Local bike shop
Discussion
LordHaveMurci said:
Dixy said:
From what sources are you finding business for sale.
Daltons & similar sites, are there better options?JCKST1 said:
All you hear in the cycling trade is doom and gloom.
Dont write it off and look at it like any business, the black and white figures and business plan.
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Great point. Every business sector I can think of has had people working in it tell me how hard it is. Often it's hard because they are doing the wrong things/not doing some fundamental things. Dont write it off and look at it like any business, the black and white figures and business plan.
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Life’s too short, if it passes your sniff test and you can afford to lose the investment without undue hardship then go for it. From that start you will see other niches and opportunities bike related and possibly more lucrative - go for it.
I fully accepted no wages for 1/2 years with my current dalliance and it’s gone to plan.
I fully accepted no wages for 1/2 years with my current dalliance and it’s gone to plan.
OP I've been madly into cycling for many years and have spent most of my salary either on, recovering from or holidays planned to ride ...bicycles.
There's no future in a brickscand mortar bike shop.
Go online. Start an online bike shop. There's BIG money to be had in bikes but it's online now.
Running a shop will grind you down. Especially with thieves coming in daily when you are open, thieves coming in occasionally when you are closed. Staff sickness, etc etc
Online is the future in this sector.
There's no future in a brickscand mortar bike shop.
Go online. Start an online bike shop. There's BIG money to be had in bikes but it's online now.
Running a shop will grind you down. Especially with thieves coming in daily when you are open, thieves coming in occasionally when you are closed. Staff sickness, etc etc
Online is the future in this sector.
Another bit of advice, especially if you are going online.
When I started I was selling everything from £9 chains to higher end bikes. After a few months the lower end stuff is just not worth it, why spend your time packing a chain, posting it, paying VAT/TAX on it to make maybe £2-3.
Its the same with lower end bikes (£200-£400) at this price point you are getting beginners/novices who dont really know what they are doing, you will spend a long time on the phone having to tell them everything about the bike, how to set it up and so on. They will also more than likely want them on 0% finance like 'halfords offer' which isn't cheap, we are with the leading bicycle finance provider on their best pricing tier and expect to lose 10% - 20% in fees offering 0%. We no longer do it but offer it at a higher rate.
We now only sell higher end products (wheels, forks, brakesets etc) and bikes where you make a reasonable profit and the people buying them know what they want, what brand and how to fit it. For example if you are spending £2500 on a bike you have done your re-search and know what you want. No messing about having to pressure people in to a sale and everyone is happy providing you do the job right. Smaller turnover of orders but higher profit.
I think this is where 90% of shops are going wrong, there is a few local to me I pop in to from time to time and typically weekdays they are dead and the staff just stood talking to each other while getting paid/ The walls are filled with various cassettes, chains, t-shirts, accessories and there just isn't really the demand for them, especially when you can buy from CRC cheaper, and then pay about £3 for next day delivery up to 10pm. Dont waste your money on the above in the hope everyone needs chains and cassettes etc as chances are they will buy them online plus there is so many variations now you will end up with some with no body wants.
When I started I was selling everything from £9 chains to higher end bikes. After a few months the lower end stuff is just not worth it, why spend your time packing a chain, posting it, paying VAT/TAX on it to make maybe £2-3.
Its the same with lower end bikes (£200-£400) at this price point you are getting beginners/novices who dont really know what they are doing, you will spend a long time on the phone having to tell them everything about the bike, how to set it up and so on. They will also more than likely want them on 0% finance like 'halfords offer' which isn't cheap, we are with the leading bicycle finance provider on their best pricing tier and expect to lose 10% - 20% in fees offering 0%. We no longer do it but offer it at a higher rate.
We now only sell higher end products (wheels, forks, brakesets etc) and bikes where you make a reasonable profit and the people buying them know what they want, what brand and how to fit it. For example if you are spending £2500 on a bike you have done your re-search and know what you want. No messing about having to pressure people in to a sale and everyone is happy providing you do the job right. Smaller turnover of orders but higher profit.
I think this is where 90% of shops are going wrong, there is a few local to me I pop in to from time to time and typically weekdays they are dead and the staff just stood talking to each other while getting paid/ The walls are filled with various cassettes, chains, t-shirts, accessories and there just isn't really the demand for them, especially when you can buy from CRC cheaper, and then pay about £3 for next day delivery up to 10pm. Dont waste your money on the above in the hope everyone needs chains and cassettes etc as chances are they will buy them online plus there is so many variations now you will end up with some with no body wants.
Like everything else the interweb may help, try this and others similar.
https://uk.businessesforsale.com/
https://uk.businessesforsale.com/
Some of the advice on here is a little biased. There is very good money to be made through the workshop and shops are reporting a definite move towards people being unable to fix their own bikes. Componentry and the advent of bikes has brought even. Ore sophistication to this part of the business.
However, if you are going to run a successful shop I think you need to have some experience of working in a workshop so that you don’t have the existing employees telling you pork pies about how things are done.
Also trying to compete with selling bikes and stuff online is crazy. Some people may carve out their own. Is he doing that but you’ll have no chance, so focus on servicing the new customers and local population which is something all good cut lengthwise retailer shave always done.
There has always been discounting in this trade and it’s possible to navigate through that with the support many suppliers offer, it’s not a black and white issue and the kenthing is it’s possible to run a successful business. I have several of my customers who have entered the trade in recent times making a good job of things.
I’ve been in the trade for a considerable amount of time.
However, if you are going to run a successful shop I think you need to have some experience of working in a workshop so that you don’t have the existing employees telling you pork pies about how things are done.
Also trying to compete with selling bikes and stuff online is crazy. Some people may carve out their own. Is he doing that but you’ll have no chance, so focus on servicing the new customers and local population which is something all good cut lengthwise retailer shave always done.
There has always been discounting in this trade and it’s possible to navigate through that with the support many suppliers offer, it’s not a black and white issue and the kenthing is it’s possible to run a successful business. I have several of my customers who have entered the trade in recent times making a good job of things.
I’ve been in the trade for a considerable amount of time.
There will always be a need for LBS's, just how many in an area is the issue.
It's also a relationship, my LBS spent 20 mins sorting an annoying issue on my bike I couldn't fix, but then said they wouldn't charge me (I'm fairly regular), so I bought some new gloves from them.
They'll fit parts bought online.
They've gone into bike fitting quite a lot and I believe that's works well for them. They also get events nights, like power meter sales rep, stuff set up food and drink etc. Regular Saturday morning rides.
They know their stuff.
I saw a shop elsewhere would, for a fee, do a bike fit for people buying their bike online (can set their bike fit machine up to same as the bikes being looked at) then set the bike up for them when delivered, but the purchase was solely between public and online company, I thought that was a good idea.
I may also be close to where you're looking at and may know the business.
It's also a relationship, my LBS spent 20 mins sorting an annoying issue on my bike I couldn't fix, but then said they wouldn't charge me (I'm fairly regular), so I bought some new gloves from them.
They'll fit parts bought online.
They've gone into bike fitting quite a lot and I believe that's works well for them. They also get events nights, like power meter sales rep, stuff set up food and drink etc. Regular Saturday morning rides.
They know their stuff.
I saw a shop elsewhere would, for a fee, do a bike fit for people buying their bike online (can set their bike fit machine up to same as the bikes being looked at) then set the bike up for them when delivered, but the purchase was solely between public and online company, I thought that was a good idea.
I may also be close to where you're looking at and may know the business.
Time for an update.
The business financial year end was March meaning no accounts for latest FY available for several months, this is bad.
Vendor has claimed T/O has increased slightly from him using VAT returns to calculate.
How best to proceed? Will be talking to my accountant over the weekend but any advice appreciated.
Appreciate all the advice saying 'RUN AWAY' but there are a number of things keeping me interested, I am not going to jump into anything unless I (& my accountant) are fairly sure it looks financially worthwhile.
The business financial year end was March meaning no accounts for latest FY available for several months, this is bad.
Vendor has claimed T/O has increased slightly from him using VAT returns to calculate.
How best to proceed? Will be talking to my accountant over the weekend but any advice appreciated.
Appreciate all the advice saying 'RUN AWAY' but there are a number of things keeping me interested, I am not going to jump into anything unless I (& my accountant) are fairly sure it looks financially worthwhile.
Nothing available for the past several months?
So you'd be going in blind.
People tend to sell when it turns bad or it's failing.
I knew a top bloke who owned two bikeshops in central London. He's main cashcow that had been doing well for years suddenly stopped. Almost no sales for no reason. He had to close up.
So you'd be going in blind.
People tend to sell when it turns bad or it's failing.
I knew a top bloke who owned two bikeshops in central London. He's main cashcow that had been doing well for years suddenly stopped. Almost no sales for no reason. He had to close up.
Sa Calobra said:
Nothing available for the past several months?
So you'd be going in blind.
People tend to sell when it turns bad or it's failing.
I knew a top bloke who owned two bikeshops in central London. He's main cashcow that had been doing well for years suddenly stopped. Almost no sales for no reason. He had to close up.
No accounts since March 2018 as last FY accounts (to March 2019) now with accountant, will not be ready for several months.So you'd be going in blind.
People tend to sell when it turns bad or it's failing.
I knew a top bloke who owned two bikeshops in central London. He's main cashcow that had been doing well for years suddenly stopped. Almost no sales for no reason. He had to close up.
So yes, very much blind at the moment & well aware that could mean anything.
Leisure Lakes in Dav’ have a cafe and that was packed on Saturday, noisily so. Events, local event organisation, social media, maybe sponsor or create a local race. Even a coffee machine and a table and chairs would be a big plus.
Social side of it seems a big thing now, sitting in a shop waiting for punters to drop in = a slow death.
Ebikes will be bigger than anything soon with all this climate emergency BS coming along, get to know a Chinese manufacturer and import / brand your own?
Social side of it seems a big thing now, sitting in a shop waiting for punters to drop in = a slow death.
Ebikes will be bigger than anything soon with all this climate emergency BS coming along, get to know a Chinese manufacturer and import / brand your own?
dfen5 said:
Leisure Lakes in Dav’ have a cafe and that was packed on Saturday, noisily so. Events, local event organisation, social media, maybe sponsor or create a local race. Even a coffee machine and a table and chairs would be a big plus.
Social side of it seems a big thing now, sitting in a shop waiting for punters to drop in = a slow death.
Ebikes will be bigger than anything soon with all this climate emergency BS coming along, get to know a Chinese manufacturer and import / brand your own?
Have to agree with this, the bike shops that do well around here all put on local rides and events.Social side of it seems a big thing now, sitting in a shop waiting for punters to drop in = a slow death.
Ebikes will be bigger than anything soon with all this climate emergency BS coming along, get to know a Chinese manufacturer and import / brand your own?
C Lee Farquar said:
Perhaps a bit worrying that the owner isn't on top of the finances?
At the very least I would expect management accounts for an overview.
Several months to prepare Accounts for a small business when the owner want's to sell? It smells a bit.
I daresay most small business don't have access to management accounts, in 21 years I've never needed to. With the intended sale though, he might have considered it I guess.At the very least I would expect management accounts for an overview.
Several months to prepare Accounts for a small business when the owner want's to sell? It smells a bit.
The accounts for my Ltd Co. have always taken several months, this is after we have prepared them to send to the accountant so could be looking at 6mths plus in total.
rustyuk said:
dfen5 said:
Leisure Lakes in Dav’ have a cafe and that was packed on Saturday, noisily so. Events, local event organisation, social media, maybe sponsor or create a local race. Even a coffee machine and a table and chairs would be a big plus.
Social side of it seems a big thing now, sitting in a shop waiting for punters to drop in = a slow death.
Ebikes will be bigger than anything soon with all this climate emergency BS coming along, get to know a Chinese manufacturer and import / brand your own?
Have to agree with this, the bike shops that do well around here all put on local rides and events.Social side of it seems a big thing now, sitting in a shop waiting for punters to drop in = a slow death.
Ebikes will be bigger than anything soon with all this climate emergency BS coming along, get to know a Chinese manufacturer and import / brand your own?
DSLiverpool said:
A Bike cafe / shop - brilliant, organise treasure hunts etc, have club nights - quite fancy it myself.
A bike shop & cafe have always appealed to me, possibly hang a few pictures on the wall from local artists too as added interest / income.Sadly not really the space here unless either of the neighbours vacated!
Believe they do already do 'shop rides'.
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