Electric Bikes: Formulating Business Plan for Startup Venture

This report presents a comprehensive business plan for a proposed electric bike startup, "Electric Bikes". It begins with an executive summary outlining the venture's opportunities and challenges, followed by an introduction that highlights the growing demand for electric bikes. The report details the assumptions underlying the business, emphasizing the environmental benefits of electric bikes. It then delves into the core of the business plan, discussing the skills needed for entrepreneurial success, such as practical skills, time management, creativity, interpersonal skills, and risk-taking. The business model canvas is applied, detailing key partners, activities, resources, value propositions, customer relationships, segments, channels, cost structures, and revenue streams. The report provides a detailed SWOT analysis, a cost structure, and revenue streams, offering a thorough understanding of the venture's financial aspects. The report provides a business plan with product offerings, vision and mission statements, and business structure. Finally, it includes appendices with a feasibility analysis and a completed business model canvas to provide a comprehensive view of the startup venture.

Running head: ELECTRIC BIKES
Formulating a Business Plan for the Launch of Electric Bikes
Name of the student:
Name of the university:
Author note:

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Executive summary
Electric bikes are a booming business concept. The startup ventures find this an easy-to-go
option to make profits. This study serves a similar purpose. It does so in the context of a
proposed startup venture "Electric Bikes”. The study with the help of a business model canvas
and a business plan identifies the potential opportunities and challenges for the startup. This new
venture needs to be careful with the rising market competition. On the other hand, there are good
opportunities in people who are self-motivated to such bikes. The major success factor can be
how the owner of this venture manages to explore a wide array of entrepreneurial skills.

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Table of Contents
Introduction......................................................................................................................................3
Assumptions....................................................................................................................................3
Discussion........................................................................................................................................4
Skills needed to emerge a successful entrepreneur......................................................................4
Using a business model template.................................................................................................5
Justifying the elements in the business model.............................................................................6
Formulating a business plan......................................................................................................10
The business model, and sustainability and growth of the Electric Bikes.................................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14
Appendices....................................................................................................................................16
Appendix 1: Feasibility Analysis...............................................................................................16
Appendix 2: Business Model canvas.........................................................................................22

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Introduction
Startup ventures are good ways to address industry-based problems or utilize untouched
opportunities. However, not all startups become successful. There may be reasons for it;
however, much possibly this could be due to their incapability to run the startups efficiently.
What factors define efficiency should be clearly understood to entrepreneurs, so that, the
conversion rate for success is increased. This study is also on a similar topic as it discusses the
elements of a business plan to be used to facilitate and run the venture shortly (Barringer &
Ireland, 2019). The concept is a response to a growing demand for electric bikes. The importance
of electric bikes will be explained in places where it is suitable.
Assumptions
Assumptions will communicate the purpose behind this startup venture. On a broader
aspect, the assumption behind this innovative idea is that it is a good replacement to non-electric
bikes. Non-electric bikes are amongst the transport modes, which boost the CO2 content in the
air. The CO2 content in the air is on constant growth and the other hand, the political debates on
how to control this are also on a rise (Zehr, 2016). Such scenarios have created a situation where
entrepreneurs like the one who owns this proposed “Electric Bikes” to use their innovative
intelligence to bring something meaningful and refreshing to customers. The purpose of profit-
making is attached with all such ideas; however, in any way, such ideas are good to the
environment as well as to the society (Corner, Singh & Pavlovich, 2017).

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Discussion
This section discusses the actual idea using a business model canvass. Later on, it
formulates a business plan showing how related things will be managed. In the end, it gives
assumptions on how electric bikes can race to business sustainability.
Skills needed to emerge a successful entrepreneur
Entrepreneurs usually are highly excited for the innovative ideas, which they have
identified and developed using their skills and certain process to reach it. Very few of them do
possess the skills needed to manage a successful establishment of the venture and to run it
longer. However, those who have these rare qualities in them they only taste the success (Ratten,
2016). Studies on the entrepreneurship have identified a few necessary skills for an entrepreneur.
These are (Kraus, Ribeiro-Soriano & Schüssler, 2018):
 Practical skills
Being practical, entrepreneurs can deal with a situation by adopting a relevant strategy for it.
Practicality is required in devising an innovative idea, constructing a business plan and
effectively conducting the processes related to implementation. Practicality lets entrepreneurs
identify the needs and the necessities of a situation. It helps to understand the significance of
setting goals for a new venture. It helps to organize capabilities and generate business knowledge
required to run a venture.
 Time management

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While entrepreneurs need to possess the practical skills they should also be good in time
management skills. Entrepreneurs will be tested for time management skills in various related
situations such as priority planning, and explaining and executing the milestones identified for
the business growth.
 Creativity
Creativity is an inseparable element from an entrepreneur. Entrepreneurs must be good at being
creative. Creativity is needed to identify the most attractive business idea. It is also helpful in
identifying ways to manage problems and utilize resources to produce the best effect.
 Interpersonal skills
Entrepreneurs can never succeed with their innovative business plans unless they are good for
their peers also. The professional relationship with those who work for entrepreneurs is a must-
have skill for the entrepreneurs. By having a positive and trusted relationship with their peers, an
entrepreneur can drive their people in a problem situation and encourage them to work extra.
 Courage to take risks
There will be situations when taking calculated risks will become a necessity. A situation such as
criticism in public for a product-related issue will require entrepreneurs to take quick decisions to
ensure that there is no further damage done to the business and the society as well.
Using a business model template
The business model template or canvas helps to plot and identify activities to be
performed to start up a new venture. A business model canvas as proposed by (Weber & Jung,

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2015) has nine distinct elements. These are Key Partners, Key Activities, Key Resources, Value
Propositions, Customer Relationships, Customer Segments, Channels, Cost Structure and
Revenue Streams. These elements collectively show how different business activities will be
managed. This business model will be applied for sourcing materials, manufacturing electric
bikes and selling it to the target market.
Justifying the elements in the business model
In a business canvas model, there are nine distinct elements that a new business has to
follow to ensure that it does not miss on the basics. This section describes these nine distinct
elements concerning the new venture chosen for this study “Electric Bikes”. Hence;
1. Key Partners
Fundamentally, the new venture will need the suppliers for raw materials to be used in
manufacturing electric bikes. There is a need for careful observance of the supplies and demands
from the very first day of this venture. However, the moment it grooms and expands to more
other locations the supply and demand will become a major area of concern (Ghezzi & Cavallo,
2018). In case the business expands to more locations there will be the need for a robust structure
to avoid the supply shortage. Moreover, the efficiency of the business will be measured in terms
of how effectively it forecasts the demands and its suppliers’ capacity to supply the materials.
For an effective demand forecast “Market Research” should be a useful technique. Additionally,
the business should be able to establish and manage an effective relationship with suppliers
(Motoyama & Knowlton, 2017).
2. Key Activities

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Sourcing the supply of materials will be one of the parts of the key activities in its earlier days. In
addition to manufacturing, the venture will remain engaged in some other activities as well. This
includes advertisement and promotion for a new launch, engaging with consumers through social
media channels, ensuring press releases, sourcing materials from local suppliers and sending the
finished goods to the distributors. The final goods will reach to the market and the partner
distributors will take care of this. In the long-term, the venture will have its distribution channel
provided if it succeeds to achieve its business objectives (Law et al., 2015).
3. Key Resources
Under Physical resources, the business will require the machines and the technologies to be used
in making the electric bikes. The location has already been identified, which is near to Sydney
Olympic Park in Australia. Human resources will comprise of workers, technicians, finance
experts, IT experts, design and development team and the HR department. There are various
ways to avail the required Capital. Angel Investors is one of these ways. The likes of Google
and Yahoo were once funded by Angel Investors. They just require a small share of equity in the
proposed venture. The venture must not forget to register the “Angel Investors” and related
transactions with the Securities and Exchange Commission (SEC) (Zoogah, Peng & Woldu,
2015).
4. Value Propositions
The venture will create values for the target market in various ways. Customers will have access
to a more environment-friendly vehicle as compared to non-electric bikes. The cost of managing
these bikes will also be smaller than for non-electric bikes (Chandler & Lusch, 2015). Electric
bikes will be one step towards environment-friendly products. The CO2 content in the air should

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considerably decrease. If this could happen the global governance structure, the global political
parties, the private, public listed and not-for-profit companies and the common people will all
feel being relived a bit from the increasing air pollution (Scorer, 2019).
5. Customer Relationships
Customer relationship will hold the key significance in achieving the objectives of the venture.
The relationship can be made stronger by being able to meet the consumers’ demand for electric
bikes and the quality, which they are looking for. The entrepreneur will need to work upon the
designs, style and efficiency of the bike in terms of speed (Siegel & Wright, 2015).
6. Channels
The distribution channel in the early days will comprise of sourcing raw materials from
suppliers, the manufacture of electric bikes and the transport of bikes to the distributors.
However, the level of complexity in the distribution channel will grow with times and the level
of success to the business. Effective management of suppliers will essentially become a part of
its distribution channels in the long-term (Kanbach & Stubner, 2016).
7. Customer Segments
Segmenting customers based on geographic locations will include opening more stores in the
future near huge gathering places such as offices, malls and other public places. The
demography factors suggest that the list of customers will comprise of people falling into the
mature age groups. Psychographic suggests targeting those who are already the bikers.
Behavioral factors suggest that electric bikes will be more suitable for those who have concerns
about air pollution and want to contribute to the global process of reducing greenhouse gas
emissions (Kegel, 2016). Additionally, the target market will also comprise of Households,

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Corporate Executives, Cyclist Clubs, Sportsmen, Sportswomen and all that resides near the
Sydney Olympic Park.
8. Cost Structure
Activities Expenditure (AUD)
Business Registration 1200
Legal Expenses including Obtaining the
Permits and Licenses
5000
Marketing Promotion 4000
Insurance for Property Casualty, General
Liability and Workers’ Compensation
3600
Rent for the first 12 months 151000
Shop Modeling 29000
Other Start-up Cost 700
Utility and Phone Deposits 3600
Operational Cost for first 3 months 86000
The Cost for Start-up Inventory 332100
Store Equipment 20000
CCTVs Purchase and Installation 14000
Office Furniture and Gadgets 5800
Website Launch 850
Opening Party 10350
Miscellaneous 14700
Table 1: Expenditures

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(Source: created by author)
In total, the entire setup near the Sydney Olympic Park for the manufacture of Electric
Bikes will require AUD681,900.
9. Revenue Streams
Sales figure will be the only source of revenue in the early days of the venture. In days to come,
the revenue streams may include but not limited to “Offering Consulting Services” and “Running
Electric Bike Hire Shop”.
Formulating a business plan
 Product Offering: Electric bikes will be offered to the target market.
 Vision Statement: The vision is to become the leading provider of electric bikes.
 Mission Statement: The mission is to fulfill the consumers’ expectations of electric
bikes and emerge a socially responsible business by doing CSR activities.
 Business Structure: The facility will have highly skilled people in various job positions
such as Chief Executive Officer (Owner), Shop Manager, Accountants, sales Agents,
Technicians and Cleaners.
 SWOT analysis:
STRENGTHS  The location of the shop
 Excellent customer service
 High-quality electric bikes

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WEAKNESSES  Financial capability to compete against the major
players that can switch to this industry
OPPORTUNITIES  Growing demand for electric bikes to support the
movement towards greenhouse gas reduction
THREATS  The economic downturn can affect the buying
capacity of consumers
 The threat of new entrants
Table 2: SWOT of the New Venture
(Source: created by author)
 Market Analysis:
The rising disposable income, healthy lifestyle and climate change in the form of global
warming do support the manufacture of electric bikes (Gupta, 2019).
The target market will include Households, Corporate Executives, Cyclist Clubs,
Sportsmen, Sportswomen and people residing close to the Sydney Olympic Park.
The competitive advantage will be gain by offering best-in-quality electric bikes at the
most competitive pricing, providing better working conditions for employees and manufacturing
more electric bikes to support environmental sustainability.
Sales in three consecutive fiscal years are forecasted to be AUD221700, AUD516300 and
AUD1108600.
 Advertising Strategy:
Advertisements will be done using the community-based TV stations, newspapers and radio.
Word of mouth publicity from loyal customers will also be an option. Appropriate utilization of