A Business Plan for the Development of Outdoor Quest Sporting Goods Store

Abstract

A business plan was developed to investigate the feasibility of owning and operating a retail sporting goods store. White Bear Lake, MN was selected and examined as a potential site for the business. Products of the business will include equipment for camping, backpacking, canoeing, kayaking, in line skating, ice skating, snowshoeing, and cross country skiing. Services will include custom fitting, prepurchase testing, equipment repair, and equipment rental. The business will be highly customer oriented. Demographic factors including population, age, gender, and income were examined to determine potential market size. Growth rates for market population and income levels were examined. Market population was projected to increase 15.5% from 1990 to 1998. Median household income was projected to increase 9.6% from 1990 to 1998 and average household income was projected to increase 26.2% from 1990 to 1998. Market participation rates were determined to project market share and annual sales for the first year of operation. Annual sales were projected to be $900,000 for 1996; $1,071,000 for 1997, and $1,274,490 for 1998. Profit margin was estimated to be 1.1% in 1996; 4.1% in 1997, and 5.4% in 1998. Return on assets was estimated to be 3.1% in 1996; 12.2% in 1997, and 16.0% in 1998. It was concluded that Outdoor Quest would be a profitable business venture in the White Bear Lake, MN location.