Sporting Goods Retail Store Business Plan

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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, John and Lisa Johnson’s limited liability company, will acquire it. Sportsuchtig will still be the name of the business.

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. The company started as a retail business in 1986. In 1996, it opened an Internet-based sports store. Ten employees currently work in the 7,400 square foot facility, which includes the combined retail, call center and office as well as the product warehouse. Over the last 3 years the company has averaged $2.5 million in sales and a gross margin of 25%, with 52% of the sales generated by the website and 48% coming from 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 is a solid business and it is well placed for rapid growth. This business plan is expected to help the business reach a revenue of more than $5 million within five years. In year 1, sales are expected to remain flat and grow by 20% through years 2-5. This growth forecast assumes the company is aware of these key opportunities and takes action.

• Redesign, update and marketing the Internet store.
• The relocation of the existing retail store.
• The addition of additional product lines for games played in other seasons than softball/baseball.
• In order to capture a significant portion of the team’s market for sales, it is necessary to create an outside team.
• Optimization of inventory purchasing, management and tracking.

We will plan to relocate the business near the end of year 1 which should help position us for increased retail sales beginning in year 2. The website will go through a major redesign in the first 6 month. Our Web marketing strategy will coincide with the new site’s launch. In each year 1 there will be at least one additional product participant segment. A manager for the outside sales team will be hired during year 1. However, ramp-up of this sales team is not planned before year 2.

John Johnson will act as the president and CEO. Johnson’s background in sports and technology, combined with his entrepreneurial experience make him the ideal leader for this sporting goods retail/internet venture. 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. Johnson Enterprises, LLC, and Johnson Investments, LLC, were also started by Mr. Johnson. Johnson Enterprises, LLC designs, constructs, and sells custom game courts (basketball, volleyball, etc. ), synthetic putting greens, and sporting goods products. Mr. Johnson received a Bachelor of Science in Computer Science from Stone College in Boulder, Colorado and a Masters in Business Administration from the University of Illinois.

1.1 Objectives

• In year 1, maintain or exceed the two-year sales levels ($2.5 million), gross margin (25%), net margin (12%)
• Realize an annual sales growth rate of 20% in years 2-5, reaching over $5 million in sales by the end of year 5.
• Gross margins can be increased from 25% to 35% before the end of the year
• To improve net margins at the end-of-year 5.
• Upgrading and redesigning the Internet ecommerce store before the end of the first calendar year.
• Invest in aggressive Web search optimization, marketing and to increase website traffic by 50% and sales by 20% in the years 1-5.
• The second half of the year will be used to improve the location of the retail store by moving it from its current location and to a better location in the city.
• For underprivileged children to gain self-esteem and confidence through youth sport programs, it is important to establish relationships with local non-profit organizations.
• Run the business as a family-run and -oriented business with emphasis on truth, integrity, quality relationships, fun, and giving back to the community.

1.2 Mission

To become the sports equipment supplier of choice, based on product expertise, price, quality, and level of service, by developing a long term relationship with our customers. By treating our customers like their family and building a relationship with them, we can become the ‘family expert’ in sporting equipment.

1.3 Keys to Success

• The website can be upgraded to make it more professional and user-friendly, to offer incentives, features and promotions that will draw customers back to it repeatedly, and to optimize for maximum search engine results.
• Relocate the existing retail store to a more densely populated, growing location.
• Reaching optimal agreements with our major suppliers will allow us to increase margins and lower costs. This will also enable us to maximize inventory control and turnover.
• In order to increase inventory turnover and track, use a state of the art inventory management software.
• Increase the product line with equipment that is often in high demand during the current Sportsuchtig slow season.
• Instruct schools, leagues and associations to create an outside sales force that is well-respected for their product expertise and superior service.
• Train employees on product features as well as how to support customers and provide family-oriented service.
• Train an employee already working, or hire an outsider to become a store manager.
• Advertising and marketing in areas where our target audience can learn more about our online and retail stores is a smart move.
• Establish a solid operations infrastructure to support customers. Prepare accurate billing and accounting. Follow up on orders. Manage the website. Keep an eye on expenses and collect any accounts receivables.
• 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.

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