The popular sporting goods retail store, Sportsuchtig is undergoing a transfer of ownership. The sporting goods retail store business plan under new ownership is to expand the products and the line of product available to consumers. Sportsuchtig also plans to relocate under its sporting goods retail store sample business plan, as well as renovate the business, and they aim to increase cash flow by over $2 million. The new owners of Sportsuchtig are planning to take the already successful company and improve and expand it to have it become more successful than ever before. In the process, Sportsuchtig's website will be completely redone to make it more appealing. With the sporting goods retail stores sample business plan, it is seen that there are high hopes for the already favored company.
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. It will be purchased by Johnson Sporting Goods, LLC, a limited liability company formed for this purpose by John and Lisa Johnson. The business will continue to be known and operated as Sportsuchtig.
Sportsuchtig sells quality sporting goods equipment for the entire family, primarily focused on and specializing in baseball and softball equipment, apparel and accessories from major manufacturers such as Easton, Louisville Slugger, Wilson, Worth, Mizuno, Miken, and Under Armour. The company was established as a retail store in 1986 and created an Internet sports store in 1996. The company currently operates with 10 employees out of a 7,400 square foot facility which houses the combined retail store, call center, office, and product warehouse. Over the last 3 years the company has averaged $2.5 million in sales and a gross margin of 25%, with 52% of the sales generated by the website and 48% coming 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 is a strong business that is positioned well for accelerated growth. We believe the business can reach revenue levels of over $5 million in 5 years by implementing this business plan. Sales are projected to be flat in year one and then grow at 20% in years 2-5. This growth forecast is based on the assumption that the company acts on these key opportunities:
Redesign, upgrade and marketing of the Internet store.
Relocating the existing retail store.
Adding additional product lines for sports played in other seasons than baseball/softball.
Creation of an outside sales team to gain a significant share of the team sales market.
Optimization of inventory purchasing, management and tracking.
We will plan to relocate the business near the end of year 1 which should help position us for increased retail sales beginning 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. Expansion into at least one new product participant segment will be planned for each year, beginning in year 1. An outside sales team manager will be hired in year 1, but ramp-up of the sales team is not planned until early in year 2.
The business will be managed by owner John Johnson who will act as 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. He spent almost 20 years leading research and development efforts for high technology stalwarts such as Lucent Technologies and ;Motorola Systems, and was a founding employee and Vice President of a high-tech startup. Mr. Johnson also founded and currently owns two other businesses, Johnson Enterprises, LLC and Johnson Investments, LLC. Johnson Enterprises, LLC sells, designs, and constructs custom game courts (basketball, tennis, etc.), synthetic putting greens, and sporting goods products. Mr. Johnson received a Bachelor of Science in Computer Science from Stone College in Boulder, Colorado and a Masters in Business Administration from the University of Illinois.
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.
Improve gross margins from 25% to 35% by the end of year 5.
Improve net margins by the end of year 5.
Redesign and upgrade the Internet e-commerce store by the end of the first year.
Increase website site traffic 50% and sales 20% in years 1-5 by investing in aggressive Web search optimization and marketing.
Enhance the retail store location in the second half of year 1 by relocating the current store from its current location to a more prime location in the metropolitan area.
Establish relationships with local nonprofit organizations, to help underprivileged children build confidence and self esteem through youth sports programs.
Run the business as a family-run and -oriented business with emphasis on truth, integrity, quality relationships, fun, and giving back to the community.
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. 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
Upgrade the website so that it is more professional and user friendly, offers incentives, features, and promotions to draw customers back to the site repeatedly, and is optimized for maximum search results.
Relocate the existing retail store to a more densely populated, growing location.
Negotiate optimal agreements with the major suppliers that allow us to improve margins, hold down costs, and maximize the control and turnover of our inventory.
Implement a state-of-the-art, computerized inventory management system to improve inventory turnover and tracking.
Expand the product line by offering equipment for additional sports that are typically in demand during current Sportsuchtig slow seasons.
Create an outside sales team that calls on schools, leagues, and associations and is known for product expertise and top service.
Train employees on product features and on how to provide family-oriented sales and customer support.
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.
Be an active member of the community by participating in nonprofit activities and by sponsoring local sports teams, leagues, and tournaments.
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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