University Cycle Works, a bicycle specialty store, offers retail sales of new bikes, parts and accessories, as well as maintenance and repair services. It is centrally located in an area that is heavily used by students.

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 began to investigate the possibility of owning a bike shop two years ago. However, the Metroburg market was overcrowded. Hub realized that buying an existing shop would be a better option than looking for one. He approached his boss. After two years of negotiations, the University Cycle Works will be sold to Hub on July 1, 2001. The ultimate goal is a seamless transfer in ownership with all operations, staff, and bike lines remaining 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. Negotiations with suppliers have been a significant part of the planning for the past year. These negotiations were necessary to keep the existing financial agreements in place as the business changes hands. Hub’s good working relationships with sales representatives from various suppliers were a huge help in these negotiations. While the business plan is being reviewed, the suppliers have agreed to continue existing terms and date programs.

Please Note: This sample plan has been disguised to hide names and proprietary information as well as some financials.

1.1 Objectives

The objectives for University Cycle Works are:

1. Continue to provide the high quality of sales and services that University Cycle Works is known for.
2. Transfer ownership seamlessly.
3. Assist in the purchase of a business that is financially sound.
4. In the first year, repay any family members who provided a start-up loan.
5. Monthly and yearly sales equal or better than those of the previous owner.
6. Aim to improve sales of bicycle specific garments and rainwear over the year.
7. Marketing to new students is a great way to keep up with current growth in service revenue and sales.

1.2 Keys To Success

We are the preferred service provider for the University community and have been able to achieve this position in a prominent, high-visibility location.

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, it would be unacceptable to take on the risk of purchasing the business.

The owner and employees will benefit from the continuity provided by purchasing and continuing to use University Cycle Works.

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 recognize and address our customers by name, and want to be part of their university experience.