Forget food trucks. When you want a business idea with low startup costs, even lower rent, and tons of flexibility, start a business on bikes! Pedal-powered vending has long been popular with purveyors of coffee, ice cream, and hot dogs. Live in an area with a lot of tourism? A pedicab business could be your route to riches.
As the demand for home delivery grows, new types of bicycle-based businesses are cropping up. Food and grocery delivery, florists, farm stands, artisans, and more are launching businesses on two wheels. In urban areas, your house cleaner, dog walker, or handyman may even arrive by branded cargo bike rather than contend with traffic and parking.
Businesses on bikes are much simpler to start than a brick-and-mortar business. However, that doesn’t mean you can hop on a bike and start selling your wares right away. Use this guide to learn what’s really involved in starting a business on bikes.
Choose a Cargo Bike
Your bike is what keeps your business running day-to-day, so don’t make this decision lightly. The best cargo bike for a bike-based enterprise depends on the type of business. Do you need cold storage for food and drinks, the maximum hauling capacity, or seating for passengers?
You can also find bikes specially designed for mobile vending. Companies like Worksman Cycles, Ferla, and Icicle Tricycles design specialized vending bikes equipped with everything you need to start an ice cream, popsicle, or cold brew coffee business.
E-assist makes heavy loads and long treks easier. When choosing an e-cargo bike, pay attention to battery size, handling, and torque as well as motor class. If you plan to haul heavy loads, you’ll most likely want a Class 2 motor.
Learn the Laws and Secure Permits
Nearly every municipality regulates street vending. Contact your local Health Department to learn the laws regulating food preparation, storage, hygiene, and other aspects of street vending.
New businesses also need to secure business licenses, tax permits, and insurance. It may behoove you to form an LLC depending on your tax status and specific business goals. For instance, an LLC protects your personal assets in the event your business ever gets into trouble. You need to walk through state legal requirements to register, though, or you can hire a service to guide you to quick registration. Spend some time online looking up cheap LLC formation services that can help you get all of your paperwork filed easily and correctly. Do you plan on hiring employees? If so, that’s another set of rules you’ll need to learn.
Organize Your Back Office
Pedaling around town on two wheels doesn’t leave much time for back-office functions. While solopreneurs can get away with letting certain tasks slide, that doesn’t fly when you have employees relying on you for a paycheck.
Instead of delaying back-office tasks until you’re back at the “office” (wherever that may be), get tools that let you manage your business from anywhere. Need to schedule your team, track hours and mileage, or clock employees in and out? You can keep an eye on employee timesheets from your phone with mobile time tracking. You can even sync with your payroll software to run payroll automatically. Back office, begone.
Define Your Marketing Strategy
Marketing a business on bikes requires a hyper-local strategy. However, that doesn’t mean everyone in your city is your target audience. Define your ideal customer then build an authentic brand that speaks to that customer. One way to brand your business quickly and easily is to design and promote your own unique logo in both digital and print formats. This is simple and straightforward using a free logo design making tool. In a handful of steps you’ll be ready to synchronize your message across all social media and other online platforms.
Beyond branding, every mobile business needs a web presence where customers can find their location schedule, book appointments, and learn more about your business. Keep your website simple with an informative landing page and focus most of your marketing efforts on social media. Not only is social media a great (and low-cost) way for brands to build personal connections, it also has granular targeting abilities that let you advertise to a hyperlocal audience.
Have Fun!
Whether your business is bicycle-based or brick-and-mortar, it’s important to approach it like a real business. However, that doesn’t mean you can’t have fun! Stay true to your vision and keep an eye on profits and before long, you’ll have a thriving business on bike!
Has it been a while since you’ve ridden a bike? Want to get back into the swing of things? At Austin Bike Tours and Rentals, you can rent a bike and then book a tour! Get in touch by calling (512) 277-0609 to learn more about what we offer.