New Venture Opportunity and SWOT Analysis Paper

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Introduction

The new business venture I will evaluate is Bike Gear Shop which aims at providing safety gear and accessories to motorcyclists across the United States. The first Bike Gear Shop (BGS) outlet will be situated in New York City aiming to attract a wide range of motorcyclists who cruise in the city. A study by Chaudhuri et al. (2019), to investigate the trends of motorcyclists fatalities and risk identification, concluded that fatality rates among motorcyclists increased across all age groups. The results of the study indicated the need to improve motorcycle safety among people of all ages. Given the capital base required to start the business, I will start with one outlet at the New York business district and later expand as need and demand for the safety products grows. The business will have two broad programs including the sale of safety accessories and second, the sale of spare parts for motorcyclists.

The business buyer persona is made up of three groups of people. The first group is bike racers and the second group are young bikers between the ages of 25 and 45 who are working and earning an income of between $60,000 and $150,000 annually. The third group is made up of enthusiast and people who enjoy biking.

SWOT analysis

According to data from Statista, the global motorcycle market was estimated to grow from over 133 billion U.S. dollars to 136 billion USD in the year 2023 (Statista, 2023). The USs motorcycle market estimated a revenue of 6.24 billion USD by the year 2022. The motorcycle market has been experiencing a growth trajectory as time goes by. The Bike Gear Shop (BGS) aims to leverage the policies set aside by the United States government to keep motorcyclists safe. US policies require motorcyclists to be visible on the road by wearing bright clothing or bright helmets (Buckley et al 2016). Motorcyclists are also advised to gear up before every ride. Riders are also mandated to have motorcycle insurance to help them get insurance in case of any accidents. Below is a SWOT analysis for the business. The analysis will provide insights to the business on what to leverage to make sales and improve revenue.

Strengths

Affordable pricing of products- BGS aims to provide better prices for safety gear compared to competitors. This will be employed as a market entry strategy

Location- The business ventures first outlet will be located at New York City targeting the affluent private motorcyclists who consider safety a necessity. The market positioning will aim at attracting similar customers to those of their competitors (Andromeda motors, Bohn body armor, Cycle Wear and Dainese).

Competent staff- The venture plans to hire one staff member to assist in selling of products. The said person is well versed in motorcycles

The net income after deduction will be $1,800. However, as the business grows, there is an expected increase in number of products sold. An increase in quantities sold will largely be founded upon effective marketing and advertising efforts. The business will, thus, incur more costs in running Ads online in order to attract more customers. This will in turn increase the number of purchases and consequently amount of revenue.

Bike Gear Shop is projected to break even in six months. However, the need to ensure consistency in business operations has been identified. Also, given the specificity of the target market, there is need to be keen on targeting. Motorcyclists are typically people who enjoy thrills and are often described as being in search of an adrenaline rush. They also appreciate the need for safety and most are often ready to spend their money to stay safe and alive while on the road. A business that addresses their needs as relates to their experiences will, thus, be likely to succeed from the onset.

In the final analysis, it is important to note that this particular business venture promises sustainability and scalability. The projected profit margins range from 9% to 20% in the first three months. Sound management will set the business firmly…