HOW TO START A BIKE RENTAL BUSINESS IN KENYA
The bike rental business is becoming a new trend in Kenya. Riding is a hobby for many people. Many bikers want to avoid the cost of buying one, hence opting to hire one.
The bicycle hiring business is a new trend in universities and along the coastal regions and especially the beach.
Starting a bike rental business is a profitable venture. You can also train people how to ride a bike at a fee.
While other university students keep pressuring their parents with rent, school fees and pocket money, some students from different campuses have recently started up a bicycle hiring business to help raise their personal upkeep money and school fees.
Arry Ochieng’- Moi University, Collins Oduor- Moi University, Ian Ogenga- JKUAT and Kevin Ochieng Kisumu Polytechnic who have been friends since their primary school days used their personal savings to raise the business capital that was around Sh.130,000 which was used to purchase the first 13 bicycle each going for Sh.10,000.
Their target market being Maseno University students, the quartet is receiving customers both from the University and the neighboring community where apparently they all grew up in.
Just like any other business, the bike business has its peak season and the low season.
“As much as we spent a lot to start the business I feel it’s catching up and the returns are so good. Unlike the weekends where we get around Sh.6,000 daily income, weekdays are a bit tricky because the students are busy with classes but we still make around Sh.2,000 to Sh.3,000,” said Arry.
The bikes that go for Sh.2 per minute are hired by students for various reasons. Some to just have fun riding, some for exercise purposes while some get the bicycles in order to rush to classes.
In this article, we are going to show you how to start a bike rental business in Kenya.
*Write Bike Rental Business Plan*
Before starting a bike rental business in Kenya, it is important that you first write a business plan. A business plan helps you plan ahead and prepare before launching your business.
Some of the things you need to capture in your bicycle rental business plan include:
*Startup costs
*Business location
*Competitor analysis of other bike rental companies
*Where to source bicycles at lower prices
*Bicycle prices in Kenya
…And much more.
*Identify a Good Location for a Bike Rental Business*
The bike rental business thrives well in areas with a young population. Some of the best places to start the bike rental business include near universities, colleges and near recreational areas like beaches.
You can also start one in public places like near hotels or social places like gardens where people come to take a rest.
*Cost of Starting a Bicycle Hiring Business in Kenya*
The cost of starting a bike hiring business depends on the number of bikes you wish to start with. Bikes are not expensive to buy and maintain.
A good mountain bike goes for around Ksh.15,000. You can start with two bicycles and buy more as the demand increases. This means you can start with two bike for Ksh.30,000.
You may want also to budget for the cost of maintaining the bikes. Bike repairs are very cheap and it would cost you less than Ksh.2,000 for each bike a month.
*Is Bike Rental Business Profitable in Kenya?*
The bike rental business is fairly a new business and its market is not saturated. It means when you start the business, you won’t face much competition. It means that you can set prices depending on the demand for bike services.
On average, it costs Ksh.100 to rent a bike per hour. If you have two bikes and each gets hired for 5 hours in a day, you will have made Ksh.1,000. It is a good business that you can combine with other businesses.
You can also offer other services like training services at a fee. This will help you boost your revenues and get more customers.
*Challenges in the Bike Rental Business*
The bike rental business is a lucrative venture, but it also has its challenges. Some of the challenges include the risk of losing your bikes to thieves. You need to come up with measures to mitigate such risks.
One of the ways to avoid such risks is to ensure that those who come to rent your bikes present an ID card. Cross-check that the person renting the bike is the person on the ID. Retain the ID card while they ride and return it to them when they return your bicycle.
*Finally*
The bike rental business is a great way to make an extra income if you have a bike you are not using. You can also team up with a friend to launch a large bike rental business.
To generate significant revenues from this business, you need to have a good number of bikes and mainly target the young population in densely populated areas.
As we always tell you, there’s no marathon race that has ever been won by those who did not start the race.
If you like the idea discussed above and you have what it takes to actualize it… then don’t wait to start… just do it.
Also, don`t forget to join our training on Growing Your Business.
We have created a WhatsApp group called *GROWING YOUR BUSINESS* Training Group.
In this training group, we will teach you various amazing strategies you can apply in your business to break through the ceiling, double or triple your sales and grow your business.
Unless you are comfortable with the current size of your business and don’t plan to grow it any further, you will love this training!
If your business is in a situation where you need to increase your sales and grow your business, this training is for you.
By
Timothy Angwenyi
Business Consultant
Justine Nyachieo
Business Man & Mentor
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