A retail business of sporting goods and equipment can never go out of style for sports enthusiasts. Parents enrolling their kids in community sports teams, leagues and coaches are supporters of the multibillion dollar industry. The owner may set up the sports store specializing in her knowledge and background of a particular sport such as baseball, volleyball, basketball or football and carry related equipment, clothing and accessories. Or, she may operate a general sports store with something for all interests and all ages. Either way, a sports store has its expenses to operate effectively.
Marketing and Promotions
Depending on the budget of the sports store, marketing and promotions can boost the company's sales through local television and radio stations, university and local newspapers, brochures and fliers, as well through the company's website. The business can also consider sponsoring competitors in a related annual sporting event as competitors wear jerseys or other attire with the store's logo. If the budget permits, a raffle for a bike or other recognized product of your store could attract a large crowd. Approximately $100 per month on average with $1500 during the summer and holiday season is an estimated marketing budget for a sports store.
Legal and Accounting
Legal and accounting costs are likely to be highest upon starting your sports business, especially if you are purchasing because you may need a letter of intent and an asset purchase agreement itemizing the business's inventory such as bicycles, golf equipment, equipment bags, athletic wear and sports gear. If you are not purchasing a sports store but starting from the ground up, you will still incur accounting fees to list inventory and set up the books. Initially, professional costs for the sports store can add up to around $10,000.
With a sporting goods store, protecting yourself and your products from liability in the store and during transportation is a priority. If you are leasing your sports store premises, content insurance is required. Adopting aggressive policies can help to protect your company from serious claims. For example, if you sell a bicycle that malfunctions and severely injures the rider, you could be sued for breach of warranty and product liability. Prepare to budget $2,000 for insurance costs initially from your sports store budget.
Gaining as much exclusivity as possible is key when renting space for your sports store, particularly if you are planning on establishing yourself in a mall. A clause in your sports store lease prohibiting the sale of sporting goods by any other tenant will protect you from competition but may require some negotiation. If you carry ski equipment or bikes, an ideal location for your sports store would be close to popular slopes and trails.
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