Bicycle rental is a relatively new trend in the service market that can turn into a promising business. The demand for this simple and easy to use means of transportation is growing due to the increasing number of active lifestyles and traffic jams in densely populated cities every year.
Many riders often cannot afford to buy a bike or do not have space to store it. Bicycle rental in this case will be a relevant solution to this problem. The implementation of a business project does not involve large investments, and the level of potential risks for it is minimal.
General business concept
The concept of the bike rental business is based on making a profit from the rental of bicycles and other goods for outdoor activities for a period of time from 1 hour to several days due to:
- meeting the needs of the population in cycling, as the most convenient way to travel without traffic jams in large cities;
- distribution of various forms of family recreation using bicycles;
- promotion of cycling.
Bicycle rental points should be opened in cities with a population of at least 50 thousand people, in resort villages, tourist and cultural centers.
Starting costs start from 250 thousand rubles. with the purchase of several bicycles and spare parts for them and with the right organization, they pay off in one season.
Bicycle rental as a business – step by step instructions
Bicycle rental as a business requires a clear planning of actions in solving organizational issues. To open it, you will need to: analyze the market for demand and competition, purchase the required amount of bicycle equipment and equipment, choose a location for bicycle rental and storage, issue documents and permits, hire staff, calculate investments and profitability, assess risks.
Also, in the business plan, you need to specify a list of services provided with a price list. The main service is the provision of bicycles for rent to different categories of users (men, women, children of preschool and primary school age, adolescents) lasting from an hour to several days, drawn up by an agreement on the security of a document proving the identity of the client and payment of a security deposit, returned to the tenant in full after expiration of the lease. At the same time, part of the funds from the deposit can be withheld in case of damage or breakdown of the vehicle at the time of its return to the bike rental point. For a fee, the user can rent protective attributes: knee pads, a bicycle helmet, elbow pads, etc.
IT IS WORTH CONSIDERING AN ADVERTISING CAMPAIGN TO ATTRACT A CLIENT AUDIENCE.
Promotion tools will be: an attractive sign, the original design of the administrator’s desk, your own account in social networks and a website with a catalog of services, periodic promotions and discounts.
It is better to open a bike rental point in the spring-summer period, when the demand for its services is quite high. In winter, bicycles after maintenance are sent to storage, with the exception of the southern tourist cities, where they can be in demand at this time of the year.
Analysis of demand, competition and business relevance in a particular city
Before opening a bike rental and buying bikes, you should determine for yourself the target audience, the level of demand for services in the domestic market and competition in a particular locality. You need to focus on families with children, students, tourists and visitors to the city, the active working population of 23-40 years old and older people who take care of their health and physical condition.
According to statistics, the number of private bike rental points, even in large cities of Russia, is at a low level, which allows you to freely enter the market and occupy your niche.
Competitive advantages will be:
- provision of bicycles to different age groups of users;
- the presence of protective equipment and a different range of bicycle equipment – ladies’, road, mountain, etc.;
- excellent quality bikes;
- setting competitive prices with a competent marketing policy;
- conclusion of a lease agreement with a cash deposit;
- provision of additional services for troubleshooting cycling, conducting cycling tours;
- inclusion in the rental of roller skates, scooters, segways, gyro scooters, etc.;
- favorable location of the rental point and convenient working hours.
When pricing, it is better to build on the average price segment, taking into account the prices of competitors and the market situation in the city.
Purchase of bicycles
The equipment of the bike rental point involves the purchase of office furniture and equipment, an administrative desk, fire and security systems, a payment terminal and validators.
The main inventory will be special equipment, spare parts and bicycles of several types:
- Children and teenagers;
- Bicycles are universal for men and women;
- Special “ladies” models;
- Sports, city, mountain, etc. depending on the region of location;
- Electric bicycles.
With limited investment and a small city, you can purchase 7-10 of the most popular models based on two varieties of each bike model, purchasing the rest as your business develops and the preferences of the target audience are studied. It is better to immediately choose reliable bicycle equipment from well-known manufacturers, which will last a long time and will not break often.
Storage room for bicycles and spare parts
A bicycle rental point should be located in busy places with the greatest demand for this service: amusement and recreation parks with bike paths, city gardens and squares, embankments, recreation centers. Here, at the point or nearby, it is recommended to equip a storage room for bicycle equipment and spare parts. It can be a stationary building or a mobile trailer. Its area should be at least 20 – 25 square meters. m. It will take 20 thousand rubles to rent such a room. per month. Internal equipment will be made up of special stands for mounting bicycles on them.
Registration of permits
Bicycle rental business must be registered. A suitable option is an individual entrepreneur, which involves a minimum of reporting and documents: TIN, passport, receipt of payment of state duty, application form P21001 and on the transition to a special tax regime (USN, UTII, patent). The specified OKVED classifier code is 77.21 for the rental and rental of sports and leisure goods. Registration takes place within 3 business days.
In addition, to organize a rental point, you will need to get:
- premises lease agreement;
- permission to open from the city administration;
- conclusion of SES and fire supervision;
- personal medical records of staff.
At the point, it will be necessary to place a consumer corner with the rules and conditions of rental, price list, instructions and a safety magazine when riding, a book of complaints and suggestions.
For the functioning of a bike rental, you will need to hire two administrators with a work schedule for shifts “two in two” or one person, provided that the entrepreneur himself comes to work. The responsibilities of the administrator will include the conclusion of a lease agreement when renting equipment, monitoring its condition and placing it in storage.
Employees must have basic skills in handling bicycle equipment, be polite and sociable. It’s good if one of them also understands bicycle repair, which will reduce the cost of the services of a master. Accounting support can be outsourced.
How much to invest at the start
The required investment depends on the size of the bicycle fleet and the amount of other equipment provided for rent. To organize a small rental point of several bicycles, it is enough to invest 250 thousand rubles, for a large point of rental services for various models of bicycle transport and other riding equipment, about 1 million 300 thousand rubles will be needed.
The table below shows the costs of organizing a bike rental point of ten bikes:
|No. p / p||Attachments||Sum|
|one||Registration of business and obtaining permits||10 thousand rubles|
|2||Payment for the rent of the premises||20 thousand rubles|
|3||Purchase of rental equipment||50 thousand rubles|
|four||Purchase of bicycles and equipment||180 thousand rubles|
|5||Expenses for registration of a rack, purchase of spare parts and other||25 thousand rubles|
|Total:||285 thousand rubles|
Current expenses take into account staff salaries, rent of premises and maintenance of bicycles in the event of a breakdown, which will amount to 65 thousand rubles. Also, after two or three seasons, it will be necessary to allocate funds for the renewal of the bicycle fleet with the gradual withdrawal of the most worn-out bicycle equipment from circulation.
When calculating profitability, we will start from the average rental price of 150 rubles per hour and the number of customers per day – 20 people. Typically, the rental time does not exceed 2-3 hours a day, which means that the daily income of the point will be equal to 9 thousand rubles, and the profit per month – 180 thousand rubles. minus a few rainy days with no revenue. Subtracting current expenses from them, we get 115 thousand rubles. clean.
Based on the size of the initial investment, the investment will pay off in a period of 3 to 10 months. The provision of additional services will increase business income by one and a half to two times.
At the end of planning, it is worth focusing on the potential risks for the bike rental business.
They will be:
- Opening similar facilities nearby and dumping prices by competitors. The solution to the problem is to develop competitive advantages and a loyalty program in the form of a system for accumulating bonuses, discounts and various promotions.
- Theft and destruction of bicycles. Partially compensates for losses from the occurrence of risk, the amount of the deposit when renting a vehicle. Fortunately, this happens quite rarely.
- Failure to fulfill the sales plan due to bad weather conditions. It is impossible to influence this risk, but you can hope for double revenue on weekends and holidays.
- Decrease in demand for bicycle rental services due to economic instability and falling incomes of the population. The output is again in a loyal attitude towards users and pricing flexibility.
- Present seasonality factor in most Russian regions. The rental of sleds, skis, snowmobiles, etc. will help reduce the risk and generate income during the winter months.
Due to a small amount of risks with minimal investment and competition, this type of business is suitable not only for experienced entrepreneurs, as an additional investment of free funds, but also for new participants who are just starting their journey in the business field.