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Managing a Business/Electric bicycle manufacturing business.

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Question
Dear Ken

Do you feel that the Electric bicycle manufacturing could be a good Business startup?.

Thanks
Prashant

Answer
Hello Prashant,

Nice to hear from you.

As you know, electric bicycles have been popular in India for quite some time now, as such there are a number of manufacturers competing for business. So you've got a big market, but lots of competition. The two things to consider are: how will you get a piece of the market and how much will it cost you to do it.

To get market share you'll have to have a product differentiator, or compete solely on price--or both. if you've got engineering talent and can come up with unique ideas to make a better/different product you will have an advantage. You will also have to have a low cost way to manufacture the bikes. The established companies have scale and volume to lower manufacturing costs.

Manufacturing is a cost intensive business. You must invest in inventory and labor, which can drain cash very fast. Whatever money you think will be required will not be enough. There are always unanticipated and hidden costs that can increase your investment and delay profits.

Before you do anything, I would write a business plan. There are lot's of good software packages available for business plans (just look online). Going through the planning exercise will tell you what you will need to start and grow the business for the first five years.

I hope this helps.

Warm regards,

Ken  

Managing a Business

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Ken Tasch

Expertise

My business and management expertise covers: Strategic Planning Business Operations Marketing/Sales/Business Development Manufacturing Engineering

Experience

I've started multiple businesses and managed others businesses, as president, in my 45 year career. I've worked for large multi-nationals as well as small businesses, both public and private. I've written an eBook on business capture management which can be found on my Web site: www.goLAUNCHsales.com. I am finalizing a general business book which I plan to publish this year. The book is an encyclopedia of business information.

Organizations
I'm a top contributor in LinkedIn's Harvard Business Review Group. I co-manage The Cultural Heritage Business & Law World Forum.

Publications
The Harvard Business Review is publishing a short piece on innovation in the upcoming September edition.

Education/Credentials
BSME Mechanical Engineering Non-degree graduate work at the Thunderbird School of Global Management

Past/Present Clients
I formally retired from the corporate world last year. I've since started a consulting and executive coaching business called LAUNCH™ Business Consulting. Information on all my current clients is confidential.

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