Brief Business Plan Model

Best Bicycle Delivery Service

Brief Business Plan
2016

EXECUTIVE SUMMARY
Best Bicycle Delivery Service presents a very exciting opportunity in my local market
with busy people. Best Bicycle will give customers faster delivery than the competition.
Revenues are expected to grow from $7,800 to $18,200 in three years.
BUSINESS DESCRIPTION

Product

Best Bicycle Delivery Service is a delivery service that helps busy people quickly
deliver products in the local market and help the environment at the same time.

Management and Operations


Best Bicycle will have zero managers and 1 employee. Best Bicycle will answer calls,
schedule deliveries, and make deliveries by bicycle.

MARKETING
Market research

Opportunity: Best Bicycle presents an exciting opportunity in my local market with busy
people who buy and sell products by phone or online in the local community according
to the following data (Total survey respondents = 20).

Evidence:

“Are you interested in using the Best Bicycle Delivery Service?”

• Respondents are interested in using the Best Bicycle Delivery Service.

• 80% (8 men, 8 women) responded either “yes” (12) or “maybe” (4)

“Do you often buy and sell products by phone or online in the local community?

• Respondents buy and sell products by phone or online in the local community.

• 90% of respondents (10 men, 8 women) responded “yes”

“Do you ever experience delays from car delivery services?”

• All respondents have experienced delays from car delivery services.

• 100% (10 men, 10 women)
Competitive Analysis

Best Bicycle has 3 direct competitors and 2 indirect competitors in my local market.

• Direct competition average price for similar product: $15 per delivery
• Indirect competition from the postal service and customers picking up their own
purchases.
Marketing Mix 

The following marketing mix will create the biggest sales for Best Bicycle because it is
uniquely designed to attract busy people who buy or sell local products by phone or
online. 

Product 

[Need to Consider (Goods): Sizes, Colors, Features]
[Need to Consider (Services): Sizes, Styles, Features]

Best Bicycle (Service)

• Delivery of small packages by bicycle

• Any location in the local market

• Delivery time: 30 minutes or less

Price

[Need to Consider: Profit, Profit margin, Competitor Prices] 

Best Bicycle

• $10 per delivery in cash. ($5 less than the competition)

Place
[Need to Consider: Where the target market shops for this product, Costs of Selling:
Directly or through other business]

Best Bicycle:

• Customers will schedule the service by phone

Promotion

[Need to Consider: How will people learn about the product, Advertising, Special
Pricing]
Best Bicycle:

• Advertise: Email and Social media

FINANCIALS

Figure 1: Startup Costs

• Used bicycle with basket - $75

• Backpack - $25

• Basic Smartphone - $100

Total Startup Costs - $200
Total startup costs will be $200.

Figure 2: Sales & Revenue projections

Expected Sales Year 1: 780 Year 2: 1300 Year 3: 1820
Price per product Year 1: $10 Year 2: $10 Year 3: $10

Expected Revenue Year 1: $7,800 Year 2: $13,000 Year 3: $18,200 


Revenues are expected to grow from $7,800 to $18,200 in three years.
Figure 3: Cost projections

Startup Costs Year 1: $200 Year 2: <None> Year 3: <None>

Operating Costs Year 1: $11,050 Year 2: 11,050 Year 3: 11,050

Expected Costs Year 1: $11,250 Year 2: 11,050 Year 3: 11,050

Operating Costs will remain stable for Years 1, 2, and 3.
Figure 4: Income Statement

Expected Revenue Year 1: $7,800 Year 2: $13,000 Year 3: $18,200

Expected Costs Year 1: $11,250 Year 2: 11,050 Year 3: 11,050
Expected Income Year 1: -$3,450 Year 2: $1,950 Year 3: $6,950

Income is expected to grow from a loss of $-3,450 to a profit of $6,950 in three years.