Starting a bike shop business can be overwhelming, especially if you don’t have any business experience or an idea about bikes. That’s why getting a franchise from an established name like CycleHouse can be a good idea.
Franchising Your Own CycleHouse
The actual costs can vary, but a CycleHouse franchise can start at Php298k (amount listed on their website).
All CycleHouse franchisees are entitled to the following with their franchise package:
- Right to use the brand’s trademark and logo
- Store and product signages and marketing collaterals
- Initial stocks
- Inventory Management System and POS (software)
- Assistance with store design, merchandise set-up, and local market study
- Store opening assistance
- Supervisor, staff and bike mechanic training
- Operations manual on how you can run the business profitably
Aside from the franchise costs, you must also set aside a budget for other expenses, particularly the initial costs to legally set up your business, including:
- Rental or purchase of the shop space
- Shop construction or renovation
- Business permits
- Other possible expenses
Bike Shop Business: Profitable or Not?
Bike shops can be a profitable business, particularly because many people have become bike enthusiasts due to the pandemic. Also, the rising gas prices motivate more people to take a bike, instead.
Plus, the MMDA’s (Metropolitan Manila Development Authority) regular crackdowns against illegal parking spaces also motivate people to choose bikes because you won’t really need a big parking space for that vehicle.
More good news comes in the form of the Philippine government and the World Bank actually investing $1.3 million to create bike lanes to promote biking.
You have a wider customer base these days. That can help drive more traffic and income to your bike shop business.
By finding the right suppliers, you can get the parts at lower prices to receive more profit.
Plus, the best thing about bike shops and other businesses that don’t involve food and perishables is that the stocks stay safe and unchanged even for a long time.
Here’s a video tutorial prepared by CycleHouse to answer the many questions they received about opening and operating a bike shop business: