Go Running Store Piers Rasmussen Executive Summary............................................................................................................ 1 Self Analysis ....................................................................................................................... 1 Geographic Analysis........................................................................................................... 2 Competitive Data ................................................................................................................ 3 Market Segment Analysis................................................................................................... 3 Location .............................................................................................................................. 4 Floor Plan............................................................................................................................ 7 Type of Ownership ............................................................................................................. 7 Organization and Management........................................................................................... 7 Proposed Products............................................................................................................... 8 Suppliers ............................................................................................................................. 9 Equipment......................................................................................................................... 10 Pricing Policy.................................................................................................................... 10 Advertizing Policy ............................................................................................................ 10 Start Up Costs ................................................................................................................... 11 Sales Forecast.................................................................................................................... 12 Income Statement.............................................................................................................. 12 Building Costs................................................................................................................... 13 Financing........................................................................................................................... 14 Conclusion ........................................................................................................................ 15 Sources.............................................................................................................................. 15 Selection Letter ................................................................................................................. 16 Print ad.............................................................................................................................. 17 Business Card.................................................................................................................... 18 0 Go Running Store Piers Rasmussen Executive Summary Go offers a wide variety of running products. From Adidas© shoes to Nike© shorts to Clif© power bars you can be assured we have it. Our clients are anyone who would like to get into running through people who have ran everyday for 40 years. Go offers equipment suited to every runner as well as the newest products and models. Running as a weight loss solution has been skyrocketing in recent years. There are few areas as well suited to running as the Rogue Valley. Go can serve both those who wish to start running and those who have been running. Both of which can take advantage of the Rogue Valley’s many running friendly features. While there is a business in the Rogue Valley area that caters to runners, driving to their location can be quite a pain for a large portion of the Rogue Valley’s population. Go plans to emphasize their dedication to running and having staff that know what they’re doing. For someone who has never been in the store it will be a great change from walking into a sporting goods store and only finding employees who know nothing about shoes and clothing but everything about skateboards. All employees will be accomplished runners who care about the sport. On start up we will have three trained employees to assist in shoe fitting, finding shoes, sales, and customer assistance. The owner plans to be aiding with these duties part time. The management of Go consists of owner Piers Rasmussen. Piers has leadership experience from being varsity on cross country as well as business experience by taking CSB through school. Piers will take a hands-on management role in the company. Using data from other retail businesses and the size of the market, Go’s sales projections for the first year are $198,100. The salary of the owner has yet to be determined I am looking for a loan of $25,300 to finance first year operation. I have invested $7,000 to cover working capital requirements. There are many runners in the Rogue Valley and we plan to advertise more than our competitors in the first year. The quality of service and the convenient location are sure to appeal to runners living in the Rogue Valley. Self Analysis It is important to be dedicated and equipped with skills to run your business because if you aren’t, you are losing quite a bit of money. The qualities and characteristics that show I will succeed are loyalty, doggedness, and a generous serving of ego. 1 Go Running Store Piers Rasmussen I haven’t had much in the way of training, but I have had experience. For example, I used to operate a business in which I made bars of soap and sold them at craft fairs. I have also performed internships through CSB and volunteered for a variety of organizations. My greatest strength would be my wide range of abilities and interests. My greatest weakness is my favoritism toward some tasks. I enjoy many activities, and trying new ones. I am often the first to volunteer for an unknown task, and the one who understands what I’m doing first. I am willing to take great risks and I do so often. Every year for the past six years I have bought at least one show pig to show for 4-H, any of which could become ill or die, or in some other way become unshowable. These risks have paid off for me in a multitude of ways. I am sure that during the course of this experience I will become even better adapted to running my business. Learning by trial and error helps everyone eventually, and I plan on using that to my advantage. By paying attention to my business I can decide how to make it grow to my advantage. If something goes wrong it’s always fixable in time. I believe that I have more than enough characteristics that allow me to be successful in this business venture. I have mentioned just a few here and have more to contribute to a competitive business. Geographic Analysis The Rogue Valley has a multitude of characteristics that make it a great place to live and run, the great trails, the hills, and the weather. However, there is a serious lack of a running store in Medford. The area, however, is perfectly situated to distribute my products. Medford is located along I-5, which connects to two major shipping ports connecting to Pacific Rim manufacturing locations. When the Siskiyou Pass is closed due to snow it’s usually for no longer than 24 hours. If I-5 is closed, the airport is close by and cargo shipping is usually uninterrupted. The mild climate in the Rogue Valley allows me to sell products all year, whereas in other areas running is not always possible during the winter. The quantity of rain can make trails hazardous for a short time, but if a runner really wants to run on a trail he or she shouldn’t have a problem. The summers are warm but it becomes bearable if you go to higher elevation or run earlier or later in the day.. The mountains around the Rogue Valley provide an enormous amount of possible trails to take, and the Rogue River is a scenic and exciting place to run. The hills around Medford, Ashland, and Jacksonville can become a runners fortress of solitude. Even the busiest of people can go for a ten minute run during lunch. 2 Go Running Store Piers Rasmussen The Rogue Valley is a haven for runners, with a fantastic array of trails and a great climate for running, there are few places like it. If ever there was a place that should inspire you to run, this is it. The Rogue Valley is a suitable place for a running store. Competitive Data Competitive Data Competition Product Price Location Promotions Rogue Valley Runners Nike Shoes $100 Downtown Giveaways at Asics Shorts $30 Ashland races. Water Bottles $20 Sports Authority Nike Shoes $100 Rogue None that I’ve Asics Shorts $25 Valley noticed. Being in Water Bottles $15 Mall the mall is good enough. Big 5 Nike Shoes $100 East TV. Asics Shorts $25 Stewart Water Bottles $15 Av. Medford Market Segment Analysis Your target market is the lifeblood of your business. And if you don’t identify your target market you are bleeding yourself to death. I created this to show how my business has identified a target market to keep itself running. The average runner is around 44 years old and is married so I predict that they will make up much of my business. I feel that these will be my best customers even though all runners need equipment, only these represent the majority