Monday, August 12, 2019
A Sporting Goods Store Research Paper Example | Topics and Well Written Essays - 3250 words
A Sporting Goods Store - Research Paper Example EntrepreneurÃ¢â¬â¢s role 21 Business plan 21 License potential 21 Corporate partners 21 Proprietary rights 21 Infrastructure members 21 Bibliography 22 FEASIBILITY STUDY OF A SPORTING GOODS STORE Introduction Our proposed company is a sporting goods store that will manufacture a line of clothing for sports enthusiasts, carry known brands of sporting equipments, and accessories for fishing, hunting, hiking, and camping, aside from being a service center for these equipments. It is a combination of a retail, manufacturing and service business. At this point, we are still on the concept stage. Methodology/Analysis Our shirts will be customized, carrying our own brand and logo, but the designs will be done according to the theme of the sports events and idea of customers. Each design is unique as it will represent the theme of each event. As a shirt manufacturer, it will be a specialty store because we will use high materials. As a retail outlet, our store will carry known brands of hi king, fishing, and camping materials, as we plan to work for distributorship and licensed agreements with named brand owners. We will also set up a service and maintenance department that will repair sporting equipments that people bought from our store. As these items are costly, our maintenance will add value to them. Our Products will be sourced from sporting goods manufacturers and wholesalers and then sold to the general public via our retail store. Target markets are people of ages 18 and above, residents of Des Moines, and with average income of $35,000 and above. Study showed these people have the capacity to spend, and enjoy active sports life. Hiking, fishing, and camping are simple outdoor activities that people enjoy. Since our company is in the locality, it will be ready to serve their needs as a one stop shop for outdoor sports. In order to penetrate our target market, we will consider a tie up with schools, sports organizers and clubs for a city wide sports campaign l ike a city hiking day, hunting and fishing competition once every 6 months. We will also encourage sponsorship and media coverage. Our start-up costs and capital needed is estimated at $250,000. Start - capital will be provided by four partners at $25,000 each and the balance of $150,000 will be borrowed from the bank. Bulk of this fund will be used for capital expenditures, inventory, and maintenance and operating expenses for the first months of operations. It is expected that sales in the following months will provide the needed cash flows for operations. Our financing will be both debt and equity. Conclusion We plan to pursue this business since based on our projection; it is not a losing proposition. The first months of operations will be difficult for the start-up of our business, but we will keep our expenditures to a minimum so that our cash flows will not suffer and we do not have to borrow some more. Initially, sports organizations in the area that we have approached are e xcited with the idea and many of our friends have encouraged us to continue with the proposal.