Bike Repair Shop
High margins on parts and labor in a booming bike commuting market
Bike repair shops service bicycles for commuters, mountain bikers, and casual riders. Revenue comes from hourly labor (tune-ups, brake work, drivetrain service) and parts sales (chains, brake pads, tires, components). With urban bike commuting growing and e-bikes accelerating demand, margins are strong and repeat customers are reliable. Shops range from small one-person operations to multi-bay locations with 3-5 mechanics.
Avg Revenue
$550K
Profit Margin
42%
Acquisition Multiple
2.5x - 4.5x
Startup Cost
$30K - $120K
Difficulty
2/5
How It Works
Customers book service appointments (tune-ups $50-$100, drivetrain service $60-$150, wheel building $50-$200) or drop in for quick fixes. Shops stock common replacement parts (tires, chains, brake pads, grips) and order specialty components on demand. E-bikes and commuter segments drive steady repeat traffic. Upselling maintenance contracts and new bike sales add margin.
Revenue Range
Real Acquisitions in This Category
SBA 7(a) change-of-ownership loans · NAICS 811490 · Other Personal and Household Goods Repair and Maintenance
Deal Size Distribution
Deal Flow Over Time
Financing Profile
Recent Comparable Deals
| Closed | State | Loan | Implied deal | Jobs | Franchise |
|---|---|---|---|---|---|
| Dec 2025 | FL | $1.2M | $1.5M | 2 | — |
| Dec 2025 | FL | $50K | $59K | 2 | — |
| Nov 2025 | FL | $910K | $1.1M | 6 | — |
| Jun 2025 | TX | $156K | $184K | 16 | ASP - America's Swimming Pool |
| Feb 2025 | IL | $45K | $53K | 2 | Oxi Fresh Carpet Cleaning |
| Jan 2025 | CA | $4.7M | $5.5M | 10 | — |
| Jan 2025 | CA | $350K | $412K | 10 | — |
| Jan 2025 | CA | $995K | $1.2M | 11 | — |
| Dec 2024 | PA | $215K | $253K | 1 | — |
| Dec 2024 | TN | $485K | $570K | 30 | — |
Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.
Pros
- +40%+ margins on parts, 60-75% on labor
- +Repeat customer base — people ride year-round
- +Growing e-bike segment creates higher-ticket service calls
- +Can operate from small 500-800 sq ft storefront
- +Online communities and local cycling groups drive word-of-mouth
Cons
- -Requires trained mechanics — hard to scale without good staff
- -Low average ticket ($80-$150) means volume is critical
- -Seasonal peaks (spring/summer) and winter troughs
- -Big-box retailers (Walmart, Dick's Sporting Goods) undercut on commodity services
Best For
Mechanics with cycling passion who enjoy building relationships with a loyal community and can teach others
Operating Costs
Main costs are storefront rent (if not home-based), bike repair stand, tools ($5K-$15K), parts inventory, mechanic wages, utilities, and insurance. A solo operator can work from a garage; multi-mechanic shops need higher-traffic retail footprint. Inventory management is critical — slow-moving parts tie up cash.
SBA Financing Estimator
Adjust the deal — see if it cash flows after debt service
Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.
Where to Buy
Marketplace listings for existing bike repair shops and full-service bike stores
Wholesale supplier connections for approved service shops
Training resources and certification for professional bike mechanics
Acquisition Score
Scores margin (30), entry multiple (25), SBA market depth (20), category risk (15), and deal momentum (10). Higher = better acquisition candidate.
Quick Facts
- Category
- physical
- Difficulty
- 2/5
- Buy price
- $1.4M–$2.5M
Buyer's Toolkit
Essential tools to get started
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Largest business-for-sale marketplace in the US
SBA loans and business acquisition financing — get funded fast
ROBS financing — use retirement funds to buy a business tax-free
Bookkeeping for small business owners — hands-off financials
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