Strategic Plan

Bike Shop Example

Analysis

Lean Canvas

Problem

There are no local bike stores in our area, leaving cyclists at the mercy of large and impersonal online retailers or having to travel long distances.

As a result, they have to:

1. Do their own research, which they find daunting.
2. Travel inconvenient distances to large retailers, or take a chance ordering online and deal with difficult servicing and returns policies.

Existing Alternatives

Large impersonal discount stores.

The nearest one is in Guildford. They have a small stock range, but no-one who can give any meaningful advice.

Channels

Email Marketing

Email marketing can be used to reach customers who have shown interest in Bob's Bikes's products and services. Emails can be used to share product information, promotions and cycling tips. Bob's Bikes should ensure its emails are engaging, relevant and not too frequent to avoid annoying recipients.

Local Cycling Events

Sponsoring or participating in local cycling events is a great way to reach Bob's Bikes's target customer segments. These events attract a large number of cycling enthusiasts, families and tourists who are likely to be interested in Bob's Bikes's products and services. Bob's Bikes should consider setting up a stall at these events to showcase its products and offer on-the-spot bike servicing.

Physical Store

Bob's Bikes's physical store in the Surrey Hills is a key channel for reaching its target customer segments. The store allows customers to see, touch and try out products before purchasing, which is particularly important for high-investment items like bicycles. The store also provides a location for bike servicing. Bob's Bikes should ensure the store is welcoming, well-stocked and staffed by knowledgeable employees to attract and retain customers.

Social Media

Social media platforms like Facebook, Instagram and Twitter can be used to reach and engage with Bob's Bikes's target customer segments. These platforms can be used to share product information, promotions, cycling tips and local cycling news. Bob's Bikes should regularly post engaging content and interact with followers to build a strong online community.

Website and Online Store

An online presence is crucial for reaching a wider audience. Bob's Bikes's website and online store can provide information about products and services, allow customers to make purchases from anywhere, and offer a platform for customer service inquiries. The website should be user-friendly, mobile-optimized and SEO-friendly to attract and retain customers. It should also include detailed product descriptions, customer reviews and a secure checkout process.

Customer Segments

Commuter Cyclists

This segment consists of working professionals who use bicycles as their primary mode of transportation. The size of this segment is substantial and is expected to grow due to increasing environmental consciousness and urban congestion. They are typically aged between 25-45, have a moderate to high income, and value quality, durability, and service. They are interested in Bob's Bikes for its range of high-quality, reliable bikes and excellent after-sales service.

I interviewed 25 cyclists at the station on the week of 25 January, and almost all of them thought the idea was great.

Leisure Cyclists

Leisure cyclists are individuals who cycle for recreation or fitness. This segment is large and stable, with a broad age range from children to seniors. They are interested in Bob's Bikes for its variety of bikes suitable for different terrains and levels of cycling proficiency, as well as its friendly, knowledgeable staff.

Cycling Tourists

Cycling tourists are individuals or groups who visit the area specifically for cycling tourism. The size of this segment is seasonal and fluctuates based on tourism trends. They are interested in Bob's Bikes for its bike rental services, local knowledge, and cycling route recommendations.

Eco-conscious Consumers

Eco-conscious consumers are individuals who make purchasing decisions based on environmental impact. This segment is growing rapidly due to increasing awareness of climate change. They are interested in Bob's Bikes for its range of eco-friendly bikes and commitment to sustainable business practices.

Value Proposition Definitions

DIY or done-for-you servicing options - with the option of repairs being done whilst daily commuter storage

1. Annual service and storage contracts

Early Adopters

Members at the local gym

They're enthusiastic, always looking for something new, and happy to spread the word to try and get more people involved.

Cost Structure

Store Operating Costs

These are the costs associated with running the physical store, including rent, utilities, and maintenance. These costs are typically fixed and are incurred on a regular basis (monthly or annually). They are indirect costs as they do not directly contribute to the production or sale of goods, but are necessary for the operation of the business.

Staff Costs

These are the costs associated with employing skilled staff to manage the store, service bikes, and provide customer service. These costs are incurred on a regular basis (monthly or bi-weekly) and are typically fixed, as they are based on salaries or hourly wages. They are direct costs as they directly contribute to the production and sale of goods and services.

Marketing Costs

These are the costs associated with promoting Bob's Bikes through various channels such as email marketing, local cycling events, social media, and the website and online store. These costs are typically variable, as they can fluctuate based on the scale and frequency of marketing activities. They are incurred when marketing activities are carried out and are considered indirect costs as they do not directly contribute to the production or sale of goods, but are necessary for driving sales.

Inventory Costs

These are the costs associated with purchasing bicycles, cycling equipment and clothing for resale. These costs are variable, as they depend on the quantity and type of inventory purchased, and are incurred when inventory is purchased from suppliers. They are direct costs as they directly contribute to the sale of goods.

Website and Online Store Costs

These are the costs associated with maintaining and updating the website and online store, including hosting fees, website design and maintenance, and online payment processing fees. These costs are typically fixed and are incurred on a regular basis (monthly or annually). They are indirect costs as they do not directly contribute to the production or sale of goods, but are necessary for the operation of the business.

Revenue Structure

Online Sales

This is another one-off type of revenue for Bob's Bikes, generated through the sale of bicycles, cycling equipment and clothing on their website and online store. The revenue is paid in advance by the customer. The revenue drivers for this source include the range of products available, the convenience of online shopping, and the marketing efforts through email and social media.

Event Participation & Sponsorship

This is a one-off type of revenue for Bob's Bikes, generated through participation in local cycling events, where they can sell their products and services. The revenue is paid in arrears, after the event. The revenue drivers for this source include the popularity of the event, the range of products and services offered, and the marketing efforts.

Bike Servicing

This is a recurring source of revenue for Bob's Bikes, where customers bring their bikes for regular servicing or repairs. The revenue is paid in arrears, after the service is completed. The revenue drivers for this source include the DIY or done-for-you servicing options, the skilled staff, and the convenient location of the store.

Bicycle and Equipment Sales

This is the primary source of revenue for Bob's Bikes. It includes the sale of bicycles, cycling equipment and clothing. This is a one-off type of revenue, paid in advance by the customer. The revenue drivers for this source include the range of bikes available for all price points, the convenient location of the store, and the marketing efforts through various channels.

Loyalty Programmes

This is a recurring source of revenue for Bob's Bikes, where customers pay a regular fee to be part of a loyalty programme that offers them discounts and other benefits. The revenue is usually paid in advance. The revenue drivers for this source include the value proposition of the loyalty programme, the community building efforts, and the marketing efforts.

Business Model Canvas

Key Partners

Bicycle and Equipment Suppliers

Local Cycling Clubs and Events

Digital Marketing Agency

Local Transport Authorities

Customer Relationship Management (CRM) Software Provider

Key Activities

After sales support and bike

Keeping people's bikes on the road.

Event organisation

Organising local events for amateur cycling enthusiasts.

Sales

Selling new and used bikes, spare parts and bike accessories.

Marketing

Attracting new customers and keeping existing customer engaged and coming back.

Purchasing

Buying Bikes, bike parts and accessories for resale.

Customer Relationships

Self-Service

Bob's Bikes should provide self-service options for customers who prefer to shop or find information independently. This could involve maintaining a comprehensive and user-friendly website and online store, providing detailed product information and reviews, and offering online tools or guides for bike maintenance. This type of relationship is particularly important for the Commuter Cyclists and Eco-conscious Consumers segments, who may value the convenience and autonomy of self-service.

Personal Assistance

Bob's Bikes should aim to provide a high level of personal assistance to its customers. This could involve offering expert advice on the best bike or equipment to suit a customer's needs, helping customers with repairs and maintenance, and providing personalised recommendations based on a customer's cycling habits and preferences. This type of relationship is particularly important for the Commuter Cyclists and Cycling Tourists segments, who may require more specialised advice and assistance.

Automated Services

Bob's Bikes could utilise automated services to streamline customer interactions. This could involve using email marketing to send personalised product recommendations, reminders for bike servicing, or updates on local cycling events. This type of relationship is likely to be attractive to all customer segments, as it provides timely and relevant information in a convenient format.

Community Building

Bob's Bikes should also focus on building a strong community among its customers. This could involve hosting local cycling events, creating online forums or social media groups where customers can share tips and experiences, and promoting a sense of camaraderie and shared passion for cycling. This type of relationship is particularly attractive to the Leisure Cyclists and Eco-conscious Consumers segments, who are likely to value the social and environmental aspects of cycling.

Loyalty Programmes

Bob's Bikes could establish loyalty programmes to reward repeat customers. This could involve offering discounts or free services to customers who make regular purchases, or providing exclusive benefits to members of a loyalty club. This type of relationship is likely to be attractive to all customer segments, as it provides tangible benefits and incentives for continued patronage.

Customer Segments

Commuter Cyclists

This segment consists of working professionals who use bicycles as their primary mode of transportation. The size of this segment is substantial and is expected to grow due to increasing environmental consciousness and urban congestion. They are typically aged between 25-45, have a moderate to high income, and value quality, durability, and service. They are interested in Bob's Bikes for its range of high-quality, reliable bikes and excellent after-sales service.

I interviewed 25 cyclists at the station on the week of 25 January, and almost all of them thought the idea was great.

Leisure Cyclists

Leisure cyclists are individuals who cycle for recreation or fitness. This segment is large and stable, with a broad age range from children to seniors. They are interested in Bob's Bikes for its variety of bikes suitable for different terrains and levels of cycling proficiency, as well as its friendly, knowledgeable staff.

Cycling Tourists

Cycling tourists are individuals or groups who visit the area specifically for cycling tourism. The size of this segment is seasonal and fluctuates based on tourism trends. They are interested in Bob's Bikes for its bike rental services, local knowledge, and cycling route recommendations.

Eco-conscious Consumers

Eco-conscious consumers are individuals who make purchasing decisions based on environmental impact. This segment is growing rapidly due to increasing awareness of climate change. They are interested in Bob's Bikes for its range of eco-friendly bikes and commitment to sustainable business practices.

Value Proposition Definitions

DIY or done-for-you servicing options - with the option of repairs being done whilst daily commuter storage

1. Annual service and storage contracts

Key Resources

Website and Online Store

Bob's Bikes will need a website and online store. The website will need to be easy to use, with clear information about the bikes and equipment for sale, and the services offered. The online store will need to be secure, with a smooth checkout process. This is important because the website and online store are key channels to market for Bob's Bikes.

Skilled Staff

Bob's Bikes will need skilled staff who can provide personal assistance to customers, service bikes, and manage the store. The staff will need to have good knowledge of bikes and cycling equipment, and be able to provide advice to customers. This is important because personal assistance is a key part of Bob's Bikes's customer relationships and the ability to service bikes is a key part of their value proposition.

Community Building and Loyalty Programme Resources

Bob's Bikes will need resources for building a community around their brand and running loyalty programmes. This could include organising local cycling events, and managing a loyalty programme with rewards for regular customers. This is important because community building and loyalty programmes are key aspects of Bob's Bikes's customer relationships.

Physical Store and Inventory

Bob's Bikes will need a physical store in a convenient location near the station. This store will need to be large enough to display a range of bikes and cycling equipment for all price points. The store will also need to have a workshop area for servicing bikes. The inventory will need to be managed effectively to ensure that popular items are always in stock. This is important because the physical store is one of Bob's Bikes's main channels to market and the range of bikes and equipment is a key part of their value proposition.

Marketing Resources

Bob's Bikes will need resources for email marketing and social media marketing. This could include software for managing email campaigns, and time and skills for creating engaging social media content. This is important because email marketing and social media are key channels to market for Bob's Bikes.

Channels

Email Marketing

Email marketing can be used to reach customers who have shown interest in Bob's Bikes's products and services. Emails can be used to share product information, promotions and cycling tips. Bob's Bikes should ensure its emails are engaging, relevant and not too frequent to avoid annoying recipients.

Local Cycling Events

Sponsoring or participating in local cycling events is a great way to reach Bob's Bikes's target customer segments. These events attract a large number of cycling enthusiasts, families and tourists who are likely to be interested in Bob's Bikes's products and services. Bob's Bikes should consider setting up a stall at these events to showcase its products and offer on-the-spot bike servicing.

Physical Store

Bob's Bikes's physical store in the Surrey Hills is a key channel for reaching its target customer segments. The store allows customers to see, touch and try out products before purchasing, which is particularly important for high-investment items like bicycles. The store also provides a location for bike servicing. Bob's Bikes should ensure the store is welcoming, well-stocked and staffed by knowledgeable employees to attract and retain customers.

Social Media

Social media platforms like Facebook, Instagram and Twitter can be used to reach and engage with Bob's Bikes's target customer segments. These platforms can be used to share product information, promotions, cycling tips and local cycling news. Bob's Bikes should regularly post engaging content and interact with followers to build a strong online community.

Website and Online Store

An online presence is crucial for reaching a wider audience. Bob's Bikes's website and online store can provide information about products and services, allow customers to make purchases from anywhere, and offer a platform for customer service inquiries. The website should be user-friendly, mobile-optimized and SEO-friendly to attract and retain customers. It should also include detailed product descriptions, customer reviews and a secure checkout process.

Cost Structure

Store Operating Costs

These are the costs associated with running the physical store, including rent, utilities, and maintenance. These costs are typically fixed and are incurred on a regular basis (monthly or annually). They are indirect costs as they do not directly contribute to the production or sale of goods, but are necessary for the operation of the business.

Staff Costs

These are the costs associated with employing skilled staff to manage the store, service bikes, and provide customer service. These costs are incurred on a regular basis (monthly or bi-weekly) and are typically fixed, as they are based on salaries or hourly wages. They are direct costs as they directly contribute to the production and sale of goods and services.

Marketing Costs

These are the costs associated with promoting Bob's Bikes through various channels such as email marketing, local cycling events, social media, and the website and online store. These costs are typically variable, as they can fluctuate based on the scale and frequency of marketing activities. They are incurred when marketing activities are carried out and are considered indirect costs as they do not directly contribute to the production or sale of goods, but are necessary for driving sales.

Inventory Costs

These are the costs associated with purchasing bicycles, cycling equipment and clothing for resale. These costs are variable, as they depend on the quantity and type of inventory purchased, and are incurred when inventory is purchased from suppliers. They are direct costs as they directly contribute to the sale of goods.

Website and Online Store Costs

These are the costs associated with maintaining and updating the website and online store, including hosting fees, website design and maintenance, and online payment processing fees. These costs are typically fixed and are incurred on a regular basis (monthly or annually). They are indirect costs as they do not directly contribute to the production or sale of goods, but are necessary for the operation of the business.

Revenue Structure

Online Sales

This is another one-off type of revenue for Bob's Bikes, generated through the sale of bicycles, cycling equipment and clothing on their website and online store. The revenue is paid in advance by the customer. The revenue drivers for this source include the range of products available, the convenience of online shopping, and the marketing efforts through email and social media.

Event Participation & Sponsorship

This is a one-off type of revenue for Bob's Bikes, generated through participation in local cycling events, where they can sell their products and services. The revenue is paid in arrears, after the event. The revenue drivers for this source include the popularity of the event, the range of products and services offered, and the marketing efforts.

Bike Servicing

This is a recurring source of revenue for Bob's Bikes, where customers bring their bikes for regular servicing or repairs. The revenue is paid in arrears, after the service is completed. The revenue drivers for this source include the DIY or done-for-you servicing options, the skilled staff, and the convenient location of the store.

Bicycle and Equipment Sales

This is the primary source of revenue for Bob's Bikes. It includes the sale of bicycles, cycling equipment and clothing. This is a one-off type of revenue, paid in advance by the customer. The revenue drivers for this source include the range of bikes available for all price points, the convenient location of the store, and the marketing efforts through various channels.

Loyalty Programmes

This is a recurring source of revenue for Bob's Bikes, where customers pay a regular fee to be part of a loyalty programme that offers them discounts and other benefits. The revenue is usually paid in advance. The revenue drivers for this source include the value proposition of the loyalty programme, the community building efforts, and the marketing efforts.

Products / Services

Bike maintenance workshops (Existing Product)

Market Share: %

Market Growth Rate: %

Contribution: %

"Storage & Service" contracts (Existing Product)

Market Share: %

Market Growth Rate: %

Contribution: %

Bike maintenance tools (Existing Product)

Market Share: %

Market Growth Rate: %

Contribution: %

Bike Servicing (Existing Product)

Market Share: %

Market Growth Rate: %

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New and used bikes (Existing Product)

Market Share: %

Market Growth Rate: %

Contribution: %

SWOT Analysis

Strengths Excellent relationships with bike and accessory manufacturers and importers

Weaknesses

Opportunities Around half of the local cycling Facebook group who responded to my post said they would like to be notified of a new cycling shop opening in the area. 10% of local commuters would cycle to the station if it were easier, and 30% of those that do struggle to maintain their bikes 347 people on the local Nextdoor App for Reigate reacted positively to having a bike shop that promotes and stocks eco-friendly bikes. About a third of the local tourist promotion websites responded that they would list Bob's Bikes in their local directory

Threats

Insight Details

Around half of the local cycling Facebook group who responded to my post said they would like to be notified of a new cycling shop opening in the area.

I posted on the Reigate Cyclists Facebook Group asking if people would be interested in being notified of a new cycle shop opening in their area. The Group has 347 active members and 173 gave their email address on the Wailtlist Form in my post.

Here's a link to the Waitlist I created to capture email addresses: https://yep.so/p/bobs-bike-shop

Excellent relationships with bike and accessory manufacturers and importers

I have been a buyer for Evans Cycles for 20 years.

• Evans Cycles:

10% of local commuters would cycle to the station if it were easier, and 30% of those that do struggle to maintain their bikes

We interviewed 100 commuters at Reigate train station over the course of one week (5-9 February)

• 10% of those who don't cycle to the station said they were put off by the cost of maintaining a bike.
• 30% of those who do cycle to the station said they found keeping their bike in good order difficult and had to stop cycling for more than 2 weeks at least once a year whilst sorting issues out.

347 people on the local Nextdoor App for Reigate reacted positively to having a bike shop that promotes and stocks eco-friendly bikes.

Of the responses which consisted of comments and emojis, 347 were positive and 4 negaative (you always get some people who like to argue).

About a third of the local tourist promotion websites responded that they would list Bob's Bikes in their local directory

I found 10 websites that promote tourisrm in the Reigate area and emailed them to see if they would list Bob's Bikes for tourists. 3 of them resonded that they would. 2 said they would if we paid them and 5 did not respond. No negative responses yet.

Competitive Environment

Competitors

Direction

Vision

To have somewhere that people in the Reigate area can go to find bikes, expertise and local area knowledge.

Mission

At Bob's Bikes, our mission is to empower the Reigate community by providing a welcoming and knowledgeable local bike shop that caters to the diverse needs of eco-conscious consumers, commuter cyclists, leisure cyclists, and cycling tourists. We are dedicated to offering a comprehensive range of bicycles, cycling equipment, and clothing, along with expert servicing options, all delivered with a personal touch and a commitment to sustainability. By fostering strong relationships with our customers and suppliers, and leveraging our local expertise, we aim to make cycling accessible, enjoyable, and convenient for everyone in the Surrey Hills. Our goal is to be the go-to destination for all things cycling, enhancing the health, well-being, and environmental consciousness of our community.

Scorecard

Perspective	Goals	Objectives	Performance Indicators			Commentary

Planning

Initiatives

Buy Stock

Buy initial stock (and then restock as required)

Costs

Description	Amount	Notes
Buy initial stock	300000.00	on initiative start date
Restock regularly	50000.00	every 1 month from initiative end date, and escalating at 5.00% annualised

Secure Premises

• Identify and secure a strategically located premises that's accessible to your target market, with good visibility and footfall.
• Consider the layout and design of your shop to ensure it's inviting and functional, with space for retail, servicing, and customer interactions.

Costs

Description	Amount	Notes
Commercial Real Estate Agents Fees	10000.00	on initiative start date
Rent	2000.00	every 1 month from initiative end date, and escalating at 5.00% annualised
Utilities	500.00	every 1 month from initiative end date

Launch Event

Plan and execute a launch event:

1. Book venue
2. Send out invitations
3. Arrange catering

Try to invite a local cycling celebrity (e.g. ex-Team GB member) as well as local radio stations/press etc.

Costs

Description	Amount	Notes
Event costs	2000.00	spread from initiative start date to initiative end date

Build Supply Chain Relationships

Establish relationships with suppliers of bicycles, cycling equipment, and clothing. Consider partnerships with both mainstream and niche brands to offer a wide product range.

• Attend trade fairs.
• Subscribe to Bike Experts Quarterly magazine - the premier publication for the bike trade.

Costs

Description	Amount	Notes
Bike Experts Quarterly subscription	100.00	every 3 months from initiative start date, and escalating at 3.00% annualised

Shop Fitting

Fit and decorate the shop including a shop-front area and workshop area.

Costs

Description	Amount	Notes
Shop fitting costs	5000.00	spread from initiative start date to initiative end date

Set up web site and marketing and inventory management systems

Costs

Description	Amount	Notes
End-to-end solution set up	10000.00	on initiative start date
Ongoing license fee	1000.00	every 1 month from initiative end date, and escalating at 4.00% annualised

Timeline

Financial Projection

Projection of revenues and costs for 12 months.

Source	Revenue/Expense Description	11/2024	12/2024	01/2025	02/2025	03/2025	04/2025	05/2025	06/2025	07/2025	08/2025	09/2025	10/2025
Strategic Initiatives
Buy Stock	Restock regularly	-51,059	-51,269	-51,487	-51,692	-51,891	-52,112	-52,326	-52,549	-52,765	-52,990	-53,215	-53,435
Secure Premises	Utilities	-500	-500	-500	-500	-500	-500	-500	-500	-500	-500	-500	-500
	Rent	-2,051	-2,059	-2,068	-2,076	-2,084	-2,093	-2,102	-2,111	-2,119	-2,128	-2,137	-2,146
Launch Event	Event costs	-2,000
Build Supply Chain Relationships	Bike Experts Quarterly subscription		-102			-103			-104			-105
Set up web site and marketing and inventory management systems	Ongoing license fee	-1,017	-1,020	-1,024	-1,027	-1,030	-1,034	-1,037	-1,041	-1,044	-1,048	-1,051	-1,055
Subtotal		-56,627	-54,951	-55,079	-55,295	-55,608	-55,738	-55,965	-56,304	-56,429	-56,666	-57,009	-57,135
Net Profit		-56,627	-54,951	-55,079	-55,295	-55,608	-55,738	-55,965	-56,304	-56,429	-56,666	-57,009	-57,135
CUMULATIVE TOTAL		-56,627	-111,578	-166,657	-221,952	-277,560	-333,299	-389,264	-445,568	-501,996	-558,662	-615,671	-672,806

Control

Actions

Action	Description	Due Date	Completed
Simon will provides notes of all his research about local cycling conditions 1 week		29/02/2024	False

Generic Groups

Commuter Cyclists

Cycling Tourists

Eco-conscious Consumers

Leisure Cyclists

Organisations