!" #$%&'"()"

!

!

!"#$%&'(&

)*"+,-./01&2&3,4%/5-&6""#5&70#"+&80"&9::;&

<:&=$>?,@&A.$5?"".&B:.$>"#@&3.+/5&C"00"#,&

!

*" #$%&'"()"

!

Executive Summary !

A community based bike center. A gathering place for cyclists. These ideas are

central to the creation and operations of Pedal SG. It would be the first facility in

Singapore that brings together the technical and social aspects of cycling under

one roof. This concept however, is not a new breakthrough idea. A similar and

highly profitable business now runs in Australia. It gives customers a place to

repair and upgrade their bikes, whilst at the same time, sit down, relax and

enjoy life with people of similar interests.

With big cycling routes in Singapore such as East Coast Park, Mandai and

currently developing Park Connector Network, we see Singapore as the ideal

location to open a community based bike center. As cyclists ourselves, the one

problem we faced was a lack of communication within the community. With

Pedal SG, we look to solving this problem by offering a location for our fellow

cyclists to meet up and co-ordinate rides. The allure of meeting new people with

the same interests would be our greatest attractive feature.

We strongly believe in our business, and its success. Through this business plan,

we hope to convince you enough of the merits of our business idea and hope that

you will join Pedal SG as investors in a business that prioritizes its customers

and community.

Bo Hamby

President

Chris Kennedy

Vice-President

Thasbeeh Mohamed

Vice-President

#$%&'"()" +"

!

Table of Contents

Brief Background 4

Mission Statement 4

Marketing

Industry Overview 5

Market Segmentation 6

Marketing Plan 7

Competition

Competitor Analysis 8

Competitive Advantage 9

SWOT Analysis 9

Operations

GANTT Chart 10

Personnel Organization Chart 11

Customer Flowchart 12

Finance

Breakeven Analysis 13

Income Statement Assumptions 14

Three Year Income Statement 15

Closing Statement 17

Appendix 18

," #$%&'"()"

!

Brief Background

As the first of its kind business in Singapore, Pedal SG will be successful as a

community based bike bar and mechanic store. With the strong community and

eco-friendly values in Singapore behind the business, Pedal SG is bound to

succeed in the competitive economic society that Singapore is. Modeled after the

existing business framework in Australia, Pedal SG is not a “Hail-Mary” shot at

success. It has been tried and tested, and has proven to work.

Our major objectives in the beginning few years of the business include turning

our losses into profits and spreading the word of our business to local

Singaporean cyclists and expatriate riders living in Singapore. We aim to

advertise in health magazines and on the streets of Singapore in order to gain

more customers and create a profit.

Mission Statement

Our mission is to provide all a cyclists needs in one place, from drinks to parts to

repairs and also give the cyclists in Singapore a place to gather, meet new people

and organize cycling events.

#$%&'"()" -"

!

Industry Overview

In the past few years, cycling has been growing both in Singapore and around

the world at an exponential rate. With the increasing concerns over health and

fitness, many Singaporeans see cycling as the perfect opportunity to get some

exercise within their busy schedule.

The loss in weight, however, is countered with a gain in the bank account.

Bicycles are economical and provide many saving opportunities to the rider.

Even the high-end bicycles cost only a fraction of what it might to purchase

other types of vehicles. In addition, there is no need for the rider to purchase a

“Certificate of Entitlement” to ride on Singapore’s roads. The rider also saves on

variable costs, with no need to buy fuel and a drastic difference in the cost of

repair.

Singapore is well known worldwide as a “clean and green” city. By embracing

cycling, Singaporeans have lived up to this name. With no carbon emissions,

cycles are the greenest form of transport available.

However, cycling does not only benefit the individual and the environment.

Cycling benefits the society, as it is also a social event. With one of the lowest

birth rates in the world, the Singaporean government wants its citizens to meet

people and be more social. Cycling in groups provides Singaporeans with a time

and place to meet and mingle with other Singaporeans.

Pedal SG looks to incorporate the above ideas in its own unique way. By

organizing regular rides for cyclists, Pedal SG looks to offer its patrons an

opportunity to exercise while meeting new people. With the professional

mechanics on-hand, we look to offer our customers a way to reduce both their

carbon footprint and the strain on their budget.

." #$%&'"()"

!

Market Segmentation

A given pre-requisite would be that our patrons would be avid cyclers and

cycling fans. Yet, within the cycling community, there are different market

segments we are trying to attract, each with individual characteristics and

needs.

1. Casual Riders

• Mainly 17-25 year old recreational riders

• Their bikes range from $700-2,200

• Cycling is their hobby

• They need a place where they can meet their fellow cyclists for a nice chat

over coffee or other bar food.

• In order to reach out to them, we will place our advertising at bus stops

around popular cycling destinations such as East Coast

• As young adults, this market segment is highly sensitive to price. In order

to maintain them as returning patrons, we will have to keep our prices

competitive, and thoroughly discuss any proposed changes in price.

2. Serious Riders

• Mainly 40-55 year old cycling fans and health fanatics

• Their bikes range from $2,200-14,000 dollars

• They cycle in order to stay fit

• They need a place to buy new cycle parts and a place to hydrate and

replenish after their ride.

• For them, our main advertising mode would be through health magazines

and the local newspapers.

• As older professionals with stable jobs and relatively higher income, this

segment is not highly price sensitive. They are willing to pay money to

keep themselves fit and healthy.

#$%&'"()" /"

!

Marketing Plan

We have two main parts to our product. Our café/ bar is where we provide our

patrons with food and drinks such as bar snacks, energy shakes and alcohol. The

other part of our business is the bike store, in which we provide customers with

a mechanic and spare parts for tune-ups and upgrades to their bikes.

Our pricing strategy is relatively straightforward. At the beginning, our

mechanics will offer free tune-ups to patrons. The company will cover the labor

costs, while the customer pays for parts. This free service will be our loss leader

until we make a profit. The parts will be priced according to our competition

while the food and drinks will be sold at a premium price. We also plan to offer

loyalty programs to our frequent customers. Customers can purchase monthly

or yearly memberships in order to receive discounts on all our products.

Our store will be located off East Coast Park. As a popular location for cyclists,

East Coast Park is the ideal location for Pedal SG to set up operations. With plans

to have a large store, the stock we buy from distributors/ sub-distributors will be

housed within the complex.

Pedal SG will have various promotional outlets. Our promotion will focus on our

ability to serve all of a cyclists needs. If it rains while riding, cyclists often stop

and wait out the rain at bus stops. Therefore, Pedal SG plans to advertise at bus

stops. We are also considering advertising in Singaporean health magazines and

local newspapers. In accordance to the AIDA model, the vibrant colors will

attract our potential customers. The logo and mission statement will create

interest towards our products. The desire to contact and visit us will stem from

the attractive pictures and with address in the advertisement, the customer has

the power to action upon his desire.

We also have a fully functional website online. We have provided our customers

with links to pages of our suppliers, and other websites of interest to cyclists in

Singapore. Our blog area is where the information of rides, events and

promotions are shared. When the store is fully functional, we will be able to post

pictures of these events after they occur.

0" #$%&'"()"

!

Competitor Analysis

There is no one firm that provides direct competition in Singapore. However,

individual firms in the bicycle market located around F&B outlets provide some

competition. One such firm in Singapore is Cheap John’s.

Cheap John’s

Strengths

• In the same general vicinity as F&B outlets and bike rest stops

• Store manager is welcoming to regular customers

• A well-stocked, wide variety of parts and bike accessories

Weaknesses

• Ironically, prices are higher than other stores

• No collaboration between Cheap John’s and F&B outlets

• Store has the wrong setting and mood

• Store is geared towards adults and is not welcoming to teenagers

Our business model is based off a similar concept run in Australia. BikeBarBondi

is not a competitor in Singapore; however, analyzing the business provides a

better understanding as to how we have to run our store.

BikeBarBondi

Strengths

• Strong community involvement

• Integrates a bicycle shop, a bar and a training center

• Well-stocked with a wide variety of parts, accessories and bikes

• Attracts both beginners and highly experienced riders

Weaknesses

• Workshop and store seemed cramped and at a loss for space

#$%&'"()" 1"

!

Competitive Advantage

Our main competitive advantage would be our ambiance. Our staff will be

devoted to ensuring that our patrons are relaxed throughout their experience at

Pedal SG. The chairs and couches will be really comfortable, while a large TV

screen will be installed for patrons to enjoy international cycling tours and

races.

Pedal SG houses both food and drinks and a bicycle shop under one roof. This

convenience is another competitive advantage. Patrons will not have to leave

the complex while waiting for their bike to get repaired. They can socialize at the

bar and pick up their bike the moment the mechanic is done with it. The

convenience and quality that Pedal SG offers will make it more reputed and

patrons will spread the word of our company.

Another advantage Pedal SG has is its pricing strategy. By keeping prices

consistent with our competitors and waiving labor fees for our patrons, we are

trying to undercut our competitors. This will turn our customers into regular

patrons.

SWOT Analysis

Strengths

• Pedal SG will incorporate a community feeling with patrons getting the

opportunity to interact with each other over rides and other events.

• Not all operations have to be run by staff. Loyal and trustworthy

community members will be able to organize rides as well.

• Staff will be friendly and willing to go out of their way to help patrons.

Weaknesses

• Pedal SG would not be a family-oriented business. It is a place for

patrons to with their friends.

!2" #$%&'"()"

!

Opportunities

• No other business in Singapore has a similar concept. If the East Coast

store is successful, a second store could be opened at another popular

cycling location.

• Pedal SG could sponsor local cycling teams and organize local races and

criteriums.

Threats

• Cycling in Singapore becomes a fad, not a trend

• Competition crops up around Singapore

GANTT Chart

Once there is enough capital to start the project, it is expected to take around 4

months until doors can open. The following chart shows the actions that need to

be taken prior to opening night, and the expected time needed for each action.

#$%&'"()" !!"

!

Personnel Organization Chart

Initially, Pedal SG will hire 12 employees. The chart is followed by a short

description of the skills and qualifications needed for each position.

President:

Must be passionate, social and know everything about the business.

Vice-President of Sales:

Must have experience in running businesses and must know how Pedal SG is

run.

Vice-President of Operations and Finance:

Needs to be accountable for the daily transactions and creating financial

statements. Needs to know the basics of profit margins, break-evens and how to

generate revenue. Experience recommended.

Operations Manager:

Has to be social and a natural leader. Experience not necessary.

Marketing Manager:

Must be creative and have a basic understanding of bicycles. Experience in the

marketing field is necessary.

President (Bo Hamby)!

VP Operations & Finance (Thabeeh

Mohamed))!

Operations Manager!

Executive Chef! Assistant Chef! 2 Bartenders! 2 Salespeople! Mechanic!

VP Sales (Chris Kennedy)!

Marketing Manager!

!*" #$%&'"()"

!

Executive Chef:

Must have at least 4 years experience in the kitchen, with at least one year as a

sous or executive chef.

Assistant Chef:

Must have at least 2 years experience in the kitchen. No formal schooling

necessary,

2 Bartenders:

Needs a bartending license. Has to be social and friendly.

2 Salespeople:

Needs an in-depth knowledge of bikes and has to be social.

Mechanic:

Bike mechanic license required.

Customer Flowchart

When a patron walks through the doors of Pedal SG, he/ she has many options.

The options are presented in the following flowchart.

#$%&'"()" !+"

!

Break!even Analysis

Pedal SG has two main sources of revenue. We believe that on average, a

customer will spend:

Parts $55

Food and Beverages $20

Revenue per customer $75

These revenues are created by the following costs:

Cost of Parts $21.30

Cost of Food and Beverages $12.80

Executive Salaries (per customer) $21.30

Variable Cost per customer $55.40

The contribution is $19.60. This is needed to cover the fixed costs that include:

Salaries $13, 776

Rent $18, 000

Utilities $2, 000

Marketing $2, 000

Depreciation $500

Total Fixed Costs $36, 276

In order to breakeven Pedal SG needs 1851 customers a month. This translates

into 62 customers a day. This is a stable and highly achievable target.

!," #$%&'"()"

!

Income Statement Assumptions

Initial Assumptions (1st month)

15 people buy parts each day $55

15 people buy food and beverages each day $20

50 members $5 (per month)

Growth Assumptions

February-June 2012 8%

July 2012-January 2013 10%

February 2013-August 2013 6%

September 2013-January 2014 4%

February 2014-December 2014 2.5%

Variable Costs (as a percentage of Revenue)

Executive Salaries inclusive of: 30%

President 15%

Vice President of Operations 7.5%

Vice President of Sales and Finance 7.5%

Food and Beverages 18%

Parts 30%

!"# $%&'(#)*#

!

Three!Year Income Statement

!"# $%&'(#)*#

!

"#$%$$$!!

!"!!

!#$%$$$!!

!&$$%$$$!!

!&#$%$$$!!

!'$$%$$$!!

!'#$%$$$!!

&! '! (! )! #! *! +! ,! -! &$! &&! &'! &(! &)! &#!&*! &+!&,! &-! '$! '&! ''! '(! ')! '#!'*! '+!',! '-! ($! (&! ('! ((! ()! (#!(*!

!"##$%&'

()*+,%'"-'."/01&'

./0/12/!

34566!74589:!

;/:!74589:!

!"# $%&'(#)*#

!

Closing Statement

In order to cover our start-up costs and initial 20 months of losses, we require

$470, 000. We are asking investors to provide 100% of that sum. In return,

investors will own 49% of the company. However, the President and Vice-

Presidents will make all decisions. When Pedal SG makes a net profit, investors

will receive a yearly dividend amounting up to 49% of the net profits for the

year. The rest of the money will be retained in the business for future

investments. Once the loan is paid off, investors will have the option to sell their

share of the business back to the president or one of the vice-presidents.

As the first of its kind business in Singapore, the business will pedal to success.

Pedal SG gives the cyclists of Singapore a place to communicate, collaborate and

celebrate their passion. This community based bike center is also a good

investment. We hope to see potential investors turn into partners, and our

dreams turn into a reality.

!"# $%&'(#)*#

!

Appendix

Print Advertisement:

Everything a cycl ist needs !

under one roof "

Pedal SG

# East Coast Park Road

!"#$%&'(& )*&

!

Website:

http://web.me.com/boshmoe/Pedal_SG/Welcome.html

Name Card:

!