1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a sports memorabilia store while showcasing the expected financials and operations over the next three years. Sports Memorabilia Store, Inc. (“the Company”) is a New York based corporation that will provide baseball cards and sports memorabilia products to customers in its targeted market. The Company was founded by John Doe.
1.1 Operations
As stated above, the Company will be actively engaged in the retail sale of sports memorabilia which will include used jerseys, signed items, baseball cards, and other items that have sentimental value among sports fans. The Company will issue Certificates of Authenticity (COAs) on each item sold by the business through its retail store. In addition to its traditional retail store, the Company will also sell through several online channels including a proprietary website and online sales platforms like EBay and Amazon.com. The third section of the business plan will further describe the services offered by the Sports Memorabilia Store.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
Sports Memorabilia Store’s mission is to become the recognized leader in its targeted market for providing an expansive array of sports memorabilia products.
1.4 Management Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the retail management industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Sports Memorabilia Store, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Sports Memorabilia Store requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of Sports Memorabilia Store, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of Sports Memorabilia Store, Inc. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Operations
As stated in the executive summary, the Company will actively engaged in the business of acquiring and selling sports memorabilia including signed sports items, sports cards, sports apparel items that have been used in games, and other products that have additional sales value because of their relation to a particular sport. For each signed item sold by the Company, the business will issue a certificate of authenticity to the customer which legally shows that the item is authentic. This will allow potential buyers to resell the items with confidence to other buyers should they desire to do so. This is a common practice in the sports memorabilia distribution industry. In addition to maintaining a traditional retail facility for making sales, the Company will also develop an online sales platform while concurrently establishing sales channels through popular websites such as EBay and Amazon.com. The methods of distribution and advertising will be further covered in the fifth section of the business plan.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the sports memorabilia industry, the customer profile, and the competition that the business will face as it progresses through its business operations.
Currently, the economic climate is moderate. The economy is undergoing a transition period due to changes in global trade policy. At this time, interest rates have remained steady due to appropriate and measured policies by central banks. While there has been volatility, this is expected to subside as the economy adapts to these changes.
However, any issues with the economy will not impact the Sports Memorabilia Store’s revenues as the Company sells in demand items through its physical location and online.
4.2 Industry Analysis
Among companies that specialize in the distribution of collector’s items (which includes sports memorabilia), there are more than 19,000 companies that operate one or more retail locations. Each year, these businesses aggregately generate more than $12 billion of revenue while concurrently providing jobs to more than 90,000 people. These figures exclude revenues and payrolls generated by antiques dealers. This is a mature industry, and the future expected growth rate is expected to mirror that of the general economy.
4.3 Customer Profile
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
Sports Memorabilia Store, Inc. intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Company.
5.1 Marketing Objectives
- Establish relationships with other sports memorabilia dealers in the market so that the Company can acquire hard to find and in demand items quickly.
- Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
- Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Sports Memorabilia Store to easily target its demographics within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. Sports Memorabilia Store, Inc. will also use an internet based strategy. This is very important as many people seeking local retailers, such as sports memorabilia stores, now the Internet to conduct their preliminary searches.
Mr. Doe will register the Sports Memorabilia Store with online portals so that potential customers can easily reach the business. The Company will also develop its own online website, which will feature e-commerce functionality. As stated earlier, the business will also launch online sales platforms on other websites such as Amazon.com and EBay. Finally, Mr. Doe will attend sports memorabilia trade shows on the weekends that are based within a 50 miles radius from the Company’s location to further promote sales. The Company will purchase booth space at these events in order to further drive revenues.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
7.0 Financial Plan
7.1 Underlying Assumptions
- Sports Memorabilia Store, Inc. will have an annual revenue growth rate of 16% per year.
- The Owner will acquire $100,000 of debt funds to develop the business.
- The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. Sports memorabilia and its related products are not necessities, and during an economic downturn, the Company may see a significant decline in its revenues. However, the Sports Memorabilia Store will operate with low overhead while concurrently using a number of different sales channels to make sales. As such, the business should remain profitable and cash flow positive despite the current economic climate.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statement
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 Breakeven Analysis
7.9 Business Ratios
