How to Become a Bike Parts Distributor

Bicycling is among the most popular forms of outdoor entertainment and recreation. Bicycle retailers still find that the market is a challenging one. In order to become a successful bike parts distributor, you will need to do a lot of hard work and planning.

1. Develop a business plan. Your business plan will be a comprehensive outline of the way that your bike distribution business will work. The plan should include your company's mission statement, a marketing and hiring plan, your estimated start-up costs, an analysis of competitors in your area and a two-year profit projection.


2. Obtain funding. If you need investment capital in order to start the distribution business, you will need to contact a local bank and inquire about the small business loan application process.


3. Take care of all of the legal paperwork. You will need to obtain a business license from city hall. You will also need to register your business with your secretary of state. Visit the IRS website and complete the federal tax identification application, which will give your company an ID number that will be used for tax purposes. If you wish to incorporate your business, take care of that at the same time. Contact an experienced patent and trademark attorney to assist you with the incorporation process.


4. Find your ideal business location. Work with a commercial real estate agent who can assist you in your search. Decide whether it is best to purchase or lease a location. Your business location will need a showroom that can be used to display the parts that you have for sale. It will also need adequate storage to hold the rest of your stock. If you plan on offering repair services, a shop or workroom is also a must.


5. Find a bike parts supplier. Do some research to find a reputable and dependable bike parts supplier in your area. It is important to find a supplier who will offer you bike parts at wholesale prices and who will provide you with excellent customer service.


6. Advertise your bike parts distribution store. Develop informative signs and flyers and place ads in the local newspapers, telephone books, radio stations and television stations.