Bicycle rental is a lucrative business that has been gaining popularity in recent years. This business has regular customers, it quickly pays off, and its opening will require a few basic documents and a minimum of investments.
Investments: from 100 000 UAH.
Profitability: from 20,000 UAH per month.
Bicycle rental is a seasonal business, but quite profitable. The main activity is bicycle rental. In addition, you can offer many related products. Cycling is considered the most suitable activity between April and October. During these 7 months you will be able to return your investments and get a good profit.
Search for a room
Bicycle rental should be organized in crowded places. It is advisable to find a place near the park or any tourist base. The area should be lively and popular among residents or visitors to the city. But first you need to find out from the city administration whether it is possible to ride a bike in the area you have chosen. You will also need to rent a room, the minimum area of which should be 20 sq.m.
Purchase and installation of the necessary equipment
No need to buy many bikes at once. For starters, 10-15 pieces are enough. In the future, if demand is high, you will be able to buy some of the most popular types.
Basic requirements for bicycles:
- Frame size should be 18-20 inches;
- Durable, lightweight metal;
- shock absorbers;
- It is advisable to buy outdoor models because they are comfortable, durable and with reliable wheels;
- Mandatory presence in the assortment of women’s and children’s models;
- Cheap bike brands break down quickly, but better ones are more comfortable and will attract more buyers to your product, so don’t skimp on it.
- A good bike for adults costs 5-10 thousand UAH, and for children – 4-5 thousand UAH.
- So the purchase of bicycles will require about 100 thousand UAH.
It is best to buy the necessary equipment in winter, when manufacturers offer big discounts. You can also save money by purchasing multiple units in one place. Be sure to buy repair tools, because after each rental you need to check the condition of the bike and carry out repairs.
When opening a company, two people will be enough to work with clients in shifts, one of which may be the owner himself. Often rented bikes break down for one reason or another and need to be repaired. And since the impeccable technical condition of the bike is the most important criterion for the success of this business, then you need to hire a bicycle repair specialist for a permanent job. For proper financial reporting, it is not necessary to hire a full-time accountant, this work can be performed by a specialist with a contract.
Promotion and advertising
In addition to renting bikes, you can offer buyers accessories and protective equipment. It is advisable to install a refrigerator with drinks and make a place to relax. Such techniques will increase the profitability of the business by 2 times.
You can use the following methods to advertise your business:
- bright sign;
- creation of a website or group in social networks;
- it is desirable to participate in the public life of the city.
Services and profit
Bicycles can be rented for an hour or for several days. The administrator draws up a rental agreement, the bike is issued on the security of a passport or driver’s license and in the amount of 3000 rubles. After the bike is returned, the deposit is returned to the renter, provided that the bike is not damaged. If found, the repair amount will be deducted from the security deposit. The tenant gets acquainted with the price list of the most frequent damages at the stage of registration of the lease.
In fact, the company provides only two types of services: bike rental for adults and bike rental for children. The cost of an hourly rental of an adult bike is 150 UAH, a child bike is 100 UAH. Additional discounts available for day/night (12 hour) or 24 hour rentals. Given that at least 80% of renters prefer to rent bikes for no more than 3-4 hours, discounts do not apply in most cases.
In the season from April to October, all investments pay off.
The bike rental business comes with the following types of risks:
Theft. To prevent this from happening, an agreement is concluded in which the passport data of the client is recorded, or the client pays a certain amount as a deposit. However, none of these methods can 100% insure you against fraud.
The dishonesty of employees who can give away bikes without signing a contract or indicate shorter terms, leaving the difference to themselves. Good wages and control will avoid such cases.
Weather. Rain and heat are not conducive to comfortable cycling, but you cannot influence this risk factor.