Difference between revisions of "Talk:Bicycle Economic Issues"

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(Economics of Opening A Bike Shop)
 
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Latest revision as of 16:16, 5 February 2013

Three friends in San Francisco decided to start up a bike shop in an area where frankly there was no shortage of bike shops. However, they somehow managed to make their store, called Huckleberries Bicycles, a huge success. What did it take to get this business started, and how did they become such a huge success? First off all, starting up their bike shop required about $300,000-350,000. Some of those expenses came from rent which was $6,000-8,000 per month, $100,000 in renovations, $75,000 for the initial inventory, $50,000 for miscellaneous expenses, and a $100,000 buffer. In addition to expenses, they had to speak with bicycle manufacturers and figure out who they were going to buy from and sell in their store. Fortunately, most bike dealers will give the store some form of credit with 0% interest for a short time to help you get going.

So what was the trick that made them so successful? One the government actually helped out with Huckleberries. The reason for this being that they were starting up this bike shop in a bad area full of drug addicts, prostitutes, and thieves. Because of this the government lent a hand and connected the store owners with a lender who underwrote their loan as well as introduced them to the person who would become their landlord.

The next step was advertisement. Using Google, Facebook ads, and other online advertising, they got their name out. They also use an online inventory management system that only cost $50 a month and works perfectly for bike shops.

With a little bit of luck, a lot of hard work, and some economics these three friends were able to successfully start up Huckleberry Bicycles

Source Article: http://www.theatlantic.com/business/archive/2013/02/i-cant-tell-you-why-were-growing-a-new-bike-store-and-the-mystery-of-start-up-success/272812/