Surprise Soccer Future Products and Services Opportunity Problem Soccer fans are very passionate about supporting their team. Here in the U.S. i believe soccer is on the rise. When i go to different stores and see the high prices on jerseys to support your favorite team or player, its outrageous! Soccer fans need Surprise Jerseys to bring more support to soccer community. Solution Our solution is to bring lower prices for jerseys to the soccer community in the U.S. Market Competition The target market is mostly young people who are often online this means that the competitive landscape for the product will include both online and offline rivals. These rivals are offering similar products and have been in business for while which means that I have to offer a product that saves the customers 20% of their income if I am to steal they, customers. I plan to lower the cost of my products and in cases where lowering the price cannot work I plan to offer gifts, free services, and benefits to the customers. The customers have the option of buying the soccer products from the internet which is risky and expensive. Buying online is risky because some companies deliver products of poor quality, some small in size while others online business never delivers at all. My solution to this problem is selling soccer product of the highest quality at a lower cost and ensures I stock all sizes so that no one misses out this I will be able to enjoy competitive sustainability for a long time. 1 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Surprise Soccer Why Us? The business will be dealing with soccer product such as balls, trophies, socks, boots and jerseys. Having identified a gap caused by the high prices for soccer kits, jersey and other soccer products the business aims to fill this gap by bringing into the market cheaper quality soccer products. Being a soccer fan and a business student I believe I have the required experience in the field necessary to guide me in making informed decisions. Furthermore, I have in the past worked as a sales person for a local soccer club in my area the club used to purchase items such as jerseys, socks, and boots in plenty and sell the extra at a higher cost to its supporters. During that period I got to meet the suppliers who I have kept contact with, and they promised to sell me the products at cheaper cost. I plan to take advantage of this and am sure that my soccer products will be the cheapest on the market. Expectations Forecast Every entrepreneur has insight on financial goals that involve increased revenue, decreased costs, improved margins and proper debt management. A rise in revenue includes an increase in the price of the products and controlled expenditure. The minimization of cost includes reduction of utility expenses, reduction of wastage and conduction of active transactions. Also, the profit margin needs to improve by reducing the business’ cost of production and overhead expenditure. The business requires the deployment of a debt strategy to lessen the number of debts. The actions above gives a revenue prospect of $4 Million in the first year of business operations. In the following years, prospects for a revenue growth of $2 Million should occur with the deployment of the company’s website. The market expectation includes a profit making period after the launching of the site. The gains implications shall be due to intensive online marketing and improved customer service. Metrics that need monitoring for the achievement of these financial goals include debts, revenue, profit margins, and expenses. 2 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Surprise Soccer Financial Highlights by Year Financing Needed Therefore, for the business to make profits the entrepreneur need to balance the have more cash flows, fewer costs, and higher profit margins. The business should also have low levels of debts. Funding plans include acquiring a grant from the Small Business Innovation Research (SBIR). The issuance of the award depends on the presentation of the business idea and application. Another source of funds includes friends and family who can contribute to the company in the form of an investment. An additional source of funds includes Angel equity that will provide investment in exchange for a partial ownership stake. Since the business relies on both self and external financing, loans need avoidance to reduce debt risk. If the funds are not sufficient the business shall engage in smart leases on company assets that save part of the working capital. 3 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Surprise Soccer Opportunity Problem & Solution Problem Worth Solving Well, my company is a soccer shop which deals with all sports gear ranging from the boots, socks, balls, etc. It also includes selling of trophies. The biggest problems I will explore for my shop is prices and fan support. Fundamentally, it is unfair an uneconomical when fans walk into the shop and found out the prices of the soccer kits and trophies have high price tags which they cannot afford. For instance, during the season fans walk in to purchase new kits for their preferred teams and clubs. However, it is during this time that the prices of the kits are high thus they often get discouraged. The Clubs, find it outrageous that when they walk in to purchase trophies for various competitions and know that they are expensive. In essence, this problem needs to be addressed as soon as possible so as to avoid the fallout of my potential clients to my competitors who are offering the same products. For that reason, the company also faces stiff competition in the soccer industry where other firms have entered the market, and they are offering their products at a slightly lower price compared to that of my shop hence it must be addressed so as to continue to remain relevant in the market. Our Solution Consequently, it is important to find a solution to the high prices and stiff competition for my soccer shop. Well, first it is crucial for my soccer shop, to examine the reasons behind the high prices of the football kits and accessories. If the reason is as a result of high cost of production, then I would look for alternative ways of producing the products which are cheaper or even import the products if importing is cheaper than creating and designing of the products. High prices can be as a result of fewer firms in the industry who are enjoying significant economies of scale. Therefore, I would look for an economist who could do a proper evaluation, so s to determine the market prices for my products as per the demands of the market. Finally, stiff competition is inventible in any business environment; therefore, to alleviate competition for my business, I would diversify my products and ensure that they are different from what my competitors are offering. And I can also provide after sales services and even decide 4 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Surprise Soccer to do the repair for the accessories incase my potential customers demand the services. Product differentiation is an effective way to counter competition, but it also ensures that the soccer products are of high value. Reducing the prices of the products encourages potential clients to continue purchasing the products hence improve my yearly or monthly incomes. Target Market Well, the target market for my soccer shop is meant for the football men and women and even their fan base. Soccer store also focuses on clubs, football associations and even corporate bodies that often organize tournaments which are interested in purchasing trophies to award the best performing teams and individual prizes. In essence, football men and women, soccer fan base and the clubs and corporates are affected by the issues of high prices. My target market, expect soccer products and trophies of good quality but they must be offered at a reasonable price. In essence, as a result of great competition for the industry my customers have sometimes been forced to seek alternative shops who offers the same products but at lower prices. The target market for instance football men and women are aged between 8 to 35 years of age because it is at this age that players are active and able to deliver the professional football. The fan base market segment, however, deals with all age groups since it is the passion of the fans who builds clubs regarding stadium fee collection and even through the purchase of their jerseys. Fan base market segment ranges those low income to middle income and wealthy. The products are designed regarding quality and prices concerning the levels of income of my target segment. Well, 70% of the soccer products are likely to go the fan base, and the other 30% is likely to be absorbed by the football men and women. Competition Current Alternatives A Competitive landscape is defined as a kind of analysis that aids a business in identifying both the online and offline rivals. Dealing with sports goods is challenging for a new start up business since there are already established businesses such as Nike which has both offline and online presence, Adidas Company whose online presence is also felt in my area. Other online competitors include e-bay and Amazon which are 5 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Surprise Soccer popular. The advantages these online businesses have is that customer may prefer them because of the home delivery service and positive reviews available on the product which is left online by customers (Treadgold & Reynolds, 2016). My advantage is that soccer for some reasons is not popular in the United States like in Europe, so most of the vendors that I would consider as direct threats are not well stocked with soccer products. This means that my business will be the only one selling strictly soccer products. The already established competitors would have being a serious threat because of the customer loyalty, but the fact that there is a need for soccer products means I will have an upper hand. I will be offering a solution to growing demand for soccer products with a minimum offline business threat from competitors. Our Advantages I believe I have an edge over my competitors since I will be selling my products at a lower price compared to them. In addition to this, the ability to sell products at a lower price compared to my rivals makes my business more sustainable since I plan to save the customers 20% of their money. Another advantage I have over the competitors will be having superior soccer jerseys which will give the customers value for their money. Most companies making jerseys do not have the wants and needs of the customer in mind; being a soccer fan myself I will ensure that my products have taste and preference of the soccer fans. The differential advantage my product has over the rivals product is being a young person my products will always be innovative. Being innovative is what will make customers prefer my products. The Jerseys will not only be better, long lasting but also accompanied by excellent customer service. All in all, the customer will buy from me because I will offer them great value by lowering prices and in case I can’t reduce the price for the jerseys I will offer the customers better services and benefits such as gifts bags to justify the high prices. 6 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Surprise Soccer Execution Marketing & Sales Marketing Plan The marketing plan should determine the characteristics and profile of the target market so as to avoid delivering the right message to the wrong persons. This plan could be achieved through an analysis of demographic characteristics of the target market so as to determine what they value and include it in the marketing plan. The differentiation strategy is also vital in the provision of a clear distinction between the product and those of competitors. Such policy will outline the reasons for why the product is unique. Factors such as the technological innovations, characteristics of the product, and price among others used in designing a differentiation strategy. Another component is the pricing strategy. The organization has to consider some factors such as liquidity of the business so as to determine the prices that the firm will charge on the products (Cravens & Piercy, 2006). The organization may use direct selling to attract more customers. Direct selling causes personal relationship which may lead to the development of customer loyalty. Also, education to the public will increase the awareness of the product among members in the society. The majority of clients are now online using different platforms. To increase your customer base, ensure that online conversation is active and maintain the interaction with their consumers. Investing in social media outreach and television or radio commercial may be the most appropriate for the business because the majority of the people have access to social media platforms and have access to either TV or radio or both hence will reach a large number of individuals. Moreover, social media may cost less hence reducing the budget. Developing a logo or branding is necessary to increase the value or customer perception of the business. Activities such as conducting market research are required to improve the decision making. Incurring costs such as research and development is necessary to improve the market research. The supply chain management to ensure efficient production process may also create expenses such as holding costs (Osterwalder & Pigneur, 2010). 7 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Surprise Soccer Sales Plan In selling the products, a company may use internet selling or direct selling to the customers. This method is useful for the majority of the people can access the internet. The provision of the description of the features of the product, prices, and shipping budget is necessary. Furthermore, selling the products in bundles may attract more customers as opposed to the sale of a single product. Provision of discounts on bundled products will attract more clients. The use of fairs and expos to sell product or services enables a business to showcase their products to customers by offering a demonstration of how to use the product. The store displays is also another method employed in the sale of goods since it provides information on the features of the products and the standard of use. Communicating to loyal customers any form of upgrade that the product has undergone is necessary improving the customer care services. Customers can determine innovations made on the product (Kiang, Raghu & Shang, 2000). Operations Locations & Facilities The location of the business should be a central place that is accessible by all the persons at any time. The site of the company is at Alabama-Birmingham, The Summit. The business offices are an adjustment next to the Apple Inc. Company. This place is appropriate since it is densely populated hence can attract more customers which will increase the sales. Moreover, there is security around the area that enables customers to access the showroom anytime. The mall is spacious enough to allow for expansion of the business. The company will also open branches across other states in the USA. Franchised firms will be opened to increase the access to our products. Technology The company will use wireless payment processing Point of Sale (POS) systems for payment of transactions in the firm. This system will increase the accounting accuracy in the recording of the sales since it has minimal errors as compared to manual recording. Furthermore, it is convenient for customers to carry around their credit cards as compared to cash. Transactions can be completed more quickly hence saving time. The wireless credit card terminal can be used for free businesses and other operations 8 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Surprise Soccer (Walker et al., 2003). This system eliminates employee theft since they do not have access to liquid cash. This system is best suited for our business since it will promote the saving of the profits. Equipment & Tools Since the firm will concentrate on selling of soccer products, the following equipment is necessary: shin guard and accessories, referee gear, goals and nets, cones and flags, field accessories, player care, and match balls among others. The business will purchase this equipment from online merchandises wholesalers. Price and quality will form the basis of comparison on the merchandise that we will select. Moreover, the equipment will be purchased in bulk so as to benefit from economies of scale. Shipping costs should also be reasonable so as reduce expenses. Milestones & Metrics Milestones Table Milestone Due Date Key Metrics The most important performance metrics for understanding the performance of a soccer shop includes the level of sales revenue, net profit margins, profitability ratios and liquidity ratios. When the sales revenue for specific time increases, this is an indication that the advertisement means used are effective, the demand for the soccer products is high for that period or probably the customers like the quality of your product. Net profit margins help understand how efficient your business is running regarding your ability to control cost and general efficiency of the procedures involved. Profitability ratios help in understanding the level of growth of the business within a given spread of time. Liquidity ratios, on the other hand, can help you assess your ability to meet current obligations of the firm. 9 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Surprise Soccer Success means an evidence of the growth of the firm in its performance metrics and the increased level of customer loyalty, market capitalization, and sustainable profits and securing of a marketing niche. It is critical to containing the direct cost of the business as this determines the overall profitability of the firm. Similarly, it is equally important to create more leads that increase your sales level, as these will generate more revenues for the company. Increasing the level of traffic on the business website consequently increase the chances that some website visitors may become some of the customers. To make sure that the business can meet its current obligations, it is important to maintain an optimal level of liquid cash in the bank. 10 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Surprise Soccer Company Overview Team Management Team Advisors 11 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Surprise Soccer Financial Plan Forecast Key Assumptions Revenue by Month 12 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Surprise Soccer Expenses by Month Net Profit (or Loss) by Year 13 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Surprise Soccer Financing Use of Funds The money shall be divided into portions to fund different aspects of the business. For instance, the personal savings and a part of the grant money will buy additional fixed assets such as other computers to facilitate the business operations. The rest of the grant will fund additional stock in the firm. Family and friends’ contribution will cater for the cost of all expenses during the financial year. Also, the remnant money will fund marketing techniques to promote more sales. Therefore, the funds will be sufficient to cover all operating costs and capital expenditure for the financial year. It will also cover the cost of additional computers and other equipment. Deployment of marketing techniques will yield more sales volume hence increase in the cash flow. Thus these funds are crucial for the operations of the business because without the finances the business operations shall stop. However, the focus will be on priority activities first if the funds are not sufficient to fund all planned expenditure. Sources of Funds There are various ways of financing the business. Some involve repayable funds while others you do not need to pay. For the firm, five-year savings shall be useful for funding the business over the starting year. Since I have a credit card, I can utilize borrowing from financial institutions, but it is not advisable. Other types of funds include bank loans, SBA loans, grants angel investors and family and friends. The financial plan involves reliance on federal and local grants, the contribution from friends and family, Angel investors, and leasing of business fixed asset to finance the first year of operation. The normal period of receipt of full capital should be within the next year. Bank Loans are the alternative if the business fails to receive grants. However, bank loans and another borrowing from other financial institutions are not advisable because of their high-interest rates. 14 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Surprise Soccer Statements Projected Profit & Loss 2017 2018 2019 Revenue Direct Costs Gross Margin Gross Margin % Operating Expenses Salary Employee Related Expenses Total Operating Expenses Operating Income Interest Incurred Depreciation and Amortization Income Taxes Total Expenses Net Profit Net Profit / Sales 15 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Surprise Soccer Projected Balance Sheet 2017 2018 2019 Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Long-Term Assets Accumulated Depreciation Total Long-Term Assets Total Assets Accounts Payable Income Taxes Payable Sales Taxes Payable Short-Term Debt Prepaid Revenue Total Current Liabilities Long-Term Debt Total Liabilities Paid-in Capital Retained Earnings Earnings Total Owner's Equity Total Liabilities & Equity 16 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Surprise Soccer Projected Cash Flow Statement 2017 2018 2019 Net Cash Flow from Operations Net Profit Depreciation and Amortization Change in Accounts Receivable Change in Inventory Change in Accounts Payable Change in Income Tax Payable Change in Sales Tax Payable Change in Prepaid Revenue Net Cash Flow from Operations Investing & Financing Assets Purchased or Sold Investments Received Change in Long-Term Debt Change in Short-Term Debt Dividends & Distributions Net Cash Flow from Investing & Financing Cash at Beginning of Period Net Change in Cash Cash at End of Period 17 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Surprise Soccer Appendix Profit and Loss Statement Profit and Loss Statement (With Monthly Detail) 2017 Jan '17 Feb '17 Mar '17 Apr '17 May '17 Jun '17 Jul '17 Aug '17 Sep '17 Oct '17 Nov '17 Dec '17 Revenue Direct Costs Gross Margin Gross Margin % Operating Expenses Salary Employee Related Expenses Total Operating Expenses Operating Income Interest Incurred Depreciation and Amortization Income Taxes Total Expenses 18 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Surprise Soccer Net Profit Net Profit / Sales 2017 2018 2019 Revenue Direct Costs Gross Margin Gross Margin % Operating Expenses Salary Employee Related Expenses Total Operating Expenses Operating Income Interest Incurred Depreciation and Amortization Income Taxes Total Expenses Net Profit Net Profit / Sales 19 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Surprise Soccer Balance Sheet Balance Sheet (With Monthly Detail) 2017 Jan '17 Feb '17 Mar '17 Apr '17 May '17 Jun '17 Jul '17 Aug '17 Sep '17 Oct '17 Nov '17 Dec '17 Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Long-Term Assets Accumulated Depreciation Total LongTerm Assets Total Assets Accounts Payable Income Taxes Payable Sales Taxes Payable Short-Term Debt Prepaid Revenue Total Current Liabilities Long-Term Debt 20 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Surprise Soccer Total Liabilities Paid-in Capital Retained Earnings Earnings Total Owner's Equity Total Liabilities & Equity 21 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Surprise Soccer 2017 2018 2019 Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Long-Term Assets Accumulated Depreciation Total Long-Term Assets Total Assets Accounts Payable Income Taxes Payable Sales Taxes Payable Short-Term Debt Prepaid Revenue Total Current Liabilities Long-Term Debt Total Liabilities Paid-in Capital Retained Earnings Earnings Total Owner's Equity Total Liabilities & Equity 22 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Surprise Soccer Cash Flow Statement Cash Flow Statement (With Monthly Detail) 2017 Jan '17 Feb '17 Mar '17 Apr '17 May '17 Jun '17 Jul '17 Aug '17 Sep '17 Oct '17 Nov '17 Dec '17 Net Cash Flow from Operations Net Profit Depreciation and Amortization Change in Accounts Receivable Change in Inventory Change in Accounts Payable Change in Income Tax Payable Change in Sales Tax Payable Change in Prepaid Revenue Net Cash Flow from Operations Investing & Financing Assets Purchased or Sold 23 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Surprise Soccer Investments Received Change in Long-Term Debt Change in Short-Term Debt Dividends & Distributions Net Cash Flow from Investing & Financing Cash at Beginning of Period Net Change in Cash Cash at End of Period 24 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Surprise Soccer 2017 2018 2019 Net Cash Flow from Operations Net Profit Depreciation and Amortization Change in Accounts Receivable Change in Inventory Change in Accounts Payable Change in Income Tax Payable Change in Sales Tax Payable Change in Prepaid Revenue Net Cash Flow from Operations Investing & Financing Assets Purchased or Sold Investments Received Change in Long-Term Debt Change in Short-Term Debt Dividends & Distributions Net Cash Flow from Investing & Financing Cash at Beginning of Period Net Change in Cash Cash at End of Period 25 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
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