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. Johnson Sporting Goods, LLC, which is a limited liability company, will purchase it. Sportsuchtig will continue to operate the business.

Sportsuchtig is a seller of quality sporting goods equipment. It specializes in selling equipment for baseball and softball, as well apparel and accessories from major manufacturers like Easton and Louisville Slugger, Worth, Mizuno and Miken. The company began as a retail store and was expanded to include an Internet sports store. The 7,400 square-foot facility, which houses the retail store, call centre, office, product warehouse, and office, currently has 10 employees. The company’s sales have averaged $2.5 Million over the last 3 year with a 25% gross margin. 52% were generated via the website, and 48% came from its 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 an excellent business with strong potential for growth. This business plan is expected to help the business reach a revenue of more than $5 million within five years. In year 1, sales are expected to remain flat and grow by 20% through years 2-5. This growth forecast assumes that these key opportunities are taken advantage of by the company.

• Redesign, upgradation and marketing of the Internet shop.
• Moving the existing retail location.
• Addition of product lines to support sports other than baseball/softball.
• To gain a substantial share of the team’s sales market, create an outside sales team.
• Optimized inventory purchasing, management, and tracking

We plan to move the business towards the end of the first year. This will help us position ourselves for greater retail sales in the second year. The website will go through a major redesign in the first 6 month. Our Web marketing strategy will coincide with the new site’s launch. 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.

John Johnson, the owner of the business, will manage it as President and Chief Executive Officer. Johnson’s experience in high-tech and sports business, as well as his entrepreneurial skills, make him an ideal leader to lead this sporting goods/internet venture. His experience in high-tech startups such as Lucent Technologies, ;Motorola Systems and Lucent Technologies was almost twenty years. Johnson was the Vice President and founding employee of one high-tech startup. Johnson Enterprises, LLC, Johnson Investments, LLC, were founded by Johnson Johnson. Johnson Enterprises, LLC builds, sells, designs, or constructs custom court surfaces (basketball, tennis, and other sports). Sporting goods products, synthetic putting courses, and basketball courts. 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 levels of sales ($2.5million), gross profit (25%), and Net Margin (12%) from the past two-years.
• Realize an annual growth rate of 20% in the years 2-5 to reach over $5 million in sales at the end of each year
• Improve gross margins from 25% to 35% by the end of year 5.
• Improve net margins by the end of year 5.
• Design and upgrade the Internet-based e-commerce store by year end.
• Increase website site traffic 50% and sales 20% in years 1-5 by investing in aggressive Web search optimization and marketing.
• Relocate the existing store to a prime spot in the area. This will improve the retail store’s position in the second year.
• To help children with low self-esteem and confidence through youth sports programs, establish relationships with local nonprofits.
• As a family-owned and -oriented business, the emphasis is on honesty, integrity, quality relations, fun, and giving back.

1.2 Mission

To be the best supplier of sport equipment by building a long-term relationship with customers. To become the « family expert » in sporting goods equipment, treating customers like family and maintaining an experienced, knowledgeable and caring staff that can assist them in making the right purchase. This includes coaches, athletic directors, league representatives, and individuals who are outfitting their families.

1.3 Keys for Success

• The website can be upgraded to make it more professional and user-friendly, to offer incentives, features and promotions that will draw customers back to it repeatedly, and to optimize for maximum search engine results.
• Place the existing retail shop in a more densely-populated, growing area.
• Negotiate with major suppliers optimal agreements that will improve margins, reduce costs, and maximize the control of and turnover for our inventory.
• In order to increase inventory turnover and track, use a state of the art inventory management software.
• Expand your product line by offering equipment for other sports, which is very popular during the slow Sportsuchtig 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 as well as how to support customers and provide family-oriented service.
• Train an existing employee to manage the store, or hire from abroad.
• Advertise and market in areas where our target customer base can learn about our retail and internet stores.
• A reliable operations infrastructure is built that is ready for customers to use. It also prepares accurate billing and accounts, follows up on orders, manages the Web site and keeps a close eye on expenses.
• Get involved in the community by supporting local leagues and teams and volunteering to sponsor them.
• You must ensure that The Sportsuchtig’s values are followed every day in your management practice, so that you can build and maintain a profitable business.