The sportswear industry started to increase in value in 2015 and has gained a lot of traction ever since, with the industry projected to have a value of $89.22 billion by 2025. Whether this is caused by the spike in the number of sports enthusiasts or because of the increase in interest in health and fitness is unknown. What we do know is that starting a sporting goods retail business is a profitable business venture. However, this isn’t for everyone. As is the case with starting any business, there are many things that you need to consider before starting a sporting goods retail store.
Even when the sporting goods retail industry is a lucrative venture, it has a very prohibitive initial cost. You have to account for your initial inventory, employees, insurance, retail space, software, and more. You also have to ensure that you have enough money to keep your store operational. Fortunately, people have also been found to depend on online sporting goods stores, which should also help you circumvent the high costs of renting retail space.
You also have to consider where you’re going to get your funding from. You don’t necessarily have to shoulder the full costs of setting up your investment capital, especially when there’s an abundance of business loan lenders in the market.
While taking a general approach may seem like a safe approach, you’re going to be far better off with specializing in one or two sports. Customers prefer niche stores because they tend to have a more complete catalog than general sporting goods retail stores. For example, apart from selling baseball equipment, you can also consider selling gifts for baseball lovers. This will also help you distinguish your business from your competitors.
Next, you’re also going to have to establish a working relationship with supply vendors so you’re able to cater to any orders you’re bound to get especially for items that are in-demand. Trade magazines and the NationalSporting Goods Association’s website are good places to find supply vendors. Once you’ve found a vendor, always ask for a retail information sheet to help you compute for initial investment costs.
Selling Used or Refurbished Equipment
Some entrepreneurs also sell used equipment that they purchase from consumers in order to increase their profit margins. This is rather risky since used equipment will sometimes have hidden defects that could significantly decrease or even nullify a product’s value, Faulty equipment can also cause serious injuries, which would get you in trouble with the law. Remember that the quality of the products you sell is directly linked to your store’s reputation.
If you plan to restore and resell used equipment, it’s very important that you maintain strict inspection standards so that you’re able to ensure that the equipment you’re buying can fetch you a good profit after being fixed up.
If you do decide to open a sporting goods retail store, it should be done based on forecasted profitability and sustainability. Don’t forget to observe the surrounding market to account for conditions that you should be wary of or opportunities that you should capitalize on.