Business plan. Bicycle and roller skate rental

In this material:

• Drawing up a bike rental business plan
• Cost of starting and maintaining a business
• Income amount
• Payback period
• Choose a similar franchise

Drawing up a business plan for a bicycle rental company is becoming a very hot topic for many entrepreneurs. The popularity of this 2-wheeled vehicle is due to its practicality, convenience and mobility. In addition, riding it has a beneficial effect on the body. Unfortunately, not every person can boast of having their own bicycle, but there are a lot of people who want to ride one. Taking into account all these points, businessmen have a desire to open a bicycle rental service. Such a business will not only bring pleasure to those who like to ride, but will also allow them to make good money.

Attractiveness of a business idea

Bicycle rental is especially interesting in the warm season, in megacities and medium-sized cities. This type of transport allows you not only to quickly move around the city, but also to take bike rides, admire the sights, and play sports.

It is not surprising that bicycle rental in big cities is in such demand during the warm season. To implement this idea, you need to have a starting capital of 200-250 thousand rubles. In this case, the payback period will be 5-6 months.

Attractiveness of a business idea

Now let's take a closer look at where to start and how to write a business plan.

Market analysis

The initial costs of a business plan are not very large, you can even recoup and benefit in the first season. The bike rental season usually starts in mid-spring and ends in late fall before the snow begins to fall.

It will be very profitable to open a bike rental point in resort cities and cities with a population of over a million.

Nowadays, cycling is very popular, people dream of “riding like a breeze,” but more often it ends only in dreams, because buying your own bike means spending at least 10 thousand rubles, and besides, you need free space in your apartment or storage room.

In the cold season, it will lie idle, plus, what if something happens, it will be necessary to repair it, but the person does not know how, and he is too lazy to go to a bicycle workshop. For such people, bike sharing in the city has always been and remains relevant - to fulfill their desire at a minimum cost, have a great time, besides, you can ride with friends, and repairs are not their problem.

For greater profitability, the business plan can take into account the opening of bicycle rental, longboard rental and rollerblading rental in the same premises.

Principles for creating a business plan

Many novice businessmen who decide to start their own business make a very common mistake. They rush, as they say, “headlong” into the implementation of a business idea, without prior planning.

At the same time, it is a well-written business plan that is the key to successful implementation of the project. What is it and why is such a document needed? If you think that writing a plan to implement a business idea is a waste of time, then let us immediately draw your attention to the main goals of this document.

A well-written business plan will later become a step-by-step guide that will allow you to achieve your goal without deviating from the main idea. This document reflects all aspects of activity and helps to plan the sequence of actions necessary for the successful implementation of the company's goals.

Business plan development

He helps:

• analyze the competitive environment;
• determine the target audience;
• calculate the payback period of the business;
• write down the required amount of raw materials and equipment to implement the idea;
• see the strengths and weaknesses of the project.

If you do not have initial capital to implement the project and you plan to seek help from private investors, then you will need to draw up two documents.

A business plan for internal use is written, as they say, “for oneself.” A big mistake would be to distort data and ignore weaknesses. You must clearly understand all the external and internal threats to your business, calculate the real payback period and the expenses that will have to be incurred to implement the business.

This document will be a reference book that will show you the path step by step.

An external document is drawn up primarily for investors or business partners. Of course, you shouldn’t greatly distort the data or embellish it either. Do not forget that such a business plan will be read by competent people who understand finance. But at the same time, it is important to reflect the business idea in its best form. The information should demonstrate the strengths of the project and indicate its quick payback with minimal investment.

It’s better to start developing a document right away with a plan for internal use, so that during the creation process you consider the business, taking into account its weaknesses, analysis of the competitive market, and identification of risks.

It is possible that much of the information will not make it into the document intended for investors. But for you this will be a serious help in the proper organization of the business process.

Video. How to make money renting bicycles?

Costs and profits

1. Purchase of bicycles. The approximate cost of one is about 150–200 dollars. You need to buy, to begin with, at least 10 pieces. In total this is 1500-2000 dollars;
2. Garage rental. The rental price will depend on the area and location;
3. Salary if you hire employees to work at the rental office. Naturally, you can save money and work independently at first.

Profit

Your income will depend on the demand for the service and, accordingly, its price. If there is a lot of competition, then you shouldn’t count on quick profits, but you still don’t need to despair. A profitable location and a competent advertising campaign will certainly lead to success over time and turn your business into a profitable business.

You can make good money renting bicycles if you open several points in different parts of the city. It all depends solely on your entrepreneurial talent.

Additional income

In addition to providing a bicycle rental service, you can open a bike repair shop nearby. Hire a smart craftsman and you are guaranteed a decent additional income.

Bicycle accessories. To ride a bicycle safely, you must not only follow the rules of the road, but also wear protective equipment. Therefore, in addition to renting bicycles, you can offer your clients additional rental knee pads and helmets for safe riding around the city. Video on the topic

What to consider in a bicycle rental service?

Keep in mind that bicycle rental is not only a geographical limitation, but also a seasonal business. Agree that it is unlikely that in the metropolis, in January, anyone will need to go on a bike ride.

The main focus of this business is the rental of two-wheelers. But to increase profitability, you don’t have to limit yourself to this small service. To strengthen your position in the market and attract more customers, you can offer related services and products.

Features of the rental business

The most favorable season for this business lasts almost 7 months, from April to October. Therefore, during these months it is necessary to achieve a profit that will allow the remaining five months of the year to keep the business afloat. Do not forget that, even without renting out the vehicle, you will have to pay rent, pay taxes as a private entrepreneur, possibly maintain equipment, etc.

Selecting a room

The location of the bike rental is important. Choose the most crowded central boulevards, squares or park areas in residential areas, but invariably popular and with a high flow of vacationers.

Which premises are suitable for renting bicycles?

They stay there in the off-season, but make sure that the area is well guarded.

How will a business plan help when implementing a bicycle rental project?

To achieve success in implementing any idea, you cannot do without careful planning. An assessment of strengths and weaknesses and a competent analysis of the competitive environment will help you successfully implement your business and avoid serious mistakes.

Search for target audience

A business plan is an effective management tool that allows you to:

• establish a sales market;
• occupy your niche in the market;
• attract investors;
• enlist the support of business partners;
• correctly define goals (short-term and long-term);
• calculate production and advertising costs;
• develop a marketing policy.

Risks

So where can you expect unexpected expenses? Unfortunately, almost every owner of a rental point sooner or later faces the fact that his equipment:

• breaks;
• hijacked;
• remains unclaimed.

What can you do to protect your business from trouble?

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So as not to be stolen

Unfortunately, in any city there are people who want to get hold of new equipment. To prevent theft, the owner of the outlet usually takes a deposit from the client. This may be an amount equal to what the visitor already agreed to pay for the rental, or it may be an identification document. It is best to copy down the client’s passport details before renting out the bike.

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So as not to break

If you can insure against the theft of a bicycle, then, unfortunately, this will not work against damage to property. The fact is that, according to the postulate “the customer is always right,” most people involved in rentals pay for equipment repairs themselves. It is worth keeping in mind: even a single controversial situation can work against you. If you accuse a client of deliberately damaging your bike and force them to pay compensation, your company will be prejudiced. And what could be worse than a bad reputation?

In fact, you rarely encounter vandals in the bicycle business: equipment breakdowns are the result of mishandling, wear and tear, and accidents. To repair a bicycle, you are unlikely to have to pay more than 1,500 rubles. You can also make money by repairing sports equipment: try hiring a repairman, at least part-time, some time after the start of the project. Don’t skimp on paying for his services: let him receive 35–60,000 rubles a month. Your benefit will be that people from all over the city will come to see a skilled specialist, which will bring you significant popularity.

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To come more often

If equipment sits idle in the garage, this also cannot please a novice entrepreneur. Therefore, for the successful course of business it is important:

• find a suitable place for the point;
• allocate money for advertising;
• Over time, think about expanding your business.

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Pros and cons of a bike rental business idea

Before we start writing a business plan and implementing the idea itself, let's analyze the advantages and disadvantages of this project, identifying its strengths and weaknesses.

Advantages:

1. High demand. This rental service is popular all over the world. And if you live in a big city with a busy tourist flow, this means that a large number of people will use this service. By bicycle you can quickly get from point A to point B, avoiding traffic jams. You can take a ride around the park or the outskirts of the city. The mobility of a bicycle, its environmental friendliness and ease of use make this type of transport popular. But not all city residents can afford to buy a personal bicycle for a number of reasons.

   

   Pros and cons of rental

   Living in a multi-storey building, without a balcony or garage, it is not so convenient to maintain a bicycle. Moreover, if a person is more of an amateur than a professional, it is easier to rent a bicycle and enjoy riding several times a season than to buy expensive equipment, store, maintain, etc.

2. Regular customers. Bicycle rental is a very specific business. If the client is completely satisfied with the quality of your service, the condition of the transport, and the pricing policy, then he is unlikely to look for another company. Therefore, in this business it is very important to place great emphasis on improving the quality of service, on a customer loyalty program, etc.
3. Small starting capital. Unlike other types of business, bicycle rental does not require large financial investments.

   

   Small starting capital

   All that is needed at the initial stage is to rent a room, hire staff and purchase several pieces of equipment. With successful business development, you can always increase your bicycle fleet by purchasing new bicycles. This business can be organized either by a student who has a small start-up capital or by a novice entrepreneur. And an experienced businessman, having invested a large amount of money in a project, will quickly recoup the investment.

But, despite all the visible advantages of this business idea, it would be unfair not to mention the disadvantages of renting a bike.

Flaws:

1. Seasonality of business. This factor stops many businessmen and forces them to abandon the implementation of their idea. The idea of ​​a business only operating for 6-7 months of the year is not for everyone. After all, you want to set up a business that would function all year round, generating income. Here you will have to pay for rent, maintenance and maintenance of bicycles for several months a year.
2. High competition. Actually, this minus smoothly follows from the advantage of high demand. The higher the demand, the more supply - this is the law of the market. Therefore, in order to adequately enter the market with this idea and successfully implement it, you will need to make a lot of effort, conduct a good marketing campaign and study the competitive environment, identifying weaknesses.

Given the high competition, when writing a business plan, a strong emphasis must be placed on market analysis and searching for the target audience. All this will allow you to occupy your niche in the market and truly offer the client a worthy product.

1. Possible risks (unscrupulous employees, bad weather conditions, non-return of bicycles, theft, etc.).

   

   Risk of bike non-return

Opening a legal entity faces

In order to open a bicycle rental, you need to register as an individual entrepreneur (register as an individual entrepreneur). Providing such services in Russia is a business activity, which carries with it a certain responsibility. You can register an individual entrepreneur at the tax office of your city, they will explain everything and tell you, the procedure is quite simple.

Many aspiring entrepreneurs providing bicycle rental services do not bother with legal concerns at the initial stage. In other words, they work through word of mouth, attract customers through social networks, do not use contracts, checks, etc. This is a completely reasonable choice, but only until the business turnover is insignificant and the net income from bike rental has not reached at least 30 thousand rubles .

• Firstly, legal registration. face costs some money (about 5,000 rubles), which at the opening stage is still wiser to invest in the business: attracting customers, purchasing new bicycles, preparing an “airbag” (in case of repairs, theft), etc.
• Secondly, an individual entrepreneur is obliged to contribute about 2,000 rubles to the pension fund every month, and if taxes are paid on each transaction, this amount will be even higher. Of course, these funds are not so large, but when you start, you will have much more important cost items in your business plan: equipment for bicycles, printing business cards, advertising (VK, Direct, leaflets) and much more.

However, keep in mind: illegal business activity (of any scale) entails criminal penalties.

In any case, if your business generates satisfactory income, then legal. registration will definitely be required, take this into account in your bike rental business plan. You will need good advertising (if you pay through a bank account), you will have to hire employees, rent premises, etc. In the future, legal costs will not be so burdensome.

Step-by-step instructions on how to open a bicycle rental

Before implementing the business itself, purchasing equipment and searching for premises, great attention should be paid to the preparation of documentation.

Organizational plan

Organizational plan

Step #1. Paperwork.

For a beginner taking his first steps in business, this stage will cause certain difficulties.

You must first register an individual entrepreneur. This procedure is carried out at the tax office, where the following documents are presented:

• passport of a citizen of the Russian Federation;
• receipt of payment of state duty (800 rubles).
• TIN.
• Application on form P21001.

After submitting all documents, an employee of the Federal Tax Service reviews the documents within 5 working days, after which he issues a Certificate of Registration of Individual Entrepreneurs.

As for the taxation system, there will not be any particular difficulties here, since bike rental follows a simplified scheme.

According to this scheme, the entrepreneur pays 6% of all profits and contributions to the Pension Fund, FFOMS.

Next, in order to register the business itself, you will need to collect the following package of documents:

• passport of a citizen of the Russian Federation;
• individual entrepreneur registration certificate;
• a document confirming tax registration;
• premises rental agreement;
• medical records of employees (if you hire staff);
• permission from the fire service and sanitary and epidemiological station.

Step #2. Search for premises.

This stage is one of the most important in this type and in many ways, it is the rental location that will determine the success of the entire project.

On the one hand, it is cheaper to rent premises for your business on the outskirts of the city or in a residential area, but in this case you should not count on a large flow of clients.

Renting premises

Such a business must be implemented in a crowded place, with good traffic and excellent transport links. After all, many residents and guests of the city will get to the bicycle rental place by public transport or by their own car.

Of course, you need to correctly assess your financial capabilities, but you should not save on renting premises for bike rental.

A good location will play a key role in this business and largely determine profit, so pay special attention to searching for premises.

The ideal place would be:

• a park;
• embankment;
• tourist base;
• resort center;
• lake, etc.

It will be necessary to provide each client with safety training, so it is imperative to keep an appropriate log.

Ideal place to rent

For the convenience of clients, it is important to organize a corner where a person can change clothes and shoes. An excellent service option would be lockers in which tourists can leave their personal belongings while walking around the city or its environs.

Another surprise may await you here. Not all park areas allow bicycle rentals, so before renting, you should ask the local administration about the legitimacy of the business.

As for the area of ​​the room, here you rely on the scale of your project. If you do not plan to rent out more than 7-10 units of transport, then 20-25 square meters will be enough for you. For other scales, take care of a larger area of ​​the room.

The rental price will largely be determined by the characteristics of the region and the distance from the center. Therefore, it is difficult to talk about the average price per square meter.

Step #3. Purchase of equipment.

At this stage, it is very important to accurately analyze the competitive market and determine its strengths and weaknesses.

It is also equally important to clearly define the target audience. You can purchase vehicles of different price segments and, accordingly, determine a differentiated pricing policy.

For a budget group of tourists you will rent one type of transport at a lower price, for professionals - a more expensive one.

You shouldn't buy a lot of bikes at once. Please note that it will take some time before the business starts operating and creates a constant flow of customers. In order to start, 10-15 pieces will be enough.

Buying bicycles

With increased demand, you can always buy the required number of bicycles. In addition, by this time you will already see from which price category bicycles are more popular.

You should also not buy deliberately cheap transport. Firstly, you immediately discredit yourself as a quality service in the eyes of the client. Secondly, after just a few weeks of active use, you will have to spend money on vehicle repairs and replacement of spare parts.

Select the average price segment, paying attention to the following indicators:

• frame height (within 18-20 inches);
• lightweight durable metal;
• good shock absorbers;
• reliable braking system;
• The model range should contain not only men's, but also children's and women's bikes.

For the range of your bike park, you can buy models from the “street” category (street) and mountain bikes. In the process of implementing a business, you will see which models are the most popular and will be able to supplement this model range.

As for costs, this, of course, will be the most expensive part of the project.

The average cost of one medium-market bicycle is 10-15 thousand rubles. To purchase 10 bicycles, you will need 100-150 thousand rubles.

A little advice. Considering the seasonality of business, it is best to purchase equipment in winter. At this time of year, manufacturers offer minimum prices for this group of goods.

The following items should also be included in the category of equipment expenses:

• helmets;
• bike bags and backpacks;
• repair tool;
• pumps.

Step #4. Personnel search.

In this part of the implementation of the business plan, you will not encounter much difficulty, since this business does not require certain qualifications. To perform the functional duties of an administrator or service seller, it will be enough to have a minimal understanding of bicycle transport.

Personnel search

Keep in mind that you may need a technician who will periodically check the technical condition of the vehicle, change spare parts, service bicycles, etc.

Depending on the flow of clients and the scale of the business, you can do it in two ways:

• Hire a permanent staff member whose functional responsibilities will include transport maintenance and delivery of bicycles to clients.
• Invite a technician at a certain time and pay for piece work.

When searching for personnel, focus on the following requirements:

• pleasant appearance;
• communication skills;
• politeness and ability to provide instructions;
• responsibility and discipline;
• knowledge of bicycle basics.

Permits and documents

Business registration

Start by registering an individual entrepreneur - this is the most preferred form for a young business. Simplified taxation system or UTII.

List of basic documents for registration

• Certificate of registration of individual entrepreneur or LLC
• Certificate from the State Statistics Committee on the assignment of statistics codes
• Certificate of registration with the tax authority
• Certificates for bicycles and equipment
• Lease or transfer of ownership agreement
• Agreement for the provision of laundry services
• Employment contracts with employees

Stage No. 5. Search for sales channels

Advertising determines the success of any business and future profits. You can, of course, open a bike rental shop and wait for word of mouth to start working. Or you can take the situation into your own hands and organize an advertising campaign in order to attract as many customers as possible.

Bicycle rental

Study the actions of your competitors and analyze how they advertise their services.

It is difficult to give advice here regarding the search for advertising channels, since everything depends on regional characteristics.

The most popular way to advertise this business is:

• distributing leaflets in crowded areas;
• advertising in public transport;
• advertisements in newspapers;
• billboards;
• promotion on social networks;
• partnership programs.

Considering that the bulk of the business is built on regular customers, be sure to think about a system of discounts, bonuses, etc. It should be interesting and profitable for clients to return to this particular bicycle rental point.

And, of course, don’t forget about advertising the rental point itself. The sign must be noticeable and attract people's attention. You can take a creative approach to implementing your business and initially hire a person who will invite tourists to use rental services.

Risks associated with organizing bicycle rentals

The bicycle rental business is associated with risks, these include:

• Bicycle theft . However, you can protect yourself from this as much as possible. An agreement is concluded between the tenant and the landlord, in which all controversial issues are discussed, the full name and place of residence are entered. In addition, a photocopy of the tenant's documents is made. In some rentals, renters are asked to leave original documents or a large sum of money as a deposit. In most cases, this is enough for the rental company to return the rental equipment.
• Bicycle breakdown . This nuance should be discussed in the agreement concluded with the client when issuing the equipment. Experts advise the bike rental owner to take responsibility for the breakdown. In most cases, it is not the client's fault. Bicycles are rarely broken on purpose. Removing responsibility from the renter will help reduce the number of dissatisfied clients to a minimum and increase the prestige of the rental in the eyes of visitors.
• Late return of equipment . This nuance should also be spelled out in the agreement. A fine should be imposed on a client who neglects the agreed conditions. Its amount must be specified in the agreement.
• Tenant injury . To protect yourself from liability, the agreement must contain a clause stating that all responsibility for possible injuries while riding lies with the client. However, before the equipment is released, the tenant must be given a safety briefing. This must be noted in the appropriate journal. At the time of delivery of the bicycle, both parties must ensure that it is in good condition.

It is impossible to predict all risks. However, by protecting himself as much as possible from the majority, an entrepreneur can count on making a profit without surprises.

Financial plan

This part of the document reflects all costs associated with the implementation of a business idea. We will give an example of an estimate for a bicycle rental station in the amount of 15 pieces for a city with a population of 300 thousand people. The estimate is approximate and depends on the scale of the business and location of the item.

• registration of documents and certificates will require about 10,000 rubles;
• monthly rent of premises – 10,000 rubles;
• transport and purchase of other equipment – ​​160,000 rubles;
• payment for two employees - from 30,000 rubles;
• repair work - 15,000 rubles;
• advertising campaign (for the first month) – 5 thousand rubles.

TOTAL: 230 thousand rubles.

We calculate income and expenses

Production plan

Modern bicycle models are the main means of producing rental services. They are purchased in bulk in quantities of 30 pieces according to a given range of machine types.

The demand for bike sharing services has a pronounced seasonal dependence. Peak sales occur in the spring-summer and early autumn periods. Bicycle rentals are most actively used in the evening, for an average of 3-4 hours.

During the winter period, equipment undergoes maintenance, is lubricated and sent for storage. In the spring it is re-opened.

To repair components and parts of bicycles, qualified specialists of the relevant profile may be involved. It is recommended to invite such a specialist to your staff; then, in addition to bicycle rental services, you can offer minor maintenance and repair services for bicycles, including to owners.

This business plan for bicycle rental with calculations provides for the following revenue volumes:

These are the maximum figures for the summer period. Due to seasonal fluctuations, revenue is expected to drop by 30-70% in the spring and autumn months, depending on the weather. Off-season months: December to March. snowmobile and ATV rentals for the winter months . The service will be used by hunters, fishermen and outdoor enthusiasts.

Income amount

This is perhaps one of the most interesting points that directly indicates the profitability of the business.

Many investors and business partners begin studying the document from this chapter. Here it is important to set the price correctly so as not to dump, but at the same time not to underestimate profits.

Additionally, you can offer clients related services that will increase your competitive advantage in the market and at the same time increase your income.

It could be:

• organization of outbound tourist routes;
• invitation of guides and tour guides;
• development of personal routes to attractions;
• organization of cycling quests, etc.

On average, one bicycle rental point (at the rate of 15 pieces per month) brings the owner about 100 thousand rubles per month. Of this amount, you will have to pay about 60 thousand rubles for expenses.

40 thousand rubles remain. The payback period for such a business will be 6 months, which is quite good from the point of view of investing money.

Video. Business bike rental

Eventually

The main advantages of this project should be recognized:

• Low level of investment.
• A good location for a bike rental point.
• New fleet of modern bicycle models.
• Having your own website to promote services on the Internet.
• The ability to ensure high consumer loyalty through the use of new bicycle equipment for rental.
• Possibility of further expansion of the enterprise.

These advantages make it possible to ensure high profitability and efficiency of the project, which is clearly confirmed by the calculations performed.

The estimated payback period is expected within the first season. During the 2nd and 3rd seasons, you can earn, according to a weighted average, about 200 thousand rubles in seasonal months. From the 3rd season, a gradual renewal of the bike park begins. In the future, this process will be constant. Every year it is planned to purchase new bicycles, increasing the fleet, and remove 30% of the most worn ones from circulation.

Important points

Considering the specifics of this business, for its successful implementation it is important to consider the following points:

1. Before issuing each piece of equipment, it will be necessary to provide instructions. The client must sign in the appropriate box indicating that he has completed the safety training. This is a mandatory requirement, failure to comply with which can lead to serious problems in the event of an accident.
2. In order to increase the security of the service, it is necessary to take care of the return of the vehicle by the client. To do this, it will be necessary to conclude an agreement with each client, which covers all situations, including breakdown, damage to the integrity of the case, etc. This agreement must necessarily reflect penalties for late return of the bicycle or for returning it in improper condition.
3. Each client must provide a copy of their passport when registering for rental services, provide their residential address, and leave a contact phone number.

Conclusion

Bicycle rental, despite the simplicity of the idea, is a new direction that has not yet fully filled the market.

With proper business organization, studying the competitive market and offering high quality service, you can receive passive income from 40 thousand rubles per month.

Services

The point provides car rental for various categories of users as its main service. The rental period ranges from 1 hour to several days. The car rental agreement is drawn up directly by the administrator, the bicycle is provided to the client on the security of a passport or other document identifying the tenant. It is also permissible to conclude a rental agreement without collateral of a passport, with the presentation of a photocopy of the document.

In addition, clients are charged a security deposit of 3 thousand rubles, which is returned to the tenant in full after the end of the rental period. If technical malfunctions or damage to the car are detected at the time of its return to the rental point, the costs of restoring and repairing the vehicle are reimbursed from the deposit. The amount of compensation is calculated according to the cost of repairing or restoring the bicycle.

It is stipulated that when signing a lease agreement, the client must familiarize himself with the price list of repair services for the most common types of equipment damage.

The following prices for bicycle rental services are established:

Considering that over 80% of users prefer to rent bicycles for no more than 3-4 hours, the provision of discounts will be sporadic.

In addition to bicycles, for an additional fee, tenants will be given a full or partial set of protective attributes: a bicycle helmet, knee pads, shoulder pads, etc.

The bicycle rental agreement stipulates that if the terms for returning the vehicles are violated without prior notice, the client will be charged a penalty in the amount of 10% of the cost of the rental period, equal to the period of delay (rounded to the nearest hour).

Calendar plan

Strict adherence to the calendar plan will allow the bike rental to open by the beginning of the season.

How to choose the right place to rent?

Much also depends on the correct selection of the location for organizing the future rental. Only its proper location will allow you to get the maximum influx of customers who come to use the service.

Therefore, an entrepreneur who wants to make a large and quick profit, as well as quickly recoup his financial investments, must locate rental points where there is a high level of traffic. The city center is best suited for these purposes, for example, areas near large shopping centers, parks, and so on. A potential client should see the bike rental from afar, so the place will have a bright, colorful, memorable sign.

To store vehicles, you will need to additionally rent a small, closed room. The place for subsequent storage should not be too far from the rental, so that you do not have to overpay for the daily transportation of bicycles. As a rule, a regular garage is used for this purpose, where, if necessary, all necessary repairs are carried out.

Location

Experts do not recommend organizing bicycle rentals in small towns with a population of less than 50 thousand. The exception is resort centers with cycling routes interesting for tourists.

Look for a location for your company near green areas, parks, and tourist centers. An important point is the vibrancy of the area and the popularity of the place among city residents. Also, check with your city hall about the zones where cycling is allowed. These areas will become the field for your activities.

The premises can be rented. If there are no suitable buildings in the location you like and have the potential, consider renting a trailer or installing a prefabricated pavilion. Minimum area – 20 m². It should accommodate bicycles, a workplace for an employee working with clients, and a repairman. Try to organize security.

How to start a bike rental business?

The first thing you need to do to start your own bike rental business is to buy vehicles. User demand will directly depend on the quality of the offered range, as well as the condition of the bicycles themselves. For the first time, it is enough to purchase five to six units of transport. To make your life easier in the future, when the need arises to repair your vehicle, it is better if all purchased models are of the same brand. It is also worth buying a certain number of spare parts along with the bicycles.

There must be several models so that clients have something to choose from. The average range should include children's options, mountain, sports models, as well as vehicles designed for off-road travel. The main task of an entrepreneur is the need to reach as large an audience of consumers as possible. This is the only way he can significantly increase his income level.

You should not buy too expensive models. As a rule, the majority of clients are children and people who just want to keep themselves busy for a while; professionals usually use personal transport. Therefore, purchasing expensive professional models is considered inappropriate. A novice businessman may limit himself to purchasing used vehicles from abroad, since they are considered to be of higher quality and cost less than domestic models. Over time, the number of bicycles should be increased to ten to twenty units.

Risks and payback

The main risks of opening a bike rental point include:

• equipment theft;
• damage to equipment;
• low attendance.

The first two risks scare novice entrepreneurs, but drawing up a rental agreement and registering bicycles will reduce these risks to a minimum.

A high-quality advertising campaign and a good choice of location for the rental point will help you always have a large number of visitors. The good condition of the bicycles and the friendliness of the administrator are the guarantee that people will come back to you again to rent a bicycle.

The average payback time for a bike rental facility is 4 months.

How to register your business?

Any activity must be legally registered by the relevant authorities. It is best for newbie businessmen to opt for the first level - individual entrepreneurship; more advanced users can open a limited liability company.

The process of registering an individual entrepreneur, when compared with an LLC, is much simpler; it requires fewer documents and material costs. Therefore, entrepreneurship is suitable for small rental companies. It should also be noted that you should not collect and prepare documents yourself; it is best to entrust this task to an experienced lawyer.

Main risks

The most important danger for rental shops is theft. When concluding an agreement with a client, enter his passport details. A common practice is to deposit a certain amount as collateral. You are unlikely to be able to demand the full price of the bike; the standard option is 1/3 of the cost. The owners of some rental companies require a driver's license or other important documents as collateral. But these methods will not protect you from fraud. You may be provided with fake documents. If there are competitors, clients will choose a company that does not require a deposit.

Dishonesty should also be feared on the part of employees. They can hand over bicycles without concluding a contract or indicate shorter terms in the documents, taking the difference for themselves. If you have the slightest suspicion, you can work on your own for a while. If, under the same weather and other initial conditions, the difference in profit is significant, you should think about changing the employee. Decent wages and strict control will allow you to avoid such situations.

Profit also depends on weather conditions. Both rain and heat are not conducive to comfortable cycling. You are not able to influence this.