T & J Soccer

T & J Soccer

Executive Summary

Great Protection, Great Socks for Great Soccer Players

Company Background	Contact Information T&J Soccer Year Founded 2012 Number of           Employees 2 _____________ Investment Opportunity $1,483.88 Annual Operating Costs* $1,513.32 Annual Sales* $30,000.00 Annual Profit* $11,650.68 Return on Sales* 38.8% Return on Investment* 785% Breakeven Units/Month* 9 Units/Month *Projected
Business Description:  T & J Soccer will be a manufacturing business providing athletes with a product that can help reduce injuries, while playing soccer, and also provide sport fans a product that will increase safety while imitating their idols. T & J Soccer is structured as a Partnership, wholly owned and operated by Jesus and Toheeb.
Business Model:  T & J Soccer will create athletic socks that will increase injury prevention whilst providing athletes with comfort and stylish good looks. The athletic socks will include a durable and light pocket-like area to the sock that will keep the shin guard in position for a long period of time and protect the most common fractured long bone in your body, the shinbone, during sports such as soccer.
Mission Statement:  T & J Soccer, a sporting goods company, will be a manufacturing business that will provide soccer players and aspiring soccer players with a product that solves one of the more bothersome aspects of playing soccer. Our athletic socks will increase injury prevention whilst also maintaining comfort and stylish good looks.
Market Opportunity
Opportunity:  Soccer is the most popular sport in the world. In the United States alone, there are over 20 million people playing soccer and millions of fans that love the sport as well. The shinbone is the most common fractured long bone in your body; due to slide tackling and kicking in soccer and other sports the risks of hurting this specific bone are very high. However, our athletic socks will increase injury prevention while helping athletes maintain comfort and stylish good looks. Straps and shin guard sleeves are products out there in the market that are made to resolve the same issue, however, they fail to maintain the shin guard in position during the entire game, therefore, my product has the competitive edge.
Target Market: Soccer players and aspiring soccer players, male and female, who are tired of the lack of support their socks provide. These individuals are serious about keeping themselves safe while keeping stylish without the use of easy to lose straps and sleeves.
Industry Overview:  There are over 20 million people playing soccer in the United States alone, and millions of fans that love the sport as well. The number of youth soccer players in the United States has doubled, to 40.04 million players, since 1990, according to the United States Soccer Federation.
Market Research: The number of high school soccer players has more than doubled since 1990, to 730,106 athletes, the fastest growth rate among any major sport, according to statistics compiled by the Sporting Goods Manufacturers Association.
Leadership
Jesus & Toheeb, CEO.  Together, T & J have over 20 years of soccer experience, which, throughout those years, have developed great team work skills and knowledge of the sport including; the demand for certain equipment, and the importance of keeping injury free. They have acquired knowledge and experience related to business through Entrepreneurship classes provided by Thornwood High School.

[T & J Soccer]

Business Plan

Great Protection, Great Socks for Great Soccer Players

1.         OPPORTUNITY RECOGNITION & BUSINESS STRUCTURE

1.1       Business Opportunity

Soccer is the most popular sport in the world. In the United States alone, there are over 20 million people playing soccer and millions of fans that love the sport as well. My product (Product Name) is made to help keep soccer shin guards in place to prevent minor or severe injuries, but at the same time be easy and quick to take off. 

1.2       Type of Business

T & J Soccer will be a manufacturing business.

1.3       Type of Business Ownership

T & J Soccer will be a Partnership, wholly owned and operated by Jesus and Toheeb. A partnership will provide us with the advantage of being able to rely on the entrepreneurial skills and financial backing of both partners, thus, resulting in increased branding, marketing, and production efficiency.

1.4       Mission Statement

T & J Soccer, a soccer goods company, will be a manufacturing business that will provide soccer players and aspiring soccer players with a product that solves one of the most bothersome aspects of playing soccer. Our athletic socks will increase injury prevention, whilst maintaining comfort and stylish good looks.

1.5       Social Responsibility

T & J Soccer will be social responsible by donating pairs of socks to those people who are in need in the community.

1.6       Qualifications

Jesus & Toheeb, together, have over 20 years of soccer experience, which, throughout those years, have developed great team work skills and knowledge of the sport including; the demand for certain equipment, and the importance of keeping injury free. They have acquired knowledge and experience related to business through Entrepreneurship classes provided by Thornwood High School.

Jesus and Toheeb share many personal characteristics and skills that are particularly valuable for starting a business and creating sport equipment. These include: a passion for soccer, strong problem solving skills, organization skills, creativity, sociability, ability to multi-task, strong math skills, good team work skills, and a great desire to succeed.

2.         MARKET RESEARCH

2.1       Market Research

Soccer is an international sport and the most popular in the world. There are over 20 million people playing soccer in the United States alone, and millions of fans that love the sport as well. The number of youth soccer players in the United States has doubled, to 4.04 million players, since 1990, according to the United States Soccer Federation.

At the same time, the number of high school soccer players has more than doubled since 1990, to 730,106 athletes, the fastest growth rate among any major sport, according to statistics compiled by the Sporting Goods Manufacturers Association.

85% of all registered players in the United States are US Youth Soccer members.

2.2       Target Market

Demographic Information:  Male and female athletes of all ages, especially soccer players.

Geographic Information:  Chicago, Illinois, area

Psychographic Information: Soccer player that desires shin protection that is effective, won’t move and leave shin unprotected, and it is easy to put on and remove.

Buying Patterns:  Customer needs new soccer equipment (Shin guards) for the start of a new soccer season or for a current season, which could be for Indoor soccer or Outdoor soccer.

2.3       Competitors

Direct Competition: Soccer is very popular; therefore, there are many stores that sell soccer equipment. Some direct competitors our business will face will be Nike, Adidas, Puma, and all other well-known soccer brands.

Indirect Competition: There are hundreds of businesses & online-businesses that focus on selling sports equipment and soccer equipment such as Soccer.com, Prodirectsoccer.com, Soccerfanatic.com, Sports Authority, Dick’s Sporting Goods, and many more. However, these businesses don’t focus on just making shin-guards, therefore, these are indirect competitors.

2.4       Competitive Advantage

T & J Soccer has three major competitive advantages:

1.     Will sell the product under a very low price compared to its competitors.

2.     Customization, being able to switch to a shin guard of your choice.

3.     Product design not needing sleeves or other materials to hold shin guards

2.5       Business Growth

Short-Term Business Goals: Throughout its first year, T & J will try to grow the business through building product awareness. T & J Soccer plans to create near 500 shin-guard socks to start the business.

Long-Term Business Goals: T & J Soccer anticipates that after a product life-cycle its product will gain popularity, and generate more customers. T & J plans to be able to sell to large companies in the future.

2.6       Challenges

Short-Term Business Challenges: The biggest challenge facing T & J Soccer in its early years will be being able to generate enough profit to continue making shin guards, basically surviving and gaining popularity.

Long-Term Business Challenges: One of the biggest long-term challenges for the company will be being able to succeed even though it will be competing against giant competitors such as Nike and Adidas.

3.         PROMOTION & SALES

3.1       Marketing Plan

T & J Soccer plans to market to soccer players and soccer fans of all ages, gender, and average annual incomes. Based on their research, T & J found that shin guards fail to stay in place throughout an entire game, which results in soccer players suffering from leg injuries.

The marketing plan will highlight the following customer benefits:

1.     Shin guard Stability while playing

2.     Comfort while playing

3.     Increase shin protection throughout an entire game

4.     Saving money on shin guard accessories

5.     Fair pricing

3.2       Promotion

T & J Soccer plans to advertise its product by engaging in activities such as: establishing a Website, promotions at local events, and using social media. This will generate more customers and make them aware of the product.

1.     Social Media: We will advertise our product on Instagram, Twitter, and Facebook, which will increase the popularity of not only our business but also our product. Through our social network page we will also offer monthly discounts.

2.     Company Website: T & J Soccer will construct its own website, which will provide full information about the product and display it. The Website will offer monthly discounts and offer a sign-up list for prospective clients. The Website will also provide ordering information and contact information.

3.     Human: We will be wearing the socks ourselves.  (Playing in games with them] By doing this, it will show to prospective customers that the product does work, and also increase the amount of potential customers.

4.     Promotions at Local Events: We will display and sell our product in local soccer events such as tournaments. We will offer flyers at each of these events, and offer discount raffles as well.

5. Strategies for Retaining Current Clients: T & J Soccer will provide current customers with exclusive discounts for their loyalty. Another strategy that we will offer to current customers is 15% discount when they refer us to a potential client, or buy more than 2 units.

3.3       Sales Methods

T & J will be setting up stands at local soccer domes and local tournaments to sell their product. They will also be selling their product out of their homes, schools, online website and college campuses.

Future selling strategies will include asking customers for referrals and recommendations of potential clients. We will get in touch with each prospect.

Steps a consumer follows to purchase my product include:

1.     Consumer will contact T & J Soccer by phone or email to order the product.

2.     Consumer will contact T & J in person such as in local events or at home, in order to buy the product or order it.

3.     Consult with customer to determine the color and size of the sock.

4.     Deliver the product to the customer.

3.4       Sales Estimates

Factor	Influence on sales
Market Analysis	Given the large number of soccer players in the Illinois area (close to 2 million). T & J must only sell to 0.0005% of this potential market to meet their annual sales estimates. T & J believes this is highly feasible.
Maximum Capacity	T & J Soccer has a maximum capacity of 25 units per week (25 hours), which means we can sell to a maximum of 100 customers per month.  As a result, T & J Soccer sales estimates are aligned with their maximum capacity and their first year sales predictions.
Break Even Units	T & J Soccer must sell at least 9 units per month to cover our operating expenses. However, our sales estimates are above our breakeven point.
Seasonality	T & J Soccer’s business will not be affected by seasonality because customers will continue to buy soccer equipment since soccer is a year-round sport.

Month	Units	Revenue
January	80	$2,400
February	80	$2,400
March	80	$2,400
April	80	$2,400
May	90	$2,700
June	90	$2,700
July	90	$2,700
August	80	$2,400
September	80	$2,400
October	80	$2,400
November	80	$2,400
December	90	$2,700
Annual Total	1000	$30,000

4.         FINANCIAL INFORMATION & OPERATIONS

4.1       Definition of One Unit

One unit is defined as a package of 2 pairs of Socks

4.2       Variable Expenses

Materials
Material Description		Bulk Price	Bulk Quantity		Quantity per Unit	Cost per Unit
Socks in large Quantity		$96.85	96pairs		2	$2
Threads		$78	100 spools		1	$0.78
Total Material Costs per Unit						$2.78
Labor
Cost of Labor per Hour	Time (in hrs) to make one unit			Total Labor Costs per Unit
$10.00	1 Hr			$10.00
EOU
Material Costs	Labor Costs			TOTAL EOU
$2.78	$10.00			$12.78

4.3       Economics of One Unit

Selling Price per Unit			$30.00
Variable Expenses per Unit
Costs of Goods Sold
Materials	$2.78
Labor	$10.00
Total Cost of Goods Sold		$12.78
Other Variable Expenses
Commission	$0
Packaging	$2.00
Other
Total Other Variable Expenses		$ 2.00
Total Variable Expenses			$14.78
Contribution Margin per Unit			$15.22

4.4       Production Process

Description of Step	Time(mins)	Cost
1.     Consult/Contact Customer to take order	15	$0.00
2.     Buy/Make Socks	60	$12.78
3.     Travel to Tournaments or Soccer Events	30-60	$12.00
4.     Set up business stand	120	$0.00
5.     Organize/deliver/display product	15	$2.50

4.5       Fixed Expenses for One Month

Expense Type	Monthly Cost	Explanation
Insurance	$0.00	T & J will not need to pay insurance, since the locations they will be selling at already have insurance.
Salary	$0.00	Toheeb & Jesus together will NOT be paid an hourly wage
Advertising	$50.00	Advertising will include posters, flyers, and social media.
Interest	$0.00	T & J Sporting Goods has a financing strategy that does not include repaying loans with interest.
Depreciation	$11.11	T & J equipment of a sewing machine will depreciate over a 3-year period of time ($400 over 36 months)
Utilities	$25.00	These costs will reflect the utilities needed to make the product.
Other Fixed Expenses	$40.00	These costs are associated with automobile maintenance and gas necessary to drive to soccer tournaments. & also include online store maintenance.
Total Fixed Expenses	$126.11

4.6       Income Statement for First Year of Operations

REVENUE			$30,000
Gross Sales	$30,000
Sales Returns	$0.00
Net Sales			$30,000
VARIABLE EXPENSES
Costs of Goods Sold
Materials	$2,780.00
Labor	$10,000
Total Cost of Goods Sold		$12,780.00
Other Variable Expenses
Commission	$0.00
Packaging	$2,000.00
Other	$0.00
Total Other Variable Expenses		$2,000.00
Total Variable Expenses			$14,780.00
CONTRIBUTION MARGIN			$15,220.00
FIXED OPERATING EXPENSES
Insurance	$0.00
Salaries	$0.00
Advertising	$600.00
Interest	$0.00
Depreciation	$133.32
Utilities	$300.00
Rent	$0.00
Other fixed expenses	$480.00
Total Fixed Expenses			$1,513.32
PRE-TAX PROFIT			$13,706.68
Taxes (15%)			$2056.00
NET PROFIT			$11,650.68

4.7       Startup Investment

Item	Why Needed	Vendor	Cost
Socks Large Quantity (192pairs)	Needed to create product.	Eroswholesale.com	$193.70
Sewing Machine	Needed to Attach pocket pieces into sock.	Overstock.Com Sears, Wall mart	$400.00
Threads	Needed to create shin guard pocket.	Target, K-Mart, Target	$90.00
Sewing Materials	Needed to enhance the use of the sewing machine and create shin guard pockets	Target, Wall mart, K-Mart	$40.00
Total Startup Expenditures			$723.70
Emergency Fund (1/2  of startup expenditures)			$361.85
Reserve for Fixed Expenses (covers 3 months of fixed expenses)			$378.33
Total Startup Investment			$1473.88

4.8       Financial Ratios

Return on Sales (ROS):

Annual Net Profit		$11,650.68	=	38.8%	≈	$0.39
Total Annual Sales		$30,000

Return on Investment (ROI):

Annual Net Profit		$11,650.68	=	790%	≈	$7.90
Total Startup Investment		$1473.88

Breakeven Units (Monthly):

Fixed Monthly Expenses		$126.11	=	8.28	≈	9 units
Contribution Margin		$15.22