BikeArt’s mission is to offer functional items and artwork made from recycled bicycle parts. Steve’s wife Shoodnt is one of the three artists who will create the art. The featured products include wall clocks as well picture frames, table tops, chair, table, mobiles wind chimes and book ends.
BikeArt is a separate kiosk that will be located in the Valley River Mall. BikeArt can exhibit larger items in the area due to the excellent terms and conditions of the lease. This should significantly increase sales as walk through traffic in the mall is very high.
BikeArt is expected to be profitable in month nine and have profits of nearly $40,000 by year three.
The first month will be spent setting up the kiosk and getting things started. This month, part-time employees are hired and trained. This first month will start slowly. The flow of customers passing by the kiosk will continue to increase sales from the second month.
Total startup costs are $45,000. This will be paid for by Steve Useitagyenâ€™s $25,000 equity investment and an additional $20,000 small-business loan.
Steve Useitagyen, the sole proprietor of the company, will operate it.
Steve Useitagyen holds the right qualifications to be a part of this niche market. University of Portland conferred a dual degree in business administration as well as art design. Steve was a bike shop mechanic during college, then he moved to sales and managed the shop for two more years after graduation.
BikeArt will employ three part-time employees for the kiosk. Steve will also be responsible for the purchasing, payroll and hiring.
BikeArt will target two segments of the market, bicycle enthusiasts and industrial art enthusiasts. Both of these groups are populous in Eugene. BikeArt is focusing its attention on these two groups, as they are the most likely buyers of this kind of art work.
BikeArt has several competitors:
- Other retailers in the mall.
- Galeries devoted to art.
- Bicycle dealers.
BikeArt can capitalize on the unique advantage it has of being the only dealer that deals exclusively with bicycle artwork. The mall is crowded all day so it’s like having your very own shop in the middle.
The company plans slow growth and steady cash flow to ensure a sustainable level before seeking expansion. BikeArt will then look to establish additional kiosks throughout Portland, Corvallis, Salem, and Corvallis. This expansion is estimated to occur sometime after year three.
Break-even Analysis shows that $15,212 in monthly revenue is required to reach break-even. BikeArt’’s products will be priced on a 12% net margin. Because BikeArt’s products will be locally created works of art, prices are estimated to range from $40 to $500 per piece.
The business is expected to reach profitability by month 9, with revenues of $147,000 and profits at $35,500 by the end year 2.
BikeArt is a company that creates functional and artistic items from bicycle parts. Our mission is to maintain and attract customers. If we follow this maxim, all else will fall into place. Our services will exceed our customers’ expectations.
These are the objectives for the first three year of operation:
- We want to create a kiosk that is product-based and whose primary goal it to exceed customers’ expectations.
- The number of products sold each year has increased by 20%
- To open a sustainable retail store that sells artwork and functional products made of recycled parts.