Sports Equipment Retail Business Plan

Financial Plan

Keith's Sporting Goods will regularly monitor all financial statements because they have a direct correlation with the health of our business. We have forecasted into the future with a steady but moderate growth rate where sales will grow by 2% every month. All sales will be in cash leading to positive cash flows whenever asset acquisition is maintained. Profits will be reinvested into the business in hopes of future product and store expansions. If no appropriate investment opportunities present themselves excess cash will be placed into the market through a respected financial consultant.

7.1 Important Assumptions

Key assumptions:

• Growth rate of 2% per month
• Daily sales: shoes six per day @ $80 each, and apparel 24 items/day @ $25 each
• Growth will be steady throughout the year.

7.2 Break-even Analysis

The following table and chart show our break-even point.

7.3 Projected Profit and Loss

Due to working with low overhead, we predict early profits in the life of our business. Depending on the accuracy of our forecasts, we will adjust the amounts spent on marketing and other long-term assets that will add value to our business.

7.4 Projected Cash Flow

As a retailer, we do not sell on credit, but all of our invetory purchases are made on account. Our net cash outflows are largely a result of repaying the initial loan.

7.5 Projected Balance Sheet

Among the importance of monitoring liabilities and assets, cash will be of particular importance to our organization. We will monitor this section of the Balance Sheet constantly. Without cash we will be unable to react to market changes or survive through tough economic cycles. Our net worth will improve as we grow and pay off the initial loan.

7.6 Business Ratios

The table below contains important business ratios from the sporting goods shops industry (5491), as determined by the Standard Industry Classification (SIC) Index.