How to Start a Bike Repair Business

Cycling is a popular sport in the United States, with people regularly using bikes for fun, exercise, and transportation. In 2015 alone, 17.4 million bikes were sold in the country. As bikes are used, they occasionally break down -- and most people aren’t well-versed in repairing bicycles. A bike repair business fixes and refurbishes bikes for customers when their rides break down.

Learn how to start your own Bike Repair Business and whether it is the right fit for you.

Start a bike repair business by following these 9 steps:

You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your bike repair business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

STEP 1: Plan your Business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

Luckily we have done a lot of this research for you.

What are the costs involved in opening a bike repair business?

Startup expenses associated with opening a bicycle repair business are fairly minimal, although you’ll probably need these essential items:

  • Basic tools (open wrenches, hex keys, screwdrivers, a ratchet set, wire cutters, adjustable pliers)
  • Specialized tools (tire spoons, a chain breaker, a tire pump and pressure gauge, a spoke wrench, a crank arm pulley)
  • Work stand
  • Truing stand (for wheels)

Business owners who don’t already have these tools should expect to spend a few hundred dollars on them.

Repairing bikes also requires a workspace and replacement parts, but both of these potential costs can be kept to almost nothing. Many bike repair business owners have begun by fixing bikes in their garage or basement so that they didn’t have to worry about lease payments until their business was established. The cost of replacement parts is normally built into the invoices customer pay, and customers who need expensive parts can be asked to provide a deposit upfront. Such a deposit can be used to cover the cost of the needed parts.

What are the ongoing expenses for a bike repair business?

The ongoing expenses for a bike repair business are fairly low. They include:

  • Employee salaries
  • Workspace or storefront lease
  • Utility costs

Who is the target market?

A bike repair business’ ideal customer is an avid cycler who doesn’t know how, or doesn’t want to take the time and effort, to repair their own bike. Such a customer will likely need repairs and maintenance fairly often, since they use their bike a lot, and they’ll be willing to pay for the work their bike requires.

How does a bike repair business make money?

A bike repair business makes money not only by fixing bicycles, but also selling used them at a discounted rate. Many shops choose to offer tune-ups for a flat fee, and charge more for additional repairs.

How much can you charge customers?

Many bike repair businesses offer basic tune-ups for a set fee, and perform more advanced repairs at an adjustable rate. For example, Wheels in Motion offers three levels of tune-ups that range in price from $79.99 to $214.99. Repairs that go beyond what’s included in a tune-up are usually priced based on the parts and labor they require.

How much profit can a bike repair business make?

Some bike repair business owners earn up to $35 per hour or more, not including any profit they earn on parts sales. Business owners who grow their business into full-time businesses may earn $1,600 per week or more.

How can you make your business more profitable?

Bike repair business owners can add new revenue sources and increase their profits, by offering workshops on fixing bikes and repairing old bicycles. Some cycling enthusiasts will pay for a class that shows them how to care for and repair their own bikes. Refurbishing old bikes can also net a nice profit, as they can be sold once they’re repaired and working properly.

What will you name your business?

Choosing the right name is very important. If you don’t have a name in mind already, read our detailed guide on how to name a business or get some help brainstorming a name with our Bike Repair Business Name Generator.

Then, when registering a business name we recommend checking if the business name is available in your state, federally by doing a trademark search, searching the web, and making sure the name you choose is available as a web domain to secure it early so no one else can take it.

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After registering a domain name, consider setting up a professional email account ( Google's G Suite offers a business email service that comes with other useful tools, including word processing, spreadsheets, and more. Try it for free

STEP 2: Form a legal entity

Establishing a legal business entity such as an LLC prevents you from being personally liable if your bike repair business is sued. There are many business structures to choose from including: Corporations, LLC's, and DBA's.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

Check out the Top Business Formation Services from our friends at StartupSavant.

You should also consider using a registered agent service to help protect your privacy and stay compliant.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

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You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.

Open a business bank account

  • This separates your personal assets from your company's assets, which is necessary for personal asset protection.
  • It also makes accounting and tax filing easier.
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Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.

Get a business credit card

  • This helps you separate personal and business expenses by putting your business' expenses all in one place.
  • It also builds your company's credit history, which can be useful to raise money and investment later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a bike repair shop business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.

Certificate of Occupancy

A bike repair shop is generally run out of a small store. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

  • If you plan to lease a storefront:
    • It is generally the landlord’s responsibility to obtain a CO.
    • Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a bike repair business.
    • After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
  • If you plan to purchase or build a new location:
    • You will be responsible for obtaining a valid CO from a local government authority.
    • Review all building codes and zoning requirements for your business’ location to ensure your bike repair shop will be in compliance and able to obtain a CO.

STEP 7: Get Business Insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Learn more about General Liability Insurance.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Recommended: Learn what business insurance for your Bike Repair Business will cost.

Business Insurance for
Bike Repair Business

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

How to promote & market a bike repair business

The best way to promote a bike repair business is to become connected with the local cycling community. Business owners can do this by volunteering at cycling safety events, bike races, and mountain biking trail maintenance days.

Business owners may also want to carry basic bike repair tools on them at all times, so they can help cyclists whose bikes break down. On-the-spot repairs would likely have to be provided for free, but volunteering to help a cyclist fix their bike could lead to a lifelong customer.

How to keep customers coming back

Bike repair business owners can set themselves apart from competitors by developing a reputation as a cycling guru who knows everything there is to know about bikes. Business owners will become respected biking experts if they know a lot about bikes and regularly volunteer information. Maintaining a regular blog or newsletter with useful biking tips is another great way to grow your customer base.

STEP 9: Establish your Web Presence

A business website allows customers to learn more about your company and the products or services you offer. You can also use social media to attract new clients or customers.

Start A Bike Repair Business In Your State

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Select your state below for an in-depth guide on completing each of these steps in your home state.

Is this Business Right For You?

Anyone mechanically inclined who is passionate about cycling may enjoy running a bike repair business. Enjoying the sport will help a business owner connect with their customers, and making repairs requires basic mechanical skills.

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Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a bike repair business?

Bike repair business owners spend a lot of time working on bicycles. This work includes:

  • Testing bikes to diagnose issues
  • Stripping bikes down
  • Checking and cleaning components
  • Repairing or replacing broken pieces
  • Rebuilding bikes

When not working on a bike, business owners spend time ordering parts, conversing with customers, and marketing their businesses.

What are some skills and experiences that will help you build a successful bike repair business?

Successfully running a bike repair business requires an in-depth knowledge of bikes, how they’re put together and how they work. Business owners must be able to take apart any bike they work on, identify any issues, address those issues and put the bike back together.

Many regions have community programs and trade schools where business owners can learn these skills. Entrepreneurs who don’t have a program or school nearby may gain the necessary skills by working at an established bike repair shop for a season. The National Bicycle Dealers Association hosts seminars and educational programs for professionals in the bike industry, and may be another useful resource.

After completing any training, business owners should keep a couple of bike repair manuals readily available for consulting. A few widely available repair books are:

At, Gerry (a professional in the industry) recommends that aspiring business owners prove their skills by working on their own bikes. Stripping a bike down to just its frame, lubricating all bearings and fully rebuilding the bike will help a business owner feel confident they’re ready to repair other people's bikes.

What is the growth potential for a bike repair business?

Many bike repair businesses are individual locations that serve the local cycling community, and a number are run by just one or two people. Some, however, grow beyond a local area, eventually becoming regional or national businesses. Bike Doctor in Maryland is an example of a regional bike repair chain, and Velofix is a national one.

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Take the Next Step

Find a business mentor

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

  • Funding
  • Events
  • Guides
  • Support

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a bike repair business?

Business owners can increase their profit margin by seeking out donor bikes -- free bikes that no one wants, regardless of their condition. When work is slow, business owners can strip down donor bikes for spare parts. Many bikes have bearings, brake calipers, chains and cranks that will work on other models.

Bike repair business owners can then use these parts whenever they work for a job. Owners can ultimately sell the parts, earning pure profit on anything they charge since the parts were free. Alternatively, owners can provide the parts free of charge, as long as cyclists pay for the labor that a repair requires. This can be especially helpful in growing a business, as the parts cost only time to acquire, and everyone enjoys receiving freebies.

How and when to build a team

A bike repair business can remain a small business that’s run by just one person, or it can grow to have several employees who are constantly working on bikes. Business owners usually hire their first employee only after their business’ revenue can support an employee. The Recyclery pays its bike mechanics $13 per hour.

Read our bike repair business hiring guide to learn about the different roles a bike repair business typically fills, how much to budget for employee salaries, and how to build your team exactly how you want it.

Next Steps

Get more ideas with our Business Ideas Generator.

Check out our How to Start a Business page.

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