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 conveniently located in a highly-trafficked area, close to universities.
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 ‘#8220’ Hub has been the Assistant Manager of University Cycle Works for five-years. Hubert also has seven additional years of retail and service experience in the bicycle industry. 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. After two years of negotiations, the University Cycle Works will be sold to Hub on July 1, 2001. The goal is to seamlessly transfer ownership. Staff, bike lines and location will remain the same.
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. Hub’s good working relationships with sales representatives from various suppliers were a huge help in these negotiations. In the meantime, the suppliers have granted provisional continuation of existing terms.
This sample plan does not include names, proprietary information or financials.
1.1 Objectives
University Cycle Works’ objectives are:
- University Cycle Works remains committed to providing the best sales and support services.
- You can easily transfer ownership.
- Assist in the purchase of a business that is financially sound.
- Within the first year, repay the family member’s start-up loan.
- You will achieve monthly and annual sales equal or greater than the previous year’s under the previous owner.
- The goal is to increase sales of rainwear and garments that are bicycle-specific over the next year.
- For current growth in sales revenue and service revenue, you should focus your marketing efforts on new students.
1.2 Keys for Success
Our unique, high-visibility spot right adjacent to Metroburg State University has made us the leading service and bicycle dealer 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. The purchase of the business without this support would be unacceptable and risky.
Buying and continuing to use the recognized, well respected name University Cycle Works provides continuity for the customers, the owner, and the employees.
This is as important a product as any other. They are University Cycle Works’ lifeblood. University Cycle Works has always valued long-term relationships with its customers. We know and address our customers personally and are eager to be a part their university experience.