Small LBS Start-up advice

[RobertWhitehead]

7 hours ago, Dan the Cycologist said:

we're still looking to set up a spot, depending on how things go, we might move into the old Platinum Mall, but its still very early stages of setup so it could change. but were going to try for the mall

Don't do it. You're going to put yourself under pressure to be able to pay the rent and because you want to make it mobile may end up being on the road most days. Rather use the garage or get a Wendy / pre-fab house in the yard at home. One less thing to worry about (rent / leaving the shop unattended) 

[Edereese]

9 hours ago, Dan the Cycologist said:

we're still looking to set up a spot, depending on how things go, we might move into the old Platinum Mall, but its still very early stages of setup so it could change. but were going to try for the mall

Rather start thinking about this once you're established and adding retail to it.

Also, social media is a great tool. I am based in Cape Town so no impact on you

https://www.instagram.com/precisionbicycles_za/

[Dan the Cycologist]

2 hours ago, RobertWhitehead said:

Don't do it. You're going to put yourself under pressure to be able to pay the rent and because you want to make it mobile may end up being on the road most days. Rather use the garage or get a Wendy / pre-fab house in the yard at home. One less thing to worry about (rent / leaving the shop unattended) 

Will keep this in mind, thanks

 

[Dan the Cycologist]

27 minutes ago, Edereese said:

social media is a great tool

I'll have to set-up some pages on some of the platforms, thanks🤙

[The Ouzo]

+1 on not dong the mall thing just yet. The requirements from mall management plus the costs will likely kill you before you start.

Shed/Garage/Wendy house or even a mini factory will be a better bet for starting out.

[Darko]

11 hours ago, Dan the Cycologist said:

ill be more than happy to take this offer, how shall we go about doing this? Thanks in advance!

Awesome. Have sent you a message

[droo]

11 hours ago, King_Crispy said:

Where you based Droo?

Woodstock, CT

[droo]

59 minutes ago, ouzo said:

+1 on not dong the mall thing just yet. The requirements from mall management plus the costs will likely kill you before you start.

Shed/Garage/Wendy house or even a mini factory will be a better bet for starting out.

Seconded. Also, bear in mind that a mall will give you heaps of foot traffic and with that come tyre kickers. If the mass market is what you're after, this is a good thing, but if you're wanting to specialise or offer a boutique service it's worth being slightly off the beaten track and having your marketing properly targeted.

 

The bonus is that whatever you save on rent you can put in to marketing.

[Puncture Kid]

Not to rain on your parade, but I doubt if this will be successful. A friend tried that and he could never make ends meet to enable him to draw a salary. Closed it down after a year. The margins on parts and labour are not enough to pay overheads. Bike riders are also too stingy. They will not pay the rates for a service that you will need to sustain the business. They want trained and professional mechanics but is not prepared to pay for it. Some bikes cost the same as a small car, but the owners still want to skimp on spending money to maintain it.

Best of luck though...

[rorydewet]

20 hours ago, BaGearA said:

Get an accountant and make sure your books are clean from day one 

yep good advice this is what Eskom and Transnet did they put accountants in charge and appointed accountants to do the audit

[RobertWhitehead]

1 hour ago, Puncture Kid said:

Not to rain on your parade, but I doubt if this will be successful. A friend tried that and he could never make ends meet to enable him to draw a salary. Closed it down after a year. The margins on parts and labour are not enough to pay overheads. Bike riders are also too stingy. They will not pay the rates for a service that you will need to sustain the business. They want trained and professional mechanics but is not prepared to pay for it. Some bikes cost the same as a small car, but the owners still want to skimp on spending money to maintain it.

Best of luck though...

I have to agree, to a certain extent.

I did not send the same reply straight off the bat because everyone's requirements are different. I mean I may need R150 000.00 pm to pay my bills and to eat (just an example, not true by any means of the imagination) where the next guy still lives with his parents and does not have car and bond payments and only needs R5000 pm to survive. 

Yes, the margins are tight and you may end up only making 10-15% per item but the main thing here is that this is Brits and there's not many other guys out that way that offer quality service (according to the OP). I mean if we have a look at my example of R5k needed and we take a strip down and re-build or major service and say the labor comes in at R650 then it means he only needs to have 8 clients per month. 

[Puncture Kid]

27 minutes ago, RobertWhitehead said:

I have to agree, to a certain extent.

I did not send the same reply straight off the bat because everyone's requirements are different. I mean I may need R150 000.00 pm to pay my bills and to eat (just an example, not true by any means of the imagination) where the next guy still lives with his parents and does not have car and bond payments and only needs R5000 pm to survive. 

Yes, the margins are tight and you may end up only making 10-15% per item but the main thing here is that this is Brits and there's not many other guys out that way that offer quality service (according to the OP). I mean if we have a look at my example of R5k needed and we take a strip down and re-build or major service and say the labor comes in at R650 then it means he only needs to have 8 clients per month. 

Not many other guys not offering the same service does not mean you will be successful. Maybe there is not enough customers to sustain them in that area.

But yes sure it depends on what your need is from a shop owner point of view. Doing the service yourself may be better. The low return and having to deal with $hitty labour in this country is not worth it IMHO.

[Dan the Cycologist]

42 minutes ago, Puncture Kid said:

Not many other guys not offering the same service does not mean you will be successful. Maybe there is not enough customers to sustain them in that area.

But yes sure it depends on what your need is from a shop owner point of view. Doing the service yourself may be better. The low return and having to deal with $hitty labour in this country is not worth it IMHO.

i agree, i'm gonna keep the operation small, doing the services myself, im gonna try and keep a low overhead, but we'll see how things go🤙

[rock]

have a mate film you and start a YouTube channel.

[Meezo]

3 hours ago, Puncture Kid said:

Not to rain on your parade, but I doubt if this will be successful. A friend tried that and he could never make ends meet to enable him to draw a salary. Closed it down after a year. The margins on parts and labour are not enough to pay overheads. Bike riders are also too stingy. They will not pay the rates for a service that you will need to sustain the business. They want trained and professional mechanics but is not prepared to pay for it. Some bikes cost the same as a small car, but the owners still want to skimp on spending money to maintain it.

Best of luck though...

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!

[love2fly]

5 hours ago, Puncture Kid said:

Not to rain on your parade, but I doubt if this will be successful. A friend tried that and he could never make ends meet to enable him to draw a salary. Closed it down after a year. The margins on parts and labour are not enough to pay overheads. Bike riders are also too stingy. They will not pay the rates for a service that you will need to sustain the business. They want trained and professional mechanics but is not prepared to pay for it. Some bikes cost the same as a small car, but the owners still want to skimp on spending money to maintain it.

Best of luck though...

I couldnt agree more. Keep your day job and do this as a hobby and additional money for ....the things that make you happy. In a word: Don't! The margins are tiny. Collecting and delivering costs more than petrol. It takes time, wear and tear, insurance etc...