You decide to open a sports equipment store. Good! But where to start? There are a number of factors to consider when starting this business, and we'll teach you all step by step.
Step
Part 1 of 3: Researching and Planning
Step 1. Study the market
Before you open a sporting goods store, it's important to know what your competitors are like and what kind of needs are in other stores (or stores of a different kind).
- Check out other sporting goods stores in the area where you might want to open a shop, and see what sports or hobbies they do well and don't do so well.
- If there's a sports field that's less fully equipped but still has a consumer base, consider providing it. This may be the opening for you to capture the market.
- Stay abreast of new trends and rising sports, such as circuit training at home or extreme outdoor sports, which may introduce new demands or equipment to the market.
- However, be aware that if there isn't a single store that caters to a particular sport or market, it may mean that the customer base isn't strong enough to support it. Ideally, there should be at least one other store in the same area that you think you can excel with with better service, product, or price.
Step 2. Study your environment
In addition to other businesses, take the time to find out what types of sports, hobbies, or activities are already popular or have the potential to be popular in your area.
- If you live near a natural park or nature reserve, outdoor activities such as hiking or kayaking may be popular pastimes with a lucrative market.
- If your city builds more bike lanes and lanes, there may be an increase in interest and demand for bicycle equipment. This might be a good time to open a sports equipment store that specializes in renting, selling, or repairing bicycles.
Step 3. Choose your preferred target market
There are several well-known national sports equipment brand chains that try to offer everything in small quantities and cater to the desires of all fans of any type of sport or hobby, from basketball to badminton, from flying to fishing. Instead of following this approach, consider focusing on a specific sport, such as hunting and fishing or golf, to stand out from the crowd and become an expert retailer.
- Focusing on a specific area of the market will allow you to cover every aspect of a particular sport without having to stockpile a lot or source different suppliers.
- For example, you could focus on amateur and teen sports, and provide a wide range of products targeting children. You may also decide to do the opposite and serve a professional market base by providing only high quality equipment.
- You can also choose to focus on memorabilia and clothing instead of sports equipment.
Step 4. Develop a business plan
A business plan is a roadmap for achieving success with your company. Basically, it's mostly a written description of your plans for the business, and how you plan to do it.
- Start with a mission statement, or summary of your business and its best features or unique strengths. What will set you apart from other shops?
- Think about what product or service you want to supply.
- Make basic financial projections, including how much money you will need to open your business (including store rent, supplies, equipment, employee salaries, insurance, utilities, permits and licenses); how much money you currently have for investment and/or how much loan you need; and the type of profit margin that can be expected.
- Develop some marketing ideas and ways to promote your business.
- Think about what you want to achieve in 3-5 years, and develop specific steps or strategies to achieve those goals.
- You can take your business plan to a bank or loan office for approval for a small business loan or other type of credit. This will come in handy when you are renting a store, buying supplies, or paying employees before you start making a profit.
Step 5. Research your location and store selection
Another important thing to decide apart from the location of your desired store opening, is what kind of store space will best suit your needs. Of course there is a choice of rows of shophouses, but there are also other alternative options for your store location.
- Consider opening a shop near a busy area, park, or where sports are played.
- Ideally, stores should be located in densely pedestrianized and easily accessible areas, such as malls, although this can also lead to higher rents.
- If you mainly sell large items that people have to transport in cars, find a location with ample parking space.
- If rent and building costs (such as rent, utilities, and insurance) are too big for your budget, consider alternative options such as renting a portion of the area from another store, using a small kiosk in a mall, or opening an online shop instead. Alternatives like this to traditional storefront shops charge a low initial price and additional costs.
Part 2 of 3: Opening a Shop
Step 1. Register your business
After researching and planning, turn dreams into reality by legally registering your business.
- You may want to hire an attorney to help you with the legal paperwork needed to register your new business. This may be complicated, depending on your country's requirements.
- Create a name for your company and register it with your local, region, or country authority.
- Make sure you generate an Employer Identification Number through the Internal Revenue Service (if opening a store in the United States).
- Once your business is registered, you can proceed with obtaining a license or permit as your state or rental space may require.
Step 2. Supply your store supplies
Now that you've decided on your preferred target market and store location, the next step is to supply supplies so you can start selling and making a profit.
- Decide what brand you want to sell. Find out what products or brands are most popular or sought after by talking to sports fans, attending conventions, and reading specialty sports magazines.
- Find out what companies operate and ship products to your area. You can look through trade magazines or visit the National Sporting Goods Association website.
- Contact vendors to see if they require a minimum order quantity or if they offer special promotions for new retail store customers.
- See if you can order wholesale; it is usually cheaper to order goods this way than in units or small quantities.
Step 3. Hire employees
Depending on how busy your store is, you may need to hire staff to help with inventory, customer orders, and sales service.
- Ideally your staff should be passionate and knowledgeable about the sport. At a sporting goods store, customers are more likely to listen to and trust people who are passionate about sports.
- If your budget can't afford aid, consider working with a local college and opening an internship to show students how to run a business as payment for their help in the store.
Part 3 of 3: Growing Your Business
Step 1. Build a strong business image through the web
Even if you have a physical store, a strong website is essential to the success of your business.
- Start with basic information such as store location, hours of operation, and some general information about your product.
- As you grow, consider putting your merchandise inventory online so people can browse your items at home and even buy from outside your neighborhood.
- When creating an e-commerce website, it is very important to offer a safe shopping experience for your customers. Make sure your website has security features and settings.
Step 2. Advertise and promote your store
Once you've opened the door, the next step is to get people through it. For this, you need a good marketing and advertising strategy.
- If your budget is flexible, consider hiring an advertising company to create attractive company logos and promotional materials. You can also host a design competition for local high school or college students, and offer the winners a store gift card for their creation.
- Use advertising space in print media or local media outlets. Or hang banners on local sports grounds, if allowed.
- Find out if your product vendors have their own marketing materials that you can use to promote their products in your store.
- Offer promotional offers to people involved in local sports clubs and organizations. Connect with the club's leaders, and offer to be their official dress supplier, print their shirts, fulfill a trophy order, or fulfill a request for a special device.
- Sponsor a local school athletic team. You can potentially approach all the children on the team along with their parents, and any other team they come into contact with.
Step 3. Provide unique items
The best chance to succeed and grow your business is to set it apart from your competitors and do something better than they can.
- Always at the forefront of equipment models and styles, and the latest innovations.
- If you specialize in sports memorabilia, try finding and selling unique items you can't find anywhere else.
Step 4. Expand and vary
Companies that grow and develop can expand branches to new spaces in their fields. Once the business is up and running, look for other sports-related opportunities to expand your business variety.
- Consider hosting a sporting event, tournament, or exhibition for fans.
- Get creative and think about other additional markets that intersect with yours, such as pedestrian nutrition or medical practices that specialize in treating sports injuries, and see if you can work with them to forge a mutually beneficial business relationship.
