Start your own Bike Repair Business
You can start this business from home
You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your bike repair business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
STEP 1: Plan your Business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
- How long it will take you to break even?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening a bike repair business?
Startup expenses associated with opening a bicycle repair business are fairly minimal, although you’ll probably need these essential items:
- Basic tools (open wrenches, hex keys, screwdrivers, a ratchet set, wire cutters, adjustable pliers)
- Specialized tools (tire spoons, a chain breaker, a tire pump and pressure gauge, a spoke wrench, a crank arm pulley)
- Work stand
- Truing stand (for wheels)
Business owners who don’t already have these tools should expect to spend a few hundred dollars on them.
Repairing bikes also requires a workspace and replacement parts, but both of these potential costs can be kept to almost nothing. Many bike repair business owners have begun by fixing bikes in their garage or basement so that they didn’t have to worry about lease payments until their business was established. The cost of replacement parts is normally built into the invoices customer pay, and customers who need expensive parts can be asked to provide a deposit upfront. Such a deposit can be used to cover the cost of the needed parts.
What are the ongoing expenses for a bike repair business?
The ongoing expenses for a bike repair business are fairly low. They include:
- Employee salaries
- Workspace or storefront lease
- Utility costs
Who is the target market?
A bike repair business’ ideal customer is an avid cycler who doesn’t know how, or doesn’t want to take the time and effort, to repair their own bike. Such a customer will likely need repairs and maintenance fairly often, since they use their bike a lot, and they’ll be willing to pay for the work their bike requires.
How does a bike repair business make money?
A bike repair business makes money not only by fixing bicycles, but also selling used them at a discounted rate. Many shops choose to offer tune-ups for a flat fee, and charge more for additional repairs.
How much can you charge customers?
Many bike repair businesses offer basic tune-ups for a set fee, and perform more advanced repairs at an adjustable rate. For example, Wheels in Motion offers three levels of tune-ups that range in price from $79.99 to $214.99. Repairs that go beyond what’s included in a tune-up are usually priced based on the parts and labor they require.
How much profit can a bike repair business make?
Some bike repair business owners earn up to $35 per hour or more, not including any profit they earn on parts sales. Business owners who grow their business into full-time businesses may earn $1,600 per week or more.
How can you make your business more profitable?
Bike repair business owners can add new revenue sources and increase their profits, by offering workshops on fixing bikes and repairing old bicycles. Some cycling enthusiasts will pay for a class that shows them how to care for and repair their own bikes. Refurbishing old bikes can also net a nice profit, as they can be sold once they’re repaired and working properly.
What will you name your business?
Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.