Sports Medical Equipment Business Plan

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Professional Athletic Equipment, Inc., will manufacture and sell a protective device designed for young athletes. The brand name and identity for the product will be Body Armor. The product is designed to protect the abdomen, chest, and side from injury caused by blunt trauma. The device may also prevent sudden death by commotio Cordis (heart stoppage caused external trauma). This injury can occur in many sports, including baseball. The United States has filed a patent application for the device.

This business plan is part our regular business planning process. This plan is reviewed semi-annually.

In the next full-year, we will produce and market the initial product. To date, no sales have been made.

We expect to sell 750 units per months on average during year one of our marketing campaigns. This will bring the total year’s sales volume to $242,550. Management predicts sales exceeding $4 million and profitability in year three. Before taxes, the expected year three profit is $593570.

In order of importance, these are our keys to success for next year.

• Initial product production for the first three sizes.
• Basic research and testing marketing are key to product acceptance.
• Multi-channel distribution is being tested.
• Test marketing of media, PR, pricing, and product endorsement plans.
• Goal of recouping production start-up costs and first year depreciation on initial three molds in year one.

Then, there’s the rest:

• Limiting loss to less that $200K for the second year
• Reaching limited retail distribution in the third year (2nd sales year).
• In the third year, achieve profitability.

1.1 Objectives

Professional Athletic Equipment, Inc. has set a modest goal for year one sales. These minimums will help us reach an over-all breakeven in year one. In year two, this will give us a platform for business expansion.

Here are the sales targets for each size

• Units as small as 4500
• Medium’#82112250 units
• Large–2250 units

These targets will result in year-one sales volume of $242.550, which will confirm that the test was successful.

The costs will be controlled in order to keep margins at these modest sales levels. To achieve growth, additional production and increased marketing activity may be necessary if sales exceed this goal. On the safe side, some sales may be missed in order to gear up for year two.

1.2 Mission

Professional Athletic Equipment, Inc., an American manufacturing and marketing company, is dedicated to protecting young athletes against tragic injury and death. We aim to produce quality products that have been tested and to earn a fair return on our investments. Our initial product, &#8220/Body Armor &#8221, will be sold to youth baseball players’ parents via targeted direct marketing. The #8220Body Armor aims to both prevent injury and enhance athletic performance through its confidence-enhancing qualities among youth sports participants. The #8220Body Armor#8221 is designed to encourage youth sports participation. We plan to expand the business and establish ourselves as an innovator and product leader in our niche. After our marketing platform is established, we will continue to finance internal and external growth. Once that happens, we will develop and acquire additional products. We will be a business that adheres to Christian values.

1.3 Keys To Success

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

• High Quality Products. The new molds need to be created and production must begin. Initial orders must be placed and suppliers of all components identified. You must ensure that all components are delivered on time and assembled with minimal waste.
• Marketing. Professional Athletic Equipment, Inc. can only be successful if the product is quality. The “Body Armor” is a brand new product. Consumers must be informed about its availability and purpose. The control of media costs is crucial to generating sales.
• Management.

While there is a temptation to grow a business exponentially, it is critical that Professional Athletic Equipment, Inc. management concentrate first on proving product salability within certain price points, margin requirements, distribution channels, and establish consumer acceptance. After these answers have been found, controlled expansion (which involves increased production and investments in inventory) can then be achieved with confidence.

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