Executive Summary
Wheelies is a bicycle courier company that delivers small to medium-sized packages to residents and businesses. This usually includes fast food deliveries, documents, flowers/plants, and small technological items such as cell phones.
Wheelies has implemented extended working hours. This has helped us serve a wider clientele. These individuals typically lead busy lifestyles that require them to use services like ours to make life easier for them. Our around-the-clock courier services have also influenced our pricing strategy.
Our target market is made up of individuals who have a disposable income. They don't have the time to stand in queues and collect their parcels. This is mainly due to work and family commitments.
Targeting our marketing directly towards these high-grossing individuals will help us stand out in this increasingly competitive industry.
Our sales forecasts suggest that our revenue will increase by 3,3% over the next year. We've attributed this figure to an increase in our fleet and the popularization of bicycle courier services.
We're currently seeking an investment of $750,000. This will allow us to purchase more delivery bicycles and beef up our marketing.
Wheelies Couriers is seeking $30,000 in start-up or growth capital to fund operations, marketing, and staffing in the first 12 months.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $320,000 | $560,000 | $880,000 |
| Gross margin | 73% | 73% | 73% |
| Net profit / (loss) | $52,800 | $116,000 | $203,600 |
Company Overview
Wheelies Couriers is a bicycle courier & delivery service founded by Oliver Grant, operating as a LLC. Headquartered in Portland, Oregon, USA, Wheelies Couriers was established to serve the growing demand for specialist services in this sector.
Mission: To deliver exceptional value to our customers through expertise, reliability, and a commitment to continuous improvement.
Business objectives:
| Period | Target |
|---|---|
| Year 1 | Establish brand, acquire initial client base, achieve operational break-even |
| Year 2 | Expand service offering, grow revenue by 50%, hire additional staff |
| Year 3 | Establish market position, target new geographic or demographic segments |
Wheelies was founded by Leonard Price and Kirk Wood in 2017. The company is registered as a partnership and is based in Brooklyn, New York. Leonard and Kirk are the CEO and Operations Manager respectively.
Leonard and Kirk are lifelong cyclists who have a vested interest in sharing the health and environmental benefits of bicycles with the local community.
New York is notorious for its fast-paced lifestyle, rising air pollution, and gridlocked traffic. The pair are passionate about creating jobs in the city by making high-quality bicycle courier services available for the people of Brooklyn.
This has been the main motivation for making the business a success. The company currently has assets worth $370,000. This includes equipment, uniforms, trackers, and a small warehouse in the heart of Brooklyn.
Market & Customer Analysis
The bicycle courier industry is growing at an alarmingly fast rate. A deep study of the market has revealed to us that this growth won't stop over the next two decades. There are various reasons for this.
For starters, it's a fairly inexpensive venture for one to start. Wheelies was founded with only $7,000 and only 3 couriers. This ease of access to the market has suggested to us that the competitive landscape will become increasingly intense in the years to come.
We also predict that more and more businesses will entrust bicycle courier services to deliver their goods to consumers. This is mainly because bicycle delivery is far more affordable than vehicle delivery.
However, bicycle delivery is only viable for short-distance deliveries. This will balance out the competitive landscape for all the different methods to courier items.
With the bicycle courier market size being worth just under $1,5 billion, it's clear that there is a great opportunity to build a budding business. Beyond that, the industry is forecasted to have a valuation of $4 billion over the next 9 years.
Customer analysis:
Wheelies’ main customer base is divided into 2 segments: residents and businesses based in Brooklyn, NYC.
- Residents:
The residents who typically request our services are renters and homeowners who are working class and above. The majority of them order takeaway items. However, it isn't rare for them to order miscellaneous items such as cosmetics and small gadgets.
These individuals are usually between 24 and 78 years old. Our sales records suggest that this customer segment will most likely require our services after 5 pm when they will have been done with their daily errands or work engagements.
They're generally happy to provide us with feedback on Google, which is where many are introduced to our services.
Our residential clientele has proven to be important for the success of our business. This segment makes up just 65% of our total sales.
- Businesses:
Medium and large-scale businesses also support our business. They usually request us to courier paperwork, packages, and other relatively lightweight items related to their businesses.
This customer segment is interested in saving time and increasing workplace productivity. They're also content with paying a reputable courier company above-average rates to ensure their parcels reach their recipient quickly and safely.
They're far less likely to provide us with feedback, considering their preoccupied nature. However, their repeat business is evidence that they're satisfied with our services.
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| DoorDash | Established brand, wide reach | Higher price point, less personalised |
| Postmates | Strong marketing, national presence | Generic offering, less specialist focus |
| Roadie | Competitive pricing | Lower service quality, limited expertise |
Bicycle Courier & Delivery Service's competitive edge: Specialist expertise, personalised service, and a clear focus on the underserved segment of the market set us apart from the established players listed above.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Specialist expertise; experienced founder; strong client relationships; differentiated positioning | Weaknesses: Limited brand recognition as a new entrant; single location; reliance on founder capacity in early years |
| External | Opportunities: Growing market demand; underserved niche segments; digital marketing reach; referral network growth | Threats: Established competitors with greater resources; economic downturn reducing discretionary spend; regulatory changes |
Sales & Marketing Plan
Our sales plan is primarily based on a loyalty card program and seasonal discounts. This pair of strategies has helped us build a loyal customer base. Every time our customers make use of our services they receive a 5% markdown, provided they have a valid loyalty card.
We've factored this loyalty card program into our operational costs to ensure we remain profitable and achieve our sales targets.
Ever since we started our business we've realized that winter is our off-peak season. We've introduced a 15% festive season discount for all orders over $50. This has made the fall a far more profitable period for Wheelies.
Our sales forecasts suggest that our revenues will grow by at least 3% YoY. The demand for our services in Brooklyn will require us to purchase more bicycles and hire more riders. Our requested investment will help us achieve this and ultimately accelerate our growth.
Additional marketing notes:
Our marketing approach is based on social media, newspaper ads, and public signage on our delivery boxes. The latter acts as a moving billboard.
Wheelies' growth across all our social media channels can be highly attributed to the recruitment of a talented social media manager. Our budget has also not been significantly compromised.
By hiring a college student who is studying marketing, we're saving costs and allowing our marketing manager to focus on the more pressing marketing operations within our business.
To reach more eyeballs we run ads in popular local newspapers such as The Brooklyn Newsstand, El Diario La Prensa, and The Brooklyn Eagle.
Operating Plan
Staff Member Role Tasks Bobby Trueman Supervisor
- Overseeing the daily operations of the business
- Dealing with gross customer complaints
- Working closely with upper management to ensure that we achieve our goals Dennis Van Bommel Tariq Peters Sven Tomlin Marisa Beckham Couriers x4
- Delivering packages promptly and safely
- Communicating with clients if any issues arise
- Cleaning and light maintenance of your respective bicycles Hailey Stewart Customer Service Rep
- Being the first line of communication for all client orders and inquiries Louise Mason Social Media Manager
- Developing social media campaigns across all platforms
- Ensuring that we experience an increase in engagement across all social media channels Jamie Richards Admin Clerk
- Storing of documents and files
- Dealing with customer inquiries where necessary
Management Team
CEO: Leonard Price
Leonard Price is the spearhead of the company. His experience as a restaurant owner inspired him to start a business that makes the food delivery process easier and more affordable. However, his greatest trait is his passion for cycling, given its numerous benefits. Going forward, Leonard will continue to make the strategic decisions that will lead to the business's success.
CMO: Layla Harris
Layla Harris is a multi-talented business professional who has been invaluable to Wheelies since day one. Her formal education at Georgia Tech was in HR, however, she later found that her main passion lies in ‘spreading the word.’ Her knowledge of HR practices has allowed her to fill that role as well. Judging by our low staff turnover rate, she's highly skilled at ensuring our team members are content in the workplace.
CFO: Felix Andrews
When it comes to overseeing the financial health of Wheelies, Felix is who we look to. Although the business has many moving parts, he always ensures that our books are in the green. This boils down to his many years of experience as an accountant and salesman. Beyond that, Felix has a knack for conjuring up accurate sales forecasts. Felix earned his qualification from Boston University.
Operations Manager: Kirk Wood
Kirk Wood is the co-founder of Wheelies. He has extensive sales experience, much like our CEO and CFO. This has made developing effective (and profitable) strategies far easier. He also studied business management at Michigan State University, making him both theoretically and practically competent.
Financial Plan
Projected Profit or Loss Statement
Year 1 Year 2 Year 3 Sales $90,000 $170,000 $300,000 Direct Cost of Sales $20,500 $30,000 $82,000 Production Payroll $0 $0 $0 Other $0 $0 $0 Total Cost of Sales $20,500 $30,000 $82,000 Gross Margin $69,500 $140,000 $218,000 Gross Margin % 77% 82% 73% Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll $20,000 $40,000 $40,000 Advertising/Promotion $800 $1,000 $1,000 Travel $0 $0 $0 Miscellaneous $500 $500 $500 Total Sales and Marketing Expenses $21,300 $41,500 $41,500 General and Administrative Expenses
General and Administrative Payroll $20,000 $40,250 $100,250 Sales and Marketing and Other Expenses $0 $0 $0 Depreciation $1,000 $1,000 $1,000 Dues and Subscriptions $200 $200 $200 Professional Fees $300 $300 $300 Rent $2,000 $2,000 $2,000 Software Purchases $0 $15,000 $0 Insurance $2,000 $2,000 $2,000 Telephone and Internet Access $2,000 $2,000 $2,000 Utilities $400 $400 $400 Miscellaneous $0 $0 $0 Payroll Taxes $500 $1,200 $3,000 Other General and Administrative Expenses $0 $0 $0 Total General and Administrative Expenses $28,400 $64,350 $111,150 Other Expenses:
Other Payroll $0 $0 $0 Consultants $0 $0 $0 Contract/Consultants $0 $0 $0 Total Other Expenses $0 $0 $0 Total Operating Expenses $28,400 $64,350 $111,150 Profit Before Interest and Taxes $19,800 $102,840 $225,410 EBITDA $19,800 $103,860 $226,430 Interest Expense $800 $3,632 $2,957 Taxes Incurred $0 $24,802 $56,540 Net Profit $19,000 $34,150 $65,350 Net Profit/Sales 21% 20% 22%
Projected Cash Flow Statement Cash Received Year 1 Year 2 Year 3 Cash from Operations
Cash Sales $90,000 $170,000 $300,000 Cash from Receivables $0 $0 $0 Subtotal Cash from Operations $90,000 $170,000 $300,00 Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $20,000 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 Subtotal Cash Received $110,000 $170,000 $300,000 Expenditures
Expenditures from Operations
Subtotal Spent on Operations $48,900 $94,350 $111,150 Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $800 $0 $0 Principal Repayment of Current Borrowing $10,000 $10,000 $0 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $0 $0 $0 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $0 $0 Dividends $0 $0 $0 Subtotal Cash Spent $59,700 $104,350 $193,150 Net Cash Flow $50,300 $65,650 $106,850 Cash Balance $19,000 $34,150 $65,350 Projected Balance Sheet Assets Year 1 Year 2 Year 3 Current Assets
Cash $90,000 $170,000 $300,000 Accounts Receivable $0 $0 $0 Other Current Assets $0 $0 $0 Total Current Assets $90,000 $170,000 $300,000 Long-term Assets $10,000 $9,000 $8,000 Accumulated Depreciation $1,000 $1,000 $1,000 Total Long-term Assets ($1,000) ($1,000) ($1,000) Total Assets $100,000 $179,000 $308,00 Liabilities and Capital
Current Liabilities
Accounts Payable $0 $0 $0 Current Borrowing $20,000 $10,000 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $20,000 $10,000 $0 Long-term Liabilities $0 $0 $0 Total Liabilities $20,000 $10,000 $0 Paid-in Capital $30,000 $30,000 $30,000 Retained Earnings ($20,000) ($30,000) $41,000 Earnings ($12,000) $44,000 $160,000 Total Capital ($2,000) $44,000 $231,000 Total Liabilities and Capital $18,000 $54,000 $231,000 Net Worth $80,000 $169,00 $308,000
Wrapping up the Bicycle Courier Business Plan Finding success in this industry isn't quite as easy as riding a bike.
Granted, you shouldn't have much trouble wiring a first-rate business plan. However, you'll still need to put the strategies you come up with into motion.
By following our step-by-step guide, you'll take the guessing game out of writing a business plan that even veteran entrepreneurs can respect.
The examples we've included should also feel reminiscent of training wheels that will support you on your business journey.
Would you appreciate some one-on-one help writing your bicycle courier business plan? Our pros are on hand to help you do just that. Get in touch and we'll do the heavy lifting for you.
3-year profit & loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $320,000 | $560,000 | $880,000 |
| Direct labour and contractor costs | $86,400 | $151,200 | $237,600 |
| Gross profit | $233,600 | $408,800 | $642,400 |
| Gross margin | 73% | 73% | 73% |
| Salaries and wages | $102,400 | $179,200 | $281,600 |
| Marketing and advertising | $35,200 | $61,600 | $96,800 |
| Rent and utilities | $24,000 | $24,000 | $25,200 |
| Other operating costs | $19,200 | $28,000 | $35,200 |
| Total operating expenses | $180,800 | $292,800 | $438,800 |
| Net profit / (loss) | $52,800 | $116,000 | $203,600 |
Break-even analysis:
- Estimated monthly fixed costs: $15,100
- Monthly revenue required to break even: $20,600
- Break-even is projected to be reached within the first 12–18 months of trading.