04 Mar Sports Equipment Retail Business Plan
Keith’'s Sporting Goods will sell equipment to anyone, regardless of their fitness level. Our knowledgeable staff will make it easy for customers to ask questions and discuss their equipment needs.
KSG is located in Eugene and wants to be a nationally recognized sporting goods store. Owners are looking for a place with high foot traffic, although an exact location has not been determined. Ideally that location would be in central Eugene where anyone can travel a short distance to find our store.
We fully anticipate that our business will expand quickly. Although this is a common assumption for many businesses, KSG believes it can make a profit early in its life. Although sales are expected be moderate in the initial month, they are projected to increase by 2% each following month. KSG's first year growth rate was 12%. This assumption is based on the fact that the sporting goods wholesale market is growing at 11.5% per year.
Keith's Sporting Goods will file as an S Corporation, where owners will be protected against various forms of liability. Our initial business stages will include a lot of debt financing through a local bank as well as the Small Business Association. We have forecasted the need for 60% debt, the owner and operator will invest the rest.
Depending on the timing and amount of financing, we expect to open the store by January next year. We also anticipate strong profits by that time.
The store's primary goals are:
- Brand recognition. KSG will be a nationally recognized fitness and sporting goods retailer in Eugene
- To be able to make a profit in the first 12 months of your business.
- Achieve a 15% increase in sales over the first two years, and then maintain an 11.5% rate of growth thereafter.
- Maintain a constant gross margin of 40%. Sales will grow faster if we can do this while keeping costs low.
KSG strives toward building long-term relationships with our customers and employees. Store management will continue to emphasize the importance of working with the community, encouraging community service and encouraging additional education for our employees. We feel it is crucial to give back and encourage community service. However, we also want to create an environment that allows employees to develop as individuals.