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 in a high-traffic area with a focus on universities.
University Cycle Works’ primary target market is the university student community. They typically have a turnover/growth of about 25% each year. The secondary market for University Cycle Works is the university faculty staff. The tertiary market includes the greater Metroburg area.
Hubert “Hub” Freewheeler, who has been assistant manager at University Cycle Works for five year, has seven years of experience in the bicycle retail and service industry. Hub explored the possibility of owning his bike business when he was just two years old. However, the Metroburg area seemed overcrowded with bicycle shops. Hub approached his boss to discuss the possibility of buying an existing store. Two years of negotiations culminated in the sale of University Cycle Works to Hub, effective July 1, 2001. It will result in a seamless transfer, leaving behind all staff, bikes, locations, and operations.
Metroburg Business Bank has requested that this business plan be prepared. It will also be presented to major suppliers of bicycles, accessories, parts and other products. 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. Hub’s close working relationship with the representatives of the different suppliers was an asset to these negotiations. These sales reps lobbied for Hub. The suppliers have approved continuation of the existing terms and dating programmes, subject to review of the business plan.
This sample plan does not include names, proprietary information or financials.
1.1 Objectives
The objectives for University Cycle Works are:
- University Cycle Works continues to deliver the highest quality sales and services.
- Facilitate a smooth transfer of ownership
- Maintain a financially strong business. Validate the trust and advocacy of others for this business purchase.
- Within one year, repay the family members’ start-up loans.
- Monthly and yearly sales equal or better than those of the previous owner.
- The goal is to increase sales of rainwear and garments that are bicycle-specific over the next year.
- To maintain growth in service and sales, focus marketing on the new student influx.
1.2 Keys for Success
Our prime, high visibility location right next to Metroburg State University has been crucial to our success in being the bike sales and service provider of choice for 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, it would be unacceptable to take on the risk of purchasing the business.
University Cycle Works, a trusted name, is available for purchase and continued use by the customer and employee.
The shop’s employees are just as important as the other items. It is crucial to retain and encourage them. They are the backbone of University Cycle Works. University Cycle Works has always valued long-term relationships with its customers. We want to be part in the university experience by addressing our customers by name.
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