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Sporting Goods Retail Store Business Plan

3 March 2023 Businnes Plan


Sporting Goods Retail Store Business Plan


This business plan is designed to obtain a conventional business loan of $700,000 to $800,000. It will be used to buy the assets of Sportsuchtig. Johnson Sporting Goods, LLC, John Johnson and Lisa Johnson, will buy it. Sportsuchtig will continue operating the business.

Sportsuchtig sells sporting goods equipment that is of high quality for the whole family. We are primarily focused on selling baseball and softball equipment and apparel from top manufacturers, including Easton, Louisville Slugger (Willow), Worth, Mizuno Miken and Under Armour. The company began as a retail store and was expanded to include an Internet sports store. The company currently operates with 10 employees out of a 7,400 square foot facility which houses the combined retail store, call center, office, and product warehouse. The company’s sales have averaged $2.5 Million over the last 3 year with a 25% gross margin. 52% were generated via the website, and 48% came from its 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 an excellent business with strong potential for growth. This business plan is expected to help the business reach a revenue of more than $5 million within five years. Sales are projected to be flat in year one and then grow at 20% in years 2-5. This forecast assumes that the company takes advantage of these key opportunities.

  • Redesign, upgrading and marketing an Internet store.
  • Moving the existing retail location.
  • Addition of product lines to support sports other than baseball/softball.
  • The creation of an outside sales force to increase sales.
  • Optimize inventory purchasing, tracking and management.

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 go through a major redesign in the first 6 month. Our Web marketing strategy will coincide with the new site’s launch. Expansion into at least one new product participant segment will be planned for each year, beginning in year 1. 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.

The business will be managed by owner John Johnson who will act as 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 spent almost 20 years leading research and development efforts for high technology stalwarts such as Lucent Technologies and ;Motorola Systems, and was a founding employee and Vice President of a high-tech startup. Johnson Enterprises, LLC, Johnson Investments, LLC, are two of Johnson’s other businesses. Johnson Enterprises, LLC designs, builds, and markets custom game courts for basketball, tennis, and other sports. Sports goods, synthetic putting greens, as well as sporting goods products. Mr. Johnson has a Bachelor of Science (in Computer Science) from Stone College in Boulder Colorado, and a Masters of Business Administration at the University of Illinois.

1.1 Objectives

  • Maintain or exceed in year one the sales levels from two years ago ($2.5million), gross margin (25%), as well as net margin (12%).
  • Realize an annual sales increase rate of 20% for years 2-5, and reach sales of over $5million by the end.
  • Increase gross margins to 25%-35% by the end year
  • To improve net margins at the end-of-year 5.
  • Design and upgrade the Internet-based e-commerce store by year end.
  • Increase website site traffic 50% and sales 20% in years 1-5 by investing in aggressive Web search optimization and marketing.
  • Enhance the retail store location in the second half of year 1 by relocating the current store from its current location to a more prime location in the metropolitan area.
  • Establish relationships with local nonprofits to help children in need build self-esteem through youth sports programs.
  • As a family-owned and -oriented business, the emphasis is on honesty, integrity, quality relations, fun, and giving back.

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 for 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.
  • The existing retail store should be relocated to a densely populated and 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.
  • You can expand the product range by adding equipment to other sports that are in high demand during slow seasons of Sportsuchtig.
  • A sales team outside that contacts schools, leagues and associations is created. They are known for their product expertise, top service, and high-quality customer service.
  • Train employees on product features as well as how to support customers and provide family-oriented service.
  • Train an employee or hire someone from the outside to be the store manager.
  • Market and advertise in areas where your target customers can find out about our internet and retail stores.
  • 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.
  • You can be an active participant in your local community by sponsoring local sports teams, leagues or tournaments.
  • Through daily management practices, ensure that the values and mission of The Sportsuchtig are upheld.

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