Keith's Sporting Goods (KSG) has written a sports equipment retail business plan detailing its plans for a start-up sporting goods and equipment store. This small business offers ideas for others also interested in opening a sporting goods store that will appeal to everyone, from people just starting a new fitness routine to aspiring college athletes. KSG hopes to find a unique niche where it will hire knowledgeable employees to provide training advice in addition to selling equipment. KSG's sports equipment retail sample business plan suggests the company will increase cash flow by two percent each month, reaching a profit by the end of the first year. Its target audience consists of three groups: high school and college athletes; parents with children in youth sports, and active adults.
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.
Based in Eugene, KSG wants to be a recognized sporting goods store. An exact location has yet to be set, but owners are avidly searching for a high foot traffic location. Ideally that location would be in central Eugene where anyone can travel a short distance to find our store.
We fully expect to grow quickly. Many businesses start under the same assumption but due to work ethic, desire, job enjoyment, KSG is expecting to make a profit in the early stages of its life. Sales are forecasted to be conservative in the first month but are expected to increase by 2% each month thereafter, with a first year growth rate of 12%. This assumption appears to be accurate given the fact that the sporting goods wholesale industry is growing at an 11.5% annual rate.
Keith's Sporting Goods will be filed as an S Corporation where owners will be protected from various forms of liability and tax shields. In the early stages of business, we will be primarily debt financed through a local bank and the Small Business Association (SBA). We have forecasted the need for 60% debt, the owner and operator will invest the rest.
Depending on the timing of financing, we expect to have the store open by January next year and to produce strong profits by the end of that same year.
The primary objectives for the store are:
Brand recognition. KSG will be a recognized sporting goods and fitness store in Eugene.
To be operating at a profit by the end of the first year of business.
Achieve a 15% growth rate in sales from years one and two, and then maintain no less than a 11.5% growth rate thereafter.
Maintain a constant gross margin of 40%. If we are able to do this and keep costs fixed, sales will be able to grow faster than total costs.
KSG strives toward building long-term relationships with our customers and employees. Working within the community, promoting community service, and encouraging the additional education of our employees will be constantly emphasized by store management. We feel it is extremely important to give back to the community that supports our operations, while also maintaining an atmosphere where our employees have the opportunity to improve as individuals.
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