05 Mar Sporting Goods Retail Store Business Plan

This business plan is used to secure a $700,000.00 to $800,000.00 conventional business loan from an institution. The loan will be used for the purchase of the assets of Sportsuchtig. It will be purchased by Johnson Sporting Goods, LLC, a limited liability company formed for this purpose by John and Lisa Johnson. Sportsuchtig will continue operating the business.

Sportsuchtig offers quality sporting goods equipment to the whole family. The company primarily focuses on softball equipment, apparel, and accessories from major manufactures like Easton. In 1986, the company opened its first retail store. It then launched an online sports store in 1996. The company employs 10 people in a 7,400-square foot facility that houses the call center, office, retail store, product warehouse and office. 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.

In the last 3 years, Sportsuchtig has generated verifiable pre-tax income averaging $194,000 and total owner’s benefit averaging over $323,000. This business is strong and is well-positioned to accelerate growth. Implementing this business plan will allow the business to reach revenue levels exceeding $5 million in five years. The sales will be flat in the first year and then increase by 20% each of the next two to five years. This growth forecast assumes that these key opportunities are taken advantage of by the company.

• Redesign, upgradation and marketing of the Internet shop.
• Moving the existing retail location.
• The addition of additional product lines for games played in other seasons than softball/baseball.
• A sales team outside of the company to help gain a large share of team sales.
• Optimize inventory purchasing, tracking and management.

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 need to be redesigned within 6 months. The Web Marketing Strategy will be developed in conjunction with the new site. Expansion into at least one new product participant segment will be planned for each year, beginning in year 1. 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. Mr. Johnson’s high technology and sports business backgrounds, coupled with his entrepreneurial experience, makes him the ideal leader to drive this sporting goods retail/internet endeavor. 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, are two of Johnson’s other businesses. Johnson Enterprises, LLC is a company that designs, builds, and sells custom-made game courts (basketball, basketball, etc. Sporting goods products, synthetic putting courses, and basketball courts. 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 levels of sales ($2.5million), gross profit (25%), and Net Margin (12%) from the past two-years.
• Realize an annual sales growth rate of 20% in years 2-5, reaching over $5 million in sales by the end of year 5.
• Improve gross margins from 25% to 35% by the end of year 5.
• By the end, you will see an increase in net margins.
• The Internet e-commerce shop must be redesigned and upgraded by the end the first year.
• In years 1-5, increase site traffic by 50% and sales revenue by investing in aggressive Web Search Optimization and Marketing.
• Enhance the retail location in year 2 by moving the existing store from the current location to a prime area in the metropolitan region.
• To help children with low self-esteem and confidence through youth sports programs, establish relationships with local nonprofits.
• The business should be family-owned and operated with a focus on honesty, integrity, quality relationships, fun and giving back to the local community.

1.2 Mission

To be the best supplier of sport equipment by building a long-term relationship with customers. Become the “family expert” for sporting goods equipment by treating customers like friends and family and by maintaining an experienced, knowledgeable, and caring staff that can help the customer make the right purchase for them, whether they are individuals outfitting their family, or coaches, athletic directors and league representatives supplying their teams.

1.3 Keys to Success

• Improve the website’s professionalism and usability, offer incentives and promotions to entice customers to return to your site often, and optimize it for maximum search engines.
• The existing retail store should be relocated to a densely populated and growing area.
• We negotiate optimal deals with major suppliers to increase margins, lower costs, and maximize control and turnover of inventory.
• For improved inventory turnover and tracking, you can implement a modern inventory management system.
• Expand the product line by offering equipment for additional sports that are typically in demand during current Sportsuchtig slow seasons.
• You can create an outside sales team, which will call on schools, leagues, or associations. This team is known for its product expertise as well as top-notch 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.
• Market and advertise in areas where your target customers can find out about our internet and retail stores.
• Create a reliable operations infrastructure that is available to service customers. Follow up orders, process billing and accounting accurately, monitor expenses, and collect accounts receivable.
• Take part in charitable activities, sponsor local leagues and tournaments, and be active in your community.
• Daily management practices must be consistent with the values of The Sportsuchtig mission. This will ensure that a business that is growth-oriented and successful is created and maintained.