Strategic Plan
Bike Shop Example
Bob's Bikes
Launch plan for Bob's Bikes, an independent bike shop in the Surrey Hills, a region renowned for its picturesque landscapes and cycling-friendly terrain, and focused on bicycles, cycling equipment, clothing, and servicing, aimed at fitness enthusiasts, families, and commuters, aligns well with the needs of the local community and visitors.
THIS LAUNCH PLAN IS PROVIDED AS AN EXAMPLE OF THE OUTPUT TO BE PRODUCED BY THE 12 RONNIES LAUNCH CONTROL's LAUNCH STRATEGISTS FOR FOUNDERS READY TO LAUNCH A BUSINESS. BOB'S BIKES IS A HYPOTHETICAL EXAMPLE.
If you would like to find out more about the 12 Ronnies Launch Control Programme - and perhaps event to sign up to get help with your own startup business launch - visit https://yep.so/p/launch-planning-from-12ronnies
Plan submitted by:
Chris Fox
- Chris Fox (Responsible)
- Barry Eustance (Supporting)
- Simon Krystman (Accountable)
- Curtis Chan (Supporting)
- Anna D'Armenia (Supporting)
Analysis
Business Model Canvas
Key Activities |
Customer Relationships |
Customer Segments |
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Key Partners
Bicycle and Equipment Suppliers
Bob's Bikes will need to maintain strong relationships with reliable suppliers of bicycles, cycling equipment and clothing. These suppliers should offer a range of products to cater to the diverse needs of Bob's Bikes's customer segments. The relationship should be characterised by timely delivery, competitive pricing, and high-quality products.
Local Cycling Clubs and Events
Bob's Bikes should partner with local cycling clubs and events to increase visibility and reach within the cycling community. This could involve sponsoring events, offering discounts to club members, or hosting community rides. The relationship should be mutually beneficial, with Bob's Bikes gaining exposure and the clubs/events receiving support.
Digital Marketing Agency
To maximise the effectiveness of its online channels, Bob's Bikes may need to engage a digital marketing agency. This agency would help optimise the website and online store, manage social media accounts, and run email marketing campaigns. The relationship should be based on clear communication, regular reporting, and a shared understanding of Bob's Bikes's brand and goals.
Local Transport Authorities
Given its location near the station and its focus on commuter cyclists, Bob's Bikes should establish a relationship with local transport authorities. This could involve collaborating on initiatives to promote cycling as a mode of transport, or offering services such as bike parking or maintenance at the station. The relationship should be characterised by shared objectives and regular communication.
Customer Relationship Management (CRM) Software Provider
To manage its customer relationships effectively, Bob's Bikes will need a robust CRM system. The provider of this system should offer a product that is easy to use, scalable, and capable of supporting Bob's Bikes's loyalty programmes and community building efforts. The relationship should involve ongoing support and updates to the software.
Key Activities
After sales support and bike
Keeping people's bikes on the road.
Event organisation
Organising local events for amateur cycling enthusiasts.
Sales
Selling new and used bikes, spare parts and bike accessories.
Marketing
Attracting new customers and keeping existing customer engaged and coming back.
Purchasing
Buying Bikes, bike parts and accessories for resale.
Customer Relationships
Self-Service
Bob's Bikes should provide self-service options for customers who prefer to shop or find information independently. This could involve maintaining a comprehensive and user-friendly website and online store, providing detailed product information and reviews, and offering online tools or guides for bike maintenance. This type of relationship is particularly important for the Commuter Cyclists and Eco-conscious Consumers segments, who may value the convenience and autonomy of self-service.
Personal Assistance
Bob's Bikes should aim to provide a high level of personal assistance to its customers. This could involve offering expert advice on the best bike or equipment to suit a customer's needs, helping customers with repairs and maintenance, and providing personalised recommendations based on a customer's cycling habits and preferences. This type of relationship is particularly important for the Commuter Cyclists and Cycling Tourists segments, who may require more specialised advice and assistance.
Automated Services
Bob's Bikes could utilise automated services to streamline customer interactions. This could involve using email marketing to send personalised product recommendations, reminders for bike servicing, or updates on local cycling events. This type of relationship is likely to be attractive to all customer segments, as it provides timely and relevant information in a convenient format.
Community Building
Bob's Bikes should also focus on building a strong community among its customers. This could involve hosting local cycling events, creating online forums or social media groups where customers can share tips and experiences, and promoting a sense of camaraderie and shared passion for cycling. This type of relationship is particularly attractive to the Leisure Cyclists and Eco-conscious Consumers segments, who are likely to value the social and environmental aspects of cycling.
Loyalty Programmes
Bob's Bikes could establish loyalty programmes to reward repeat customers. This could involve offering discounts or free services to customers who make regular purchases, or providing exclusive benefits to members of a loyalty club. This type of relationship is likely to be attractive to all customer segments, as it provides tangible benefits and incentives for continued patronage.
Customer Segments
Commuter Cyclists
This segment consists of working professionals who use bicycles as their primary mode of transportation. The size of this segment is substantial and is expected to grow due to increasing environmental consciousness and urban congestion. They are typically aged between 25-45, have a moderate to high income, and value quality, durability, and service. They are interested in Bob's Bikes for its range of high-quality, reliable bikes and excellent after-sales service.
I interviewed 25 cyclists at the station on the week of 25 January, and almost all of them thought the idea was great.
Value Proposition
Customer Profile
Products and Services
Jobs to be Done
Pain Relievers
Leisure Cyclists
Leisure cyclists are individuals who cycle for recreation or fitness. This segment is large and stable, with a broad age range from children to seniors. They are interested in Bob's Bikes for its variety of bikes suitable for different terrains and levels of cycling proficiency, as well as its friendly, knowledgeable staff.
Cycling Tourists
Cycling tourists are individuals or groups who visit the area specifically for cycling tourism. The size of this segment is seasonal and fluctuates based on tourism trends. They are interested in Bob's Bikes for its bike rental services, local knowledge, and cycling route recommendations.
Eco-conscious Consumers
Eco-conscious consumers are individuals who make purchasing decisions based on environmental impact. This segment is growing rapidly due to increasing awareness of climate change. They are interested in Bob's Bikes for its range of eco-friendly bikes and commitment to sustainable business practices.
Value Proposition Definitions
DIY or done-for-you servicing options - with the option of repairs being done whilst daily commuter storage
- Annual service and storage contracts
Key Resources
Website and Online Store
Bob's Bikes will need a website and online store. The website will need to be easy to use, with clear information about the bikes and equipment for sale, and the services offered. The online store will need to be secure, with a smooth checkout process. This is important because the website and online store are key channels to market for Bob's Bikes.
Skilled Staff
Bob's Bikes will need skilled staff who can provide personal assistance to customers, service bikes, and manage the store. The staff will need to have good knowledge of bikes and cycling equipment, and be able to provide advice to customers. This is important because personal assistance is a key part of Bob's Bikes's customer relationships and the ability to service bikes is a key part of their value proposition.
Community Building and Loyalty Programme Resources
Bob's Bikes will need resources for building a community around their brand and running loyalty programmes. This could include organising local cycling events, and managing a loyalty programme with rewards for regular customers. This is important because community building and loyalty programmes are key aspects of Bob's Bikes's customer relationships.
Physical Store and Inventory
Bob's Bikes will need a physical store in a convenient location near the station. This store will need to be large enough to display a range of bikes and cycling equipment for all price points. The store will also need to have a workshop area for servicing bikes. The inventory will need to be managed effectively to ensure that popular items are always in stock. This is important because the physical store is one of Bob's Bikes's main channels to market and the range of bikes and equipment is a key part of their value proposition.
Marketing Resources
Bob's Bikes will need resources for email marketing and social media marketing. This could include software for managing email campaigns, and time and skills for creating engaging social media content. This is important because email marketing and social media are key channels to market for Bob's Bikes.
Channels
Email Marketing
Email marketing can be used to reach customers who have shown interest in Bob's Bikes's products and services. Emails can be used to share product information, promotions and cycling tips. Bob's Bikes should ensure its emails are engaging, relevant and not too frequent to avoid annoying recipients.
Local Cycling Events
Sponsoring or participating in local cycling events is a great way to reach Bob's Bikes's target customer segments. These events attract a large number of cycling enthusiasts, families and tourists who are likely to be interested in Bob's Bikes's products and services. Bob's Bikes should consider setting up a stall at these events to showcase its products and offer on-the-spot bike servicing.
Physical Store
Bob's Bikes's physical store in the Surrey Hills is a key channel for reaching its target customer segments. The store allows customers to see, touch and try out products before purchasing, which is particularly important for high-investment items like bicycles. The store also provides a location for bike servicing. Bob's Bikes should ensure the store is welcoming, well-stocked and staffed by knowledgeable employees to attract and retain customers.
Social Media
Social media platforms like Facebook, Instagram and Twitter can be used to reach and engage with Bob's Bikes's target customer segments. These platforms can be used to share product information, promotions, cycling tips and local cycling news. Bob's Bikes should regularly post engaging content and interact with followers to build a strong online community.
Website and Online Store
An online presence is crucial for reaching a wider audience. Bob's Bikes's website and online store can provide information about products and services, allow customers to make purchases from anywhere, and offer a platform for customer service inquiries. The website should be user-friendly, mobile-optimized and SEO-friendly to attract and retain customers. It should also include detailed product descriptions, customer reviews and a secure checkout process.
Cost Structure
Store Operating Costs
These are the costs associated with running the physical store, including rent, utilities, and maintenance. These costs are typically fixed and are incurred on a regular basis (monthly or annually). They are indirect costs as they do not directly contribute to the production or sale of goods, but are necessary for the operation of the business.
Staff Costs
These are the costs associated with employing skilled staff to manage the store, service bikes, and provide customer service. These costs are incurred on a regular basis (monthly or bi-weekly) and are typically fixed, as they are based on salaries or hourly wages. They are direct costs as they directly contribute to the production and sale of goods and services.
Marketing Costs
These are the costs associated with promoting Bob's Bikes through various channels such as email marketing, local cycling events, social media, and the website and online store. These costs are typically variable, as they can fluctuate based on the scale and frequency of marketing activities. They are incurred when marketing activities are carried out and are considered indirect costs as they do not directly contribute to the production or sale of goods, but are necessary for driving sales.
Inventory Costs
These are the costs associated with purchasing bicycles, cycling equipment and clothing for resale. These costs are variable, as they depend on the quantity and type of inventory purchased, and are incurred when inventory is purchased from suppliers. They are direct costs as they directly contribute to the sale of goods.
Website and Online Store Costs
These are the costs associated with maintaining and updating the website and online store, including hosting fees, website design and maintenance, and online payment processing fees. These costs are typically fixed and are incurred on a regular basis (monthly or annually). They are indirect costs as they do not directly contribute to the production or sale of goods, but are necessary for the operation of the business.
Revenue Structure
Online Sales
This is another one-off type of revenue for Bob's Bikes, generated through the sale of bicycles, cycling equipment and clothing on their website and online store. The revenue is paid in advance by the customer. The revenue drivers for this source include the range of products available, the convenience of online shopping, and the marketing efforts through email and social media.
Event Participation & Sponsorship
This is a one-off type of revenue for Bob's Bikes, generated through participation in local cycling events, where they can sell their products and services. The revenue is paid in arrears, after the event. The revenue drivers for this source include the popularity of the event, the range of products and services offered, and the marketing efforts.
Bike Servicing
This is a recurring source of revenue for Bob's Bikes, where customers bring their bikes for regular servicing or repairs. The revenue is paid in arrears, after the service is completed. The revenue drivers for this source include the DIY or done-for-you servicing options, the skilled staff, and the convenient location of the store.
Bicycle and Equipment Sales
This is the primary source of revenue for Bob's Bikes. It includes the sale of bicycles, cycling equipment and clothing. This is a one-off type of revenue, paid in advance by the customer. The revenue drivers for this source include the range of bikes available for all price points, the convenient location of the store, and the marketing efforts through various channels.
Loyalty Programmes
This is a recurring source of revenue for Bob's Bikes, where customers pay a regular fee to be part of a loyalty programme that offers them discounts and other benefits. The revenue is usually paid in advance. The revenue drivers for this source include the value proposition of the loyalty programme, the community building efforts, and the marketing efforts.
SWOT Analysis
Insight Details
Around half of the local cycling Facebook group who responded to my post said they would like to be notified of a new cycling shop opening in the area.
I posted on the Reigate Cyclists Facebook Group asking if people would be interested in being notified of a new cycle shop opening in their area. The Group has 347 active members and 173 gave their email address on the Wailtlist Form in my post.
Here's a link to the Waitlist I created to capture email addresses: https://yep.so/p/bobs-bike-shop
Excellent relationships with bike and accessory manufacturers and importers
I have been a buyer for Evans Cycles for 20 years.
- Evans Cycles:
10% of local commuters would cycle to the station if it were easier, and 30% of those that do struggle to maintain their bikes
We interviewed 100 commuters at Reigate train station over the course of one week (5-9 February)
- 10% of those who don't cycle to the station said they were put off by the cost of maintaining a bike.
- 30% of those who do cycle to the station said they found keeping their bike in good order difficult and had to stop cycling for more than 2 weeks at least once a year whilst sorting issues out.
347 people on the local Nextdoor App for Reigate reacted positively to having a bike shop that promotes and stocks eco-friendly bikes.
Of the responses which consisted of comments and emojis, 347 were positive and 4 negaative (you always get some people who like to argue).
About a third of the local tourist promotion websites responded that they would list Bob's Bikes in their local directory
I found 10 websites that promote tourisrm in the Reigate area and emailed them to see if they would list Bob's Bikes for tourists. 3 of them resonded that they would. 2 said they would if we paid them and 5 did not respond. No negative responses yet.
Direction
Vision
To have somewhere that people in the Reigate area can go to find bikes, expertise and local area knowledge.
Planning
Initiatives
Buy Stock
Buy initial stock (and then restock as required)
Costs
| Description | Amount | Notes |
|---|---|---|
| Buy initial stock | 300000.00 | on initiative start date |
| Restock regularly | 50000.00 | every 1 month from initiative end date, and escalating at 5.00% annualised |
Secure Premises
- Identify and secure a strategically located premises that's accessible to your target market, with good visibility and footfall.
- Consider the layout and design of your shop to ensure it's inviting and functional, with space for retail, servicing, and customer interactions.
Costs
| Description | Amount | Notes |
|---|---|---|
| Commercial Real Estate Agents Fees | 10000.00 | on initiative start date |
| Rent | 2000.00 | every 1 month from initiative end date, and escalating at 5.00% annualised |
| Utilities | 500.00 | every 1 month from initiative end date |
Launch Event
Plan and execute a launch event:
- Book venue
- Send out invitations
- Arrange catering
Try to invite a local cycling celebrity (e.g. ex-Team GB member) as well as local radio stations/press etc.
Costs
| Description | Amount | Notes |
|---|---|---|
| Event costs | 2000.00 | spread from initiative start date to initiative end date |
Build Supply Chain Relationships
Establish relationships with suppliers of bicycles, cycling equipment, and clothing. Consider partnerships with both mainstream and niche brands to offer a wide product range.
- Attend trade fairs.
- Subscribe to Bike Experts Quarterly magazine - the premier publication for the bike trade.
Costs
| Description | Amount | Notes |
|---|---|---|
| Bike Experts Quarterly subscription | 100.00 | every 3 months from initiative start date, and escalating at 3.00% annualised |
Shop Fitting
Fit and decorate the shop including a shop-front area and workshop area.
Costs
| Description | Amount | Notes |
|---|---|---|
| Shop fitting costs | 5000.00 | spread from initiative start date to initiative end date |
Set up web site and marketing and inventory management systems
Costs
| Description | Amount | Notes |
|---|---|---|
| End-to-end solution set up | 10000.00 | on initiative start date |
| Ongoing license fee | 1000.00 | every 1 month from initiative end date, and escalating at 4.00% annualised |
Timeline
Financial Projection
Projection of revenues and costs for 12 months.
| Source | Revenue/Expense Description | 05/2024 | 06/2024 | 07/2024 | 08/2024 | 09/2024 | 10/2024 | 11/2024 | 12/2024 | 01/2025 | 02/2025 | 03/2025 | 04/2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Strategic Initiatives | |||||||||||||
| Buy Stock | Buy initial stock | -300,000 | |||||||||||
| Restock regularly | -50,000 | -50,206 | -50,420 | -50,634 | -50,843 | -51,059 | -51,269 | -51,487 | -51,692 | -51,891 | -52,112 | ||
| Secure Premises | Utilities | -500 | -500 | -500 | -500 | -500 | -500 | -500 | -500 | -500 | -500 | -500 | -500 |
| Rent | -2,000 | -2,008 | -2,017 | -2,025 | -2,034 | -2,042 | -2,051 | -2,059 | -2,068 | -2,076 | -2,084 | -2,093 | |
| Launch Event | Event costs | -2,000 | |||||||||||
| Build Supply Chain Relationships | Bike Experts Quarterly subscription | -101 | -102 | -102 | -103 | ||||||||
| Shop Fitting | Shop fitting costs | -5,000 | |||||||||||
| Set up web site and marketing and inventory management systems | Ongoing license fee | -1,000 | -1,003 | -1,007 | -1,010 | -1,013 | -1,017 | -1,020 | -1,024 | -1,027 | -1,030 | -1,034 | |
| Subtotal | -304,500 | -58,609 | -53,726 | -53,951 | -54,279 | -54,398 | -54,627 | -54,951 | -55,079 | -55,295 | -55,608 | -55,738 | |
| Net Profit | -304,500 | -58,609 | -53,726 | -53,951 | -54,279 | -54,398 | -54,627 | -54,951 | -55,079 | -55,295 | -55,608 | -55,738 | |
| CUMULATIVE TOTAL | -304,500 | -363,109 | -416,835 | -470,786 | -525,065 | -579,464 | -634,090 | -689,041 | -744,120 | -799,416 | -855,024 | -910,762 | |