A bicycle advertising business is a business that basically advertises for businesses and individuals using their bicycle as a medium. Bicycle advertising is part of the mobile advertising industry. Interestingly, bicycle advertising is suitable for any type of product and service, and it comes with a few OOH advertising instruments that can provide: efficiency, cost-effectiveness, precise targeting, and eco-friendliness.

Available data shows that the United States is, by far, the largest advertising market in the world. The North American advertising market reached a value of US$ 240 Billion in 2020 and in 2022, more than 285 billion U.S. dollars was spent on advertising in the United States. The market size of the Advertising Agencies industry in the US has grown 2.7% per year on average between 2017 and 2022.

Steps on How to Start a Bicycle Advertising Business

  1. Conduct Market Research

If you are considering starting a bicycle advertising business, you would need reliable market research to be able to maximize profits from the business. The first step in the market research process for your bicycle advertising business should be to develop market-based research questions in line with your overall business goal and objective.

In this regard, you should source information that will help you maximize your business, information that will give you reliable information of what your potential market will be looking out for from a bicycle advertising business, and also help you operate your bicycle advertising business with less stress and of course, build the business to profitability.

a. Who is the Target Market for a Bicycle Advertising Business?
  • Corporate organizations
  • Government agencies
  • Nonprofits and Charity organizations
  • E-commerce businesses
  • Automobile importers and exporters
  • Small business owners and entrepreneurs
  • Fast food restaurants.
b. Is Bicycle Advertising Business a Profitable Business?

Yes, the bicycle advertising business is profitable. Available data show that the profit margins on bicycle advertising can range between 10 and 12 percent.

c. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to the bicycle advertising line of business because the bicycle advertising business is a niche in the advertising services industry.

d. Who are the Major Competitors?
  • RocketBike Digital Agency
  • Bike Ads
  • City Bike Ads
  • White Bicycle
  • Tall Bike Advertising
  • Flying Bicycle Creative
  • LifeCycle Digital Marketing
  • Love Advertising
  • Versa Creative
  • VIP Outdoor Media
  • The Advertising Bike Company Ltd.
  • The Cycle Mart
  • Nextbike
  • Full Cycle Marketing
  • Echo-Factory, Inc.
  • Seed Factory Marketing
  • LiFT Creative Studios
  • Hiebing
  • Civitas Marketing
  • AdQuick
  • AdBikes
  • SHIFT Active Media.
e. Are There County or State Regulations or Zoning Laws for Bicycle Advertising Business?

No, there are no county or state regulations or zoning laws for the bicycle advertising business, but players in this industry are expected to work with the existing regulations governing similar businesses in the county where their business is domiciled.

f. Is There a Franchise for Bicycle Advertising Business?

Yes, there are franchise opportunities for the bicycle advertising business, and here are some of them;

  • The Advertising Bike Company Ltd.
  • The Cycle Mart
  • Nextbike
g. What Do You Need to Start a Bicycle advertising business?
  • A Feasibility Report
  • Business and Marketing Plans
  • Business Licenses and Permits
  • Different Types of Bicycles
  • Insurance
  • EIN (Employer Identification Number) / Federal Tax ID Number.
  • A Corporate Bank Account
  • Employees
  • Operational Capital (For Ongoing Expenses)
  1. Choose a Memorable Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.
Some of the catchy business name ideas suitable for a bicycle advertising business are;

Creative Bicycle Advertising Business Name ideas
  • Timo Turner© Bicycle Advertising Company, Inc.
  • Packer® Bicycle Advertising Company, LLC
  • Advertiser Master© Bicycle Advertising Company, Inc.
  • Advert Solutions® Bicycle Advertising Company, Inc.
  • Advert King™ Outdoor Advertising Company, Inc.
  • Red Bikes™ Bicycle Advertising Company, LLC.
  • Jades Advertising© Bicycle Advertising Company, LLC
  • Jolly Next® Bicycle Advertising Company, Inc.
  • Sean Mason© Bicycle Advertising Company, Inc.
  • Chris Onel© Bicycle Advertising Company, Inc.
  • Brand IT® Bicycle Advertising Company, LLC
  • Vegas King® Bicycle Advertising Company, LLC
  • King George™ Bicycle Advertising Company, LLC
  • Rowland Branding© Bicycle Advertising Company, Inc.
  • Saints Media® Bicycle Advertising Company, Inc.
  • Justin Martins™ Bicycle advertising Company, Inc.
  • Link Branding™ Bicycle Advertising Company, Inc.
  • Herald Bikers© Bicycle Advertising Company, Inc.
  • Benard Israel® Bicycle Advertising Company, LLC
  • Half Milers™ Bicycle Advertising Company, Inc.
  1. Register Your Business

a. What Type of Business Structure is Best for Bicycle Advertising Business?

When it comes to the business structure of a bicycle advertising business, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits. Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below.

b. Steps to Form an LLC
  • Choose a Name for Your LLC.
  • File Articles of Organization.
  • Choose a registered agent.
  • Decide on member vs. manager management.
  • Create an LLC operating agreement.
  • Comply with other tax and regulatory requirements.
  • File annual reports.
c. What Type of License is Needed to Open a Bicycle Advertising Business?
  • General Business License
  • Zonal Permits
  • Signage Permit
  • Operational State Facility Inspections for your parking
d. What Type of Certification is Needed to start a Bicycle Advertising Business?

You don’t need any certifications to start a bicycle advertising business.

e. What Documents are Needed to Open a Bicycle Advertising Business?
  • DBA
  • EIN
  • Business and liability insurance
  • Federal Tax Payer’s ID
  • State Permit and Building Approval (For your parking)
  • Certificate of Incorporation
  • Business License
  • Business Plan
  • Employment Agreement (offer letters)
  • Operating Agreement for LLCs
  • Insurance Policy
  • Online Terms of Use
  • Online Privacy Policy Document
  • Contract Document
  • Company Bylaws
  • Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?

If you are considering starting a bicycle advertising business, usually you may not have any need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

  1. Cost Analysis and Budgeting

a. How Much Does It Cost to Start a Bicycle Advertising Business?

The startup cost for a bicycle advertising business is not uniform. But basically, a bicycle advertising business will cost from $5,000 – $80,000 to start and that can easily go higher depending on your overall business goals and objectives.

b. What are the Costs Involved in Starting a Bicycle Advertising Business?
  • The total fee for registering a business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services total – $1,200.
  • Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $80.
  • Insurance (general liability, workers’ compensation, and property-casualty) coverage at a total premium – $2,400.
  • The cost of logistics software, accounting software, CRM software, and Payroll Software – $1,500
  • The cost for leasing a facility (long-term lease agreement) – $25,600.
  • The cost for facility remodeling and installations – $5,000.
  • The cost for the purchase of bicycles: $15,000
  • Other start-up expenses including stationery – $500
  • Phone and utility deposits will cost – ($2,500)
  • The cost for store equipment (cash register, security, ventilation, signage) – $3,150
  • The cost for the purchase of office furniture and gadgets – $8,000.
  • The cost of launching an official website – $850
  • Miscellaneous – $2,500
c. What Factors Determine the Cost of Opening a Bicycle Advertising Business?
  • The size of the bicycle advertising business (number of bicycles to start the business with)
  • The choice of location
  • The required licenses and permits
  • The cost for branding, promotion, and marketing of the bicycle advertising business
  • The cost of furnishing and equipping the facility
  • The cost of the insurance policy covers
  • The cost of registering the business
  • Cost of recruiting and training your staff
  • The cost for the purchase and customizing of uniforms
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

The truth is that it is not compulsory to build a new facility for your bicycle advertising business, but if you have the required finance, it will pay you to build a parking facility and administrative office.

e. What are the Ongoing Expenses of a Bicycle Advertising Business?
  • Lubricants
  • Toll fees
  • Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
  • Salaries of employees
  • Bicycles maintenance
  • Insurance
  • Marketing costs
f. What is the Average Salary of your Staff?
  • Chief Operating Officer (Owner) – $48,000 Per Year
  • Admin and HR Manager – $35,000 Per Year
  • Accountant $33,000 Per Year
  • Cyclists – $30,800 Per Year
  • Customer Service Officer (Receptionist) – $26,100 Per Year
g. How Do You Get Funding to Start a Bicycle Advertising Business?
  • Raising money from personal savings and sale of personal stocks and properties
  • Raising money from investors and business partners
  • Sell shares to interested investors
  • Applying for a loan from your bank/banks
  • Source for soft loans from your family members and friends.
  1. Write a Business Plan

a. Executive Summary

Red Bikes™ Bicycle Advertising Company, LLC. is a registered and licensed bicycle advertising company that will be based in East Rutherford, New Jersey. We will offer a diverse selection of bicycle advertising options for clients and businesses across East Rutherford and throughout major cities in the United States where we intend to establish our business presence.

b. Products and Service
  • Advertising services
  • Creative services
  • Public relations services
  • Media planning, buying & representation
  • Creating advertising campaigns
  • Disseminating advertising campaigns through bicycles.
c. Mission Statement

Our mission is to build a business that is notable for excellent advertising services. We aim to stand out from the pack and serve as a leader in the bicycle advertising business while carrying out our business in a very time and cost-effective way.

Vision Statement

Our vision is to build a reputation for being one of the fastest and most efficient bicycle advertising agencies in the United States.

d. Goals and Objectives

The goals and objectives of a bicycle advertising business are to provide cost-effective bike advertising for the precise target market.

e. Organizational Structure
  • Chief Operating Officer (Owner)
  • Admin and HR Manager
  • Accountant
  • Cyclists
  • Customer Service Officer (Receptionist)

Marketing Plan

a. SWOT Analysis
Strength:
  • Excellent operational history
  • Attention to detail.
  • Experience and trained professionals.
  • Excellent customer testimonials.
  • Timely, reliable, and efficient bicycles and service.
Weakness:
  • Not enough existing clientele to run at full capacity immediately
  • The owner is new to large-scale marketing
  • Lack of economies of scale.
Opportunities:
  • Build upon existing clientele
  • Online market, new services, new technology, and of course the opening of new markets.
  • Support from eco-friendly advocates (Bike advertising appeals to eco-minded customers because it is energy-efficient).
Threat:
  • Loans diminish profitability until they are paid off
  • The first year will be financially tight while we gain customers and pay off loans
  • Competition in the area could increase
  • Management of employees requires time, money, and efforts
  • The regulatory authority could change their regulatory status and decide to enforce strict regulations that can strangulate new businesses.
b. How Do Bicycle Advertising Companies Make Money?

Bicycle advertising companies make money by charging clients for services such as;

  • Advertising services
  • Creative services
  • Public relations services
  • Media planning, buying & representation
  • Creating advertising campaigns
  • Disseminating advertising campaigns through bicycles.
c. Payment Options
  • Payment with cash
  • Payment via credit cards
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
d. Sales & Advertising Strategies
  • Introduce your bicycle advertising business by sending introductory letters alongside our brochure to corporate organizations, small businesses, and key stakeholders in and around your city and state
  • Print out fliers and business cards and strategically drop them in offices, libraries, public facilities, train stations et al.
  • Use friends and family to spread the word about your business
  • Post information about your company and the services you offer on bulletin boards in places like schools, libraries, and local coffee shops et al
  • Place a small or classified advertisement in the newspaper, or local publication about your company and the services you offer
  • Leverage on referral networks such as agencies that will attract clients who would need your customized services
  • Advertise your business in relevant magazines, newspapers, TV, and radio stations.
  • Attend relevant expos, seminars, and business fairs et al to market your services
  • Engage in a direct marketing approach
  • Encourage the use of word-of-mouth marketing from loyal and satisfied customers
  • Join local chambers of commerce and industry to market your services.

Financial Projection

a. How Much Should You Charge for your Service?

The exact cost will typically depend on the number of ads you’d like to produce, and the duration of the cycle.

b. How Much Profit Do Bicycle Advertising Business Owners Make a Year?

It depends, but the available report shows that on average, a bicycle advertising business owner should net more than $65,000 per year assuming they have a steady clientele.

c. What Factors Determine the Amount of Profit to Be Made?
  • The capacity of the bicycle advertising business (number of bicycles owned)
  • The location the bicycle advertising business is covering
  • The management style of the bicycle advertising business
  • The business approach of the bicycle advertising business
  • The advertising and marketing strategies adopted by the bicycle advertising business.
  • The number of years the bicycle advertising business is in business
d. What is the Profit Margin of a Bicycle Advertising Business Product/Service?

The profit margin of a bicycle advertising business is not fixed. It could range from 10 percent to 15 percent.

e. What is the Sales Forecast?

Below is the sales forecast for a Bicycle advertising business. It is based on the location of the business and other factors as it relates to such startups in the United States;

  • First Fiscal Year: $240,000
  • Second Fiscal Year: $380,000
  • Third Fiscal Year: $470,000
  1. Set Up your Office

a. How Do You Choose a Perfect Location for Bicycle Advertising Business?
  • The demography of the location especially as it relates to small businesses
  • The demand for services offered by bicycle advertising companies in the location
  • The purchasing power of businesses in the location
  • Accessibility of the location
  • The number of bicycle advertising companies, and other advertising agencies in the location
  • The local laws and regulations in the community/state
  • Traffic, parking and security et al
b. What State and City are Best to Open a Bicycle Advertising Business?
  • South Louisiana, Louisiana
  • New York City, New York
  • Houston, Texas
  • East Rutherford, New Jersey
  • Long Beach, California
  • Baltimore, Maryland
  • Pittsburgh, Pennsylvania
  • Pascagoula, Mississippi
  • Tampa Bay, Florida
  • Hampton Roads, Virginia
c. What Equipment is Needed to Operate a Bicycle Advertising Business?

You should be prepared to purchase bicycles, computers or laptops, internet facility, telephone, fax machine and office furniture (chairs, tables, and shelves) amongst others and all these can be gotten as fairly used.

  1. Hire Employees

When it comes to hiring employees for a standard bicycle advertising business, you should make plans to hire a competent chief executive officer (you can occupy this position), admin and HR manager, accountant, cyclists, and customer service officer (receptionist).

  1. Launch the Business Proper

In recent times, no bicycle advertising business opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party.

With a proper launching of the bicycle advertising business, you will officially inform people in your city that your bicycle advertising business is open for business.

a. What Makes a Bicycle Advertising Business Successful?
  • Choose a good location and reliable bicycles to launch the business
  • Hire only competent, hardworking, and trustworthy staff
  • Be deliberate with your marketing sales approach
  • Encourage the use of word of mouth to promote your bicycle advertising business
  • Leverage all available online and offline platforms to promote your bicycle advertising business
b. What Happens During a Typical Day at a Bicycle Advertising Business?
  • The business is open for the day’s work
  • The bicycles are washed, cleaned, and ready for the day’s work
  • Customer’s requests are taken and they are scheduled or attended to
  • Schedule maintenance of bicycles is carried out
  • Marketing/website upkeep
  • Administrative duties
  • The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Bicycle Advertising Business?
  • Good Cyclists skills
  • Customer services skills
  • Interpersonal skill
  • Logistics skills
  • Business management skills
  • Bargaining skill
  • Work experience in the advertising industry
  • Experience in managing people
  • Experience in business administration
  • Experience in handling logistics software.