To turn this example into your own bicycle delivery business plan, use the bicycle delivery business plan template.
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 higher-earning individuals will help us stand out in this increasingly competitive industry.
Our sales forecasts suggest that our revenue will increase by 27% in Year 2. 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 $110,000. This will allow us to purchase more delivery bicycles and beef up our marketing.
Wheelies Couriers is seeking $110,000 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 | $918,700 | $1,163,900 | $1,352,800 |
| Gross margin | 56% | 57% | 56% |
| Net profit / (loss) | ($77,254) | $11,480 | $70,546 |
Company Overview
Wheelies Couriers is a bicycle courier and delivery service founded by Leonard Price and Kirk Wood, operating as a partnership. Headquartered in Brooklyn, New York, 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 | Expand rider fleet and client base |
| Year 2 | Expand service offering, grow revenue by 27%, reach break-even, hire additional staff |
| Year 3 | Grow net profit to $70,546, extend coverage to neighbouring boroughs or new customer 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 owns bicycles, equipment, uniforms and trackers with a book value of $91,500, and it leases a small warehouse in the heart of Brooklyn.
Market & Customer Analysis
The bicycle courier industry is growing quickly, and our study of the market suggests that growth will continue for years to come. 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 competition 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 competition between all the different methods to courier items.
The bicycle courier market is sizeable and expected to grow, which leaves a real opportunity to build a budding business.
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 about 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, large courier network, app ordering | National platform; generalist rather than a dedicated bike courier |
| Postmates | Strong marketing, national presence | Consumer-focused; less tailored to business document runs |
| Roadie | Competitive pricing, crowdsourced driver network | Car-based; built for longer routes more than short Brooklyn hops |
Wheelies’ competitive edge: Fast short-distance delivery by bicycle, personalised service, and a clear focus on Brooklyn residents and businesses set us apart from the established players listed above.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Specialist expertise; experienced founders; strong client relationships; differentiated positioning | Weaknesses: Limited brand recognition outside Brooklyn; single location; reliance on the founders for key decisions |
| 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 winter months a far more profitable period for Wheelies.
Our sales forecasts suggest that our revenues will grow by at least 16% 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 serious 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 their 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
Felix is who we look to for overseeing the financial health of Wheelies. Although the business has many moving parts, he always ensures that our books are in order. 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 (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Sales | $918,700 | $1,163,900 | $1,352,800 |
| Direct Cost of Sales | $57,000 | $72,200 | $83,900 |
| Production Payroll | $322,400 | $400,600 | $478,000 |
| Other Cost of Sales | $24,800 | $31,400 | $36,500 |
| Total Cost of Sales | $404,200 | $504,200 | $598,400 |
| Gross Margin | $514,500 | $659,700 | $754,400 |
| Gross Margin % | 56.0% | 56.7% | 55.8% |
| Operating Expenses | |||
| Sales and Marketing Expenses | |||
| Sales and Marketing Payroll | $73,400 | $76,900 | $80,600 |
| Advertising/Promotion | $27,800 | $33,600 | $37,900 |
| Other Sales and Marketing Expenses | $6,300 | $7,100 | $7,800 |
| Total Sales and Marketing Expenses | $107,500 | $117,600 | $126,300 |
| General and Administrative Expenses | |||
| General and Administrative Payroll | $229,000 | $238,400 | $249,700 |
| Depreciation | $55,050 | $62,950 | $52,075 |
| Dues and Subscriptions | $1,200 | $1,300 | $1,400 |
| Professional Fees | $8,700 | $9,300 | $9,900 |
| Rent | $46,800 | $48,200 | $49,600 |
| Software Purchases | $11,900 | $13,200 | $14,600 |
| Insurance | $44,300 | $55,900 | $64,700 |
| Telephone and Internet Access | $8,400 | $10,700 | $12,100 |
| Utilities | $7,900 | $9,400 | $10,300 |
| Miscellaneous | $5,400 | $6,100 | $6,800 |
| Payroll Taxes | $65,604 | $75,170 | $84,872 |
| Total General and Administrative Expenses | $484,254 | $530,620 | $556,047 |
| Total Operating Expenses | $591,754 | $648,220 | $682,347 |
| Profit Before Interest and Taxes | ($77,254) | $11,480 | $72,053 |
| EBITDA | ($22,204) | $74,430 | $124,128 |
| Taxes Incurred | $0 | $0 | $1,507 |
| Net Profit | ($77,254) | $11,480 | $70,546 |
| Net Profit/Sales | (8.4%) | 1.0% | 5.2% |
Projected Cash Flow Statement (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Cash Received | |||
| Cash from Operations | |||
| Cash Sales | $569,594 | $721,618 | $838,736 |
| Cash from Receivables | $338,351 | $433,700 | $507,453 |
| Subtotal Cash from Operations | $907,945 | $1,155,318 | $1,346,189 |
| Additional Cash Received | |||
| New Investment Received | $110,000 | $0 | $0 |
| Subtotal Cash Received | $1,017,945 | $1,155,318 | $1,346,189 |
| Expenditures | |||
| Expenditures from Operations | |||
| Cash Spending | $690,404 | $791,070 | $893,172 |
| Bill Payments | $242,765 | $295,047 | $334,410 |
| Subtotal Spent on Operations | $933,169 | $1,086,117 | $1,227,582 |
| Additional Cash Spent | |||
| Purchase Long-term Assets | $77,400 | $31,600 | $18,900 |
| Subtotal Cash Spent | $1,010,569 | $1,117,717 | $1,246,482 |
| Net Cash Flow | $7,376 | $37,601 | $99,707 |
| Cash Balance | $56,076 | $93,677 | $193,384 |
Projected Balance Sheet (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Assets | |||
| Current Assets | |||
| Cash | $56,076 | $93,677 | $193,384 |
| Accounts Receivable | $32,155 | $40,737 | $47,348 |
| Total Current Assets | $88,231 | $134,414 | $240,732 |
| Long-term Assets | |||
| Long-term Assets | $220,200 | $251,800 | $270,700 |
| Accumulated Depreciation | ($106,350) | ($169,300) | ($221,375) |
| Total Long-term Assets | $113,850 | $82,500 | $49,325 |
| Total Assets | $202,081 | $216,914 | $290,057 |
| Liabilities and Capital | |||
| Current Liabilities | |||
| Accounts Payable | $17,535 | $20,888 | $23,485 |
| Subtotal Current Liabilities | $17,535 | $20,888 | $23,485 |
| Total Liabilities | $17,535 | $20,888 | $23,485 |
| Paid-in Capital | $117,000 | $117,000 | $117,000 |
| Retained Earnings | $144,800 | $67,546 | $79,026 |
| Earnings | ($77,254) | $11,480 | $70,546 |
| Total Capital | $184,546 | $196,026 | $266,572 |
| Total Liabilities and Capital | $202,081 | $216,914 | $290,057 |
| Net Worth | $184,546 | $196,026 | $266,572 |
3-year profit & loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $918,700 | $1,163,900 | $1,352,800 |
| Rider payroll and direct delivery costs | $404,200 | $504,200 | $598,400 |
| Gross profit | $514,500 | $659,700 | $754,400 |
| Gross margin | 56% | 57% | 56% |
| Salaries and wages | $368,004 | $390,470 | $415,172 |
| Marketing and advertising | $34,100 | $40,700 | $45,700 |
| Rent and utilities | $54,700 | $57,600 | $59,900 |
| Other operating costs | $134,950 | $159,450 | $161,575 |
| Total operating expenses | $591,754 | $648,220 | $682,347 |
| Income tax | $0 | $0 | $1,507 |
| Net profit / (loss) | ($77,254) | $11,480 | $70,546 |
Break-even analysis:
- Estimated monthly fixed costs: $49,300
- Monthly revenue required to break even: $88,000
- Break-even is projected to be reached in Year 2.
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