Turning cycle touring into a business

[hubbike]

Working at a J.O.B is grating on me a bit but I think I know now what I'd like to do with my life...I am planning to start a cycling and walking holiday business.

Initially I plan to use my holidays from work and some weekends. So hopefully next year I can organise a Land's End to John O'Groats trip and a few long weekend trips. I will arrange B&B acommodation and bike hire (if needed). Then I will drive a van transfering luggage between B&Bs and meet the guests for lunch, provide mechanical support, provide tea, coffee, buscuits, etc. I will prepare comprehensive maps, directions and instructions. As a twist I thought I might try to organise an entertainment option each night. Nothing strenuous, maybe a film one night, a bbq another, see a standup or a band, visit a castle or two...people can opt in or out as they choose.

If all goes well I hope to expand to working for myself full-time, taking on staff and running trips internationally.
Now I know this isn't a "business" forum but I am sure that between you there'll be some know-how.

I've never started a business before and I don't have that much money to throw at it (hence not quiting the day job straight away). I thought that at first I could be a sole trader, register a business name and get a business bank account.

I'd welcome any tips, especially:

- Do I need liabilty insurance or will my customers travel insurance suffice?
-do I need to pay an accountant, solicitor etc. How much would all that come to? or should I just do what I can myself?

- I'm confident I can build a website myself and produce written materials etc. but where are the best places to find bookings? where should I focus my marketting efforts?

- Are there any other red-tape hoops to jump through I should be aware of?
- How do I work around the seasonal nature of the business?

 

[snorri]

You could get advice from http://www.scottish-enterprise.com/start-your-business.aspx

 

[david1701]

defo public liability, I'd have trouble getting into some venues without it :s (photographer), but it is cheap.

My advice would be to hit up the FSB as they provide a lot of support and get you deals on stuff like a card machine and business bank account (ours is free with the Co-Op).

Get a website in hand early on as its fairly low whack (either build it yourself or pay a designer for something static for now) as its a place for people to look once they hear of you, also it lets you get decent email addresses, barrysbikes@hotmail.com does not screen professionalism but yourname@yourdomain.com does imo.

Marketing will be hard work because you aren't targetting a geographic area but I think its doable by hitting online communities fairly hard, see if you can get a blogger or two who know their shoot to give you a write up, maybe a free trip (in with a group) for one with a big following to generate some interest.....

 

[Spinney]

Don't rule out camping. Cheaper for the clients (although your fee for making the bookings etc could still be the same). You could start by running camping trips for folks with their own tents etc. What puts me off camping while cycle touring is carrying the weight - if you are providing transport then that disappears.
(The other off-putting thing for me is lack of decent showers etc, but you can sort that by booking pitches at good campsites).

Good luck!

When you get going I can facebook your site (may not get much custom, but if enough folks do it your name will eventually get around!)

 

[hubbike]

I certainly haven't ruled out camping, or perhaps bunkhouses/camping barns, as a cheaper option. Thanks for the facebook offer...going to have to push all that stuff once I get up and running. Blogger idea is also a good one...maybe a photographer willing to get some professional shots could get a discount hint hint?!

 

[david1701]

lol subtle though I don't trade images for camping, maybe 5 star accommodation with dancing girls ono

 

[oldfatfool]

All sorts of insurance and red tape, have a read of this thread http://www.cyclechat.net/threads/what-do-you-look-for-in-a-tour.76168/#navigation

 

[PaulSB]

Regardless of all the ins and outs of setting up a company I feel you need to think hard about your potential customer base. I could be one but u doubt the cycling I would want will appeal to many. Let me explain:

I love touring and try to go once or twice a year. I enjoy the solitude of being alone but also like to meet folk. I want to ride 70-80 miles a day with reasonable B&B at the end if it. Having luggage carried is very attractive but not essential as I can tour with minimal baggage.

When I look at cycling holidays they are firstly very expensive and secondly not hard enough. 40-50 miles a day, which I would finish by lunch. The idea of ambling along at perhaps 10mph puts me off.

This is 'cycling for softies,' which I only use as descriptive not to be disparaging, and I feel potential customers will be looking for high standards and will not be cyclists in the way we may think of ourselves. Therefore I don't feel looking to market yourself on cycling forums is the way to go.

Most touring cyclists like the sense of adventure a tour brings. Trying to sell to folk who already know how to do it will be tough.

You mentioned LEJOG which I have in mind to do. I looked at some organised trips which I think worked out at £12-1500 which for me is way too much. I'd reckon on 12-14 days away at around £50-60 per day.

I applaud anyone with the balls to set up on their own. It takes courage and enterprise. I would urge you to be sure of and understand your market before investing more than your own time and energy.


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I am here: http://maps.google.com/maps?ll=53.702337,-2.588288

 

[Crankarm]

Regardless of all the ins and outs of setting up a company I feel you need to think hard about your potential customer base. I could be one but u doubt the cycling I would want will appeal to many. Let me explain:

I love touring and try to go once or twice a year. I enjoy the solitude of being alone but also like to meet folk. I want to ride 70-80 miles a day with reasonable B&B at the end if it. Having luggage carried is very attractive but not essential as I can tour with minimal baggage.

When I look at cycling holidays they are firstly very expensive and secondly not hard enough. 40-50 miles a day, which I would finish by lunch. The idea of ambling along at perhaps 10mph puts me off.

This is 'cycling for softies,' which I only use as descriptive not to be disparaging, and I feel potential customers will be looking for high standards and will not be cyclists in the way we may think of ourselves. Therefore I don't feel looking to market yourself on cycling forums is the way to go.

Most touring cyclists like the sense of adventure a tour brings. Trying to sell to folk who already know how to do it will be tough.

You mentioned LEJOG which I have in mind to do. I looked at some organised trips which I think worked out at £12-1500 which for me is way too much. I'd reckon on 12-14 days away at around £50-60 per day.

I applaud anyone with the balls to set up on their own. It takes courage and enterprise. I would urge you to be sure of and understand your market before investing more than your own time and energy.


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I am here: http://maps.google.com/maps?ll=53.702337,-2.588288

++1.

 

[lpretro1]

++1.

As someone who set up my own cycling business several years ago (albeit bike repairs not holidays - but I think same applies) can I just add how difficult it was to try and do a 'day job' and in spare time etc start up a business. You end up working 24/7 and not doing justice to either and getting very worn out. I then went part-time on the day job to compensate but it was still the same - just spent a bit more time on the new business. Eventually I bit the bullet and went full time with the business - only then did we really get going.
Insurance is an absolute must and I'd recommend you to consider obtaining the 'Trail Leader' award (this covers road and trail riding). You can do it quite quickly and it doesn't cost too much - see CTC website for details. Then, if you are a CTC member, you can then obtain a good insurance policy for about £50 per year to cover your leading. Having the qualification, whilst not compulsory in any way, and certainly not implying anything about your current capabilities, will make your potential clients feel more at ease as the qualification tells them they are getting someone who knows what they are doing in terms of leading groups. You will still need full public liability insurance to cover the rest of the business. You may also need to contact HMRC as there will be tax implications to cover off.
I agree with those above who have suggested you need a target audience/market. If you don't you run the risk of just flapping about in the dark. With intially limited time to do this you need to be very focussed - so find your niche. There is a lot of well-organised and experienced competition in this service area so you need to find something that is 'different' to make your business stand out and sell it to your customers. It may be an idea to run a short tour or two at cost price with some 'guinea-pigs' to test out how it works. There will be a lot of background organising and admin to do. People nowadays when siging up for an organised tour expect absolutely everything to be done for them I can assure you - and always prepare for the unexpected - where people are involved it will happen!

 

[hubbike]

I am grateful for the replies everyone. useful stuff...

Paul, price and market are obviously going to be tricky to get right. There are quite a few different niches on the market already from luxury to more adventurous.

I've been thinking of several niche markets all have their pros and cons:
- school groups, scout groups, etc
- young families (kid bike features, saftey etc) Lots of paraphernalia associated with kids to kart about in the van.
- special dietry requirements (dairy, wheat, vegetarian, etc)
- cycling, hiking groups and clubs, outdoor clubs,
- corporate groups
- history groups, wildlife groups,
- wine tasting groups.
- proper keen road bikers...
- proper keen mountain bikers...

Ipretro1, very useful/encouraging post. Thanks. I'm thinking "dry run" with a group of friends might be an idea. Also, might throw the door open to bloggers, travel writers, etc. to try to get some excitement going.

And OFF, I remember reading that thread with interest...sure there'll be lots of wading through red-tape but I reckon it's going to be worth it.

 

[lukesdad]

Could an a place for mtb touring though luggage is a real pain there.

 

[jay clock]

it may be a bit obvious but google cycling holidays, cycle touring etc and read every one of the top 100 websites. Know what others are offering. I agree that a cycling forum is an unlikely place to find customers. Anyone on CC is probably capable of going alone (even if not a current tourer)

Just seen your blog and remembered your CGOAB account and stunning snow camping. You have good touring credentials.

Now my final point is a blunt one. Get any website reviewed by a pedant. Your blog has a misspelt heading (explanation) and missing apostrophes on the Mothers' Union. Their logo is correct. Many customers will just not like this. Feel free to say sod off, but it is true, and why risk alienating 5% of readers when getting it right is easy

All the best and I may join you!

 

[dellzeqq]

I'm afraid there's one consideration that really bedevils cycle touring, and that's ABTA bonding. Organising the most homespun of tours can put you within range of ABTA. I wouldn't take advice on ABTA on a cycling forum - I'd ask ABTA

 

[CopperBrompton]

As someone who is coming up to the fifth anniversary of running my own business, I'd say two things. First, that if it is the life you want (and you can cope with the downsides, like silly hours in the first couple of years), then it can't be beat. Second, the vast majority of new businesses go bust in the first year, so don't underestimate the planning and work it takes to make it work.

I'd also think long and hard about why this particular business idea? It sounds like you enjoy cycling and want a cycling-related business for that reason, but actually the job you would be creating for yourself here is office logistics organiser and van driver. Is that what you want to do for a living?

I'd agree with others that this particular idea is a tough proposition. Keen cyclists will organise their own tours, so you're looking at the holiday market of occasional cyclists, and they are next to impossible to identify and target.