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Wheels on fire
Business Plan
Ibrahim Khalil

Executive Summary Page 3
2.1 Business Details Page 3
2.2 Personal Profile Page 4
2.3 Business Idea Page 4
2.4 SWOT Analysis Page 5
3.1 Target Market Page 6
3.2 Current Market Competitor Analysis Page 6
3.3 Market Research Page 8
3.4 Market Survey And Results Page 8
3.5 Marketing Mix Page 9
4.0 Legal and Regulatory Page 10
5.1 Financial Information Page 11
6.1 Overview Page 12
6.2 Profit and Loss Account Page 12
6.3 Profit and Loss Breakdown Page 12 and 13
Appendices Page 14,15 and 16
1.0 Executive Summary
The aim of this report is to investigate how the organisation generates its money and what their business idea is about. The research will be conducted through survey and also desk research
2.1 Business Details
The aim of Wheels on Fire is to create a stable network of experienced and inexperienced mountain bike cyclists. This business will help improve people who want to get out and enjoy the scenery around Scotland. Scotland is one of the best places on the planet for mountain biking due to the forests the Loch’s and also the mountains. They will also provide information about health and safety as it is really important on not getting injured during cycling. This business is also environmental friendly as everyone is riding bikes and not a car therefore not releasing any carbon footprint within the atmosphere which will give the organisation a good reputation and a good image for them caring about the environment
Wheels on Fire seeks to improve and promote access for mountain bikers who live and ride within the scenery of Scotland, they would also love the support from other bikers who come to Scotland to join and expand the group.

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Their intention is to deliver the objectives through strategies such as:
Start to build a working relationship with landowners, authority and pressure group that may have a direct/Indirect impact to mountain biking in certain location such as trails, country parks etc.

To support people in whatever way possible such as teaching them how to maintain their bike in a good shape and to upkeep the development of ridable mountain biking trails in the locations which are suitable for mountain biking.

To help promote premier locations which are suitable for mountain biking, to do this we can open up a Facebook page or twitter and share the locations online so that people who want to do mountain biking know that they exist.

To recreate routes and connect any dead ends, this will enable riders to achieve the most from their journey from the widely connected trails within the mountain biking area
In the future Wheels on Fire will be looking to diversify into new biking services and also operate around the whole of the UK and not just Scotland this will allow more people to join and support the organisation.

2.2 Personal Profile
I have personal experience within mountain biking as I usually go out with some of my friends who also enjoy doing mountain biking. Within our group, we go to trails in places such as Loch Lomond and also country parks within the city such as Pollok Country Park. I think that I am suitable for taking the business forward because I know what I’m coming up against and I know what am doing when it comes to mountain biking as I have experience.

2.3 Business Idea
The main purpose and intention of setting up this business are to make a profit by offering consumers courses that they can book and fulfil the needs and wants of mountain bikers who want to get out and enjoy the scenery of the national parks, countryside etc. We can make apparel such as clothing, bottles, accessories so that the people who take on our group can feel as part as of a team and they are easily recognised from other riders as they are a part of us. In order to carry out our aims and objectives of our mountain biking club, we can receive funding from the government such as grants which will help get our business off the ground and up and running. People can donate to a specific cause through special events that we may carry out. Wheels on Fire can increase the awareness of the business through events such as doing a 20- mile ride for Cancer Research UK by doing this it will give our business a good reputation and will improve our business image and what we stand for therefore more consumers will know about our business. When our business expands we will diversify into different segments of biking such as road biking, race biking, city biking and also may diversify into different activities such as hiking, climbing canoeing etc. by diversifying into different activities it may attract a different target market who may want to carry out these activities. Wheels on Fire plan on making money through bike rentals which will be given to consumers who don’t have a mountain bike and also plan on making money from the trails and events that they will carry out, this will be calculated on the distance and the time of the trails. Wheels on Fire will be looking to rent out buses/coaches for those consumers who have the lack of transport, this will allow the organisation to grow from different places within the country and also allow them to reach one of their objective growth.

2.4 SWOT Analysis
An upcoming organisation can use a structured decision-making model known as a SWOT, this allows the business to look at their internal strengths and weaknesses and external opportunities and threats.

Biking is simple and a lot of people know how to ride a bike there’s also a low-impact means of exercise which means people of ages can enjoy it.

Offer consumers clothing apparel and also bike accessories for their bikes
We can offer bike rentals to those who can’t afford a bike and want to ride casually and not worry about buying one.

There are lots of locations for mountain biking such as trails, parks etc
Offer transport to consumers who don’t have transport
We have a lack of reputation due to the business just being setup
It may be hard to attract loyal consumers
There are a limited number of bikes to rent out to customers due to the business just starting off.

An initial investment is needed to get us off the ground
The numbers of tourists within Glasgow has risen which means more consumers may want to be interested in joining the service
There is an increasing trend of an active lifestyle which suits different people.

Opportunity to expand into a different biking segment such as road biking.

The organisation can take advantage of the internet and can promote the business through sites such as Facebook, Twitter and also Instagram. The business can also set up a website for consumers to book courses on their and schedule it.

Expansion and diversification into different types of cycling
Sponsorship deals with apparel organisations.

Competition in places for mountain biking such as hiking clubs and also abseiling activities and also the existing competition of other mountain biking organisations.
Another threat can be the weather for example in extreme conditions the organisation may not be able to carry out their service due to flooding which may cause problems and people may get in accidents.

Prices from different merchants on biking apparel due to the quality of the type of clothing
3.1 Target Market
Wheels on Fire mountain biking service which is targeted at every one of age groups, but more specifically the business is targeting those who love biking, those who love being outdoors and those who want to be physically active and healthy. Another target market who may be interested in the mountain biking service is tourists who want to explore and who are adventurous. This is due to Scotland being known for its Loch’s and its mountains.

3.2 Current Market and Competitor Analysis
Swot Analysis on Competitor (Glasgow Nightingale CC)
At a suitable location for road biking
Has a large amount of support from people within the club
Has their own apparel gear and is sponsored by HSBC UK BRISTISH CYCLING
They have their own website which is easy to navigate and has pictures of the club and they have pictures of their apparel
They have their own app so their club members can use it to check when events may be on
Low international awareness
There may be a distraction of another well-known mountain biking club which may hinder Glasgow Nightingale CC
New entertainment trend for people who want to be fit and healthy
Increasing the awareness of road cycling sports internationally.

There is a lot of competition outside road cycling such as mountain biking and other activities such as hiking and abseiling
Road cycling is a relatively a weak sport
There may be an increasing competition with the road cycling field
2nd SWOT Analysis on Hiking Competitor (
For my 2nd SWOT analysis on my competitor I will be looking at a hiking club which operates within Scotland.

They can offer to pick you up from your hotel therefore getting to there shouldn’t be a problem
Good air/water quality
Scotland is lush and green and can be a great place for hiking, also the customers can enjoy the scenery
Too much public land which allows other people to take advantages of different activities such as mountain biking, abseiling etc
Remoteness to emergency services in case of an accident
Lack of hiking trails
Develop Different trail systems for different user group
Getting grants or other sources of money for new and existing projects
Develop better communication with seasonal residents who use their services
Weather may be bad in some days so hiking on certain dates may be cancelled
Conflict with other people who are doing other activities such as mountain biking or abseiling
There may be a lack of future funding from the government
Conflict with local residents and land owners
3.3 Market Research
Primary Research
Wheels on Fire carried out a survey on 16 people to see what they think about the cycling and mountain biking territory, here is the survey that they carried out on survey monkey As you can see from the research they did they found out most people who are into cycling mostly do mountain biking and own a bike. As for question 6 it shows that the majority of consumers who travel the most out of their ride, the business can use this to meet their needs by looking at trails and journeys this long which will suit their needs. Wheels on Fire can offer bus or coaches to drop consumers at trails if consumers can’t find their own transport up to the location regarding to question 5 as in how consumers get to their location and what sort of transport they use. This will allow customer to be satisfied with their service and wouldn’t need to worry about reaching their destination.

Secondary Research
Wheels on Fire did field research and have gathered that the biking sector is in growth in the UK – The sector for biking is expanding as there are new bikes being created. For example, one of these new bikes being created is an eBike, an eBike is a bike that can be powered by electricity and can be forced by using the pedals on it. They intend to find what customers want from second hand research as in statistics which were already obtained for the target market that I’m looking at such as tourists.
The business can use to look up locations for mountain biking and trails so that they can make the most out of their journey.

3.4 Market Survey And Results
Wheels on Fire carried out a survey to gather more information about the mountain biking market, From the Question 1 Results (Appendix 1) it shows us people who own or regularly use types of bikes 75% of people use a mountain bike. From Question 2 Results (Appendix 2) it shows us people who used to compete in mountain biking and people who still do, 37.50% currently compete in mountain biking and other 50.00% used to compete but they haven’t anymore. Question 3 tells us about how many times they used to go mountain biking (Appendix 1) the majority go every week or a couple of times a month.

3.5 Marketing Mix
Wheels on Fire will be promoted through leaflets which will be handed into different communities so that consumers know that the business exists, this is so that the business can have a few members to help start get the business running. Another way that Wheels on Fire will promote is through the power of technology such as S-Commerce, S-Commerce is the use of marketing the organisation through social network websites such as Facebook and Twitter. It also allows the consumer to reach out to the organisation and recommend an idea or if they have a question with something they can email Wheels on Fire and they can reply to them which will satisfy the customers and meet their needs. The business will have its own Facebook page and it will keep the club’s members informed on any change of the business. An advantage for using Facebook to promote the business is that the Facebook page can be shared so people who like mountain biking may be interested in what the business can offer and what they do. On the Facebook there are star ratings on the page this means if the business has a lot of 5 stars and people leaving reviews on their experience with the business it may give the business a really good image and it will build its reputation allowing more people to be aware. Another way of promoting the business is through this website This website allows the business to create its own website for free which will mean club members and also new members can go on and see what trails and what journeys they can offer. By using the website Wheels on Fire can promote its own apparel such as bottles and clothing which may appeal to all people within the club and by promoting its apparel a large variety of people may notice it through the promotions which is used to promote the product so it has a sense of a brand image.
Wheels on Fire provide not only a service but also a product as well. For the mountain biking service, they can offer a variety of tours such as adventurous tours and also themed tours but it may cost more depending on what the theme is and how long the journey is. The product that the business will be providing is apparel such as clothing and bottles this will be designed by us but sold on a different apparel website which specialises in the design and clothes being provided. Another Service which they will be providing is a minibus rental service which will allow consumers to pay to take them to location if they have the lack of transport which is needed to reach their destination.
The place of the product and service will be sold on the company website, the website will be the best place to sell the product and service as its all 100% secure payments and also that refunds can be issued to consumers if they were unhappy with their service. Wheels on Fire has a good imagine and a good reputation for the caring of the environment, an advantage for being environmental friendly is that awards can be granted which can be used for promotional purposes.
Premium pricing will be used to price clothing apparel such as jumpers, bottles. By using premium pricing it shows to the consumer that the clothing and apparel has a sense of quality therefore it lasting for a long time.
For the mountain biking service Wheels on Fire will use penetration pricing. By using penetration pricing it allows the consumers to pay a low sum of money to try out the service and see the organisation is worth the money and then overtime the price will gradually start rising. A benefit of using penetration pricing is that the organisation can reach its sales maximisation as the price start off low.
Wheels on Fire can also sell their services by depending on the length of the journey and on how long it will take for them to finish their journey. Price’s will be accounted for each biker and if they travel in group there may be discounts to encourage the consumer to spend more.

Wheels on Fire will also be looking at making money from the Minibus rental service that they offer this allows people who don’t have transport to pay and they would be taken to the location. The price of each person will be £5.00 for travel and return.

4. Legal and Regulatory Considerations
Mountain Biking can be a really dangerous sport, one of the considerations to take on about it is health and safety. For example, you need a helmet when you’re riding on trails to make sure you don’t severely hurt your self during an accident. Another consideration of health and safety is to pick out the right gear when riding to minimise injuries in a case of falling off your bike, some of the items to consider buying when mountain biking can be:
Gloves – To give your hand a good grip on your bike and also to protect your hand against scrapes and blisters
The right pair of shoes – To give you a good grip of your pedals when riding in rocky parts and prevent the laces from getting caught with the chain during the ride so you don’t fall
Protective Glasses – To protect dust from getting in your eyes, small pieces of debris when you ride and also sun glare when you’re riding.

Depending on the weather and the terrain it may also be worthwhile investing in padded shorts, body armour and also shin protection.

One of the legal requirements for biking is that it is illegal to ride on public roads without two efficient braking systems, one independently on the front and rear wheel of the bike. If the cyclist does not have two proper working breaks he can find himself in an accident which may endanger him and others who are around him.

Cyclists should be aware of the 1861 against people Act. This law states “that having the charge of any carriage or vehicle, shall by wanton or furious driving or racing, or other wilful misconduct, or by wilful neglect, do or cause to be done any bodily harm to any person whatsoever, shall be guilty of a misdemeanour, and being convicted thereof shall be liable, at the discretion of the court, to be imprisoned for any term not exceeding two years”
-669006348653005.1 Financial Information
Financial Projections
-704850276225006.1 and 6.2 Overview and Profit and Loss Account
6.3 Breakdown
At the start of the business Wheels on Fire put every funding they had in the first month on expenditure such as buying the bikes so that they can rent it out to the consumers when they’re at the mountain biking trails and also spent money on apparel clothing also that they can promote and sell it on site to see if the consumers were interested in buying them. From June to August sales were at its peak due to the fact of the weather summer brings. This has allowed the organisation to maximise it sales and profit and take advantage of the weather as mostly people will be outdoor in the summer and would like to be doing fun activities within those months. From the sales it shows us that the long-sleeved jersey for mountain biking was their biggest hit, the organisation had to keep up with demand by purchasing more of that clothing as you can see in July and August. Wheels on Fire had to buy more Carrera mountain bike to keep up the consumer demand they had as most people who showed up didn’t own a bike so Wheels on Fire had to account for it, as you can see from May to December wheels on fire bought 7 extra bikes to rent out to consumers who don’t own a bike. As Winter approaches sales begin to drop due to weather conditions as that rain and snow can impact mountain biking, this is a massive disadvantage for the organisation as they can’t meet their objectives such as maximising sales or growing as weather conditions are affecting the business. As the business is approaches the spring season sales begin to rise back up to what it normal used to. Wheels on Fire also spent money on purchasing flyers so that they can promote their organisation and let people know that it exists which may attract consumers into the organisation. At the end of the year Wheels on Fire made a profit of £611.41 and also a cumulative profit of £204.33.

Appendices 1
8699534544000Q1 Results
-5850862670190Q2 Results
Q3 Results
Appendix 2
-226695441325Question 4
Question 5

-234315307975Question 6
Appendix 3
-432302387085Question 7

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