Small LBS Start-up advice

[robbybzgo]

Read this article on Supply Constraints and the associated increase in costs of containers (transportation)

[robbybzgo]

https://bikenetwork.co.za/bud-wheres-my-bike/

[BigDL]

10 hours ago, Meezo said:

on this, Don't cut your supply line

...if you currently have a day job, keep doing that and try and let the bike shop business run on the side. Unless ofcourse you've got heaps of money and the ability to not make ends meet.

As most of said once you start getting to a point (reputation, enough fixed clients, and built a network) then drop the day job, and your passion becomes you vocation.

Good Luck!

100000000% this 

[The Ouzo]

9 hours ago, robbybzgo said:

https://bikenetwork.co.za/bud-wheres-my-bike/

written by one of our very own on this here BikeHub

[Frosty]

I would image the biggest challenge will be to get stock for all the different standards out there, like a BB (MTB). 

• Conventional/BSA threaded
• BB90 and BB95
• PF86 and PF92
• BB30
• OSBB (road)
• BB30A and BB30-83 Ai
• PF30
• OSBB (mountain)
• PF30A and PF30-83 Ai
• BBRight
• BB386 EVO
• T47
• Threadfit 82.5
• SRAM DUB

 https://www.bikeradar.com/advice/buyers-guides/the-complete-guide-to-bottom-bracket-standards/

[GhostSixFour]

Don't underestimate the amount of time you'll be on the road. You'll have to pick up bikes likely before the owners go to work, and then drop them off at specific times as well. So you'll need to plan out your trips to the T. Or end up wasting a lot of time, that you can't really bill for.

Possibly look into starting by offering a mobile repair centre close at the start of some of the popular routes, or a "supporting vehicle" service where a group can book you to follow them and help if they have issues - bicycle or legs related.

Edited February 25, 2022 by GhostSixFour

[Blackheart]

Hi Dan

As a one time bike shop owner, maybe I can offer a little advice?

1. Location - Keep your overheads as low as possible. Foot traffic is way overrated and is in fact a liability not an advantage. Reputation is worth much more than visibility.

2. Parts - It is going to be a challenge to source parts as the large importers are fully subscribed and will not deal with so called 'garage' businesses. Finding a sympathetic LBS is great if you can, but most are fighting for their own survival and won't welcome the competition, also no matter how sympathetic they are they will still not sell on to you at cost. That means you will have to reduce your own profit to be cost competitive. You will have to essentially buy your market share initially. Importing grey or parallel parts can save cash, but exposes you to warranty issues.

3. USP - Why will people use you and not someone else? Having somebody's business trust is an honour and an obligation, not a right. Determine from the start what makes you better than 'the other guy' and then stick to that no matter what.

4. Consistency vs honest mistakes - You can do 25 amazing services/fixes/can you justs with very little reward, but 1 cock up can be a disaster and everybody gets to know about it. Fix honest mistakes quickly and with humility. If you are making dishonest mistakes then you are F*&%'d anyway.

I hope this helps a bit. It is not impossible, but like anything worthwhile takes dedication and perseverance.

Please feel free to DM me if there's any other questions you might have.

All the best.

[mazambaan]

Great advice here and, if it is your dream, go for it but, eyes wide open. SA has no safety net for failed small business owners so be brutal about payments, costings, where you are and what the future looks like. If you can, keep another source of income going, the tax breaks could finance your bike service ambitions. As noted you need a good book keeper / accountant BUT I think you also need an adviser, particularly as regards tax issues. As a long time small business owner this can save you a great deal of money.  Also, try not to try and do everything yourself, see if you can find good help (not easy I know but it is there) to let you do the stuff you are best at.

Customer is king but evaluate them brutally; there are some / a few / the minority who are just not worth having. Part early on good terms rather than lose money and other customers.

From my experience in a completely different field, try find a niche; suspension, ebikes, secondhand spares (not Neils Wheels??👺), something and be really good at that (the harder and dirtier it is the better); while keeping other work ticking over until, hopefully, the speciality consumes you. Investigation, asking, shadowing in a a few shops and understanding their finances and where they get their most income may be useful, if possible.

Best of luck!!