A Sample Bike Share Business Plan Template

A bike-share company as the name implies is a company that makes bicycles available for shared use to individuals on a short-term basis for a price or free. Many bike share systems allow people to borrow a bike from a “dock” and return it to another dock belonging to the same system.

Docks are special bike racks that lock the bike, and only release it by computer control. The user enters payment information, and the computer unlocks a bike. The user returns the bike by placing it in the dock, which locks it in place. Other systems are dock-less.

For many systems, smartphone mapping apps show nearby available bikes and open docks. Statistics have it that the bike-sharing market was valued at USD 3 billion in 2020, and it is anticipated to reach USD 4 billion by 2026, registering a CAGR of about 6% during the forecast period (2022 – 2026).

Steps on How to Write a Bike Share Business Plan

Executive Summary

Chris Cross® Bike Share Company, Inc. is a standard and registered bike-share company that will be located in Santa Monica, California. We are located amid a city that attracts thousands of tourists and visitors, with the possible goal of creating a statewide membership system for weekend travelers.

Chris Cross® Bike Share Company, Inc. will ensure that all our bikes meet international standards and we are located near Metro stations and major bus stops, making it easier for commuters to bike from residential neighborhoods to a transit line, where they can drop the bike and continue on their way. Chris Maxwell is the founder and CEO of Chris Cross® Bike Share Company, Inc.

Company Profile

a. Our Products and Services

Chris Cross® Bike Share Company, Inc. will provide different sizes and brands of bikes for share and we have put in place a competent team that will ensure that all our bikes, docking, and payment systems meet and even surpass our customers’ expectations.

b. Nature of the Business

Our bike-share company will operate essentially as a club where patrons can pick up a membership and pay their subscription monthly, quarterly, or annually.

c. The Industry

Chris Cross® Bike Share Company, Inc. will operate in the bike-sharing industry.

SWOT Analysis

a. Strength
b. Weakness
c. Opportunities
i. How Big is the Industry?

The bike-sharing services industry is big in the United States and this can be supported by the fact that as of August 2022, there are nearly 10 million shared bikes and 3,000 bike-sharing systems across the world.

ii. Is the Industry Growing or Declining?

Yes, the bike-sharing services industry is growing. A recent report published shows that over the years, bike-sharing has experienced moderate growth. Industry revenue has increased at an annualized rate of 2.9 percent to reach $371.1 million, including an anticipated 2.4 percent.

Marketing Plan

a. Who Is Your Target Audience?

i. Age Range

Sales and Distribution Plan

a. Sales Channels

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, managed service providers, marketplaces, or value-added resellers—to market our bike-share services company.

Operational Plan

We plan to expand our revenue by 50 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include providing electric bike charging amenities and attracting tourists and visitors. These strategies will enable the firm to boost our service offerings and support revenue growth.

a. What Happens During a Typical Day at a Bike Share Company?
b. Production Process

There is no production process when it comes to the bike share services business.

c. Service Procedure

When a bike-share company is opened and everything is in place, they will either choose to welcome patrons based on membership or open their doors to people in the city where the bike-share services company is domiciled.

Financial Plan

a. Amount Needed to Start your Bike share service?

Chris Cross® Bike Share Company, Inc. would need an estimate of $550,000 to successfully set up our bike-share service in the United States of America. Please note that we will start with only five dozen bikes.

b. What are the Costs Involved?
c. Do You Need to Build a Facility? If YES, How Much Will it Cost?

Chris Cross® Bike Share Company, Inc. will build a new facility for our bike share services company (a facility that will accommodate our fleet) and it will cost us $200,000.

Financial Projection

a. How Much Should You Charge for your product/Service?

You can activate and deactivate the key for unlimited 24-hour periods, providing one-touch bike access via stored credit card when active. The daily key membership’s cost is $10 for the key and $7 per day when active.

b. Sales Forecast?
c. Estimated Profit You Will Make a Year?

Chris Cross® Bike Share Company, Inc. is projecting to make;

d. Profit Margin of a Bike Share Services Business Product/Service

The profit margin of a bike-share business is not fixed. It could range from 15 percent to 35 percent depending on some unique factors.

Growth Plan

a. How do you intend to grow and expand?

Chris Cross® Bike Share Company, Inc. will grow our bike-share company by first opening other outlets (docks) in key cities in the United States of America within the first five years of establishing the business and then will start selling franchises from the sixth year.

b. Where do you intend to expand to and why?

Chris Cross® Bike Share Company, Inc. plans to expand to:

The reason we intend to expand to these locations is the fact that the cities have the largest market for bike-sharing services in the United States. Internationally, we plan to expand to Canada, the United Kingdom, and Australia.

Exit Plan

Chris Cross® Bike Share Company, Inc. plans to exit the business via family succession. We have placed structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another without hitches.