How to Start a Sporting Goods Retail Business

Start a Sporting Goods Business

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.

For both internet-based and retail-driven sports businesses, a solid plan and an experienced team will help create and sustain a profitable sporting goods business.

Things You'll Need

• sporting goods experience
• sporting goods business plan
• retail space for your sporting goods store
• pos, register and tagging system to prevent theft

Instructions

1. 

   Learn the sporting goods business from a major athletics retailer or a local sporting goods store. From selecting equipment and athletic wear to finding the best retail software to track and sell orders, a sporting goods owner needs proper training. A new entrepreneur should have contacts within the sporting goods industry and a minimum of 5 years of experience managing a store before opening a retail operation.

2. Apply for all business and legal documentation required by your local and state government. A new business will need an EIN number from the IRS and corporation filings from your state government. Check with your local government to determine the type of retail sales license needed to buy and sell athletic goods.

3. Identify your niche. To compete with major sporting retailers located within your city, create a unique approach to customer service and product selection. Stock your sporting goods business with equipment and merchandise specific to the needs of your niche customers. For example: if your sporting goods store is located near a ski resort, provide free product demonstrations for new ski customers. A sporting goods store could also sell ski-related clothing and supplies that customers can monogram or personalize.

4. Create an ideal customer profile for your sporting goods retail business. Sporting goods customers fall into four categories: sports teams, sports enthusiasts, sports fans and licensed sports team apparel sales. Based upon the geographic location of your store, create a demographic profile of your ideal customer. This profile will help you shorten the sales cycle, identify opportunities for repeat sales and develop superior customer service techniques.

5. Hire employees with sporting sales experience. Salespeople within the sporting goods industry should have a minimum of 3 years of experience in inside sales. Your sales managers should also have experience as an athlete or sports enthusiast to assist your customers with quality service and product knowledge.

Tips & Warnings

• Contact insurance companies for E&O business insurance to cover loss and damage to the store.

• Focus on customer service and repeat customers. The success of your sporting goods store is dependent upon the happiness of your customers.

• Train your employees to exceed each customer's expectation with appropriate product recommendations and superior sales expertise.

• Every six months ask your best customers to complete customer satisfaction surveys to determine areas of improvement needed within your store.

• Find a wholesaler, either online or overseas, to help you stock your sporting goods retail business with quality merchandise.

Resources

• Sporting Goods Business - Basic advice for starting your own
• Sporting Goods Stores as a Business
• Starting a Sporting Goods Business
• National Sporting Goods Association - Running a Sporting Goods Business