does anyone actually on a bike store here?

Ackland

chats d'élevage
Worth noting that up until recently (COVID hitting, smashing their primary business and bike sales surging), some of the chain stores were loss leaders for much larger conglomerates and an industry insider has informed me that the strategy is to purchase the shopfronts, run a shop at a loss, use it as tax breaks and sell the properties later.
 

Scotty T

Walks the walk
Also mixing business and mates can have its issues. You will need some pretty clear ground rules agreed upfront to make sure everyone pulls their weight.
This is a big one. I've had two businesses that started with biking mates, one was a serious non bike related business employing people and paying our salaries, and we fell out and it ended in tears and lawyers getting money, because we never talked to lawyers up front. The other was bike related but a side gig and we never made any money aside from covering costs. But we started with a partnership agreement drawn up by lawyers which made parting ways easier and agreeable when that time came.
 

leitch

Feelin' a bit rrranty
This is a big one. I've had two businesses that started with biking mates, one was a serious non bike related business employing people and paying our salaries, and we fell out and it ended in tears and lawyers getting money, because we never talked to lawyers up front. The other was bike related but a side gig and we never made any money aside from covering costs. But we started with a partnership agreement drawn up by lawyers which made parting ways easier and agreeable when that time came.
Yep. Even putting aside legal and money issues (which are big and scary), the day-to-day running of a business puts significant strain on personal relationships. It took a very conscious effort by me and my close friend to separate business disagreements from personal insults when we started our restaurant... It got easier when we stopped living together too o_O
 

safreek

*******
Yep. Even putting aside legal and money issues (which are big and scary), the day-to-day running of a business puts significant strain on personal relationships. It took a very conscious effort by me and my close friend to separate business disagreements from personal insults when we started our restaurant... It got easier when we stopped living together too o_O
Unfortunately a lot of people can't do the desperation of work/play.
After a couple of goes of hiring friends on a casual basis I won't anymore.
Those bloody backpackers are fantastic workers, take direction well and are stoked to get paid properly. Now Australian (alleged) workers, fuck that one again
 

rextheute

Likes Bikes and Dirt
I worked with my wife / partner - side by side for almost 18 years .
Best Team Ever .

Came to 2019 after we were on an extended break ( after being made redundant ) , she said , i want another job .
So went and got one .
I floated about for another couple of weeks and then went and got a simple , low pressure job - which is fine .

We get on fine .
no , really .....
 

mooboyj

Likes Dirt
My LBS is the Derwent Park store. I grab quite a few bits and pieces of him because he will cut lengths of hoses I need and the like. He also mentioned he can't get bikes in stock, and therefore has a very sparse floor. He mentioned he makes his money from servicing bikes. Being just off the bike track helps immensely.

I'd think you will struggle. Bikes are expensive and Glenorchy is a low socio-economic city. Moonah has $$$, but the Derwent Park store is there. Stock is hard to get at the moment and theft would be a real issue. I'm all for another bike shop close to me though!

FYI, I'd run a cafe/coffee place in/next to the store. A few bike shops did this in Perth (WA) and helped them tick over extra cash. Depending on location I could see doing quite well.
 

Flow-Rider

Burner
My LBS is the Derwent Park store. I grab quite a few bits and pieces of him because he will cut lengths of hoses I need and the like. He also mentioned he can't get bikes in stock, and therefore has a very sparse floor. He mentioned he makes his money from servicing bikes. Being just off the bike track helps immensely.

I'd think you will struggle. Bikes are expensive and Glenorchy is a low socio-economic city. Moonah has $$$, but the Derwent Park store is there. Stock is hard to get at the moment and theft would be a real issue. I'm all for another bike shop close to me though!

FYI, I'd run a cafe/coffee place in/next to the store. A few bike shops did this in Perth (WA) and helped them tick over extra cash. Depending on location I could see doing quite well.
Top end mountainbikes are getting sold before they hit the ground in places like California and that's with a direct line to stock.
 

hifiandmtb

Sphincter beanie
@nathanm Nah, it's just my play on the English word "close":

To close is to shut something or to end something. You could close a door, close your mouth, or even close a deal. This versatile word usually means "the end" or "near." When a store is closed, you can't go in: the door is closed and locked.
You said:

That'd be sweet. I'd love to have a lbs close.
My humour was misunderstood :D
 

Sethius

Crashed out somewhere
Unless you're writing off your own toys/trips and using it to buy commerical property instead of renting it'll be tough fight. It's a lifestyle that has its advantages/disadvantages. Can't say I'd go back.. (15yrs odd in/out)
 

rangersac

Medically diagnosed OMS
I'd think you will struggle. Bikes are expensive and Glenorchy is a low socio-economic city. Moonah has $$$, but the Derwent Park store is there. Stock is hard to get at the moment and theft would be a real issue.
I'd be concerned at its viability for all those reasons. Volume stock wise you are also competing against the dealer direct models of Canyon and Polygon, and every second kid around my 'hood seems to have got a Polygon MTB for Xmas. Also I can't see you getting much trade either from people wanting easier parking given that Ride Bellerive, the old Avanti (I think it's called My Ride now?), Cyclingo, Pushies, and Derwent Park all have free parking either out the front or very close by.

McVilly's tried the hire and servicing only model pre-COVID, in a trendy hipster part of town and that died pretty quickly.
 

Flow-Rider

Burner
Yep. Even putting aside legal and money issues (which are big and scary), the day-to-day running of a business puts significant strain on personal relationships. o_O
Who got time for that when you run an honest business ? :eek:

"It took a very conscious effort by me and my close friend to separate business disagreements from personal insults when we started our restaurant... It got easier when we stopped living together too"

Reminds me when I used to work away and the company I worked for hired a complete trailer park to house all the workers. The two couple owners of the trailer park used to only speak by leaving post-it-notes behind.

Too much truth being said in this thread overall I think.
 

leitch

Feelin' a bit rrranty
Who got time for that when you run an honest business ? :eek:
Haha, yeah well the "significant other" relationships outside the business certainly took a hit too... But yep, like the post-it notes, it's very easy to let the disagreements about business (that are healthy and part of making joint decisions, and usually mean better outcomes because you don't always just act on your first reaction without anyone to tell you it's a shit idea and a waste of money) follow you home/to the pub after knockoff and evolve into personal resentment.
 

clockworked

Like an orange
Yeah i dont want to work there, or interact on a daily level. I wonder whether you'd get a manager worth employing if they didn't have any stake in the business. I certainly wouldn't work very hard for someone else, but the lack og stress might be appealing.

For the tassie locals: this is very much a hypothetical exercise! Just seeing how far people will drive for ride bellerive, and also seeing cyclingo opening another site peaked curiosity as to whether it was possible.

Glenorchy mtb park is getting a refit; i wonder if it will go well and build interest locally, or get destroyed by motos?

How much influence do the suppliers have? How hard is it to pick up a major brand and then dictate your stock holding? Are there proximity agreements or minium spends?
 

Ackland

chats d'élevage
Yeah i dont want to work there, or interact on a daily level. I wonder whether you'd get a manager worth employing if they didn't have any stake in the business. I certainly wouldn't work very hard for someone else, but the lack og stress might be appealing.
3, 2, 1........ Losing money. For a small business, you need to be in the shop almost every opening hour (and then some)
 

clockworked

Like an orange
3, 2, 1........ Losing money. For a small business, you need to be in the shop almost every opening hour (and then some)
Tell me about it!
I'd be on the same block of land. Just not in the building.

Its so unfathomably unlikely I'll get there. But i need to put some form of business on the site eventually
 

leitch

Feelin' a bit rrranty
Yeah i dont want to work there, or interact on a daily level.
3, 2, 1........ Losing money. For a small business, you need to be in the shop almost every opening hour (and then some)
It's hypothetically doable but really what you're then looking at is investing in someone else. If you don't want to be there, you need the person who is to have skin in the game. You and your mate put up the capital to seed the shop, and you find a unicorn - someone young and enthusiastic (or a young and enthusiastic pair) who want to level up from managing the local 99 Bikes to owning their own place.

They take a shit salary and get 10% equity after 2 years and another 15% after another 2 years, with some accelerated growth incentives thrown in if they get it cranking quickly. Make them a director(s) so they can't just walk out. You guys get to "own" a bike shop, get access to sweet wholesale discounts, can contribute in the background by leveraging your other skills (whatever they are) in service of the business without having to spend your life there or talk to customers.

And you'll probably never make a return until you sell the successful bike shop (or tenanted property) 10 years later.
 

clockworked

Like an orange
It's hypothetically doable but really what you're then looking at is investing in someone else. If you don't want to be there, you need the person who is to have skin in the game. You and your mate put up the capital to seed the shop, and you find a unicorn - someone young and enthusiastic (or a young and enthusiastic pair) who want to level up from managing the local 99 Bikes to owning their own place.

They take a shit salary and get 10% equity after 2 years and another 15% after another 2 years, with some accelerated growth incentives thrown in if they get it cranking quickly. Make them a director(s) so they can't just walk out. You guys get to "own" a bike shop, get access to sweet wholesale discounts, can contribute in the background by leveraging your other skills (whatever they are) in service of the business without having to spend your life there or talk to customers.

And you'll probably never make a return until you sell the successful bike shop (or tenanted property) 10 years later.
This. This is what i was ineloquently trying to describe. This is what i want to do
 
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