Sporting Goods Retail Store Business Plan

The purpose of this business plan is to secure a seven-hundred thousand dollar ($700,000 to $800,000) conventional business loan from a financial institution in order to purchase the assets of the business known as Sportsuchtig. Johnson Sporting Goods, LLC, a limited-liability company created for this purpose by John Johnson and Lisa Johnson, will purchase the business. Sportsuchtig will continue to manage 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. In 1986, the company opened its first retail store. It then launched an online sports store in 1996. The company has 10 employees and is located in a 7,400 sq. ft. facility. It houses the retail store as well as a call center, office and product warehouse. The company has achieved an average annual sales of $2.5million and a gross profit of 25% over the last three years. 52% of its sales came from the website while 48% were generated through 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 business is strong and well positioned for rapid growth. The business plan can help it reach revenue levels above $5 million in five year. Sales are projected to be flat in year one and then grow at 20% in 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.
• Moving the existing retail location.
• Adding additional product lines for sports played in other seasons than baseball/softball.
• In order to capture a significant portion of the team’s market for sales, it is necessary to create an outside team.
• Optimized inventory purchasing, management, and tracking

We plan on moving the business in the latter half of year 1, which will position us to increase retail sales, starting in year 2. The website will be redesigned in the first 6 months and the Web marketing strategy will be timed to coincide with the implementation of the new site. Every year, expansion into at least one new participant segment in each product will be planned. It all starts in year 1. The first year will see the hiring of an outside sales manager, but the ramp-up is not expected until year 2.

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. Johnson spent nearly 20 years in research and development for high tech stalwarts like Lucent Technologies and Motorola Systems. He was also a founding employee of and Vice President at a high-tech start-up. Johnson Enterprises, LLC, Johnson Investments, LLC, were founded by Johnson Johnson. Johnson Enterprises, LLC is a company that designs, builds, and sells custom-made game courts (basketball, basketball, etc. The company also sells sporting goods products and synthetic putting greens. 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 1 the recent two-year levels of sales ($2.5 million), gross margin (25%), and 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.
• Design and upgrade the Internet-based e-commerce store by year end.
• In years 1-5, increase site traffic by 50% and sales revenue by investing in aggressive Web Search Optimization and Marketing.
• 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.
• Establish relationships with local nonprofits to help children in need build self-esteem through youth sports programs.
• Family-run the business. The emphasis should be on integrity, honesty, quality relationships, having 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. You will be the “family expert” for sporting goods equipment if you treat your customers like they are family.

1.3 Keys of Success

• You can upgrade the website to make it more professional, user-friendly, offers incentives, promotions and features to draw customers back repeatedly to the site, and optimizes for maximum search results.
• Relocate the existing retail store to a more densely populated, growing location.
• We negotiate optimal deals with major suppliers to increase margins, lower costs, and maximize control and turnover of inventory.
• Implement a state-of-the-art, computerized inventory management system to improve inventory turnover and tracking.
• Increase the product line with equipment that is often in high demand during the current Sportsuchtig slow season.
• Create an outside sales team that calls on schools, leagues, and associations and is known for product expertise and top service.
• Training employees about product features and how to offer family-oriented customer service and sales.
• Train an existing employee, or hire from outside, a store manager to cover for and be the backup for the Owner/President.
• Advertise and market in areas where our target customer base can learn about our retail and internet 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.
• Take part in charitable activities, sponsor local leagues and tournaments, and be active in your community.
• Ensure through daily management practices that the values of The Sportsuchtig mission are followed, so that a successful and growth-oriented business is developed and maintained.