How to start a bicycle shop

Number of bicycle shops in the Netherlands (2020-2024) 

Since 2022, the number of bike shops is slowly going down.

Source: KVK Business Register

Legislation

As a seller of bicycles, you need to know the law. Make sure you are aware of the requirements for a bicycle. For instance, the bikes you sell must have working brakes, lights, and reflectors. And an electric bike must support when pedalling, but must not move forward completely on its own. The motor must have a maximum power of 250 watts. If you sell electric bikes, you are also required to take batteries and have them recycled in a sustainable way.

Fatbikes

Fatbikes have been very popular in recent years. You are not allowed to sell these just like that. These faster bikes need type approval. For use on public roads, they cannot go faster than 25 km/hour. The Environmental and Transport Inspectorate ILT checks this and can impose fines if you sell fatbikes that do not comply with the rules.

Training

To make or sell bikes, you do not need to be trained. Nevertheless, this is wise. That way, you will learn all about repairs or servicing. And if you can show a diploma, it increases your customers' confidence. You can train as a bicycle mechanic or bicycle technician at various intermediate vocational schools.

Your city and your premises

Funda in Business, business brokers or the business desk in your place of residence will help you to get an idea of the features of retail premises and local rents.

Some questions to consider:

• What is the composition (for example: age, income, type of bicycle user) of the neighbourhood where your shop is based?
• Are you establishing yourself in the vicinity of DIY stores or garden centres that sell bicycles on the side?
• Or are you focused more on repairs and are you opting for a small shop in the city centre?
• Are you easily accessible to your target audience,
• or do you intend to repair bicycles from home?

Tip: Use the KVK Locatiescan (in Dutch) or the KVK Company Counter and explore the market potential of your future location. What about the competition, and what are the demographic features? 

The rent of retail premises is arranged by law. You usually rent a retail premises for a period of 5 years. During the first rental period, you can agree to rent the space for 2 years or less. If you decide to stay on after 2 years, the lease is automatically converted into a 5-year lease. 

Your location and municipal regulations

The environmental plan of your municipality describes the purpose(s) of buildings or specific geographic areas (for example, residential purposes or as an industrial area). You can contact your local council to get information about your retail property. For example:

• requirements for the size of advertising signs
• are consumer sales allowed
• is it allowed to display bicycles outside your shop 

Staff

Your shop may be open 6 or 7 days a week. Besides selling and reparing bicycles, you also take care of bookkeeping and purchasing. There is every reason to assume that you cannot do all this alone, so this is a good time to think about the commitment and implications of having staff. 

Taking over a bicycle shop

KVK’s Business Register contains nearly 2,770 bicycle shops. Several proprietors of these shops may be toying with the idea of selling their business, either because they have reached the retirement age or for other reasons. Have you ever considered taking over a bicycle shop?

Entrepreneurs who take over a business often turn out to be more successful than businesses starting from scratch, since the company already has customers, brand awareness, and a reputation. Other benefits of business acquisition include:

• Existing companies will often find it easier to obtain financing than startups.
• You can take over the business gradually, in a series of steps: by working together temporarily or by paying the purchase amount in instalments.
• Some practical arrangements have already been made, including the shop layout and design, dealerships, or permits.

Before contacting a seller, it is recommended that you learn about the business acquisition process. Bicycle shops are offered for takeover in a number of different ways: Actively or passively through databases, industry associations, auditors, or takeover specialists. 

Practical matters

Apart from all the above, starting entrepreneurs will also have to deal with the following:

• a business plan
• taxes
• insurance
• administrative records
• a business name
• registering with KVK