youth sports business plan pdf

The National Recreation and Parks Association

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Youth sports program planning.

By Jason Schaitz, MBA, CPRE | Posted on November 10, 2021

Planning is the cornerstone of any well-run youth sports program. If you fail to plan, you plan to fail! Proper planning prevents poor performance! Planning is extremely important in coordinating any high-level program. Planning can come in many forms and most all plans are open and customizable to how you want to operate. Below are some tips on different plans you should have in place within your youth sports programs.

• Scheduling : Schedule out your program dates at least a year in advance. If you run multiple sports leagues organize your dates in a program calendar to give you a picture of the entire year. If you are coordinating programs all year round, you also want to have a solid programming plan in place. Once your schedules are set for the year communicate it!
• League Documents: No matter what types of documents you use in your league make sure you have your templates ready to go well before your next season. These include things like parents’ packets, rules books, forms, flyers, administrative spreadsheets, etc. Plan out all the documents you need and keep them accessible and organized in one area.
• Marketing : Marketing plans can come in several forms but at the very least have a calendar or outline on when you want to start to market your programs and what marketing channels you want to use. Narrow your marketing efforts to each of your target markets for more effective marketing and communication. Market to past participants as well as the local community.
• Budget: Your budget is the planning tool for your finances. Sound budgeting will ensure you only spend what you are able to spend based on your forecasted revenue and expenses. Once your budget is created, stick to it as close as possible and track EVERY expense that comes in to make sure you stay on track.
• Staffing : If you are a larger organization and have the ability to staff your games with part-time staff or scorekeepers, have a plan to staff your programs. You may also have your own in-house referees or work with an officiating association. Falling short on staff will have a direct effect on your game days and may leave some fields unsupervised or canceled altogether. Make sure to know your optimal staffing levels and have a plan to ensure you never fall short!
• Staff Training : Training and education is an ongoing process and should be taken seriously. You don’t have to do all your training in-house, as there are tons of resources out there to provide staff trainings. Regardless of how you want to do it, have an annual training program in place to make sure you get the most out of your most valuable investment, your staff.
• Volunteer Management: Volunteer coaches are the heart of your league and no youth sports league can happen without them. It is extremely important to have a plan to recruit, retain, educate and train your volunteer coaches or any other volunteers that may be a part of your program. The best programs generally have the best volunteer base.
• Parent Management: Plan on how you are going to manage your parents. This includes education, game day expectations, and your code of conduct.
• Fundraising: Many youth sports leagues will rely on some type of fundraising to help subsidize your registration fees and provide enough revenue to keep the league running. Have a fundraising plan to keep your fundraising goals on track.
• Maintenance: If your organization also maintains your sports facilities, create a maintenance plan that focuses on your preventative maintenance for every aspect of your facilities. A sound preventative maintenance plan will keep your facility aesthetically pleasing, increase the lifespan of your assets, and help you identify how long things are supposed to last and when they need to be replaced.
• Risk Management: Regular inspections, having proper insurance, and creating emergency action plans are all part of your overall risk management plan. Limiting your liability will prevent a catastrophic incident from closing down your program for good.
• Equipment Inventory: Have a plan for managing your equipment inventory so you always know how much you have on hand and when you need to order more.

To raise awareness about the benefits of youth sports programs, NRPA has also developed a communications toolkit , in partnership with the Walt Disney Company, to help park and recreation professionals make connections and encourage participation in park and recreation youth sports programs. This toolkit provides data-backed messaging, sample social media posts, template graphics and more.

All of the above can be put together to form part of your organization’s business plan and comprehensive strategic plans. Short-term planning can take place a year in advance with long-term plans going out 5-10 years. Regardless of how long you are planning out you should always review and adjust your plans on a regular basis. Lack of planning will always show, so remember if you put in the extra planning work up front, it will make your job easier, your operations smoother, and your overall programs better in the long run!

Jason Schaitz, MBA, CPRE , is a parks and recreation director in the state of Florida with 15 years of experience managing youth sports, camps and recreation programs. He also created and manages League Source and The Summer Camp Source with the goal of providing free high-quality resources for any type of youth sports or camp program. Take your leagues and camps to the next level by visiting our websites for free resources and education!

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Sample Youths Sports Business Plan

Here is how to write a business plan for a youth sports business.

Are you an industry player in the sporting sector and wish to establish your own independent operations?

You should know better than anyone that it’s a worthwhile undertaking that requires planning. Of course, such planning means you’ll need to put together a sound business plan.

Need to write a plan for your venture? Download a FREE Business Plan PDF Sample to develop a template for your own startup.

YOUTH SPORTS BUSINESS PLAN SAMPLE

This won’t be possible without the right knowledge or guidance.

With a great plan, you’re able to assess the feasibility of your youth sports business idea , determine your financial needs, as well as identify set goals as efficient ways to achieve the same.

Also crucial is the need to help investors feel confident by showing them practical ways they can get a return on investments.

You Can’t Skip Any of these Sections

To begin with, certain sections are crucial to the process of writing a great plan .

These give more coverage and structure to your plan. They include the executive summary, the company description, the products & services section, and also the market analysis section.

Others sections like the strategy & implementation, the organization & management team and the financial plan & projections sections are equally important.

For a detailed look at what these sections are about, let’s take a look at each of the points mentioned.

i. Executive Summary

Your youth sports business plan should have a summary section where all the key points within your plan are highlighted and explained.

As always, this should be concise and shouldn’t bore the reader. At most, your executive summary should have around 5 pages.

Important inclusions of the executive summary section consist of the introduction of your youth sports business idea by providing its name & location.

There should be other details like the products & services, the mission & vision statements, and the purpose of the plan.

Business Name & Location

Anyone going through your executive summary section should know the sports business name as well as its location. This provides a starting point for knowing the business and what it stands for.

You’re expected to have figured out such details before writing the plan.

Products & Services

What type of youth sports business do you wish to establish? You’ll need to provide key details about the products and services here.

It’s important to avoid providing too many details here as there’s a whole section dedicated to products and services in the main sections of the business plan.

Mission & Vision Statements

Your mission statement should touch on what purpose your youth sports business serves.

Also, this short statement should touch on your corporate strategy. The vision statement on the other hand seeks to state the current and future objectives of your sports business.

More importantly, the vision statement sets strategic goals on what needs to be accomplished. As an internal communications tool, it should help align the collective efforts of your workforce towards achieving your set goals.

Purpose of the Plan

The purpose of your youth sports business plan is vital to its achievement.

It basically points to what’s needed. Such could be in terms of set strategies or for purposes of securing investments. Whatever your purpose is, have it clearly stated under this section for more clarity.

ii. Company Description

Your audience will be interested in finding out about the whole concept of your youth sports business.

This section should provide all such information by highlighting your preferred legal structure, a summary of your short and long-term goals, as well as including a brief history of the business, and what needs you wish to fill or meet.

Further details such as company growth achieved so far, and information on sporting services and customers will be a great addition.

iii. Products & Services

Every business offers a wide range of products and services.

So, what does yours offer? Your services and products will mostly be sports-related. Provide a detailed description of these in addition to the benefits your clients get from them.

Any serious business should have or carry out research and development activities to better their service offers. If you have such in the works, provide details on them where necessary.

Understanding and providing information on the market role of your products is important.

iv. Market Analysis

The market analysis section of your youth sports business plan should demonstrate your understanding and knowledge of the industry. Areas to cover include a sketch of targeted customer segments in addition to details on demographics.

You’ll need to also provide historical, current, and projected marketing data for services and products. Understanding the strength and weaknesses of your competition is another area to cover and include under this section.

v. Strategy & Implementation

Your youth sports business plan can only be well implemented when there’s an effective strategy in place.

Details should include information on business promotion and market entry, the functioning of the business, and a breakdown of pricing, costing, and distribution among others.

vi. Organization & Management Team

Your organizational team is crucial to the successful takeoff and running of your youth sports business.

As such, it should touch on key areas like providing an organizational chart that clearly describes departments and key employees. You should also provide the name(s) of the owner(s).

Other accompanying information should be the percentage ownership, extent of involvement, as well as a biography with emphasis on skills. Your management team shouldn’t be left out.

Include information such as names, positions, and responsibilities in addition to prior experience.

vii. Financial Plan & Projections

Financial plan & projection is where a great deal of accounting experience is necessary.

This shouldn’t be a problem if you have such knowledge. However, if you don’t have the experience necessary, consider seeking professional help.

An accountant carries out all sorts of analysis touching on historical financial data, as well as your realistic prospective financial information covering balance sheets, income statements, cash flow statements, etc covering a period of 5 years.

A good job done here will help guarantee a sound financial future for your youth sports business.

As always, we recommend taking the time necessary to write a great plan. The success of your youth sports business largely depends on how well the business plan is written.

With this template, there shouldn’t be much difficulty putting together a sound business plan for your youth sports business. You may also seek expert help if you feel stuck at any point.

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Sample YSO Budget

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Administrators, board presidents, and youth sports organization leaders are tasked with managing the fiscal resources for an organization an on annual basis. Budgets will vary by sport, area, participation numbers, and other factors that will affect costs, but there are several line items that should be considered regardless of the organization details.

This sample budget contains a list of budget line items to consider as an organization looks to allocate funds for the year. There may be some years where an organization is more heavily weighted in one area or another due to needs and priorities. Likewise, there may be some categories that don't require any funding at all for a certain year.

We recommend budgeting for Positive Coaching Alliance training/workshops each year. Inevitably there will be new coaches, parents and athletes who join your organization each year, and there is no better way to uphold your positive coaching culture than by getting everyone on the same page around your expectations.

Download the Worksheet

• Type: PDF Document
• Size: 78 KB

Related Resources

Enlist volunteers for your YSO with these tools for outlining expectations and responsibilities.

External Link

Athletic & Activities Director Vinay Mullick knows fundraising plays no small part as school budgets shrink.

Read these tips for how to make an in-person registration day for your YSO go smoothly.

Here is an example of a board meeting agenda used to ensure that all necessary business is addressed.

This contract, signed by each board member, states their pledge to the board and league.

Looking for signups? Check out this sample flyer promoting registration for your league.

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Basketball Training Business Plan Template & Guidebook

How to write a basketball training business plan in 7 steps:, 1. describe the purpose of your basketball training business..

It also helps to include a vision statement so that readers can understand what type of company you want to build.

2. Products & Services Offered by Your Basketball Training Business.

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your basketball training business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

Target market

Customer base , product or service description, competitive analysis, marketing channels, form an llc in your state, 4. write your operational plan., what equipment, supplies, or permits are needed to run a basketball training business.

You will also need to obtain the necessary permits and licenses to operate your business. This may include a business license and any other permits required by your city or state. It's important to research the specific requirements in your area before starting your business.

5. Management & Organization of Your Basketball Training Business.

The second part of your basketball training business plan is to develop a management and organization section.

6. Basketball Training Business Startup Expenses & Captial Needed.

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a basketball training business varies based on many different variables, but below are a few different types of startup costs for a basketball training business.

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your basketball training business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

Here are some steps you can follow to devise a financial plan for your basketball training business plan:

Frequently Asked Questions About Basketball Training Business Plans:

Why do you need a business plan for a basketball training business, how to write a business plan for your basketball training business).

To build a business plan for your basketball training business, start by researching your industry, competitors, and target market. Use this information to define your business's goals and objectives, as well as the strategies and tactics that you will use to achieve those goals. Next, create a financial plan that outlines your projected income, expenses, and profit. This should include a projected income statement, cash flow statement, and balance sheet. Once you have all of this information, you can use it to create a comprehensive business plan that outlines the goals and objectives of your business, as well as the strategies and tactics that you will use to achieve those goals. A well-written basketball training business plan contains the following sections: Purpose, Products & Services, Marketing Plan (including Marketing Strategy), Operations/Management Plan (including Operations/Management Strategy), Financial Plan (including Financial Forecasts), and Appendixes.

Can you write a basketball training business plan yourself?

Related business plans, home inventory business plan template & guidebook, home inspection business plan template & guidebook, home decor business plan template & guidebook, health and wellness business plan template & guidebook, hauling business plan template & guidebook, hardware business plan template & guidebook, handyman business plan template & guidebook, hair extension business plan template & guidebook, handbag business plan template & guidebook.

I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

More From Forbes

How to balance mission and margin in youth sports.

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Jason Clement is Co-Founder and CEO of The Sports Facilities Companies (SFC) , a large network of community-based sports facilities.

The mission is clear: to create opportunities for all youth to participate in sports.

The benefits of youth sports—ranging from the physical, mental and emotional to learning life skills like setting and achieving goals, teamwork and overcoming obstacles and failure—are not a new revelation. Still, their impact remains as crucial as ever. It’s no coincidence that many high achievers in various areas, including 94% of C-suite women, have played sports, according to an Ernst & Young report.

But youth sports are expensive today. The average family pays $883 every year for one child’s main sport, according to the Aspen Institute’s "State of Play 2022" report. The cost and discrepancies grow greater when comparing household income. "Parents in the wealthiest households spent about four times more on their child’s sport than the lowest-income families," the report said. That means children in the U.S. have differing sports experiences, opportunities and upbringings based on money.

As the youth and amateur sports tourism industry continues to explode—it's expected to reach $77.6 billion by 2026—providing many opportunities to the masses must remain a priority beyond just focusing on the bottom line.

It is critical to balance the mission and margin so they fuel and support one another without sacrificing either.

Here are three ways those involved in the youth and amateur sports tourism industry can strike a balance that benefits everyone, most importantly the child. It takes a village, from sports organizations and clubs to corporate partners and local municipalities.

Best High-Yield Savings Accounts Of September 2023

Best 5% interest savings accounts of september 2023, provide a scale of opportunities..

I believe it is detrimental to the development of young people through sports to offer a singular inflexible and unachievable opportunity from which only a limited number of families can benefit. Household incomes vary, and it is essential for leaders in the youth sports space to create a scale of opportunities with lower barrier-to-entry services for as many families as possible, regardless of whether their annual household income is $40,000 or $400,000.

Sports Business Journal reported that from 2020 to 2021, nearly 68% of children between 6 and 17 in the wealthiest households participated in organized sports, compared to almost 34% of children in the lowest-income households. Dionne Koller, director of the Center for Sport and the Law at the University of Baltimore School of Law, told Sports Business Journal there are two main issues plaguing youth sports: exclusion and barriers to entry because the industry is heavily privatized and expensive, as well as the “professionalization of youth sports” for those once they’re in it.

Since urban areas account for 80% of the U.S. population , municipalities and communities have the opportunity to offer a range of youth sports opportunities while keeping their costs low. In addition to local recreation programs, leaders could consider creating local “travel” programs where teams play against nearby towns or neighborhoods before the child reaches high school. Those who cannot afford to travel across the country can still gain valuable experiences in their area without expensive travel costs. The players will benefit from learning about different neighborhoods and playing against kids from different backgrounds.

In my experience, most teams don’t need to travel more than an hour to compete. However, the scale can continue to another level for families with the means and desire to play outside their state through a club team or amateur athletic union program. That should be an option for families who want it.

Creating this scale and ladder of opportunities allows families to move up and down depending on their interest, desire, potential and investment in a child’s athletic growth and success—regardless of their point of entry.

Offer financial support or assistance.

Provide opportunities for kids to afford to play and participate throughout the various stages of the scale you have created. Similar to academic scholarships for colleges and universities, delegating funds through scholarships, corporate sponsorships and nonprofits go a long way in helping young athletes pursue their goals without any financial constraints.

Consider the United States Tennis Association, for example. The USTA does a great job leveraging the U.S. Open, the fourth and final Grand Slam of the season, to raise money for its foundation to create opportunities for youth players. Earlier this year, more than $3 million was raised at an opening night gala to support the USTA Foundation’s mission to fund tennis and education programs.

Money should never be the reason for a child not to participate.

Leverage strategic partnerships.

All of the above sounds well and good, but the fact is playing comes with real costs. Building or renting a facility, turning on the lights and providing high-quality coaches, trainers, equipment and programming all require resources. This is where the balance with the margin comes into play so as not to ostracize certain kids in the program and community.

While the apparent revenue source will be registration fees for the youth participants, that doesn’t have to be the only income stream for a program that must pay for all the necessities. Diversifying revenue-generating opportunities through food and beverage; merchandise sales; fundraisers, such as auctions or 50/50 raffles; and parking all help generate additional revenue to help drive margins while subsidizing the mission.

The USTA Foundation also leverages partnerships (paywall) with brands, such as American Express, JPMorgan Chase and Jersey Mike’s, to support its mission. Jersey Mike’s, for example, donated 20% of sales during a weekend in September to support the foundation.

Ultimately, the goal is to create opportunities for everybody. While a one-size-fits-all solution does not exist for every community, these are a few ways various organizations can mitigate issues while keeping the youth the top priority.

Sport is transformational. I believe it can transcend factions; heal generational wounds; provide a common vernacular; and breathe confidence and character into young, impressionable and developing leaders. The ball fields, courts and rinks today are the building grounds for the inhabitants of tomorrow’s board rooms, courts, government offices, entrepreneurial startups and, most importantly, kitchen tables and living rooms of healthy families.

Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?

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Indoor Sports Complex Business Plan Template

Written by Dave Lavinsky

Indoor Sports Complex Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their indoor sports complex companies. 

If you’re unfamiliar with creating an indoor sports complex business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write an indoor sports complex business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is an Indoor Sports Complex Business Plan?

A business plan provides a snapshot of your indoor sports complex business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for an Indoor Sports Complex

If you’re looking to start an indoor sports complex business or grow your existing indoor sports complex company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your indoor sports complex business to improve your chances of success. Your indoor sports facility business plan is a living document that should be updated annually as your company grows and changes. 

Sources of Funding for Indoor Sports Complex Businesses

With regards to funding, the main sources of funding for an indoor sports complex business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan (hand it to them in person or email to them as a PDF file) and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for indoor sports complex companies.

Finish Your Business Plan Today!

How to write a business plan for an indoor sports complex business.

If you want to start an indoor sports complex business or expand your current one, you need a business plan. The guide and sample below detail the necessary information for how to write each essential component of your indoor sports complex business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of indoor sports complex business you are running and the status. For example, are you a startup, do you have an indoor sports complex business that you would like to grow, or are you operating a chain of indoor sports complex businesses?

Next, provide an overview of each of the subsequent sections of your plan. 

• Give a brief overv iew of the indoor sports complex industry. 
• Discuss the type of indoor sports complex business you are operating. 
• Detail your direct competitors. Give an overview of your target customers. 
• Provide a snapshot of your marketing strategy. Identify the key members of your team. 
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of indoor sports complex business you are operating.

For example, you m ight specialize in one of the following types of indoor sports complex businesses:

• Indoor sport courts: In this type of indoor sports complex, a variety of specific courts are offered for game play or practice; including basketball, racquetball, handball, and volleyball. 
• Indoor field arenas: Including soccer, baseball, a running track and other field-sized options, an indoor arena offers a wide variety of sporting-options for field play. 
• Indoor pool and water play parks: This type of indoor sports complex provides a comprehensive water-play experience for families. In addition to lap pools and dive pools, kiddie pools and splash pads are set up for children of all ages. 
• Indoor gymnastics complex: An indoor sports complex equipped for gymnastics will include training and equipment; such as the pommel horse, tumbling mats, rings, parallel bars, ceiling swings, high-low bars, and a variety of other elements to build and strengthen gymnastic skills.

In addition to explaining the type of indoor sports complex business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of soccer leagues under contract, the national certification of swimming teams, the  X number of gymnastics clients served, etc.
• Your legal indoor sports complex business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the indoor sports complex industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the indoor sports complex industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your sports facility business plan:

• How big is the indoor sports complex industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your indoor sports complex business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your indoor sports complex business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: 

• Individuals who want to improve personal strength or aptitude in a sport
• Parents who seek training for their children in a sport or individual skill
• Families who want to enjoy physical exercise and play time together 
• Teams who are looking for a stable indoor environment in which to regularly play
• Corporations who are seeking an indoor team-building atmosphere

As you can imagine, the customer segment(s) you choose will have a great impact on the type of indoor sport complex business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers. Ideally you can speak with a sample of your target customers before writing your plan to better understand their needs.

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are othe r indoor sports complex businesses. 

Indirect competitors are options that customers may choose instead of your direct competitors. For example, families may choose to use a public pool or park, sports teams may opt for outdoor sports fields, or individuals may choose to build physical skills using equipment at home. You need to mention such competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of indoor sports complex business do they operate?
• What is their pricing (premium, low, etc.)?
• What are they good at or known for?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide options for sports professionals who need superior service?
• Will you offer services, such as sports training that your competition doesn’t?
• Will you provide better customer service?
• Will you offer customized amenities or services in the changing rooms?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an sports facility business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type o f indoor sports complex company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide instructor-led classes for children to learn how to play basketball, racquetball, handball and volleyball in your indoor courts?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the services you offer and their prices.

Place : Place refers to the site of your indoor sports complex company. Document where your company is situated and mention how the site will impact your success. For example, is your indoor sports complex business located in a busy urban district, a new residential area, or in a corporate business park ? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your indoor sports complex marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers, radio stations and/or magazines
• Reaching out to local websites 
• Distributing flyers
• Engaging in email marketing
• Advertising on social media platforms
• Improving the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your indoor sports complex business, including maintaining customer relationships, providing well-cleaned and maintained sports areas and equipment, and invoicing and servicing of customer accounts.  

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth soccer league, or when you hope to reach $X in revenue. It could also be when you expect to expand your indoor sports complex business to a new city.

Management Team

To demonstrate your indoor sports complex business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally, you and/or your team members have direct experience in managing indoor sports complex businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in owning or managing an indoor sports complex business or successfully running a gymnastics center or public sports park.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance s heet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you see 50 sports players per day? Or, will you have more than 20 teams on contract for league play each season? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your indoor sports complex business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing an indoor sports complex business:

• Cost of sport court lighting, set up, build-out and equipment
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and furnishings

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your 10-year building lease agreement or a list of early-adopter customers who’ve paid in advance for a 5-year membership.

Writing a business plan for your indoor sports complex business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the indoor sports complex industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful indoor sports complex business.

Indoor Sports Complex Business Plan FAQs

What is the easiest way to complete my indoor sports complex business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your indoor sports complex business plan.

How Do You Start an Indoor Sports Complex Business?

Starting an indoor sports complex business is easy with these 14 steps:

• Choose the Name for Your Indoor Sports Complex Business
• Create Your Indoor Sports Complex Business Plan
• Choose the Legal Structure for Your Indoor Sports Complex Business
• Secure Startup Funding for Your Indoor Sports Complex Business (If Needed)
• Secure a Location for Your Business
• Register Your Indoor Sports Complex Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Indoor Sports Complex Business
• Buy or Lease the Right Indoor Sports Complex Business Equipment
• Develop Your Indoor Sports Complex Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Indoor Sports Complex Business
• Open for Business

Where Can I Download a Free Business Plan Template PDF?

Click here  to download the pdf version of our basic business plan template.

Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.

We do offer a premium version of our business plan template.  Click here to learn more about it.  The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements.  Here’s the link to our Ultimate Business Plan Template.

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Other Helpful Business Plan Articles & Templates

Indoor Sports Complex Business Plan Template

Written by Dave Lavinsky

Indoor Sports Complex Business Plan

You’ve come to the right place to create your Indoor Sports Complex business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Indoor Sports Complexes.

Below is a template to help you create each section of your Indoor Sports Complex business plan.

Executive Summary

Business overview.

Elite Sports Indoor Complex is a startup indoor sports complex located in Fairbanks, Alaska. The company is founded by Thom Goodson and Nate Gregory, business owners of a former outdoor basketball court complex located in Annapolis, Maryland. Thom Goodson and Nate Gregory formed their basketball business in 2002 and sold it at a profit in 2019. The outdoor basketball court complex was a strong business that conformed to the needs of the community; however, the weather was often inclement, which would shut the complex for days at a time.

With this background in mind, Thom and Nate studied the most advantageous places in the U.S. to start an indoor sports complex and realized that Fairbanks, Alaska, with freezing temperatures most of the year, would be the perfect location for their new venture. Elite Sports Indoor Complex was formed in 2022 and is in the final six months of preparation prior to launch.

Product Offering

The following are the services that Elite Sports Indoor Complex will provide:

• Climate-controlled environment for a wide range of sports
• Advanced sports-training programs
• Mom workout sessions: free childcare
• Recreational activities for children ages 4-12
• Free use of facilities for customers ages 60+
• Swimming pools and spas with heated water
• Family packages at yearly discounts
• Available for private parties and events

Customer Focus

Elite Sports Indoor Complex will target residents and families in Fairbanks, Alaska. They will also target private and public sports teams. They will target individuals looking for sports training. They will target women with children. They will target families and seniors. They will target swimmers and those who use spas for health and healing purposes. They will target party planners and event coordinators. They will target those who live within a 30-mile radius of Fairbanks, Alaska.

Management Team

Elite Sports Indoor Complex is a startup indoor sports complex located in Fairbanks, Alaska. The company is founded by Thom Goodson and Nate Gregory, business owners of a former outdoor basketball court complex located in Annapolis, Maryland. Thom Goodson and Nate Gregory formed their basketball business in 2002 and sold it at a profit in 2019. They have recruited Ellie Nielson to be the Administrative Director for the Elite Sports Indoor Complex.

Thom Goodson graduated from the University of Maryland with a degree in Business Finance and Law. He will co-own the Elite Sports Indoor Complex with Nate Gregory, a former business partner in an outdoor basketball court complex in Annapolis, Maryland. Thom will be the President of the Elite Sports Indoor Complex and will oversee client relations and new business development.

Nate Gregory is a co-owner of the Elite Sports Indoor Complex with Thom Goodson. He graduated from the University of Maryland with a degree in Business Management. His role will be the Vice President of the Elite Sports Indoor Complex and will oversee operations and human resources for the company.

Ellie Nielson, a graduate of University of Alaska, will take on the role of Administrative Director for the Elite Sports Indoor Complex, where she will schedule all classes, events, trainings, and private venue engagements. She will set the times/dates for all classes and oversee the physical condition of the complex.

Success Factors

Elite Sports Indoor Complex will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team of Elite Sports Indoor Complex
• Full and varied sports courts, including soccer arena and baseball/football fields
• Comprehensive array of services available for individual or family members.
• Reasonable pricing of packages and discounts for families
• Advanced technology-driven sports equipment and security systems

Financial Highlights

Elite Sports Indoor Complex is seeking $200,000 in debt financing to launch its Elite Sports Indoor Complex. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the brochures and membership drive. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for Elite Sports Indoor Complex.

Company Overview

Who is elite sports indoor complex.

Elite Sports Indoor Complex is a newly established, full-service indoor sports complex in Fairbanks, Alaska. Elite Sports Indoor Complex will be the most reliable, cost-effective, and efficient choice for residents in Fairbanks and the surrounding communities. Elite Sports Indoor Complex will provide a comprehensive menu of sports courts, games, and recreational services for any resident to utilize. Their full-service approach includes a comprehensive array of sports choices and recreational activities.

  Elite Sports Indoor Complex will be able to serve hundreds of residents in Fairbanks. The team of professionals are highly qualified and experienced in sports, games and sports training. Elite Sports Indoor Complex removes all the headaches and issues of attempting to play sports outdoors in the Fairbanks weather, while ensuring all the solutions are effectively captured within the Elite Sports Indoor Complex.

Elite Sports Indoor Complex History

Since incorporation, Elite Sports Indoor Complex has achieved the following milestones:

• Registered Elite Sports Indoor Complex, LLC to transact business in the state of Alaska.
• Has a contract in place at one of the offices near the courts and will set up its 10,000 square foot office space.
• Reached out to numerous contacts to include Elite Sports Indoor Complex in their memberships.
• Began recruiting a staff of twenty and additional office personnel to work at the Elite Sports Indoor Complex.

Elite Sports Indoor Complex Services

The following will be the services Elite Sports Indoor Complex will provide:

Industry Analysis

The indoor sports complex industry is expected to grow over the next five years to over $2.5 billion. The growth will be driven by an increased number of users who choose to play sports in inclement winter or summer weather. The growth will be driven by individuals who choose to play sports after normal work hours. The growth will be driven by individuals who are conscientious about healthy living and activities. The growth will also be driven by the amenities offered, such as spas and childcare services. Costs will likely be reduced as solar paneling contributes to much lower utility charges. Costs will likely be reduced via sustainability practices that result in lower garbage costs.

Customer Analysis

Demographic profile of target market.

Customer Segmentation

Elite Sports Indoor Complex will primarily target the following customer profiles:

• Residents of Fairbanks, Alaska
• Public and private sports teams
• Families seeking memberships
• Party planners and event coordinators

Competitive Analysis

Direct and indirect competitors.

Elite Sports Indoor Complex will face competition from other companies with similar business profiles. A description of each competitor company is below.

University of Alaska – Indoor Swimming Pools

The University of Alaska is located in Fairbanks, Alaska. The university decided to add an indoor swimming pool complex in 1988, due to the increased need for swim teams and swim practice during freezing weather conditions that limited availability to the outdoor pools. The university has since opened the pools to the public during the hours the teams are not using the pools.

The three indoor swimming pools include two heated spas in a climate-controlled environment. One swimming pool is an Olympic-sized pool with lane indicators, one is a pool designed for pool training and activities, and one is designated as a lap pool. The family memberships available are very reasonably-priced, with the only drawback of the pools being closed for public use during competition swimming and during practices for the various swim teams.

Fairbanks Parks & Recreation Indoor Courts

The Fairbanks Parks & Recreation panel determined in 2006 that indoor tennis, squash, and racquetball courts would be advantageous to the community overall. As a result, eight tennis courts, 4 squash courts and 6 racquetball courts were built for public use. The courts are available 24 hours a day for a nominal fee per play. The sports courts do not include locker or shower rooms, nor are there other facilities other than the check-in counter.

Residents and families are encouraged to use the indoor courts, although in 2022 repair and replacement of the tennis courts was initiated due to deterioration of the surface, and the replacements are not yet complete. The racquetball courts remain in use and, although the surface flooring is in good condition, the majority of tennis players have reverted to racquetball while waiting for the flooring to be replaced; therefore, there are only a limited number of reservations available on the crowded court schedules.

Recreation Island Ultimate Sports

The tropic-themed Recreation Island Ultimate Sports company is owned and operated by Lance Baker, a former National Football League player. His staff of ten employees oversees the football, baseball and other fields and courts. Included in the family area is a frisbee course, volleyball courts and other activities, along with sports training equipment and sports classes. The private membership fees at the Recreation Island Ultimate Sports are reasonable; however, the fields are outdoors, allowing for limited play during the winter months, if at all. The popular fields are highly utilized during the summer months and are open 24-hours per day with the sun exposure continuing through almost a full 24-hours. Recreation Island Ultimate Sports offers classes for children and team sports for the entire family. Childcare is included for ages through 5 years old.

Competitive Advantage

Elite Sports Indoor Complex will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Elite Sports Indoor Complex will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees who are able to provide a comprehensive array of classes, services and training courses.
• Unbeatable pricing for memberships; they will offer the most reasonable pricing in Fairbanks.

Promotions Strategy

The promotions strategy for Elite Sports Indoor Complex is as follows:

Word of Mouth/Referrals

Elite Sports Indoor Complex is an exciting, new concept for the city of Fairbanks and its residents. As such, word of mouth information has followed the complex since before construction commenced, with excited potential members waiting for the complex to be built to completion. Residents of Fairbanks are spreading the word of Elite Sports Indoor Complex beyond the city and into the outlying regions.

Print Advertising

One month prior to launch, Elite Sports Indoor Complex will send a brochure to every resident and business within the city of Fairbanks. The brochure will outline all the services, classes, amenities and sports available within the private club and will also detail the discounted pricing offered during the first two months. The regular pricing will resume after the initial two months of business.

Website/SEO Marketing

Elite Sports Indoor Complex will fully utilize their website. The website will be well organized, informative, and list all the fields, courses, classes and services that Elite Sports Indoor Complex provides. The website will also list their contact information and list their available membership packages and rates. The website presence will be enhanced with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “indoor sports” or “sports courts near me”, Elite Sports Indoor Complex will be listed at the top of the search results.

The pricing of Elite Sports Indoor Complex will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for Elite Sports Indoor Complex. Operation Functions:

• Thom Goodson will be the co-owner and President of the company. He will oversee all new business development and manage client relations.
• Nate Gregory will be the co-owner and Vice president of the company. His role will be to oversee operations and the human resources department of the sports complex. Jay and Nate have spent the past year recruiting the following staff:
• Ellie Nielson will take on the role of Administrative Director for the complex. She will schedule all classes, events, training, and private venue engagements. She will set the times/dates for all classes and oversee the physical condition of the complex.

Milestones:

Elite Sports Indoor Complex will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease office space
• 5/15/202X – Finalize personnel and staff employment contracts for the Elite Sports Indoor Complex
• 6/1/202X – Build list for prospective memberships at Elite Sports Indoor Complex
• 6/15/202X – Begin networking at community events
• 6/22/202X – Begin moving into Elite Sports Indoor Complex
• 7/1/202X – Elite Sports Indoor Complex opens its doors for business

Financial Plan

Key revenue & costs.

The revenue drivers for Elite Sports Indoor Complex are the fees they will charge to members for their use of the indoor sports complex and the services provided.

The cost drivers will be the overhead costs required in order to staff Elite Sports Indoor Complex. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

Elite Sports Indoor Complex is seeking $200,000 in debt financing to launch its indoor sports complex. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the brochures and membership drive. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Members Per Month: 650
• Average Revenue per Month: $195,000
• Office Lease per Year: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Indoor Sports Complex Business Plan FAQs

What is an indoor sports complex business plan.

An indoor sports complex business plan is a plan to start and/or grow your indoor sports complex business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Indoor Sports Complex business plan using our Indoor Sports Complex Business Plan Template here .

What are the Main Types of Indoor Sports Complex Businesses? 

There are a number of different kinds of indoor sports complex businesses , some examples include: Indoor sport courts, Indoor field arenas, Indoor pool and water play parks, and Indoor gymnastics complex.

How Do You Get Funding for Your Indoor Sports Complex Business Plan?

Indoor Sports Complex businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start an Indoor Sports Complex Business?

Starting an indoor sports complex business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop An Indoor Sports Complex Business Plan - The first step in starting a business is to create a detailed indoor sports complex business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your indoor sports complex business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your indoor sports complex business is in compliance with local laws.

3. Register Your Indoor Sports Complex Business - Once you have chosen a legal structure, the next step is to register your indoor sports complex business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your indoor sports complex business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Indoor Sports Complex Equipment & Supplies - In order to start your indoor sports complex business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your indoor sports complex business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

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Sporting Goods Retail Store Business Plan

Start your own sporting goods retail store business plan

Sportsuchtig

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

The purpose of this business plan is to secure a seven-hundred thousand dollar ($700,000 to $800,000) conventional business loan from a financial institution in order to purchase the assets of the business known as Sportsuchtig. It will be purchased by Johnson Sporting Goods, LLC, a limited liability company formed for this purpose by John and Lisa Johnson. The business will continue to be known and operated as Sportsuchtig.

Sportsuchtig sells quality sporting goods equipment for the entire family, primarily focused on and specializing in baseball and softball equipment, apparel and accessories from major manufacturers such as Easton, Louisville Slugger, Wilson, Worth, Mizuno, Miken, and Under Armour. The company was established as a retail store in 1986 and created an Internet sports store in 1996. The company currently operates with 10 employees out of a 7,400 square foot facility which houses the combined retail store, call center, office, and product warehouse. Over the last 3 years the company has averaged $2.5 million in sales and a gross margin of 25%, with 52% of the sales generated by the website and 48% coming from the retail store.

In the last 3 years, Sportsuchtig has generated verifiable pre-tax income averaging $194,000 and total owner’s benefit averaging over $323,000. This is a strong business that is positioned well for accelerated growth. We believe the business can reach revenue levels of over $5 million in 5 years by implementing this business plan. Sales are projected to be flat in year one and then grow at 20% in years 2-5. This growth forecast is based on the assumption that the company acts on these key opportunities:

• Redesign, upgrade and marketing of the Internet store.
• Relocating the existing retail store.
• Adding additional product lines for sports played in other seasons than baseball/softball.
• Creation of an outside sales team to gain a significant share of the team sales market.
• Optimization of inventory purchasing, management and tracking.

We will plan to relocate the business near the end of year 1 which should help position us for increased retail sales beginning in year 2. The website will be redesigned in the first 6 months and the Web marketing strategy will be timed to coincide with the implementation of the new site. Expansion into at least one new product participant segment will be planned for each year, beginning in year 1. An outside sales team manager will be hired in year 1, but ramp-up of the sales team is not planned until early in year 2.

The business will be managed by owner John Johnson who will act as President and CEO. Mr. Johnson’s high technology and sports business backgrounds, coupled with his entrepreneurial experience, makes him the ideal leader to drive this sporting goods retail/internet endeavor. 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. Mr. Johnson also founded and currently owns two other businesses, Johnson Enterprises, LLC and Johnson Investments, LLC. Johnson Enterprises, LLC sells, designs, and constructs custom game courts (basketball, tennis, etc.), synthetic putting greens, and sporting goods products. Mr. Johnson received a Bachelor of Science in Computer Science from Stone College in Boulder, Colorado and a Masters in Business Administration from the University of Illinois.

1.1 Objectives

• Maintain or exceed in year 1 the recent two-year levels of sales ($2.5 million), gross margin (25%), and net margin (12%).
• Realize an annual sales growth rate of 20% in years 2-5, reaching over $5 million in sales by the end of year 5.
• Improve gross margins from 25% to 35% by the end of year 5.
• Improve net margins by the end of year 5.
• Redesign and upgrade the Internet e-commerce store by the end of the first year.
• Increase website site traffic 50% and sales 20% in years 1-5 by investing in aggressive Web search optimization and marketing.
• Enhance the retail store location in the second half of year 1 by relocating the current store from its current location to a more prime location in the metropolitan area.
• Establish relationships with local nonprofit organizations, to help underprivileged children build confidence and self esteem through youth sports programs.
• Run the business as a family-run and -oriented business with emphasis on truth, integrity, quality relationships, fun, and giving back to the community.

1.2 Mission

To become the sports equipment supplier of choice, based on product expertise, price, quality, and level of service, by developing a long term relationship with our customers. 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.
• Relocate the existing retail store to a more densely populated, growing location.
• Negotiate optimal agreements with the major suppliers that allow us to improve margins, hold down costs, and maximize the control and turnover of our inventory.
• Implement a state-of-the-art, computerized inventory management system to improve inventory turnover and tracking.
• Expand the product line by offering equipment for additional sports that are typically in demand during current Sportsuchtig slow seasons.
• 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 and on how to provide family-oriented sales and customer support.
• Train an existing employee, or hire from outside, a store manager to cover for and be the backup for the Owner/President.
• Advertise and market in areas where our target customer base can learn about our retail and internet stores.
• Build a reliable operations infrastructure that is ready to serve customers, prepare accurate billing and accounting, follow up on orders and shipping, manage the Web site, and maintain a close watch on expenses and collection of accounts receivable.
• Be an active member of the community by participating in nonprofit activities and by sponsoring local sports teams, leagues, and tournaments.
• Ensure through daily management practices that the values of The Sportsuchtig mission are followed, so that a successful and growth-oriented business is developed and maintained.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Sportsuchtig sells quality sporting goods equipment for the entire family, primarily focused on and specializing in baseball and softball equipment, apparel and accessories (although we do sell a small amount of volleyball, basketball and football equipment). The company was established as a retail store in 1986 and created an Internet sports store in 1998. The company currently operates out of a 7,400 square foot facility which houses the combined retail store, call center, office, and product warehouse. Over the last 3 years, the company has averaged $2.5 million in sales and a gross margin of 25%, with 52% of the sales generated by the website and 48% coming from the retail store.

The retail store is open Monday through Saturday from 9:00 am to 7:00 pm and is closed on Sunday. Orders are retrieved four to six times daily except on Sunday and the 800 call center number is staffed during retail store hours.

2.1 Start-up Summary

The startup expenses include Legal Fees for services in regards to the purchase of the business such as the Letter of Intent, the Asset Purchase Agreement, due diligence activities, and the business organization. The Accounting fees are for services regarding the business evaluation and due diligence activities. Rent and insurance for the retail facility must be prepaid before the business takeover. Also listed are expenses related to the creation and production of this business plan.

The startup assets listed are the assets that are being purchased. The purchase price of $1 million for the business is based almost entirely on the value of the assets. The large majority of the company assets, almost $900,000 worth, will reside in inventory. The $25,000 of current assets include furniture, fixtures, display cases, and accounts receivable. The $25,000 of long term assets include 7 computers and a server, printers, and associated software.

The starting cash of $50,000 is working capital to cover 2 months of expenses ($45,000), to provide for initial marketing efforts and as a contingency fund to cover unforEseen expenses related to the takeover of the business.

The purpose of this business plan is to secure a $700,000 conventional or SBA loan for the purchase of the business. The remainder of the purchase and startup costs ($300,000) will be financed through owner investment.

2.2 Company Ownership

The assets of Sportsuchtig are being purchased by John and Lisa Johnson. The company will be organized initially as a Limited Liability Corporation named Johnson Sporting Goods, LLC, doing business as Sportsuchtig.

Sportsuchtig will sell the latest and most popular name-brand sporting goods, apparel, and accessories. Consumers will be educated as to the proper size, style, fit, and design needed for their particular use. Initially these sporting goods will be for the sports of baseball, softball, volleyball, basketball, and football, with the focus primarily on softball and baseball.

The products are purchased from the top manufacturers in the world, such as Easton, Louisville Slugger, Wilson, Worth, Mizuno, Miken, Under Armour, Jugs, Adams, ATEC, Playmaker, TrueSports, Bike. Inventory is tracked through our POS cash register and computerized tracking system. Each day we will be aware of the style, size, and quantity of every item sold in the retail and internet stores.

The general list of products initially to be offered includes the following:

Baseball/Softball Equipment

Baseball Bats, Baseball Gloves, Batting Helmets, Batting Tees, Bases, Catcher’s Equipment, Bat Hangouts, Batting Gloves, Easy Toss Machine, Instant Screens/Nets, Hit-N-Stik, Equipment Bags, Hats, Training Aides, Sunglasses, Baseballs, Softballs, Shoes/Cleats, Umpire Equipment, Ball Buckets, Eye Black, Scorebooks, Pitching Machines, Backstop/Batting Cages, Ball Feeders, Protective Screens, Field Maintenance Equipment, Ankle/Knee Braces, Athletic Supporters, Sliding Shorts, Coaches’ Shorts, Coaching/Training Aids & Videos, Wraps, Ice Packs, First Aid, Mouth/Lip Guards, and Protective Aids.

Baseball/ Softball Uniforms & Apparel

Uniforms for Men, Women and Youth. Uniform Jerseys, Uniform Pants, Uniform Hats, Socks, and Belts. Custom screen printing of uniform names and numbers.  Under Armour Gear – Heat, Cold, All Season, Turf, Loose, Performance, and Street. Manufacturer T-shirts and caps.

Volleyballs, Volleyball Bags, Portable Scoreboard, Knee Pads, ClipBoard, Volleyball Carts.

Basketballs, Basketball Systems/Hoops, Basketball Courts, Basketball Fencing, Lighting Systems.

Footballs, Shoulder Pads, Knee Pads, Thigh Pads, Helmets, Gloves, and WristCoach.

Synthetic putting greens.

Future Products

After the assumption of the business, we will look to increase our product line laterally by offering additional product categories. Initially, this will be done to increase revenue in months that are historically slower for Sportsuchtig.  We will also significantly grow the existing Volleyball, Basketball, and Football lines in year 1. 

We will evaluate introducing products for the sports of Soccer, Field Hockey, Lacrosse, Hockey, Golf, Swimming, Tennis, Wrestling, Running and Cheerleading. We will also evaluate the introduction of Major League and College sports team logo apparel such as NFL, NBA, MLB, NHL, NCAA and NHL.

In addition, in order to serve the older and more affluent sports participant, we will evaluate less vigorous and more relaxing sports lines such as camping, fishing, and golf.

Market Analysis Summary how to do a market analysis for your business plan.">

The sporting goods market as a whole is a multi-billion dollar industry, with retail sales of sporting goods reaching $45.8 billion in 2003. Sales are expected to grow 2% in 2004 to $46.7 billion. The personal consumption of sporting goods is forecast to grow at an annual compounded rate of 4.8% between 2004 and 2007. Retail sales at sporting goods stores are very sensitive to the health of the economy, because most sports are a leisure activity. Spending on sporting goods correlates strongly with consumer confidence and level of personal disposable income.

The sporting goods market has a myriad of segments that can be categorized by product, sport, geography, behavior, participation, organization and standard demographics. Demographics play a big part in sporting goods sales, since population growth and age groups distinctly impact sport participation.

Our main sales categories break down customer groups by Sports Participation – ie., for which sport(s) the person is buying equipment. These customers have needs based on the specific sport(s) in which they participate. For example, Baseball participants are looking specifically for baseball equipment, uniforms, training aids, etc. We will initially focus on players of Baseball, Softball, Volleyball, Basketball, and Football.

However, in terms of marketing, we will take different approaches to attracting the attention of potential customers based on their relation to the sport or sports player (customer type), and on their buying method/location (retail/online).

• Customer Type – These customers have needs based upon the type of role they play in regards to the sports participants.  For example, many times those making sporting goods purchases are not those actually participating in the sport, but instead are parents, athletic directors, and coaches.  These segments include: Individual Participants, Parents, League Representatives, Independent Team Coaches, School Athletic Coaches and Directors, Sports Performance Businesses. 
• Retail/Online  – For retail stores, geographic and demographic divisions are critical, especially in understanding the different needs of our local and online customers. Appeals to soccer moms work one way in the local paper, where the convenience factor is a nearby location with great customer service, and a different way online, where convenience may come in the form of free shipping for larger orders, or free telephone assistance in choosing a size.

4.1 Market Segmentation

Sportsuchtig’ market is both nationwide (even some international) via the internet store, and local, via the retail store, in the local metropolitan region. Market segmentation for Sportsuchtig has several layers and can be analyzed and targeted from many different angles.

The targeted customer market will be segmented in multiple layers as follows:

Sports Participation – These customers have needs based on the specific sport(s) in which they participate. For example Baseball participants are looking specifically for baseball equipment, uniforms, training aids, etc. The National Sporting Goods Association (NSGA) reports in a 2003 report on sports participation in the U.S. for those 7 years of age and older, that there were over 256 million sports participants in 2003 (some participated in multiple sports). The major sports participation segments initially for Sportsuchtig:

Baseball – According to the NSGA 2003 report, for those 7 years of age and older, over 14.6 million people participated in Baseball. Of these 14.6 million, 4.5 million were aged 7-11 and 4.1 million were aged 12-17. Softball – According to the NSGA 2003 report, for those 7 years of age and older, over 11.8 million people participated in Softball. Of these 11.8 million, 1.9 million were aged 7-11 and 2.9 million were aged 12-17. Volleyball – According to the NSGA 2003 report, for those 7 years of age and older, over 10.4 million people participated in Volleyball. Of these 10.4 million, 1.3 million were aged 7-11 and 3.4 million were aged 12-17. Basketball – According to the NSGA 2003 report, for those 7 years of age and older, over 27.9 million people participated in Basketball. Of these 27.9 million, 6.3 million were aged 7-11 and 7.9 million were aged 12-17. Football – According to the NSGA 2003 report, for those 7 years of age and older, over 8.7 million people participated in tackle Football and 9.3 million in touch Football. Other Sports (Future for Sportsuchtig) – According to the NSGA 2003 report, for those 7 years of age and older, over 173.4 million people reported participating in other sports than those that Sportsuchtig currently targets. This represents a huge growth opportunity for Sportsuchtig as it moves to target these sports segments.

These millions of participants are all potential customers for the internet store. The local area has a large number of youth recreation, adult recreation, and school leagues for these sports.

Customer Type – These customers have needs based upon the type of role they play in regards to the sports participants. For example, many times those making sporting goods purchases are not those actually participating in the sport, but instead are parents, athletic directors, and coaches.

Individual Participants – These are the actual sports participants. Typically, these would be adult participants or older youths who have the technical knowledge and disposable income to purchase sporting goods equipment and apparel on their own. Parents – Parents buy on their own, or are present during the purchase of over 90% of sporting goods purchases for youths ages 5-18. This segment can be heavily influenced by their children in regards to the “hot” or best products. They are also the segment in most need of technical assistance from sporting goods store staff. League Representatives – Members of adult and youth athletic associations are responsible for league equipment and uniform purchases to outfit league teams. Long-term relationships and sponsorship participation are important to this segment. They usually have technical proficiency and want to deal with someone that is on or above their technical level of expertise. This segment is usually well informed about recent product offerings and can be a solid channel for introducing new products. They are also a marketing channel to all the participants and parents involved with their league. Independent Team Coaches – Typically those organizing and coaching adult sports teams, or individual advanced youth teams (such as AAU teams), they are responsible for the design and purchase of their individual team uniforms. School Athletic Coaches and Directors – Public and private middle and high school athletic directors must outfit their teams with high quality sporting goods equipment and uniforms. Establishing ;relationships with this segment is difficult, but can be lucrative if all of the school’s sporting goods needs can be met. Sports Performance Businesses – These are organizations that sell services to enhance the participant’s performance in his or her sport. Many times, they operate recreational/training facilities and offer individual or team training programs. Selling equipment to these facilities provides a channel, not only to the facilities’ customers, but also to the many area school and league coaches, who are typically part-time employees of these companies.

Retail/Online  – It is critical for us, as a retail store, to understand the demographics of our different sales bases.

National – The demographic for the internet store is truly nationwide. The potential customer segment is all of the 256 million sports participants that have access to the internet. Products have been sold and shipped from this site to most of the 50 states in the U.S. In fact, products have also been sold internationally in Japan, Singapore, etc. Metropolitan Area – The metropolitan area has a population of just over 1 million. This area is made up of 13 counties and cities and grew 15% from 1990 to 2000.  Jansen county is the county where most of Sportsuchtig current retail customers live. Jansen county has a population of 278 million and a recent growth rate of 2%.  Jansen county alone has 52,000 students, 36 elementary schools, 12 middle schools, and 10 high schools. The other largest counties – Jefferson and Lucas – are growing at 1.5% and 2.3% respectively. We believe that relocating the retail store north will provide significantly better accessibility for the sports participants in these counties, especially with the opening of the new highway around the western edge of the metropolitan area.

4.2 Target Market Segment Strategy

The focus will initially be on the Baseball and Softball participant segment, because this is Sportsuchtig’ current core competency and because the number of participants, both nationally and locally, is quite large. We will look to leverage current Sportsuchtig relationships in this segment and move aggressively to increase sales and margins through a targeted marketing campaign.

We will then strategically target other participation segments to try and increase sales during the non-peak baseball/softball sales months. This is a huge opportunity for growth for the company, as evidenced by the large number of participants present in the other participant segments. Changing tastes in sports and strong sales of sporting goods in recent years partly reflect the changing composition of the U.S. population. In particular, the number of older (and more affluent) people has increased rapidly in the past decade. As the Baby Boomers age, they participate less in vigorous sports like baseball, basketball, and tennis, and more in relaxed sports like camping, fishing, and golf. We believe quickly moving into at least one sport that serves this aging market to be critical to meeting sales goals.

Due to the fact that the company has both an internet store and a retail store it is important to understand the market segmentation and demographics on both a national and local level. The internet store has made substantial sales (almost 1.3 million in 2003) with a weak user presentation experience and basically no Web marketing strategy. The analysis of the number of sports participants nationwide, not to mention internationally, illuminates the fact that attacking this nationwide segment through a focused Web strategy could bring significant returns.

4.3 Industry Analysis

In the U.S., about 20,000 companies operate retail sporting goods stores, with combined annual revenue of $25 billion. Most operate a single retail location. Large chain operators include Sports Authority ($1.4 billion revenue), Gart Sports ($936 million), Dick’s Sporting Goods ($2 billion – including the recent acquisition of Galyan’s), and Hibbett Sporting Goods ($241 million). The industry is highly fragmented. There are 150 companies with more than 5 stores, but the 20 largest chains hold only about 35 percent of the national market.

Sporting goods stores vary according to format and merchandise. Large format stores (Dick’s, Sports Authority), also known as “Big Box” stores, are from 20,000 to 100,000 square feet, stock a large number of items, and are typically found as anchor stores in strip malls or in stand-alone locations. Traditional sporting goods’ retail stores (Happy Sports, Don’s Sporting Goods in the metro area) are from 5,000 to 20,000 square feet, carry a more limited number of items, and are typically found in strip or enclosed malls. Sportsuchtig falls into this traditional format with 7,400 square feet, 2.5 million in sales, and 10-12 employees. Large format stores typically have more than $5 million in annual revenue and more than 50 employees. raditional retail stores typically have $1-$5 million in sales and 10-50 employees. In the U.S., there are about 8,000 large-format and traditional sporting goods stores, with 50% of industry revenue.

Sporting goods are also sold by mass merchandisers like Wal-Mart, Kmart, and Target, and by catalog and Internet retailers like Cabela’s and L.L. Bean. Although large chains sell a broad range of merchandise at lower prices, small local stores can successfully compete by offering better service or specializing in a particular sport(s). Because the equipment of many sports is very technical, knowledgeable salespeople are a strong competitive factor. Employees must be trained to understand and explain differences. Companies typically try to recruit employees who are avid sports’ participants.

Marketing is typically through a combination of advertising and sports events. Advertising is most often through newspaper ads, inserts, direct mailings, and sometimes radio. Word-of-mouth advertising is especially important to traditional sporting goods stores that provide superior service and expertise. Many companies sponsor local sports events or competitions and host appearances by sports celebrities. Some stores provide technical services and “participation areas” like basketball hoops, putting greens, and climbing walls. In addition to selling individual items, many stores (Happy, Don’s) specialize in selling team uniforms and equipment to local schools and clubs.

Inventory management is a major concern for all sporting goods retailers because of the large numbers of items they sell and the short selling season for many sports. Insufficient inventory produces missed sales, but excess inventory can’t easily be sold once a sports season is over. Many companies use highly sophisticated computerized inventory management systems.

4.3.1 Competition and Buying Patterns

The competition for Sportsuchtig’ retail store in the metropolitan area includes one large format sporting goods chain with 4 locations, 2 well known traditional format sporting goods stores with 1 location each, and around 18 specialty, or niche, sporting goods stores.

The large format store is Dick’s Sporting Goods, which is based in Pittsburgh, Pennsylvania. With its recent purchase of Galyan’s Trading Company, Dick’s now has annual sales of over $2 billion and operates 221 stores in 32 states. Dick’s has 4 big box stores in the metropolitan area. Dick’s offers a very wide variety of sports equipment and products, but the selection within each sport is usually limited and narrow. Their stores are big and impressive and found in upscale areas. The stores appear to be under-staffed, as it is usually hard to find ready assistance. Once found, the employees are not very knowledgeable in regards to product offerings and/or location of the products in the store. Most of the time the employees are teenagers. Products are generally priced higher than the competition, although they do have frequent sales and discounts. They utilize a “Score Card” discount club program that allows frequent customers to benefit from specials and discounts once they reach a certain level of points based on past purchases. They actually give the customer a credit-card-sized card to present when making purchases. They utilize the information gathered during registration for this program to send direct mail and email offers to the members. Customers generally purchase from Dick’s when they don’t need technical assistance, a generic product with small selection is sufficient, and price is not a driver. Dick’s is the most dominant and visible player in the market, because of their advertising and high profile stores. Dick’s also has a Web store from which they sell products and provide store location services.

The two traditional sporting goods stores in the metropolitan area are Don’s Sporting Goods and Happy Sports. Both of these stores are very well known and have been in the local market for over 30 years. These 2 stores are in the same class and format as Sportsuchtig.

Don’s Sporting Goods had been a family owned business sice 1952, until it was sold in June of 2004 to a publicly traded company. Don’s had annual sales in 2003 of around $18 million and operates eight warehouses and showrooms in this region. It operates one showroom in the local area at its headquarters in the near west end. Don’s showrooms are usually around 3,000-3,500 square feet and contain many sports but very sparse selection. The store layout is changed frequently, following the seasonality of the sports. Typically their store staff members have technical knowledge and can help customers determine the right product for them. Don’s strength is in its 35-40 strong nationwide sales force that specializes in the distribution of team uniforms and school equipment. Don’s also has a nice Web site and e-commerce store from which they sell individual and team products.

Happy Sports is family-owned and opened in 1970. They operate one retail store in a west-end shopping center. The store is around 4,500 square feet and offers many different sports products. The store has been upgraded in recent years and the variety and selection are broader now than in previous years. They claim to have a knowledgeable staff but personal visits to this store have proven this not to be true. Happy also has a fairly strong Team Division which sells to schools and recreation leagues. Happy also utilizes a credit card size “Discount Card” that allows frequent customers to benefit from specials and discounts once they reach a certain level of points based on past purchases. They recently did an advertising campaign through local radio stations. They have a Web site that lists some of their products but it is not e-commerce, as you can not purchase products directly from the site.

Play It Again Sports is part of a 450-store national franchise chain that has been operating since 1988. They have 4 franchises in the local area. Play It Again’s niche is that they buy, sell, and trade used and new sports equipment. They claim that because their customers can sell or trade-in their used gear for cash or store credit that they are able to get deeper discounts and better prices on really great used and new equipment. Generally these stores appear to be poorly staffed, both from a numbers and a technical knowledge standpoint. We found their prices not much more competitive than those at Dick’s.

The 18 or so specialty stores found around the local metropolitan area specialize in golf, tennis, soccer, biking, swimming, running, etc. Most operate very small, 1,000-1,500 square foot, stores. As Sportsuchtig moves into other sports, some of these will become direct competitors. For example, All About Soccer operates 2 stores – one in the west end, and another on the south side. They focus purely on Soccer products – balls, shin guards, and cleats.

The competition for our Internet store is significant. There are many Internet sports stores vying for the online customer’s dollars – over 50. The most significant of these include big box stores like Dick’s and The Sports Authority, but also smaller more traditional ;companies such as Fog Dog, Blackwater, Annaconda, Direct Sports, Bassco, Big 5 Sporting Goods, Planet Sports, Baseball Corner, and Baseball Express.  Most of these internet stores offer a full range of sports products and their Web sites are professionally done and usually feature tools designed to draw the customer back to the site repeatedly.

We believe the internet store has done extremely well to date against this competition and that with an improved Web site design and a Web marketing strategy we can significantly increase our sales through this channel. On the retail side, we believe our large selection and inventory, our staff’s technical knowledge, and our unique customer service will help us compete against our competitors in the local market.

Strategy and Implementation Summary

Sportsuchtig will leverage its expertise, product offerings, and marketing strategy to increase its customer base while driving sales and profit. The following sections review the various strategies that will support this effort.

5.1 Sales Strategy

Sportsuchtig will approach retail sales from a salesperson-customer relationship basis. All sales associates will be trained and encouraged to assist customers in a personal manner, utilizing first names and asking the questions needed to provide the customers with the services they desire. The current Point-Of-Sale system is already set up to collect the customer’s name, address, and purchases. Gathering key customer information and seeking performance feedback on the products and services offered will assist us in the following ways:

• Targeting our marketing efforts more effectively.
• Offering products and merchandising formats that will increase sales.
• Developing services that enhance the shopping experience.
• Training and developing sales associates in order to effectively service the customer.
• Increase awareness of Sportsuchtig within the retail consumer marketplace.
• Develop future sales opportunities that allow for continued growth of the business. 

We want our customers to come back and specifically ask for a salesperson by name, because they were so satisfied with the service previously provided.

Currently the format of the retail store separates the customer from the merchandise. The customer must be assisted by a salesperson or they cannot touch or browse the merchandise. We believe this leads to walk-outs when all the available salespeople are tied up assisting other customers. Usually, these customers will leave and never return. We plan to reformat the store so that the products will be showcased via lifestyle merchandising that inspires and promotes multiple purchases. We look to create a strong visual impact, creating an invitation to touch and purchase.

In order to provide the customer with the most up-to-date products on the market and a wide selection, we will attend sporting goods trade shows which showcase all of the products manufactured within the sporting goods industry. Attending shows and seminars will not only allow us to ensure our product mix is current and up-to-date, but will also provide us with fresh, new store merchandising and display ideas. To stay abreast of market and product trends, we will utilize trade publications, trade associations, and their associated Web sites.

It is the goal of Sportsuchtig to offer selection and quality at a value to the consumer. Our pricing structure will support a 25-35% gross margin and position us competitively within the marketplace. Seasonal promotional offers, discounts for end of season, and sale “events” will encourage additional sales and multiple unit purchases.

Employees of Sportsuchtig are an integral part of the shopping experience for the customer. All employees will be developed for growth and advancement, and compensated fairly with effective training that will enable them to confidently service and sell the customer.

Currently there is no sales force to actively pursue sales to the League, School, and Team market segments.  Key to the new sales strategy is direct sales calls on these market segments. Currently these sales calls are made by the current owner, by virtue of his background and knowledge of the products and competitors. Experience has proven that the more time he devotes to sales, the more sales result. Initially, this sales task will be transferred to the new managing owner, John Johnson. However, it is strategically necessary to hire and develop a sales team to attack these markets. The competition well-established with many of our potential customers, so a full-time team sales manager will be found and added as soon as possible. His/her task will be to grow the sales in these segments and to build the sales team. Without this person, too much of John Johnson’s time will be deflected away from his major role of strategically operating and growing the business.

There are currently 2 part-time commissioned external sales people. One of them is a well-known Softball pitching coach who has a small training facility/store in the area. She sells Sportsuchtig’ products to her students and others that come to her store. Her commission is 50% of the margin gained from these sales. There is another saleswoman who pulls a trailer of Sportsuchtig products with her when she goes to softball tournaments around the region. Her commission is also 50% of the gross margin on the sales. These relationships and channels for sales will be investigated and formalized into a sales program if deemed beneficial.

Web sales are handled electronically via the internet store Shopping Cart or via phone sales representatives taking calls on the 800 telephone number. There are currently 4 computer/phone stations for these sales reps. These sales representatives need to be thoroughly trained in product offerings and have good phone communication skills. They need to be trained to follow a general sales script when dealing with customers. Having good images of products and detailed product benefits and features on the Web site is critical to getting the customers to commit to an online purchase without talking with a sales representative. A functioning site search engine that helps customers locate product also needs to be added to the internet site.

5.1.1 Sales Forecast

The following table and chart give a run down on forecasted sales. We expect sales in year 1 to be flat as the new owner comes into operating the business. Businesses generally see a sales decline in the first year of new ownership. We believe, however, that this business is strong and that we can at least maintain the current level of sales ($2.5 million) in year 1. 

We have projected 20% sales growth in years 2-5, reaching over $5 million in sales by the end of year 5. This growth forecast is based on the assumption that the company acts on the keys to success outlined earlier in this plan: upgrade the website, relocate the existing retail store, negotiate optimal agreements with the major suppliers, expand the product line by offering equipment for additional sports, create an outside sales team that calls on schools, leagues, and associations, train employees, train or hire a store manager, advertisement and promotion, build a reliable operations infrastructure, be an active member of the community, and ensure through daily management practices that the values of The Sportsuchtig mission are followed.

We will look to relocate the store near the end of year 1, which should help position us for increased retail sales beginning in year 2. The website and internet store will be redesigned after the first 6 months and the Web marketing strategy will be timed to coincide with the implementation of the new site. Expansion into at least one new product participant segment will be planned for each year, beginning in year 1. An outside sales team manager will be hired in year 1 but ramp up of the sales team is not planned until early in year 2.

The other assumption built into the forecast is that gross margins will be flat in year 1 but able to be continually improved through years 2-5. This assumption is based on improved purchase agreements with major suppliers and better inventory management, so that fewer products have to be discounted at product season end.

The sales forecast could turn downward if the outside sales team has difficulty gaining traction. The competition is comfortably entrenched in the segments to be targeted, so success is not guaranteed.

5.2 Milestones

The accompanying milestone table highlights our plan with specific dates. This schedule reflects our strong committment to organization and detail.  Milestone responsibility is assigned to the functional departments in the company – Sales, Marketing, HR, Operations, and President’s Office.

The Milestone table reflects critical dates for the acquisition and takeover schedule, systems reviews and upgrades, the website re-design and deployment, the retail store relocation, and new product identification and rollout.  We also define our target dates for policy definition and implementation as well as documented employee training and evaluation processes.

5.3 Marketing Strategy

The marketing strategy of Sportsuchtig centers on defining our market niche in terms that benefit our customer. Retail and internet store marketing will be integrated and synchronized. We plan to establish a consistent and coherent marketing plan and calendar that take into account and utilize all effective forms of publicity, advertising, and other marketing tools. Specific strategies that will potentially be used are as follows:

• Newspaper/Print Ads – It will be necessary to keep the Sportsuchtig name in front of the customer while getting established will be necessary. We plan on running limited-space ads in the local newspapers to keep our name and phone number in front of the consumer. We may offer clip out coupons as an incentive to visit the store and also as a way to track revenue from the ads. Use of magazine print ads is deemed to have little potential return.
• Press Releases – The local paper has regular sections that highlight business purchases and new business openings. We will make sure they give coverage to the grand opening when the store relocates and any time we sponsor or are involved with local nonprofit organizations.
• Team/Tournament Sponsorship – We will selectively sponsor local teams and leagues, preferably by providing equipment or uniforms versus cash. We will encourage links to/from our Web site with these entities. We will look to sponsor a “Sportsuchtig” softball and/or baseball tournament once a year.
• Event Sponsorship – We will investigate opportunities for being sponsors of large area events, especially those managed by the local sports facilitation group, such as a marathon, and biking or ironman events.
• Decals – We will have decals/stickers manufactured with the Sportsuchtig logo. We will include these with all of the orders that we ship. Children in particular enjoy displaying decals/stickers on just about everything.
• Apparel – We will outfit our retail staff with Sportsuchtig branded shirts and have shirts, hats, and other apparel available for event and sales giveaways.
• Grand Opening – A Grand Opening is the most successful of any in-store promotions. With manufacturer support, a large number of door prizes can be given away while instantly building a mailing list. Loss leader pricing on a few high volume consumable products will attract in-store traffic. Vendors will subsidize loss leader pricing with a rebate. Appearances by local celebrities would also expose potential customers to Sportsuchtig. A planned series of events, such as demonstrations, free clinics, celebrity appearances, registration for free prize giveaways, and competitions can all be utilized to extend the grand opening and continually draw customers back so they become familiar and comfortable with the store.
• Trade Shows – We will attend industry trade shows in order to keep abreast of new products and trends.  This will also allow us to make and maintain industry contacts.
• Word of Mouth – By giving first-time customers great service and a fair price, the word is sure to spread. Also, the many sports contacts that we already have in the area will prove to be most beneficial in spreading the word.
• Yellow Pages – We will advertise in the local yellow pages.
• Flyers – Flyers will be distributed to all local leagues at season start. These flyers will offer discounts for purchasing from the retail and internet stores. These discounts could be structured so that a certain percentage of the discount goes directly to the customer and other percentages go to the customer’s league or a nonprofit entity being sponsored by Sportsuchtig.
• MailBox Flyers – We will also evaluate placing flyers in local area neighborhood mailboxes.
• Customer Discount Card – The implementation of a customer discount program and card will be investigated to entice customers to shop repeatedly with Sportsuchtig. Information gathered through this program can be utilized to feed direct mail and email campaigns for special program discounts or information.
• Business Networking – Business networking organizations, such as Business Network International, will be visited and potentially joined as a way to increase awareness and create a virtual sales force.
• Direct Mail – A direct mail program utilizing low-cost postcards or other mechanism will be evaluated.
• Radio – A radio campaign will be investigated. Happy Sports recently ran a campaign with some success.
• Catalog – The creation and distribution of a product catalog will be evaluated.
• Web Marketing – A variety of Web marketing channels and vehicles will be researched and tested.
• Press releases, articles, and/or advertising on local internet sites.
• Search engine marketing
• URL Links to/from organizations, teams, leagues, co-marketers
• Email marketing
• Trivia questions with weekly winners
• Sports Tickers
• Retail store event publicity and schedule
• Participation Areas and Contests – When the store is relocated we will, if possible and feasible, leverage the TrueSports product line from the owner’s other business and build a basketball court and putting green into the layout and flooring of the new store. This will allow us to have areas where promotional competitions, demonstrations, clinics, and customer product tryout can be conducted. This will draw customers to the store and also allow a showcase for the TrueCourt and TrueTurf product lines.
• Non-Profit Relationship(s) – Sportsuchtig will build a relationship with, and be an on-going sponsor for, at least one nonprofit organization. Events will be held or sponsored in order to raise money for the nonprofit, or a percentage of profits for certain Sportsuchtig promotions will be credited to the nonprofit for its use in exchanging that credit for Sportsuchtig products. In addition to giving back to the community, we anticipate significant free publicity because of this community support program. Because we are giving help to these organizations, they will get the word out to their benefactors/customers/employees/partners about Sportsuchtig. Word of mouth has always proven to be the greatest advertising program a company can instill. In addition, the media will be more than willing to promote the charitable aspects of Sportsuchtig and provide the opportunity for more exposure every time we provide assistance to another organization.

All marketing decisions with regard to specific media choices, frequency, size, and expenditures will be conducted on an on-going basis with careful considerations of returns generated. All marketing vehicles and channels will be tracked for results.

5.4 Competitive Edge

Sportsuchtig looks to establish itself competitively as a unique sporting goods provider in the local metropolitan area and internet sports market through its product offerings, the scope and level of services it provides, and the expertise of its employees.

Products: Sourced through established and internationally-known manufacturers, the products offered provide a high level of quality and value to the consumer. The depth and range of products will be extensive, separating us from others in the marketplace.

Services: Connecting with the customer is a key focus for Sportsuchtig. It is our desire that customers look to us as their valued resource to obtain the equipment, apparel and accessories that meet their needs. Our internet store will provide prompt courteous service, and deliver products at reasonable shipping rates within expected time frames.

Employees: Employees of Sportsuchtig will enjoy a friendly, fair and creative work environment, which respects diversity, new ideas and hard work. Development through experience and training will be a primary focus. It is our desire that employees are long-term, ensuring an expertise that will support the customer experience. Our employees will be a competitive advantage because their technical product knowledge will be superior to that of the competition. We want customers to form a relationship with a salesperson and ask for them by name when they return for a subsequent purchase.

Web Plan Summary

Sportsuchtig has an existing Website that has been generating $1.3 million in sales the last 2 years. However, we believe that a user interface redesign would generate significantly more revenue. According to market research from the Gartner Group, more than 50% of Web sales are lost because visitors can’t find the content they’re looking for. Another study by usability consultants Creative Good estimated that improving the customer experience increases the number of buyers by 40% and increases overall order size by 10%. We plan to redesign and implement a new website in year 1.

The new site will be designed and coded with internet marketing optimization at the forefront of requirements. The basis for our Website marketing strategy is to utilize search engine optimization, keyword density, direct navigation, targeted link popularity and systematic submissions. It is critical to sales growth that the website gains and maintains a high search engine placement. A full website marketing plan will be developed and implemented.

The website is a primary sales channel for us and is critical to the sales goals of the company. We will implement the new site to showcase the product offerings and provide technical information and assistance to help the customer in their product selection. To further show off its expertise, the website will provide a resources area, offering articles, research, product information and website links of interest to its customers.

The website will mirror the image and branding elements showcased in the retail store and at the same time, keep up with the latest trends in user interface design. The key to the website strategy will be combining a well designed front-end, an excellent and fast shopping cart experience, and a back-end capable of capturing “hits” and customer data for use in future marketing endeavors.

6.1 Website Marketing Strategy

The basis for our website marketing strategy is to utilize search engine optimization, keyword density, direct navigation, targeted link popularity and systematic submissions. Our Website marketing strategy will adhere to each search engine’s no-Spam policies, while generating highly-qualified web traffic. We believe a successful marketing system is much more than simply optimizing our website to be search-engine friendly. The system should also provide support for other strategies, such as link popularity, site design and content, the “stickiness” of our site, consistent search engine submissions, and ethical marketing practices.

It is extremely important to gain and maintain a high search engine placement. A December 2002 study by DoubleClick revealed that people prefer to use search engines almost 2 to 1 over any other source to find products and services on the Internet. 85% of all searches on the internet start on search engines.

In addition, we will implement the following mechanisms to make our website URL and domain name visible and effective:

• We will place our Web address on every form of literature that goes out of our business, such as letterhead, business cards, envelopes, invoices, payments, etc.
• We will place our Web address in all print advertising, such as newspaper ads, magazine ads, professional trade magazines, etc.
• Our internet Web address will be part of our on-hold or answering systems for both the internet 800 numbers and the retail store phone.
• Electronic advertisements such as radio ads will feature our Web address.
• We will develop our new website from inception, and modify the existing one as practical, with Web marketing as a key objective. There are huge advantages to developing the site with marketing in mind. Position of keyword phrases in the text, the alt tag description, the titles of the pages, the page URL, and Meta Tags in the heading area all have a role to play.
• We will avoid using frames on our website because many browsers do not support frames and many search engines do not rank sites with frames very high.
• Although we need pictures to display our many products, we will try to avoid putting too many graphics on a page, so we don’t reduce the page load time to a crawl. If a site does not start to download within 8 seconds a prospective customer will go to another site, and customers with dial-up links find sites with too many images make it painfully slow to load pages.

6.2 Development Requirements

A full development plan will be generated as documented in the milestones. Costs that Sportsuchtig will expect to incur with development of its new website include:

Development Costs

• User interface design – $3,000.
• Site development and testing – $6,000.
• Site Implementation – $1,000.

This development will be outsourced.

Ongoing Costs

• Website name registration – $70 per year.
• Site Hosting – $30 or less per month.
• Site design changes, updates and maintenance are considered part of Marketing.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Owner John Johnson will act as President and CEO and will be responsible for all aspects of managing and operating the company. Mr. Johnson 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 of a high-tech start-up. As the Vice President of Development for the start-up, he built the research and development team from the ground up and developed it into an 80 person team which produced leading-edge software technology that enticed Motorola Systems to purchase the company. In late 2002, Mr. Johnson made the decision to apply his entrepreneurial experience and drive to a business of his own and founded Johnson Enterprises, LLC. Johnson Enterprises is a leader in the design and construction of custom indoor and outdoor sports recreation facilities, and specializes in game courts (basketball, tennis, etc.), synthetic putting greens, and sporting goods products. Mr. Johnson also started Johnson Investments, LLC in 2004, a company that specializes in residential and commercial real estate investment.

Mr. Johnson received a Bachelor of Science in Computer Science degree from Stone College in Boulder, Colorado and a Masters in Business Administration degree from the University of Illinois in Champaign, Illinois. He is married with two sons, 10 and 14.

Mr. Johnson’s high technology and sports business backgrounds, coupled with his entrepreneurial experience, makes him the ideal leader to drive this sporting goods retail/internet endeavor. 

Overhead for management will be kept to a minimum and all managers will be “hands-on” workers. There is no intention of having a top-heavy organization that drains profits and complicates decisions. At the zenith of this five-year plan, there will be managers for Warehouse/Shipping and Receiving, Team Sales, and two Retail Store managers. John Johnson will be responsible for overall Retail and Internet Sales management, although the Store Managers will also be responsible for sales performance and will have sales-based incentives. Accounting functions could potentially be outsourced. The website management and computer systems management and maintenance will be initially be managed by Mr. Johnson, but will be outsourced in the future. Mr. Johnson will be directly responsible for purchasing, inventory management and control, and marketing (although some marketing will be outsourced).

Currently the company has 10 employees: two warehouse/shipping and receiving clerks, one accounting person that also does internet phone sales, two internet phone salespeople, 4 part-time retail salespeople, and a clerk that does retail sales and is also responsible for answering the retail store phone. The number of employees will grow progressively over time to 25 by the end of year 5.

7.1 Personnel Plan

The Sportsuchtig retail store and phone sales hours are currently Monday through Saturday, 9:00 a.m. to 7:00 p.m. and closed on Sunday. These hours will be evaluated, with the hours most likely being changed to 10:00 a.m. to 7:00 p.m. Monday through Saturday and open on Sunday from 12 p.m. to 5:00 p.m. The Personnel Plan, as detailed in the table following, has been developed to support these store hours and expected volumes, as per the Sales Forecast section.

Assumptions regarding personnel have been made for year 1 through year 5 as follows:

• Year 1 Ending October 2005 – The number of employees inherited from the previous owners are sufficient to operate the business in order to reach the Year 1 sales goals – which is equal to the previous year. John Johnson will be acting President and CEO and will take $60,000 salary in the first year. The support of a trusted and experienced employee will be needed to enable John to be away from the store when necessary and to manage coordination of the planned store relocation, the website redesign/implementation, and to sell products. In January of 2005, a Store Manager will be hired or promoted to fill this need.
• Year 2 Ending October, 2006 – Based on sales volume, it will be necessary to add another Retail Sales person. Salary for John Johnson will increase to $75,000 beginning in November 2006. Current full-time and part-time employees will be provided salary reviews and given appropriate salary increases – 5% has been factored in. In November 2005, a Team Sales Manager will be hired to take over Team Sales from Mr. Johnson and to start aggressively targeting the team segments.
• Year 3 Ending October, 2007 – Salary for John Johnson will increase to $100,000 beginning in November 2007. Current full-time and part-time employees will be provided salary reviews and given appropriate salary increases – 5% has been factored in. Increased sales volume will drive the hiring of 6 new employees. Another Retail Salesperson and an assistant accounting/retail phone clerk will be hired. Increased sales from the website will drive the hiring of an additional Warehouse/Shipping & Receiving clerk and also an additional Internet Phone Salesperson. An additional Store Manager will be hired to relieve Mr. Johnson from day to day store management tasks. We will also hire an additional Salesperson for the Team Sales team.
• Year 4 Ending October, 2008 – Salary for John Johnson will increase to $125,000 beginning in November 2008. Current full-time and part-time employees will be provided salary reviews and given appropriate salary increases – 5% has been factored in. Increased sales volume will drive the hiring of 2 new employees, another Retail Salesperson and an Internet Phone Salesperson.
• Year 5 Ending October, 2009 – Salary for John Johnson will increase to $150,000 beginning in November 2009. Current full-time and part-time employees will be provided salary reviews and given appropriate salary increases – 5% has been factored in. Increased sales volume will drive the hiring of 4 new employees. Increased sales from the website will drive the hiring of an additional Warehouse/Shipping & Receiving clerk and also an additional Internet Phone Salesperson. An additional Retail Salesperson and an additional Salesperson for the Team Sales team will be added.

Financial Plan investor-ready personnel plan .">

The Sportsuchtig financial picture is quite promising. Since Sportsuchtig is a currently operating business, there will be sales and cash coming into the business on day 1 when the operation is taken over by the Johnson’s. An initial working capital investment of $50,000 dollars will be necessary to assure that expenses are covered in the first 2 months, but after that it is assumed that cash from operations will be sufficient to fund and reach the milestones in this plan.

The owners have a personal equity line sufficient to finance any monthly cash-flow shortage; however, a business line of credit will be established as soon as possible. We anticipate very few accounts receivables initially, with 95% of sales cash and carry (cash, checks, credit cards). Marketing and advertising will remain at or below 5% of sales. We will continue to reinvest residual profits into company expansion, and personnel.

8.1 Start-up Funding

An approximately $700,000 loan will be obtained from a conventional or SBA lender. At least $340,000 capital will be provided by the purchasers/owners – the Johnsons. It is possible that some financing may be provided by an active investor or partner in exchange for some level of ownership in the business. If an agreement with an investor or partner cannot be reached, then the owners will contribute all of the funding outside of the loan funding.

8.2 Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the following table. The key underlying assumptions are:

• We assume access to financing sufficient to maintain our financial plan as shown in the tables.
• We assume inventory can be turned in 6-8 months.
• Accounts receivable are small except for periodic sales to teams.  Everything else is cash/credit and carry.  We accept cash and checks, Visa, MasterCard, Discover and American Express. All sales paid via credit cards will be deposited in our business checking account within 48 hours.
• We anticipate that we will be able to complete required financing, lease documents, and due diligence to allow for a November or December 2004 closing and business take over. 
• We assume a slow-growth economy, without major recession.

8.3 Break-even Analysis

For our break-even analysis, we assume running costs which include payroll, rent, utilities, interest expense on the funding loan, and an estimation of other running costs. These estimations are based on real financial history data provided by the sellers of the business. Our sales forecast indicates that monthly sales are expected to be much greater than the break-even point.

8.4 Projected Profit and Loss

The projected Profit and Loss for five years is detailed in the table and charts following. Monthly projected Profit and Loss for year 1 is available in the Appendix. Some assumptions and inclusions to be noted are:

• First year expense and revenue projections are based on the previous 2 years of actual financial data provided by the business seller. Since this is an existing business being purchased, we have lots of real historical financial information to analyze for trends.
• Insurance includes: Business property and inventory, liability and interruption, and key person life insurance. 
• We have made assumptions, based on past results, that certain expenses will rise in direct proportion to sales. For example, Bank Card Debit & Service Fees will rise in direct proportion to sales because more sales results in more credit cards being used for purchase transactions. Also, Freight In will rise in proportion because more inventory will need to be shipped in as sales rise. Other expenses that have been projected proportionally to sales increases include Insurance (for inventory), Office Supplies, and Telephone.
• Freight In historically has been .5% of gross sales.
• Bank Card and Debit Service Fees incurred because of credit card sales are calculated at 2.0%.
• Rent increases significantly in years 2-5 because of the retail store and warehouse relocation.
• Marketing/Promotion expenditures will be increased significantly from the past in years 1 and 2 and then be increased as the business grows and expands.
• Payroll expenses will increase as the business grows and we need to hire additional staff.

We expect to be profitable in the first year, with net profits increasing steadily as the reputation of our business, its employees, and services become apparent to the local market and we reap the expected revenue gains from relocating the retail store, enhancing the Website, and expanding into additional products.

8.5 Projected Cash Flow

Cash flow will have to be carefully monitored, as in any business, but Sportsuchtig has the advantage of operating a primarily cash and carry business. After the initial investment and start-up costs are covered, the business will become relatively self-sustaining. The principle payments to service the $700,000 funding loan are reflected in the Cash Flow table.

The key to managing cash flow is to understand the current monthly sales data and to successfully manage the timing of inventory purchases. Sales for Sportsuchtig typically spike in the spring months of February, March, April, May and June. Inventory for this spring season is purchased in bulk from the four major suppliers in the fall months and can cost between $500,000 to $800,000, depending upon the extent of the orders. The suppliers provide significant price breaks on the bulk orders and do not require payment until April 1. Some of the payables associated with this inventory are paid over the 5-6 months before April 1, but the majority is kept in the cash account until full payment on April 1. Additional orders besides the fall bulk orders are also placed as needed throughout the rest of the year. Terms on these inventory orders are typically Net 30 and they are paid in in 30 days. Inventory levels are usually maintained at high levels, due to the need to have product in stock and available when customers need it and it is turned every 6-8 months. We will focus on reducing inventory levels in order to improve cash flow.

The significant cash flow negative in April is expected and is a result of paying the inventory accounts payable that have accrued over the 5-6 months between purchase and the April 1 payment.

Any amounts above $50,000 will be invested into semi-liquid stock portfolios to decrease the opportunity cost of cash held. The interest will show up as Interest Income in the Profit and Loss table and will be updated quarterly.

Cash flow projections are critical to our success. The following table shows cash flow for the first five years, and the chart illustrates monthly cash flow in the first year. Monthly cash flow projections are included in the appendix.

8.6 Projected Balance Sheet

Sportsuchtig’ projected balance sheet shows an increase in net worth by 2009, at which point it expects to be making significant after-tax profit on sales of $5 million. With the present financial projections, Sportsuchtig expects to build a company with strong profit potential, and a solid balance sheet that will be asset heavy and flush with cash at the end of five years. We plan on using the excess cash for continued growth.

The projected Balance Sheet for five years is detailed in the table following. Monthly projections for the first year Balance Sheet are available for review in the Appendix. 

8.7 Business Ratios

Business ratios for the years of this plan are shown below.  Industry profile ratios based on the Standard Industrial Classification (SIC) code 5941, Sporting Goods and Bicycle Shops, are shown for comparison.

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