The Gatineau Trail Bike Co.

The service our business aims to provide to our clients

includes offering a choice between 1, 2 and 4 hour guided tours
along the trails of Gatineau Park with a knowledgeable guide as well
as offering bike rentals for a more personal exploration of the park.
With the size of Ottawa-Gatineaus population and the number
of tourists who flock to the city on an annual basis; people are
always looking for new things to do. We aim to capitalize on
Canadians inherent love of the outdoors to attract local business
and use the allure of Canadas natural beauty to draw in the interest
of clients visiting the city.
With the research this company has performed in the form of
surveys as well as looking at a multitude of resources we have
outlined the logistics of operating this business. Outlined in the
following plan are the start-up costs, the costs of running the
business and the projected finances.

The Gatineau Trail Bike Co.: Business Plan

The Gatineau Trail

Business Plan

Bike Co.
Business of

Outdoor
Adventure
Jeff Jackson
March 21st 2016
Oliver El-Gamel
040787859

The Gatineau Trail Bike Co.: Business Plan

Table of Contents
Executive Summary................................................................................
3
Business Overview & Objectives.............................................................
4
Mission Statement..........................................................................................
4
Defined Objectives.........................................................................................
4
History & overview..........................................................................................
4
Business model...............................................................................................
5
Ownership.......................................................................................................
5
Product summary............................................................................................
6

Industry Background...............................................................................
7
Industry overview and analysis.....................................................................
7
Target Market.................................................................................................
8

Market Approach.....................................................................................
9

The Gatineau Trail Bike Co.: Business Plan

Product offering................................................................................................
9
Price...............................................................................................................
9
Distribution / purchasing model......................................................................
10
Promotional strategy......................................................................................
10

Finances..................................................................................................
11
Start up costs.................................................................................................
11
Cash flow analysis..........................................................................................
12
Income statement at 12 & 24 months............................................................
13/14
Break-even analysis.......................................................................................
14

Location & Facilities................................................................................

15
Legal.......................................................................................................
15
Appendices ............................................................................................
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The Gatineau Trail Bike Co.: Business Plan

Executive Summary
The mountain biking industry is recognized world wide in its many
different forms from trail riding, to down hill & cycle cross. According to
data presented by Parks Canada in March 2010 between 10% & 25% of
Canadians are involved in some sort of cycling based leisure activity.
A study carried out in British Colombia in 1999 suggests as mountain
biking is aging it is becoming more inclusive to a range of ages, skill and
fitness levels. This is partially because trail biking can be as an intense or
relaxed experience as you want depending on the trails you pick etc. The
majority of people found trail biking are between the ages of 30 & 55 who
fit into the upper middle class.
The Gatineau Trail Bike Co. Is a sole proprietorship that provides 1, 2 and
4 hour long guided trail bike tours through Gatineau Park during which
clients will learn about the natural history of the Park and the flora and
fauna that is abundant within. As well as guided tours The Gatineau Trail
biking Co. will provide bike rentals and shuttles to and from the park if
they are required. We are the only company that will be offering guided
bike tours in Gatineau Park as well as offering a rental / shuttle service.
This widens our target market substantially because it allows us to appeal
to potential clients who may not want a guided tour but cant personally
transport themselves as well as their equipment to the park, as well as
couples, families or tourists who are more interested in a fun, educational
and care free experience.
Our HR plan ensures Staff know what is required of them in whatever role
they fill at our company, as well as ensuring good recruitment and
retention practices to ensure the quality of our services remain high.

The Gatineau Trail Bike Co.: Business Plan

Risk management is extremely important to The Gatineau Trail Bikes Co.,
which is why we have complied a solid risk management plan to reduce
unnecessary risks to clients and staff to an acceptable level of risk.

The Gatineau Trail Bike Co.: Business Plan

Business Overview & Objectives

Mission Statement
The Gatineau Trail Bike Co. will provide educational and fun day trips
trail biking In Gatineau Park for locals of and visitors to the Ottawa
Gatineau region to enjoy a slightly more adventurous activity while having
the comfort of a well trained and qualified guide in case of any mishaps.
We also aim to provide people with the ability to rent out bikes so they can
explore the park on their own. The aim for this service is to give people
the ability to keep active and healthy and bring them into the sport of trail
riding without having to purchase the necessary equipment straight away.
This opens up the door for diversification in the later stages of the
business growth.

Defined Objectives
The Gatineau Trail Bike Co.s objective is to be operating at 60%
capacity after 2 years in operation and to be operating at 85% capacity
after 5 years.

History & Overview

The sport of mountain biking in the modern sense started to come to
be in the early 1970s in California but it wasnt until the invention of the
derailleur in 1974 which opened the dour for cross country mountain
biking which evolved from the early race scene to trail riding to
accommodate a wide range of skill and fitness levels, depending on the
difficulty of the trails and terrain selected. Now 30 years later massed
produced bikes coupled with modern technology are making it easier than

The Gatineau Trail Bike Co.: Business Plan

ever to get out on the trails. This has led to trail riding being seen as a fun
activity for the whole family to get together and be active.
The Industry so far seems to be doing well with a large range of trips that
are different lengths, difficulties and styles. For example Sacred Rides
offers high-level guided mountain bike trips all over the globe.
With the speed of life in the Ottawa-Gatineau region being quite fast as it
is such a large metropolitan area the population tends to value free time
quite highly and may be inclined to take part in multiple hour long
activities during their day off instead of one long activity. With our three
options for tour length, our rental by the hour system and our proximity to
Gatineau Park our services have the flexibility to fit in to the busy
schedules of modern day Ottawainians.

Business Model
The Gatineau Trail Bike Co. will be generating revenue through two
avenues: firstly through our guided tours which will have a guide to client
ration of 1:6 and a minimum of two clients for the trip to run. Our second
revenue stream comes from the individual bike rentals.

Ownership
The Gatineau Trail Bike Co. will be a private corporation. This may result
in a higher start up cost and fewer initial tax breaks however these trade
offs are worth it to take the liability off of the owner incase a legal
situation were to arise and to separate the assets of the Gatineau Trail
Bike Co. and those of the owner.

The Gatineau Trail Bike Co.: Business Plan

Product Summary
Guided Trail Rides:
With 1 hour, 2 hour and 4 hour tours to choose from clients will be
able to explore the park within their own physical or time limits with a
knowledgeable guide whos main focuses for the trip are to keep the
clients comfortable and having fun while using environmental cues to
teach clients about the natural history of the park and about the native
flora and fauna that calls it home.
Bike Rentals:
For clients who are looking for a more personal adventure or perhaps
wished to explore the city instead The Gatineau Trail Bike Co. also rents
out bikes for 3 hours (half day) or 6 hours (full day) (A full day rental must
be purchased before noon as all rental gear must be returned by 8:00pm)
Shuttles can be provided to Gatineau Park for rental customers if required
and the last shuttle back from the park will be at 7:45pm.

The Gatineau Trail Bike Co.: Business Plan

Industry Background
Industry Overview & analyses
The Industry is thriving in Canada, which has the highest percentage
participation rates leisure cycling in the world with an estimated of 25% of
the population taking part in a cycling focused leisure activity. Figure 1.
Below shows operators in eastern Canada that offer guided mountain bike
tours or bike rentals. In 2005 the International Mountain Biking Association
(IMBA) gave Ontario a B rating in terms of what it has to offer for mountain
biking. With endorsement like this it is surprising there arent more
companies taking advantage of the provinces natural capital.

Figure 1.

The nearest bike tour and rental providers to us are located in The Greater
Toronto area leaving the Ottawa market virtually untapped.

The Gatineau Trail Bike Co.: Business Plan

According to a 2006 study by TAMS 9% of Ontarians went cycling on a
trip. By making trail biking and cycling more accessible in general for the
Ottawa-Gatineau region we expect to see this percentage increase to
participation rates observed in Alberta, British Colombia where there is a
higher concentration of companies offering similar services to us. These
provinces had 12% of their respective populations take part in cycling
trips.

Target Market
The Target market we are seeking to tap into consists of two major
groups. Visitors to Ottawa who are looking to experience as much as they
can of the area in the limited time that they have, and Ottawa-Gatineau
locals who are looking for something different to do. The demographics for
both groups are quite similar. The age range of our target market is large
with participants mostly being between 19-55 years old. As we have a
minimum requirement of two clients for a tour to go ahead we will be
targeting couples & families as well as travelling groups (for example a
group of friends staying at the same hostel etc.) We will be aiming to
capture drop in and incidental business.
The Local population of Ottawa-Gatineau is 1,236,324 so if we apply the
percentage of Canadians who took part in cycling based leisure activities
(25%) we can estimate that around 309,081 area locals would be
interested in taking part in a tour or renting bikes from us. Added with the
8 million tourists Ottawa receives annually it starts to become apparent
how large the untapped market we are looking to capitalize on really is.
The trend for people who participate in mountain biking Is that they are
athletic and outdoorsy participating in a wide range of outdoor pursuits.
Using this we can place promotional material in areas that would be

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The Gatineau Trail Bike Co.: Business Plan

frequented by such people. For example: local climbing gyms, equipment
retailers, pools and gyms. The majority of people who participate in these
activities are also educated with the average annual salary being roughly
$70,000. This means they are likely to frequent places like cafs so we can
reach out with brochures and posters at these venues to increase our
reach.

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The Gatineau Trail Bike Co.: Business Plan

Market Approach
Product Offering
A bicycle tour and rental service that provides trail bikes, helmets
and maps as well as shuttles to and from Gatineau park from the Ottawa
office. Clients will be able to call or email ahead and book tours & rentals,
or they can walk into our office in town and book face to face with our
office staff.
Customers have a wide range of options to choose from with 1,2
and 4 hour tours of Gatineau parks trails as well as full (6hr) and half (3hr)
day bike rentals where they are free to explore. When a customer decides
which product they want they can either meet us at Gatineau Park or take
advantage of our free shuttle service between our office and the park.
When a customer reserves bike rentals or a place on a tour they are
required to make a 30% non-refundable deposit. With bike rental
customers receive a helmet, a trail map and a small patch kit with a pump
in case they blow a tire on their adventure.
Price
While configuring our prices I wanted to remain affordable for our
target market while covering the expenses of running the trips. Shown
below are the expenses for one month of running trips minus start up
costs. As well as the estimated total income for one month operating at
30% capacity you can see the costs are easily covered

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The Gatineau Trail Bike Co.: Business Plan

Distribution & Purchasing model

Our target market can book tours or rentals by either dropping in to
our base in Ottawa or by calling in. Clients booking in advance are
required to place a 30% non-refundable deposit to hold their space on the
trip or a rental bike. Clients are free to meet us at Gatineau Park or utilize
our free shuttle service from our base. Upon return from trips or rentals
each bike is inspected and cleaned before their next use
Promotional Strategy
To promote my business I will be focusing on what will appeal to my
target market the most by using the K.I.S.S. (keep it simple stupid)
approach to marketing focusing on the aspects of our service that they are
most drawn to. The simplicity of organization (book and go) the natural
beauty of the park and how much fun trail cycling with friends and loved
ones truly is! Using tools like printed posters in stores such as MEC or
Trailhead Paddle shack. An example of a print ad is provided in the
appendices. We will also leave brochures, cards, posters and even framed
photos in areas like coffee shops & internet cafs frequently visited by
both tourists as well as local working professionals. To gain more attention

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The Gatineau Trail Bike Co.: Business Plan

from the tourist sector we will leave brochures and posters at both visitor
information centers located in Ottawa.
Social media is also a tool we will take advantage of by posting
events and sales on Facebook. We will use Instagram to post photos of
clients, the natural beauty of Gatineau Park and any fun things going on as
well as encourage clients to share their photos from trips with us,
potentially running competitions for best photo etc.

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The Gatineau Trail Bike Co.: Business Plan

Location & Facilities
The Gatineau Trail Bike Co. Is based in downtown Ottawa, Ontario
comprising of a single building that functions as a bike storage area, bike
repair shop and office.

Financial Needs and Projections

Start Up Costs

Shown above is the estimated start up costs for The Gatineau Trial Bike
Co. At first glance the total costs to start up my company seem
extortionate however the vehicle cost is broken down into bi weekly
payments of $414 for 48 months. This is easily absorbed by our profits.
After the first year all the bikes will be paid for and by the end of year 2
both vehicles will also be paid off.

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The Gatineau Trail Bike Co.: Business Plan

Cash Flow Analysis
Cash flow charts were created to compare the profitability of the
company operating at different capacities, 30%, 60% and 100%. The
results are shown below.

30% Capacity
Total Income: $98,420.00
Variable expenses: $9,540.53
Fixed expenses: $87,858.00
Net Income: $1,021.47
60% Capacity
Total Income: $188,860.00
Variable expenses: $22,344.00
Fixed expenses: $63,968.00
Net Income: $102,548
100% Capacity
Total Income: $328,930
Variable expenses: 38,404.80
Fixed expenses: $59,000.00
Net Income: $231,525.20
The above information shows that The Gatineau Trail Bike Co. is estimated
to be profitable in its first year even if only operating at 30% and as our
client base increases in size we will be able to generate substantial
revenue to put back into the business, for example city bike tours or even
expanding into retail. To take into account the seasonality of our services
only the months April through October have any participants however all
months retain their expenses.

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The Gatineau Trail Bike Co.: Business Plan

Income Statements

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The Gatineau Trail Bike Co.: Business Plan

Break-even Analysis
The company will break even when it makes $56,291.84 profit.

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The Gatineau Trail Bike Co.: Business Plan

Location & facilities

The Gatineau Trail Bike Co is based out of Ottawa city center,

Ontario, Canada. It operates out of 1 building which acts as: a bike repair
shop, bike storage area and office space.

Legal

Ownership
As stated earlier this business will be a private corporation to separate the
assets of the owner and the company.
Laws
All clients must wear helmets while partaking in the activity of
cycling. Anyone under the age of 25 who isnt under the insurance policy
may not drive. Drivers are also not allowed to have any major claims on
their record.

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The Gatineau Trail Bike Co.: Business Plan

Appendices
References:
Mountain Equipment Co-Op: http://www.mec.ca/shop/cyclinghelmets-everyday-protection-urban-and-commuter
Bike Depot: http://bikedepot.com/
Parks Canada:
http://www.imbacanada.com/sites/default/files/MountainBiking_Market-Pro
Ford: http://www.ford.ca/

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The Gatineau Trail Bike Co.: Business Plan

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The Gatineau Trail Bike Co.: Business Plan

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The Gatineau Trail Bike Co.: Business Plan

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The Gatineau Trail Bike Co.: Business Plan

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