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Sporting Goods Retail Store Business Plan

March 3, 2023 By JamesCall Leave a Comment


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 and Lisa Johnson’s limited liability company, will acquire it. The business will continue to be known and operated as Sportsuchtig.

Sportsuchtig is a seller of quality sporting goods equipment. It specializes in selling equipment for baseball and softball, as well apparel and accessories from major manufacturers like Easton and Louisville Slugger, Worth, Mizuno and Miken. The company started as a retail business in 1986. In 1996, it opened an Internet-based sports store. The 7,400 square-foot facility, which houses the retail store, call centre, office, product warehouse, and office, currently has 10 employees. The company has generated an average of $2.5 million in sales over the past three years and has a gross margin 25%. 52% of sales are from the website, while 48% come from the 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 well positioned for rapid growth. We believe the business can reach revenue levels of over $5 million in 5 years by implementing this business plan. The projections for sales growth are that they will grow at 20% per year in years 2-5, while being flat in the first. This growth forecast is based on the assumption that the company acts on these key opportunities:

  • Redesign, upgradation and marketing of the Internet shop.
  • The relocation of the existing retail store.
  • Other sports, such as softball and baseball, may be added to the product line.
  • The creation of an outside sales force to increase sales.
  • Optimized inventory purchasing, management, and tracking

We will be moving the business to the beginning of year 2, which should position us well for increasing 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. In year 1, an outside sales manager will be appointed, but ramp-up of sales is not planned for until year 2.

John Johnson will act as the 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, was also established by Johnson and is currently the owner of Johnson Investments, LLC. Johnson Enterprises, LLC designs, constructs, and sells custom game courts (basketball, volleyball, etc. 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

  • In year 1, maintain or exceed the two-year sales levels ($2.5 million), gross margin (25%), net margin (12%)
  • Realize an annual sales increase rate of 20% for years 2-5, and reach sales of over $5million by the end.
  • Improve gross margins by 25% to 35% by year end
  • Increase net margins to the end of the year 5.
  • 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.
  • In the second half year 1, enhance the retail store’s location by moving the store from its current location into a prime location in the metro area.
  • To help children with low self-esteem and confidence through youth sports programs, establish relationships with local nonprofits.
  • Run the business as a family-run and -oriented business with emphasis on truth, integrity, quality relationships, fun, and giving back to the community.

1.2 Mission

We want to become the top supplier of sporting equipment based on price, quality, service and product expertise. This is possible by building long-lasting relationships with our customers. Treat customers as family members and build a long-lasting relationship with them.

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.
  • You can relocate the retail store in question to a location that is more densely populated.
  • Negotiate the best deals with the major suppliers so that we can improve margins, keep down costs and maximize our control over and turnover of stock.
  • 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.
  • Training employees about product features and how to offer family-oriented customer service and sales.
  • 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.
  • You will need to build a reliable operation infrastructure that can serve customers.
  • Get involved in the community by supporting local leagues and teams and volunteering to sponsor them.
  • 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.

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Filed Under: Businnes Plan Tagged With: goods, retail, sporting

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About Jennifer

Unlike many who get into the field, real estate has been the only career for Jennifer Raney Herriage, who has excelled in serving clients for over 20 years.  Having grown up in a real estate family, Jennifer was first inspired by her mother, a broker … Read more...

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