Who loves exploring a new city or beach-side town with a bicycle tour guide? Everybody! But with the number of tour operators in the US growing by over 10% this year alone, getting noticed in a saturated market is becoming a challenge. So, to draw customers in and keep them, you’ll need a well-researched and thorough business blueprint.
However, drafting a solid business plan may be a bit daunting. There are many different sections to cover, from figuring out company morals to structuring management and understanding customer needs—not to mention all the financials.
But don’t be put off! The US bicycle trip market is anticipated to expand at a CAGR of 13.2% between 2022 and 2030. Therefore, this is the perfect time to compose a killer action plan and start a bicycle tour company.
So, what are the three crucial elements of a successful bicycle tour business plan? It’s time to find out.
Market analysis: Who doesn’t love a bit of research?
No iconic product or business was successful by accident, careful consideration is needed at every step, and market research is a must. Some factors that companies must consider are customer demographics, competition, market size, and growth rate.
Once you have collected all this information, you can analyze where your bicycle tour business fits within the industry, decide how viable the company is, and help analyze where your unique selling point (USP) will place you within the market.
Like Picasso said, “good artists copy, great artists steal,” so it’s wise to keep a close eye on what your local competitors are up to. If you see them trialing something, like offering a unique bicycle tour route or trying a new marketing strategy, it’s always helpful to see what works and then make it better!
Financial projections: It’s time to get your ducks in a row
Just like in the popular show Shark Tank, investors will run for the hills if you don’t have your financials in order. So, to get investors on board when starting a bicycle tour business, you need to know your numbers like the back of your hand.
To start, you should collate all your financial statements, and from here, you can begin to build a full overview of the business’s viability in the long term.
One of the main sections to build is the profit and loss statement, which should include items like:
- Total revenue
- Total expenditure
- Gross margin
- Earnings before tax
Business plans can vary in length and detail, with some statements demonstrating sales projections, investment opportunities, and break-even analysis. Collecting this information into an easy-to-read format will help businesses make accurate financial forecasts and encourage investors support.
A bit of financial help is always appreciated when expanding the fleet or upgrading to a more luxurious set of wheels!
Marketing strategies: The law of attraction
In today’s digital age, understanding and creating an effective marketing strategy can be tricky with vast distribution channels and methods. From content and social media to influencer and email marketing being only some of the top strategies—you need to use your target audience research to find out which technique and channels are best for your bicycle tour business.
Next up is looking at the size of your marketing budget and seeing what strategies will be most effective with your available finances. While a bank-busting initial campaign might be a tempting play, if it dosen’t stick and the budget has taken a big hit, that’s not good for future business. When it comes to marketing, you’re in for the long game, so you need to manage costs wisely.
One clever way to gain referrals and increase customer retention is through Fotaflo’s photo and video marketing platform. This works by taking photos and videos of happy customers on your bicycle tour and uploading them to the Fotaflo platform through our easy-to-use app. Then all you need to do is forward the private photo albums on to customers through secure links via text or email.
This way, customers can view their specific photos and videos from your website and share the linked posts on their social media channels, allowing new customers to view the exciting customer experience and book directly through the link.
Learn more about Fotaflo’s intelligent and effective photo and video platform and you’ll be pedaling toward success with a strong and strategic business model, in no time!