Business financial model file
Bicycle Shop Financial Model
Budget a bicycle workshop's tools, parts stock and staffed bench time before accepting a service-volume forecast.
Opening investment and working cash
The original case centers on repair services, with only a modest parts counter; it does not fund a showroom full of new bicycles. Opening parts stock is working cash, while stands and tools are investment. Add actual bicycle inventory and supplier credit terms if retail sales are part of the plan.
| Cash use | $ |
|---|---|
| CAPEX: Workstands and workshop tools | 18,000 |
| CAPEX: Shop fit-out and display | 24,000 |
| CAPEX: POS and diagnostic equipment | 6,000 |
| Pre-opening: Lease/professional/permit setup | 4,000 |
| Pre-opening: Pre-opening training and launch | 5,000 |
| Refundable deposit / tied-up cash | 6,000 |
| Opening stock / initial working inputs | 18,000 |
| Reserve: 2 selected fixed-cost months | 38,600 |
| Selected opening cash total | 119,600 |
CAPEX totals $48,000, pre-opening expense $9,000 and working cash $62,600. The deposit and opening stock tie up cash; they are not added again as monthly rent or consumed inputs. The reserve is a chosen fixed-cost buffer, not proof of full funding. Obtain actual installed/tax-inclusive quotes and dated opening payments.
Monthly fixed and variable OPEX
The two mechanic roles have a combined loaded payroll allowance of $9,600 and the counter/manager $4,800. These are original monthly cash budgets, not reported wages. Keep the roster fixed in this comparison; overtime or seasonal temporary staff need an added cost step.
| Commitment | $ per month |
|---|---|
| Two mechanics: loaded monthly commitment | 9,600 |
| Counter/manager: loaded monthly budget | 4,800 |
| Rent/common charges | 3,000 |
| Utilities | 450 |
| Insurance | 350 |
| Software/POS | 200 |
| Maintenance | 250 |
| Marketing | 350 |
| Admin/fees | 300 |
| Total selected fixed cash | 19,300 |
| Item | $ per unit |
|---|---|
| Net collected selling value | 125 |
| Parts consumed per service job | 28 |
| Consumables/warranty allowance | 4 |
| Percentage-only fee allocation (2.5%) | 3.125 |
| Contribution before scheduled payroll/fixed OPEX | 89.875 |
The percentage fee is an aggregate allocation, with no fixed per-payment charge assumed. Unit contribution is not owner income: the full listed monthly roster and overhead still need coverage.
Capacity, break-even and a lower-sales case
The assumed team has 240 productive mechanic hours. At 0.8 hours per standard job this permits 300 jobs, while bench availability allows 280. Planned sales are 260. A wheel build, e-bike fault or waiting part can occupy a different resource mix; this comparable-job ceiling is not a booking calendar.
For this fixed mix and commitment, whole-unit cash break-even is 215 completed standard service jobs per month: ($19,300) ÷ $89.875, rounded up. The aggregate capacity is 280 units; it does not establish customer demand or a workable daily sequence.
| Paid units | Net sales $ | Selected result $ |
|---|---|---|
| 190 | 23,750 | -2,223.75 |
| 215 | 26,875 | 23.13 |
| 260 (planned) | 32,500 | 4,067.50 |
| 280 | 35,000 | 5,865 |
At 190 jobs, the same mechanics and premises are paid. Count confirmed seasonal repair demand before funding benches; the retained guide examines a separate bicycle-sales and repair-capacity mix.
Practical KPI definitions
Measure billed service sales per completed job and direct work hours per job class. Track the parts-delay job rate as unique scheduled jobs delayed for missing parts divided by all jobs in that same scheduled cohort, and aged opening stock separately from consumed parts. Repair jobs and new-bike units need different margins and capacities.
No new-bike inventory financing, income tax, owner distributions or replacement tools are included. Stock is replenished and cash settles within the selected month; seasonal purchasing can require more working cash.
Method context: SBA business planning. All case prices, wages, cost ratios, reserve and capacity inputs above are original planning assumptions.
What the selected model covers
The official Bicycle Shop Financial Model listing describes weekday visitor plans, buyer conversion, repeat-customer lifetimes, category mix and prices. Monthly visitor and order mechanics roll into annual results. Stated outputs include profit and loss summaries, monthly and annual cash projections, dashboard charts and input error checks.
Use bench capacity before relying on repair growth
Our original four-bike sales shortfall removes $600 contribution. Eleven extra repairs would replace it, but the assumed bench has room for only eight. Even with those eight, the selected result is $160 below the original mix and cash remains tied up in unsold bikes.
Reconcile bicycle buying with workshop time before raising sales assumptions. Reserve assembly and handover work as well as repairs, and date the next supplier payment. The Bicycle Shop planning guide develops the original worked case.
Planning guide