How to Start a Bicycle Store

Apply for a business license to start a bicycle store in your area.

Bicycle stores sell a variety of bicycles for adults and children along with bicycle accessories such as helmets and other safety equipment. When starting a bicycle store, first determine the needs of the area in which the business will be located. If the area is home to mountain-biking enthusiasts, for example, plan to stock a variety of mountain bikes and accessories. If your business is located in a city or suburban area, street bicycles may be more popular.

Instructions

1. Create a business plan for each stage of business development when starting a bicycle store. List the types of bicycles and accessories along with bicycle repair and other services in the first section. List all start up costs such as rent, utilities, product costs, labor, insurance and marketing costs in the second section. Create a marketing plan that outlines how you plan to advertise your bicycle store in the third section. List managerial and employee roles and day-to-day responsibilities in the fourth section.

2. Apply for a business license by contacting your local Small Business Aministration office or county clerk's office to open your bicycle store. Contact the Internal Revenue Service (IRS) to apply for an employer identification number (EIN). This number may be used on tax forms and other business documents to identify your business. Apply for a sales tax number by contacting your state's department of revenue. This number allows you to collect sales tax on bicycles and accessories from customers. Purchase business insurance from a licensed insurance provider to protect bicycles and other business equipment from theft or damage. Business insurance also helps protect business and personal assets in the event of a lawsuit.

3. Lease commercial retail space for your bicycle store from a commercial real estate agent. Retail space should be large enough to display a variety of bicycles for adults and children. Large display windows allow customers a glimpse of your merchandise. Choose a location in a busy shopping area.

4. Contact bicycle vendors and manufacturers to order merchandise to sell in your store. Research the latest bicycle trends using the Internet, reading bicycle reviews in outdoor sports magazines or by attending trade shows and other public venues created for outdoor sports. Purchase bicycle display racks, shelves and other display accessories. Create separate areas for bicycles, bicycle repair and customer service. Purchase computer retail software to track sales and inventory.

5. Advertise your bicycle store in local newspapers, magazines or in radio and television ads. List your store in local business directories. Create fliers to hand out to customers that include daily specials or other coupons. Participate in local business networking and charity events to increase awareness of your bicycle store in the community.

Tips & Warnings

• Provide bicycle lessons for children and adults to increase sales.

• Monitor your bottom line to ensure your store earns enough each month to remain profitable. Increase marketing efforts if sales start to fall or remain stagnant.

References

• National Bicycle Dealers Association: Want to Start a Bike Shop?

Resources

• Internal Revenue Service: Employer ID Numbers (EIN's)
• Small Business Administration: Write a Business Plan