Business Opportunity plan

The Business of the Outdoor Adventure Industry

Jeff Jackson

March 20, 2017

Alex Hoch

Algonquin College
Opportunity Plan 2

Table of Contents

Executive Summary Page

3
Business Overview and Objectives Page
3
Mission Statement Page
3
Defined Objectives (short and long term) Page
3
History, Business Model, Ownership, Product Summary
Page 4
Industry Background Page 4
Industry Overview and Analysis Page
4
Opportunity and Proof it Exists Page
5
Market Approach Page 5
Target Market Page 5
Product Offering Page 5
Price Page 6
Distribution/ Purchasing Model Page
6
Promotional Strategy Page
6
Comparative Adventure/ Competition Page
6
Location and Facilities Page 6
Financial Needs and Projections Page
7
Opportunity Plan 3

Summary Page 7
Start Up Costs Page
7
Cash Flow Analysis, 24 months Minimum Page
7
Income Statement at 12 and 24 months Page
8
Breakeven Analysis Provide a momentary
Page 8
Legal Page 9
Legal Ownership Structure Page
9
Laws and Regulations that apply to operation Page
9
Appendences Page
9
References page 10

Executive Summary

I saw that there was a need for properly trained bike mechanics in
Ontario. Therefore I created Chain Masters. It is a bicycle mechanic training
facility. There was an opportunity for me to take advantage and build this
sort of business as I did. This business is located in Mississauga, Ontario
Canada, and about twenty minuets from Pearson International Airport in
Toronto, Ontario. There is a huge infrastructure here and a lot of people that
cycle. Matheson Road, which my location is on, is a huge riding road for
cyclists in Toronto, Mississauga region. This means that some of these
cyclists will be mechanics themselves so, they will be familiar with our
location.
Opportunity Plan 4

There are more then fifty bike shops in the GTA. This means there is
always a need for well-trained bike mechanics. This location is well placed
because it is right near highway 401. This means you can take the 401 to get
here and do it quickly from anywhere in Toronto, Mississauga or anywhere in
the GTA.
The start up costs will be around twenty thousand dollars. This includes
the tools and tool kits for every one of the students and everything else that
is required to get a business running. At full Capacity, Chain Masters will run
most weeks throughout the year with the weekends and holidays off.

Business Overview and Objectives

Mission Statement
Chain Masters has mission to provide well-trained bicycle mechanics
while being affordable and having approachable staff.
Defined Objectives (short and Long term)
Chain Masters will obtain sixty percent of the market in the second
year of making profit.

History, Overview
The history behind Chain Masters is based off the need for well-trained
bicycle mechanics in Ontario and offering this service at a reasonable price
for out services. My father and I thought up this because the only other
competition in Ontario is in Guelph. Thats a good hike if you are from
anywhere in Toronto or the GTA. We decided to have a location that is in
Mississauga, right near the main airport for the area for ease of finding us.
Business Model
Chain Masters will be privately owned, and it will be a sole
proprietorship for the first few years. Some of the benefits include lower start
Opportunity Plan 5

up costs as well as I will have some sweet tax deductions. By the fifth year of
operation, this company will have more money, we will then incorporate so
we get some tax deductions as well as if we get sued, and our losses will be
greatly lowered.
Product Summary
Chain Masters is operated and owned as a Canadian small business. It
is one of the very few companies in Canada that provide professional bicycle
mechanic training for industry use. Many bike shops train their employees
over many years of service and therefore they are not paid as well. If those
employees come into the business already knowing a lot about mechanics,
their pay will increase as well as their confidence on working with the bike.

Industry Background

Industry Overview and Analysis

The industry of training bike mechanics is a very small industry
because there is really only one other company that is considered
competition. That is Winterbourne Bike Institute. It is located in Guelph,
Ontario, which is about an hour away from out location and about an hour
and a half from downtown Toronto.
The cycling industry is exploding as of late. People are comparing it to
golf. It is a really low impact sport and can help people travel from one place
to another place in the most efficient way possible. This means there are
more bikes on the road and trails then ever before which means more and
more people are breaking their bikes. This causes a need for people that are
trained to handle any thing that could go wrong on a bike.
With our facility, we train every day people to become professional
bike mechanics. This means they can handle anything the bike gods throw at
it. This massive industry that is the bike industry has a need for mechanics
that know what they are doing.
Opportunity Plan 6

Chain Masters competition consists of two other companies that offer

similar product to ours. They are located in downtown Toronto and Guelph.
The company in Guelph has a better reputation then the one in downtown
Toronto but they both train bike mechanics to a certain standard.
Opportunity and Proof it Exists
The bike industry has been exploding the past couple years which
means there is a need for well trained and knowledgeable bike mechanics.
These mechanics only have a few places to go and train. There is really no
competition east of Toronto as well as in the western provinces. As we age
and get more clients, we are going to get two other locations in Ottawa as
well as one in Kelowna British Columbia.
There are bike shops that are in need of people that can maintain their
rental fleet as well as customers bikes with a high quality. Our product offers
this exact course.

Market Approach

Target Market
With thousands of bike shops across Canada, there is a massive need
for people to be smart and knowledgeable about the inner workings of a
bicycle. Our target market is the people that want to be better trained and
have this knowledge sooner then the old model and gets paid better, sooner.
Products Offering
We at Chain Masters are offering a mike mechanic training facility with
the latest tech as well as some of the brightest minds in the industry.
Companies like ParkTool and Super B will also come by to show you how to
use their specific tools as well as different practices used throughout the
industry. Bike companies will also bring their bicycles around so we have
time to learn how to route
Price
Opportunity Plan 7

After looking at the competition and their services offered as well as

training, I believe we can charge up to two thousand dollars per person. This
will cover the costs for the tools they are going to be receiving in the price as
well as the support. By charging a little more money, we will be able to offer
better services then our competition and eventually we will have locations
throughout Canada to provide better service.
Distribution/ Purchasing Model
Chain Masters sells direct to the customer. Sometimes these customers
are individuals looking to become better bike mechanics or bike shops
sending their employees to this course to better their ability to serve their
company as well as the customers.
Promotional Strategy
Our promotional strategy is going to be offering Facebook groups,
going to many bike shops in the Toronto and Mississauga area and giving
them business cards to help promote our business. We will also have ads in
the bicycle industry magazines and websites promoting the services we offer.
Comparative Adventure/ Competition
Chain Masters is in competition with two other companies in the
Ontario area. One company is in downtown Toronto. The other is on the
Guelph area, which is about an hour drive from Toronto. We are focusing on
Toronto because it is the largest city in Canada as well as having the large
population of cyclists that means more bike shops to sell our services to.
Location and facilities
Chain Masters is a smaller company that works out of a two thousand
square foot industrial warehouse. There is plenty or room to set up our
workstations as well as room to make a small classroom if needed. There is
also a space that has offices to administrative work, which is nice.
Opportunity Plan 8

Financial Needs and Projections

Summary
The following information will piece together the overall start up costs,
how much the business is expected to make, the income, and break-even
analysis. You will then be able to see if the project is successful or now.
Start Up Costs
Stuff To Buy Price Quantity Total
ParkTool BMK-243 Tool Kit $ 5, 850.00 X1 $ 5, 850.00
ParkTool AK-2 Tool Kit $ 400.00 X2 $ 800.00
Pedros Apprentice Tool Kit $ 355.00 X5 $ 1,775.00
ParkTool PFP-8 Floor Pump $ 46.00 X4 $ 148.00
ParkTool PCS-10 Repair Stand $ 306.00 X7 $ 2,142.00
ParkTool # 104 Work Tray $ 24.00 X7 $ 168.00
ParkTool TS-2.2 Pro Truing $ 315.00 X3 $ 945.00
Stand
ParkTool PPL-2 Lube 1lb $ 24.00 X2 $ 48.00
Muc Off Carbon Gripper $ 32.00 X4 $ 128.00
Pedros Chain Lube 946ml $ 49.00 X1 $ 49.00
Certified Work Bench 43 $ 229.00 X7 $ 1,630.00
Inches
Load Stone Swivel Stool $ 38.00 X6 $ 216.00
$13,957.00

As you see above, there are a few things we have to buy to get this
business off the ground. This price is not including the first month of rent for
our building; it only includes all the bike tools and equipment that we need to
get. These costs do not include the marketing that we will have to do while
starting up the company.
Cash Flow Analysis, 24 Month
Opportunity Plan 9

Chain Masters Year 1: 75% Capacity

Chain Masters Year 2: 100% Capacity

Income Statement at 12 and 24 months

Opportunity Plan 10

Legal

Legal ownership Structure

Chain Masters is a Sole Proprietorship owned and operated by Alex
Hoch. By the third year of successful operation, we will incorporate, to
protect the assists of Mr. Alex Hoch in the event of a bankruptcy, suing, or
any other matter. The thought to incorporate was thought up because it
would be a really good competition if something goes wrong in the company
or an outside force takes the business.
Laws and Regulations That Apply to Operation
Opportunity Plan 11

From my understanding, there are no laws restricting my use of my

building as well as assets to conduct business as I have laid it out here in the
business plan.

Appendices

References

Bike Pumps & CO2 Inflators | Canada Bicycle Parts.

(2017). Canadabicycleparts.com. Retrieved 19 March 2017, from
http://www.canadabicycleparts.com/tools/pumps-co2-inflators.html?p=1
Opportunity Plan 12

Bike Repair Stands | Canada Bicycle Parts. (2017). Canadabicycleparts.com.

Retrieved 12 March 2017, from
http://www.canadabicycleparts.com/tools/repair-stands.html
Bike Tool Kits | Canada Bicycle Parts. (2017). Canadabicycleparts.com.
Retrieved 9 March 2017, from http://www.canadabicycleparts.com/tools/tool-
kits.html?limit=60

Certified Workbench, 43-in | Canadian Tire. (2017). Canadiantire.ca.

Retrieved 19 March 2017, from http://www.canadiantire.ca/en/pdp/certified-
workbench-43-in-0581555p.html#srp

Walmart.com. Retrieved 19 March 2017, from

https://www.walmart.com/ip/Loadstone-Studio-Extra-Large-Adjustable-
Hydraulic-Swivel-Salon-Stool-Chair-for-Massage-Spa-Tattoo-Beauty-Seat-
Black-WMLS1800/143791630

450 Matheson Blvd E, Mississauga, ON - Unit 43-44 | Industrial Space For

Lease | SpaceList. Spacelist.ca. Retrieved 19 March 2017, from
https://spacelist.ca/p/on/mississauga/450_matheson_blvd_e/unit_43-44#