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Fancy opening up a bike shop with me?

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  • February 28, 2011 at 6:39 pm #13155
    jonnyroadbike

    Ever dreamt of opening up an awesome bike shop in the centre of London? ….me to
    Over the past year, myself and my business partner have been setting up the contacts, finances and location for a bike shop in the centre of London. Everything is in place. The brands, location (lease), and bank loan.
    However, at the last moment, my partner has just pulled out on me. He feels he can’t risk the capital required to start it up and is worried about the risk of competition in the area.
    I can’t afford to do this by myself and the bank loan is predicated upon a certain capital input by the owners. I only have half of that money.
    So, I was wondering whether anybody reading this would like to go in with me?
    You’ll need to be located in London, over 25, have over £100k (not borrowed), a good knowledge of bikes (preferably road), and preferably working experience in a bike shop or a retail environment (not a must). You’ll also need to understand that there’s a risk the venture wouldn’t succeed….
    Obviously this is a long shot, and it’s less than ideal to be starting a business with somebody you’ve never met. But, if you are, or know, somebody that is seriously in a position to do this please do get in touch.
    I’d stress, serious enquiries only please, if you’re under the age of 25 it’s very unlikely we’d be able to work together.
    Believe me, having stepped off the corporate ladder to set this thing up, I can tell you, it’s not something you’ll regret…..
    Please email if interested

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  • March 23, 2011 at 11:53 am #641233
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    one_bad_mofo

    Quote:The comment from

    The comment from 0ne_bad_mofo was:
    “I don’t want to sound like I’m weeing on your parade but £100k plus a bank loan to start up a bike shop! WTF!”

    I want to make it clear that the shop would be opened with more than £100k. I was asking that anybody interested should have at least £100k. So their stake of over £100k plus my stake plus a bank loan equals considerably more than £100k.

    Damn the internet and it’s lack of nuance. What I was trying to point out is that the sort of outlay you’re suggesting as a start-up is way more than most cycle businesses begin with. I know I once started a business in the bike trade* and I know others who have done the same.

    It makes me think of the old joke. How do you make a small fortune in the bike trade? Start with a large one.

    If you decide to go for it the best of look.

    * I ran the business for five years but the economic situation globally and the time invested/money returned equation wasn’t working out. I didn’t lose money but I didn’t really make any either and I wanted to get a socail life back. 😉

    March 22, 2011 at 11:18 am #641231
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    jboyslick

    I have a mate who owns a bike
    I have a mate who owns a bike shop down here in Bristol.

    Its not about the bikes its about the way you run the bike shop.

    People buy people, why any one would go into Evans or Halfords over a LBS is completely beyond me unless its just for something ancillary like an inner tube of Knog back light.

    The local bike shop ‘should’ be the hub of the local biking community with countless opportunities to cross sell during shop rides & social gatherings.

    Opening your own bike shop is a lifestyle choice & truly unique opportunity, fair play my son, get on and do it.

    I wish you the best of luck!

    Rgds James

    March 12, 2011 at 8:19 am #641229
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    SQUADRA

    i wish you well with your
    i wish you well with your business idea.

    perhaps a discussion with these guys might provide some like minded direction?
    they are seeking premises, you may have mutual interests.
    Just a thought.

    http://www.comtat.co.uk/about.asp

    March 10, 2011 at 9:49 pm #641227
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    Cervelo12

    Jonny, Firstly good luck with
    Jonny, Firstly good luck with finding your partner and to acheiving your goals. It doesn’t matter how many chain stores are in central London you will always have some business especially if you set yourself apart from the chainstores – look at condor and mosquito. I’m a bit worried about why you need so much investment to start up unless your looking at a huge square footage premises and the stock to fill it. If this is the case then if you have dreams of selling exlcusive high end brands that set yourself apart from the chains then it just won’t work on this scale. The internet now dominates the bike trade and as someone who has recently started a business in this trade I can vouch that selling a Super Record groupset will bring you the same amount of profit as selling a set of carbon handlebars (about 40 quid) . I’m not saying it cannot work but you will spend alot of money very quickly and the return will be very slow becuase the margins simply aren’t there, so if the motivation is money, don’t do it. If it’s a case that you would just like to be surrounded by bikes 6 days a week my advice would be, keep your 100k in the bank, get a job at bike distributor paying you an ok wage and treat yourself to a nice new bike and a trip to the alps every year out of your 100k savings. The most sucessful independant retailers in this business don’t make much money – check them out at companies house. If it’s your dream then go for it, if it’s a business choice then my advice would be don’t do it. I know you haven’t asked for advice but hopefully you find some of this useful. Good luck.

    March 8, 2011 at 5:49 pm #641225
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    Sven Ellis

    I wish you the best of luck,
    I wish you the best of luck, and I have only admiration for your enterprise and determination. I’m entirely bereft of those qualities, but I have been going into London’s bike shops for 30 years, and I can’t imagine there’s been a tougher time than now to open a shop. The Private Equity chains, Evans and Cycle Surgery, have about 15 shops between them in Zone 1 alone. I presume they work by employing cheap, young staff and using buying power to get discounts from manufacturers, some of whom use price-fixing to prevent internet undercutting/support the bike trade (delete one of above). They market to the bubble of new cyclists in London, topping up bike sales with the fat margins from lights, locks, clothing and those weird things new cyclists wear on their heads. Is that sustainable? Are Boris Bikes cycling’s Spotify? Discuss.
    But you knew that, and you want road bike expertise, so I guess your USP isn’t the mass market. Perhaps you think people with a few bob have nowhere to go beyond Condor. I think you’re right, although for me Condor do a reasonable job. Women of my acquaintance aren’t so keen. But by the time people are spending north of £2k, they may be starting to wonder how much personal service they need and whether they’d sooner save £500 online. Selling bits and stuff? Wiggle etc., not just on price but because the lack of standards means a shop will never have what you want. Repairs? The same guy who’s happy to stump up £150 an hour to change the oil on his BMW begrudges shops £30 an hour for a more skilled job.
    Maybe bikes for triathlon? Triathletes have tons of money, have to get a new bike every year and are kit freaks. But the guy I knew who targeted them couldn’t make it work in London.
    Again. Good Luck. But ask yourself; how many really good pizza places are there in London? Certainly not 15 in Zone 1.

    March 7, 2011 at 3:08 pm #641223
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    jonnyroadbike

    Thanks for the wishes of good
    Thanks for the wishes of good luck guys. That’s one of the reasons why working in a bike shop is such good fun, there’s an inordinately high proportion of nice folk in the cycling world…

    I’ve considered a few options, and actually sounded out a few of the larger outward bounds shops regarding a place in their store. But unfortunately to no avail potholist. Unfortunateyl however, your main expenses when opening a shop arre the stock and shopfit. Even with a space in a pre-made shop you’re likely to incur most of those…..

    But if there is anyone out there is a large shop they want me to go into….;-) please do say. I’m especially interested if you’re willing to offer a peppercorn rent 😉

    March 6, 2011 at 5:37 pm #641221
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    potholist

    If your USP hasn’t been
    If your USP hasn’t been tested in the market yet, could you run something as a concession within another sports store (like the fashion clothes shops do), to see if it has legs ? … while you’re looking for a partner.

    Expensive short term, but cheaper than finding you need to modify your offering when you’ve committed to a full scale plan.

    Probably feels like only half doing the job, but you might get the footfall and loads of feedback; with the big plan sitting in the background, just waiting to be switched on.

    I guess you’ve got most of it sorted, but something intermediate might just give you a chance to get something moving, if the partner search gets frustrating.

    March 4, 2011 at 8:56 pm #641219
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    cavasta

    Good luck from me too. The
    Good luck from me too. The more bike shops the better. =D>

    March 4, 2011 at 7:10 pm #641217
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    BikerBob

    Read all the posts
    Read all the posts above……..all I can say is good luck 🙂

    As usual on forums people are quick to criticise and offer all sorts of “helpful advice & comment” but not a lot else 😀 !

    ….Whoops I suppose that includes me…

    March 4, 2011 at 1:39 pm #641215
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    Simon_MacMichael

    Maybe Old Cranky could hire a
    Maybe Old Cranky could hire a Docklands loft apartment for the meeting, bare brick walls and bereft of furniture other than a chair and a desk with his £100,000 sitting on it 😉

    March 4, 2011 at 1:35 pm #641213
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    jonnyroadbike

    Hi Cranky
    I wouldn’t want to
    Hi Cranky

    I wouldn’t want to go into those sorts of details in an open forum.

    But if you fancy a chat about it I’d be happy to meet up and take you through all the details. Just send me a private email and we can sort something out.

    March 4, 2011 at 12:48 pm #641211
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    Old Cranky

    I’m a lurker with the other
    I’m a lurker with the other credentials. What’s the expected return on investment?

    March 4, 2011 at 12:16 pm #641209
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    jonnyroadbike

    Thanks for the comments and
    Thanks for the comments and advice guys.

    I’m definately looking for an active partner. That’s really why I’m focussing on posting to the forums. I’m after somebody with a great knowledge of bikes who’s interested in starting up their own business.

    If you look across the successful ventures in London, most of the best ones have been started as a partnership.

    There’s a good reason for that. It’s a lot of money. But more importantly it’s a huge amount of work. Large and diverse inventory, time consuming customer service elements such as warranty and the process of selling a bike, not to mention the admin etc….the list goes on…

    It really is a job for 2. I have looked into going smaller and myself, but frankly I’m a bit scared I’ll get snowed under.

    So if you’re a lurker, reading this while tapping away on a spreadsheet in your big corporate office feeling a bit unfulfilled. Go on, give me a mail….what’s the worst that can happen ;-).

    (apart from losing your life savings of course)

    jonny

    March 4, 2011 at 11:19 am #641207
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    Simon_MacMichael

    I’m intrigued, I imagine
    I’m intrigued, I imagine Jonny has some kind of USP built into his business plan but I don’t imagine he’ll be telling us just yet what that is.

    Am I right in thinking Jonny that you are looking for someone to take a hands-on role rather than just a sleeping partner?

    With your background you’ve no doubt gone through the whole route of looking at start-up funding and angel investors, if you don’t manage to secure a private investor is there any possibility of trying to get investment from a (non-retail) business already active in the industry (although that might detract from independence).

    Anyway, best of luck with it and let us know how it all goes.

    March 4, 2011 at 11:01 am #641205
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    potholist

    I was just thinking 100 + 100
    I was just thinking 100 + 100 + a loan adds up to quite a bit.

    I guess you didn’t come here for advice, but having done a few startups and looking at the experience you’ve got, I’d suggest trying to get an investor who has started something from scratch with hardly any money.

    You’ve obviously got the contacts / margins / best sellers / industry knowledge nailed. Its a bit like recruitment though – what you don’t want is 2 of you – that’t not meant as an insult !

    Good luck finding someone.
    If you don’t find someone, why not just start smaller ?

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