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Retail Tennis Shop Business Plan Leave a comment
Tennis Master Pro Shops, Inc. owns and operates tennis retail stores, known as Tennis Master Pro Shops. Each retail location offers indoor tennis instruction and custom-fitting. These revenue streams provide high profit margins with low inventory requirements. The rackets can be custom-fitted on-site from the components. They are sold under the brand name “Tennis Master”. Instruction and training for tennis are done in-store by staff members under the guidance of a USTA professional.
A Tennis Master Pro Shop spans 5,000 square foot and features two virtual reality simulators, two computer swing analyses systems, and four additional net and practice court combinations. The product range also includes brand-name and private label tennis merchandise.
Tennis Master anticipates a growth of 15 stores to a combined total of 380 stores within the next three year. Ten stores will remain company-owned, while the rest will be franchised. Forty “Master Franchise” licenses will be sold to qualified regional marketers in order to achieve the high rate of growth targeted by this expansion plan.
Tennis Master franchises, as well as company-owned stores, will all fall under the corporate umbrella Tennis Master Pro Shops, Inc. Annual revenues combined are projected to reach $6.8million in Year 1, $14.3million by Year 2, and $23million in Year 3. Profits will be $1.8million in Year 1. They will rise to $5 million by Year 2 and then reach $9.3million by Year 3. In the same timeframe, profits will rise from 26.7% down to 40.3%. These are just a few highlights of the overall plan. See the chart below.
1.1 Objectives
Tennis Master has the objective of becoming the nation’s largest retail indoor training facility. Our ultimate goal is to reach 400 retail locations. We have identified 40 Master Franchises, each with 10 retail stores within a Master Group.
- Year 1–10 Master Franchises and 60 retail stores.
- Year 2–20 Master Franchises and 120 retail stores (Cumulative: 30 Master Franchises and 180 retail stores).
- Year 3󈝶 Master franchises and 200 retail locations (Cumulative : 40 Master franchises and 380 retail shops).
A table illustrating this expansion plan is in Appendix “D” (Note: this is a customer-included appendix; not part of a standard business plan).
The over-all retail objective for each store is to achieve 25% utilization of available training time. All the projections in this plan are based on timed growth up to the 25% utilization level. The attainment of this level of utilization will produce highly profitable retail stores. It is essential that the plan has profitable stores and franchise sales.
1.2 Mission
Tennis Master Pro Shops, Inc. strives to offer the finest indoor tennis training available. We aim to increase the enjoyment of tennis and help all levels of tennis players play better. We will deliver this product by individual instruction in tennis fundamentals and individual fitting of a tennis player’s equipment. All of our services and products are available at convenient times for our customers.
Tennis Master Pro Shops, Inc. pledges to offer an outstanding business opportunity to our franchisees and to deliver at all times the training and ongoing support outlined in our franchise program.
Success Keys 1.3
Here are the keys to success for Tennis Master’s Business:
- Attainment & fulfillment of our store expansion targets (both company stores, and franchise stores).
- Attainment of 25% minimum utilization of training time in each retail location.
- Obtaining initial capitalization.
- Executing a franchise program.
- Retail marketing programs.
- Conversion of existing stores into a training/racket fitting format.
- By using economic and Tennis playing demographics, pay careful attention to store locations.
- Both the company and franchise stores are under management.
- Cash flow management.
