Sample Business Plans -> Sports Equipment Cafe
"Sports Equipment Cafe" Business Plan:
1.0 Executive Summary
Business Ideas applicable for this business plan:
This business plan was originally published
1.0 Executive Summary
The Boulder Stop will be a combination coffee shop and rock climbing gear store strategically located near one of the Pacific Northwest's premier climbing spots. Our main strategy is to develop The Boulder Stop experience as part of the overall rockclimbing activity. We don't intend to be just a store, but rather a rockclimbing cultural center for regulars and visitors to Smith Rock, Oregon.
It is the purpose of this business plan to lay the foundations of the company's vision, philosophy and strategy to the firm's principal investors and debtors and to align the various elements of the company to create a coherent system of sustainable customer satisfaction and profits.
The store is located one mile from Smith Rock State Park in the Central Oregon desert. It is conveniently located in an area frequented by national and international tourists.
We expect a high degree of expertise and enthusiasm from our employees and we will compensate them accordingly. All employees are hired for their expertise and enthusiasm and will be paid at a rate well above the minimum wage to facilitate low-turnover and long-term loyalty.
The company plans to hire two two part-time employees as espresso servers/gear experts.
Sourcing is critical for any enterprise, especially a retail operation. The Espresso Harvest will be our coffee vendors, and will handle many in-store merchandising issues for their line of coffee products. The sport and recreation inventory will be sourced directly from manufacturers like Black Diamond, Boreal, and Petzl.
Luke Walsh will be the general manager and founder of The Boulder Stop. Mr. Walsh graduated from the University of Oregon in 1997 with a degree in Business Management. Luke's success as a Nordstrom employee combined with his formal business training makes him an ideal community leader and business owner.
Consumer expenditures for rockclimbing equipment rose to $4,000,000 in Central Oregon in 1997. We expect sales to increase steadily as Oregon's population grows and the rock-climbing industry becomes increasingly popular.
The Western Oregon presence of several large universities is expected to fuel our business, as does the status of Smith Rock as an international destination spot for rockclimbing enthusiasts. Individuals from as far away as Japan, Europe, South America, and Australia seek out Smith Rock as a beautiful and challenging sport and rockclimbing destination. We count worldwide readers of such publications as Rock & Ice magazine and Outdoor Adventure among our target audience.
Trends are in our favor. There are three major trends at work in our market:
There are two important underlying market needs; a real need for a highly professional provider of climbing gear and a social meeting place/refreshment provider near the Smith Rock location. In many ways the Boulder Stop mimics the positioning of a ski lodge; selling crucial gear while providing a place for coffee, snacks, and talk.
The Boulder Stop has several advantages over its leading competitor including newer inventory and more modern interior fixtures, an atmosphere that apeals to a wider market than our largest competitor, and the coffee/espresso concept.
The Boulder Stop will use advertising and sales programs to get the word out to customers.
Our three main target markets are Weekend warriors, Hard-core climbers, and The curious. We predict that the number of Hard-core climbers will grow faster than the number of Weekend warriors. Climbing is becoming more and more technical, an "Insider's sport" and we believe this will fuel the growth of dedicated, highly sophisticated climbers.
The Boulder Stop expects to earn approximately $45,000 in profits by year three based on projected sales of $145,000 in that same year. According to the analysis, we will break-even at approximately $6,000 in monthly sales. These projections are based on the following assumptions.
We predict advertising costs and consulting costs will go up in the next three years. This will give The Boulder Stop a profit-to-sales ratio of nearly 31% by the year 2000. Normally, a start-up concern will operate with negative profits through the first two years. We expect to avoid that kind of operating loss by knowing our competitors, our target markets, industry direction, and the products we sell.
The Boulder Stop is an equipment store and cafe specializing in premium rockclimbing gear and coffee/espresso drinks. We believe rockclimbing should be safe and fun. We understand that rockclimbers need a healthy dose of the newest gear, fresh snacks, and raw caffeine.
Our goal is to be the centrifuge for rockclimbers living in and visiting Central Oregon. Smith Rock State Park is one of the finest rockclimbing parks in the world. Our staff is fluent in several languages, including Spanish, German, and French. Locals and tourists alike will long for our hip, lively shop because of our staff, our setting, our gear, and our coffee.
We believe it is important to remain an active member of the community. To impact people's lives in more ways than deriving a profit from them. We host community events that bring out the best in people.
We will be the region's destination for those who want to know all there is to know about rockclimbing gear, safety, rules, and events. The future of rockclimbing in Central Oregon will be determined by our level of commitment.
1.3 Keys to Success
To succeed in this business we must: