Sports Medical Equipment Business Plan Leave a comment

Professional Athletic Equipment, Inc. will market and manufacture a protective device that young athletes can use. The trade name “Body Armor” will serve as brand name and identity name for the product. This product is designed to prevent injury from blunt trauma to your abdomen, chest, or side. This device can also prevent sudden death due to commotio cordis (heart attack caused by external trauma). This injury is more common in baseball than in soccer. The United States has filed a patent application for the device.

This business plan is part our regular business planning process. This plan is revised semi-annually.

In the next full-year, we will produce and market the initial product. None of the sales have taken place to this point.

On average, sales will be 750 units per month in the first year of marketing. This will bring the total year’s sales volume to $242,550. The management expects to see sales surpassing $4 million in the third year and profitability by year three. Before taxes, the expected year three profit is $593570.

Our keys to success and critical factors for the next year are, in order of importance:

• Initial product production on first three sizes.
• Test marketing and basic research to determine product acceptance.
• Multi-channel distribution is being tested.
• You can test marketing media, PR pricing, product endorsement and pricing plans.
• Goal of recouping production start-up costs and first year depreciation on initial three molds in year one.

And finally:

• Limiting your loss to less than $200K in the second year
• Reaching limited retail distribution in the third year (2nd sales year).
• In the third year, achieve profitability.

1.1 Objectives

Professional Athletic Equipment, Inc. has set a modest goal for year one sales. When these minimums are met, we will close to breaking even for the first year. They will also allow for limited expansion in year two.

Here are the sales targets for each size

• Units as small as 4500
• Medium–2250 units
• Large&#82112250 units

These targets will result in year-one sales volume of $242.550, which will confirm that the test was successful.

To maintain these modest sales levels, costs will be managed to ensure that margins are maintained. Sales can be increased if sales exceed these targets, but additional production or stepped-up marketing activities can be implemented quickly. However, additional capital may be needed on short notice to fully implement growth. Some sales may not be made in year 2, but that is to be expected.

1.2 Mission

Professional Athletic Equipment, Inc., an American manufacturing and marketing company, is dedicated to protecting young athletes against tragic injury and death. We plan to create quality, tested products as well as sufficient profit to provide fair returns for our investors. Our first product, the “Body Armor”, will be sold by targeted direct marketing to parents of youth baseball players. The &#8220Body Armor&#8221 is intended to reduce injury and increase athletic performance. It also has confidence-enhancing properties that will appeal to young sports players. The ‘#8220’Body Armor is designed to promote the enjoyment of sport by young people. We are aiming to expand the company and position our brand as a pioneer in its niche. After our marketing platform is established, we will continue to finance internal and external growth. Once that happens, we will develop and acquire additional products. We will conduct our business in accordance with Christian values and strive to maintain a friendly, fair and creative work environment which respects ideas, hard work, and the dignity and worth of the individual.

1.3 Keys To Success

Professional Athletic Equipment, Inc. has the following keys to its success:

• Product Quality. New molds are required and production must start. Suppliers of all components must be found and initial orders placed. With rework and waste kept to a minimum, delivery and assembly must be done on time.
• Marketing. Professional Athletic Equipment, Inc. is only successful if it has a quality product. The “Body Armor” is a new product and consumers must be educated as to its availability and purpose. To achieve success, it is essential to control media costs in order to generate sales.
• Management.

While there is a temptation to grow a business exponentially, it is critical that Professional Athletic Equipment, Inc. management concentrate first on proving product salability within certain price points, margin requirements, distribution channels, and establish consumer acceptance. These answers will allow for controlled expansion, which requires more production and greater investment in inventory.