Are you about starting a sporting goods retail store? If YES, here is a complete sample sporting goods retail store business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting a sporting goods retail store.
We also took it further by analyzing and drafting a sample sporting goods retail store marketing plan template backed up by actionable guerrilla marketing ideas for sporting goods retail stores. So let’s proceed to the business planning section.
Why Start a Sporting Goods Retail Store?
There are businesses that someone with little schooling and no serious business background and training can start. One of such businesses is to open a sporting goods retailing store. The major things you need to have in place to make success from this type of business is a good location, easy access to wholesale supply of quality sporting goods and good customer service cum accounting skills.
The truth is that if your store is located in an area with good human and vehicular traffic, a place with the right demographic composition (sports men and women) and you have quality sporting goods from different brands, you may not have to struggle to get people to visit your shop and make purchase.
The truth is that, it is one thing to have a fantastic idea cum business plan, it is entirely another thing for the business plan to translate to money (profits) that is why it is important to assemble a team of dedicated workers to work with if you want to be successful with your sporting goods retail store business; you can hardly run this type of business without the right network with wholesale supplier quality sporting goods.
Below is a sample sporting goods retail store business plan template that will help you successfully write yours without much stress;
A Sample Sporting Goods Retail Store Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
Operators in the Sporting Goods Stores industry mainly retail new sporting goods, such as bicycles, camping equipment, exercise and fitness equipment, apparel, footwear and other sporting goods and accessories. Supplies are sourced from sporting goods manufacturers and wholesalers and then sold to the general public via retail stores. It is important to state that department stores, mass merchants and retailers that exclusively sell apparel are not part of the sporting goods stores industry.
A close study of the Sporting Goods Stores industry shows that the industry has indeed done pretty well and this is due to the strong demand for sporting goods from sport enthusiasts and health-conscious individuals. With the sports participation rate anticipated to rise in the nearest future, more consumers would purchase athletic apparel, footwear and other sporting goods for their fitness regimens and exercises.
Even though time-strapped individuals will find it difficult to incorporate fitness and sporting activities into their daily regimen, rising health consciousness and per capita disposable income will spur demand for sporting goods over the next half a decade.
The Sporting Goods Stores industry is indeed a thriving line of business in most countries of the world. In the united states of America, the industry generates a whooping sum of well over $47 billion annually from more than 39,814 sporting goods retail outlets scattered all around the United States of America.
The industry is responsible for the employment of well over 284,960 people. Experts project that the industry will grow at a 2.1 percent annual rate between 2011 and 2016. The establishment in this industry that has dominant market shares in the United States of America are; Academy Sports & Outdoors, Cabela’s Inc., Dick’s Sporting Goods Inc., and REI.
A recent report published by IBISWORLD shows that the Sporting Goods Stores industry is highly fragmented and characterized by a large number of small players as well as several companies that each contribute about 10.0 percent of the total revenue generated in the industry.
The report further stated that many industry operators are family owned or independently operated and cater to a market niche of local consumers. For instance, about 50.0 percent of total industry establishments are non – employers, meaning they are sporting goods stores that are owner-operated with no additional employees.
However, although there is a large amount of non – employers, these establishments are expected to account for only 3.5 percent of total industry revenue. As mass merchandisers enter the Sporting Goods Stores industry, the landscape for the industry has changed.
It is a fact that an estimated two-thirds of the United States’ gross domestic product (GDP) comes from the general retail industry of which the sporting goods stores industry contributes greatly. This is why the United States of America’s economy is measured with the yardstick of how well the retailing business is fairing in the U.S.
In essence, when there is an unstable economy, purchasing power drops and it impacts the retailing / sporting goods stores industry negatively which may result in the closure of some furniture retail stores.
Over and above, the sporting goods stores industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale in a street corner or you can choose to start on a large scale with several outlets in key cities through the United States of America and Canada.
2. Executive Summary
Jerry Carlton Sports Store®, Inc. is a standard and registered sporting goods retail store business that will be located in one of the busiest streets in Charleston – South Carolina.
We have been able to lease a facility that is big enough (a 5 thousand square foot facility) to fit into the design of the kind of standard sporting goods retail store that we intend launching and the facility is located in a corner piece in between the largest residential estate James Island Recreational Sporting complex in Charleston – South Carolina.
Jerry Carlton Sports Store®, Inc. will retail sporting equipment, athletic apparel, athletic footwear, athletic uniforms, bicycle (except motorized), bowling equipment and supply, diving equipment, exercise equipment, fishing supply, golf equipment and supply, other sporting goods (e.g. scuba, skiing and outdoor) and saddlery et al from different manufacturers (brands) from the United States and abroad.
We are set to services a wide range of clientele in and around Charleston – South Carolina. We are aware that there are several large and small chains of sporting goods retail store outlets all around Charleston – South Carolina, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors.
We have an online – service option for our customers, and our outlet is well secured with various payments of options. Jerry Carlton Sports Store®, Inc. will ensure that all our customers are given first class treatment whenever they visit our sporting goods retail store.
We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customers’ base may grow to. We will ensure that we get our customers involved in the selection of brands that will be in our store and also when making some business decisions.
Jerry Carlton Sports Store®, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our customers.
Jerry Carlton Sports Store®, Inc. is a family business that is owned by Jerry Carlton and his immediate family members. Jerry Carlton has a B.Sc. in Business Administration, with well over 5 years of experience in the retailing stores industry, working for some of the leading brand in the United States.
Although the business is launching out with just one outlet in Charleston – South Carolina, but there is a plan to open other outlets all around major cities in the United States and Canada.
3. Our Products and Services
Jerry Carlton Sports Store®, Inc. is in the sporting goods retail stores industry to service a wide range of clients and of course to make profits, which is why we will ensure we go all the way to make available a wide range of sporting goods from top manufacturing brands in the United States and other countries of the world.
We will ensure that we do all that is permitted by the law of the United States to achieve our aim and ambition of starting the business. Our product offerings are listed below;
- Sporting equipment
- Athletic apparel
- Athletic footwear
- Athletic uniforms retailing
- Bicycle (except motorized) retailing
- Bowling equipment and supply retailing
- Diving equipment retailing
- Exercise equipment retailing
- Fishing supply retailing
- Golf equipment and supply retailing
- Other sporting goods (e.g. scuba, skiing and outdoor) retailing
- Saddlery retailing
4. Our Mission and Vision Statement
- Our vision is to become one of the leading brands in the sporting goods retail stores industry in South Carolina and to establish a one stop sporting goods retail store in Charleston – South Carolina and in other key cities in the United States of America and Canada.
- Our mission is to establish a world – class sporting goods retail store business that will make available a wide range of sporting goods from top sporting goods manufacturing brands at affordable prices to the residence of Charleston – South Carolina and other key cities in the United States of America and Canada where we intend opening of chains of sporting goods retail stores and franchise.
Our Business Structure
Jerry Carlton Sports Store®, Inc. do not intend to start a sporting goods retail store business like the usual mom and pop business around the street corner; our intention of starting a sporting goods retail store business is to build a standard and one stop sporting goods retail store outlet in Charleston – South Carolina.
Although our sporting goods retail store business might not be as big as Academy Sports & Outdoors, Cabela’s Inc., Dick’s Sporting Goods Inc., and REI et al, but will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers). As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.
In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Store Manager
- Human Resources and Admin Manager
- Merchandize Manager
- Sales and Marketing Manager
- Information Technologist
- Accountants / Cashiers
- Sales Agents / Customer Services Executive
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities.
- Responsible for managing the daily activities in the store
- Ensures that proper records of sporting goods are kept and warehouse does not run out of products
- Ensures that the store facility is in tip top shape and goods are properly arranged and easy to locate
- Interfaces with third – party suppliers (vendors)
- Controls sporting goods distribution and supply chain inventory
- Supervises the workforce in the sporting goods sales floor.
- Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Helps to ensure consistent quality of sporting goods from different manufacturers are purchased and retailed in good price that will ensure we make good profit
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
- Ensures that the organization operates within stipulated budget.
Sales and Marketing Manager
- Manages external research and coordinates all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer purchases
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding increase sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
- Manages the organization website
- Handles ecommerce aspect of the business
- Responsible for installing and maintenance of computer software and hardware for the organization
- Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
- Manages the organization’s CCTV
- Handles any other technological and IT related duties.
Accountant / Cashier:
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Client Service Executive
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries (answer customer queries regarding the store and the merchandise)
- Finds out the customer’s needs, recommend, select and help locate the right merchandise, describe a product’s features and benefits.
- make suggestions and encourage purchase of products
- Provides information about warranties, manufacturing specifications, care and maintenance of merchandise and delivery options
- Bag or package purchases and gift wrap merchandise
- Responsible for cleaning all the sporting goods and the store facility at all times
- Ensures that toiletries and supplies don’t run out of stock
- Cleans both the interior and exterior of the store facility
- Handles any other duty as assigned by the store manager.
6. SWOT Analysis
Our intention of starting just one outlet of our sporting goods retail store in Charleston – South Carolina is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then open other outlets all over major towns in South Carolina and key cities in the United States and Canada.
We are quite aware that there are several sporting goods retail stores all over Charleston and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.
Jerry Carlton Sports Store®, Inc. employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Jerry Carlton Sports Store®, Inc.;
Our location, the business model we will be operating on both (physical store and online store), varieties of payment options, wide range of footwear and our excellent customer service culture will definitely count as a strong strength for Jerry Carlton Sports Store®, Inc. So also, our team of highly qualify staff members is also a plus for us.
A major weakness that may count against us is the fact that we are a new sporting goods retail store outlet in Charleston – South Carolina and we don’t have the financial capacity to compete with multi – million dollars sporting goods retail store outlets like Academy Sports & Outdoors, Cabela’s Inc., Dick’s Sporting Goods Inc., and co when it comes to retailing at a rock bottom prices for all their sporting goods.
The fact that we are going to be operating our sporting goods retail store in between the largest residential estate James Island Recreational Sporting complex in Charleston – South Carolina provides us with unlimited opportunities to sell our sporting goods to a large number of individuals, sport clubs and corporate organizations.
We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our sporting goods store outlets; we are well positioned to take on the opportunities that will come our way.
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new sporting goods retail outlet in same location where ours is located. So also, unfavorable government policies may also pose a threat for businesses such as ours.
7. MARKET ANALYSIS
- Market Trends
If you are conversant with the Sporting Goods Stores Industry, you will quite agree that the changes in disposable income, consumer sentiment, and ever changing trends are major growth drivers for sales in this industry. No doubt, a massive rise in consumer confidence has also contributed in helping the industry experience remarkable growth, but uneven performance in these drivers has led to slightly constrained revenue growth for the Sporting Goods Stores industry.
So also, the rising demand for trendy sport wares, as a result of increasing disposable income and consumer sentiment, will result in revenue growth, but profit margins will stagnate as sporting goods retail stores keep prices low to attract more sales amid growing competition.
A close watch on the sporting goods stores industry activities reveals that, the industry has indeed done pretty well and this is due to the strong demand for sporting goods from sport enthusiasts and health-conscious individuals. With the sports participation rate anticipated to rise in the nearest future, more consumers would purchase athletic apparel, footwear and other sporting goods for their fitness regimens and exercises.
Even though time-strapped individuals will find it difficult to incorporate fitness and sporting activities into their daily regimen, rising health consciousness and per capita disposable income will spur demand for sporting goods over the next half a decade.
As part of
Lastly, in recent time, the sporting goods retail stores landscape has seen tremendous changes in the last 20 years; it has grown from the smaller outlets to a more organized and far reaching venture. The introduction of franchise and online store makes it easier for a retailer to reach out to a larger market far beyond the areas where his physical shoe retail store is located.
8. Our Target Market
Possibly it will be safe to submit that the sporting goods retail stores industry has one of the widest range of customers; almost everybody on planet earth need one form of sports ware or the other especially if they can afford it.
In view of that, we have positioned our sporting goods retail store to service the residence of Charleston – South Carolina and every other location where franchise cum outlets of our sporting goods retail stores will be located all over key cities in the United States of America and Canada.
We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us. We are in business to retail a wide range of sporting goods to the following groups of people and corporate organizations;
- Men and women
- Bachelors and Spinsters
- Corporate Executives
- Business People
- Sport Clubs
- About to wed couples
- Sports men and women
Our competitive advantage
A close study of the sporting goods retail stores industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.
We are aware of the stiffer competition and we are well prepared to compete favorably with other leading sporting goods retail stores in Charleston – South Carolina and throughout the United States and Canada.
Jerry Carlton Sports Store®, Inc. is launching a standard one stop sporting goods retail store that will indeed become the preferred choice of residence of Charleston – South Carolina and every other location where our outlets will be opened.
Our sporting goods retail store is located in between the largest residential estate James Island Recreational Sporting complex in Charleston – South Carolina We have enough parking spaces that can accommodate well over 30 cars per time.
One thing is certain; we will ensure that we have a wide range of sporting goods from leading manufacturers available in our store at all times. It will be difficult for customers to visit our sporting goods retail store and not see the type of sports ware they are looking for.
One of our business goals is to make Jerry Carlton Sports Store®, Inc. a one stop sporting goods retail shop for household, sports clubs, schools and corporate organizations. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups sporting goods retail stores) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Jerry Carlton Sports Store®, Inc. is in business to retail a wide range of sporting goods to the residence of Charleston – South Carolina. We are in the sporting goods retail stores industry to
- Sporting equipment
- Athletic apparel
- Athletic footwear
- Athletic uniforms
- Bicycle (except motorized)
- Bowling equipment and supply
- Diving equipment
- Exercise equipment
- Fishing supply
- Golf equipment and supply
- Other sporting goods (e.g. scuba, skiing and outdoor)
10. Sales Forecast
One thing is certain when it comes to sporting goods retail stores, if your store is well stocked with various types of sporting goods and centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Charleston – South Carolina and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.
We have been able to critically examine the sporting goods retail stores industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Charleston – South Carolina.
Below are the sales projections for Jerry Carlton Sports Store®, Inc. it is based on the location of our business and other factors as it relates to sporting goods retail stores start – ups in the United States;
- First Fiscal Year-: $250,000
- Second Fiscal Year-: $450,000
- Third Fiscal Year-: $750,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor retailing same sporting goods brands and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location for Jerry Carlton Sports Store®, Inc. we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Charleston – South Carolina. We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.
We hired experts who have good understanding of the sporting goods retail stores industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Charleston – South Carolina.
In other to continue to be in business and grow, we must continue to sell the sporting goods that are available in our store which is why we will go all out to empower or sales and marketing team to deliver. In summary, Jerry Carlton Sports Store®, Inc. will adopt the following sales and marketing approach to win customers over;
- Open our sporting goods retail store in a grand style with a party for all
- Introduce our sporting goods retail store by sending introductory letters alongside our brochure to organizations, households, sports clubs, schools and key stake holders in Charleston – South Carolina
- Ensure that we have a wide range of sporting goods from different brands at all times.
- Make use of attractive hand bills to create awareness and also to give direction to our sporting goods retail store
- Position our signage / flexi banners at strategic places around Charleston – South Carolina
- Position our greeters to welcome and direct potential customers
- Create a loyalty plan that will enable us reward our regular customers
- Engage on road shows within our neighborhood to create awareness for our sporting goods retail store.
- List our business and products on yellow pages ads (local directories)
- Leverage on the internet to promote our business
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
- Join local chambers of commerce and industries to network and market our products
11. Publicity and Advertising Strategy
Despite the fact that our sporting goods retail store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our sporting goods retail store.
Jerry Carlton Sports Store®, Inc. has a long-term plan of opening outlets in various locations all around South Carolina and key cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in Charleston before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Jerry Carlton Sports Store®, Inc.;
- Place adverts on community based newspapers, radio stations and TV stations.
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Badoo, Google+ and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Charleston – South Carolina
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Contact corporate organizations, households, landlord associations and schools by calling them up and informing them of Jerry Carlton Sports Store®, Inc. and the products we sell
- Advertise our sporting goods retail store business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and trucks and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.
12. Our Pricing Strategy
Aside from quality, pricing is one of the key factors that gives leverage to sporting goods retail stores, it is normal for consumers to go to places (sporting good retail outlets) where they can get sport wares at cheaper price which is why big player in the sporting goods stores industry like Academy Sports & Outdoors, Cabela’s Inc., Dick’s Sporting Goods Inc., and co will attract loads of corporate and individual clients.
We know we don’t have the capacity to compete with Academy Sports & Outdoors, Cabela’s Inc., Dick’s Sporting Goods Inc., and co but we will ensure that the prices and quality of all the sporting goods that are available in our store are competitive with what is obtainable amongst sporting goods stores within our level.
- Payment Options
The payment policy adopted by Jerry Carlton Sports Store®, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Jerry Carlton Sports Store®, Inc. Will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards / Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for our sporting goods purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our products.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting / leasing a big facility, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.
The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a sporting goods retail store business; it might differ in other countries due to the value of their money.
This is the key areas where we will spend our start – up capital on;
- The total fee for registering the business in the Unites States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of Jerry Carlton Sports Store®, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring business consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
- The cost for shop remodeling (construction of racks and shelves) – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The cost for start-up inventory (stocking with a wide range of sporting goods from different manufacturing brands) – $350,000
- The cost for counter area equipment – $9,500
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase and installation of CCTVs: $10,000
- The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
- The cost of launching a website: $600
- The cost for our opening party: $7,000
- Miscellaneous: $10,000
We would need an estimate of $750,000 to successfully set up our sporting goods retail store in Charleston – South Carolina. Please note that this amount includes the salaries of all the staff for the first month of operation.
Generating Funds / Startup Capital for Jerry Carlton Sports Store®, Inc.
Jerry Carlton Sports Store®, Inc. is a private registered business that is solely owned and financed by Jerry Carlton and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.
These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $250,000 (Personal savings $200,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Jerry Carlton Sports Store®, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to retail our wide range of quality sporting goods a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Jerry Carlton Sports Store®, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the shop: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Compilation of our list of products that will be available in our store: Completed
- Establishing business relationship with vendors – manufacturers and suppliers of sporting goods: In Progress