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How Is The Ebike Market/Sales Right Now?
E-bikes are becoming increasingly popular around the world.
In fact, according to recent statistics, sales of e-bikes increased by almost a quarter in recent years when compared to the numbers pre-pandemic.
Around 50,000 to 60,000 units of e-bikes were sold each year pre-pandemic in the UK. In contrast, 160,000 e-bikes were sold in the year 2020.
That means one e-bike is sold every three minutes in the United Kingdom alone. Imagine how massive the electric bike market is!
It also means that if you want to jump on board the e-biking bandwagon, you\’d better act fast!
The market is currently flooded with a wide variety of options, from high-end models to budget bikes.
We know that it\’s a good idea, now more than ever, to start an e-bike business.
But where do you start?
Starting An Electric Bike Business
What Kind Of E-Bike Business Do You Want To Start?
Narrow down the long list of things you need to learn, prepare, and do by focusing on what you actually need to do – which will depend on what kind of e-bike business you want to run.
Different Kinds Of E-Bike Business
When we hear \”e-bike business,\” we only think of e-bike sellers, but there are actually several kinds of businesses that involve e-bikes.
- Electric Bike Shop
- Electric Bike Rental
- E-Bike Conversion Service
- Electric Bike Repair Center
- Battery Repair And Building
- eCommerce/ Blogging/ Vlogging
From here, you can sort your needs.
Say you decided to run an e-bike shop that sells e-bikes and their parts; you can start researching for suppliers, physical stores, etc.
If you think you\’ll do better in blogging or vlogging, start researching for ways, you can earn from it like subscriptions, ads, affiliates, etc.
Niching down is important so you can focus on what\’s important to you rather than being overwhelmed by a mountain of information.
Before Investing
With any business, you need to start by researching – extensively before you let go of your initial investment.
You don\’t just need the skills to do your service. You need knowledge about the electric bike industry, the market, and so much more.
Researching is a must, so you know what to expect, what to offer, and basically what to do with your business.
Things You Need To Research On
- Upfront Startup Cost
This involves the main upfront costs, which are the main things you need to get your business up and running or basic costs. That includes the items you intend to sell or tools you need to do the services you will offer.
If you decide to go for an e-bike rental business, you will need the location for the shop and the actual bikes, among others.
If you decide to start a repairing service, you need the space, the repairing tools, stock of e-bike parts and more.
The total cost for this will also involve the costs of the important things behind a business, such as business licenses, legal services for contracts, marketing, etc.
- Target Audience
Before you start your e-bike business, you need to identify who your target audience is. This includes knowing where they live, work, shop, play, ride and especially, their e-bike needs.
You need to identify the market for e-bikes you want to enter. Are there enough people who ride e-bikes in your area? What kind of riders are they? Is there any specific demand for any services? These questions can help you narrow down your target market.
Knowing your target audience will enable you to also focus on the product or service you can offer them.
If your target audience turns out to be tourists in your local area, bike rentals will benefit them more. If your area turns out to be a popular rest stop for e-bike riders, you can offer them repair services or charging stations.
- Gap In The Market
There\’s no doubt that electric bikes are growing in popularity, and many businessmen have caught on to cater to the growing demands. But there are still gaps between the supplies and demands. There are still needs that haven\’t been met yet or maybe not even available at all. That\’s what you need to find while researching. If you can find one and focus on that, your business will offer a need and not a want, which will make it strong.
Is there a tourist spot near you that\’s too big to tour by walking? Bike rental it is. Maybe even offer electric bike tours.
Are there many bike rentals around your area, but they have to go to a far e-bike repair shop when they need it? Open an e-bike repair business and give them a nearer repair shop option!
The \”e-bike market\” doesn\’t have to be the global market – yet. Start with solving the issues near you and your target audience.
- Competition
The number one reason people fail at starting a business is that they don\’t understand the competitive landscape. In fact, most entrepreneurs never really learn this important lesson.
This is especially true when it comes to starting an e-bike business. There are many different types of e-bike businesses out there, each with its own unique features and benefits.
Competition can be healthy. You can use your competition as a reference to the rates, sales, products and services you offer.
You can match them or overtake them. You need to learn about them so you can stay competitive. It\’s not enough that you\’re good at your own thing.
Other Important Things You Need To Process To Start Your E-Bike Business Properly
Business researching and business planning are not everything.
You can\’t start your business that easy even if you already have the stocks for the products and skills for the services.
There are a lot of other things you need to get the ball rolling.
- Business license
This is one of the most important things you need to process.
You must register your business name with your local government.
The business license allows you to operate a business within city limits.
Without this license, you would be operating illegally, which means you could face fines and penalties.
Contact your city hall to learn how to apply for a business license. Some allow you to file for a business license online.
- Liability Insurance
Public liability insurance protects you and your customers in case anything happens. It\’s never a bad idea to be insured. Insurance may be optional to some, but for businesses, it\’s a must.
- Getting Incorporated
Being incorporated means that your business is officially registered as a legal entity, and it gives you the ability to open bank accounts, pay taxes, and assume debts under the company.
A corporation is a separate legal entity from the business owner. This will protect your personal assets, properties, and even savings.
- Website
Having a website is essential for any business. It lets potential customers know about your business. Many customers look for company websites to check if the business is credible.
Aside from establishing an online presence, you can even use your business to offer products and book services.
- Advertising
Advertising is important because it helps you build awareness and credibility. Without advertising, people may never even know your business exists.
There are many ways to advertise your e-bike business. Social media platforms like Facebook, Twitter, Instagram, Pinterest, Google+, LinkedIn, and YouTube will be powerful tools in your marketing plan.
You can also advertise through email newsletters, flyers, billboards, print ads, radio spots, TV commercials, and more.
The cost of advertising online and offline will surely be worth it and will benefit your business.
- Legal Considerations
Aside from the legal aspects of your business itself, you also need to take care of the legalities that may surround e-bikes in your area.
You see, e-bikes can be subject to different laws and may vary from city to city.
So cities treat e-bikes the same as traditional bikes or regular bikes. Some treat them as motorized vehicles. That means you will need a driver\’s license to ride an e-bike in one city and not in another.
There are also age restrictions for e-bike riders. In some cities, anyone older than 14 can ride an e-bike without supervision. In some cities the rider needs to be at least 16 years old.
There are also speed limits and safety gear rules and regulations.
Knowing these is extremely important, especially if you\’ll be running an ebike rental company. For example, if a driver\’s license is required when riding an e-bike in your area, you can\’t and shouldn\’t rent those without it.
Final Words
Starting any business from scratch can be challenging, but if done sincerely and properly, it will all be worth it in the end.
If you don\’t have any business experience, don\’t be afraid to go to business leadership conventions, get guidance for your business model from others, and maybe even build business partnerships.
It\’s better to be delayed a little bit than fail.
We hope this article helped.
Good luck!
Last Updated on October 5, 2022 by Evan
