Sporting Goods: How to Start a Sporting Goods Store

To get started the entrepreneur should have adequate knowledge of the industry. The individual needs good interpersonal skill, trustworthy suppliers and dedicated labor force.

The goods should be high quality and sold at competitive prices. To establish a sports goods store the person need a good site, funding and determination. The entrepreneur can narrow the niche to a specific sport or offer a wide variety of sporting goods.

How Does a Sporting Goods Store Make Money?

Sporting goods store makes money by selling sports equipment. They earn a small margin (percentage) on each sale based on purchase price and sales price.

The business template is simple and straightforward. Open a store, source the goods, buy and sell. Some stores also purchase used sports equipment refurbish and sell as second hand goods.

Target Market

The target market are colleges, universities, high schools. Youth sports teams or junior team’s makeup the core customers. Bulk purchases by community teams are the best profit making opportunities. However the sports store should also cater to private individuals.

•         Colleges

•         Universities

•         High schools

•         Youth sports teams

•         Junior team

•         Private Individuals

Earning Potential

The price range depends on the product or item. The store owners should price them appropriately according to prevailing prices in the market. To offer competitive prices purchase in bulk or directly from manufacturers or major distributors.

Expenses

Expenses include labor, purchase of inventory, utility bills and property rent. Others are insurance, legal fees, office equipment and marketing.

•         Labor

•         Inventory

•         Utility bills

•         Property rent

•         Insurance

•         Legal fees

•         Office equipment

•         Marketing

Staff

The number of staff depends on the business template. However small sports stores are adequately run by a single individual. Mid-sized ones would require a store managers, sales person, cleaner and clerk.

•         Store manager

•         Sales person

•         Cleaner

•         Clerk

Legal

Legal considerations are registering the business and securing an operational license. The company needs liability insurance and tax identification number. Some good might attract sales tax or value added tax.

The Job Description

The job description involves purchase of sports goods, inventory management and accounting. Others are marketing, customer service, stocking and sales.

If the business runs an online store processing orders is part of the job. Other functions are placing orders, assisting customers, researching trendy sports goods.

Best Ways to Attract Customers

To keep regulars customers provide excellent deals and sell quality goods. Use social media, marketing, word of mouth, blogging and promotions. Use television advertisement and print to reach customers.

Print flyers, posters, banners and signboards. Use complimentary cards and a website. Drive traffic to the site through online advertisement, search engine optimization techniques.

Product Range

Stock a wide range of sports goods to cover different disciplines. Study the preferences and items that fly off the rack. Those are the ones to buy in bulk and spend only a little on costly items.

Purchase popular good like baseball caps, footballs. Try to avoid overstocking and work within a budget. Common products are hockey pucks, golf clubs, basketballs, hockey sticks and baseball bats.

•         Baseball caps

•         Footballs

•         Hockey pucks

•         Golf clubs

•         Basketballs

•         Jockey sticks

•         Baseball bats.

Things to Consider

There are a few things to consider before starting a sports good store. First get a business license and obtain necessary permits.

Register the business as a limited liability company and get business insurance. Set up a separate account for the business and define the brand. Write a business plan, establish an online presence and register for taxes.

Steps to Start a Sports Goods Shop

•         Business license

•         Obtain necessary permits

•         Register the business

•         Get business insurance

•         Set up a separate account

•         Define the brand

•         Write a business plan

•         Establish an online presence

•         register for taxes

Cost of Starting the Business

The cost considerations depends on the size of the business. Cost implications include rent, labor, cost of inventory and liabilities. Others are utility bills, website management, insurance and forming a legal entity.

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