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* The calculations use average data for Russia
1. PROJECT SUMMARY
The goal of the project is to organize a bicycle rental office in Rostov-on-Don. Services are aimed primarily at young people (men and women) aged 15-30 years, as well as families with children. It is planned to open two rental points - in the city center and in the recreational area (see Sections 2, 3 of this business plan).
The prerequisites for the successful implementation of the project are the popularization of cycling as a means of urban recreation and the improvement of many areas of the city, including its central part. The project does not require significant capital investments, the project initiator independently performs most of the functions related to the implementation of the project. Project risks are low. The investment attractiveness of the project is confirmed by the integral performance indicators given in Table. 1.
Table 1. Integral performance indicators
2. DESCRIPTION OF THE COMPANY AND INDUSTRY
The project involves the organization of a small business entity in Rostov-on-Don, the main service of which will be the provision of bicycles to the population for rent for up to a day. Rostov-on-Don is a city with a population of 1.1 million people, the capital of the Southern Federal District and the administrative center of the Rostov region. The city is home to cultural and artistic objects, educational institutions, historical monuments - all this attracts visitors pursuing various goals. In the central part of the city there is an extended pedestrian zone - st. Pushkinskaya, which is a landscaped boulevard with cafes, restaurants and other infrastructure. Thus, locating a bicycle rental here seems to be a highly feasible solution. The rental point has a branded mobile rack for the administrator, as well as a rack for bicycles, designed for 15 units. The second rental point is located in the Pervomaisky district of the city, directly at the entrance to Aviator Park, which has been a recreational area equipped for cycling since 2014.
Storage areas are provided for storing racks and bicycles. In the area of st. Part of Pushkinskaya is rented basement(20 m 2) of one of the buildings of the federal university, for which a lease agreement was concluded with the management of the university. Within 300 m from the entrance to Aviator Park, a metal garage located on the territory is rented from a private individual garage cooperative; garage area – 22 m2.
To attract the attention of potential tenants, the counters are decorated in a modern, eye-catching design. A professional designer is involved in its development. The bicycle park consists exclusively of new comfortable city bicycles, 60% of which are for men (most women do not experience any discomfort when riding a men's bicycle), 30% are for women, 10% are for children.
As for the market for such services as a whole, it has been actively gaining momentum in recent years. Young people coming to the city center from residential areas are increasingly renting bicycles for walking. Bicycles are also increasingly being used for family recreation.
With the growing interest in cycling, there is a trend in the market towards purchasing your own bikes. However, compared to using your own bicycle, bicycle rental has a number of advantages, such as low cost of use, no need for routine maintenance, repairs and storage, etc. In addition, even having his own bicycle, a person with average physical fitness is unlikely to want to travel 10-15 km one way in order to ride along the central boulevard of the city. In most cases, city public transport is used for this, and then, on the spot, a bicycle is rented.
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In the city on at the moment There are 18 actively operating bicycle rental bureaus, which do not cover the needs of citizens for rental bicycles. Of these, 12 are located directly within the city boundaries; the rest are in suburban recreational areas. In close proximity to the street. There are 7 bike rentals located on Pushkinskaya Street, officially none from Aviator Park, but at the entrance there are rental points belonging to bureaus located in the city center.
3. DESCRIPTION OF SERVICES
The company provides services for renting bicycles for periods from an hour to several days. Renting and issuing bicycles is carried out at the reception desks located on the street. Pushkinskaya and at the entrance to the Aviators Park. The administrator draws up a rental agreement, the bicycle is issued on the security of a passport or driver’s license and an amount of 3,000 rubles. Upon return of the bicycle, the deposit is returned to the tenant provided there is no damage to the bicycle. If any are found, the amount of repairs is deducted from the security deposit. The tenant is familiarized with the price list for the most common damages at the stage of registration of the lease.
In fact, the company provides only two types of services: renting an adult bicycle and renting a children's bicycle. The cost of an hourly rental of an adult bicycle is 130 rubles, for a child - 100 rubles. When renting for a day/night (12 hours) or a day (24 hours), additional discounts are provided. Considering that at least 80% of renters prefer to rent bicycles for no more than 3-4 hours, discounts do not apply in most cases. In Table. 2 shows basic data on the company's services.
Table 2. Range of enterprise services
If the tenant so desires, a full set of protective equipment is provided with the bicycle. For failure to comply with the deadline for returning the bicycle specified in the contract, the tenant pays its cost according to the price list, rounded to the nearest full hour, as well as a penalty of 10% of the overdue amount.
4. SALES AND MARKETING
The target audience of the project is men and women aged 15-30 years, as well as married couples with children. Cycling in the city center is mostly preferred by young people - single young people in groups, as well as young childless couples. Walks in Aviator Park are mostly preferred by families with children. Based on this, a transport fleet is being formed: at a point on the street. There is only 1 children's bicycle in Pushkinskaya, the remaining 3 are in Aviator Park.
Sales of company services are passive in nature. To attract the attention of potential clients, a catchy design of reception desks is used, developed by a professional designer in a modern urban style. Administrators are polite and behave as correctly and attentively as possible towards clients, which is an advantage of the company. The main thing competitive advantage lies in the most favorable territorial location of rental points.
The condition of the bicycle fleet is also of great importance. Each of them takes place weekly maintenance and a sink. In case of heavy contamination - more often, if necessary.
The price segment in which the company is positioned is medium. The price level is on average at the level of competitors. The difference between the company and most of its competitors is that all the bicycles provided for rent belong to the same class - urban walking ones. This allows us to unify the pricing policy.
5. PRODUCTION PLAN
The company's fixed assets primarily include bicycles. They are purchased in quantities of 30 pieces from a supplier in Moscow. The criterion for choosing is the brand of the bicycle, its model - they should be as comfortable as possible for long rides around the city. Price is also a selection criterion.
Bicycles are stored in rented premises, in close proximity to the sales points. The area of the premises is 20 and 22 m2 (see Section 2 of this business plan). Administrator desks are also stored in the same premises. The stands are made foldable for ease of transportation and storage. A professional designer is hired to develop the design of the racks.
Demand for bicycle rental services, of course, has a pronounced seasonality with a peak in late spring and early autumn. In summer, demand occurs mainly in cool evenings. On average, the calculation of project profitability assumes an average usage of 3 hours per day for each bicycle.
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In the off-season, bicycles are stored in the same premises as in the summer. Before this, conservation is carried out - cleaning and lubricating all components, loosening cables, installing bicycles on special stands. Before the season, re-preservation is carried out - repeated maintenance, tightening of nodes, etc. Maintenance is carried out by an invited qualified specialist.
Table 3. Production plan
6. ORGANIZATIONAL PLAN
The project initiator serves as a manager and also as one of the administrators. Accounting is outsourced. The functions of an administrator can be performed by an employee without special qualifications. However, given that the image for bike sharing has great value To re-attract clients, receptionists must appear neat, be friendly and be efficient in their duties. The age of administrators is 18-30 years. Work schedule: 2/2 shifts, from 10.00 to 22.00. In addition, administrators are seasonal employees hired from April to October.
Table 4. Staffing table and wage fund
Job title |
Salary, rub. |
Number, persons |
Payroll, rub. |
|
|
||||
Point of sale administrator |
||||
Total: |
RUB 66,000.00 |
|||
Social contributions: |
RUR 19,800.00 |
|||
Total with deductions: |
RUB 85,800.00 |
7. FINANCIAL PLAN
The financial plan is calculated for a period of 5 years, taking into account all costs, income, tax and loan payments, etc. Investment costs for the project amount to 730,000 rubles, of which 600,000 are the project initiator’s own funds. The bulk of the funds are spent on the purchase of bicycles, as well as on the development and promotion of the company’s website (Table 5). The lack of funds is covered by a bank loan for a period of 36 months at a rate of 18% per annum.
Table 5. Investment costs
NAME |
AMOUNT, rub. |
|
Equipment |
||
Reception desk |
||
Bicycle rack |
||
Bicycles |
||
Uniforms for administrators |
||
Obtaining licenses and permits |
||
Working capital | ||
Total: |
730,000 ₽ |
|
RUB 600,000.00 |
||
Required borrowed funds: |
130,000 ₽ |
|
Bid: |
18,00% |
|
Duration, months: |
Conditionally, variable costs are not available for the project, since it is quite difficult to take into account the costs of each hour of renting a bicycle. For this reason, all expenses are considered fixed. Depreciation takes into account the cost of fixed assets and is calculated using the straight-line method for 60 months.
Table 6. Fixed costs
A detailed financial plan is given in Appendix 1 of this business plan.
8. EVALUATION OF EFFECTIVENESS
The effectiveness of the project and its investment attractiveness are assessed based on the calculated financial plan by integral performance indicators, such as net present value (NPV), profitability index (PI), internal rate of return (IRR), etc. (Table 1)
To take into account the value of money over time, a discount rate is used, set according to the inflation rate, possible risks, etc. For of this project it is accepted at the level of 5%, which is due to relatively low risks, as well as the fact that the service is not innovative, but is well known to the market, the market has a stable growth trend, and the bulk of investments are made in tangible assets, which are a guarantee of return on investment.
The payback period for the project is 17 months. The net profit for the fifth year of project implementation is 766 thousand rubles, which is acceptable for small businesses with self-employment. The NPV of the project significantly exceeds investment costs, which indicates the effectiveness of the project. IRR exceeds the discount rate, and PI > 1 - these values also indicate the investment attractiveness of this project.
9. RISKS AND GUARANTEES
To take into account all the risks associated with the project, a SWOT analysis was carried out, taking into account all micro and macroeconomic factors.
Table 7. SWOT analysis of the project
Low level of investment Convenient location of sales points Systematic approach to the design of outlets and personnel selection New bike park high quality High quality website to attract additional clients |
Relatively small bike park Pricing policy higher than competitors Current competitive environment |
Expansion of the park over time Attracting repeat customers through loyalty programs Ensuring loyalty through high quality fleet |
Failure to fulfill the sales plan Adverse weather conditions Dumping competitors The emergence of new competitors in the immediate vicinity |
10.APPLICATIONS
APPENDIX 1
Financial plan
Denis Miroshnichenko
(c) - portal of business plans and guides for starting a small business
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In this material:
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 it. Taking into account all these points, businessmen have a desire to open a bicycle rental service. Similar business It will not only bring pleasure to those who like to ride, but will also allow them to earn good money.
Drawing up a bike rental business plan
Despite the fact that bicycle rental is a seasonal business, it is very profitable. The main activity is the rental of bicycles. The most suitable period for this is from mid-spring to mid-autumn. During this time it will be possible to return the investment cash and get a decent profit. This requires:
- Business registration. The first step is to register your business so that you can pay all taxes. This will require permission from the city authorities.
- Bicycle purchasing plan. It is very important that the equipment is of high quality. This will allow customers to enjoy the ride, and not worry that the hairbike may break at any moment and injure them. It is not necessary to purchase expensive models. Today you can find reliable “iron horses” that will pleasantly surprise you with their price and quality. You can also provide for the rental of scooters, hoverboards, roller skates and seats for children that are attached to the trunk of a bicycle.
- Target audience. It is necessary to clearly understand for whom bicycles are purchased - for children, students or adults. Another important point that must be taken into account when developing a business plan is the location. It's about where customers will ride and what roads they will drive on.
- Personnel selection. Bicycle rental requires the following personnel: rental representative, PR manager, equipment repair mechanic, security guard, accountant.
- Renting premises. After purchasing bicycles and hiring staff, you need to start choosing premises for your business. Less expensive will be a small room located near the parking lot, where it will be possible to place “iron horses.”
- Advertising. One of the most important moments is to attract customers. To do this, you need to take care of good advertising. Great idea— organizing a spectacular show during which professionals will perform stunts on bicycles. This will not only get people interested, but it will also show them the excellent quality of your equipment.
Cost of starting and maintaining a business
The bulk of the costs when starting a bicycle rental service will be the purchase of equipment and advertising. An entrepreneur will have to invest about 400 thousand rubles in his business. These funds will be spent on:
- purchase of bicycles;
- purchase of equipment, inventory, tools and supplies;
- renting premises for storing all of the above;
- renting a site for a rental point.
Regarding current expenses, these include:
- employee salaries;
- rental of premises and land;
- payment of taxes;
- bicycle repair costs.
Income amount
The bulk of the profit will come directly from the rental of bicycles, which are issued as collateral. As a last resort, the client can leave a passport or any document that proves his identity. Rental payment is hourly. For example, the cost of 1 hour is 100 rubles, and 2 hours - 200 rubles. If the client broke vehicle, he is obliged to redeem it or pay for it full cost repair. TO additional income This includes advertising, organizing cycling quests, excursions and bike tours. The average monthly profit from such a business can reach 120 thousand rubles, of which approximately 60 will be spent on expenses. In total, the net profit will be from 60 thousand rubles per month.
Payback period
The profitability of the bike rental business is high - within 45-55%. In this case, the payback period is 3-6 months. Bicycle rental is a new, interesting and popular type entrepreneurial activity, thanks to which you can not only make good money, but also introduce people to leading a healthy lifestyle. Such a business is socially significant.
It is necessary to take into account possible force majeure, equipment breakdowns, etc. To cover unforeseen expenses in the first year of work, set aside some part of the earnings in a stabilization fund. This will avoid unexpected financial troubles.
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If you have a small equity and a desire to start a business, we recommend considering the idea of opening a bicycle rental point. IN business environment It is considered that this is a youth type of income, and is well suited for beginning businessmen. Insignificant material risk, constant work with clients and regular income are what you need to learn how to earn money on your own.
Organizing a bike rental is not difficult. However, despite the comparative simplicity of such a project, there are some nuances that need to be taken into account when deciding on the feasibility of working in this direction.
Bike sharing as a business does not require too complicated organization. To get started you will need:
- register as an entrepreneur (check out);
- rent a room suitable for storing and servicing bicycles;
- purchase bicycles, equipment and accessories necessary for cycling;
- organize an advertising campaign.
This is the required minimum, with the condition that the rental organizer himself will be responsible for the issuance of transport, its acceptance and repair.
If the station owner does not have the skills and knowledge necessary for the current and overhaul bicycles, you will need to additionally hire a mechanic.
Important! If an entrepreneur planning to open a bicycle rental is already registered as an individual entrepreneur for another type of activity, before opening a rental, he needs to change or add the type of activity code according to OKVED 71.40.4 (“Rental of inventory and equipment”) and enter information about the new code in the Unified State Register of Individual Entrepreneurs.
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Formation of material and technical base
The main thing for the rental station is bicycles. There shouldn’t be many of them, but they should be different so that each client can choose transport for their level.
It is not profitable to rent low-cost bicycles, as there is a risk of frequent breakdowns. The acceptable price range is from 20 to 50 thousand rubles. Too much expensive equipment not worth purchasing.
The station's assortment should include the following bicycles:
- children's;
- women's;
- cross;
- mountain;
- highway;
- cruisers.
It is enough to rent two or three units of each type of bicycle transport. On average, the cost of bicycles will be about 500 thousand rubles.
Accessories (helmets, gloves, bags, pumps, etc.) as well as consumables repairs will cost approximately 100 thousand rubles.
Purchasing premises for bicycle rental is unprofitable. Such a transaction will require large investments, and there is not much practical benefit in this acquisition.
Moreover, in lately Rental entrepreneurs rent pavilions to house bicycle equipment only during the warm season, and during winter period All equipment is stored in specially equipped garages. This significantly reduces operating costs.
If you are planning to open a bicycle rental as a way of investing, in which the entrepreneur only makes a profit, and organizes the commercial process employees, then the estimated costs will increase significantly to pay for the labor of one or more specialists.
How to attract clients
Best marketing ploy for bike sharing - install a station in a good, busy place.
How and where is the best place to organize bicycle rental? The answer to this question depends on the characteristics of the particular settlement. Judging by general trends, That most in demand Bicycles are used at rental stations located:
- at the entrance to city parks;
- in areas of cities equipped with bicycle paths;
- in recreation areas near city lakes;
- on busy areas in residential areas, etc.
Before you open a bike rental, you should make sure that potential clients had the opportunity to receive information about the start of a new project. To solve this problem you will need:
- installation of information signboards and signs;
- distribution of advertisements and leaflets.
When can you expect profit?
A good indicator for the payback of a bicycle rental is one working season, if about 600 thousand rubles were initially invested in the station.
In order for the rental to earn 150 thousand per month, each bicycle (of the 20 units purchased) must be used for about 40 hours. This is approximately 1.5-2 hours a day with an average cost of 1 hour of 150-200 rubles. The figure is small and quite achievable in even a not very large city.
With active work for 6 months, the entrepreneur will have the opportunity to fully cover the investment of 600 thousand rubles during this period.
Payment for staff work per month is about 30 thousand rubles.
Rent, and utility bills– up to 20 thousand rubles.
Do not forget that force majeure, equipment breakdown, illness, etc. are possible. To cover unforeseen expenses in the first year of work, it is recommended to set aside part of the earnings in a kind of stabilization fund in order to insure yourself against any financial troubles.
New ideas in the work of bicycle rentals and the principles of setting tariffs for services are discussed in the following video:
Bicycle rental is profitable business, which has been actively gaining popularity recently. Such a business has its regular customers, it quickly pays for itself, and to open it you will need several basic documents and a minimum of investments. To implement a business plan, the idea of which is bicycle rental, you will need capital in the amount of 230,000 rubles. The payback period for the business will be on average 5 months.
Bicycle rental – seasonal business, but quite profitable. The main activity is bicycle rental. In addition, you can offer various related products. Cycling is considered a more suitable activity between April and October. During these 7 months you will be able to return your investments and make a good profit.
Instructions on how to open and what you need to do it
How to open a bicycle rental and what needs to be done for this? You especially need to pay attention to the following points: documentation, searching for premises, purchasing equipment and selecting employees - this is the minimum required to open your own bike rental company.
Stage 1 – registration and preparation of documents
How to organize bicycle rental? To organize this business you will only need to register with tax office IP. For this you need the following documents:
- statement;
- passport;
- receipt for payment of state duty - 800 rubles.
Bicycle rental belongs to a service sector in which you can work under the simplified taxation system (STS):
- simplified tax system 6% – individual entrepreneur must pay 6% of all money earned and contributions to the Federal Compulsory Medical Insurance Fund, Pension Fund;
- STS 15% - an individual entrepreneur must pay 15% of the difference between income and expenses, as well as contributions to the FFOMS and the Pension Fund.
List of documents you will need to open a bicycle rental business in 2018:
- individual entrepreneur registration certificate;
- enterprise passport and its details;
- tax registration certificate;
- premises rental agreement;
- medical records of employees;
- fire department permit;
- permission from the sanitary and epidemiological station.
Stage 2 – search for premises
Bicycle rentals should be organized in crowded places. It is advisable to find a place near a park or some tourist center. The area should be lively and popular with residents or visitors to the city. But first you need to find out from the city administration whether it is possible to ride a bicycle in the zone you have chosen. You will also need to rent a room, minimum area which should be 20 sq.m.
Stage 3 – purchase and installation of necessary equipment
You don't need to buy a lot of bikes at once. For starters, 10-15 pieces will be enough. In the future, if demand is high, it will be possible to purchase several of the most popular types. Basic requirements for bicycles:
- The frame size should be 18-20 inches;
- Durable, lightweight metal;
- Shock absorbers;
- It is advisable to purchase street models because they are comfortable, durable and have reliable wheels;
- It is necessary to have an assortment of women's and children's models;
- Cheap brands of bicycles break down quickly, while high-quality ones are more comfortable and will attract more customers to your location, so you shouldn’t skimp on this.
A good bicycle for adults costs 10-14 thousand rubles, and for children – 4-5 thousand rubles. This means that the purchase of bicycles will require about 160 thousand rubles.
Best buy necessary equipment in winter, when manufacturers offer big discounts. You can also save money by purchasing multiple units in one place. You definitely need to buy tools for repairs, because after each rental you need to check the condition of the bike and carry out preventive maintenance.
Stage 4 – selection of employees
When opening a company, two people will be enough to work with clients in shifts, one of whom may be the owner himself. Often, bicycles that are rented break down for one reason or another and need to be repaired. And since the ideal technical condition of a bicycle is the most important criterion for the success of this business in permanent job You need to hire a bicycle repair specialist. To lead correctly financial statements, it is not necessary to hire a full-time accountant; this work can be performed by a specialist under a contract.
Stage 5 – promotion and advertising
In addition to renting bicycles, you can offer accessories and protective equipment to customers. It is advisable to install a refrigerator with drinks and make seating areas. Such techniques will increase business profitability by 2 times.
- bright sign;
- banners;
- leaflets;
- announcements;
- creating a website or group in social networks;
- it is advisable to take part in public life cities.
Financial plan
Let's calculate the approximate costs required to implement a bicycle rental plan for 15 bicycles with a population of 350 thousand people:
- Registration of individual entrepreneurs and all necessary certificates – 10,000 rubles.
- Rental fee – from 10,000 rubles.
- Equipment – 160,000 rub.
- Salary of two employees – from 30,000 rubles.
- Repair work– 15,000 rub.
- Unforeseen expenses - 5,000 rub.
As a result, approximate initial capital to implement the bike rental plan will be approximately 230,000 rubles.
Possible risks
The bike sharing business is accompanied by the following types of risks:
- Theft. To avoid this, an agreement is concluded in which the client’s passport data is recorded, or the client pays a certain amount as collateral. However, none of these methods can insure you 100% against fraud.
- Unscrupulousness of employees who may give bicycles without signing a contract or indicate shorter terms, keeping the difference for themselves. Such cases can be avoided by good wages and control.
- Weather conditions. Rain and heat are not conducive to comfortable cycling, but you cannot influence this risk factor.
Video “Bike rental: business idea”
You will learn more information about the type of activity considered in the following video.
Everyone has their own hobby. Some people like online games, some like to go on vacation at the seaside, others collect stamps. And if what you love also brings you money, then that’s great!
I have three hobbies: tourism, photography and bicycles. One fine day I decided to open a bike rental. So to speak, two in one: both for the soul - to accustom people to healthy recreation and sports, and to earn money.
Now about the main thing. The first costs were as follows:
1) Opening an individual entrepreneur. I prepared all the papers myself, the state fee is 800 rubles. Then you still have to pay for the year pension fund 20727.53. This figure is for 2014. Plus income tax.
2) Renting premises. I looked for a room for a long time, but I found it on the main street of the city, not far from the park. Area 15 square meters, rent 8,000 per month, entrance from the yard, located in the basement.
3) Buying bicycles. I decided not to skimp on quality. I purchased 8 Mongoose brand bicycles for 13,500 rubles. Total: 108,000 rubles
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The season started in April and ended in October. Much in this business depends on the weather; if it rains, no one will go to the rental, but you can’t predict. Gradually, bicycles wear out and you need to take care of them, carry out repairs, and it’s better to be able to do this yourself, otherwise it will cost you a pretty penny. There is a slight disadvantage that it is not the season all year round, and the rent of the premises must be paid constantly. As an option, you can rent skates, but to do this you need to fill a skating rink nearby. Another option is to rent skis and snowboards, but these are more expensive investments, at least for me.
The first season was average, but the next year there weren’t enough bikes! Over the course of a year, I bought an additional tandem bicycle (they’re not particularly in demand, everyone is probably afraid, but it’s a company image!) and roller skates. I plan to expand!
The most important thing is to leave it with clients good impressions. And then word of mouth will start working for you, and the money will flow in a stream. I have used the services of Biglion several times to expand my audience. With their help, I attracted new users of my bike rental, although for this I had to give 50% discounts.
If we talk about profit, then on a good day it reaches 4,000 rubles, considering that there are only eight bicycles. The first year I worked for a business, now I work for myself.
In addition to rentals, I repair bicycles; I don’t even have to look for clients; they come on their own. I also opened a rental store, and I buy goods on the EBAY website: bicycle racks, gloves, bicycle computers, helmets, glasses, etc.
And don’t forget to get help from the employment center for business development. You need to register with them before opening a company, provide a business plan and receive 58,000 rubles for development. There are a few more additional conditions: you do not have to officially work anywhere, provide a report on the money spent and employ one person.