Business Plan for Electric Bike Company

This assignment presents a detailed business plan for an electric bike company. It outlines the start-up investments required, including equipment, marketing, and legal fees, totaling £235,905. A breakdown of operational costs over six months is provided, covering salaries, insurance, rent, repairs, and utilities. Projected turnover based on the sale of 350cc electric bikes is also included, demonstrating a potential profit of £1,124,095 over the six-month period.

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1. BUSINESS OVERVIEW
Q1. What is your business (or value) proposition and why do you think it’s a good idea?
It is important for every individual to design a new venture as an effective entrepreneur. A new business venture requires to have a
systematic detail plan that can provide more effective outcome in coming time. The business proposal strategies is known as expression of
entrepreneurial vision which includes detail description about the operation and plan for the purpose business. The primary purpose of
conducting new venture is to make innovation in new segment of products.
Aim of the work:
The primary aims of this present work is to provide a perfect base for a business plan incorporating a E-bike in London. This project
is carried out by utilising entrepreneurial methods for the business strategies. Every aspects of business formulation and operations will be
analyse closely. This happens to be a detail plan of actions by shaping all functional areas.
Business detail :
An electronic bike manufacturing plant is planning to be started in London. Opening a new venture plant in UK country is an effective
and innovative idea that has a potential impacts on people of living in that country. An electric bike which is consider as an E-bike, power or
booster bike that consists of integrated electric motor which is helpful in propulsion. The best thing about this particular bike is that it is
having high speed of 100 in just 3 second. They need to charge this bike for 7 hours and after that they can make use of it till 3 to 4 days. Its

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attractive feature and low cost maintenance make this bike more effective for people.
Idea behind this project:
As it has been seen that plenty of people in now a days are working in corporate world. For this purpose, they use to reach at there
office or workplace on time more quickly. They use various modes of transportation in order to run for their business or offices. There are
different companies which is associated with the production of bikes or any other auto-mobile assets. In accordance with this they are
charging high price for buying several bikes separately those are having best quality and services. But this bike can help them to feel the
faster drive experiences. This will be helpful for them to save time and costs.
Q2. How have you confirmed there is a need for your business?
As compare to various customer perception regarding requirement of new thinks that can motivate them to use products according to
their choice. This new venture can be more effectively helpful for the people of UK to sustain and experience faster ride. Plenty of bikes are
available in the market those are having good feature in them. But some attractive aspects are not their which will forces them to switch them
for other products. Under this, some attractive feature such as speed, durability, maintenance cost and shining looks. Because of having
electric capability this will be one of the best bike that can have the capability to satisfy customer needs and demand.
Name of the E-Bike: Electric Fusion
Mission:
The primary motive behind conducting this particular business plan is to attain maximum customer attraction toward E-bike. The
quality features of this bike would meet the highest standards of superiority and creativity. Delivering the customer an impeccable services of
E-bike is always proud aspects for the company at nationwide. Electronic Fusion is a sustainable and friendly bike that rewarding
environment in the form of negative impacts which is generated from this specific bike.
Vision statement:

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This company is planning to become more effective company that provide ozone-friendly bike in next coming year. They wants to
capture maximum market in London. Our vision is to develop their business as one of the leading brands in the electronic bike business.
STP: It is more familiar planned method in modern marketing. It is considered as one of the most effective tools in providing products into
new market. This model is effective when developing market communicative plan of action. It provide marketers to prioritise project and then
formulate in order to engage their crucial strategies in accordance with the fusion bike.
Segmentation can be done through using various modes. This will be helpful in order to increase better understanding of products
those are being produce by the company. Such as:
 Demographics: It is related with the combination of age, gender, income, household, size and their occupation. This e-bike is
effectively helpful for the young age group people. Male people can the right target those are easily grab these opportunities to feel
comfortable after using this particular bike.
 Psychographic: This segment is related with the personality and emotions which is associated with attitude and behaviour of the
people. They wants to build strong image or status in front of other. In the meanwhile, they use to buy products without looking any
other aspects.
Target market positioning:
In case of increasing large customers, they need to select one of groups which can easily avail services which being provided by the
auto-mobile company. By the help of positioning, marketers attempts to create positive image in front of people and other society.
Positioning means lot to a company in order to create good market brand as with customers will decided to perceive it after using this
particular e-bike. Hence, Fusion company will require a positive positioning to stand on its feet in major competitive market situation. A
target market is an effective aspects of customers within a business serviceable sector that a business wants to enter. This is an effective
marketing strategies which is needs to be consider by the owner before making any vital planning for launching a new products into the
market. This products is mainly useful for young generation those are looking for such kind of features in modern time.

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SWOT analysis:
Our business plan of starting with an electric bike is to test run the business for the time being of 2 to 5 years. If they are going to
invest capital in order to expand the business in united states they need to conducts a internal research. This will be helpful for them to find
out various factors those are affecting business growth and performance of an organisation.
Strength:
The location of our electronic bike manufacturing, business models that will be operating, different modes of payment and excellent
customer services environment that is definitely happens to be positive aspects of this company.
Weakness:
One of the major limitation that can be determine against the company is the facts they are coming with this new plan of e-bike which in
London for the fist time. They do not have that much financial capability in order to compete with already players in this particular industry.
Opportunities:
The biggest facts that are going to be presented in operating their bike dealership and opening repair shop in busiest streets in large areas
of London market. This will attract plenty of young couple with increasing number of people and other housing switches to cycling. As
against deriving provides company with unlimited growth opportunities to take facilities of using e-bike on rent. This can be analyse by
conducting feasibility studies and market research on potential customers that will be looking for grabbing this chances of buying this Fusion
bike.
Threat:
It has been seen that as every company whether operating for the first time or working of longer period of time is having certain threats
from other one. They biggest threat which would be making huge impacts in related with economic downturn. If any similer business is
arrived with its latest e-bike in same areas in which Fusion is located. Few unfavourable legal norms of government can also affect the
operations of the company.

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1. WHO ARE YOUR CUSTOMERS AND HOW WILL YOU REACH THEM?
Customer
Profile
Why are you targeting
them?
How are you
going to get their
attention?
How are you going
to convince them to
buy from you?
What specific
activities does this
mean you need to
do?
What approximate
level of spend will
you need on each
activity?
Sportsmen and
sportswomen
Positive changes of getting
maximum attraction.
From making ads
during the time of
any racing events.
Unique features that
make them for the
different from other
bikes.
Introduce there
features in any
crucial events by
offering offers etc.
£500 to £1500 as
current account
borrowings and with
5.5% of EAR.
2.Motor cycling
clubs
Capacity of engines and
powers can be analyse
easily.
By promoting it
over TV or while
racing
competitions.
Less pollution and
effective durability.
Special discount
offering with initial
purchase.
£500 to 2500 as initial
level.
3. Everyone To search for better Through the use of Special offers and Through delivering £500 to 5000

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that resides in
our targets
location
outcomes or reviews. social media and
internet.
competitive pricing. special free test
derives to those in
order to increase
market share of the
company at
opening stages.

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2. WHO ARE YOUR COMPETITORS AND HOW WILL YOU BEAT THEM?
Competitor
profile
What will you be
competing with them on?
Why do customers
buy from them?
Why would
customers switch to
you?
What specific
activities will you
need to do?
What approximate
level of spend will
you need on each
activity?
1.Matchless Because of its high speed
maximum number of
customers are use to go
with this.
Every customers is
having their own
perception that
cannot be identified.
They would think
that this company is
delivering high speed
bikes which in
current year.
They are offering
fuel efficient bike
that make them
different from other
companies.
Creating maximum
awareness among
people so that they
would get attracted
towards purchasing
such kind of bike.
£100 to 200 over
publication of news
into various social
media and posters.
2.Harley
Davidson
Long running capability
mainly use by
sportspersons in order to
moving from one country
to another. The best parts
of this bike is about its
road holding ability which
Standard features that
would long lasting
for maximum time.
Both price and
quality would be the
most possible reason.
Electronic Fusion
bike is providing eco
friendly feature bike
that is not affecting
the environment of
any country.
Specific needs which
will be effective
under this
circumstances
establishing a racing
competition of bikes.
This would be the
£500 to 1000 would
be the total amount
which is probably
invested into order to
organise a well
effective racing
championship.

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make them separate from
other company in nation
wide.
best possible activity
to collect effective
responses from the
customers
3.Triumph Trust of people about their
feature s which is being
provided by the company
in order to drawn
maximum attention of
people.
Again the point of
facts provide faith in
them regarding its
continuous position
of largest selling bike
for last couple of
years.
Both price and
feature are primary
reason to for
customers to switch
from one bike to
other.
Expo's and seminar
would be the right
techniques for fusion
company in order to
generate maximum
client towards their
business.
£500 to 2500 could be
enough amount that is
suitable enough to
conducts a expo of
motor bikes.
No Competitors.Explain Why

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1. HOW WILL YOUR PRODUCT BE PRODUCED OR HOW WILL YOUR SERVICE BE CARRIED OUT?
If you will be producing a product, how, where and when will it be produced?
Fro every setting a new Electric motor bike which is sustainable enough to develop an economy. This will be responsible for taking
valuable attention of young people to purchase this particular products. Process of product manufacturing:
 Raw material as well as other crucial elements are arrive at production units by the means of Just-in-time delivery system.
 Production starts in weld administration were computer controlled fabrication of design is been made in order to conduct effective
materials. Crucial section are welder together by manual, automatic and other equipments.
 In plastic sectors, small plastic resin pellets are melted and included into moulds under high pressure to form specific body of the bike.
 Both plastic and metal parts or elements are painted together in table under the department with the use of powder coating.
 Painted parts are deliver through overhead conveyors or two motor for the purpose of assembly line where all the parts are join together
for preparing a motorcycle. Wheels, brakes, wiring cables, lights, seats and other accessories those are installed on formulation of a motorcycle.
If you will be providing a service: who will deliver your service? Does it involve transport or equipment? What preparation will be
needed? Where will this take place? Will you need special premises etc.
After sales services is required to be provided to customers. This can be the most effective stages which needs to be kept more closure
with the company. Motorcycle remain more effective and collecting models is just as essential for customers as well as organisation. These
needs to be of superior quality. This particular section will be crucial for the company because if the customers queries are not rectify within
the set limits their business would get affected. For this purpose, a well effective place would be choose, where motorcycle can be serviceable

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in more easy manner. It does requires transportation and equipments that can be necessary while travelling around at any places. If any
time bikes gets choked to a particular area Fusion company would reached to the customer destination by just one call. The service staffs needs
to carry entire equipments those are applicable for repairing the bike. Yes, as this E-bike is automatic features which cannot be repair at any
where so the company needs to set up some specific place to resolve or maintain the bike.
In all cases, detail the estimated associated costs in the boxes on the following pages. You may also find it useful to include a flow chart.
COST DETAILS: BELOW, GIVE COST DETAILS1
How will the product(s)/service(s) be delivered to the customer? And how much will this cost?
Ans: There are various modes through which motorbike can be deliver to the respective customers. They can either buy it from the local
despatch centre or showroom. It will cost zero % transportation charges only books value of bike. Such as:
 350cc, 19.8 bhp and 200 pound = £3500.
 500cc, 24.8 bhp and 350 pound= £5000.
If some of them are asking to deliver it to there home or native location they need to include transportation charges or extra delivery
charges. That would increase total cost of the company up to a extent. Those specification would mention underneath:
 350cc, 19.8 bhp and 200 pound = £2500 + £200 TC+ £70 DC= £3770
 500cc, 24.8 bhp and 350 pound= £3500 + £150TC+ £50DC= £4700.
Note:
TC= Transportation charges
DC=Delivery charges
Quality: Please describe your quality control process.
1

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This process is started at the closing of assembly line where products are completely manufactured. An inspectors is appointed for the
purpose of checking quality of the product. This includes:
 Set standards
 Measure actual performance
 Compare actual performance with standard
 Take corrective action(If necessary)
1. Do nothing
2. Solve the issues
3. Revise the standard
Payment processing: How will payments be accepted?
For purchasing E-bike they have the option to pay either through cash, credit or debit card and paypal. These modes are more effective
with applicable rate of interest.
 If payment made in instalments then interest will be charged @ 5% through there bank account.
2. STAKEHOLDERS –
List the stakeholders Any issues which may arise and how you will manage them Any costs associated with this
1.Suppliers Extra charged for raw material delivery. (Payment made in advance to
get certain amount of discount.)
Raw material and equipments costs.
2.Shareholders Share percentage issues(Dividend paid on the basis of their share
holdings)
Initial investment cost
3.Staffs Salary and incentives (Bonus, rewards etc.) Operational costs
4.Other Payment issues(Taxes) Legal application cost.

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3. PRICING - In this section you need to outline your pricing plan
Product or Service – list up to
3
Price you will charge Why is your price set at this
level?
How does this price compare to
your competition?
1. Motorbike 1(Fusion) £ 3500(350cc bike) Because it will be under the
budget of middle class people.
Favourable
2. Motorbike2(Fusion x) £5000(500cc) Mainly for high class people. Moderate
3. Accessories £500 1 year insurances facilities. Favourable
4. SALES – QUANTITY –
Product or Service (from table above) Predicted sales (££) Time-frame (e.g.
within x weeks or
months of launch;
or
daily/weekly/mont
hly sales etc.)
Notes: How have you arrived at this figure?
How have you used your market research or
test trading to forecast your target sales
figures? Consider all relevant factors.
1. Motorbike 1(Fusion) (Number of bike sold
* per unit bike price)=
10000*3500=3500000
0
6 months Regular sales (Few advance booking has
already been done). Risk of market trend.
2. Motorbike2(Fusion x) 6000*5000=30000000 13 months Both regular or seasonal sale. Little booking
has been done.(Sportsman and racers).
3. Accessories 12000*150= 1800000 3 months Regular (provided during the time of

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purchase). Risk of safety and security.

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Your business needs to operate according to relevant legal frameworks and regulations. You should also ensure you are covered by appropriate
insurances should anything go wrong.
Needs Associated costs?
Do you need any licences to operate your business? Yes, Licence cost
What legal requirements are applicable to your business? Data protection, health and safety, patent etc.
What insurance might you need to cover your business? Health and safety and professional indemnity.
Anything else to consider? IPR cost to registration of patent.

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Over a period of 6 months, summarise all projected costs2 and turnover previously identified in your plan. Categorise them into 3 sections: Set-
Up, Operational, and Projected Turnover. Add extra lines if you need them. Where a monthly cost is appropriate, use these columns. Where not,
you can simply include a total:
Values in pound £
1. SET-UP – LIST
ACTIVITIES BELOW MONTHLY COSTS
TOTAL
COSTS OVER
6 MONTHS
1 2 3 4 5 6
TOTAL COSTS OVER
6 MONTHS
The motor
350cc 5000 5250 5300 5325 5350 5375 31600
500cc 6000 6250 6275 6300 6420 6445 37690
Battery pack 0
350cc 4500 4575 4700 4850 4900 5000 28525
500cc 5500 5550 6000 6200 6250 6300 35800
2
e

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The controller 2000 2500 2560 2750 2800 2850 15460
Chain sprocket 2200 2450 2520 2550 2560 2600 14880
Gear teeth 1500 1570 1600 1650 1675 1700 9695
£221610
2. OPERATIONAL –
LIST ACTIVITIES
BELOW 1 2 3 4 5 6
TOTAL COSTS OVER
6 MONTHS
Salaries 250 300 350 350 375 375 2000
Insurance 300 350 375 375 400 420 2220
Director fees 350 375 375 375 400 475 2350
Rent 450 450 450 450 450 450 2700
Repair and taxes 500 550 600 650 700 725 3725
Electricity and light 200 200 200 200 250 250 1300
TOTAL FOR OPERATIONAL 14295
GRAND TOTAL SET-UP + OPERATIONAL OVER 6 MONTHS £235905
3. PROJECTED
TURNOVER – LIST
ACTIVITIES BELOW 1 2 3 4 5 6
TOTAL TURNOVER
OVER 6 MONTHS
Sales
350cc (10000 bikes) 42500 42500 127500 127500 2550 255000 850000