BikeArt’’s mission it to provide functional items and art made from recycled bicycle components. Steve’s spouse, Shoodnt, will make the art. The featured products include wall clocks as well picture frames, table tops, chair, table, mobiles wind chimes and book ends.
BikeArt will have its own kiosk, located in the Valley River Mall. BikeArt can display larger items on the adjacent floor space thanks to the lease’s outstanding terms and conditions. This will increase sales because of the high pedestrian traffic to the mall.
BikeArt expects to reach profitability in the ninth month and make profits of almost $40,000 per year by the third.
The first month will serve to set up the kiosk, and get things going. Part-time employees will then be trained and hired during this month. Sales will begin slowly during this first month. The flow of customers passing by the kiosk will continue to increase sales from the second month.
Start-up costs total $45,000 This will be paid for by Steve Useitagyenâ€™s $25,000 equity investment and an additional $20,000 small-business loan.
Steve Useitagyen will manage the company as a sole proprietorship.
Steve Useitagyen is qualified to work within this niche market. The University of Portland awarded him a combined degree in art design and business administration. Steve worked in a bicycle shop throughout college. He started as a mechanic and moved on to sales. The shop was then managed by Steve for two years.
BikeArt will hire three part time employees to operate the kiosk. Steve, who will manage the purchasing, hiring, payroll, etc.
BikeArt is targeting two market segments: industrial art aficionados as well as bicycle enthusiasts. Both of these segments are very popular in Eugene. BikeArt will be focusing on these two categories because they are the most likely users of this type art work.
BikeArt has many competitors:
- You can also find other shops in the mall.
- Art galleries
- Bicycle shops.
BikeArt will capitalize on its unique position in a niche market, being the only retailer who exclusively sells bicycle artwork. Since the mall gets lots of foot traffic all day, it is like having your own show room in the middle of the hallway of a crowded mall.
The company plans to grow slowly and establish a sustainable level of sales and cash flow before seeking to expand. BikeArt intends to open more kiosks in Salem Corvallis, Portland and Portland after this has been accomplished. This expansion is expected to take place after year three.
The Break-even Analysis indicates $15,212 is needed in monthly revenue to reach the break-even point. Pricing of BikeArt’s products will be based on a desired net margin of 12%. BikeArt’s products are locally made works of art and prices will range from $40 to $500 each.
The business is expected to reach profitability by month 9, with revenues of $147,000 and profits at $35,500 by the end year 2.
BikeArt is a company that creates functional and artistic items from bicycle parts. Our goal is to keep customers coming back. If we follow this maxim, all else will fall into place. We will exceed your expectations with our services.
The following are the goals for the first 3 years of operation:
- To create a product-based kiosk whose primary goal is to exceed customer’s expectations.
- The increase in the number of products sold by 20% each year.
- To develop a sustainable retail outlet that sells artwork and functional items made out of recycled parts.