University Cycle Works
University Cycle Works is an established bicycle specialty store, offering retail sales of new bicycles, parts and accessories, clothing, and maintenance and repair service. It is located in a heavily trafficked, university-focused area.
The primary market for University Cycle Works is the university student population, which normally has a turnover/growth of approximately 25% each year. The secondary market is the university faculty and staff, and the tertiary market is the greater Metroburg community.
Hubert “Hub” Freewheeler has been the assistant manager of University Cycle Works for five years, with an additional seven years of bicycle industry retail sales and service experience. Hub first began investigating the ownership of a bike business two years ago, however, the local Metroburg market seemed saturated with shops. Realizing that a more practical option would be to buy an existing shop, Hub approached his current boss. The result of two years of negotiations will be the sale of University Cycle Works to Hub taking effect July 1, 2001. The goal will be a seamless transfer of ownership, with staff, bike lines, location, and operations unchanged.
This business plan is being prepared for presentation to Metroburg Business Bank, and to the store’s major suppliers of new bicycles, accessories, and parts. A substantial part of the past year’s planning has been negotiations with these suppliers to maintain the current financial agreements as the business changed hands. These negotiations benefited greatly by the good working relationships Hub had developed with the various suppliers’ sales representatives, who advocated on Hub’s behalf. The suppliers have provisionally granted continuation of existing terms and dating programs, pending review of this business plan.
Note: Names, proprietary information, and some financials have been disguised in this sample plan.
The objectives for University Cycle Works are:
- Continue to provide the high quality of sales and services that University Cycle Works is known for.
- Manage a seamless transfer of ownership.
- Maintain a financially healthy business and validate the trust and advocacy of other people in support of this business purchase.
- Repay the start-up loan provided by family members within the first year.
- Achieve monthly and yearly sales equal to or better than the previous year under the former owner.
- Aim to improve sales of bicycle specific garments and rainwear over the year.
- Focus marketing on new student influx to maintain current growth in sales and service revenue.
1.2 Keys to Success
Our premier, high visibility location immediately adjacent to the State University in Metroburg has been critical to our success as the bicycle sales and service purveyor of choice to the university community.
The continuance of established accounts payable, sales programs, and co-op advertising resources by suppliers of bicycles, accessories, and parts makes the financial plan reasonable and attainable. Without this support, the purchase of the business would be unacceptably risky.
Buying and continuing to use the recognized, well respected name University Cycle Works provides continuity for the customers, the owner, and the employees.
Retaining and promoting the current employees of the shop is as important as any other item here. They are the life of University Cycle Works. Long-term relationships with customers have always been a hallmark of the University Cycle Works experience. We recognize and address our customers by name, and want to be part of their university experience.