How to Start a Bike Shop: Tutorial & Average Costs (2025)

Some biking enthusiasts find it a peaceful activity; others want the adrenaline rush of scaling mountains on their favorite bike. But they all have one thing in common: Cyclists are willing to spend money on their favorite hobby.

Global bike sales are expected to exceed $70 billion by 2029. With a passion for cycling and some business know-how, you can open your bike shop to capitalize on this expenditure.

Bike shops are unique in the sense that you don’t just have to rely on product sales to turn a profit. From maintenance services to group riding experiences, there are multiple business models to monetize an interest in cycling. 

This guide shares how to lay the groundwork for a successful bike store, with common hurdles and pitfalls to avoid along the way.

How to start a bike shop

1. Define your cycling niche
2. Establish legal framework
3. Acquire necessary credentials
4. Secure retail space
5. Craft your bike shop experience
6. Choose a point of sale system
7. Curate your inventory
8. Develop your bike service counter
9. Build your dream team
10. Promote your bike shop
11. Launch your bike store

1. Define your cycling niche

As the saying goes, “The riches are in the niches.” The same is true for bike stores. If you can determine one specialty focus, you’ll become known for that type of product—whether that’s mountain, road, commuter, electric, or full-service bikes. 

Here’s how to find the right niche for your bike store:

• Analyze the local cycling community. Are you in a suburban area with families who buy bicycles for their children? Are you near a bike trail that mountain bikers need specialized equipment for? Both of these guide you toward a niche.
• Research industry trends. Use free tools like Google Trends to identify which products customers are interested in. For example, Google Trends shows that searches for “electric bikes” have steadily increased over the last decade. 
• Analyze price points. Customers in some locations will be willing to pay more than others. Take a look at the local demographic and any other bike shops within a close radius to your desired spot. It’ll be easier to sell premium bikes in a populous area with low competition.

Ryan Zagata, founder of Brooklyn Bicycle Co., says: “There's always someone who could put a better pedal on a bike or a better handlebar or better grip or a better saddle, from a “we make the best” perspective, that's also a little bit of a fleeting thing to keep trying to one-up the next company.”

“For me, the way I have always been taught to compete is by being different,” Ryan continues. “That's something that nobody can replicate.”

2. Establish legal framework

Registering your business entity, whether an LLC or S-Corp, divides you and your bicycle shop into two distinct legal entities. This can protect your assets in case of a lawsuit, injury, or dispute. 

Once you’ve registered your cycling business, you can open business bank accounts that keep your bike shop’s income and expenses separate from your personal assets to make tax season easier. 

Establish how you’ll fund the cycling business in the beginning, whether that’s:

• Personal savings
• Loans from friends and family
• Bank loans
• Business credit cards
• Government grants 

Finally, consider business insurance as an extra layer of protection. Insureon estimates that general liability insurance costs around $42 per month, a small price to pay for legal assistance in case of property damage or lawsuits. 

3. Acquire necessary credentials

All businesses are legally required to pay tax on their profit. Work with an accountant to keep track of your income, expenditure, and file tax returns for the business and yourself. 

Some cycling businesses are also subject to sales tax on eligible products, which ranges between 2.9% and 7.25% of each transaction. Check with an accountant to confirm your sales tax liabilities, then register for a seller’s permit and use Shopify Tax to collect, report, and file taxes from your Shopify admin if required.

You might also need a retail or business license to prove you comply with local regulations. Again, requirements vary dramatically by state—check with your local authority to determine which licenses you’ll need to open your bike shop. 

Now’s also a great time to join industry associations, whether that’s your local Chamber of Commerce or the League of American Bicyclists. You’ll get the chance to build credibility, network with suppliers, and meet potential customers in the local area.

4. Secure retail space

Arguably, the most important factor in opening a bike shop is choosing the right location. But there’s a fine line: prime spots come with higher lease costs, inflating your retail operating costs and requiring more sales to break even. 

Here’s a quick cheatsheet of things to consider when scouting retail locations:

• Visibility. Is the store in a busy area with lots of passing traffic? Visible stores can convince customers to visit, even if they had no intention of doing so when they initially passed by.
• Accessibility. Can customers wheel their bikes into the store? Shoppers will have a hard time wheeling their new purchase out if you choose a mall that prohibits bicycles, for example. 
• Proximity to cycling routes. Are biking trails nearby for customers to take their new bike for a test drive? If you’re in a tourist location, close proximity to cycling routes can make your store first-in-mind for bike rentals.
• Store size. Is the store big enough to display bicycles on the shop floor, repair bikes in a workshop, and store rental bikes that are not in use? Bike shops tend to be large after considering all these areas, yet the average square foot of retail space costs $21.85. You can cut your size requirements down with an endless aisle or showrooming strategy.

5. Craft your bike shop experience

Customers are no longer using retail stores to buy products. Modern shoppers crave experiences, and they’re willing to spend more with brands that cater to those expectations.

Design an intuitive bicycle store layout that guides customers through your inventory. The diagonal layout works well since bikes tend to be larger products. Arranging them side by side in aisles, with the checkout desk on the right-hand side of the store entrance, lets you showcase your bestsellers at the front to draw customers in. 

You could also create distinct zones for different cycling disciplines (electric, mountain, hybrid, etc.) and repair services. Use retail signage to highlight these zones so they’re easy for customers to locate. 

6. Choose a point of sale system

A point of sale (POS) system is the command center of your new bike shop. More than just a piece of kit to process customer orders, the best small business POS systems can:

• Track inventory in real time.
• Create customer profiles to store data.
• Process different payment methods (e.g., card, digital wallets, store credit, and loyalty points.)
• Integrate with appointment booking apps like Meety or Cowlender, and repair and rental scheduling tools such as IzyRent. 
• Send automated marketing campaigns that offer technical reference resources to customers after their bike purchase.
• Generate advanced reports.

Shopify is unique because it’s the only platform to build POS and ecommerce natively on the same platform. If you’re operating an ecommerce website to run parallel to your retail store, this means one source of truth for your customer, inventory, and order data. 

A leading independent research firm found the unified commerce approach offered by Shopify POS can reduce total cost of ownership by up to 22%. Retailers experience an average of 8.9% GMV uplift as a result of using Shopify POS. 

Tokyobike is just one bike store benefitting from unified commerce. Using Shopify POS, retail associates can view real-time inventory data across all retail stores. They can also place ship-to-home orders for bikes that are too big to take home during their shopping visit. 

Plus, customers can visit Tokyobike’s ecommerce website to view inventory levels at their nearest location. The bike shop has since doubled online sales for in-store pickup orders, with much faster sales cycles—down from 30 days to just under one week. 

7. Curate your inventory

Inventory gives you something to sell in your bike shop. Revisit the first step in this process—defining your niche—to stock diverse options that reflect your target market. If you specialize in electric bikes, for example, choose products with a range of price points to cater to all. 

There are different approaches to exactly how you’ll acquire your inventory. Perhaps you buy direct from bike manufacturers or work with part distributors to assemble bicycles yourself. Either way, build strong relationships with your vendors to mitigate any challenges that impact supply. 

💡Tip: Use the Preorder Wolf app for Shopify POS to analyze how popular a new bike might be before investing in it. Cashiers in the store can take payment for a customer’s order upfront and fulfill it when inventory arrives from the supplier. 

8. Develop your own service center

Bike servicing can become a lucrative way to generate revenue through your retail store. Whether customers bought their bike through you or a competitor, give them the opportunity to visit your store to have their bike maintained or serviced for an additional fee.

Create tiered service packages from basic tune-ups to comprehensive overhauls. You can upsell premium services to increase your customer lifetime value. 

Your bike service center should have professional-grade tools and diagnostic equipment. This can be pricey—explore equipment leasing or renting instead of buying it outright if you’re opening your store on a budget.

As for the logistics of managing bike services, ditch manual spreadsheets in favor of appointment scheduling tools built into your POS system. It offers customers greater flexibility to book, change, or cancel appointments without speaking with your team.

“On top of handling our product sales and managing inventory, Shopify POS is really the workhorse of our service center,” says Mandalyn Renicker, owner of Offbeat Bikes. “We offer customers ongoing service and repairs, so that was really important. We create draft orders as custom orders through Shopify POS to invoice these customers and keep our records organized.”

9. Build your dream team

The success of any retail store depends on the customer experience. The challenge is: it can be difficult to serve multiple customers while also juggling the backend tasks that keep your bike shop functioning. 

Consider building out a retail team to handle basic tasks in your store, such as:

• Offering customer service
• Ringing up orders at checkout
• Conducting inventory counts 
• Designing window displays 
• Servicing bikes or making repairs 

Hire passionate cyclists with mechanical aptitude and people skills. The bicycle industry requires technical knowledge about products, accessories, and repairs. It’s quicker and easier to hire someone with at least some background experience, even if that’s just cycling as a hobby. 

That said, don’t neglect ongoing employee training. Your bikes will require unique product knowledge and technical expertise. Staff also need sales training, education on policies and procedures, and tutorials on how to operate your POS system.

10. Promote your bike shop

Get people excited about the upcoming opening of your bike shop with a retail marketing campaign. People will be eagerly anticipating the big day, with some new retailers forming lines that wrap around their store just from teasing the launch online.

Effective ways to promote a new bike shop includ the followinge:

• Launching a mobile-friendly website with your unique value proposition. (Shopify does this on the same platform that powers your store’s POS.)
• Developing content strategy across social platforms to engage the cycling community, whether that’s sneak peeks inside your store or product demonstrations of the bikes you sell. 
• Writing to local journalists with news of the upcoming launch. Make your story unique and tie in the benefits to the local community to increase the chances of coverage. 

11. Launch your bike store

The big day has arrived—it’s time to open your bike shop’s doors to the public! Organize a grand opening celebration with incentives that drive new customers to your retail store. That could include:

• Discounts on a customer’s first purchase.
• Product demonstrations to show your bike’s features.
• Launching an exclusive bike that’s only available in-store for a limited time. 
• Partnerships with local businesses—like a 10% discount on a nearby "pay-to-ride" trail when they buy a bike from your store, for example. 
• Inviting influencers to attend the opening with the aim of them sharing your store with their followers.

💡Tip: If the thought of a grand opening scares you, consider a soft launch. Invite family and friends, local journalists, or loyal online customers to visit the store. You’ll get a trial run to make sure everything’s running smoothly before its official opening. 

Considerations for starting a bike shop

Financial planning

Bikes are big investments. Even if you’re acquiring inventory from suppliers at a wholesale price, you’ll likely need upfront cash to start a bike shop—and that’s before you consider any additional expenses, such as filing fees, taxes, and rent. 

A retail business plan outlines the roadmap of your bike store to anticipate how much money you might need. If this is bigger than what you have, consider securing funding. Bank loans, investments from friends and family, and government grants are popular options for new entrepreneurs. 

Service assortment

Selling bikes isn’t the only way to generate sales through your bike store. Offer services and paid experiences that increase customer lifetime value, such as:

• Expedited delivery 
• Bike rentals 
• Maintenance subscription services 
• Cycling classes and workshops
• Custom bike builds and fitting 
• Off-season bike storage 

Community involvement

The local community is a driving force for any retail business—cycle shops included. Get them involved with regular events such as maintenance clinics, group rides, and demo days. This can make your store top of mind for anyone in the local area looking for the products or services you offer. 

The Bike Project is a great example of how to get the community involved in your cycling business. Founder Jem Stein takes secondhand bikes, restoring them and reselling them—while also donating bikes to refugees.

“People feel if they donate their bike to us or a bike's donated to us, they'd like to see it go to a refugee, and so we kind of have to explain to them that by selling it, we'll be able to fund three bikes for refugees,” Jem says.

Start your bike shop with Shopify

With a passion for cycling and an entrepreneurial spirit, it’s possible to open a profitable bicycle shop. Success lies in choosing the right niche, picking the right retail location, and expanding on product sales with premium services—bike repairs, maintenance, or experience days. 

Shopify is here to help every step of the way. Acting as a full stack command center for your bike store, you can manage inventory, orders, and customer data no matter where you sell.