ENTREPRENEURSHIP IN HOSPITALITY, TOURISM & LEISURE
SPOKE EXCURSION - BIKE TOUR BUSINESS PLAN
MIKE SILVA 100767180
JESSICA FABIAN 100554208
OSHAE GENTLES 100772927
JOENA LEOVERAS 100788209
JENINE AQUINO 100598445
HOST 2053
BUSINESS PLAN
PROFESSOR: MARIA BANYAI
SPOKE EXCURSION 2
Bike Tour Business Plan
TABLE OF CONTENTS
EXECUTIVE SUMMARY…………………………………………………………………3
COMPANY PROFILE……………………………………………………………………...4
MARKET RESEARCH…………………………………………………………………….6
SALES & MARKETING…………………………………………………………………..10
OPERATIONS……………………………………………………………………………..12
FINANCIALS……………………………………………………………………………....21
ACTION PLAN…………………………………………………………………………….23
REFRENCES……………………………………………………………………………….24
CORRECTIONS IN PART A……………………………………………………………....27
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade secret information
and is shared only with the understanding that you will not share its contents or ideas with third parties without
the express written consent of the plan author.
SPOKE EXCURSION 3
Bike Tour Business Plan
Executive Summary
Company Profile Summary
Spoke Excursions is a luxury bike tour company that targets affluent baby boomers. The
guests will experience exceptional service and unforgettable memories. Our office is situated
in the business district of Richmond City, British Columbia. It is owned and operated by five
individuals in a partnership with the help of two seasonal tour guides.
Market Research Summary
Spoke Excursions operates primarily in the Travel and Recreational industry. The bike tour
industry is the fastest growing division of the travel industry, which makes it easier to enter
the industry and entice customers. Based on past analysis we believe that the interest for bike
tours will increase every year. The gradual increase of retired baby boomers will contribute to
the interest in healthy, sustainable bike tours. Our target markets are affluent baby boomers.
Marketing Summary
Our prices reflect the caliber of the tours we provide. We target affluent individuals who seek
adventure and new experiences. These adventures and experiences are not your typical all
inclusive vacation, therefore they cost more. We are taking a competitive approach to the tour
costs by using value-based pricing. Since we do charge similar prices to our competitors, we
feel that the prices are fair for the quality of the services we provide. Our marketing strategy
focuses on social media, Google optimization, Networking Relationships and Smart
Advertising.
Finance Summary
After calculating our fixed and variable costs, our total start-up cost is $82, 068.58.
Therefore, our total average per product is $2, 698.22/ customer. We would need to have
booked 32 tours in order to breakeven. 32 tours would amount to $86, 343.04 after 8 months
of operation, which is more than our start-up cost. We plan to finance our start-up cost
through multiple bank loans and personal contributions.
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade secret information
and is shared only with the understanding that you will not share its contents or ideas with third parties without
the express written consent of the plan author.
SPOKE EXCURSION 4
Bike Tour Business Plan
Company Profile
Business Overview
Spoke Excursions is a company that offers luxury bike tours for groups of 8-20 people in
various areas of British Columbia with exceptional tour guides that are knowledgeable of the
region and customer service oriented. The tours themselves are done on bike and a van is
always nearby for anyone who feels they are tired and cannot continue. Every aspect is taken
into account by the sales and operation team along with the tour guides such as dietary or
allergy concerns, type of bike and maintenance. They also take into consideration the
customers preference in wine, food, culture and nature. Difficulty levels will vary and will be
discussed prior to bookings. Spoke Excursions will be established on April 19, 2013.
Spoke Excursions is committed to providing an authentic and luxurious bike travel
experience with various difficulty levels in British Columbia. We are focused on
sustainability that will create lasting memories and lifelong friendships.
Spoke Excursions is a service business. - Professionally guided bike tours of different areas
of British Columbia (Okanagan Food and Wine, Vancouver Island Natural Escape, Greater
Vancouver Urban Tour, Rocky Mountains, Great Bear Rainforest Nature and Culture Tour,
etc.) - Van for every tour in case of fatigue or an emergency; - transportation to and from
airport at arrival and departure, if desired by customer; - stays in the best hotels and eating at
the best restaurants in those regions; - authentic experiences with local people, culture, food
and wine and not just seeing main attractions; - deals on necessary services provided by our
partnership companies (airlines, travel insurance, taxis, travel agents, etc.)
Company History
Our company is still an idea. It came about because every member of our group was recently
placed in different companies for a 7-week externship. Some were in tour companies while
others worked in hotels, so we decided to take all our learned knowledge and skills and put
them together to form this bike tour company. Bike tours have become a trending travel
option especially in the Southeast nation of Thailand. They have attracted over 12 million
visitors from around the world each year (Jakarta Globe, 2012). The idea came about after
research on bike tours in Canada. Surprisingly, there are very few established bike tour
companies in the Country. Not only do we support the environment but also the economy by
establishing Spoke Excursion. Bike tours give people the opportunity to engage with their
surrounding environment but also a fun way to participate in a physical activity.
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade secret information
and is shared only with the understanding that you will not share its contents or ideas with third parties without
the express written consent of the plan author.
SPOKE EXCURSION 5
Bike Tour Business Plan
Management
Spoke Excursion will start as a small bike tour company having partnership within 5 owners
who will also act as full-time employees within the company. There are two part-time
employees that are hired from the beginning to guide the tours in Vancouver. However, more
tour guides will be hired for part-time or by contract for future events and expansion of the
company. Plans are to hire a financial accountant quarterly who will be responsible for the
accounts receivable, internal financial statements and review financial records and
transactions. The five owners will be split into the departments of Sales, Marketing,
Operations, Inventory and Administration. The company will also have to hire a website
designer that will create an interesting web layout that is easy to navigate but will also
intrigue visitors to want to book a tour. The Marketing head will be working closely with the
designer to produce promotional banners, tour details and how the website would overall fit
the image of the company. The credentials of the owners will be a minimum of a Degree
along with at least 3 years of professional experience in their specified field.
Location
Spoke Excursions will be have an office located at Richmond, British Columbia. This office
location was chosen because of its clean and professional interiors, which reflects our
company’s luxurious image. It is also located in one of the most upscale business parks in the
Lower Mainland, and is just a few minutes drive from other major regions, which makes this
location central and exclusive. The office will be used for daily operations, storage of
supplies, recruitment and meetings for marketing events and promotions. We will also be
renting storage space, which is also located in Richmond near the office for emergency
purposes and convenience. The storage space will store the bikes, helmets and other
equipment for the tours.
Vision & Mission
5-10 years from now we see our business as a financially-healthy company known
throughout the world as the signature luxury bike tour company of British Columbia with
endless positive testimonials from tourists and local residents.
Our daily mission is to provide our customers with a luxurious travel experience with the
friendliest tour guides, the best hotels and unforgettable culinary experiences that Beautiful
British Columbia has to offer. To do so, every member of our team will work together and
make sure that every detail is taken care of before, during and after every trip.
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade secret information
and is shared only with the understanding that you will not share its contents or ideas with third parties without
the express written consent of the plan author.
SPOKE EXCURSION 6
Bike Tour Business Plan
Goals & Objectives
Have a fleet of bikes for every major tour by the end of the first year of operation; - Have 20
confirmed bookings with deposit per week by the end of our first year in business; - Appear
in 5 renowned travel magazines for exceptional Customer Service and awards by the end of
2013; - Expand our location to other provinces and/or states by 2015;
Market Research
Industry Profile & Outlook
Spoke Excursions operates primarily in the Travel and Recreational industry.
The bike tour industry is made up of a combination of both small businesses such as Cycle
Canada and Toronto Bicycle Tours and larger scale businesses such as Backroads and Travel
Trek. The bike tour industry is rapidly growing according to Cycle Tourism. Cycling tourists
are often in a higher income bracket than most tourists and they recognize the bike more and
more as a vehicle which is good for their health. The bike industry has recognized the profit
potential of cycling travelers and is offering quality touring equipment (One Street Org,
2013).
The bike tour industry is the fastest growing division of the travel industry, which makes it
easier to enter the industry and entice customers. In order to have a successful bike tour
business we have to ensure that our tours are unique, interesting and fun. Favorable
businesses in the industry have assembled a powerful reputation through persuasive
advertising, networking with various industry partners (Entrepreneur.com, 2013).
The bike tour industry has seen many highs and lows since 2004- to the present. The interest
in bike tours was at its lowest point in was in December of 2008 with an interest of 26% and
its highest point in July 2004 with a 100% interest in bike tours. The frequent ups and downs
are due to the change in seasons the tours are more popular in the spring and summer seasons
while the interest decreases in the fall and winter seasons. As the years go by the same pattern
occurs, in the summer of (July) 2012 the interest in bike tours decreases by 39% compared to
the 2004 findings. For the most current partial findings April 2013 the interest has increased
by 57%. The interest for bike tours is forecasted to increase by 61% by July 2013 (Google
Trends, 2013).
Based on past analysis we believe that the interest for bike tours will increase every year. The
gradual increase of retired baby boomers will contribute to the interest in healthy, sustainable
bike tours. Baby boomers have disposable income and time and will be looking to go on
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade secret information
and is shared only with the understanding that you will not share its contents or ideas with third parties without
the express written consent of the plan author.
SPOKE EXCURSION 7
Bike Tour Business Plan
vacations. Another reason why the interest for bike tours will grow is the new societal trend
of being eco friendly. Bike tours are eco friendly its give you a chance to deplete your carbon
emissions and is a healthy alternative compared to driving a vehicle (Google Trends, 2013).
Local Market
In Vancouver there are two well-known bike tour businesses but four listed in the yellow
pages, one in Kelowna, one in Penticton, one in Victoria and lastly one in Brackendale
(Yellow Pages, 2013). The most popular locations for bike tours are located in Vancouver
and the Okanagan. Vancouver is a favourite because of its many bike paths such as Stanley
Park Sea Wall, Fort Langely, Steveston, Port Coquitlam and Boundary Bay Regional Park
(www.bcliving.ca).
In the surrounding area there are four 5 star hotels; Rosewood Hotel Georgia, Four Seasons
Hotel Vancouver, Fairmont Pacific Rim and Shangri-La Hotel Vancouver. Also, 5 star
restaurants including The Dockside Restaurant, Vij's, West and Chambar Restaurant
(www.expedia.ca).
Key Competitors / SWOT Analysis
Backroads
strengths - Loyal customer base; -Renowned brand name -Operates in many regions -Good
website
weaknesses - -Limited experience in BC -High Pricing
opportunities - Can easily expand to any region because of its vast experience in the field More use of Social Media
threats - Lagging economy -Increasing competition -Weather
Butterfield and Robinson
strengths - Exceptional tour guides -Operates in many regions -Excellent website
weaknesses - Caters to a small demographic -High Pricing -Small player in the industry
opportunities - -Yet to operate in certain regions -Small player in the industry, room for
expansion
threats - Slow economy -Increasing competition -Highs and lows of Canadian Dollar Weather
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade secret information
and is shared only with the understanding that you will not share its contents or ideas with third parties without
the express written consent of the plan author.
SPOKE EXCURSION 8
Bike Tour Business Plan
Cycle Canada
strengths - Diversity of tours provided within Canada -Good testimonials
weaknesses - High Pricing -Loss of interest in their service since they only operate in one
country
opportunities - Expansion to other countries since it only operates in Canada -Tours of other,
lesser known, regions of Canada
threats - Uncertain economy -Increasing competition -Weather
Trek Travel
strengths - Provides service in diverse regions of the world -Good website
weaknesses - -High Pricing -Insufficient use of Social Media
opportunities - -Growing company, lots of room for expansion -Emphasizing more on the
sustainability factor, great for PR
threats - -Slow recovery from recession -Increasing competition -Weather
Spoke Excursions
strengths - Best possible bike tours to be had in BC -Good rep will bring the best candidates
in the industry to the HR department -Founded by passionate professionals that are business
savvy and share a common love for travel
weaknesses - New company, uncertain future -Small size of our Niche target market -Lack of
experience in the field with customers and local residents
opportunities - Expansion to other provinces and maybe abroad -Endless possibilities in
social media, advertising and marketing -Contribute to the Sustainable Tourism movement
that will become the rule eventually
threats - Competition -Slow recovery of the economy -Lack of interested customers -Weather
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade secret information
and is shared only with the understanding that you will not share its contents or ideas with third parties without
the express written consent of the plan author.
SPOKE EXCURSION 9
Bike Tour Business Plan
Target Market
Spoke Excursions is focused on selling to Consumers (Business to Consumers).
1- Couples (married) or Singles with partners (Life Cycle)
2- Aged 40+ (Demographics)
3- Household Income $100,000+ (Demographics)
4- Reside in California, New York or Greater Toronto Area (Demographics)
5- Post-Secondary Education (Demographics)
6- Disposable Income, Free time, Secure Jobs (Lifestyle)
7- Zoomers / Empty-Nesters (Life Cycle)
8- May or may not have kids (family tours - Lifestyle)
9- Love for outdoors, sustainability, go local movement, physical activity, bonding
(Behaviour)
British Columbia is a premier biking destination that includes all kinds of terrain from small
rides to larger adventures like the ones we offer. The provincial government has spent
millions of dollars on upgrading older bike paths and building new ones in an effort to
encourage healthy living and sustainability. Biking is steadily growing not only for
recreational use, but for going to work. This increased use offsets the use of public
transportation and helps combat congestion. Also important to note is that the infrastructure
needed for bike transportation is much lower than that needed for motorized vehicles.
(www.th.gov.bc.ca, 2013)
Canadians cycle three times more than americans, which shows how much a part of canadian
culture biking is. This mentality favours British Columbians desire for sustainable businesses
that contribute to the local economy and tourist flow. (John Pucher and Ralph Buehler, 2005).
Vancouver and Victoria are even considered two of the most bike-friendly cities in the
country. (Rebecca Zamon, 2012)
Keys to Success
In order to be successful and drive customers to our business we must optimize the use of
Google and the networking for our niche market. This will include the optimal use of Social
Media and an attractive, current and professional website. Partnering with other companies
that share the same target market is also key and beneficial for both parts, as relationships are
fundamental in the luxury products and services industry
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade secret information
and is shared only with the understanding that you will not share its contents or ideas with third parties without
the express written consent of the plan author.
SPOKE EXCURSION 10
Bike Tour Business Plan
Ensuring our tour guides are local, knowledgeable and share the values of the company is
key. They must maintain the bike fleet, be up to date on current issues, and love the job. In
the office setting, each member must also share the values of the company and be interested
in the company's success. This includes an enthusiastic sales team, creative marketing, and up
to date operations. We will require feedback from our guests so we know what areas need
improvement, and any member of our staff must always be available to answer questions or
issues our customers may have.
Sales & Marketing
Pricing Strategy
Our largest competitor ‘Backroads’ charges $2, 998 to $3,098 based on double occupancy.
This six day, five night tour departs Banff, Alberta and includes hotel accommodations and
all meals except one dinner. (Backroads, 2013) Another competitor for our company is Cycle
Canada. Cycle Canada charges $4,150 per person for a twenty-five day Vancouver to Inuvik
tour. This tour includes 18 nights camping and 6 nights in hotel accommodations. 20 dinners
and 20 breakfasts are included; lunches and snacks are on the individual participant to
provide. (Cycle Canada, 2012)
Seventeen days, sixteen nights tour leaving Victoria, British Columbia ending in Snake
River, British Columbia. This tour includes room accommodation in a five star hotel and all
meals. Based on two individuals, the cost of this tour is $5,250 plus tax and includes the
rental of the bikes. Discounted rates are available for those participants who have their own
mountain bike that meets the requirements for the tour.
Seven days, six nights tour Chilliwack Vancouver ending in Banff National Park. This tour
includes room accommodation in a five star hotel and all meals are based on two individuals,
the cost of this tour is $3,150 plus tax and includes the rental of the bikes. Discounted rates
are available for those participants who have their own mountain bike that meets the
requirements for the tour.
Deposits will be $1,000 upon booking. The rest must be paid up to a month before the
scheduled departure. Half the deposit will be returned in case of cancellation up to 2 months
before departure, but 0 will be returned if cancelled after. However, the deposit can stay with
us for a future trip if the customer desires.
Our prices reflect the caliber of the tours we provide. We target affluent individuals who seek
adventure and new experiences. These adventures and experiences are not your typical all
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade secret information
and is shared only with the understanding that you will not share its contents or ideas with third parties without
the express written consent of the plan author.
SPOKE EXCURSION 11
Bike Tour Business Plan
inclusive vacation, therefore they cost more. We do offer a discounted rate to those
individuals who have their own mountain bikes, as long as these bikes meet the requirements
for the tour. We are taking a competitive approach to the tour costs by using value-based
pricing. Since we do charge similar prices to our competitors, we feel that the prices are fair
for the quality of the services we provide. Our competitors typically do not include meals nor
do their clients stay in five star accommodations during the tours. The value that our clients
will receive for their dollar makes it worth spending slightly more than the competitors
charge.
Marketing Strategy
1- Social Media, Website, Google Optimization
2- Networking Relationships
3- Smart Advertising (Luxury Magazine)
Activities
1- Social Media, Website, Google Optimization - Spoke Excursions will have constantly
active Facebook, Twitter and LinkedIn accounts that are free and linked to the
website. The website startup will cost between $1,610 ~ $5,236
(www.designquote.net, 2013). Search engine optimization will be done with the
inclusion of hashtags, GoogleAnalytics, hiperlinks and keywords. These features will
help us reach our specific target market, through optimization. Google trends, "likes"
on Facebook, followers on Twitter and tracking of visitors to the website will help
determine how well each one is working. After implementing each one of these we
expect an increase of trip inquiries over the phone and through email that will lead to
bookings and this is an adequate indicator of the effectiveness of each feature. For
every 10 inquiries, 1 booking would be a great achievement! (Simon Elliot-Sales
Director at B&R, 2013)
2- Networking Relationships with same niche organizations - We plan on taking part in
the Gourmet Food and Wine Expo in Toronto which costs $1,450 plus tax to have a 5
x 10 booth and quarter page ads in their brochure. Over 40,000 people attend the
event every year (foodandwineexpo.ca, 2013). In the following year we plan on being
part of the New York Times Travel Show Los Angeles Travel and Adventure Show.
3- Smart Advertising - Robbreport Magazine (Luxury Resource Magazine) Ad in their
February Travel Edition will cost $14,511 for a 1/3 page ad. This may seem like a
high amount of money but this magazine is a perfect fit for our target market and is
printed for 184,000 households in the USA alone (Robbreport.com, 2013).
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade secret information
and is shared only with the understanding that you will not share its contents or ideas with third parties without
the express written consent of the plan author.
SPOKE EXCURSION 12
Bike Tour Business Plan
Objectives
1- To constantly update our social media outlets and website to reflect the changes that may
occur, so customers know what we are doing. Also, this will contribute to our Google
optimization and drive more customers to us. We want to be in the top 10 Google Searches
for bike tour companies by the end of 2013.
2- Establish our company as a luxury brand, recognized for its superior customer service and
amazing experiences, to target our specific niche market. An average of 20 booking with
deposit/week is our goal by the end of our first year in business.
3- Increase the awareness of our company throughout the year and to different markets
outside of our normal realm. Through travel shows in different cities, recognition in travel
and luxury products magazines and brochures we want to attract customers from outside our
normal locations like California, New York or the GTA.
Operations
Legal Issues
We would need to acquire these permits and licenses in order for the company to follow legal
requirements in Canada:
1.
2.
3.
4.
5.
6.
Business License
Location & Zoning by laws
Operating License
Industry Specific License
Registering Employees
Contract Agreement
As a bike tour company that offers taxable service (HST/GST) in Canada, we would have to
register Spoke Excursion online through Canada Revenue Agency to receive our business
license along with registering the name of the company. For the sign/label at the entrance of
the building, a sign permit has been obtained from the city of Richmond. Location and zoning
by laws include park use permit. This permit allows us to tour on provincial parks in British
Columbia. A meeting with the park’s superintendent discussing the activities that will occur
on park grounds is necessary and would have to be approved in order for cyclist to tour on
provincial parks. Industry specific license include commercial vehicle license. Transporting
and delivering the bicycles from the storage to the meeting point of the clients as well as
storing the bikes in the van is all under the commercial vehicle license. This license needs to
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade secret information
and is shared only with the understanding that you will not share its contents or ideas with third parties without
the express written consent of the plan author.
SPOKE EXCURSION 13
Bike Tour Business Plan
be renewed every year according to the provincial law of British Columbia. Human Resource
would be in charge of knowing the legal requirements of being an employer, which includes:
1. Going by the Employment Standards Act of British Columbia
2. To open a payroll’s deduction account under Canada Revenue Agency
3. Apply each employee to Work Safe BC insurance through online process
A contract agreement between the five owners of Spoke Excursion will be obtained through
collective bargaining. Although collective bargaining is often used between employers,
unions and employees, however because this business is in partnership the 5 owners will
discuss and decide upon the following:
1.
2.
3.
4.
The parties to the agreement (names, name of company, date etc.)
What each party will gain through the agreement
What each member is promising to do (main bulk of the contract)
Additional terms (termination, death, illness, injury etc.)
Each party will have to sign the contract that declares all agree in the terms and conditions of
the contract between the partners.
An issue that could arise from legality is not hiring a lawyer who specializes in small
business operations. A lawyer can help to draw up the necessary legal documents that set out
the terms of any partnership or other shared ownership. This will help ensure that all parties
will be treated fairly, and that there is a mechanism for handling any disputes or
disagreements. An unhappy owner can ruin the establishment and growth of any company,
especially in partnership business where the ownership and decisions are not made by one but
with 5 people (Canada Business, 2013).
Insurance Issues
Spoke Excursions will be required to purchase several different insurance policies. These
policies include health insurance for the five partners and the part time tour guides that we
will hire. We will be required to purchase general and product liability insurance, vehicle
insurance, content insurance, critical illness insurance, disability insurance and most
importantly partnership insurance or buy-sell insurance.
·
Disability insurance — will provide income for a specified period of time, if a
partner is unable to work due to an injury or illness.
·
Partnership insurance or buy-sell insurance — if a business partner passes
away, partnership insurance will allow us to purchase the shares and continue
running the business.
·
Critical illness insurance — will provide a partner with a lump sum benefit, if
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade secret information
and is shared only with the understanding that you will not share its contents or ideas with third parties without
the express written consent of the plan author.
SPOKE EXCURSION 14
Bike Tour Business Plan
they are diagnosed with a critical illness.
·
Contents insurance — this insurance will cover the business assets that we store
at the business premises. As we are leasing an office space, the owner of the
property does cover property insurance, however we are responsible for own
contents insurance.
·
Business interruption insurance — if we need to shut down the business
temporarily due to a fire or other peril, business interruption insurance will cover
any loss of earnings until we are able to be back in business.
·
Vehicle insurance — we will need to insure the company cargo vehicles that our
business owns.
·
General liability — this insurance will cover injury to our staff and clients during
a tour. This liability is especially important for those guests who choose to bring
and use their own bike during the tour.
·
Product liability — this protection will be used in the event that our bikes or
vehicle causes serious harm to the clients using them.
Providing a health insurance plan for our employees can help in recruitment and retention of
the employees especially during the slower months. Spoke Excursions will cover dental,
vision and health care for all of our staff and for the partners of the company. (Government of
Canada, 2013)
Human Resources
Spoke Excursion will start as a small bike tour company having partnership within 5 owners
who will also act as full-time employees within the company. There will be two part-time
tour guides hired in early spring. These tour guides will be fully trained for the start of tour
season. However, more tour guides will be hired for part-time or by contract for future events
and expansion of the company. Plans are to hire a financial accountant quarterly who will be
responsible for the accounts receivable, internal financial statements and review financial
records and transactions. The five owners will be split into the departments of Sales,
Marketing, Operations, Inventory and Administration.
Sales department is in charge of devising strategies and techniques for achieving the sales
target. They would be looking for potential customers who are interested in luxurious bike
tours then promote the service to the clients. They mostly deal with other agencies in offering
incentives to managements. Sales are always looking for new opportunities for the success in
generating profit for the company. Marketing is art of distributing, developing and
advertising the service to consumer as well as business. They will work very closely with the
Sales department to promote and enhance Spoke Excursion’s name to future customers. They
will also be in charge of communicating with other agencies and managing budgets for media
and poster advertisements. The marketing head will be very busy in planning an opening
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade secret information
and is shared only with the understanding that you will not share its contents or ideas with third parties without
the express written consent of the plan author.
SPOKE EXCURSION 15
Bike Tour Business Plan
campaign/event for the company and in order to make it successful, they would have to
research the target markets and be strategic in making a lasting first impression. Operations
will handle the tours and everything that goes into making the tour happen. They would be
contacting restaurants and hotels making sure that rooms and tables are reserved for certain
times and dates for the right amount of people attending. Coordinating is one of their main
duties. The tour will also include a few attractions and site visits that Operations will have to
book and research on. They are also responsible with keeping in touch with the tour guides
and letting them know in advance of future tours that will occur. Having an efficient
operation will increase customer satisfaction and will leave a positive and memorable
experience to all cyclists. Inventory will handle the equipment’s that are used which are the
bikes, maintenance of the van and bikes, other bike gears (helmets), snacks, water bottles,
and t-shirts that will be handed out to every rider. Office supplies are also their
responsibilities. Inventory is required to constantly be updated and kept organized with the
records being filed. Lastly, Administration covers online bookings and filing of customers. If
a group of clients were to book a special tour that caters to them specifically, Administration
would have to coordinate with operations and built a custom group tour for the clients.
Aside from the owners, there will also be tour guides that have extensive knowledge in bike
tours and experience. They are required to have their Class 5 British Columbia License to
drive passenger vehicles along with their Class 4 driver’s license for commercial vehicles
such as the van to transport the bikes and customers when they get too tired (ICBC Driver’s
License, 2013). CPR-C is also required from each tour guide that is equivalent to lifeguards
certification. Although CPR-C is current for 3 years, Administration will constantly check for
their certification for retraining annually (Life Saving BC Certification, 2013). Knowledge of
bike trails and the vicinity of where the tour will take place are also required. Having the
knowledge of where the closest Hospitals just incase of emergencies and roads are all
important for the guide to know. Training for where the tour will take place will be provided
with pay to the guides to fully get to know the surroundings of the trail. Finally, being
hospitable to all the customers during their whole trip will make the experience enjoyable for
everyone. Being able to cater to the groups needs while being professional are all
requirements for the all the tour guides of Spoke Excursion.
The company will also have to hire a website designer that will create an interesting web
layout that is easy to navigate but will also intrigue visitors to want to book a tour. The
Marketing head will be working closely with the designer to produce promotional banners,
tour details and how the website would overall fit the image of the company.
Job Description
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and is shared only with the understanding that you will not share its contents or ideas with third parties without
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SPOKE EXCURSION 16
Bike Tour Business Plan
Job Title: Tour Guide
Location: Chilliwack, British Columbia
Report To: Spoke Excursion Partners
Job Summary:
Consistently provide quality customer service to all the clients. Relay information to
inquiring customers about local features and historic information, when asked. Also, provide
a professional image at all times, through appearance and dress. Candidates must be able to
work shift work, seven days a week and must be able to comply with the company’s policies
and procedures.
Qualifications:
· Must have strong communication skills
· Must have a passion for customer service
· Ability to thrive in a fast-paced environment
· Adaptable to change
· Ability to stand and bike for long periods of time
· Prior degree or diploma in tourism an asset
· Previous tour guide experience preferred
.
Class 4 and 3 British Columbia Driver’s license
· Must be legally allowed to work in Canada
Job Duties:
· Provide professional and courteous service to our customers at all times
· Have a complete knowledge of our company code of conducts and ethics code
· Provide our customers with help concerning the bikes issues
· Ensure cargo vehicle is fully stocked with both edible items and beverages at all times
· Be the go to individual with any issues during the tour experience
Working Conditions:
Spoke Excursions hopes to exceed customer expectations by constantly providing them with
the personal touches that most tour companies cannot or do not provide. We strive for a warm
and friendly environment that friends will enjoy. Being such an exclusive tour company our
employees need to multitask and be able to bike for long periods of time. Their number one
priority must to be to insure the safety and security of our clients at all times.
The Ideal Candidate:
Our company is looking for an ideal candidate with the following features:
• Skills: refined verbal communication skills and customer service skills
• Experience in the hospitality industry, prior experience as a tour guide is an asset but is not
required
• Educational background degree or diploma in the hospitality field preferred
• Certifications required: First Safety and CPR
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SPOKE EXCURSION 17
Bike Tour Business Plan
• Other qualifications: able to multitask in a fast-paced work environment, flexible to shifts,
a team player, service-oriented, and legal to work in Canada
Recruitment methods:
·
Online positing on the company website, HCareers, Job Bank, Kijiji
·
Referrals
·
(National) Job board websites such as Workopolis and Monster
Process and Production
1.
Upon booking the tour the participants must pay the first deposit of $1,000 then pay the
remaining balance 2 weeks before the tour.
Note: In case of cancellation, clients must give a 2 months notice before departure to receive
half of the deposit.
2.
Participants must complete a number of forms when they travel with us. The form should be
completed as soon as possible after receiving them and returned to us:
·
·
·
·
·
Personal Information Form - one for each person travelling.
Medical Information Form - one for each person travelling.
Tour Contract – signed (including liability issues)
Flight information form – we need to know when the participants will be
arriving by air and when will be departing
T-shirt form- one for each person travelling
3.
This tour is design to give our participants a unique experience to see British Columbia up
close to the nature and expose them to the beauty of the land.
4.
Once the participants arrive they will be staying in a five star hotel for a night. Participants
will be briefly informed about the tour. This briefing includes:
· Tour itinerary on the day-to-day trip
· Stopovers
· Weather conditions
· Safety procedures on the road
· History of the places they will be visiting
5.
Safety is our number one priority during this tour; our well-experienced tour guides will help
our participants set up the bikes custom to their proper height. Also, our participants will be
provided with helmets.
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SPOKE EXCURSION 18
Bike Tour Business Plan
6.
In case our participant gets tired there will be a van that will follow behind throughout the
tour.
7.
The tour will begin on the second day of the itinerary, about 10 AM local time.
8.
During the tour they will be provided with snacks and water. At night, they will be staying in
a deluxe five star hotel and all meals included.
9.
Our tour guides will follow up with our participants if they will want to continue on the tour.
10. After the tour they will be ask to fill a feedback form (they will be posted on the website with
their permission).
11. To follow up with our clients we will be sending thank you mails to them and we will be given
them a discounted rate to our repeat participants.
Risk Assessment
Type of Risks
Strategic
External
-The organization fails to
compete due to the poor
strategy or fails to
differentiate itself to the
competitors
Internal
- The team fails to follow
up with potential
customers with their
inquiries then lose their
interest
- Delivered poor quality
products and services to
the customers
- Lack of collective
research and resources that
can be use to the business
- The industry is
descending due to the lack
of interest
- Failure to thoroughly
organized and execute the
business plan
Mitigating Actions
- Seek consultation to
business advisors to
know how to avoid and
deal with obstacles
- Conduct surveys and
reviews to the public to
get an idea of what the
consumer want
- Take time to talk to
other small business in
the area to absorb
information and advice
-Failure to adapt quickly to - Low quality products and
the growing popularity of
services delivered to the
the industry
consumer
Operational
- Not meeting the require
- Employees’ lack of
-When new regulations
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and is shared only with the understanding that you will not share its contents or ideas with third parties without
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SPOKE EXCURSION 19
Bike Tour Business Plan
permits and licensing
before the day of the
launch
training and experience in and laws arise the
the operations part that can organization must be
potentially endanger the
adaptable to the change
business
- Government restrictions
-Implementing manuals
and political conflicts
- Fail to generate a
and policies to the
might restrict the operation thorough and much details business
from moving forward
company operating manual
Marketing
- Lack in thorough
information and details in
contracts that others might
find loop holes to sue the
business
- New laws and
regulations might develop
that can affect the business
- Failure to provide
employees’ licensing such
as medical information,
Police clearance, work
permits etc.
-Poor response from the
public due to the weak
marketing strategy the
team presented
- Budget cuts can
potentially hurt the
marketing strategy of the
business
-The team will keep
constant update to the
social media and to
potential customers
- Consumers did not
connect to the advertising
or promotional strategies
- Lack of exposure the
team have to the social
media and to the target
market
- Appoint a more
experience marketing
team to strategize the
image of the company
- Lack of details and
giving false information
provided to the website
- Provide an exact
information about the
products to the website
with testimonial from our
previous customers
- One partners takes whole
responsibility for all the
company finance
-Seek financial advisor to
prevent bankruptcy
- Not adaptable enough to
the change in the industry
Financial
- Economic changes can
impact the organization
- Tax credits are too high
to pay
- Constant fluctuation in
foreign exchange can ruin
the financial statement of
the business
- Implementing
mandatory training to the
employees and tour
guides
-Failure to ensure
background checks to the
employees
-Debt is too high than
company revenue
- The business is not large
enough to sustain the
financial burden its
distributing
-Seek financial loans to
the bank that be willing
to lend money with low
interest
- Create a savings
account for the business
incase of a emergency
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the express written consent of the plan author.
SPOKE EXCURSION 20
Bike Tour Business Plan
Hazard
-Natural Disaster
-Extreme weather
-The roads are unsafe for
the participants to ride
(potholes, narrow streets
etc.)
- Areas are too dangerous
and not up to standard to
bring tourists
-Safety (employees, and
clients)
- Get involve to City of
Vancouver Business
Improvement Areas
- Unsafe office space, poor (BIA) to improve and
cleaning maintenance
help the city keep it safe,
(creating mold, dusts,
increase tourism,
mildew, etc.)
increase doing business
in the city and street
- Poor vehicle maintenance beautification
- Communicating to the
building tenant about
thorough cleaning of the
office space and
implementing WHMIS
guidelines
In worst-case scenario the company needs to close down when cash flow is not enough to
support the expenses and debts. The company’s start-up cost is estimated over $100,000 plus
if the company has to take extra loans then fails to break even and pay the debts to the bank.
Subsequently, it will take 7 years for company to file bankruptcy, sell the equipment, close
our office and shut down the website.
Financials
Start-Up Cost
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SPOKE EXCURSION 21
Bike Tour Business Plan
-Bikes: $1,500 each x 15 = $22,500 (bspbikes.com, 2013)
-$600 monthly for 154 sq ft located:22091 Fraserwood Way Richmond, BC.
(vancouver.en.craigslist, 2013) $600 x 2 = $1,200 (First and Last month)
-Reservation Software = $2,500 (www.rezopia.com, 2013)
-5 macbook pro > $1,199 x 5 laptops x 1.3 (13 % Sales Tax in BC) = $7.793.50
(www.staples.ca, 2013) (www.cra-arc.gc.ca, 2013)
-5 desks x $89.94 x 1.3 (13% Sales Tax in BC) = $584.61 (www.staples.ca, 2013)
-5 office chairs x $49.99 x 1.3 = $324.94 (www.staples.ca, 2013)
-Internet installation = (5 x $56.95) + $70.00 + $99.95 -> Telus FlexConnect in BC =
$454.70 (www.telus.com, 2013)
-5 business phones x $59.99 x 1.3 = $389.94 (www.staples.ca, 2013)
-Telus Phone Lines, Installation and Smart Phone Plans for 5 = $485.00 x 1.3 = $630.50
(www.telus.ca, 2013)
-Printer- $99.64 x 1.3 = $129.53 (www.staples.ca, 2013)
-Licences and Permits including registering a partnership business($40) , registering a
business name($30) advertising and recruiting workers = $70
(www.bcregistryservices.gov.bc.ca, 2013)
-Cargo Van = $6,990 (vancouver.en.craigslist.ca, 2013)
-Insurance for Van (Postal Code V6V 0A1 - Richmond, BC) = $2,169 (With a liability limit
of $4.8M (www.bcaa.com, 2103)
-Marketing = $5,236 (website) + $1,885 (Food and Wine Expo Booth) + $14,511 (ad in
magazine) = $21,632 (www.fooandwineexpo.ca, 2013)
-Snacks and water for first month (4 tours) = $15 x 15 customers x 6 days x 4 tours = $5,400
(www.realcanadiansuperstore.ca, 2013)
-Contingency = $10,000
-Storage Unit = $60 (monthly) + $20 (Deposit) = $80.00 (www.surelockministorage.ca,
2013)
Total Start-Up costs: $82,068.58
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SPOKE EXCURSION 22
Bike Tour Business Plan
Breakeven Analysis
Overhead Costs:
Rent- $600/month
Internet- 5x 56.95 (284.75)
Phone lines (Cell and landline)- 630.50/month
Van Insurance- 2,169.00/month
Tour Guides- $90/day x 6 day tour x 2 guides/tour= $1,080 x 4 tours/month = $ 4,320 (based
on wages of tour guides at Butterfield and Robinson, 2013)
Total Overhead Costs- $ 9,084.25
-Hotels: 4 star hotel is $244/night. Our trip is 6 nights = $1,222/trip for
hotels.(www.expedia.ca, 2013)
-Restaurants: Dinner ->$52.95 (4 course) + $50 (bottle of wine) = $102 per dinner. Lunch >$42.00 (3 course) + $50 (bottle of wine) = $92.00 (www.cabanagrille.com, 2013)
Lunch + Dinner for 6 days = (102 + 92) x 6 = $1,164 (www.bouchonbistro.com, 2013)
Restaurants + hotels for each trip = $1,164 + $1,222= $2,386
Average Price of Service
7 days, 6 nights British Columbia Bike Tour Tour $ 3,150
Total Average Price of Product- $ 3,150
Average Cost of Service per Customer:
Hotels = $1,222
Restaurants = $1,164
Guides = (1,080/tour / 15 paying customers)= $72
Van Insurance = 2,169 / 60 (4 tours x 15 customers per tour) = $36.15
Rent = $600 / 60 = $10
Phone Use = $630.50 / 60 = $10.51
Internet = $284.75 / 60 = $4.75
Van Maintenance in first year = $16,669 / 12 months / 60 customers per month = $23.16
Marketing = $21,632 per year / 12 months / 60 customers = $30.05
Snacks and water bottles per day per customer (based on 2 water bottles, watermelon,
croissants, cheese and crackers) = $15 x 6 days = $90
-Contingency Money = $10,000 / 480 customers = $20.84
-Storage Unit = 60 x 12 = $720 / 480 = $1.50
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SPOKE EXCURSION 23
Bike Tour Business Plan
-Health Insurance for 2 employees + 5 owners = $909 / year x 7 = $6363 / 480 = $13.26
(www.kanetix.ca, 2013)
Total Average Cost of product- $2,698.22 / customer
-8 months of tours x 4 tours per month = 32 tours / year
-32 tours x 15 customers per tour = 480 customers
-480 x $3,100 per customer = $1,488,000 - REVENUE
-Expenses are ($2,698.22 x 480 customers) + $82,068.58 start up costs = $1,377,214.18
-Profit for first year is 1,488,000 - 1,377,214.18 = $110,785.82
-Corporate Tax Rate is 26% so $110,785.82 x 0.26 = $28,804.31 (www.kpmg.com, 2013)
$110,785.82 - $28,804.31 = $81,981.51 Profit after Taxes.
Timeline
First Milestone (6-9 Months)
Completed business plan, register business, acquire permits and licenses.
 Get business loans, find office space, buy supplies, hire staff, and get contracts with
hotels and restaurants
Second Milestone (Year 1)
 Spokes Excursions is open for business
 Have a fleet of bikes for every major tour
Third Milestone (Year 3)
 Spoke Excursions well known for luxurious bike tours worldwide
Fourth Milestone- (Year 5)
 Becomes profitable and financially healthy business
Fifth Milestone (Year 6)
 Expand Spoke Excursions by offering tours in many different continents

REFRENCES
1) Street, O. (n.d.). Cycle Tourism. One Street for international bicycle advocacy .
Retrieved April 3, 2013, from http://www.onestreet.org/resources-for-increasingbicycling/143-cycle-tourism
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade secret information
and is shared only with the understanding that you will not share its contents or ideas with third parties without
the express written consent of the plan author.
SPOKE EXCURSION 24
Bike Tour Business Plan
2) Bicycle Tours | Business Idea Center | Entrepreneur.com. (n.d.). Business News &
Strategy For Entrepreneurs | Entrepreneur.com. Retrieved April 3, 2013, from
http://www.entrepreneur.com/businessideas/bicycle-tours
3) Google Trends. (n.d.). Google. Retrieved April 4, 2013, from
http://www.google.ca/trends/explore#q=B
4) Google Trends. (n.d.). Google. Retrieved April 3, 2013, from
http://www.google.ca/trends/explore#q=B
5) Bike Tours in BC | YellowPages.ca™. (n.d.). Find local businesses, products, reviews
and deals on YellowPages.ca - YP.ca. Retrieved April 3, 2013, from
http://www.yellowpages.ca/search/si/1/Bike+T Law, M. (n.d.).
6) Vancouver Bike Paths | Cycling Spots | Popular Bike Rides | bcliving. Recipes,
Healthy Living, Home Decor, Vancouver Restaurants, BC Travel Ideas | bcliving.
Retrieved April 3, 2013, from http://www.bcliving.ca/entertainment/bike-ridersrejoice-the-top-spots-to-cycle-in-metro-vancouver#Vancouver-Bike-Boundary-Bay
7) Vancouver 5 stars Hotels - Book 5 stars Hotels in Vancouver, Canada | Expedia.ca.
(n.d.). Expedia.ca Travel Deals: Book Cheap Flights, Discount Hotels & Vacation
Packages. Retrieved April 3, 2013, from http://www.expedia.ca/5Star-VancouverHotels.s50-0-d178315.Travel-Guide-Filter-Hotels
8) http://www.backroads.com/award-winningtours/search?region=CA&majorSport=&date_type=&lodging=&from_date=&to_date
=&manager=AdvancedSearch
9) http://cyclecanada.ca/Tour_Arctic.html
10) Interview with Simon Elliott, Sales Director of Butterfield and Robinson. Done
during externship inn February, 2013 between Mike Silva and him.
11) http://www.designquote.net/html/dq_estimate_wizard.cfm
12) http://www.foodandwineexpo.ca/sites/foodandwineexpo_ca/upload/pdfs/2013/2013_
Gourmet_Expo_Exhibitor_Details.pdf
13) http://robbreport.com/sites/default/files/static-pages/attachments/2013 Media KitRobb Report.pdf
14) http://www.thejakartaglobe.com/lifeandtimes/discover-a-new-side-of-thailand-onyour-bike/508458
15) http://www.lifesaving.bc.ca/level/cpr-c
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and is shared only with the understanding that you will not share its contents or ideas with third parties without
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SPOKE EXCURSION 25
Bike Tour Business Plan
16) http://www.icbc.com/licensing/
17) http://bspbikes.com/product-list/bikes-1000/road-1001/touring-1004/
18) http://vancouver.en.craigslist.ca/rch/off/3709247387.html
19) http://www.rezopia.com/pricing.html
20) http://www.staples.ca/macbook/directory_macbook_20051_1_20001
21) http://www.cra-arc.gc.ca/E/pub/gi/notice270/notice270-e.html
22) http://www.staples.ca/en/Computer-Desks/cat_CL200370_2CA_1_20001#sortName='price'&sortOrder='ascending'&sortDatatype='number'&pag
enum=1&viewDetails='listView'
23) http://www.staples.ca/en/Task-Chairs/cat_CL200368_2CA_1_20001#sortName='price'&sortOrder='ascending'&sortDatatype='number'&pag
enum=1&viewDetails='listView'
24) http://www.telus.com/en_CA/National/products/Small_Business/Internet_And_Data/I
nternet_Access/details/natSmbHighSpeedInternetAccess.html#tab2
25) http://www.staples.ca/en/Multi-Line-Telephones/cat_CL200790_2CA_1_20001#sortName='price'&sortOrder='ascending'&sortDatatype='number'&pag
enum=1&viewDetails='listView'
26) http://telus.com/en_CA/content/businessfreedom/1.3_AnywherePlus.html
27) http://www.staples.ca/en/Laser-Printers/cat_CL204139_2CA_1_20001#sortName='price'&sortOrder='ascending'&sortDatatype='number'&pag
enum=1&viewDetails='listView'
28) http://www.bcregistryservices.gov.bc.ca/local/bcreg/documents/forms/0708bfill.pdf
29) http://vancouver.en.craigslist.ca/rds/ctd/3736272178.html
30) https://www.bcaa.com/insurance/auto/overview/quick-quote
31) http://www.foodandwineexpo.ca/sitepages/?cid=352&cn=BECOME%20AN%20EX
HIBITOR&an=BECOME%20AN%20EXHIBITOR
32) http://www.surelockministorage.ca/sure-lock-mini-storage-chilliwack-fraser-valleyabbotsford-pricing-online.htm
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and is shared only with the understanding that you will not share its contents or ideas with third parties without
the express written consent of the plan author.
SPOKE EXCURSION 26
Bike Tour Business Plan
33) http://www.expedia.ca/4Star-Kelowna-Hotels.s40-0-d3997.Travel-Guide-FilterHotels
34) http://www.cabanagrille.com/menu.html?section=groupdining
35) http://www.bouchonsbistro.com/index.php/menus/2012-02-08-03-09-44/chef-s-tableof-the-week
36) http://www.realcanadiansuperstore.ca/LCLOnline/flyers_landing_page.jsp?flyerView
=flip&storeId=831
37) http://www.kpmg.com/ca/en/issuesandinsights/articlespublications/pressreleases/pages/canadas-corporate-tax-rate-remains-competitive.aspx
38) www.elsevier.com/locate/tranpol
39) http://www.th.gov.bc.ca/BikeBC/
40) http://www.huffingtonpost.ca/2012/05/15/bikeable-cities-canada_n_1517624.html
CHANGES MADE IN PART A
1. Company history - expand, to shallow
- Bike tours have become a trending travel option especially in the Southeast nation
of Thailand. They have attracted over 12 million visitors from around the world
each year (Jakarta Globe, 2012). The idea came about after research on bike tours
in Canada. Surprisingly, there are very few established bike tour companies in the
Country. Not only do we support the environment but also the economy by
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and is shared only with the understanding that you will not share its contents or ideas with third parties without
the express written consent of the plan author.
SPOKE EXCURSION 27
Bike Tour Business Plan
establishing Spoke Excursion. Bike tours give people the opportunity to engage
with their surrounding environment but also a fun way to participate in a physical
activity.
2. Management - who will be doing what, and what are their credentials
- Spoke Excursion will start as a small bike tour company having partnership within
5 owners who will also act as full-time employees within the company. There are
two part-time employees that are hired from the beginning to guide the tours in
Vancouver. However, more tour guides will be hired for part-time or by contract
for future events and expansion of the company. Plans are to hire a financial
accountant quarterly who will be responsible for the accounts receivable, internal
financial statements and review financial records and transactions. The five
owners will be split into the departments of Sales, Marketing, Operations,
Inventory and Administration. The company will also have to hire a website
designer that will create an interesting web layout that is easy to navigate but will
also intrigue visitors to want to book a tour. The Marketing head will be working
closely with the designer to produce promotional banners, tour details and how the
website would overall fit the image of the company. The credentials of the owners
will be a minimum of a Degree along with at least 3 years of professional
experience in their specified field.
3. Location - online? expand on rationale on not needs a store front
- Spoke Excursions will be have an office located at Richmond, British Columbia.
This office location was chosen because of its clean and professional interiors,
which reflects our company’s luxurious image. It is also located in one of the most
upscale business parks in the Lower Mainland, and is just a few minutes drive
from other major regions, which makes this location central and exclusive. The
office will be used for daily operations, storage of supplies, recruitment and
meetings for marketing events and promotions. We will also be renting storage
space, which is also located in Richmond near the office for emergency purposes
and convenience. The storage space will store the bikes, helmets and other
equipment for the tours.
4. Target market - needs more grounding data related to tourists and engagement in
outdoor activities in BC by both locals and tourists
- BC is a premier biking destination that includes all kinds of terrain from small
rides to larger adventures like the ones we offer. The provincial government has
spent millions of dollars on upgrading older bike paths and building new ones in
an effort to encourage healthy living and sustainability. Biking is steadily growing
not only for recreational use, but for going to work. This increased use offsets the
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SPOKE EXCURSION 28
Bike Tour Business Plan
use of public transportation and helps combat congestion. Also important to note
is that the infrastructure needed for bike transportation is much lower than that
needed for motorized vehicles. (www.th.gov.bc.ca, 2013)
-
Canadians cycle three times more than americans, which shows how much a part
of canadian culture biking is. This mentality favours British Columbians desire for
sustainable businesses that contribute to the local economy and tourist flow. (John
Pucher and Ralph Buehler, 2005). Vancouver and Victoria are even considered
two of the most bike-friendly cities in the country. (Rebecca Zamon, 2012)
5. Price strategy - what strategy are you using based on the class notes?
- We are taking a competitive approach to the tour costs by using value-based
pricing. Since we do charge similar prices to our competitors, we feel that the
prices are fair for the quality of the services we provide. Our competitors typically
do not include meals nor do their clients stay in five star accommodations during
the tours. The value that our clients will receive for their dollar makes it worth
spending slightly more than the competitors charge.
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the express written consent of the plan author.