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Bicycle Manufacturer Business Plan

3 March 2023 Businnes Plan


Bicycle Manufacturer Business Plan


Concrete Carbon Parts, a California-based company, designs and markets a variety carbon fiber seatposts for road bikes and mountain bikes. The California L.L.C. formed the company. and has operated out of the owner’s home for the last year. The company has sold individual seatsposts through the Internet to customers and the owner wants the company to go to the next level.

Products

Concrete Carbon makes high-end carbon fiber seatsposts. The shafts will feature custom-drawn carbon fiber, while the head unit will have a CNC-machined aluminum of 6000 series. Josh has developed a unique design for posts after extensive torture testing. Concrete Carbon is able offer a high-end, lightweight seatpost for road and mountain biking applications. These posts are very comfortable and safe due to the natural ability of carbon fiber to disperse vibrations. Concrete Carbon has yet to have a seatpost fail.

Concrete Carbon’s competitive advantage is built on its product. It is able offer a variety of posts to fit every rider. The weight of the rider determines which posts you will receive. There is no manufacturer that offers custom fitting. The way that the post is tuned can have a significant impact on ride quality, safety margins, and weight. You can have the post customized to your rider’s body weight. This will allow for safety to be maintained and optimize ride quality. It is positively compared to a suspension because of its flex.

Concrete Carbon will adopt an outsource model of production. Concrete Carbon is able to concentrate on the things it does best, which is serve its customer. Two leaders in their respective industries will handle production. Josh provides the subcontractors will all the design details and they will make the parts to specification. Josh’s network contacts with the subcontractors before Concrete Carbon played a part in their selection. They were also selected because they could scale production when necessary.

Market

Concrete Carbon currently sells its seatposts directly to consumers. Concrete Carbon must begin selling seatposts directly to new customers to expand its business. Concrete Carbon has decided that it will start selling to distributors. Individual customers have a 10% annual growth rate with 343,009 potential customers. The growth rate for distributors is 4% with 14 potential customers. The potential market is very exciting, despite the fact that the growth rate of distributors may not be as high as the individual sales and purchases.

Marketing

Concrete Carbon will utilize two marketing strategies that are very different to reach potential customers segments. The first strategy uses the website to raise awareness of Concrete Carbon’s parts to individual consumers. The website has been in operation for a year. Continuous improvements will be made to it. Concrete Carbon will be very active at industry trade shows to establish sales relationships. The best way to establish close relationships and build trust with potential distributors is at trade shows. Since the business relationships are based on trust, participation at the shows will allow Concrete Carbon to invest a lot of trust into many different relationships.

The first year’s sales will be $119,000 and then rise to $332,000 the second year. Concrete Carbon Parts will see a steady increase in profitability and gross margins over the next three-years.

1.1 Keys to Success

  • Products designed with precision.
  • All promises to customers and vendors must be kept.
  • Strict financial controls.

1.2 Mission

Concrete Carbon Parts has set out to produce the best carbon seatposts in the industry. Concrete Carbon Parts will be focusing on lightweight, comfort, and a realistic safety margin in all of its products.

1.3 Objectives

  • To be the most trusted carbon-seatpost bicycle manufacturer.
  • Concrete Carbon should increase sales in order make it a sustainable enterprise.
  • Significantly increase sales through the creation of a new customer segment.


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