Business plan: bicycle rental as a profitable business. How to open a bicycle rental? Instructions on how to open and what you need to do it

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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.

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 invested funds and make 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.
The 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 aspects is attracting customers. To do this you need to take care of good advertising. A great idea is to organize 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 equipment;
renting premises for storing all of the above;
renting a site for a rental point.

As for running costs, 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 breaks the vehicle, he is obliged to buy it back or pay the full cost of repairs. Additional income 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 sharing 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 of business 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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With the onset of summer, cyclists can be seen more and more often on the city streets. This vehicle is popular among both amateurs and professionals. The bicycle is very practical and comfortable. It is inexpensive, mobile in city traffic jams, and also brings clear health benefits. However, not everyone has their own bike. At the same time, there are quite a lot of people who want to ride it. That is why it is worth thinking about how to open a bicycle rental. This business will not only satisfy the needs of those who like to ride, but will also allow them to make good money.

First steps

What's the best place to start? First of all, a business plan must be drawn up. Bicycle rental requires the creation of a private enterprise. On a small scale, individual entrepreneurship is suitable.

The choice of the form of organization providing services must be discussed when writing a business plan. Before starting work, the enterprise must be registered with the tax authorities.

Rental location

A business plan for bicycle rental must contain a list of points where the service will be provided. There can be many options. One of them involves delivering bicycles to a location specified by the client. In this case, additional transportation charges will be required. You can also stand on the street waiting for a client. This option should also be considered by the business plan being drawn up.

In this case, it is advisable to locate a bicycle rental in the very center of the district or city, in a place where there are a large number of vacationers. The most profitable ways to offer mobile vehicles are:

In amusement parks;
- in resort centers;
- in squares or groves;
- in squares;
- in city parks;
- on the embankments.

Having chosen a suitable place, you will need to rent it. You should also make sure that bicycle riding is allowed in the surrounding area. It is desirable to have at least one bicycle path separating the travel area from pedestrians. But in any case, before you start providing bicycle rental services, you will need permission from local authorities.

Purchase of vehicles

How to organize bicycle rental? You will need to purchase the necessary vehicles for this. The class, quantity and types of equipment required to provide services must be provided for in the business plan.

At first, bicycle rental can be done if you have a small fleet of equipment, which contains four to five units. Getting started will show whether your service is in demand. In case of great popularity, the bicycle fleet can be increased. With increased demand, it will not be possible to purchase the required amount of equipment.

As part of your business, you should also consider renting children's bicycles. They will also be in demand.

What kind of vehicles to buy should also include a business plan. Bicycle rental is unlikely to interest professionals. That is why you should not look at expensive models. However, it is necessary to understand the types of bicycles.

The acquisition of equipment must be subject to a certain rule. It says that you should not purchase more than two units of the same type. It is advisable to buy models in order to ride on rough terrain. Cross-country models with an eighteen- or twenty-inch frame are suitable for this.

At the rental point, it is advisable to offer the client bicycles for confident riding in off-road conditions. To do this, you will need to purchase models with a rear shock absorber. For a successful business, it is important to have women's and children's bicycles in stock.

It is worth considering the purchase of appropriate equipment. It is more profitable to purchase it in winter, when seasonal discounts are offered.

How to open a bicycle rental if the starting capital is small? You can start with the smallest things. If it is not possible to buy several bicycles, try to arrange to rent them from your friends.

Storage

To rent bicycles you will need to rent a small room. Its main purpose will be the storage of vehicles. It is best if your garage is located near the place where the service is supposed to be provided. In this case, the cost of transporting bicycles will be significantly reduced.

The room where bicycles will be stored must be closed. Only in this case will your vehicles not be damaged by cold and snow in winter, or by heat and rain in summer.

Return Guarantee

A contract must be concluded with clients who rent a bicycle. Such a document will ensure the safety of your vehicle. The contract must specify the price, as well as the period when the bike must be returned. One of the essential terms of the contract will be the indication of the amount of the fine. It is imposed for late return or damage to the bicycle.

It is advisable to specify the amounts of the most common breakdowns in the contract itself. In this case, the client will be aware of the consequences of his dishonest attitude towards technology.
The contract must contain information about the client - his full name, residential address, as well as passport details.

Advertising

Entrepreneurs who will deliver bicycles to customers must advertise in local newspapers. You can also paste them on special boards. If bicycle rental is carried out in a specific place, then people will learn about the service themselves. However, in this case, advertising will not be superfluous.

To coincide with the opening of a business, you can organize small cycling competitions and competitions. The holiday will show people how interesting it is to spend their free time with health benefits, in the circle of a cheerful company or the whole family. Commercial organizations in your city can be involved as sponsors.

Tariffs and profits

In order for bicycle rental to be popular, prices for rented vehicles must be affordable to anyone. Let's assume that for ten hours of rental you set the cost of one hundred and fifty rubles. The amount is quite acceptable for a client with any financial capabilities. Don't forget about the fine system.

For every hour of delay, take fifty rubles. Before providing the service, require a deposit of, say, three thousand rubles. This will be an additional guarantee of return. If the bicycles were rented from friends, then give them half of your proceeds. The remaining amount should be set aside for the purchase of your own vehicles.

Basic calculations will allow you to find out the amount of your earnings. With a fleet of ten bicycles, the minimum income per day can be one and a half thousand rubles. This is the case if each piece of equipment was in demand by customers. By giving half of the income to the owners of bicycles, you will receive a net profit of seven hundred and fifty rubles. Soon you will be able to purchase your own vehicles. After that, all income will be yours.

Empowerment

To attract customers, you can come up with your own reward system. For example, when riding with a family, children's bicycles are provided free of charge. It will be possible to set a discount for the client who brings three friends, as well as arrange cheaper rides, for example, on Wednesdays.

An interesting idea is to provide rental scooters, roller skates, child seats that attach to the trunk of a bicycle, etc.

* 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 has a concentration of cultural and art 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. Pushkinskaya rents part of the basement (20 m2) of one of the buildings of the federal university, for which a lease agreement has been concluded with the management of the university. Within 300 m from the entrance to Aviator Park, a metal garage located on the territory of a garage cooperative is rented from a private individual; 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.

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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 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 undergoes weekly maintenance and washing. 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 is, of course, highly seasonal, with a peak in late spring and early autumn. In summer, demand arises mainly in cool evenings. On average, the calculation of project profitability assumes an average usage of 3 hours per day for each bicycle.

Ready ideas for your business

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 a bike share's image is important to re-attracting customers, receptionists must appear neat, friendly and 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 and wage fund

Job title	Salary, rub.	Number, persons	Payroll, rub.


Point of sale administrator

Total:			RUB 66,000.00
Social Security 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 ₽

	Own funds:	RUB 600,000.00
	Required borrowings:	130,000 ₽

	Bid:	18,00%

	Duration, months:

Conventionally, there are no variable costs 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 using 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 this project, it was adopted 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 funds.

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 fleet of high quality bicycles High quality website to attract additional clients	Relatively small bike park Pricing policy is higher than that of competitors Current competitive environment

Expansion of the park over time Attracting repeat customers through loyalty programs Ensuring loyalty through high quality fleet 604 people are studying this business today. In 30 days, this business was viewed 48,611 times. Calculator for calculating the profitability of this business

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 20,727.53 to the pension fund for the year. 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

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 small disadvantage that the season is not 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 a good impression on your customers. 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 profits, 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 several additional conditions: you must not work anywhere officially, provide a report on the money spent, and employ one person.

According to a study conducted by Roland Berger Strategy Consultants, the bike sharing market is expected to grow rapidly in the coming years, averaging 20% per year. To properly organize such a point, you will need a detailed bicycle rental business plan.

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Services

Bicycle rental provides bicycles and related products for rent for a period from an hour to several days.

Administrator functions: arranges rentals and issues bicycles.

The bicycle will be issued after:

familiarization with the price list;
signing a lease agreement;
leaving a cash deposit.

It is important to remember that the requirement to leave documents as collateral is illegal.

After returning the bike, the deposit is returned to the renter provided there is no damage to the bike.

Relevance

Relevance is determined by the fact that:

demand is expected to increase;
the business pays off quickly;
bike rental does not require large investments;
To register a rental, a minimum package of documents is required;
taxation follows a simplified scheme.

Due to the small number of risks and average competition, this business is suitable for experienced businessmen, as an investment of free funds, and for beginning entrepreneurs.

Market description and analysis

There are state-owned bicycle rental points in Moscow and St. Petersburg and are serious competitors for private entrepreneurs.

The number of state-funded bike rental points in Moscow in 2017 increased from 290 to 380 units. In St. Petersburg in 2019, the idea of bike sharing will come true. Residents of the northern capital will be able to leave a rented bicycle anywhere in the city and find them using a mobile application.

But there are no official plans to open state bike sharing in other Russian cities yet.

The number of private bike rental points throughout the country is quite low:

Yekateriburg (19 points);
Krasnodar (19 points);
Perm (14 points);
Novosibirsk (11 points);
Ufa (10 points);
Sevastopol (7 points);
Veliky Novgorod (6 points).

The target audience

Often, when opening a bicycle rental service, entrepreneurs make the mistake of not using the entire range of the target audience and the range of products provided.

This business has a wide audience, since bicycle transport comes in several types:

for preschool children;
for younger schoolchildren;
for teenagers;
for adults.

The audience of cyclists includes both city residents and tourists who rent a bike to save on transport and see the city.

Competitive advantages

When developing a bike rental business plan, it is important to research nearby rental locations. As a rule, they have a number of disadvantages.

The competitive advantage will be:

favorable territorial location of the rental point;
availability of bicycles for children and teenagers;
availability of equipment: helmets, gloves, knee pads;
drawing up a lease agreement and using a cash deposit;
competitive prices;
advertising campaign;
high quality bicycles.

Advertising campaign

To attract customers' attention, use:

a bright sign, a catchy design of the reception desk;
leaflets;
creating accounts on social networks, such as: Vkontakte, Odnoklassniki, Instagram;
promotions and discounts.

Step-by-step opening instructions

To open a bike rental you will need:

Complete the necessary documents. Beginning entrepreneurs are primarily registered as individual entrepreneurs. Then a package of documents necessary to register a business is drawn up.
Choose the location of the bike rental, a place where bicycles will be stored at night and a warehouse for storing equipment in the winter.
Select and purchase equipment and inventory.
Hire staff with the required skills.

Documentation

To organize bicycle rental, you will need to register with the tax office as an individual entrepreneur.

For this you will need:

application (form No. Р21001);
copy of Russian passport;
receipt for payment of state duty (800 rubles).

Registration is carried out within three working days.

List of documents that will be needed to open a bicycle rental business in 2019:

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.

Location and premises

The best place to open a bike rental point would be:

embankment;
a park;
amusement park;
squares and city gardens.

It is better to store bicycles at the rental point or nearby. Bicycles and the reception desk (if necessary) will be stored there at night.

After the end of the season, the bikes are stored in a warehouse. To prepare for this, you will need a specialist who will carry out conservation: cleaning and lubricating components, loosening cables, installing bicycles on special stands. In the spring, repeated maintenance and diagnostics of bicycles will be required.

Equipment and inventory

Experts advise starting with a minimum number: seven bicycles. It will be easier to estimate demand in the selected area. When demand is high, it is easy to purchase the required number of bicycles.

Buying bicycles is the main expense item. It is recommended to buy standard models of transport bicycles and equipment that are reliable in use - helmets, knee pads and gloves.

Photo gallery

Children's bicycle 1.5–3 years Stels Arrow RUB 14,5000 Bicycle for children 3–5 years old Cube Kid 160 RUB 20,900 Children's bicycle 5–9 years old Giant Adore C/B 12 RUB 16,000 Bicycle for teenagers Merida Matts J24 Marathon RUB 20,500 Women's bicycle Stinger Barcelona 21,000 rub. Adult bicycle Merida Crossway 5-V RUB 21,000

Gloves VG RUR 924,200 Children's protective helmet Casco RUN 1000 rub. Protective helmet for adults MTV16 1500 rub. Explore Magnum protection (knees, palms) RUB 500

Staff

To operate a bicycle rental point, you only need an administrator who will enter into a rental agreement, monitor the condition of the bicycles, and put them in a storage room at night.

Beginning entrepreneurs can do the administrative work themselves or hire two people who will work with a 2:2 schedule. To do this job, you will need to find a polite and sociable employee with basic bicycle handling skills.

The video shows a story about how the first bike rental “Your Own Bike” opened in Vladivostok. Filmed by the grink-city channel. ru

Financial plan

An important advantage of opening a bike rental point is that the start-up capital is relatively small and you don’t have to turn to investors.

How much does it cost to open a bike rental?

Calculation of the required investments includes the costs of documentation, equipment and advertising.

Regular expenses

Monthly expenses are calculated based on employee salaries, premises rental and maintenance of bicycles in case of breakdown.

Income

Income is calculated based on the hourly cost of the equipment and the average number of hours per month for which the equipment is rented.

Calendar plan

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

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.