How to Start a Sporting Goods Business

Thứ bảy - 27/04/2024 01:16
You've decide to open a sporting goods store. Great! But where to start? There are a number of factors you need to take into consideration when getting your business off the ground, and we'll take you through all of them step-by-step....
Table of contents

You’ve decide to open a sporting goods store. Great! But where to start? There are a number of factors you need to take into consideration when getting your business off the ground, and we’ll take you through all of them step-by-step.

Part 1
Part 1 of 3:

Researching and Planning

  1. Step 1 Study the market.
    Before you can open your own sport goods store, it’s important to know what your competition is like and what kind of need there is for another (or a different kind of) store.
    • Pay a visit to the other sporting goods stores already in the area you think you might want to open your shop, and see what sports or hobbies they cover particularly well and not so well.
    • If there is an under-represented sport that you think still has an interested consumer base, consider catering to them. This might be an opening for you to capture the market.
    • Stay current with new trends and up-and-coming sports, such as at-home circuit training or extreme outdoor sports, which might introduce new demands or equipment into the market.[1]
    • Be aware, though, that if there is no one covering a certain sport or market, it might mean that there isn’t a strong enough customer base to support it. Ideally, you’d want at least one other store in the same field, but one that you think you can surpass with better services, products, or prices.
  2. Step 4 Develop a business...
    Develop a business plan. A business plan is a roadmap for reaching success with your company. Most basically defined, it is written description of what you plan to do with your business, and how you plan to do it.[2]
    • Start with a mission statement, or summary of your business and its greatest features or unique strengths. What will set you apart in the amongst other stores?
    • Think about what specific products or services you would like to supply.
    • Come up with a basic financial projection, including how much money you need to open your business (including store rent, inventory, equipment, employee wages, insurance, utilities, permits and licenses); how much money you currently have to invest and/or how much you need to borrow; and what kind of profit margins can be expected.
    • Develop some ideas about marketing and how to promote your business.
    • Think about what you would like to achieve in 3-5 years, and develop some specific steps or strategies for accomplishing these goals.
    • You can take your business plan to a bank or loan office to get pre-approved for a small business loan or another line of credit. This might come in handy when renting store space, buying inventory, or paying employees before you start to turn a profit.
  3. Step 5 Research store locations and options.
    It’s not only important to decide where you’d like to open your store, but also what kind of store space best suits your needs. There are brick-and-mortor options, of course, but there are also alternative options for where you can locate your store.
    • Consider opening a store nearby major areas, parks, or places where sports are played.[3]
    • Ideally, you’d want to be situated in populated areas with good foot traffic and accessibility, like a mall, though this can also lead to higher rent prices.
    • If your selling particularly big or bulky items that people will need to transport in their cars, look for a location with ample parking.[4]
    • If rent prices and building overhead expenses (like rent, utilities, and insurance) are too much for your budget, consider alternative options like subleasing a part of another store, securing a small kiosk in a mall, or opening an online only store. These alternatives to traditional, stand-alone storefronts have lower startup and overhead costs.
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Part 2
Part 2 of 3:

Opening Your Store

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Part 3
Part 3 of 3:

Growing Your Business

  1. Step 2 Advertise and promote your store.
    Once you’ve opened your doors, the next step is getting people through them. For this, you’ll need a good marketing and advertising strategy.
    • If you have the budgetary flexibility, consider commissioning an advertisement firm to come up with a catchy company logo and some promotional materials. You can also hold a design competition for local high school or college students, and offer the winning designer a store gift card for their work.
    • Take out some advertising space in local print or media outlets. Or hang a banner at the local sports field, if allowed.
    • Find out if your product vendors have their own marketing materials that you can utilize to promote their product at your store.
    • Offer promotional deals for those involved in local sports clubs and organizations. Forge a connection with the leaders of these clubs, and offer to become their official outfitter, to print up their jerseys, fulfill trophy orders, or take special requests for customized gear.
    • Sponsor the athletic teams of a local school. You have the potential to reach all of the kids on the team, as well as their parents and the other teams they come into contact with.
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