2012 bikes (2013 are now out) will they basically just check everything over and send them out or will they only want 2013 bikes?
There is a little niche in the market for new old models at knock down prices, Which is basically what my store will be about, Discount premium bikes.
Thanks for the input. I am going to put a business plan together tomorrow night and hopefully get the ball rolling saturday.
Hopefully get started around the beginning of November. Once i have premises i can then dip in to the 'cycle scheme' but I can also market my business as a kind of green business in the fact that I am taking in people's bikes and sending them back out to a new rider who will use them.
i have purchased bikes before which are worth £1000+ and have been sat in a garage for about two years! Hopefully i will dig some more of these out, Get them serviced etc and sell them.
Thanks
Hopefully get started around the beginning of November. Once i have premises i can then dip in to the 'cycle scheme' but I can also market my business as a kind of green business in the fact that I am taking in people's bikes and sending them back out to a new rider who will use them.
i have purchased bikes before which are worth £1000+ and have been sat in a garage for about two years! Hopefully i will dig some more of these out, Get them serviced etc and sell them.
Thanks
Although I do make a mark up I never get greedy. I have sold bike for £2000 brand new when second hand once are going for £2000, This means it shifts quicker giving me chance to get a new one in.
Personally i would travel to go to a bike shop rather ebay, The buyer will have the chance test ride the bike as long as they want, Bike will be sold fully serviced and I will offer a years free servicing and all my bikes will be data tagged.
I usually buy bikes from all over the place and take the risk of getting a good bike, I would say 60% of the time it works out fine but I have had loads of bikes come in a lot worse condition than said and some I have even had to put a dispute in and send back. At least you will have peace of mind when buying from me.
Personally i would travel to go to a bike shop rather ebay, The buyer will have the chance test ride the bike as long as they want, Bike will be sold fully serviced and I will offer a years free servicing and all my bikes will be data tagged.
I usually buy bikes from all over the place and take the risk of getting a good bike, I would say 60% of the time it works out fine but I have had loads of bikes come in a lot worse condition than said and some I have even had to put a dispute in and send back. At least you will have peace of mind when buying from me.
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