Keith’s Sporting Goods (KSG), will sell athletic equipment to all levels of fitness, from weekend warriors to college athletes. We will create a welcoming environment for everyone to come in and ask for advice or discuss equipment needs.

KSG is a sporting goods retailer based in Eugene. Owners are looking for a place with high foot traffic, although an exact location has not been determined. We would prefer to be located in central Eugene. This is where most people can walk a few blocks to get to our store.

We fully expect to grow quickly. Although this is a common assumption for many businesses, KSG believes it can make a profit early in its life. Sales are forecasted to be conservative in the first month but are expected to increase by 2% each month thereafter, with a first year growth rate of 12%. This assumption appears to be accurate given the fact that the sporting goods wholesale industry is growing at an 11.5% annual rate.

Keith&#8217, Sporting Goods LLC will be registered as an S Corporation. This will ensure that owners are protected from liability and tax protections. In the early stages of business, we will be primarily debt financed through a local bank and the Small Business Association (SBA). We forecast 60% debt. The operator and owner will invest the remaining.

Depending upon the timing of financing, the store should be open by January next and we will expect strong profits at the end of the year.

1.1 Objectives

The main objectives of the store include:

1. Brand recognition. KSG will be a recognized sporting goods and fitness store in Eugene.
2. To be able to make a profit in the first 12 months of your business.
3. In years one and two, achieve a 15% sales growth rate and maintain a constant 11.5% thereafter.
4. At 40%, maintain a constant gross profit. If we are able to do this and keep costs fixed, sales will be able to grow faster than total costs.

1.2 Mission

KSG strives to build long-lasting relationships between our customers and our employees. Store management will continue to emphasize the importance of working with the community, encouraging community service and encouraging additional education for our employees. We believe it is essential to give back to our community, as well as maintain an atmosphere that allows our employees to grow.