![]() ![]() ![]() Insurance Agency – Another critical piece of the puzzle. Never sign a lease without an attorney’s review. An attorney that specializes in business and has experience in mergers and acquisitions is critical. Don’t be scared by the expense as you will hopefully be using them very little. No one cares as much as you, and the information is not as relevant to anyone but you.Īttorney – Having an attorney that you can use when needed is essential. I know that sounds impossible, but the knowledge one gains by doing the bookkeeping in a timely and accurate manner cannot be overstated. The average shop owner can probably do the books in as little as 10 hours a week, maybe even less. The best description of that person is you! If you have your QuickBooks set up well, you can get advice and help quickly from an advisor. I would suggest that the person is doing your books to be a very trusted person. They can help you with day to day accounting and bookkeeping questions to keep you on track.īookkeeper – Many shops have a bookkeeper. If you use QuickBooks, I would suggest you have a QB Pro Advisor you can utilize. Ask lots of questions and set expectations. Many retailers look to their accountants like they would their doctors and never second guess the information. Again, shop around and find the right fit. The difference when you need help fast is critical.Īccountant – Perhaps there is no other person on your team that can be of more help or hindrance than your accountant. Get some referrals from other small businesses and ask around. Make sure they are good at working with small businesses and have the experience to guide you. Building a Team of Expertsīank – Choose your bank wisely. Being in “credit jail” and unable to buy due to poor planning is a widespread scenario in the bike business. Buying large quantities of inventory on credit terms that you initially feel you will have no problem selling can be a big surprise come Spring. You have to be very careful with this line of credit as it is easy to get in over your head quickly, especially with long-term dating that can sometimes be ten or more months down the road. Most bicycle brands will establish a line of credit for you to buy a product and pay for it later. ![]() One of the primary sources of credit bike shops use daily is through their vendors. It is never a bad thing to have a banker in your corner should you need one. In times of crisis such as the COVID-19 pandemic, retailers with easy access to their bankers and associations already built seemed to fare better navigating the stimulus-money waters. It is also imperative to develop a relationship with your bank. Second, having some funding is always helpful, and having a line of credit can go a long way towards smoothing out bumps in the road. This effort will help you understand more about what is required from a business knowledge standpoint and get you accustomed to reading financials. First, you will be vetted by a financial institution and have some very seasoned eyes looking at your projections. Going through the process of getting a loan and securing a line of credit will do two important things. You will need enough cash to secure an initial inventory buy, lease payments, store buildout, insurance, workshop buildout, and a variety of other expenses that will add up quickly. Do not become complacent if you do not need a loan consider going through the process to make sure your plan is sound first. If you need to obtain a bank loan, you will need to write a detailed business plan with at least three years of projections amongst a host of other information you can find on the SBA’s website. If you have personal resources, good for you, but you will still need a good plan and you will want to put a limit on what you’re willing to inject. Obtaining a primary source of funding is a critical part of how to start a bike shop successfully and get your bike store off the ground. Securing Funding & Writing a Business Plan Ideally, you will have some type of riding that is good near you, as bike paths, mountain bike trails, or scenic low traffic roads all will be of help – all three? You’re in luck! 2. Having great Rail-to-Trails or world-class mountain biking, for example, will go a long way towards getting things right in your inventory selections, store model, and what will work in your area. You want to play in your area’s strengths. When considering how to start a bike shop, having a solid understanding of your marketplace and its potential and limitations will go a long way towards success. How to start a bike shop: follow these 11 steps if you want to be sure that you have a solid foundation for your business from day one. ![]()
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