Sporting Goods Retail Store Business Plan

Sporting Goods Retail Store Business Plan

This business plan aims to secure a conventional loan of seven-hundred thousands dollars ($700,000 to $880,000) from a financial institution for the purchase of assets in Sportsuchtig. Johnson Sporting Goods, LLC, a limited-liability company created for this purpose by John Johnson and Lisa Johnson, will purchase the business. The business will continue to be known and operated as Sportsuchtig.

Sportsuchtig sells high-quality sporting goods equipment for all ages. They specialize in softball and baseball equipment as well as apparel and accessories from major brands like Easton, Louisville Slugger and Worth. In 1986, the company opened its first retail store. It then launched an online sports store in 1996. The 7,400 square-foot facility, which houses the retail store, call centre, office, product warehouse, and office, currently has 10 employees. The company has achieved an average annual sales of $2.5million and a gross profit of 25% over the last three years. 52% of its sales came from the website while 48% were generated through the retail store.

Sportsuchtig has produced verifiable pretax income in excess of $194,000 annually over the last three years. Total owner&#8217s benefit averaged more than $323,000. This business is strong and well positioned for rapid growth. This business plan is expected to help the business reach a revenue of more than $5 million within five years. The projections for sales growth are that they will grow at 20% per year in years 2-5, while being flat in the first. This growth forecast assumes the company is aware of these key opportunities and takes action.

  • Redesign, upgrading and marketing an Internet store.
  • Relocation of the existing retail shop.
  • Additional product lines available for other sports than softball/baseball.
  • To gain a substantial share of the team’s sales market, create an outside sales team.
  • Optimization of inventory buying, management and tracking

We plan to move the business towards the end of the first year. This will help us position ourselves for greater retail sales in the second year. The website will undergo a redesign within the first six months. The Web marketing strategy for the site will be implemented in time. In each year 1 there will be at least one additional product participant segment. A sales manager from outside will be hired in the first year, but ramping up of the sales team is not planned until the second year.

John Johnson, owner, will oversee the operation as President/CEO. Johnson has a background in high technology and business as well his entrepreneurial experience makes him the perfect leader to manage this online/sporting goods retailer. He was an entrepreneur and vice president of a high tech startup. He worked for almost 20 years as a researcher and developer at high technology companies like Lucent Technologies. Mr. Johnson also founded and currently owns two other businesses, Johnson Enterprises, LLC and Johnson Investments, LLC. Johnson Enterprises, LLC designs, builds, and markets custom game courts for basketball, tennis, and other sports. Sporting goods products, synthetic putting courses, and basketball courts. Mr. Johnson earned a Bachelor of Science Degree in Computer Science at Stone College in Boulder Colorado and a Masters of Business Administration degree from the University of Illinois.

1.1 Objectives

  • Maintain or exceed in Year 1 the levels of sales ($2.5million), gross profit (25%), and Net Margin (12%) from the past two-years.
  • Realize an annual sales growth rate of 20% in years 2-5, reaching over $5 million in sales by the end of year 5.
  • By the end, gross margins will have increased from 25% – 35%
  • To improve net margins at the end-of-year 5.
  • The Internet e-commerce shop must be redesigned and upgraded by the end the first year.
  • Increase website site traffic 50% and sales 20% in years 1-5 by investing in aggressive Web search optimization and marketing.
  • Enhance the retail location in year 2 by moving the existing store from the current location to a prime area in the metropolitan region.
  • For underprivileged children to gain self-esteem and confidence through youth sport programs, it is important to establish relationships with local non-profit organizations.
  • Family-run the business. The emphasis should be on integrity, honesty, quality relationships, having fun and giving back.

1.2 Mission

By building a lasting relationship with our customers, we aim to be the preferred supplier of sports equipment. To become the “family expert” in sporting goods equipment, treating customers like family and maintaining an experienced, knowledgeable and caring staff that can assist them in making the right purchase. This includes coaches, athletic directors, league representatives, and individuals who are outfitting their families.

1.3 Keys To Success

  • Make the website more professional and user-friendly. Offer incentives, features, promotions, and other benefits to keep customers coming back. Optimize the site for maximum search results.
  • Place the existing retail shop in a more densely-populated, growing area.
  • Negotiate with major suppliers optimal agreements that will improve margins, reduce costs, and maximize the control of and turnover for our inventory.
  • For improved inventory turnover and tracking, you can implement a modern inventory management system.
  • Expand your product line by offering equipment for other sports, which is very popular during the slow Sportsuchtig seasons.
  • Create an outside sales team that calls on schools, leagues, and associations and is known for product expertise and top service.
  • Training employees on product features. Also, how to provide customer service and sales that is family-oriented.
  • Train an existing employee, or hire from outside, a store manager to cover for and be the backup for the Owner/President.
  • Advertise in the areas where our target customers are able to find out more about our internet stores and retail outlets.
  • Build a reliable operations infrastructure that is ready to serve customers, prepare accurate billing and accounting, follow up on orders and shipping, manage the Web site, and maintain a close watch on expenses and collection of accounts receivable.
  • Participate in non-profit activities and sponsor local teams, leagues, or tournaments to be an active member of your community.
  • Through daily management practices, ensure that the values and mission of The Sportsuchtig are upheld.

Leave a Reply