How to Start a Sporting Goods Store - A Beginner's Guide to Success

Are you ready to hit a home run in the world of sports retail?

Starting a sporting goods store might seem like a daunting task, but fear not! With a little bit of preparation and a solid game plan, you can be on your way to victory.

In this beginner's guide, we'll show you how to start a sporting goods store and score big with your customers. From choosing the right location to building your inventory, creating a business plan, and promoting your store, we've got you covered. So grab your sports equipment and let's dive in!

Step 1: research and planning

Before diving headfirst into the world of sporting goods stores, it's essential to do your research and plan accordingly. Here are some key steps to help you build a solid foundation for your business:

Conduct market research and analysis

The first step in any business venture is to research your market and competition thoroughly. Ask yourself questions such as:

• Who is my ideal customer?
• What sporting goods stores are currently in the area?
• What products are they selling?
• What are their prices?
• What is their marketing strategy?
• What are their strengths and weaknesses?

By doing this research, you can gain a better understanding of your target market's needs, what products are in demand, and how to differentiate yourself from the competition.

For example, let's say you want to open a sporting goods store that specialises in football equipment. Your research might show that there are no other stores in the area that cater specifically to football players as they're more suited to general sports enthusiasts. This gives you a competitive advantage.

Create a business plan

Creating a business plan is crucial to the success of your sporting goods store. It allows you to define your goals, outline your strategy, and identify potential challenges.

Your business plan should include:

• Executive summary
• Company description
• Market analysis
• Product and service offerings
• Marketing and sales strategies
• Financial projections

Your business plan should also include details about your funding sources, inventory, and staffing needs.

For example, let's say your football equipment store business plan includes a five-year financial projection that accounts for the cost of leasing a commercial space, purchasing inventory, advertising space and hiring employees. By having a solid business plan in place, you'll be better equipped to make informed decisions as you grow your business.

Identify your target market and competition

Knowing your target market and competition is essential in the sporting goods business. 

By identifying your target market, you can tailor your product offerings and marketing strategy to their specific needs. Additionally, analysing your competition helps you identify gaps in the market and differentiate your store from others in the area.

For instance, your target market might be parents of young hockey players, high school or college hockey teams, or even adult recreational players. Let's say you're targeting parents of young hockey players. After finding a lack of competition for this target audience in your local area, you might decide to offer a wide range of youth sizes, as well as offering beginner packages that include everything a new player needs to get started. However, you may notice in your research that there are a lot of online stores that sell to your target market. Knowing you don’t have as much local competition, but high online competition, will help inform your marketing campaigns for your target audiences going forward. 

Choose a location for your sporting goods store

Choosing the right location for your sporting goods store is essential. You want to be in a high-traffic area with plenty of visibility and accessibility. You should also consider the proximity to other sporting goods stores and whether your target market lives or works nearby.

Suppose your target market is college hockey players, you might consider opening your store near a college campus or ice rink.

Even if you’re looking to start as an online-only store, and launch physical stores once your business flourishes, you’ll still need to think about where you will store any sporting goods, given they will take up plenty of space!

By conducting thorough research and planning your sporting goods business, you'll be setting yourself up for success. The next step is to put your plan into action and start building your inventory.

Step 2: legal considerations

When starting a sporting goods store, it's essential to ensure that you have all the necessary legal considerations in place to protect your business. Here are some key steps to consider:

Establish a legal business entity

One of the first legal considerations for your sporting goods business is to establish a legal business entity. This can be a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each business entity has its own set of pros and cons, so it's essential to choose the one that best suits your needs. Our helpful retail business models blog will give you the lowdown on each model to help you make informed choices.

For example, forming an LLC can provide you with personal liability protection while also being relatively easy to set up and maintain.

Obtain a business licence

Most cities and states require business owners to obtain a business licence before operating. You'll need to research the requirements for your specific location and apply for the appropriate licences.

Open a business bank account

Opening a business bank account is essential for keeping your personal and business finances separate. This will help you keep track of your business expenses and revenue more easily.

For example, let's say you're purchasing hockey equipment for your sporting goods store. By using a separate business bank account, you can track these expenses more accurately and claim them on your taxes.

Obtain business insurance

Business insurance is crucial for protecting your sporting goods business from potential losses or damages. General liability insurance is typically the minimum requirement for most businesses, but you may also want to consider additional coverage such as property insurance or product liability insurance.

Let's say a customer slips and falls in your sports store, general liability insurance can help cover the costs of any medical bills or legal fees.

By having the appropriate legal considerations in place, you can protect your sporting goods business and focus on growing it. It's essential to research and understand the legal requirements for your specific location and industry. Consider consulting with a legal professional to ensure you have everything in place.

Step 3: financing and funding

Starting a sports business, like any other venture, requires funding to get off the ground. Here are some options to consider when financing your sporting goods store:

Small business loans

Small business loans can be an excellent option for financing your sports business. You can obtain these loans from traditional banks, credit unions, or online lenders.

When applying for a small business loan, you'll need to have a solid business plan in place. This plan should outline your projected revenue, expenses, and expected return on investment. You'll also need to provide financial statements and other documentation to demonstrate your ability to repay the loan.

Personal savings and investments

Many sports business owners use their personal savings and investments to fund their ventures. This can be a good option if you have significant savings or investments that you're willing to put toward your business.

For example, let's say you have a passion for fitness and have been saving for years to open a sports equipment store. You could use your personal savings to cover startup costs such as purchasing inventory and securing a retail space.

Crowdfunding

Crowdfunding platforms such as Kickstarter or Indiegogo can be a viable option for raising funds for your sports business. With crowdfunding, you create a campaign that outlines your business idea and goals, and people can donate money in exchange for rewards or equity in your business.

For example, let's say you're developing a new line of eco-friendly yoga mats. You could create a crowdfunding campaign to raise money for production and offer rewards such as discounted mats or unique mat designs to donors.

Grants

Grants are another option for funding your sports business, particularly if you're starting a nonprofit organisation. There are many grants available from government agencies, foundations, and corporations that support sports and fitness initiatives.

For example, if you're starting a nonprofit organisation that provides sports equipment to underprivileged children, you could research grants from organisations that support youth sports and fitness programs.

By exploring these funding options, you can find the best fit for your sports business and get it off the ground. Be sure to consider the costs of starting a sports business, such as purchasing sports equipment and securing a retail space. Planning ahead can help ensure that you have the funds you need to succeed.

TIP: Learn more about business financing options in our complete guide.

Step 4: building your inventory

One of the most critical aspects of starting a sporting goods store is building your inventory. Here are some key considerations for stocking your store with the right products:

Determine your niche

Before building your inventory, it's important to determine your niche. Will you focus on a niche market like extreme outdoor sports or a more general fitness equipment approach? Understanding your target market and what they're looking for will help you build a relevant and profitable inventory.

For example, if you're targeting extreme outdoor sports enthusiasts, you'll want to stock your store with items such as rock climbing gear, hiking boots, and light-weight camping equipment.

Start with initial inventory

When building your inventory, start with an initial inventory of essential items that your target customers will need. This can include sports equipment, niche athletic apparel, and accessories such as water bottles and headphones.

For example, if you're opening a fitness equipment store, you'll want to start with items such as weightlifting equipment, treadmills, and yoga mats.

Offer a variety of products

Once you have your core, initial inventory in place, next up is to then consider where you can broaden your offering. Offering a variety of products can help attract a broader range of customers and increase your chances of making sales. Consider stocking items such as fitness supplements, athletic apparel and accessories, and recovery equipment.

For example, if you're opening a general sports store, you'll want to stock items such as baseball gloves, basketballs, and tennis racquets.

Stay on top of trends

Staying on top of industry trends can help you anticipate customer needs and ensure that you're offering the latest and most popular products. Follow industry publications, attend trade shows, and talk to your potential customers to stay informed about new and emerging trends.

For example, if you're stocking athletic apparel, you'll want to stay up-to-date on the latest styles, fabrics, and technologies.

By building a relevant and diverse inventory, you can attract and retain customers and grow your sporting goods store. Be sure to consider factors such as the initial inventory costs and the amount of retail space you have available when building your inventory. With the right products and strategies, your sporting goods store can become a go-to destination for sports enthusiasts.

Step 5: store setup and design

The setup and design of your sporting goods store are critical in creating a welcoming and engaging shopping experience for your customers. Here are some key considerations when setting up your store:

Determine the layout

When designing your store, consider the layout that will work best for your customers. Will you use an open floor plan, or will you have dedicated sections for different sports or equipment types?

For example, if you're targeting team sports, you may want to dedicate separate sections of your store to items such as soccer balls, basketballs, and baseball bats and gloves.

Choose the right lighting

Lighting plays a critical role in creating the right ambiance in your store. You'll want to choose lighting that showcases your products and enhances the shopping experience for your customers.

For example, if you're stocking athletic apparel, you may want to use bright lighting to showcase the vibrant colours and fabrics of your products. Good lighting in stores will help customers get a more accurate view of your products, and allow them to inspect the quality too - which could be great for getting more sales from dedicated or expert sports players, who have an eye for detail.

Use eye-catching displays

Eye-catching displays can help draw attention to specific products and increase sales. Consider using displays such as mannequins, product showcases, and wall displays.

For example, if you're stocking extreme outdoor sports equipment, you may want to use a wall display to showcase different types of climbing gear.

Create a welcoming environment

Creating a welcoming environment can help make your customers feel comfortable and encourage them to spend more time in your store. Consider factors such as music, decor, and store scent.

For example, if you're targeting general fitness enthusiasts, you may want to use calming and clean scents and play upbeat music to create a positive and energising environment.

Prioritise customer safety

In addition to creating a welcoming environment, it's important to prioritise customer safety. Make sure that your store is well-lit, free of obstacles, and has clear exit signs. You may also want to invest in security cameras and alarms to deter theft and ensure customer safety.

By considering these factors and prioritising the customer experience, you can create a welcoming and engaging sporting goods store that will attract and retain customers. Be sure to also consider factors such as store layout, product placement, and traffic flow when designing your store. With the right design and setup, your sporting goods store can become a go-to destination for sports enthusiasts.

Step 6: marketing and promotion

Marketing and promotion are critical components of any successful business, and a sporting goods store is no exception. Here are some key considerations to keep in mind:

Set a marketing budget

Before you start promoting your sporting goods store, it's important to set a budget for your marketing efforts. This will help you determine what promotional activities you can afford and prioritise your marketing efforts.

For example, if you're a new yoga and pilates store, you may want to focus your efforts on building a strong web presence through social media and content marketing or putting an ad out in local newspapers or trade magazines.

Build a strong web presence

In today's digital age, having a strong web presence is essential for any small business. Make sure that your website is professional, easy to navigate, and optimised for search engine optimization (SEO).

For example, if you're a boxing and martial arts store, you may want to create an online store to sell your products online, as well as a blog to share informative articles on topics such as proper equipment usage and training techniques.

TIP: With Epos Now’s Website Builder, you can create an easy-to-use website in minutes!

Utilise social media

Social media is an incredibly powerful tool for promoting your sporting goods store and building relationships with your customers. Consider using platforms such as Facebook, Instagram, and Twitter to connect with your audience and share updates on your products and services.

For example, if you're a yoga and pilates store, you may want to use Instagram to showcase your studio and the various classes you offer, as well as share inspirational quotes and tips on wellness and mindfulness.

Invest in paid advertising

Paid advertising can be a highly effective way to get your sporting goods store noticed, particularly if you're just starting out. Consider investing in advertising platforms such as Google AdWords and Facebook Ads to reach potential customers in your area.

For example, if you're a boxing and martial arts store, you may want to target ads to users who have expressed interest in combat sports or fitness.

Leverage local partnerships

Partnering with local businesses and organisations can be a great way to increase your visibility and reach a wider audience. Consider reaching out to gyms, community centres, and other sports-related businesses in your area to explore potential partnerships.

For example, if you're a yoga and pilates store, you may want to partner with local health food stores to offer discounts on healthy snacks and supplements to your customers. You could even hold sporting events with these partners.

By keeping these marketing and promotion strategies in mind and tailoring them to your specific business needs, you can increase your visibility and attract new customers to your sporting goods store.

How can a sporting goods store POS help?

A point of sale (POS) system is an essential tool for any modern sporting goods store.

With a sporting goods store POS, you can streamline your operations, manage your inventory, and process payments with ease.

One popular option for sporting goods stores is Epos Now's Complete Solution. This cloud-based system offers a wide range of features and benefits, including:

• Easy inventory management: with Epos Now, you can easily track your inventory levels and automate reordering when stock runs low.
• Customizable reporting: generate reports on sales, inventory, and customer data to help you make informed business decisions.
• Real-time insights and staff management tools.
• Tailored solutions to your sporting goods store needs: including the ability to manage online stores and help with marketing and accounting using apps and integrations.
• Streamlined payments: accept all major credit cards and process transactions quickly and securely with Epos Now's payment processing feature.

Step 7: hiring employees and managing operations

Running a sporting goods store requires a team of dedicated and knowledgeable employees. Here are some key considerations to keep in mind when hiring and managing your team:

Hire employees who share your passion

When hiring employees for your sporting goods store, look for individuals who share your passion for sports and fitness. These employees will be more likely to provide exceptional customer service and help customers find the products they need.

TIP: Learn more about hiring retail employees in our complete guide.

Obtain an Employer Identification Number (EIN)

Before hiring employees, you'll need to obtain an Employer Identification Number (EIN) from the IRS. This number will be used to report taxes and other employment-related information to the government.

Develop employee policies and procedures

To ensure that your business runs smoothly and efficiently, it's important to develop clear policies and procedures for your employees to follow. These should include guidelines for opening and closing the store, handling cash and inventory, and interacting with customers.

Provide ongoing training and development

To keep your employees engaged and up-to-date on the latest products and trends in the sporting goods industry, provide ongoing training and development opportunities. This can include product knowledge sessions, sales training, and workshops on customer service skills.

Monitor performance and provide feedback

Regularly monitoring employee performance and providing feedback can help ensure that your team is meeting your expectations and providing exceptional service to customers. Consider implementing performance metrics and conducting regular performance reviews to help keep your team on track.

By following these guidelines for hiring and managing employees, you can build a strong and dedicated team that will help your sporting goods store thrive.

Get in the game: final thoughts on starting a sporting goods store

Starting a sporting goods store can be a thrilling and rewarding adventure, but it requires careful planning, hard work, and a commitment to providing exceptional customer service. By following the steps outlined in this guide, you can set your business up for success and create a shopping experience that keeps customers coming back.

Remember, it's important to stay flexible and adaptable as you navigate the challenges of owning a small business. But most importantly, have fun! 

Starting a sporting goods store is a chance to share your love of sports and fitness with your community, and there's no better feeling than seeing your customers succeed on the field, in the gym, or on the trail. So get in the game and start building your sporting goods empire today!