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, which is a limited liability company, will purchase it. The business will continue to be known and operated as Sportsuchtig.
Sportsuchtig offers quality sporting goods equipment to the whole family. The company primarily focuses on softball equipment, apparel, and accessories from major manufactures like Easton. The company was established as a retail store in 1986 and created an Internet sports store in 1996. The company employs 10 people in a 7,400-square foot facility that houses the call center, office, retail store, product warehouse and office. 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.
Sportsuchtig generated verifiable income pre-tax of an average $194,000, and total owner’’s benefit of more than $323,000. This is an excellent business with strong potential for growth. Implementing this business plan will allow the business to reach revenue levels exceeding $5 million in five years. Sales are projected to be flat in year one and then grow at 20% in years 2-5. This growth forecast assumes that these key opportunities are taken advantage of by the company.
- Redesign, update and marketing the Internet store.
- Relocation of the existing retail shop.
- Other sports, such as softball and baseball, may be added to the product line.
- In order to capture a significant portion of the team’s market for sales, it is necessary to create an outside team.
- Optimized inventory purchasing, management, and tracking
We plan on moving the business in the latter half of year 1, which will position us to increase retail sales, starting in year 2. The website will undergo a redesign within the first six months. The Web marketing strategy for the site will be implemented in time. 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, the owner of the business, will manage it as President and Chief Executive Officer. Johnson’s experience in high-tech and sports business, as well as his entrepreneurial skills, make him an ideal leader to lead this sporting goods/internet venture. 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. Johnson Enterprises, LLC, Johnson Investments, LLC, were founded by Johnson Johnson. Johnson Enterprises, LLC is a company that designs, builds, and sells custom-made game courts (basketball, basketball, etc. Sports goods, synthetic putting greens, as well as sporting goods products. Mr. Johnson earned a Bachelor of Science Degree in Computer Science at Stone College in Boulder Colorado and a Masters of Business Administration degree from the University of Illinois.
1.1 Objectives
- Maintain or exceed in year one the sales levels from two years ago ($2.5million), gross margin (25%), as well as net margin (12%).
- Realize an annual growth rate of 20% in the years 2-5 to reach over $5 million in sales at the end of each year
- Improve gross margins by 25% to 35% by year end
- To improve net margins at the end-of-year 5.
- The Internet e-commerce shop must be redesigned and upgraded by the end the first year.
- Invest in aggressive Web search optimization, marketing and to increase website traffic by 50% and sales by 20% in the years 1-5.
- 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.
- For underprivileged children to gain self-esteem and confidence through youth sport programs, it is important to establish relationships with local non-profit organizations.
- Family-run the business. The emphasis should be on integrity, honesty, quality relationships, having fun and giving back.
1.2 Mission
By building a lasting relationship with our customers, we aim to be the preferred supplier of sports equipment. 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.
- The existing retail store should be relocated to a densely populated and growing area.
- Reaching optimal agreements with our major suppliers will allow us to increase margins and lower costs. This will also enable us to maximize inventory control and turnover.
- Implement a state-of-the-art, computerized inventory management system to improve inventory turnover and tracking.
- You can expand the product range by adding equipment to other sports that are in high demand during slow seasons of Sportsuchtig.
- 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 as well as how to support customers and provide family-oriented service.
- Train an existing employee, or hire from outside, a store manager to cover for and be the backup for the Owner/President.
- Advertise in the areas where our target customers are able to find out more about our internet stores and retail outlets.
- You will need to build a reliable operation infrastructure that can serve customers.
- Take part in charitable activities, sponsor local leagues and tournaments, and be active in your community.
- You must ensure that The Sportsuchtig’s values are followed every day in your management practice, so that you can build and maintain a profitable business.