University Cycle Works is a well-known bicycle specialty shop that sells new and used bicycles, parts, accessories, and clothing. It also offers maintenance and repair services. It is centrally located in an area that is heavily used by students.
University Cycle Works’ primary market is the university student body. This population usually has a turnover of 25% to 25% per year. The university faculty members and staff make up the secondary market. The greater Metroburg community makes up the tertiary marketplace.
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 started investigating the possibility of starting a bike business in Metroburg two years ago. But, the market was already crowded. Realizing that a more practical option would be to buy an existing shop, Hub approached his current boss. After two years’ of negotiations, University Cycle Works was sold to Hub. It will take effect on July 1, 2001. It will be seamless ownership transfer with no changes to staff, location, or operations.
Metroburg Business Bank and the major suppliers of new bikes, accessories and parts are currently reviewing this business plan. This year’s planning was largely based on negotiations with the suppliers to preserve the current financial arrangements 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 provisionally granted continuation of existing terms and dating programs, pending review of this business plan.
Notice: Names and confidential information have been disguised within this sample plan.
University Cycle Works’ objectives are:
- University Cycle Works continues to deliver the highest quality sales and services.
- Facilitate seamless ownership transfers
- Maintain a financially sound business and gain the support and trust of others in order to buy this business.
- Within one year, repay the family members’ start-up loans.
- Attain monthly and yearly revenues equal or higher than in the previous years under the former owner.
- Over the course of the year, we aim to increase sales for rainwear and clothing that is bicycle specific.
- For current growth in sales revenue and service revenue, you should focus your marketing efforts on new students.
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.
Financial planning is feasible and achievable due to the existence of established accounts payable, sales programs, co-op advertising resources and co-op advertising by suppliers of parts, accessories, and bicycles. Without this support, purchasing the business would not be acceptable.
Buying and continuing to use the recognized, well respected name University Cycle Works provides continuity for the customers, the owner, and the employees.
The shop’s employees are just as important as the other items. It is crucial to retain and encourage them. They are the life of University Cycle Works. University Cycle Works has had a long history of building relationships with customers. We are proud to address and recognize our customers by their names and desire to be a part of their university experience.