Sports Medical Equipment Business Plan

Sports Medical Equipment Business Plan

Professional Athletic Equipment, Inc. is going to manufacture and market a protective product for young athletes. The trade name “Body Armor” will serve as brand name and identity name for the product. The product is designed to protect the abdomen, chest, and side from injury caused by blunt trauma. This device can also prevent sudden death due to commotio cordis (heart attack caused by external trauma). This injury is most common in baseball, but it can also happen in other sports. A United States patent for the device is currently pending.

This business plan forms part of our regular business planning. We revise this plan semi-annually.

In the next full-year, we will produce and market the initial product. Sales have not occurred yet.

We are projecting sales of 750 units per month on average in year one of marketing. This will place sales volume at $242,550 for the year. The management expects to see sales surpassing $4 million in the third year and profitability by year three. The expected profit for year three is $593,570 before taxes.

Here are the keys to success and key factors for the next twelve months, in order of their importance:

  • Initial product production in the first three sizes.
  • Basic research and testing marketing are key to product acceptance.
  • Multi-channel distribution – Test marketing
  • It is possible to test media, PR and pricing marketing.
  • The goal is to recoup production start-up costs, first year depreciation and initial three molds in the first year.

And here’s what comes next:

  • Limiting loss to less that $200K for the second year
  • Reaching limited retail distribution by year three (2nd salesyear).
  • Three years of profitable operations.

1.1 Objectives

Professional Athletic Equipment, Inc. sets a modest goal of achieving its year-one sales. If we achieve these targets, our goal for year one sales will be just shy of breaking-even. It will also provide us with a platform to grow in year 2.

Sales targets by size are:

  • Small units: 4500 units
  • Medium&#82112250 units
  • Large&#82112250 units

These targets will translate into year one sales volumes of $242.550. It will also confirm that you have passed the test.

The costs will be controlled in order to keep margins at these modest sales levels. Additional production can be added and increased marketing activity implemented quickly if sales exceed the goals. However, additional capital will still be required to fully implement growth. Some sales may not be made in year 2, but that is to be expected.

1.2 Mission

Professional Athletic Equipment, Inc., is a marketing and manufacturing company that protects young athletes from serious injury and death. We plan to create quality, tested products as well as sufficient profit to provide fair returns for our investors. Our first product, the ‘#8220’ Body Armor, will go direct to consumers who are parents of youth players. The &#8220Body Armor&#8221 is intended to reduce injury and increase athletic performance. It also has confidence-enhancing properties that will appeal to young sports players. The &#8220Body Armor&#8221 is intended to encourage the enjoyment and enjoyment of sports among young people. We are aiming to expand the company and position our brand as a pioneer in its niche. We intend to finance continued growth both internally and externally and to develop and acquire new and additional products once our marketing platform is established. We will operate our business according to Christian values.

1.3 Keys to Success

Professional Athletic Equipment, Inc.’s success keys are:

  • Product Quality. New molds are required and production must start. The initial order must be placed with the suppliers of all components. Assemblies must be completed on time. Re-work should be kept to a minimum.
  • Marketing. Once quality product is available, the success of Professional Athletic Equipment, Inc. rests wholly in the marketing venue. The “Body Armor”, a new product, is not available yet. Therefore, consumers need to be aware of its availability and purpose. Controlling media costs to drive sales is key to your success.
  • Management.

Although there’s a temptation for a company to grow exponentially, Professional Athletic Equipment, Inc. should focus first on product sales within certain price points, margin requirements, distribution routes, and consumer acceptance. These answers will allow for controlled expansion, which requires more production and greater investment in inventory.

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