论文 Campus Bicycle Rental Service ProjectVIP

Campus Bicycle Rental Service ProjectProposal For Bicycle Rental StorePrepared Expressly forJun LiangDirectorYinghua Branch OfficeBank of CommunicationBy Haiqing Wang and Xin DuanClass 2Executive SummaryA bicycle rental store will be opened in Tianjin Binhai Polytechnic College. As the term suggests, the store is established to provide bicycle rental service for customers. The bicycle rental store will be located near the southern door of Tianjin Binhai Polytechnic College. The area is about 200 square meters and the customers include students, teachers, staff and even residents living near the college. The project will bring overwhelming increase in revenue and profit when it is implemented. Now, the store needs a loan of 80,000yuan to rent the yard, model the store, purchase equipment and offer other relative services. After the calculation, the loan will be paid off in five years. There are 3 kinds of bicycles in the store to adapt to a wide range of market needs, including common bicycles, electric bicycles and double person bicycles. Common bicycles and electric bicycles are for general trip and double person bicycles are for entertainment, mainly aiming for lovers and friends.Near the university, there are a few entertainment places. So cycling will be a very good choice for students to entertain themselves. In a word, the store will surely satisfy the customers needs, and increase the revenue as well as profit and improve the financial statements at the same time.The bicycle rental store, a privately owned, on-campus store at the College of Tianjin Binhai Polytechnic College, mainly aiming at students of the college. When they go to a nearby place, they can rent a bicycle but not take a taxi or wait for the public bus Thus they will save some money and it may be more flexible. According to the questionnaires, the business time will be laid down of 9:00am to 8:00pm in spring, autumn and winter, and 9:00am to 9:00pm in summer. For the sake of the bicycles, a contract will be made between the owner and customers. If the bicycles are lost or damaged, they should be compensated reasonably. This will be good for protect the bicycles and avoid dispute between customers and the owner.Two part-time students will be appointed to help the owner in managing the store. They will be paid about 8,000yuan for a year. They will work in their spare time. The following are the main reasons why this decision is made.l The number of buses near the university cannot meet the teachers and students transportation demand. Students and teachers often express their dissatisfaction.l Locating at the beautiful Tianjin Coastal New Area, there are a lot of scenic spots around us, so traveling by bike is a good choice to go out. For example, Forest Park and Jinhai Lake are good places to relax ourselves when we are free, but there arent direct buses. With its natural advantages, cycling is the cheapest and most convenient way to go out. The price is lower than taking a taxi and at the same time it is more flexible than by bus.l Most students dont buy a bike because they just need it occasionally but not all the time. Buying a bike means an unworthy expense for them. On the other hand, there is no suitable and safe place to park their bikes.In a word, providing bicycle rental service in the university is an urgent task. Besides, there will be many advantages supporting the store.l The bicycle rental store will adopt low-price model to lower the price actively in order to attract more customers and expand the market share. l The store is mainly established and managed by students of Tianjin Coastal Polytechnic University, so there is a profound customer base. l By virtue of the great advantages of publicity in the campus, such as university website, Baidu post bar, micro-blog, more and more potential customers will be found. There are a large number of students in the university but less ownership of bicycles, so the market potential is very great.l With more and more students concerning about their health, various biking clubs will be established. There are a lot of cycling activities will be held by the rental store to increase rental rate and generate more profits. The Premise and FacilitiesConsidering the price and convenience, a 200-square-meter place near the southern school gate will be rent and a simple bicycle shed will be installed. It is 20 meters long, 10 meters wide and 4 meters height. The annual rental cost is about 10,000yuan for such a yard. In this place, the bicycles are parked in three lines for the three kinds of bicycles respectively. Besides, some bicycle frames and thermal equipments like kneepads, self heating gloves will be bought. Bicycle frames are used for storing the bicycles and thermal equipments are helpful for attracting customers when the weather is not ideal. This measure will let the store close to the customers heart. Surely, several lights will be installed in the top cap. Besides, a computer and a printer should be bought to record the business situation.Cost Breakdown Rental cost: The yard will cost about 10,000yuan to rent each year. Modeling: The purchase of facilities and the labor cost would be 7,000yuan.Labor cost500Bicycle shed5,000Bicycle frame1,000Design layout of the store500Equipment: The cost of bicycles would be 36,600yuan.20 common bicycles6,00010 electric bicycles15,00010 double person bicycles5,000Computer & printer10,00010 sets of kneepads30010 sets of self-heating gloves300Budget: The annual increase in the operating budget would be 21,906yuan.Wages(2 part-time students)8,000Utilities2,000Equipment maintenance1,000Consulting fee and market research1,000Tax 127,800*6%=7,668Consulting allowance127,800*1%=1,278Interests of loan 80,000*6%/5=960Total Cost Of ProjectInitial cost:equipment36,600Modeling 7,000Sub-total43,600Recurrent costs:Rental10,000Operation budget21,906Sub-total31,906Total cost75,506Benefit On the basis of 36 weeks business time at school, 40 bicycles in the store, it is priced 0.5yuan/hour for common bicycles and 1yuan/hour for electric bicycles as well as double person bicycles. The price is so economic that many people will choose the way to go out and the store will bring in huge potential business effect indeed. When it runs well, Bicycle trade will be considered to get more profit. In the first year, the profit is about 52,294yuan, and in the next years, it will increase to 95,894yuan. Considering the latter cost, we plan to pay back the loan from the second year. So we can pay off the loan in five years. Namely, 20,000yuan will be paid back to the bank each year.ScheduleThe preparation work will be completed in 13 weeks, one week to identify and negotiate the rental of the place, one week to decorate it simply, then buy bicycles, employ assistants, pronounce the store by holding activities. When holding the activities, we can cooperate with mass organizations in the school. During the activity time, we will accept VIP members for our store. They will enjoy cheaper service in appointed time. Then the store will go into operation.I strongly believe that this plan would enable us not only to meet the demands and needs of the customers on the campus, but also of those in this area. After all, there are no other bicycle renting stores around the university. But many residents have no private transportation tools. They can rent the bicycles from the store to pick up their children, to do physical exercise and so on.Customer profiles The majority of the customers of our store are the following persons:l Students for personal use, who account for eighty-five percent of the customers.l Students for group use, such as students union, classes, and so on. However, the number of group using bicycle rental is growing up faster than that of personal use because more and more students organizations choose group activities like a short trip to go out around strengthening their relationships and group bicycle rental service have provided a quite nice choice.l Teachers. Teachers and students share the almost same life style at the school. Bicycles may also occasionally be used by them, which the bicycle rental service would provide a convenient choice. l Staff working in the canteen, small stores and so on. l Residents living near the university. Focus groupsTo get a clearer idea of the views and opinions of customers, these focus groups were organized. The focus groups were as follows:l 60 students（standing for 5,000 students) l 10 teachers (standing for 300 teachers)l 10 staff working in the school (standing for 100 staff)l 40 residents living near the school (standing for 1,000 residents)It was felt that each of these categories of customer might have different expectations, views and needs, so separate focus groups would be desirable. Because of the different demand on bicycles, they were set into different groups to make the discussion. A basic list of questions was prepared, but the discussions with each focus group were allowed to be free and open. Questions 1. Do you often need a bicycle?A. Yes B. No 2. Do you have your own bicycle？A. Yes B. No3. Which one is your current identity?A. Grade One student B. Grade Two student C. Grade Three studentD. Teacher E. Resident F. Staff3. How long do you want to rent a bike in a week?4. Do you think it is reasonable to charge 0.5yuan for an hours common bicycle renting and 1yuan for an hours stunt bicycle, double person bicycle and electric bicycle renting?A. Yes B. No 5. Which one is your ideal business hour?A. 9:00am - 20:00pm B. 9:30am- 20:30pm C. 10:00am - 21:00pm6. What additional services would you like to enjoy in the rental store? 50 pieces of questionnaires were sent out, in which 20 pieces was sent to students, 10 was sent to teachers, 10 was sent to staff, and the other 10 was sent to the residents near the school. After collecting the questionnaires, we find that students in Grade One and Grade Two need the service more than Grade Three. In the population of potential customers, the average demand time in a week is about 5 hours each person. Others prefer to choose the other transport tools.Focus groupCategory of each groupPersons standing forThe kind of bicycleCost/each week/personAnnual cost/personAnnual cost/persons represented603 250Commonbicycle5*0.55*0.5*365*0.5*36*250=22,5003 250Double person bicycle5*15*1*365*1*36*250= 45,0003 250Electric bicycle5*15*1*365*1*36*250=45,00051 4250 00010 teachers00Commonbicycle00000Double person bicycle000130Electric bicycle5*15*1*365*1*36*30=5,4009270 00010 staff110CommonBicycle5*0.55*0.5*365*0.5*36*10=90000Double person bicycle00000Electric bicycle000990 00040 residents00CommonBicycle00000Double person bicycle000250Electric bicycle5*15*1*365*1*36*50=9,00038950 000From the table, we can calculate the total cost of all the customers in each year as follows: 22,500+45,000+45,000+5,400+900+9,000=127,800yuanSo the revenue of the first year is 127,800yuan, profit=revenue-cost=127,800-75,506=52,294yuan In the second year, if the revenue does not change and the total cost decreases,Profit=revenue-cost=127,800-31,906=95,894yuanIn the third year revenue=22,500+45,000+45,000+5,400+900+9,000=127,800yuanProfit = revenue-cost=127,800-31,906=95,894yuan In the fourth year revenue=22,500+45,000+45,000+5,400+900+9,000=127,800yuanProfit = revenue-cost=127,800-31,906=95,894yuanIn the fifth year revenue=22,500+45,000+45,000+5,400+900+9,000=127,800yuanProfit = revenue-cost=127,800-31,906=95,894yuan The profit in the first year is 52,294yuan, in which 31,906yuan can be used in the second year, if we obtain the profit of 95,894yuan in the second year, 20,000yuan can be used to repay the loan, it is the same as that in the third year, the fourth and the fifth year, i.e. 20,000yuan can be used to repay the loan in the next three years. Therefore, the loan 80,000yuan borrowed from your bank can be repaid in 5years. SWOT AnalysisStrengthsl With its natural advantages, cycling is the cheapest and most convenient way to go out. The price is lower than taking a taxi and at the same time it is more flexible than by bus. l The bicycle rental store will adopt low-price model to lower the price actively in order to attract more customers and expand the market share. l The store is mainly established and managed by our students; there is a profound customer base.l By virtue of the great advantages of publicity in the campus, such as Baidu post bar, micro-blog, more and more potential customers will be found.Weaknessesl Management. We have limited management skills.l The store will be established mainly by students, for the investment of space and 40 bicycles, they may face financing difficulties, and also their tolerance capacity for market risks is fragile. l Safety risks. It is hard to identify responsibilities when bicycle was lost or some accidents happened during the lease time.l The business scale of the rental store is still small, for its business could not cover more places; its not convenient for rent and return. Opportunitiesl There are a large number of students in the university but less ownership of bicycles, so the market potential is very great.l The campus is located at the beautiful Tianjin Binhai New Area, there are a lot of scenic spot around, traveling by bike is the best way to go out.l With more and more students are concerned about their health, various biking clubs were established. There are a lot of cycling activities could be held by the rental store to increase rental rate and generate more profits. Threatsl Campus Bus still has a great impact on the bicycle rental business, and so does the taxi. l There is much windy weather in a year in Binhai New Area, which is not very suitable for bicycling. l As the campus bicycle rental market is huge, there will be other competitors to access into this field. l Total number of 40 bicycles is not very easy to take care of and could easily be stolen. Risk analysisBefore putting the plan into practice, the management finds that the following problems might affect the successful completion of the project. These problems, also called risks, generally fall into 3 categories.l People -relatedThere may be few customers, especially when the weather is too cold.The new employees may not good at managing the store.l Time-relatedSome customers may come back late beyond our business time.l Product-relatedThe bicycles may be lost or damaged by the customers.Since its impossible to eradicate all these risks, the management thinks out some solutions to release our damage.l People -relatedWhen the weather is cold, free Thermal equipments can be provided for our customers. At the same time, some activities can be held to attract customers, like bicycling matches.Train the employees before starts.l Time-relatedTake off some of their margins reasonably.l Product-relatedIf the bicycle is lost, the customer has to pay for it. If it is damaged seriously, it should be compensated.After the risk analysis, the store manager thinks three more items should be added to the total costs:Utilities 2,000yuan per yearMarket research 1000yuan per yearContingency allowance 1000yuan per year Action planAction PlanIt will take 13 weeks to implement the project when it has been approved.l By the end of Week OneIdentify and negotiate the renal of the place.l By the end of Week TwoDesign the store layout.l By the end of Week ThreeOrder utilities (include bicycle shed and frame, kneepads, self-heating gloves and so on).Sign contract with contractorl By the end of Week FourStart the decoration of the shopSelect consulting groupl By the end of Week FiveHold first consulting meetingl By the end of Week SixOrder new bikes on suggested listRecruit staffl By the end of Week SevenStart training the staffl By the end of Week TenCheck and accept workPublicize on campus and nearby residential areal By the end of Week ElevenGet the new utilities delivered and installedl By the end of Week TwelvePut all bicycles in the framel By the end of Week ThirteenClean the store and hold opening ceremony ACTIVITY FLOW CHARTWEEK13WEEK 12WEEK 10WEEK 11WEEK 9WEEK 8WEEK 7WEEK 6WEEK 5WEEK 4WEEK 3WEEK 2WEEK 1Clean the store and hold opening ceremonyPut al