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Supply Chain Planning for New Businesses: 5 Steps to Get Started

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Starting a new business can be overwhelming, especially when you delve into the complexities of running a successful supply chain. Fortunately, this guide to supply chain planning has everything you need to create a winning supply chain plan for your new business. 

What is Supply Chain Planning

Supply chain planning (SCP) is the forward-looking process of coordinating assets to optimize the delivery of goods, services, and information from supplier to customer, while balancing supply and demand. 

Often included with the mention of supply chain planning is supply chain management (SCM) , which encompasses the broad range of activities required to control and execute a supply chain plan in the most economical, and efficient way possible. You will need both SCM and SCP to meet customer demand in the most efficient way possible. 

Supply Chain Planning Strategies and Methods for New Businesses

Supply chain planning for new businesses is an immense subject, with dozens of complexities and applications. Though it seems confusing, you can tackle this complex field by breaking it down into a series of simple steps. 

Define Your Supply Chain Goals and Key Results

Start by considering your business model, as well as that of your competitors. List your key goals and results you wish to achieve. A typical example might look like:

• Maintain On Time Delivery Performance greater than or equal to 95%.
• Reduce Lead Time of 70% of products you sell by 25%.
• Improve Supplier On Time Delivery to greater than or equal to 85%.
• Improve ERP Planning Parameters to achieve On Time Delivery Performance 95% level.
• Manage Working Capital – $3.8M < 68 DOH (Days on Hand) as Inventory Target.
• Reduce total logistic cost as percentage of sale by 6% from previous year.

Define Key Tactics and Initiatives To Achieve Supply Chain Goals

The next phase explores the individual aspects of your framework, i.e., your supply chain tactics. Think of your supply chain tactics as a set of short term initiatives you utilize to achieve your short term goals, and enable your long term strategy. A typical example of initiative could look like:

• Conduct ABC analysis with all strategic suppliers (Min/Max stocks, Lead-time reduction).
• Implement Direct Line Feed (DLF) with high running manufacturing cells.
• Deliver Cost Out projects committed in freight & warehousing spend.
• Support Part Transitions via ramp up/ramp down to support cost out.
• Develop Individual Personal Development Plans for each Supply Chain team member.
• Develop advanced project management skills.
• 2 x CPIM & 1 x MCIPS certifications to support the Supply Chain team in 2021.

Outline Your Supply Chain Strategy

Every item you sell requires supply chain planning at every phase of its life cycle. This phase is where you outline the supply chain strategy for each item. Supply chain strategy outlines typically include:

• Demand planning and management – Supply chain forecasting for a product improves your chances of producing and stocking adequate inventory to meet customer needs on a timely basis, without the need to store surpluses.
• Supply management – Supply management involves sourcing and procuring trusted sources of raw materials, components, software, and other goods that go into making your product or service.
• Production management – Production management, a.k.a. capacity planning is when you address production issues in terms of machinery, staff, and efficiency. The key question in this phase is “How much can we realistically produce during the planning period?” .
• Inventory management – Inventory management is how to manage inventory levels with supply chain partners, and keep stock on hand at an optimal level while ensuring reliable customer service.
• Pricing strategy – Pricing strategy is how you set an optimal price for your goods and manage the balance between supply and demand. One example of pricing strategy is a price cut designed to stimulate sales during periods of low demand.
• Crisis management – Event management in regards to your supply chain involves identifying all possible supply chain bottlenecks, breakdowns and delays at every link in the chain, and developing contingency plans to stay in business should you lose a supplier. 
• Integrated business planning (IBP) – Integrated business planning is how you link supply chain planning with the rest of their business, like sales, operations, and finance. Because IBP gathers information from across the enterprise, it also helps companies perform better predictive analysis.

Combine Goals, Tactics and Strategy into Your Supply Chain Plan

This phase of supply chain planning is where you combine everything, and decide on how your supply chain plan is going to be effective. Here’s where the process gets tricky, as you will have to corral your managers to agree on short term and long term actions, due dates and expected results. 

When working on this stage of your supply chain plan, it’s a good idea to decide on a figure that you’re willing to spend to achieve your goal. Keeping that figure in mind will make it easier to select the tactics that provide the most advantage.

Find a Fulfillment Partner

The last and final step in the supply chain planning process for new business is to invest in supply chain fulfillment . Flowspace is the fulfillment partner that handles everything after a consumer clicks buy. With a flexible, distributed network of fulfillment centers, the Flowspace platform makes it easy for businesses to enable fast, affordable fulfillment, from anywhere to anyone.

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Written By:

Allison Champion

Allison Champion leads marketing communication at Flowspace, where she works to develop content that addresses the unique challenges facing modern brands in omnichannel eCommerce. She has more than a decade of experience in content development and marketing.

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How to write the suppliers section of your business plan?

Writing a business plan involves several crucial components, and one of them is the supplier section. It helps communicate the reliability and effectiveness of your supply chain to various stakeholders, addressing any potential concerns they may have. 

This section also highlights the efforts you have made to establish a diverse supply chain that aligns with your business's values and objectives.

In this guide, we’ll look further into the core objectives of the supplier section, deep dive into the information you should include, and cover the ideal length. We’ll also assess the tools that can help you write your business plan.

Ready? Let’s get started!

In this guide:

• What is the objective of the suppliers subsection of your business plan?
• What information should I include in the suppliers section of my business plan?

How long should the suppliers section of your business plan be?

• Example of suppliers in a business plan
• What tools can you use to write your business plan?

What is the objective of the suppliers section of your business plan?

The objective of the suppliers section in your business plan is to clearly communicate your business’s supply chain protocols to potential stakeholders like investors, business partners, or suppliers. This involves three key aspects:

Respectable counterparties

Highlight your intention to do business with reputable suppliers who are known for their reliability, quality products/services, and ethical practices. This lets the readers know what your expectations for working in a professional relationship are.

Dependency on a single supplier

This highlights your company's intention to avoid excessive dependence on a single supplier. In this section, you can present how you're actively broadening your supply chain. This reassures stakeholders that you're taking steps to minimize the potential risks linked with relying solely on one source.

Reasonable prices and payment terms

Demonstrate that you have secured reasonable prices and favorable payment terms with your suppliers. This exhibits your ability to manage costs and ensure that you will be able to afford the materials required to run your businesses in a sustainable manner.

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What information should I include in the suppliers section of my business plan? 

Remember that the supplier section precedes the financial section of your business plan and it is essential to provide specific details to give readers a comprehensive understanding of your supplier relationships. To do this, consider including the following points:

Main suppliers

Identify your primary suppliers and briefly explain their importance to your business. Note that this is likely to vary from business to business. For example, a business in construction may have a supplier for concrete and steel, whereas a business in fast-food may have a supplier for ingredients and packaging materials.

Goods or services 

Specify the goods or services that your business provides. Clearly outline how these suppliers contribute to your business operations and support your value proposition. Here you can focus on explaining how the materials provided by the supplier help you in producing quality products or services and adding value.

Supplier relationship

Outline your familiarity with each supplier. If you've had previous interactions with a particular supplier (i.e. they’ve provided you goods or services in the past), emphasize the positive outcomes. Moreover, elaborate on why you opted for each supplier, such as their alignment with social values or ethical practices that resonate with your business mission.

Purchase frequency and delivery time

Indicate how often you expect to purchase from each supplier. If relevant, mention the delivery time for goods. This information helps readers understand your supply chain's efficiency and the potential impact on your business operations.

Commercial terms

Provide details regarding the commercial terms agreed with your suppliers. This includes factors such as pricing, volume discounts, payment terms, and any commitments to minimum quantities. Mention if there are any setup costs associated with establishing the relationship.

Setup costs

Provide a breakdown of the specific costs involved in setting up the supplier relationship. This may include one-time expenses or recurring fees (or both), depending on the nature of the supplier and your business requirements. Give readers as much information as you can to give them an indication of the costs involved.

Supplier dependence 

Assess the criticality of each supplier to your business’ success. Clarify whether your operations are dependent on receiving goods or services from a specific supplier and discuss the potential consequences if a supplier fails to deliver (how big an effect might it have on your ability to meet customer demand?). 

In addition, you should outline whether you have backup suppliers or contingency plans to mitigate disruptions in the event of supplier issues. If you haven't finalized decisions on certain suppliers but have received quotes or proposals, it is important to mention this in the suppliers section. 

Now that you know what information needs to be included in the supplier section, let's look at the volume of information required. As a rule of thumb, aim to keep the supplier section of your business plan to one page. However, the level of detail mentioned in the supplier section will be determined based on the following factors:

Key supplier dependency

If your business heavily relies on one key supplier, you will need to provide additional information to explain the terms and risks associated with that particular supplier. For example, discuss the renewal of contracts and any contingencies in place.

Business complexity and logistics

If your business involves intricate logistics or relies on multiple suppliers, each aspect of your operations may require more detail. Ensure you adequately explain the various relationships and their impact on your business.

Business operations

If your business is small, offers a limited range of products/services, or sources them all from the same supplier (with easily replaceable alternatives), your supplier section can be relatively concise. Focus on the most critical supplier relationships in this case.

Reader familiarity with the industry

Consider how familiar your readers are with the field you represent. If you operate a complex manufacturing business with multiple suppliers, you may need to provide more explanations compared to a straightforward retail operation.

Remember, the information included in your supplier’s section should be relevant to your business's main activities. There is no need to list all the suppliers you trade with unless they significantly impact your operations.

Need inspiration for your business plan?

The Business Plan Shop has dozens of business plan templates that you can use to get a clear idea of what a complete business plan looks like.

Example of a suppliers section in a business plan

Below is an example of how the suppliers section of your business plan might look like. As you can see, it coincides with the personnel plan as well as key assets and IP subsections and is part of the overall operations section.

The suppliers section of a business plan details the sources of goods, materials, or services essential for the company's operations. It highlights relationships, terms, and strategies for securing reliable and cost-effective supplies to sustain the business.

This example was taken from one of  our business plan templates .

What tools can you use to write a business plan?

In this section, we will review three solutions for writing a professional business plan:

• Using Word and Excel
• Hiring a consultant to write your business plan 
• Utilizing an online business plan software

Create your business plan using Word or Excel

Popular in the 1990s and early 2000s, writing a business plan using Word or Excel is quickly falling out of fashion, and for good reasons!

Using Word to draft the written part of the plan means starting from scratch and formatting the document yourself - a process that is both tedious and time consuming. There are also no instrcutions explaining what needs to be written in the plan, or examples to guide you through each section.

Creating an accurate financial forecast with Excel is only possible if you have expertise in accounting and financial modeling. As a result, investors and lenders tend to not trust the accuracy of a forecast created by entrepreneurs themselves on Excel.

Hire a consultant to write your business plan

Outsourcing a business plan to a consultant is another potential solution.

Consultants are used to writing business plans, and are good at creating financial forecasts without errors.

This means that they will be able to create an effective business plan with accurate financial estimates without much effort.

However, this will be an expensive endeavour: budget at least £1.5k ($2.0k) for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with investors).

Use an online business plan software for your business plan

Another alternative is to use online business plan software .

There are several advantages to using specialized software:

• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can be inspired by already written business plan templates
• You can easily make your financial forecast by letting the software take care of the financial calculations for you without errors
• You get a professional document, formatted and ready to be sent to your bank
• The software will enable you to easily track your actual financial performance against your forecast and update your forecast as time goes by

If you're interested in using this type of solution, you can try our software for free by signing up here .

Also on The Business Plan Shop

• How to do a market analysis for a business plan
• 7 tips for writing an effective business plan

Know someone who needs to write the supplier section of their business plan? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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A 6-step Guide to Create an Effective Supply Chain Management Plan

October 5, 2023

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Supply chain management is the foundation of any thriving business. It serves as the intricate web connecting suppliers, manufacturers, distributors, and customers. In today's hyper-connected global markets, streamlining and optimizing your supply chain is not only an option; but a strategic necessity. A well-crafted supply chain management strategy can be the defining factor between excelling in a competitive marketplace or grappling with customer satisfaction and cost control challenges.

In this comprehensive blog, we will demystify the intricacies of supply chain management and provide you with a step-by-step guide encompassing six essential actions to craft an efficient supply chain management plan.

According to Invesp, the majority, or 79%, of companies excelling in their supply chain management experience revenue growth surpassing the industry average.

Why Businesses Need an Effective Supply Chain Management Plan 

An effective supply chain management plan is indispensable for businesses due to several compelling reasons.

• Operational Efficiency: An effective supply chain management plan streamlines the movement of goods and services, reducing operational bottlenecks and ensuring smooth processes.
• Risk Mitigation: Businesses can proactively address disruptions in the supply chain, minimizing potential setbacks and ensuring continuity in operations.
• Data-Driven Decision-Making: Supply chain analytics empower data-driven decision-making, offering valuable strategic planning and adaptability insights.
• Resilience: It enhances a business's ability to weather unforeseen challenges and market fluctuations, contributing to long-term resilience and sustainability.
• Cost Reduction: This leads to significant cost savings by optimizing inventory levels, transportation, and procurement, contributing to improved profitability.
• Customer Satisfaction: Timely deliveries and product availability, facilitated by a well-managed supply chain, enhance customer satisfaction and foster brand loyalty.
• Competitive Edge: A robust supply chain management plan is crucial for staying competitive in the modern business landscape, where responsiveness and efficiency are key to success.

6 Steps to Create an Effective Supply Chain Management Plan

Here are the key steps to design a supply chain management plan to enhance operational efficiency and meet customer demands effectively.

1. Define Clear Objectives and Goals

Start by establishing well-defined objectives and goals that align with the organization's broader mission, vision, and strategic direction. These objectives should adhere to the SMART criteria (Specific, Measurable, Achievable, Relevant, Time-bound). 

Goals should not only reflect the company's values but also consider market demands, customer expectations, and competitive positioning. Objectives might encompass improving efficiency, cost reduction, customer satisfaction, inventory optimization, or sustainability. Ensuring alignment with the organization's overall goals is essential for the supply chain plan to effectively contribute to the company's success. 

2. Conduct In-Depth Market Analysis

The next critical step involves conducting a thorough market analysis. This entails a comprehensive study of market trends, demand patterns, and competitor strategies to gain valuable insights. Analyze consumer behaviors, economic fluctuations, technological advancements, and regulatory changes impacting the industry. Comprehend the dynamics of the supply and demand chain and identify potential risks and opportunities.

A comprehensive market analysis informs decisions related to production volumes, inventory management, supplier selection, and distribution channels. It also ensures that the supply chain strategy remains agile and responsive to evolving market dynamics, helping the organization maintain its competitive edge. Regularly reviewing and updating this analysis is crucial for adapting the supply chain management plan as the market evolves.

Is the supply chain different from logistics?

Yes, supply chain and logistics are related but distinct concepts. The supply chain encompasses a broader network, including procurement, production, distribution, and logistics, focused specifically on transporting, storing, and distributing goods. Click here to know how 'A Global Logistics Shipment Solutions Provider Successfully Improved Efficiency Levels with Our Support.'

3. Design an Efficient Supply Chain Network

After market analysis, the third step involves designing an efficient supply chain network. This entails optimizing the sourcing, manufacturing, warehousing, and distribution structure. Evaluate factors like location, capacity, and technology to streamline goods' flow and minimize costs. 

Consider proximity to suppliers and customers, transportation routes, and consolidation hubs. Employ technology and modeling tools to simulate network configurations and scenarios for data-driven decisions. Aim for a network balancing cost-efficiency with responsiveness. Include contingency plans for disruptions and resilience. Collaborate with stakeholders and seek feedback for design fine-tuning, setting the stage for optimized operations and customer satisfaction.

4. Carefully Select Suppliers and Partners

Following network design, the fourth step is meticulous supplier and partner selection. Identify suppliers meeting quality, reliability, cost-effectiveness, and ethical criteria. Evaluate financial stability, capacity, delivery timelines, and track record. Establish clear communication and expectations for mutual benefit. 

Consider strategic partnerships for collaboration and innovation, negotiating contracts with terms, conditions, pricing, and metrics. Prioritize trust, transparency, and shared goals in long-term relationships. Regularly review supplier performance, diversifying sources to mitigate risks, enhancing supply chain resilience and efficiency.

5. Develop Robust Inventory and Demand Management Strategies

The fifth step involves developing strong inventory and demand management strategies. Categorize products based on demand patterns and criticality. Implement just-in-time (JIT) or just-in-case (JIC) approaches for optimized stocking and reduced carrying costs while ensuring availability.

Leverage forecasting models, historical data, and market trends for accurate demand predictions. Collaborate with sales and marketing to align forecasts with activities. Employ technology and demand planning software for enhanced accuracy. Establish efficient order management with automation and digital tools. Use data analytics to identify slow-moving or obsolete inventory, taking timely action. 

Regularly review and update these strategies to match market dynamics and preferences. Effective inventory and demand management optimize stock, cash flow, and customer satisfaction.

6. Implement Performance Metrics and Continuous Improvement Processes

The sixth step involves implementing performance metrics and continuous improvement processes for ongoing enhancements. Set KPIs aligned with objectives: cost efficiency, on-time delivery, inventory turnover, customer satisfaction, and sustainability. Track and analyze these metrics regularly.

Promote a culture of continuous improvement, fostering collaboration, innovation, and best practice sharing. Conduct reviews to identify inefficiencies and use methodologies like Six Sigma or lean principles. Encourage open communication and feedback loops for proactive problem-solving. Embrace emerging technologies for a competitive edge.

By measuring performance, nurturing a culture of improvement, and using data-driven insights, refine and adapt the supply chain to evolving business needs, resulting in a more effective supply chain management plan.

Supply Chain Management future is on the edge of transformative changes, propelled by cutting-edge technologies such as IoT, blockchain AI and data analytics. These groundbreaking innovations hold the potential to usher in a new era of heightened visibility, unparalleled efficiency, and enhanced sustainability within the SCM landscape.

Nonetheless, these advancements also bring forth novel challenges, encompassing cybersecurity vulnerabilities, apprehensions regarding data privacy, and the essential task of upskilling the workforce. Hence, to adeptly navigate this intricate terrain, forging partnerships with industry authorities emerges as an imperative strategy. 

At Invensis , we bring specialized insights and a wealth of experience to optimize supply chain operations, identify and mitigate risks, and harness emerging technologies. Reach out to us to stay ahead of the curve and safeguard your operations against evolving threats and challenges with our supply chain and logistics BPO services .

Mark Anderson is an esteemed supply chain and logistics partner with a wealth of experience spanning more than a decade. His mastery in optimizing supply chain operations across diverse industries has made him a trusted resource for businesses seeking efficiency and cost-effectiveness. Mark excels at translating intricate logistical challenges into pragmatic strategies that drive collaboration among departments. As a prolific writer, Mark delivers clear and concise insights, empowering businesses to navigate the complex world of supply chain management with confidence.

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Supply Planning: Definition, Process, and Best Practices

Supply planning is a business management tool that impacts supply, demand, and inventory levels. Retailers use supply chain planning systems to provide projected demand for products and materials needed to support those demands. 

The process is designed to balance plans for future demand with the availability of goods in inventory. Supply planning helps companies determine how much product they need to keep in stock. Order entry, review and release of orders with suppliers, and inventory management within warehouses and distribution channels are all factors that inform the supply planning function. 

The lead times for supplier products to be received, the complexity of managing multiple vendors, the need for material handling equipment, and the availability of labor complicate the process. Let’s take an in-depth look at the supply chain planning process and its best practices.

What Is Supply Planning?

Supply planning is a process that involves analyzing demand forecasts, comparing the forecasted demand to existing inventory, and coordinating the supply chain activities needed to meet that demand. It determines the production level of goods or services, the materials that are required, and when they must be acquired. 

Supply planning, also known as raw material or material planning, is often the cornerstone of optimized supply chain management. A supply chain planning strategy is designed to ensure that the right product is available at the right place and time while minimizing costs and risks associated with the supply chain. Inventory levels are intended to meet projected sales volume. 

Inventory management is vital to sales and operations planning because it affects sales volume and product pricing. The inventory levels are adjusted as demand volumes change. When there is a change in demand, there must be a production adjustment to align with the change, which may require companies to adjust inventory levels. 

Changes in sales volume directly affect inventory levels. Stores must control their inventories to meet customer demand. Doing these processes well can result in higher sales because inventory is available for customers when they want to make a purchase. They can support their companies by increasing sales and reducing costs by having the right amount of products on hand. 

The Supply Planning Process

The supply chain planning process involves coordinating the movement of goods, from raw materials to finished products, in a supply chain. Here are the steps in the supply planning process.

Forecast Demand

Forecasting demand for products is the first step in the process. It involves analyzing historical sales data and market trends to predict the level of product demand in the future. It is important to develop these forecasts regularly because there are many external factors – such as inflation or the inability to get raw materials due to trade sanctions – that could impact sales of your products. These potential disruptions must be considered when planning for future inventory requirements to support an efficient supply chain.

Demand can be determined by analyzing sales levels, historical data, customer surveys, and past trends. The forecast relies on sales forecasts because they show how market demand will change over the product’s life. 

Depending on the type of product you are selling, you must also project custom orders. You can project the custom order from various sources, and each custom order should be considered a separate demand element rather than a single lump sum for each item in the sale. It’s more efficient to handle your customers as individual buyers.

Determine Sources of Supply

Once the forecast demand is known, the next step is identifying the sources required to meet that demand. This process includes identifying suppliers, negotiating contracts, and establishing inventory levels.

For retail stores, this step involves identifying the supplier’s location and establishing a contract to buy products. For consumer goods producers, this step would include finding suppliers to provide raw materials for their production process. 

With this step, you may also identify changes in payment terms, such as requiring immediate payment or accepting open account credit terms with your suppliers. Your objective is to set up a supply plan that supports your business strategy while managing cash flow and working within your company’s budget allocations.

Schedule Production

Based on the forecast demand and the sources of supply, the company creates a production schedule based on the availability of goods necessary for production. Scheduling production affects the order of the usage of raw materials and the manufacture of finished products. 

It involves setting up production schedules to meet demand and coordinating with suppliers to schedule plant production runs. For example, a manufacturer may set up a production schedule based on raw material and labor availability, known as manufacturing resource planning (MRP) . MRP is a computerized system that schedules resources to meet demand.

Plan Transportation

Plan the transportation of goods from the supplier to the manufacturer and from the manufacturer to the customer. This requires selecting carriers, coordinating with multiple carriers, and determining the most efficient modes and routes to get the product where it needs to be when it needs to be there.

Manage Inventory

Inventory management involves allocating space and other containers required for storing materials in a distribution center. It determines the optimal inventory levels to maintain for production schedules’

A key component of inventory planning is understanding what drives demand for an item. Inventory monitoring is automated to identify trends in the market, order patterns, and sales history. This information determines how much product should be acquired to have sufficient supplies before selling at the optimum price.

Monitor and Adjust the Plan

The supply chain planning process is ongoing, and the plan may need to be adjusted as market conditions change or new information becomes available. Regularly review and update the supply plan to ensure that it remains effective.

Why Supply Planning Matters

Supply planning is a vital function to ensure a company has enough raw materials to meet production demands. If a company lacks enough raw materials, it can lead to production delays, which can be costly and disrupt the smooth operation of the business. 

On the other hand, if a company has too much raw materials inventory, it can tie up valuable financial resources that can boost other sectors elsewhere in the business. Proper supply planning is, therefore, essential for maintaining an efficient and cost-effective production process.

An adequate supply plan helps a company strike the right balance between these extremes. It ensures enough inventory to meet customer demand while minimizing excess inventory and associated costs. 

A supply plan is the foundation of a company’s entire supply chain, including coordinating the procurement of raw materials and scheduling production. The effectiveness of the supply chain can impact a company’s profitability and its level of customer service.

Supply Planning Best Practices

Through continuous improvement efforts, supply chain planners work to improve sales and operations planning performance. Here are a few best practices to consider when planning your global supply chains.

Collaborate With Suppliers

Establish strong relationships with your suppliers and work with them to ensure a consistent and reliable flow of goods. To communicate with suppliers effectively, you should use a single system to request, track, and manage all customer requests.

Use Technology to Improve Supply Planning

Use technology to support and improve the supply plan. You can use various software applications, such as inventory management systems or sales forecasting software, to track inventory levels, delivery schedules, and other key performance metrics .

Implement Demand Forecasting

Demand forecasting involves assessing market trends to determine the anticipated level of demand for your product. It helps set production volumes, track product introduction schedules, and plan for future on-hand inventory levels. Use real-time data and analytics to anticipate demand and plan accordingly to help avoid shortages or overstocking.

Build Flexibility Into Your Supply Chain

While the supply chain is your customer’s lifeline to product availability, you must ensure it is flexible enough to meet changing needs. The components of your supply chain should include various elements that enable production in different quantities at different locations. 

You also need the flexibility to adjust production timing or manufacturing schedules when conditions warrant. Consider implementing multiple sources of supply and incorporating flexible manufacturing approaches to reduce the impact of disruptions.

Here are frequently asked questions regarding supply planning and supply chain processes.

What is the purpose of supply planning?

Supply planning provides a framework for managing supply and demand in your company. The supply plan is designed to identify the most cost-effective and efficient methods for acquiring, stocking, and distributing raw materials, components, and finished goods. You may experience shortages or overstock and incur excess costs without proper supply planning.

What is demand planning vs. supply planning? 

Demand planning is forecasting the future demand for a company’s products or services and determining how much of those products or services the company will need to produce to meet that demand. Supply planning involves how to source, manufacture, and distribute the necessary products to meet the demand forecasted by the demand planning process.

Final Thoughts

The supply planning process is a critical component of effective logistics. Supply chain planning involves anticipating future demand and planning the most efficient methods of acquiring and distributing raw materials or finished goods. It ensures a timely supply of materials and finished goods.

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The Guide to Writing the Supply Management Plan

Supply management is one of the key components of a successful business, regardless of its niche or service portfolio.

Once you find a suitable supplier or B2B partner with the items or services you need to remain operational at peak capacity, you need to ensure that a supply management plan is in effect.

You cannot underestimate the importance of a supply management plan for your business because the gaps in it will lead to problems with logistics, poorer relationships with your customers, and a drop in revenue as a result.

Statistics prove this point. According to the report by InvespCRO :

• 57% of businesses have poor visibility across their supply chain
• 63% of companies don’t use proper technology to monitor their supply chain performance
• 7% of businesses also struggle with the financial costs of maintaining their supply chains

There is no doubt that the problems described by these stats come from a poor and ineffective supply management plan because a good one would contain the solution to each of them.

So, as you might have already guessed, drafting such a document takes effort and attention to the smallest details. This is due to legalities and mutual obligations, which will require careful listing and formatting.

With that said, let’s take a look at what you need to write an effective supply management plan that satisfied both parties involved in the supply chain.

1. Start with a Supply Management Plan Overview

The first thing that your supply management plan should include is the front page with all the essential information about the subject of this plan. This is a short overview that provides a brief sum-up of the main stipulations, including:

• Proposal – general details of the cooperation between the company and the supplier.
• The main recipient of the goods – the name and legal address of the company that receives goods from the supplier.
• The description of product categories – all products that the company will receive from the supplier and the proposed budget for the delivery of each of them.
• Contact details – should include the names and job titles of people responsible for the supply management plan from both sides involved.
• Date of submission – the date when both sides signed the plan.

This page should also include the general timeline of the cooperation and the delivery schedule for each product mentioned in the supply management plan.

Including the overview page to your supply management plan is essential because you can refer to it every time you and your supply partner have questions, without having to review the entire document.

2. Create a Supply Procurement Policies Outline

This is an essential part of your supply management plan because, in it, you will specify why you’ve chosen your supplier. But apart from that, there are quite a few other important stipulations that this section will include:

• Purchasing authority – the name of the company that buys products, which items it will purchase, the person who oversees the delivery of the products.
• Spending limitations – the maximum budget allocated to the purchase and delivery of the goods within a certain timeframe.
• Reason for choosing the supplier – product quality, delivery schedule, pricing, and other factors that influenced the choice of the supplier.
• Contract details – the description of the document that confirms the partnership between the company and the supplier.
• Ethical conduct – includes the confidentiality agreement, conflict resolution procedures, supply chain risk management , and other conditions that ensure the efficacy of the supply management plan.

This section needs special attention from both sides involved in the plan because the details described in it regulate the relationship between the company and the supplier while this plan is in effect.

3. List Quality Assurance Requirements

Under quality assurance (QA), you will include the quality characteristics set out by you as a customer, from the general performance of the product to separate product features.

The list of the QA requirements will depend on the specificity of the products, but here are a few examples just to give you an idea:

• Product defects – make the definition of a product defect, explain how it will be evaluated, and how it can impact the production process.
• Warranty period – the timeline, within which you are allowed to exchange the product for a new one.
• Product inspections – how often the quality of the products will be reviewed and what measures you will take if the supplier violates your QA agreement.

When it comes to listing QA requirements, the devil is in the detail. If you skip something, you might end up with the problems that we described in the introduction. So, make sure this section is well-edited and proofread. You can use online tools like BestEssaysEducation , SupremeDissertations , or Grammarly for extra proofreading help.

The main goal of this section is to make the exchange of goods easier and avoid repeated quality inspections. If you list all the quality requirements in this section, the document will oblige the supplier to observe them.

4. Include International and State Laws

Just as any document that defines the relationship between two businesses, the supply management plan should list legal provisions that regulate this relationship.

Legal documents defined in this section can include but are not limited to:

• Intellectual Property Rights
• Laws that regulate environmental factors, like the Restriction of Hazardous Substances (RoHS) and Waste from the Electrical and Electronic Equipment (WEE)
• General state laws created by the U.S. Securities and Exchange Commission

In addition, you also need to check your state laws to make sure that your supply chain won’t meet any obstacles on the local level.

5. Outline your Supply Selection

One of the most important parts of your supply management plan that requires your attention to detail is the list of goods you will receive from the supplier. This section will include a table that will describe the essential product details needed for supply chain optimization .

The table with product selection should include:

• information about each product category
• the generic name of each product
• number of products scheduled for delivery within a certain timeline

In this table, you can also include the information about the pricing for each product to make sure that the price is fixed on paper and cannot be changed if both sides don’t agree on it.

A proper supply management plan has a lot of advantages, from higher revenues to an improvement in the overall productivity of your company. However, its biggest advantage is that it standardizes and curates the relationships between you and your supplier.

But, as with any document that regulates business relationships, this one also needs attention to detail. Hopefully, our short guide will help you draft a detail-oriented supply management plan that helps you run your supply chain successfully.

About the author 

Kristin Savage nourishes, sparks and empowers using the magic of a word. Along with pursuing her degree in Creative Writing, Kristin was gaining experience in the publishing industry, with expertise in marketing strategy for publishers and authors. Now she works as a contributing writer at TrustMyPaper and GrabMyEssay . You can find her on Facebook .

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How to Start a Profitable Party Supply Business [11 Steps]

By Nick Cotter Updated Feb 02, 2024

Business Steps:

1. perform market analysis., 2. draft a party supply business plan., 3. develop a party supply brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for party supply., 6. open a business bank account and secure funding as needed., 7. set pricing for party supply services., 8. acquire party supply equipment and supplies., 9. obtain business insurance for party supply, if required., 10. begin marketing your party supply services., 11. expand your party supply business..

Before diving into the party supply business, it's essential to understand the market landscape to position your venture for success. A thorough market analysis will help you identify customer needs, competitive dynamics, and potential niches that your business can exploit. Here are key points to consider:

• Identify Your Target Market: Research who your customers are, their age groups, preferences, and spending habits. Determine whether you're catering to parents for children's parties, corporate events, or another niche.
• Analyze Competitors: Look into existing party supply businesses, their product offerings, pricing, and market share. Identify areas where you can differentiate your business and offer unique value.
• Assess Trends and Demand: Keep abreast of current trends in party themes, decorations, and supplies. Analyze seasonal and regional demand variations to plan your inventory accordingly.
• Examine Suppliers and Costs: Investigate potential suppliers for quality, reliability, and cost. Understanding the cost structure is crucial for pricing your products competitively.
• Regulatory Considerations: Familiarize yourself with any regulations or licensing requirements that may impact your ability to operate a party supply business in your chosen location.

Are party supply businesses profitable?

The profitability of a party supply business can vary depending on several factors, such as the type of products offered, the location, the competition and pricing strategies. Generally speaking, party supply businesses that are well run and offer quality products are likely to be profitable.

Creating a thorough business plan is essential for the success of a new party supply business. It will serve as a roadmap, helping you to establish goals, understand your market, and manage your finances effectively. Here are some key elements to include in your party supply business plan:

• Executive Summary: Summarize your business concept, the problem it solves, the target market, and financial highlights.
• Business Description: Provide a detailed description of your party supply business, including the types of products you will offer and your unique selling proposition.
• Market Analysis: Research the party supply industry, identify your target market, and analyze your competitors.
• Organization and Management: Outline your business structure, ownership details, and information about the management team.
• Sales and Marketing Strategies: Describe how you plan to attract and retain customers, including pricing, advertising, and promotions.
• Product Line: Detail the range of party supplies you plan to sell, including any proprietary products or exclusive lines.
• Financial Projections: Provide financial projections, including startup costs, revenue forecasts, profit and loss estimates, and cash flow analysis.
• Funding Request: If applicable, specify the amount of funding needed to start or expand the business, along with proposed use of funds.

How does a party supply business make money?

A party supply business can make money by selling products and services related to events and celebrations. For example, they may sell decorations, catering, party favors, invitations, and more. They can also offer services such as event planning or organizing. A target audience for a party supply business could be families preparing for birthday parties, corporate clients planning large events, or brides-to-be organizing their wedding. With knowledge of the industry and a little ingenuity, a party supply business can be a profitable endeavor.

Developing a brand for your party supply business is a vital step that sets the tone for your products and marketing efforts. A strong brand will resonate with your target audience, differentiate you from competitors, and build customer loyalty. Here's how you can create a captivating brand:

• Identify your target market: Understand the demographics and preferences of your potential customers to tailor your brand's voice and aesthetics.
• Define your unique selling proposition (USP): Clearly articulate what makes your party supply business stand out, whether it's eco-friendly products, exceptional customer service, or unique party themes.
• Create a memorable brand name and logo: Choose a name and design a logo that reflects your brand's personality, is easy to remember, and appeals to your target market.
• Develop a consistent brand voice and image: Ensure that all your communications, from your website to your packaging, align with your brand's character and message.
• Invest in quality product photography: High-quality images of your party supplies can enhance your brand's perceived value and appeal to customers.
• Protect your brand identity: Register trademarks for your brand name and logo to safeguard them from use by competitors.

How to come up with a name for your party supply business?

Coming up with a creative and memorable name for your party supply business is essential to success. Brainstorming ideas with a pen and paper can be helpful in coming up with a unique angle. Consider using wordplay or alliteration to make it memorable. Additionally, doing research on existing businesses in the industry to ensure you're not too similar in name is a good idea. Finally, consider taking time to think about the type of events and customer base you are looking to serve when selecting your business name.

Starting a party supply business requires you to formalize your business registration to ensure that you're operating legally and to protect your personal assets. This step is critical as it lays the foundation for your business's structure and future operations. Below are key points to consider as you register your business:

• Choose a business structure (e.g., sole proprietorship, partnership, LLC, or corporation) that best suits your needs for liability, taxes, and management style.
• Register your business name with the appropriate state authorities, ensuring it's unique and not already in use.
• Obtain an Employer Identification Number (EIN) from the IRS for tax purposes, especially if you plan to hire employees.
• Apply for the necessary business licenses and permits that your city, county, or state may require for a party supply store.
• Understand and prepare for your tax obligations by consulting a tax professional or using resources provided by the IRS and your local government.
• Consider the need for additional insurance policies, such as general liability insurance, to protect your business from potential lawsuits and accidents.

Resources to help get you started:

Explore top resources designed specifically for party supply entrepreneurs, featuring up-to-date market trends, operational best practices, and strategic growth advice:

• International Festive Articles and Party Supplies Association (IFAPSA) Reports: Comprehensive industry analyses and future market outlooks. https://ifapsa.com/reports
• Party & Halloween Retailer Magazine: A go-to publication for seasonal trends, business strategies, and product ideas in the party supply world. https://partyandhalloween.com
• Specialty Retail Report: Insights into the broader specialty retail market, with applicable advice for party supply stores on maximizing sales and customer engagement. https://specialtyretail.com
• National Retail Federation (NRF) Newsletters: Stay informed on retail industry trends that affect consumer behavior and supply chain dynamics relevant to party supplies. https://nrf.com
• Small Business Administration (SBA) Learning Center: Online courses and resources for managing and growing your party supply business, from planning to execution. https://www.sba.gov/learning-center

Starting a party supply business requires compliance with various legal regulations. It is essential to acquire the necessary licenses and permits to operate legally and avoid any potential fines or business interruptions. Here's a concise guide to help you through the process:

• Business License: Check with your local city or county clerk's office to obtain a general business license, which is a basic requirement for any business operation.
• Sales Tax Permit: If you're selling goods, most states require you to register for a sales tax permit. Contact your state's taxation or revenue department to apply.
• Employer Identification Number (EIN): If you plan to hire employees, you'll need an EIN from the IRS for tax purposes. You can apply for this online, by mail, or by fax.
• Specialty Permits: Depending on your location and the nature of items you sell (e.g., fireworks or alcohol), you may need specialty permits. Research local regulations or consult with a legal expert.
• Health and Safety Permits: If your business involves food handling or interactive entertainment, you may require health and safety inspections and permits from local health departments.

What licenses and permits are needed to run a party supply business?

The licenses and permits required to run a party supply business will vary depending on the type of goods and services provided, as well as the local laws in your area. Generally, however, businesses that sell alcohol and tobacco products need to obtain a liquor or tobacco license from their state's Alcoholic and Beverage Control agency. Depending on where you live, you may also need a local business license, seller's permit, or a food retailer license if you plan to serve food at your parties. Additionally, it's important to check with your city or county zoning board to make sure your business is allowed to operate in the area.

Starting a party supply business requires a solid financial foundation, which involves setting up a dedicated business bank account and securing the necessary funding. Here's how you can manage these critical steps:

• Visit local banks or financial institutions to compare business bank account options. Look for accounts with low fees, easy access, and good customer support tailored to small businesses.
• Open your business bank account with the chosen bank. Ensure you provide all necessary documentation, such as your business license, EIN, and any other required paperwork.
• Develop a comprehensive business plan that clearly outlines your funding needs, including start-up costs, inventory, staffing, and marketing expenses.
• Explore different funding sources such as personal savings, loans from family and friends, bank loans, SBA loans, or even crowdfunding platforms.
• Consider applying for a business credit card to help manage expenses and build your business credit history.
• Keep your personal and business finances separate to simplify bookkeeping and tax preparation.
• Regularly review your business expenses and funding needs, adjusting as your party supply business grows and evolves.

When setting up your party supply business, pricing is a critical factor that can determine your success in the market. It's essential to balance competitive rates with your business costs to ensure profitability. Here are some guidelines to help you set the right pricing for your party supply services:

• Understand Your Costs: Calculate the total costs associated with your services, including purchasing inventory, maintenance, storage, and labor, to ensure your pricing covers these expenses.
• Research Competitor Pricing: Look at the prices of similar services in your area to gauge what customers expect to pay and to remain competitive.
• Value-Based Pricing: Consider the value your services provide to customers, such as convenience and uniqueness, and price accordingly.
• Package Deals: Create package options that bundle various supplies and services at a discount, encouraging larger sales.
• Dynamic Pricing: Adjust prices for peak seasons or last-minute requests to maximize revenue when demand is high.
• Transparent Pricing: Clearly communicate your prices to avoid confusion and build trust with customers.
• Profit Margin: Set a profit margin that allows for sustainable growth while being fair to customers.

What does it cost to start a party supply business?

Initiating a party supply business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $10800 for launching such an business. Please note, not all of these costs may be necessary to start up your party supply business.

Starting a party supply business requires careful selection of inventory to meet your customers' celebratory needs. From festive balloons to unique tableware, the right equipment and supplies will set the foundation for your success. Here are some tips to guide you:

• Research Your Market: Understand what your customers are looking for by researching current party trends and popular themes.
• Choose Quality Suppliers: Partner with reliable suppliers who offer quality products at competitive prices to maintain customer satisfaction and profit margins.
• Invest in Essentials: Stock up on essential items like tablecloths, cutlery, plates, cups, napkins, and decorations that cater to a variety of party types.
• Focus on Variety: Offer a wide range of supplies including different colors, themes, and age-appropriate items to cater to diverse clientele.
• Consider Rental Options: If feasible, include rental options for larger items such as tables, chairs, and party tents for bigger events.
• Stay Organized: Implement an inventory management system to keep track of your supplies and ensure timely restocking.
• Think Eco-Friendly: Include sustainable and biodegradable options to attract environmentally conscious customers.

List of software, tools and supplies needed to start a party supply business:

• Party Supply Software: around $50
• Computer with updated software: $500+
• Point-of-Sale System: $200-$1000
• Printer and Scanner: around $50
• Receipt Printer: around $150
• Inventory Tracking Spreadsheet Template: free
• Credit Card Processor : $30/month + transaction fee
• Party Supplies (plates, cups, balloons etc): depends on the supplier
• Table Covers and Chair Covers: around $50
• Marketing Materials (flyers, brochures): free to print, plus cost of brochure paper

Ensuring you have the right insurance for your party supply business is crucial to protect it from potential risks and liabilities. Different types of insurance coverage can safeguard against accidents, lawsuits, and unforeseen events. Here's what you need to consider:

• General Liability Insurance: This is essential for any business as it protects against common risks such as accidents or injuries that could occur to third parties as a result of your business operations.
• Property Insurance: If you own or lease a space for your inventory, property insurance can protect against damage to your physical assets from fire, theft, or natural disasters.
• Product Liability Insurance: If you're manufacturing or selling party supplies, this insurance can protect you if a product you sell is defective and causes harm or injury.
• Commercial Auto Insurance: If you use vehicles for delivery or transport of goods, this insurance can protect your business in case of an auto accident.
• Business Interruption Insurance: This can help you recover lost income and pay for operating expenses if your business is temporarily unable to operate due to a covered event.
• Workers' Compensation Insurance: If you have employees, this insurance is typically required by law and covers medical expenses and lost wages if they get injured on the job.

Launching a party supply business requires an effective marketing strategy to reach potential customers and create a buzz. Start by showcasing your unique supplies and services that can transform any event. Here are some key steps to kick off your marketing endeavors:

• Develop a strong brand identity with a memorable logo and color scheme that reflects the fun and excitement of parties.
• Create a user-friendly website with an online catalog, easy ordering system, and vibrant images of your products and past events.
• Utilize social media platforms like Instagram, Facebook, and Pinterest to share party inspiration, new arrivals, and special promotions.
• Offer introductory discounts or package deals to first-time customers to encourage them to try your services.
• Network with local event planners, venues, and caterers to create referral partnerships.
• Participate in community events, trade shows, and local markets to showcase your products and services in person.
• Collect customer testimonials and share them on your website and social media to build credibility and trust.
• Invest in targeted online advertising such as Google Ads or Facebook ads to reach specific demographics interested in party supplies.

Now that your party supply business is up and running, it's time to consider expansion to meet growing demand and increase your market share. Expanding your business can involve a variety of strategies, each with its own set of benefits and considerations. Here are some key steps to take when planning to grow your party supply enterprise:

• Explore e-commerce opportunities by setting up an online store, which can reach a wider customer base and offer a convenient shopping experience.
• Diversify your inventory with unique and trending items to attract a broader audience and stand out from the competition.
• Partner with event planners and local businesses to create mutually beneficial relationships and increase referrals.
• Invest in marketing campaigns to raise brand awareness, including social media advertising and email marketing.
• Consider franchising options to extend your brand to new locations without directly managing each store.
• Look into business loans or investors if additional funding is needed to support your expansion efforts.
• Always ensure that customer service remains a top priority, even as your business grows, to maintain a loyal customer base.

How To Write the Products and Services of a Business Plan

Crucial to business plans designed to secure funding or partnerships, your products and services section needs to showcase the quality, value, and benefits your business offers.

It’s not just a list of what your business is going to produce or provide. Instead, it outlines what you make or do, why your market needs your products or services, how you will compete with other companies selling the same or similar products or services, and what you will charge.

What To Include In The Products and Services Section

When looking at how to write the Products and Services section of your plan, be sure to include:

• A description of the products or services you offer or plan to offer
• A pricing model for your products or service, including how you set your prices and how you will make a profit. Include a breakdown of your Costs of Goods (COG) and Costs of Services (COS), what your contingency plan is in the event of a shift in market conditions, changes to laws, or availability of supplies, and your markup strategy.
• A comparison of your competitors’ products or services against yours, including a survey of what your competitors charge for similar items, along with a discussion explaining your pricing strategy
• Any sales literature or marketing materials you will use, including your website’s role in your sales efforts.
• An outline of how your orders will be processed or fulfilled.
• Any needs required to create or deliver your products (for example, up-to-date computer equipment)
• Any intellectual property (trademarks) or legal issues needing to be addressed.
• Future product or services

How to Make The Products & Service Section Appealing

Ideally, this section should elicit excitement in your reader and entice them to fund your business or work with you.

Here are few ways to accomplish this when deciding how to write the Products and Services section of your business plan:

• Showcase why there is a need for your product or service. Doing so is especially important if you’re introducing a new concept or invention or introducing your product or service into a place where there is currently no market for it.
• Emphasize the features of your product or service. How does it differ from that of your competitors in terms of make, shape, form, or appearance? Or price point? Or the level of service? What makes it unique?
• Focus on benefits. Once you’ve identified what features make your product unique, it’s vital to show how those features provide value to consumers. Is your product cheaper? Is your service faster? You want to clearly indicate how your product or service will fix a problem or improve a client or customer’s life.
• Be clear and concise and talk in layman’s terms. Avoid getting bogged down in lengthy descriptions or unnecessary details. Use bullet points and numbered lists to highlight important information. Don’t assume that your potential funders, partners, or customers have the same level of knowledge. Instead, consider the reader doesn’t know as much as you do when explaining your offering. Stay away from acronyms, jargon, industry buzzwords, and aim to be customer-oriented. If you have to use acronyms or jargon, always provide a definition.
• “ Why are you the best person to provide your products and services?”
• “What education or experience do you have that makes you qualified to provide them?”

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Don’t forget to include any testimonials, awards, or accolades you’ve received as well as any patents, copyrights, or trademarks you own or have applications for. Have you had the product tested or certified? Gotten approvals from industry experts? Including these details adds credibility to your overall business plan.

• Identify any liability issues: A liability lawsuit can significantly change the landscape of your business. Even if you don’t foresee any liability issues, include a statement to that effect rather than not address it at all. If there is a liability issue, real or apparent, acknowledge it and describe how you’ll deal with it. Let the reader know you will take all necessary steps to protect your business, your products, and yourself from litigation.
• Be precise in your product or service descriptions. For example, you don’t want only to say, “I sell shoes.” You want instead to say, “I sell leather boots targeted at women aged 16 – 25 who buy online”. Wherever possible, also include pictures of your products.

Questions to Answer in Your Products & Services Section

• Are your products or services in development or existing and on the market?
• If they currently aren’t on the market, what is the timeline for bringing them to it? Do you have a prototype?
• What makes your product or service different? What are your competitive advantages? What are your competitive disadvantages, and how will you overcome them?
• Is your pricing an issue? Are your operating costs low enough to allow for a reasonable profit margin?
• Where are you acquiring your products? Do you manufacture them, or do you assemble them using third-party components? Do you purchase from suppliers or wholesalers? If demand increases, do you have a steady supply of products available?
• How are you going to sell your product or service? Will it be available online or in retail stores? Do you have any vendors lined up?

Once you’ve answered these questions, stop and reread the section. Ask yourself if you’ve tried to answer why a client would want your product or service. Consider whether your offering will make your customers’ lives better or more accretive.

Examine the need you are fulfilling or the problem you are solving. More importantly, does the section give the reader a clear understanding of why you’re in business, what you sell, and how you differ from your competitors?

After completing this exercise, if you’re still unsure or would like more support about how to write the Products and Services section of your business plan, we invite you to reach out to our team at Bsbcon.

We are available to help small-medium-sized enterprises worldwide tackle their most critical challenges and capture their most significant opportunities.  We make a point to understand new trends, digital options, and partnerships that help our clients today and tomorrow. Call us toll-free at 1(888) 880-1898, write [email protected] , or fill out our contact form here .

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Goods Delivery Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Transportation Industry » Courier Company

Are you about starting a delivery service company? If YES, here is a complete sample goods delivery service business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a goods delivery service business. We also took it further by analyzing and drafting a sample goods delivery service marketing plan template backed up by actionable guerrilla marketing ideas for delivery service businesses. So let’s proceed to the business planning section.

The goods delivery business has existed for a long while but was mostly under the federal government till private individuals decided to revolutionize delivery. The goods delivery business actually came gained more prominence during the internet boom which saw more businesses going online in order to try and reach more of their target market.

Small and medium scale businesses also joined the internet fray and therefore the need for delivery businesses that would ensure that customers of small, medium and even large scale businesses got what they ordered for, regardless of where they lived.

Even though this business might not be capital intensive especially if you intend to exclude several kinds of deliveries or even start on a lower scale, there are still certain factors you would need to consider before starting this business.

For instance, hiring a business consultant who has the required industry knowledge to help point out obstacles you might likely face and how you can overcome them is very important. Below is a sample goods delivery business plan;

A Sample Goods Delivery Service Business Plan Template

1. industry overview.

As at 1999, homes with an internet connection were less than 50 percent, and the use of smart phones weren’t even in the picture, which made the delivery business a near impossible one to run as delivery fees most times surpassed ordering fees for customers.

However, the rise of new technology that allowed for connectivity has seen a boost in the delivery business industry. Technology helped reduce costs for end user customer by employing algorithms to ensure that not only were cists reduced but that customers could also get their goods delivered same day as when they ordered it.

During the third quarter of 2013, a lot of same day delivery businesses started up and spread like wildfire. Today, a lot of goods delivery businesses also offer same day deliveries to customers raking in more money from this niche.

The goods delivery business is an industry that has been projected to grow more than 9 percent annually and is targeted to reach $343 billion by 2022, this is as traditional postal delivery companies are facing challenges in meeting target revenue.

According to statistics, delivery companies worldwide are scrambling to meet up with consumer demands and are also striving to remain proactive so as to meet future demands that are expected to expand the present capacity of delivery businesses as more delivery companies will be forced to focus on Business to Consumer (B2C).

Business to Consumer (B2C) is expected to grow revenue for goods delivery business annually at 6 percent. The growth is due to the fact that most retailers (about 80 percent) have seen a positive impact on customer satisfaction especially when there are multiple delivery options available. This fact has seen 77 percent of retailers increase their investment in delivery services.

Consumers now have the upper hand as regards what delivery options they prefer, this is why most goods delivery businesses are now focusing more on their recipient customers than those they make deliveries for. Consumers now have the option of tracking their goods and determining when it will get to them.

In the united states of America, there has been an emergence of regional carriers who have provided customers with cheaper and faster delivery options than the national carriers. The advantage with regional carriers is that they are likely to get delivery contracts from major customers.

The industry that has really helped the delivery industry is the e-commerce industry. The e-commerce market has generated huge volumes and is expected to generate about $2.4 trillion by 2018.

There are new delivery options that have been launched by several entrants such as using different means – taxi, bicycle, motorcycle, foot messengers and even the use of an app that allows ordinary people do the delivery – to bring innovation to the delivery marketplace.

2. Executive Summary

Quick-time goods delivery Inc is a business that has been established in Louisville – Kentucky and is reputed to be amongst the top three leading delivery brands in the United States of America by the year 2030. We intend to cater to both corporate and domestic clients, and will strive to meet all the demands of our customers.

Our goods delivery business has been established not only to generate revenue and make profit but also to compete favorably with other goods delivery businesses in Louisville – Kentucky and in the United States of America. In order to compete with our competitors, we have several competitive advantage strategies at hand to ensure that we remain proactive and achieve our intended goals and objectives.

We are willing to go the extra mile in ensuring that we invest in the best and experienced hands to help bring our business to the status that is in line with our goals and objectives. We have laid down business structures that will enable us source for and get the best professionals.

Our delivery drivers and dispatchers have been trained on how to attend to customers and what to do if a client is proving difficult. We have several strategies laid down so that we are not thrown back when there is an obstacle but are prepared for it.

Our customer care executives have been trained to be highly perceptive to the wants and needs of our customers, and also remain updated as regards the delivery industry so as to make informed comments to our customers on behalf of the company.

The delivery business industry is a huge one and not one where demand is likely to die anytime soon, and so this is a business that would continue to boom for a long time, and we are well positioned to tap into this huge market.

We intend to make sure our employees work in a conducive environment and that they earn the best pay as can be gotten in similar start-ups here in Louisville – Kentucky. Also, we intend to ensure that our employees get the best welfare packages that can be obtained in the industry this is so they could remain motivated.

Quick-time Goods Delivery Inc is owned and operated by Mike pence and his immediate family members. Mike Pence is a college graduate but has several years of experience in the delivery industry, as he has worked in all kinds of position in several delivery businesses and is best suited to bring the business to the required standard.

3. Our Products and Services

Quick-time Goods Delivery Inc intends to deliver all kinds of goods to our various customers with the exception of certain goods that are not legally permissible under the laws of Kentucky and that of the United States of America.

The goods delivery business is not a capital intensive business and can be started on any budget that the entrepreneur wishes for. However, to ensure that the business grows and sustains itself, we intend to offer other services in addition to our core service – goods delivery.

These other services will boost the bottom line of the business and cause us to achieve our intended sales projections on time. Some of the services we intend to offer at Quick-time Goods Delivery Inc. are:

• Delivery of different types of goods to our various customers
• Consultancy services

4. Our Mission and Vision Statement

• Our vision at Quick-time is to be the best and only preferred goods delivery business in the Kentucky and in the amongst the top three goods delivery business in the United States of America by 2030.
• In order to achieve being the best and preferred goods delivery business, we intend to perfect our business structure and also put several modalities in place to ensure that we achieve our goals and objectives.

Our Business Structure

At Quick-time Goods Delivery Inc, we know how important starting off on the right foot is as we believe, laying the right foundation at the beginning would enable us easily achieve our set goals and target. This is why we ensured that we got the right hands that will enable us achieve our set goals.

Our employees are professionals who understand the business thoroughly and know what it takes to take us to the height we intend to achieve.

All our employees are all assigned to the right available positions and are allowed the freedom to be able to draft strategies and implements plans that would see the company achieve its vision. Our employees are well paid and have one of the best salary structures in the goods delivery business industry.

Because this is a business that deals constantly with customers, our employees are highly trained in customer care and are able to provide excellent customer care to all our customers.

Knowing our important it is for our employees to remain satisfied and productive at work, we have ensured that they work in a conducive environment and that they have good welfare packages. Below is the business structure that we intend to build at Quick-time Goods Delivery Inc;

Chief Executive Officer

Marketing Executives

Logistics Manager

Human Resources and Admin Manager

Customer Service Executives

Delivery Drivers

Storage Manager

Security Guard

5. Job Roles and Responsibilities

• Drafts the overall corporate strategy for the company
• Makes strategic decision on behalf of the company
• Drafts a workable budget for the company
• Responsible for drafting and implementing marketing strategies that would allow the industry penetrate the large market
• In charge of placing adverts in relevant places to promote the business and help attract customers
• Carries out constant reviews on policies and modifies or remove ineffective marketing strategies
• In charge of planning the best routes for which goods can be delivered to customers on time
• Drafts and implements policies that would see the delivery department improve
• In charge or recruiting and conducting orientation for new employees
• In charge of employees welfare, and constantly carries out performance appraisals on customers
• Ensures that all the administrative functions in the business are running smoothly and undergo constant review
• Responsible for attending to clients and taking orders on behalf of the company
• Responsible for answering inquiries and ensuring that all complaints are promptly resolved
• Must remain be knowledgeable and remain updated about the delivery business industry
• Responsible for preparing all the financial records and statements of the companies
• In charge of preparing tax on behalf of the company and submitting tax documents to the relevant authorities
• Ensures that balances between the bank and company are reconciled at the end of the month.
• Oversees the loading and offloading of goods and parcels and ensures they tally with what is documented
• Ensures that all goods reach its accurate destination safely and on time
• Responsible for carrying out light maintenance on the delivery van
• Responsible and accountable for all goods under care
• Ensures that store is kept clean and secured at all times
• Carries a routine check for all packages and documents all goods under care
• Responsible for ensuring that the area in and around work is kept secure at all times
• Ensures that cargoes brought into the business premises are properly screened
• Scrutinizes incoming and outgoing items and people
• Responsible for keeping the premises clean especially after work hours
• Cleans up the rest room for employees and visitors
• Stock up on cleaning supplies, and report out of stock supplies to the manager

6. SWOT Analysis

In order to know if our business would thrive, we hired a reputable business consultant here in Louisville to look through our business concept and help conduct a SWOT ( Strength, Weakness, Opportunities, and Threats ) analysis that would determine if we were in position to compete favorably against our competitors and if our business would survive the threats that are likely to crop up during the time of starting or running the goods delivery business.

The SWOT analysis was not only conducted for our location here in Louisville but also as regards the whole of the United States of America. Asides the location, the industry as a whole and several other factors were put into consideration. The of the SWOT analysis that was conducted on behalf of Quick-time Goods Delivery Inc is as follows;

Our strengths lies on the fact that we would be offering our customers a unique goods delivery service unlike that they have ever seen, as we intend to become the preferred brand in Louisville – Kentucky. We have a well designed business structure that will ensure that our vision is achieved as we have recruited the best employees in the field to help achieve this vision.

Our employees are not only competent but also have the required experience necessary to ensure that we achieve our goals and objectives.

Also, the fact that we are located in Louisville – Kentucky is another added strength as our position is convenient for many of the customers in our target market. Also, our Chief Executive Officer, Mike Pence has a vast and also the necessary expertise to see that the corporate vision and objectives of the company is achieved.

Our weakness is in the fact that we are not the only goods delivery business as there are several others in Louisville – Kentucky offering the same services that we are offering and to the same target market. However, we are positive that our strategies will afford us the ability to compete favorably with other established goods delivery businesses in Louisville – Kentucky.

• Opportunities

The opportunities this business affords us are boundless as the numbers of people that shop online or buy products via phones are increasing by the day. This therefore means that the demand for goods delivery service will continually increase.

Facing threats is not a new thing to any business, and so we know that during the course of running or starting the business, we are likely to face several threats such as having a new competitor in the same location where we intend to start our business or a downturn of the economy which will see less people demanding for our services. However, we have several laid down strategies that will ensure that we overcome any threats.

7. MARKET ANALYSIS

• Market Trends

The goods delivery business is a huge business that has seen a positive growth in the service industry, this is because more people now prefer to shop online or buy products through their phones.

Also, the goods delivery business has allowed more businesses to penetrate their target market as goods can now be delivered to these customers regardless of where they stay via the businesses such as the delivery business. Customers are willing to pay for this extra charge because it is more convenient to have the goods delivered to whatever place of their convenience.

Another trend for goods delivery business is the trend of timed delivery. Customers no longer have to wait a long time to receive their goods as they can receive it within 24 hours. Delivery businesses that offer express delivery have also cropped up therefore raising the bars in the delivery industry.

However, regardless of what mode the customer chooses, all they want is that their goods are delivered at the right time and place and in the right conditions. The reason for the spike in delivery businesses in the service industry is the internet.

The internet is now being used towards ensuring that innovative entrepreneurs reach out to customers – private and commercial has eased most of the stress of conventional publicity for these entrepreneurs. Websites and social media platforms are being used to lure customers and also create awareness about the business.

8. Our Target Market

The target market for the goods delivery business is very huge as there are a number of people that require the services of a delivery company.

This therefore means that the target market is huge and cannot be limited to a certain location or set of people. Also, our location in Louisville – Kentucky is very strategic and affords us the opportunity of being able to cater to a large number of customers.

Asides from being in a strategic location, our website has been Search Engine Optimized (SEO) to be able to pop out during searches for goods delivery businesses.

In conducting a thorough market research, we were able to find out what our target market would be expecting from us in terms of offering the best delivery services. The target market that Quick-time Goods Delivery Inc. would be offering goods delivery services for and to are;

• Manufacturing Companies
• Restaurants
• Printing press
• Publishing houses
• Clubs and bars
• Salons and beauty shops
• Private individuals
• Corporate Executives
• Celebrities
• Everyone in our target market who would require our services

Our Competitive Advantage

Our aim in starting Quick-time Goods Delivery Inc is to ensure that we are the preferred goods delivery in Louisville – Kentucky, and also amongst the top three brands in the United States of America. To achieve this vision, we have laid out strategies that will ensure that we have competitive advantage over those we intend to compete with in the delivery business industry.

First off, we intend to get two delivery vans that will ensure that customers get tier goods on time. Our delivery drivers will have a Point of Sale (POS) Machine for customers who do not have cash and didn’t pay in advance but intends to pay once the goods have been delivered. This service is the first of its kind here in Louisville – Kentucky.

Another competitive advantage we intend to have over our competitors is in ensuring that we hire only competent employees who not only have the experience but are also attuned to the vision of the company in becoming the best brand here in Louisville – Kentucky and amongst the top 3 in the United States of America.

We intend to train our employees in customer care service so that they effectively communicate our brand whenever they represent us to customers. We will ensure that we not only meet the expectations of our customers but also exceed it as well as we will continually review our customer service strategies to ensure that we remain on top of our game.

Finally, our employees will have the best welfare packages that can be gotten amongst similar start-ups here in Louisville – Kentucky. We intend to ensure that their skills are constantly honed through various training that will improve their careers and also their productivity for our company.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Due to the fact that the goods delivery business is a service based business, and might not seem like it has several sources of income, we have laid down strategies that would see us not only earning from delivery of goods but from other sources as well.

However at Quick-time Goods Delivery Inc business, we intend to ensure that all our sources of income are under the legal and permissible laws of the United States of America. Quick-time Goods Delivery Inc. intends to generate income from these several sources;

10. Sales Forecast

The goods delivery business is not likely to fade into oblivion anytime in the future and instead will see a likely surge in demand as more businesses spring up and more people shop online through their PCs, tablets or smart phones.

Our target is to ensure that we generate our target income within the first year of operation as our strategic location in Louisville – Kentucky is pivotal to this projection. Also, regardless of the fact that we might offer reduced fares during the first three months of running the business, we are confident of meeting our target especially as we have laid down plans that will see to this.

We have in collaboration with a reputable business consultant here in Louisville – Kentucky critically examined the goods delivery business and having analyzed our chances of survival and growth in this competitive industry has been able to come up with the following sales forecast.

The sales projection that was conducted on behalf of Quick-time Goods Delivery Inc were based on several assumptions that are peculiar to similar businesses in same location; Louisville – Kentucky. Below is the sales projection that was conducted on our behalf;

• First Fiscal Year-: $300,000
• Second Fiscal Year-: $600,000
• Third Fiscal Year-: $1,200,000

N.B: The above sales projection was done based on certain factors that are obtainable in the industry and on several assumptions such as the rate of people willing to shop online, the state of the economy, government policies, and the arrival of a similar competitor to same location.

This therefore means that the sales projection might be lower or higher if any of the above assumptions change either positively or negatively.

• Marketing Strategy and Sales Strategy

Before starting off our goods delivery business, we intend to ensure that our marketing and sales strategies have been thoroughly reviewed. During the course of running the business, we also intend to ensure that we carry out a continuous review of our strategies, this is because we know how important marketing is to any organization – either profit or non-profit.

Carrying out a sales forecast helped us determine who our likely target market were and therefore helped in determining the best marketing strategies to use in penetrating the market and also attracting customers to our goods delivery business in Louisville – Kentucky as well as the whole of the United States of America.

Our marketing executives have been empowered to continuously carry out research on the target market as well as tweak or remove marketing strategies that are not regarded as effective during the course of running the business.

The strategies that would be developed by our marketing executives will be one that will help us catch the attention and eventually win a larger percentage of the market not only in Louisville – Kentucky, but in the whole of the United States of America as well.

In order to ensure that customers outside Louisville – Kentucky know about Quick-time Goods Delivery Inc business, we intend to deploy several strategies on the internet to enable us achieve this.

Our website will not only be interactive and user friendly, it will also be well designed to appear on top searches for customers looking for the best delivery business. Asides, our website, we intend to use social media platforms such as Facebook and Twitter to engage and attract more customers to our business.

Finally, we at Quick-time Goods delivery Inc business intends to use the following marketing strategy in getting more customers for our goods delivery business;

• Advertise our goods delivery business in popular online forums, blogs and websites
• Place adverts in local newspapers, and on radio and television stations
• Encourage our loyal customers to refer us to others
• Engage in direct marketing
• List our business in offline directories as well as online directories
• Use the internet – website – to market our services, as well as social media platforms such as Facebook, Twitter, Google Hangout and LinkedIn.

11. Publicity and Advertising Strategy

Every business either new or old knows how wise it is to court publicity. Publicity is a two edged sword as you get to create awareness for your business while also generating revenue.

Even though we have laid down strategies that intends to make us stand out from the other goods delivery businesses we would be competing with, we know how important publicity is if we intend to achieve our goals and objectives and succeed as a business.

Louisville – Kentucky is a perfect location for our goods delivery business and the perfect launching pad for our publicity strategies, before we eventually venture out to other cities and spread throughout the United States of America.

Quick-time Goods Delivery Inc. intends to create a unique logo and also have a unique color that stands us out of the crowd. Some of the publicity and advertising strategies we at Quick-time Goods Delivery Inc intend to deploy are;

• Ensure that we create customized tee-shirts for all our workers especially our drivers
• Emblazon our delivery trucks with our unique logo and color
• Place adverts in local newspapers, magazines and on radio and television stations
• Distribute our handbills and pin our fliers in target locations
• Put up flexi banners in strategic locations so that our target customers can see and patronize our services
• Use our social media platforms – Facebook and Twitter – to promote our brand
• Send out cold e-mails to prospective customers
• Send out newsletters to customers – both potential and existing

12. Our Pricing Strategy

The success of a business can be determined by the kind of prices it sets. While a business will need to set the prices that are deemed fair by its customers, it shouldn’t set a price that will cause a price war with its competitors or one that will enable the business run at a loss.

Determining the fair price for a service oriented business can be tricky but any serious entrepreneur knows that regardless of the business being run, any set price or rate should cover overhead and operating expenses and ensures that the business makes profit as it should.

Since we are relatively new in the market, we also know that it is necessary that we set a price that will allow our customers patronize our services and for this purpose, we would offer our services at a reduced rate for the first 6 months of operation. We however would not lower the prices too much so as not to have our business crumble.

• Payment Options

Due to the fact that this is a service oriented business, we are aware that our customers would prefer several means of being able to pay for our services and it is due to this fact that we have come up with different payment options intended to suit whatever style our customers would want. Below are the payment options that we intend to make available to all our various customers;

• Cash payment
• Payment via check
• Payment via Point of Sale (POS) Machine
• Payment via credit card
• Payment via online bank transfer

The options chosen above were done with the help of a trusted and reputable bank, and will be available to all our customers without hitches.

13. Startup Expenditure (Budget)

The goods delivery business can only be capital intensive depending on the area the entrepreneur wants to focus on. However, in starting a standard goods delivery business, there are certain expenses that the entrepreneur is supposed to spend the bulk of the capital on.

The expenses include all overhead expenses and several operating expenses such as bill payments and employee salaries. Therefore the key areas where we intend to spend the bulk of our start-up capital on are;

• Business incorporation fees – $750
• Business licenses and special permits as well as certain accounting software – $1,550
• Cost of hiring a business consultant – $1,000
• Marketing expenses (promotion expenses for grand opening and regular marketing) – $5,000
• Insurance (general liability and workers’ compensation) – $2,000
• Operational expenses for the first 6 months which includes employees salaries and bill payments – $75,000
• Cost of storage facilities and hardware (racks, shelves, bin, surveillance cameras) – $4,000
• Administrative expenses (stationeries, furniture, computer, phone, printer) – $5,200
• Cost of purchasing two goods delivery van – $90,000
• Cost of launching a website – $500
• Cost of grand opening party – $3,000
• Miscellaneous – $2,000

From the above estimation, we would need a total of $200,000 in order to successfully start-up our goods delivery business in Louisville – Kentucky. The amount covers the payment of our employees’ salaries as well as other bills for a period of 6 months.

Generating Funding / Startup Capital for Quick-time Goods Delivery Business

Quick-time Goods Delivery Inc is a business owned and run by college graduate, Mike Pence and his family. This is a business that the family has decided to start and run and so we would not be generating funds from external investors such as venture capitalists, as we would not want outside interference for now.

Therefore the areas where we intend to source for start-up capitals are;

• Using our savings and sale of stocks to generate capital
• Seeking for soft loans from extended family members
• Applying for loan from the bank

N.B: We were able to generate about $50,000 from our joint savings and sale of personal stocks. We got a soft loan of $50,000 from both of our parents, and the bank which we applied for a $100,000 loan has credited our account with the sum, which means that we are ready for business.

14. Sustainability and Expansion Strategy

Every business is established to make profit and it is from this profit that a business is sustained and then expanded. However to make profit and remain sustained, there are several factors that must be put into consideration, such as the business structure , the number of loyal customers and the investment strategy.

The major reason of starting Quick-time Goods Delivery Inc is so as to build a business that can offer a unique delivery service whilst making profit and sustaining itself from the revenue generated. We do not plan on seeking for external private investors as we have laid down plans to ensure that we generate revenue and eventually make profit within a year of operation.

Having the right employees and business structure is very important to us and so our employees are not only experienced but competent as well. Our employees know what is needed to take our business to the very top.

Asides from making sure that our employees are paid right, we also intend to ensure that they are constantly trained so as to keep them updated skill-wise. Also, employees who perform their duties diligently and constantly promote the brand of the business will be motivated via incentives and fringe benefits.

Ensuring that our customers are treated right is very important to us because we know that without our customers our business would crumble. We intend to give our customers an excellent customer service and offer incentives on certain days or to loyal customers to ensure that they stick with our brand.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting feasibility studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• writing of business plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
• Purchase of trucks: Completed

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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.

The growth opportunities for Sportsuchtig are many, including widening the product offerings to include other sports, enhancing the Website for ease of use and presentation, optimizing Web search engine results, relocating the retail store to a location that can tap into the fast developing residential areas in the metropolitan region, staffing a sales force to aggressively pursue team uniform sales, and implementing a consistent, integrated marketing plan.

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.

We believe that Sportsuchtig, with its multiple channels of operation – retail and internet stores – is well positioned to strategically attack these markets.  We will first look to increase growth in the market segments we currently serve (baseball, softball) and then look to aggressively penetrate and increase sales to other sports participant segments, especially those that cater to the athletic tastes of aging baby boomers.  There is great opportunity for growth in the “customer type” segments; we will initially look to increase our exposure and products to these segments, especially League Representatives and Independent Team Coaches in the metropolitan area.  We will approach the 256 million participants nationwide through the internet store, which will be enhanced with an improved user experience and an aggressive Web marketing strategy.

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.

The “customer type” segments are currently-under served by Sportsuchtig. Although the company does have some relationships with various leagues and organizations – such as the U.S.S.A. (U.S. Softball Association) – there is room for significant segment penetration with the addition of targeted sales efforts and the staffing of a sales team.

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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A Roadmap for Responsible Business Conduct

Three years ago, a Dalit woman was murdered by her supervisor at a garment factory in India. Her co-workers did not wait for the company to respond. They organized collectively and engaged major global fashion companies, developing an enforceable agreement between the buying companies, the factories and their trade union to identify, remedy and prevent gender-based violence and harassment in their workplaces.

Known as the Dindigul agreement , the initiative established independent monitoring entities and trained female shop floor monitors with special retaliation protections to take immediate action on cases of gender-based violence and harassment. The agreement ensured that there were trusted and reliable grievance mechanisms in place. It also held companies accountable to resolving issues and providing workers access to remedy.

By 2026, companies are projected to spend over $27 billion a year on voluntary social audits to report on labor abuses in their supply chains. Yet, no audit would have stopped the tragedy in India. And in 2013, the Rana Plaza factory collapsed in Bangladesh , killing over 1,100 workers – days after an audit found no problems in the building. Voluntary third-party audits have all too often shown their limitations.

We believe businesses can and must do better. That’s why we’ve released the Responsible Business Conduct and Labor Rights InfoHub , a one-stop shop for information, guidance and tools from the U.S. government and international organizations to support the private sector in integrating labor rights and responsible business practices in their operations and across their global supply chains.

This comes as part of the U.S. government’s second National Action Plan on Responsible Business Conduct, founded on the Biden-Harris administration’s bedrock belief that businesses can have success while doing good, and that governments should create the conditions for responsible business conduct to take place.

The InfoHub provides companies with the knowledge and tools they need to comply with federal statutes, agency rules and trade provisions around responsible business and labor rights. It also makes government reports and advisories easily accessible, so businesses can stay up to date on emerging risks in priority sectors.

The site complements existing due diligence tools the Bureau of International Labor Affairs has created, such as Comply Chain and our List of Goods Produced by Child Labor or Forced Labor . The InfoHub also builds upon ILAB’s commitment to amplifying worker voice as a critical component of worker-centered due diligence.

We urge all stakeholders — from civil society to the C-suite — to use these resources, tools and legal standards to engage in meaningful action, strengthen their due diligence and ensure workers in their supply chains can exercise their internationally recognized rights without fear of retaliation.

We are entering a new era of corporate compliance, one where binding commitments to support worker voice, as we see in the Dindigul agreement, emerge as powerful and viable tools. The businesses at the top of global supply chains have the power to make these agreements widespread and effective and to ensure that workers are at the center of these new processes and institutions. This requires not just standing up new processes to map and track impacts within supply chains, but on concrete, positive outcomes for workers. It requires not just setting up hotlines, apps or suggestion boxes for workers but respecting their rights to organize and bargain collectively.

Through the Responsible Business Conduct and Labor Rights InfoHub and other resources, the U.S. Department of Labor is providing companies with the tools to chart a path forward on meaningful due diligence and bolster the rights and protections of all workers.

Thea Lee is the deputy undersecretary for international affairs at the U.S. Department of Labor. Follow ILAB on X/Twitter at @ILAB_DOL and on LinkedIn .

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See how the Key Bridge collapse will disrupt the supply of cars, coal and tofu

The port of baltimore is the top port in the nation for automobile shipments.

The collapse of the Francis Scott Key Bridge in Baltimore on Tuesday cut off access to much of the city’s port — causing a suspension of vessel traffic that will disrupt a key trade lane and threaten to further tangle already-stressed supply chains.

The Port of Baltimore was the 17th largest in the nation by total tons in 2021 and an important artery for the movement of autos, construction machinery and coal. It handled 52.3 million tons of foreign cargo worth nearly $81 billion in 2023, according to Maryland data, and creates more than 15,000 jobs.

Top 10 imports and exports to the Port

of Baltimore in 2023

2023 total: $59B

electronics

commodities

2023 total: $22B

Iron, steel

Seeds, grains,

fruits, plants

Air and space

craft, parts

Coal, oil and

natural gas

Note: not seasonally adjusted. Vehicles excluding railways

and tramways. Nickel, aluminium, paper and wood include

derivatives of those commodities.

Source: Census Bureau

Top 10 imports and exports to the Port of Baltimore in 2023

Electronic machinery

and electronics

farmwork and

construction

Iron and steel

spacecraft, parts

Note: not seasonally adjusted. Vehicles excluding railways and tramways. Nickel, aluminium,

paper and wood include derivatives of those commodities.

spacecraft,

bedding, lights

Note: not seasonally adjusted. Vehicles excluding railways and tramways. Nickel, aluminium, paper and wood include.

On Tuesday, the Port of Baltimore said that vessel traffic would be suspended in and out of the port until further notice, but trucks would still be processed in its terminals.

“Baltimore’s not one of the biggest ports in the United States, but it’s a good moderate-sized port,” said Campbell University maritime historian Sal Mercogliano. It has five public and 12 private terminals to handle port traffic.

North Locust

Point Marine

Ports and terminals

Baltimore Port

Truck Plaza

Seagirt Marine

Dundalk Marine

Shipping channels

CSX Coal Pier

Francis Scott

Hawkins Point

Marine Terminal

“It does cars, it does bulk carriers, it does containers, it does passengers,” said Mercogliano. “So this is going to be a big impact.”

Baltimore’s the top port in the nation for automobile shipments, having imported and exported more than 750,000 vehicles in 2022, according to the Alliance for Automotive Innovation, an industry group.

About three-quarters of the autos that travel through the port are imports, dominated by big-name brands, including Mazda and Mercedes-Benz. Most of the top companies have enough inventory sitting on U.S. dealer lots that any immediate impact on supply is unlikely, said Ambrose Conroy, chief executive of the consulting firm Seraph.

“It’s too early to say what impact this incident will have on the auto business, but there will certainly be a disruption,” said John Bozzella, president of the Alliance for Automotive Innovation.

The port ranked second in the country for exporting coal last year, according to the state of Maryland. But it’s not a huge global supplier of thermal coal, and the disruption can likely be made up by replacements from Australia or Indonesia if needed, said Alexis Ellender, lead analyst at global trade intelligence company Kpler.

Baltimore is also a niche port for the soybean trade, focusing mostly on high-value soy used in tofu, miso, tempeh and organic products, according to Mike Steenhoek, executive director of the Soy Transportation Coalition. Most of those exports are destined for Asia, but Steenhoek doesn’t expect a big spike in tofu prices because several other U.S. ports also ship this sort of soy, including Norfolk, Va., Savannah, Ga. and Charleston, S.C.

All East Coast ports have become more important in recent years as the United States attempts to boost its trade with friendly nations and reduce geopolitical risks related to trade with China, which generally happens via West Coast ports, said Tinglong Dai, a Johns Hopkins Carey Business School professor and expert on global supply chains.

Baltimore port’s suspension is “one more disruption in an already-stressed system” for the global supply chain, said Abe Eshkenazi, chief executive of the Association for Supply Chain Management. Cargo will now have to be rerouted to other ports, which means figuring out where there is enough capacity to move things.

East Coast ports and shipping density

Ship traffic

Philadelphia

of Baltimore

5th-largest port

on the East Coast

for foreign trade

Newport News

Morehead City

East Coast ports

and shipping density

PENNSYLVANIA

The Port of Baltimore

5th-largest port on the

East Coast for foreign trade

Coal shipments will need to be rerouted to other ports, Kpler’s Ellender said. And Ryan Petersen, chief executive of the logistics company Flexport, posted on X that the company currently has 800 containers on a slew of ships heading for the port that will need to be rerouted, likely to Philadelphia or Norfolk.

The biggest problem Steenhoek sees from Baltimore’s shuttering is the knock-on effect to other ports. Many ships stuck in the port were destined to make stops at other U.S. ports to load and unload goods before heading overseas, a complicated logistical dance now scrambled by the bridge collapse.

“It just shows how you throw a wrench in the supply chain and the impact is not just confined to that one port,” Steenhoek said.

Tim Meko, Justine McDaniel and David J. Lynch contributed to this report. Editing by Kate Rabinowitz and Karly Domb Sadof.

Baltimore bridge collapse

How it happened: Baltimore’s Francis Scott Key Bridge collapsed after being hit by a cargo ship . The container ship lost power shortly before hitting the bridge, Maryland Gov. Wes Moore (D) said. Video shows the bridge collapse in under 40 seconds.

Victims: Divers have recovered the bodies of two construction workers , officials said. They were fathers, husbands and hard workers . A mayday call from the ship prompted first responders to shut down traffic on the four-lane bridge, saving lives.

Economic impact: The collapse of the bridge severed ocean links to the Port of Baltimore, which provides about 20,000 jobs to the area . See how the collapse will disrupt the supply of cars, coal and other goods .

Rebuilding: The bridge, built in the 1970s , will probably take years and cost hundreds of millions of dollars to rebuild , experts said.

• Baltimore bridge collapse: Crane arrives at crash site to aid cleanup March 29, 2024 Baltimore bridge collapse: Crane arrives at crash site to aid cleanup March 29, 2024
• Inside the massive three-step cleanup of Baltimore’s Key Bridge April 5, 2024 Inside the massive three-step cleanup of Baltimore’s Key Bridge April 5, 2024
• Wes Moore envisioned economic revival. Then the Key Bridge collapsed. April 1, 2024 Wes Moore envisioned economic revival. Then the Key Bridge collapsed. April 1, 2024

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St. Petersburg industrial park to break ground

• March 29, 2022

Gandy Blvd N, St. Petersburg, FL 33702

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Building Description

• ​622,259 SF Class A industrial development
• ​Six rear-load buildings
• ​Customizable spaces ranging from 20,000 to 150,000 SF
• ​Visibility from I-275
• ​Located in the Gateway Area of Pinellas County

The 622,270 sq ft Gateway Logistics Center will begin its 1st phase of development with three buildings of industrial space totaling 290,000 sq ft.

The 75-acare park is the central component of a 93-acre mixed-use development on land recently sold by tech company Jabil Inc. Greystar for $32 million.

Gateway Logistics Center premier industrial park sells.

DALLAS, Jan. 5, 2021  –  JLL  Capital Markets announced today that it has closed the sale of Gateway Logistics Center, a five-building, 1.4-million-square-foot, Class A++, state-of-the-art industrial park situated at the gateway to Dallas-Fort Worth International Airport in Irving, Texas.

JLL worked on behalf of the seller, Bandera Ventures and Long Wharf Capital. BentallGreenOak acquired the industrial park on behalf on an institutional investor.

Developed by the seller, Gateway Logistics Center was completed in 2019 and is leased to a roster of household name tenants. The property is located near the south entrance of DFW Airport in one of the most desirable industrial submarkets in the Dallas-Fort Worth area.

The JLL Capital Markets Investment Advisory team representing the seller was led by Managing Director Dustin Volz, Senior Director Stephen Bailey, Executive Managing Director Jody Thornton and Analysts Zach Riebe and Wells Waller.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources on JLL, please visit our  newsroom .

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Baltimore Port: What impact will bridge collapse have on shipping?

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Current status of cargo ships inside port, cruise ships, london metal exchange warehouses, bunker fuel.

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Government-backed Pellegrini on course to win Slovak presidential election

At stake is whether Prime Minister Robert Fico, who took power in October for the fourth time, will get an ally in the presidential palace or an opponent who could challenge his pro-Russian stance and plans to reform criminal law and the media.

Airline passengers in parts of the United Kingdom and Ireland faced travel disruption at airports on Saturday due to flight cancellations as a storm swept across both countries and left thousands of Irish homes with power outages.

Why buying a home isn't likely to get much cheaper even under Biden's housing plan

• Biden has a plan to make housing more affordable, but prices might be stuck in the stratosphere. 
• Biden's proposals may not be enough to tackle the housing shortage that's pushing up prices.
• It will take years for more supply to slow the pace of home price growth, economists say.

Americans waiting for the housing affordability crisis to ease might be waiting a long time, even with President Joe Biden's proposals to open up the market to more Americans, real estate experts told Business Insider.

That's not to say Biden's list of proposals to lower housing costs won't have an impact, according to Daryl Fairweather, the chief economist of the real estate listings site Redfin. 

But some ideas — like tax credits for first-time buyers — do little to tackle the housing shortage  and may end up stimulating more demand. That means any relief is unlikely to come in the form of bringing down sky-high prices. 

"The effect on the housing affordability crisis is going to be muted. It's not going to be noticeable even in the long run," Fairweather said.

Low housing inventory is at the heart of the affordability issue. A lack of new construction of single-family homes since the financial crisis combined with the "lock-in" effect of existing homeowners staying put to hold on to their low mortgage rate has created a big supply-demand imbalance. 

Some of Biden's housing affordability measures would fuel demand further at a time when supply is still historically tight, according to Lawrence Yun, the chief economist of NAR.

While the president's initiatives could help lower-income families get into the housing market, it could also exacerbate the supply-demand imbalance, putting upwards pressure on home prices overall.

Related stories

"The current situation is really about supply," Yun said. 

Addressing a dearth of housing

According to Fairweather, the only initiatives that will make a long-lasting difference in home affordability are Biden's efforts to build more houses . The President is pushing for Congress to pass legislation to build or renovate around 2 million homes, which would help alleviate the lack of inventory .

Estimates of America's housing shortage range from 3 million homes to as many as 6 million .

The Biden administration is also offering a one-year $10,000 tax credit to homeowners who are willing to sell, which could unlock housing supply from those who own multiple properties, Fairweather said.

But what's really needed is new supply, and building enough homes to make housing more affordable is a huge task in America. Yun estimated that it could take at least three to four years of building for supply and demand to balance out. 

Fairweather thinks it could take around a decade to build Biden's proposed 2 million homes. Building in America is difficult, and construction is often governed by a patchwork of local and state rules that make it hard for developers to break ground. 

"Biden has his plan, which is to pump money into the system. But the problem with the housing market isn't really that there isn't enough money going toward housing. It's more the red tape and the local opposition that has been the biggest barrier to building housing," Fairweather said. 

Even once that supply is added, the effect on home prices could still be muted. That's because the country is already deep in a housing shortage, Yun said, and it will take years for supply to catch up with demand, let alone have demand exceed supply, which is what would cause prices to drop.

"It will not come down in any meaningful way," Yun said of home prices. "Maybe there's a single-digit price adjustment temporarily, but any meaningful [decline] is not going to happen … So for anyone who's just waiting and waiting, well, that time will be long."

The upside is that prices aren't likely to rise much more. Yun thinks home prices will stay around their current level for the next three years before more supply finally makes its way to buyers. Then, assuming supply catches up with demand, the growth of home prices will likely slow in line with people's growing incomes, meaning housing will feel more affordable, even as actual prices don't see much of a change, he predicted.

The median sale price of a home in the US clocked in at $417,000 in the fourth quarter, according to data from the Department of Housing and Urban Development. That's a 27% increase from how much homes cost prior to the pandemic, with the median sales price clocking in at $327,100 in the fourth quarter of 2019.

Home prices were already up 6.5% year-over-year in February, according to Redfin data. According to an analysis by Zillow , homebuyers need to earn 80% more than they did before the pandemic to afford a home in 2024. 

Watch: Millions of homes could flood the US housing market thanks to boomers

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Sporting Goods Store Business Plan

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write A Sporting Goods Store Business Plan?

Writing a sporting goods business store plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Products and services:.

Highlight the sporting goods products & services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information:

Describe what kind of sporting goods company you run and the name of it. You may specialize in one of the following sporting goods businesses:

• Sporting goods retail store
• Online sporting goods store
• Specialty sports store
• Sports equipment rental
• Sports apparel & accessories
• Describe the legal structure of your sporting goods company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established sporting goods business, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your sporting goods store business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your products & services:

Mention the sporting products & services your business will offer. This list may include:

• Sports equipment
• Sports apparel
• Accessories
• Team uniforms
• Outdoor gear
• Equipment rental
• Equipment repair & maintenance
• Sports training & coaching

Describe each product:

Provide a detailed description of each product category you provide, for example for sports equipment:

Quality measures

: This section should explain how you maintain quality standards and consistently provide the highest quality products.

Additional Services

In short, this section of your sporting goods plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your sporting goods store business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your sporting goods business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & machinery:.

Include the list of equipment and machinery required for sporting goods business, such as manufacturing equipment, maintenance & repair equipment, retail store equipment, fitness equipment, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your sporting goods business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your sporting goods business, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your sporting goods retail store business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample sporting goods store business plan will provide an idea for writing a successful sporting goods plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our sporting goods store business plan pdf .

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Frequently asked questions, why do you need a sporting goods store business plan.

A business plan is an essential tool for anyone looking to start or run a successful sporting goods business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your sporting goods company.

How to get funding for your sporting goods business?

There are several ways to get funding for your sporting goods business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your sporting goods business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your sporting goods store business plan and outline your vision as you have in your mind.

What is the easiest way to write your sporting goods store business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any sporting goods store business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How do I write a good market analysis in a sporting goods store business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry. We can categorize the process of writing a good market analysis section into the following steps:

• Stating the objective of your market analysis—e.g., investor funding.
• Industry study—market size, growth potential, market trends, etc.
• Identifying target market—based on user behavior and demographics.
• Analyzing direct and indirect competitors.
• Calculating market share—understanding TAM, SAM, and SOM.
• Knowing regulations and restrictions
• Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

How detailed should the financial projections be in my sporting goods store business plan?

The level of detail of the financial projections of your sporting goods business may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a complete view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

What key components should a sporting goods store business plan include?

The following are the key components your sporting goods store business plan must include:

• Executive summary
• Market Analysis
• Products and services
• Sales and marketing strategies
• Operations plan
• Management team
• Financial plan

Can a good sporting goods store business plan help me secure funding?

Indeed. A well-crafted sporting goods business will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

What's the importanWhat's the importance of a marketing strategy in a sporting goods store business plan?ce of a marketing strategy in a scrap metal business plan?

Marketing strategy is a key component of your sporting goods store business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having an impactful marketing strategy:

• It provides your business an edge over your competitors.
• It helps investors better understand your business and growth potential.
• It enables you to develop products with the best profit potential.
• It helps you set accurate pricing for your products or services.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Customers from the East Coast to the Midwest could see costly impact from Baltimore bridge collapse

Customers from the East Coast to the Midwest who were expecting goods shipped in via the Port of Baltimore could see significant cost increases as a result of Tuesday's collapse of the Francis Scott Key Bridge in Baltimore.

In a statement released after the bridge collapsed early Tuesday, the American Trucking Association estimated that 4,900 trucks per day carrying an annual average of $28 billion worth of goods would have to be rerouted — at a cost to shippers and ultimately consumers.

“The Key Bridge and Port of Baltimore are critical components of our nation’s infrastructure and supply chain," the association said. "Aside from the obvious tragedy, this incident will have significant and long-lasting impacts on the region."

It said the greatest impact is likely to be on shipments of hazardous materials, like diesel fuel, which are not allowed to be taken through tunnels.

The closure, the association said, will "add significant cost in time, fuel and delays for trucks traveling through the region, on top of the disruption that a closure of the Port of Baltimore will inflict on our economy." 

“We urge state and federal government agencies to swiftly target appropriate resources to open the port and replace this bridge as quickly as possible,” the association said.

A spokesperson for the Council on Safe Transportation of Hazardous Articles said it was declining to comment on the situation.

The collapse is being blamed on a cargo ship that lost power and slammed into a bridge pylon early Tuesday. Maryland Gov. Wes Moore has declared a state of emergency, and President Joe Biden said he would direct federal resources to address the situation.

Global supply chains are already in brittle shape from pandemic-related stresses and geopolitical changes.

“If this were the only issue, I think we’d be in a much better position," said Abe Eshkenazi, CEO of the Association for Supply Chain Management. "The unfortunate circumstance is that we’ve been dealing with multiple disruptions that have already stretched a system that is low on capacity.”

Baltimore is the largest entry point in the U.S. for large agriculture and construction equipment like tractors, farming combines, forklifts, bulldozers and heavy-duty trucks that are bound for the Midwest, according to DAT Freight and Analytics, a freight-exchange service.

Any disruption to agriculture and construction equipment shipments would come at a particularly bad time as Midwest farmers have begun to plant this year’s crops, while construction picks up in colder climates as the ground begins to thaw, said Dean Croke, principal analyst with DAT.

“I think it has a huge economic impact on the farming industry,” Croke said. “This is peak planting season in the Midwest and peak machinery import season. March is the biggest month for machinery shipments into the U.S. via Baltimore.”

Companies may have to reroute their shipments to nearby ports, like those in Georgia or Florida, he said. That will mean higher freight shipping costs as trucks have to travel farther and may have to wait longer to pick up their loads if those ports become congested, Croke said.

The complete collapse of the bridge means it could take up to a year for normal logistics patterns to return, said Tinglong Dai, a professor at the Johns Hopkins Carey Business School.

"It's very difficult to estimate the [shipping] cost impact, but it’s fair to say it's going to be costlier to transport autos and trucks to and from the U.S. in the short term because of the oversize impact on the port of Baltimore," he said.

Baltimore is also the No. 1 automobile port in the U.S. Other Eastern Seaboard ports are expected to be able to shoulder some Baltimore-bound auto shipments, said Emily Stausbøll, a market analyst with the shipping group Xeneta, which could limit the impact on global shipping rates.

“However, there is only so much port capacity available and this will leave supply chains vulnerable to any further pressure,” Stausbøll wrote in a note to clients.

In an interview with CNBC , Richard Meade, the editor-in-chief of Lloyd's list, a shipping journal, said: “It will be expensive, but it is not a supply chain story like the Ever Given [which was stuck in the Suez Canal] because ocean carriers will find alternative routes,” Meade said. “Logistically, ocean carriers and trucking have the ability to be pretty adapt and agile.”

A spokesperson for the port of Norfolk, Virginia — another major terminal along the East Coast — said its team was already working with ocean carriers whose vessels were bound for Baltimore to see about rerouting south.

"The Port of Virginia has a significant amount of experience in handling surges of import and export cargo and is ready to provide whatever assistance we can to the team at the Port of Baltimore,” the spokesperson said.

Some automakers said there may not be a major impact.

A spokesperson for General Motors said that it expected the incident to have a minimal effect on its operations and that it was working to reroute vehicle shipments to other ports.

A BMW spokesperson said its receiving terminal is at the Baltimore harbor’s entrance in front of the bridge and still accessible.

“We do not expect this morning’s tragedy in Baltimore to have any immediate impact on our business, other than short term traffic delays,” the BMW spokesperson said in an email.

Other companies with significant operations in the port area said the impact would be minimal. In a statement, a representative for Home Depot said its distribution centers in the area remained open and operating.

Amazon, which also has a major distribution center at the port, declined to specify what, if any, effects there might be.

"We’re assessing the immediate and future impacts to our employees and delivery partners, as well as the surrounding community and will make any adjustments to our operations that are needed," an Amazon representative said in an emailed statement.

Rob Wile is a breaking business news reporter for NBC News Digital.

Shannon Pettypiece is senior policy reporter for NBC News digital.