Professional Athletic Equipment, Inc. is going to manufacture and market a protective product for young athletes. The product will be known as Body Armor and the brand name it bears. The product is intended to help prevent injury from blunt trauma to the chest, side, and abdomen. This device can also prevent sudden death due to commotio cordis (heart attack caused by external trauma). This injury is more common in baseball than in soccer. A United States patent for the device is currently pending.

This business plan is part of our regular business planning process. This plan is revised semi-annually.

In the next full-year, we will produce and market the initial product. None of the sales have taken place to this point.

We project sales of 750 units monthly on average for year one. This will bring the total year’s sales volume to $242,550. Management anticipates that sales will surpass $4 million in year three and profitability. Profits for year three are expected to exceed $4 million before taxes and be $593,570.

In order of importance, these are our keys to success for next year.

• Production of the first three sizes.
• To test marketing and basic researching to determine product acceptance
• Multi-channel distribution: Test marketing
• Testing media, PR, pricing and product endorsement plans.
• Goal to reduce production start-up cost and depreciation in the first three molds.

And then:

• Limiting loss to less then $200K in year 2
• Limited retail distribution achieved in year three (2nd Sales Year).
• Three years of profitable operations.

1.1 Objectives

Professional Athletic Equipment, Inc. sets a modest goal of achieving its year-one sales. When we reach these minimums, it will be close to the over-all breakeven point for year one. This will allow us to expand our business in year two.

The sales targets by size are:

• Small#82114500 units
• Medium’#82112250 units
• Large&#82112250 units

Attaining these targets will result in year one sales volume of $242,550 and will confirm a successful test.

To keep projected margins at these low sales levels, costs are controlled. To achieve growth, additional production and increased marketing activity may be necessary if sales exceed this goal. On the safe side, some sales may be missed in order to gear up for year two.

1.2 Mission

Professional Athletic Equipment, Inc., an American manufacturing and marketing company, is dedicated to protecting young athletes against tragic injury and death. We plan to create quality, tested products as well as sufficient profit to provide fair returns for our investors. Our initial product, &#8220/Body Armor &#8221, will be sold to youth baseball players’ parents via targeted direct marketing. The &#8220Body Armor&#8221 is designed to protect athletes from injury as well as improve their athletic performance. The “Body Armor” seeks to foster the enjoyment of sports by young people. We want to expand the business, to position ourselves as a leader and innovator in this niche. After our marketing platform is established, we will continue to finance internal and external growth. Once that happens, we will develop and acquire additional products. We will operate our business according to Christian values.

1.3 Keys of Success

Professional Athletic Equipment, Inc. has the following keys to its success:

• High Quality Products. The new molds need to be created and production must begin. Initial orders must be placed and suppliers of all components identified. Assemblies must be completed on time. Re-work should be kept to a minimum.
• Marketing. Once quality product is available, the success of Professional Athletic Equipment, Inc. rests wholly in the marketing venue. The #8220Body Armor#8221 is a novel product. Customers must be educated about its existence and purpose. To achieve success, it is essential to control media costs in order to generate sales.
• Management.

While there is a temptation to grow a business exponentially, it is critical that Professional Athletic Equipment, Inc. management concentrate first on proving product salability within certain price points, margin requirements, distribution channels, and establish consumer acceptance. After these answers have been found, controlled expansion (which involves increased production and investments in inventory) can then be achieved with confidence.