Keith’s Sporting Goods, (KSG), will be selling equipment to athletes of all fitness levels. This includes weekend warriors and college athletes. Our knowledgeable staff will make it easy for customers to ask questions and discuss their equipment needs.
KSG is located in Eugene and wants to be a nationally recognized sporting goods store. The exact location of the store is still unknown, but the owners are keen to find a spot with high foot traffic. It would be ideal that the store is located in central Eugene so that anyone can easily find it.
We fully expect to grow quickly. Similar assumptions are used by many businesses, but KSG, due to its work ethic, desire and job enjoyment, expects to make a profit at the beginning of its existence. While sales will be relatively stable in the first month, they are expected to rise by 2% each month thereafter with a growth rate of 12% for the first year. This assumption is supported by the fact the sporting goods wholesale business is growing at an annual 11.5% rate.
Keith’s Sporting Goods will file as an S Corporation, where owners will be protected against various forms of liability. In the early stages of business, we will be primarily debt financed through a local bank and the Small Business Association (SBA). We have forecasted the need for 60% debt, the owner and operator will invest the rest.
We expect the store to open in January 2019 depending on the timing of financing and strong profits by December of the same year.
1.1 Objectives
The store’s main goals are:
- Reputation. KSG will be recognized in Eugene as a fitness and sporting goods store.
- To have a profit at the end of the first full year.
- Achieve a 15% increase in sales over the first two years, and then maintain an 11.5% rate of growth thereafter.
- A constant gross margin of 40 percent is a good goal. If we are able to do this and keep costs fixed, sales will be able to grow faster than total costs.
1.2 Mission
KSG strives for long-term relationships and trust with its customers as well as employees. The store management will always emphasize the importance and value of community service, community service, education, and working within the community. We believe it is essential to give back to our community, as well as maintain an atmosphere that allows our employees to grow.