How To Start A Sporting Goods Business

How To Start A Sporting Goods Business - Background Info:

Starting your own sporting goods business can be a lot of fun if you're into sports.

Internet Based, or Locally Owned?

Generally, you have a couple of options. You can either set up a shop online, which is a much lower risk investment, or you can rent out a storefront and sell to your local community, which will take a little more money to start up, but depending on your goals, may prove to be more rewarding.

Managing a sporting goods business from a store front doesn't mean you can't sell online, as well. By setting up a website for your actual store, you can make more sales while still maintaining a physical presence in the local sporting community.
Ideally, your sporting goods business is going to be supporting the local athletics efforts. This means little league games, local high school teams, local golfers, etcetera.

It's probably safe to assume that your interest in starting a sporting goods business comes from an interest in sports, because, well, it should! In order to really understand what it is you're selling through your sporting goods business, to know what to stock your sporting goods business with, you should have a sincere passion for the game.

In fact, what your sporting goods business customers will really appreciate is a shop owner and employees who know what to recommend based on personal experience.

Some sporting goods business owners arrange sporting activities with their employees as a bonding experience and as a way to get familiar with new equipment.

How To Start A Sporting Goods Business - Tasks And Skills Needed:

Business Specific Tasks:

If you are planning to do all the business tasks or hiring or subcontracting tasks, here's a list of tasks that need to be attended to when it comes to the business side of running a sporting goods business:

Bookkeeping

Inventory management

Customer service

Accounting

Industry Specific Tasks:

Same as above if you plan to do everything yourself or get help, here are some of the tasks necessary to operate a sporting goods business:

Order inventory (sporting goods)

Retail sales online or offline

Marketing and advertising

How To Start A Sporting Goods Business - Approximate Daily Hours Needed:

General Hours of Operation: - When your business is open

If your business is internet-based, your hours are as you dictate. If you own a storefront, you will generally hold typical retail sales hours.

Hours Needed to Prepare - Before Opening and After Hours Activities

Order stock, check supplies, answer inquiries, marketing, advertising.

Number of Employees Needed To Run This Business:

Minimum Number of Employees -During the Start Up Phase: You can start this business yourself on a full-time basis.

Number of Employees - Once Your Business is Up and Running Successfully:

Website maintenance

Record/Bookkeeping

General office

Customer Service

Advertising/marketing/promotion

Skill Requirements for This Business:

Familiarity of the sports industry

Knowledge of sports equipment

Retail sales experience

Customer service background

Licenses:

If you are operating as an internet and home-based business, you will need to inquire about licensing and/or permits according to your locality.

Approximate Minimum Start up Cost:

Bare essential: - The average startup cost is about $1,000-10,000.

Minimal exposure - There are several ways to advertise for free.

Necessary Equipment to Run this Business:

Necessary Start-Up Equipment & Supplies:

Computer

Printer

Cell phone

Website

Supplementary Equipment: - Equipment or helpful products that you can acquire to once your business is off and running and if you have a storefront:

Shoes

Athletic equipment

Balls, bats, etc.

Gym equipment

Monthly Expenses To Consider:

Wages
Phone/cell phone
Internet access
Permits
Advertising/Marketing
Electricity
Water

Special Requirements and Considerations For This Business:

Find out all you can about the trends in the industry. Know your competition, in particular, their strengths and weaknesses. This will help you identify your competitive advantage. In other words, this will help you figure out what you can give your customers that they're not getting from the other businesses. And keep from emulating the competition's strategy. Instead, make the most of your own advantage points.

Pros And Cons of Opening A Sporting Goods Business:

The Pros of Running a Sporting Goods Business:

For the sports enthusiast, it's a perfect business

You can dictate your own hours

Sports-related items are popular

The Cons of Running a Sporting Goods Business:

It can be seasonal

Sales can be dependent on the economic climate

Type of Customers You Need to Attract:

If you already have a major sporting goods business in town, it may be a good idea to specialize and offer a more extensive selection of a few items rather than providing a little bit of everything, as larger sporting goods businesses usually do.

For example, you may have a general purpose sporting goods business in town, but do you have a sporting goods business dedicated entirely to sportswear? Do you have a sporting goods business that caters specifically to football players and fans?

Your approach to the sporting goods business and increasing sales is entirely up to you, just remember to be creative, and that the best way for a small sporting goods business to compete with a larger business is to capitalize on something of a niche market, or to offer a superior experience for a select group of your sporting goods business customers.

What you're really after is repeat business. Online or with a storefront, you want customers who keep coming back to your sporting goods business. The best way to attain this is by offering only products that you believe in through your sporting goods business, and by being able to make good recommendations to your customers. As the wise businessman says, a sale is just a sale, but a returning customer is invaluable.

Sporting Goods Business Statistics:

According to IBIS World Industry's 2009 report, US Sporting Good Stores, "Sports participation drives demand for "sporting goods".

Persons aged less than 30 years and aging baby boomers are two demographics involving themselves with sports and recreational activities."

For entrepreneurs looking to start a sporting goods business, these two groups of sports enthusiasts present additional opportunities for sales and revenue beyond local sports teams and athletic groups.

Also See SPORTING GOODS STORES BUSINESS AND INDUSTRY PROFILE (pdf)

Revenue:

See SPORTING GOODS STORES BUSINESS AND INDUSTRY PROFILE (pdf)

Sporting Goods Business Resources:

Industry-Specific Websites:

Sports Life

Champion's Tour

Dick's Sporting Goods

Equipment and Supplies:

Sports Life

Forums:

How to Start a Sporting Goods Store

Sporting Goods Forum

Franchises:

Franchise Gator Listings

Associations:

NSGA - National Sporting Goods Association

Books:

Start Your Own Sporting Goods Store!

Other:

Sports retail giants' merger changed industry

Shooting Sports Retailer Website

How to Start a Sporting Goods Store

Businesses To Related to a Sporting Goods Business:

Retail sales
E-commerce