The factors that are hurting and helping other players in the industry will also impact your business. While you probably can't control all of these external factors, you can control how your business will respond to them.
Our target market is summer visitors to Cape Cod, particularly central Cape Cod. We will be differentiated from competitors in that we will deliver rental bicycles directly to our customers at their motels, campsites, or summer rental residences.
At this point we have assembled a detailed operating plan, including promotional plans. We have arranged access to a station wagon to deliver bicycles and a garage to store them in.
We have started to carefully buy used bicycles in excellent quality at very reasonable prices. Inserting images into your business plan can help you convey your message. Another important differential is that our cost base is dramatically lower than that of our competitors.
For one, we are going to buy used bicycles in a very disciplined way to build our rental fleet, whereas our competitors buy new bicycles. We estimate that we can buy quality used bicycles for approximately half the cost our competitors spend for new bicycles.
We will also have very little labor cost. There are other employees. Bob has ridden bicycles for many years, is handy with tools, and believes he can do most basic bicycle repairs himself.
We will also have very low overhead costs.
We will store bicycles in an old garage previously converted from an outhouse on our family property. Bob will use the family station wagon, only paying for gas, to service the business. Bob also has a good neighbor and friend, Harold Perethian, who runs a large bicycle wholesale business, who lends additional advice and provides wholesale prices for accessories and parts.
We expect the business to be highly profitable and for investors to potentially earn back their investment very quickly. By reinvesting part of our profits from our initial summers, we plan to expand our fleet and increase our advertising, eventually expanding our promotional activity throughout the entire area.
Milestones Complete operating plan developed. Initiate purchase of used bicycles. Complete purchase of bicycle fleet.
Complete delivery of flyers by bicycle to motels and campsites. End of season sale of bicycles being disposed of.
Last day of rental operations for season. However, with the average bicycle dealer deriving just 0. Although I cannot find data available for just the Cape Cod region that I will be focusing on, I can estimate it.
I start with my estimated number of bicycles available for rental of about 1, The majority of rentals are single-day rentals. For simplicity, I will assume all rentals are single-day rentals.
A good graph will always be better than a thousand words.
First I will focus on the key week summer season, when most rentals occur. I estimate from anecdotal information and limited personal observation that, including off-weather days, rental bicycles average a 40 percent utilization rate during the summer season, or in other words, are rented for an average of 28 days.
Then I adjust for off-season rentals. Also, I believe the total possible market is larger, particularly because many rentals are an impulse decision. So every time a new rental stand is set up, I believe the market incrementally expands.Learn what to include in your business plan's company background to explain your history and why you're qualified.
Your areas of expertise in your industry segment; Sample Contract for Professional Service Businesses. What background experience, skills, and strengths do you personally bring to this new venture? Other (specific to your industry) For business customers, the demographic factors might be: Industry (or portion of an industry) Location Size of firm Quality/technology/price preferences Business Plan for Startup Business.
The business background section of your business plan generally consists of two to four sections that present information that is specific to your business.
You may have gathered substantial information about competitors and the industry in general in the course of considering your business plans. A good business plan starts with research into the potential business's industry, competitors and market. This gives the business owner a complete understanding of the playing field.
As a business. Please note that 'Pet Grandma' is a fictional pet-based business invented for this business plan example. For instructions and tips on how to write an Industry Overview for your own business plan, see Writing a Business Plan: The Industry Section, part of my How to Write a Business Plan series.
How to use a sample business plan to write your own plan. If you’re like most small business owners, you’ve never had to create a business plan before.
Find a plan from a similar industry to your business, but don’t worry about finding an exact match. In fact, you won’t find an exact match for your business. That’s because every.