What are some considerations in opening a tri/bike shop? Is it lucrative to support a family? Is it difficult to set up supply lines with bike companies? Just curious.
It’s unlikely you would be able to support a family on the income of a shop grossing less than $2,000,000.00 per year.
The most difficult part is that, depending on the business decisions you make and where you feel you have to put your resources to maintain and grow the business there will be years where you not only will not take a single dime out of the company, you may be putting $40K-100K cash into it. You better have instant access to those resources.
Make no mistake, this is NOT a paying job.
I think Tom is probably right in that it would be a hard business to open, however I believe there is a great opportunity to open an online store. When I lived in Panama City there wasn’t even a specialty running store around. Now I am in Knoxville which has a great biking and running scene, but I can’t even pick up a pair of quick laces anywhere. If someone opened a good website I definitely think there are some possibilities. There is so much potential.
I am sorta new here but what exactly is second hand racing? Is someone actually selling used gear from this site? I think that is a fabulous idea if so. With ebay, the growing number of triathletes, limited number of tri speciality shops, I think there is alot of opportunity. If someone is interested I wouldn’t mind being an investing partner. Any proposals?
The two biggest reasons most small business fail are: 1) lack of financial capital, and 2) lack of a business plan/strategy. By putting together a simple business plan of what you plan to do, who else is doing it, and how you plan on making it work, will show you the nuts and bolts of whether or not you can make it happen.
I would say that right now, if you are based in the northern half of IL, you might have a difficult time making a go of it. Geographic restrictions based on most of the major bike vendors, volume committments, and credit lines with manufacturers are 3 very big obstacles to compete with some of the existing shops (namely Mission Bay, the Bike Shop, and some of the downtown stores).
I would suggest going online and downloading a simple business plan (which should also entail marketing/sales plans, etc.) to try and follow. The BBB can also provide start up kits. While I would commend anyone on following their “dream”, I would also advise to do your research. You may be able to do that, it may just be in a different location.
Craigster’s advice is very strong if your motive is profit.
If it is the pursuit of your hobby, just bring lots of cash and enjoy yourself.
There are only two dedicated Tri Shops in the metro chicago area. Alot of bike shops and some run shops that carry some tri gear. Neither of the tri shops is near me so I get all my stuff online or at a bike/run shop. I had a conversation at a race on Sunday and some of us wondered why there wasnt more tri shops in the area, when the sport it growing so much. I understand what Tom is saying, Im already in family owned small business, its not easy and you need resources, biz is on your mind 24/7, I need the $$ not the worry.
Ed, I’m very familiar with the tri scene in Chicago. I ran the club out of Mission Bay for a year before handing it off to Mac & Kristi in 2000. I am also familiar with the politics surrounding geographic territories, sales volume, etc. (which Bill pretty much controls as exemplified by his “slapping Kestrel on the wrists” ploy awhile back).
I like Bill, probably more than his own employees do/did 
I also know that Rich at the Bike Shop, and I know some of the key players (mfgs reps in the area) who would all be good to go talk and see HOW you could do it successfully. Most of the major tri bike manufacturers already have secondary shops (Mission Bay being their primary) in the Chicago area, so the key would be convincing them (and they ultimately would have to convince Bill not to drop them should they open a new store) that an ADDITION in the market would help all, not simply take business away from existing.
Perhaps a better idea might be to partner up with a shop (I know Rich at The Bike Shop used to have a running shoe store as a partner, but I don’t think he does any longer) to try and provide items they don’t currently carry (soft goods, swimming stuff, shoes, etc.). Unless you have enough capital to pay cash for a large inventory from one of the mfgs (needed so they could worry less about any repurcussions from MB or other shops), it’s a tough go.
As far as what Tom said, yes…a sound business plan will help you see the $$$'s. However, as someone who has contemplated doing the same as you, I’d also like to know if I give up the corporate life to do something “I like more”, I’d like to know I have a good chance at making it (financially).
My first advice would be to go to all the bike manufacturers, and see who may have a hole in their shop lineup in the area. Who has seen decreasing sales (although this can change, because I remember when I pretty much told Bill, Chris, & Rich that Cervelos were being talked about quite a bit back in 2000, but MB didn’t stock them yet), and is willing to help you and your shop make a go of it.
Okay, a couple of things…
Would you consider opening it up a little farther south and Chi-town?
I’d imagine Chicago isn’t prime for another dedicated tri-shop. Because:
- It already has two dedicated tri-shops, and
- It has quite a few more bike shops with strong supply lines for Triathletes.
If you are looking to open a shop, I’d strongly recommend looking a little farther south. Downstate IL doesn’t have jack, interms of Tri-shops. We’ve got a couple of shops that somewhat cater to triathletes, but they still focus on selling road bikes.
I’ve talked to others, and I still believe a well placed Tri/Competition bike shop in North-central IL would get a good draw from IL, IA, and IN. It won’t be Nytro or Bicycle Sports, but it could make a decent go of it.
Im not opening anything, just curious.
Ooooouuuh, you got my hopes up for nothing.
Why is it that every bike shop owner is starving? Is this just a very low cost of entry business so there is that much competition? Has every bike shop been living on the edge of bankruptcy for the last 30 years? Are there any other businesses you can think of that are constantly doing this poorly?
Are the rumors true, does TomD really light his cigars with $100 bills?
“Are there any other businesses you can think of that are constantly doing this poorly?”
Scuba diving business. Problem is, at least in northern climates, both are seasonal based.
I would guess ski shops in the midwest would fall in this category, they are many that have closed in the last ten years.
Doesnt Tom travel alot for a poor bike shop owner?