Sports Medical Equipment Business Plan

Professional Athletic Equipment, Inc. will market and manufacture a protective device that young athletes can use. The brand name and identity for the product will be Body Armor. The product is designed in order to prevent injury from blunt force trauma to the abdomen, side, or chest. The device may also help prevent sudden death from commotio cordis (heart stoppage due to external trauma). This injury occurs primarily in baseball but can also occur in soccer and other sports. A United States patent on the device is in the application process and is pending.

This business plan is part a regular business planning cycle. This plan gets a semi-annual update.

In the next full-year, we will produce and market the initial product. No sales have occurred to date.

We are projecting sales of 750 units per month on average in year one of marketing. This will bring the total year’s sales volume to $242,550. Management expects revenue to exceed $4 million and profitability to be achieved in year 3. Year three profits are expected to be $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 on first three sizes.
• To test marketing and basic researching to determine product acceptance
• Multi-channel distribution: Test marketing
• You can test marketing media, PR pricing, product endorsement and pricing plans.
• Goal of recouping production start-up costs and first year depreciation on initial three molds in year one.

And after that:

• Limiting loss in year two to less than $200K.
• In year three (second sales year), limited retail distribution is achieved.
• Three years of profitable operations.

1.1 Objectives

Professional Athletic Equipment, Inc. has set a modest goal for year one sales. When we reach these minimums, it will be close to the over-all breakeven point for year one. This will allow us to expand our business in year two.

Here are the sales targets for each size

• Small#82114500 units
• Medium&#82112250 units
• Large&#82112250 units

These targets will result a year-one sales volume in the range of $242.550. This will prove that this test has been successful.

Costs will be controlled to maintain projected 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. You should be aware that some sales may not be achieved in order for you to get ready for year two.

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 “Body Armor” is intended both to help prevent injury and to improve athletic performance via its confidence enhancing attributes among youthful sports participants. The #8220Body Armor#8221 is designed to encourage youth sports participation. We intend to grow the business and to establish our brand as a product leader and innovator in its specialty niche. Once our marketing platform has been established, we plan to continue to fund internal and external growth. We also intend to acquire and develop new products. We will conduct our business in accordance with Christian values and strive to maintain a friendly, fair and creative work environment which respects ideas, hard work, and the dignity and worth of the individual.

1.3 Keys of Success

Professional Athletic Equipment, Inc. has the following keys to its success:

• Product Quality. New molds are required and production must start. The initial order must be placed with the suppliers of all components. Timely delivery and assembly must be maintained with re-work and waste held 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” is a new product and consumers must be educated as to its availability and purpose. It is critical that media costs are controlled to increase sales.
• Management.

Although it’s tempting to expand a business exponentially, Professional Athletic Equipment, Inc. must first prove product salability within certain price points, margins requirements, distribution channels, as well as establish consumer acceptance. When these answers are known, controlled expansion, which involves increasing production and investing more in inventory, can be carried out with confidence.