Tennis Master Pro Shops, Inc. operates retail tennis stores known as Tennis Master Pro Shops. Each retail location sells custom racket fitting and indoor tennis instruction. Both of these revenue streams have high profit margins and require low inventory. Custom fitted rackets are made on site from components and are marketed under the “Tennis Master” brand name. In-store instruction and training in tennis are provided by a USTA professional at every store.
A Tennis Master Pro Shop measures 5,000 sq. ft. and contains two virtual reality tennis simulations, two computer swing analysis and racket fitting systems, as well as four additional practice courts. Private label and brand name tennis merchandise are also included in the product mix.
Tennis Master expects to grow from its 15 stores to a total of 380 stores in the next three-years. Ten stores will be owned by the company and the rest will be franchised. Qualified regional marketing professionals will be able to sell forty Master Franchise Licenses. This will allow them to grow at the high rate that this expansion plan targets.
Tennis Master franchises, as well as company-owned stores, will all fall under the corporate umbrella Tennis Master Pro Shops, Inc. Annual revenues combined are projected to reach $6.8million in Year 1, $14.3million by Year 2, and $23million in Year 3. Profits are expected increase from $1.8 million to $5million in Year 1 and to $9.3million in Years 2 and 3. Over the same period, margins will increase from 26.7% – 40.3%. These highlights of the over-all plan are illustrated in the chart below:
1.1 Objectives
Tennis Master’s goal is to become the nation’s largest indoor training facility. Our ultimate goal for the company is 400 retail stores. As our ultimate goal, we have targeted 40 Master Franchises. Each Master Franchise has ten retail locations.
- Year 1󈝶 Master Franchises, 60 retail shops.
- Year 2–20 Master Franchises and 120 retail stores (Cumulative: 30 Master Franchises and 180 retail stores).
- Year 3󈝶 Master franchises and 200 retail locations (Cumulative : 40 Master franchises and 380 retail shops).
This table illustrates the expansion plan. It is found in Appendix “D” (Note: this appendix is customer-included and is not part a standard business plan).
Each store should aim to use 25% of the available training time. All the projections in this plan are based on timed growth up to the 25% utilization level. Achieving this level of utilization can lead to highly profitable retail shops. To ensure the success of your plan, you will need to have profitable stores as well as successful franchise sales.
1.2 Mission
Tennis Master Pro Shops, Inc. strives to offer the finest indoor tennis training available. We seek to promote the enjoyment of the game of tennis by helping tennis enthusiasts of all levels play better tennis. This product will be delivered via individual instruction and the fitting of an individual tennis player’s equipment. We provide all our products and services at convenient times and places for our customers.
Tennis Master Pro Shops, Inc. will offer outstanding business opportunities to its franchisees. We also promise to provide the training and ongoing support that is outlined within our franchise program.
1.3 Keys for Success
Here are the keys to success for Tennis Master’s Business:
- Attainment and achievement of our store expansion goals (both franchise stores and company stores).
- Attained a minimum of 25% training time in each retail outlet.
- Obtaining initial capitalization.
- Execution of franchise marketing programs
- Executing retail marketing program.
- Conversion of existing stores to training/racket-fitting format.
- You can pay attention to where your products are located by using the economic and tennis playing demographics.
- Management control of both company and franchise stores.
- Cash flow management.