Keith’s Sporting Goods (KSG) will be in the business of selling athletic equipment to people at every fitness level, from aspiring college athletes to weekend warriors. With our knowledgeable staff we will provide an environment where everyone feels comfortable coming in and asking for training advice and discussing equipment needs.
KSG, based in Eugene wants to be a well-known sporting goods store. An exact location has yet to be set, but owners are avidly searching for a high foot traffic location. We would prefer to be located in central Eugene. This is where most people can walk a few blocks to get to our store.
We fully anticipate that our business will expand quickly. Although many businesses start with the same assumptions, KSG has the potential to grow quickly. The first month’s sales are expected to be modest, but they will increase by 2% each subsequent month with a 12% growth rate for the first year. This assumption seems reasonable given the fact, that the wholesale of sporting goods is growing at an 11.5% annual pace.
Keith’s Sporting Goods will file as an S Corporation, where owners will be protected against various forms of liability. We will primarily finance our business with debt through local banks and the Small Business Association (SBA) in the initial stages. We estimate that 60% of debt will be needed. Owners and operators will then invest the rest.
Depending on how the financing is handled, we anticipate that the store will be open by January 2020 and that the store will generate strong profits by the end.
The store’s main goals are:
- Reputation. KSG will be recognized in Eugene as a fitness and sporting goods store.
- To make a profit within the first year.
- From years 1 and 2, achieve a 15% annual sales growth rate, and thereafter maintain a maximum 11.5% growth rate.
- Keep a constant gross margin at 40% Sales will grow faster when we can accomplish this feat and keep costs stable.
KSG strives towards building long-term partnerships with our customers, employees and suppliers. The store management will always emphasize the importance and value of community service, community service, education, and working within the community. The store management believes it is vital to give back the community that supports us, and to foster an environment where our employees can improve.
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