Business idea: Based in the small rural village ofWest Bagborough, Cross-country Cycles strives to suit everyone’s needs when itcomes to having the best experience of cycling along the hills.
We offer arange of services ranging from an hour taster session to a full days rideaccompanied by one of our experienced staff, all along courses and trails ofdifferent lengths to suit all types of riders. Describe what makes a business successful Business 1 example (Describe the business and the features that make it successful) Business 2 example (Describe the business and the features that make it successful) Business 3 example (Describe the business and the features that make it successful) Business 4 example (Describe the business and the features that make it successful) Success means different things to different businesses. Success can be measured in capital, customers, or by the companies individual aims and objectives, and if they’ve been met Bicycle Chain: Bicycle chain sells a various range of bikes, including well known luxury brands of bike, including Trek and Giant. It is successful because it is one of a few shops in the area and It has 3 stores in total. Bicycle chain is in a prime place, in all 3 of its local towns.
It stocks a range of products form bikes, accessories and clothing. Bicycle chain charges higher prices for their bikes but this is still reasonable as all bikes sold are of a high quality. The business has social media pages to promote itself1. It lacks on other formats of promotion but the business is still successful Ralph Colman: Ralph Colman is another bicycle shop in Taunton. It is less high-end than Bicycle chain but it is still successful. They recently moved to a larger premise on Station Road. The brands they stock are less luxury than that of Bicycle Chain.
Ralph Colman’s promotion is again lacking but it still has a successful customer base, enough that it has to move to a larger store in 2016. ND Cycles: ND cycles is owned by a Sole trader, and is a small business. A feature of this business that makes it successful is that they specialise in mainly mountain and off-road bikes, so they have more range than the other Taunton stores. They also charge lower prices than the competition with bikes starting at £3992. ND is located on the outskirts of Taunton town centre, so they are in similar locations to other bicycle stores.
CHOSEN BUSINESS FEATURES HOW THE FEATURES COMPARE STRENGTHS HOW THE STRENGTHS COMPARE WEAKNESSES HOW THE WEAKNESSES COMPARE Bicycle Chain: – Good customer service reviews – Wide Varieties of bike, 31 types3 – Out of Town, warehouse location. Overall, in terms of stock, Bicycle Chain is ahead with 31 different variants of bikes compared to Ralph Colman’s 11 variants. Bicycle chain has an average of 4.3 star reviews and Ralph Colman has 4.9 star average, according to google. This shows that the slight difference is customer opinion and they find RC to be the better one. RC is also located within the Taunton town centre whereas Bicycle Chain is based on the outskirts of the town, which could separate the two businesses from the amount of passing trade and foot traffic they get. This could affect the business.
– Well established, with three stores locally. – Large product portfolio – Finance available Similarities. Both of the businesses offer finance to customers on the purchase of bikes. This gives the customer the opportunity to buy a better quality bike and pay for it monthly. They both have a good reputation in the local area and have very good customer reviews on internet sites. Differences. Both of the businesses are established in their own ways.
Bicycle chain has 3 locations in Somerset whereas Ralph Colman only have the one store in Taunton. Although Ralph Colman’s store is within the Taunton Town Centre and Bicycle chain is on the outskirts of Taunton. – Out of town location. – Similarities. Neither of the business has any major weaknesses that I could find after researching. They both have excellent customer service reviews and are successful Ralph Colman: – 11 variants of bikes4 – Centre of town store – Excellent customer service reviews – Town centre location – Free annual serving, for life. – Ride to work scheme – Finance available – Limited range of bikes – Differences.
Initial Business plan Introduction of business idea: Myproposed business idea is a cross-country cycling experience business based atthe foot of the Quantock hills, and using the hills as our track. We cater toall people whether they are beginners looking for a day out with the family, oran experienced rider wanting to ride all day long. The business offers alldifferent prices for different experiences, depending on length, type of bikeand track difficulty.
The proposed product/service including; vision andconcept Thevision for the business is to get more people active by cycling, while alsoenjoying the experience and while learning skills about cycling and the areaaround them. Using the Quantocks means that all cyclists will be in arecognised area of natural beauty. This will encourage people to use thebusiness to see the hills and views of the valley from the top, whileexercising and keeping fit and healthy. We will offer rides suited to everybodyto increase our target market, ranging from an hour taster session, forinexperienced riders or elders etc., all the way up to a full days riding forpeople wanting the full experience.
We will also offer the chance to ride withan experienced rider on the longer rides or for the nervous customers. This additionalstaff rider will be compulsory on the hour taster session and the full dayride, but is an optional extra on any other ride at a cost. Alongside the wholeexperience of cross-country cycling, we will offer a various range of productsin the unit where we are based in West Bagborough, such as cycling accessorieslike lights, clothing and helmets, for you to use for personal use. Theseproducts will be sold as well as things you may want to use on the day of yourexperience like maps of the Quantocks and surrounding areas, food & drinksand various nutrition bars. All of these products sold will likely increase thechance of the business performing successfully. The features and benefits of the product/service The features of mybusiness are various different standards of bikes.
It will range from low-endbikes, which are cheaper to ride and hire, all the way to the high end, fullsuspension, and luxury mountain bikes. Another feature of my business that setsme apart from the crowd is that we will be the only business that offers anyservice like this in this close proximity to the hills. There is no otherbusiness like these less than 10 miles from the peak of the Quantocks. Mybusiness is full of benefits. It is all about cycling; this means anyone thatuses my service will be keeping fit and healthy. This also fits with theGovernments aims and objectives, of trying to make the UK fitter and healthier.Statistics show that 64% of adults are obese in the UK5,so my business can help lower this statistic. Another benefit is that thebusiness is based in the South West of England, in the valley of the QuantockHills.
Cycling on the hills will make the rider see a well-recognised area ofnatural beauty and they can experience something they may not have had thechance to before. They can also do it while enjoying a new cycling experienceand learning new skills like orienteering and navigating. A benefit to theenvironment of my business is that there is no need for major amounts ofpollution because the bikes will be used to cycle up to the hills and thenalong the hills and back down. There is no need for any other vehicles.
The demand for this proposed product/service Ifeel there is a demand for this business in the local area because there is anincreasing demand in people wanting to be active with the growth is evenhigher, with activity having doubled since 2006/76.The NHS is also increasing the amount it spends on encouraging a healthylifestyle by promoting health products and services and investing in businessesthat are solely based around exercise and fitness, with the budget increased by£8.2 million over the past 2 years7.My business is focused primarily on exercise and fitness so this gives us anopportunity to receive funding from the government such as a grant. In recentyears the amount of visitors to the Quantock Hills; an area of outstandingnatural beauty, has increased. This may mean a larger demand for a businessthat uses the hills as a main part of their business, such as my initial idea.
The market research that needs to be carried out Formy business to reach its full potential and succeed I will need to carry out marketresearch. This can be carried out as primary research in the form ofquestionnaires. I will ask two types of people, people living in the local areaand people who enjoy cycling. I can ask people in the villages surrounding theQuantock hills and West Bagborough whether they enjoy cycling and if they thinkthat a cross-country cycling business is a good idea in the local area.
I willfind people that are interested in cycling in either bicycle stores in andaround the local area such as Bicycle Chain and Ralph Colman and ask them ifthey think they would use and benefit from a cross country cycling business inthe local area. If the answer is yes tothese questions, I can ask them what they would like to see from this sort of business,if they would use it and various questions about their personal exercisehabits. I feel that this market research will give me an idea of what thetarget market and customer base want from my business. The target customers Mytarget customers are people in the local area and committed cyclists. Althoughmy business is open to anyone that wants to enjoy the experience ofcross-country cycling, it will be focused mainly on the county of Somerset. Itis targeted to people that are already into casual cycling and may want toprogress into a more professional style with designated tracks, lengths anddifficulties or people living in the local area that want a day out or anfamily activity to do on a weekend. The lowest age we can accommodate at our businesswill be 15 years old because the health and safety precautions will be tooextensive to go any younger, and also it would require the purchase ofchildren’s bikes which is more added to the start-up cost of the business. Itwill be open to every social-economic group, and both genders and ages canrange from 15 – 65 because any younger or older poses an increased health andsafety risk.
The competition Asfar as I have researched, I cannot find any immediate competition in thesurrounding local areas. There is one ride that could pose a potential threatto my business. Ralph Colman occasionally organise rides starting at the samelocation as my rides would. They offer a daylong ride to promote new ranges ofmountain bikes they are stocking but this a rare event, about once every sixmonths, so I do not feel like this an overly large amount of competition.
Otherthan this occasional event, I could not find any other competition in the areanow. I would need to research this in the future to make sure no new threatshave arisen with my competition. How the product/service will be marketed. Atthe start of business, I will not have a lot of capital to spend on expensiveforms of promotions such as TV or radio adverts.
To promote myself at the startI would begin by putting business cards, posters and flyers in stores thatcould help promotion like cycling stores and activities stores in the Tauntonarea to begin with such as Go Outdoors. I would also make a website where thebusiness would be described and bookings would be available. It would also showmiscellaneous details like opening hours, staff members, types ofproducts/services on offer, and prices. In addition to the website, I wouldcreate social media pages such as Facebook, Instagram and Snapchat. All thesedigital promotions would help my businesses name become recognised, and startto build a digital footprint and reputation. Resources that will be needed – finance, equipment,skills, time, commitment and area of expertise Mybusiness will needs various bits of equipment.
I estimated I would need 15bikes at various different prices. I estimated that for 15 bikes ranging fromlow end to high end bikes it would cost the business £10,485 for the bikes. Ialso estimated that I the maximum I would spend on wages in the first yearwould be £56,500. The final cost to start up the premises in Bagborough would be£4,950 per annum for the unit. This makes the total costs for the start-up yearroughly £75,000.
Staff will be needed to help run my business and I believethat I would need 3 staff member to start-up my business. It would help mybusiness if the staff had an interest in cycling of any form but ideallycross-country. They would need to be committed to the job and would be requiredto work against a rota.
The business would be open 6 days a week, so each staffmember would be required at least 2 days a week, depending on other commitmentswith families and hobbies. Anylegal aspects that need to be considered. – Health and safety regulationsAsI previously described various health and safety regulations including the mainpoint about age ranges. There will be a restriction of 15 – 65 years oldbecause the health and safety precautions will be too much for any other ageranges. Riders will be required to wear a minimum of a helmet.
Any other safetyprecautions is at the riders discretion. – National minimum wageIwill be required to pay staff the national minimum wage, but I will be payingover that at £8 per hour per staff member. Actionplan – what needs to be done/when/by whom etc.
? Before I trading I will need to secure thepremises, a deal with a bike retailer to bulk buy the 15 bikes needed for start-up.I will also need to visit a wholesaler to purchase all sorts of drinks and foodavailable at the unit as well as nutrition products. Lastly, I will need toresearch and purchase all the accessories and products needed to stock up theunit, such as helmets, lights and clothing. I will need to do all this bymyself unless I can find a family member or friend to assist me in buying allthe items I need to have before I start trading as a business.
D2 – 2 PARAGRAPHS Afterlooking at all the factors that affect my business, I think it will likely be asuccess. I will be carrying out market research I will learn what the targetmarket and customer base will want. The competition in the area is not aproblem because my research as shown that there is no serious competition inthe area.
I also have the necessary health and safety regulations to make suremy staff and my customer & consumer are working and having a safeexperience while using and working at my business. I have thoroughly thought ofand planned all the costs that I need to spend in order to start up mybusiness, so overall I feel confident that I have planned enough to have aviable business idea. Things that could affect my business is alack of funds as the costs of the first year of trading is estimated to be£75,000. If the business cannot secure a loan or a grant, finance could be aproblem.
Also negotiating a deal with various suppliers and wholesalers to bulkbuy the accessories and nutrition to secure a cheaper deal. Trying to secure adeal could take some time and effort which may slow down the start-up process. Overall, my business has the potential tobecome a success and grow at a fast rate. I am confident that is a viable ideaand I am comfortable with the amount of planning I have done 1en-gb.facebook.com/bicyclechainUK/ 25/01/182www.ndcycles.co.uk/shop/4593530823 24/01/183https://bicyclechain.co.uk/shop/bikes/(24/01/18)4 www.ralphcolman.co.uk 25/01/185http://www.bbc.co.uk/news/health-2557640026/01/186https://www.kingsfund.org.uk/blog/2016/12/demand-and-activity-nhs-still-rising26/01/187https://www.ifs.org.uk/uploads/publications/bns/BN201.pdf26/01/17