Office Space Expenses

$0

$7,000

Employee & Freelancer Expenses

$151

$352

Website Costs

$223

$7,215

Business Formation Fees

$5,600

$20,400

Equipment & Supply Expenses

$66

$700

Retail Business Expenses

$1,250

$11,650

Inventory Expenses

$350

$14,750

Software Expenses

$162

$3,094

Advertising & Marketing Costs

$75

$5,286

Total Startup Costs

$7,877

$70,447

DICK'S Sporting Goods

dickssportinggoods.com

2,255

Bass Pro

basspro.com

5,334

SportsDirect.com – The UK’s No 1 Sports Retailer

sportsdirect.com

8,476

Champs Sports

champssports.com

15,431

rebel

rebelsport.com.au

16,972

SCHEELS: Discover Your Passion

scheels.com

23,652

BBB Sports® Official Sporting Goods Store

bbbsports.com

31,670

INFINITE DISCS

infinitediscs.com

47,188

Jack Rabbit

jackrabbit.com

60,190

Mitchell & Ness

mitchellandness.com

69,609

Decathlon Australia

decathlon.com.au

74,479

Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

Ability to start your business from home

It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!

Meaningful business connections

You never know who you will meet as a sporting goods store. This could be the start of an incredible business opportunity!

High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

Easy to encourage "impulse buy"

In the sporting goods store, you have a much higher chance of encouraging your customers to buy on impulse - you can easily alter the price, placement, packaging, and promotional value to influence the decision of your buyer.

Unlimited income potential

With starting a sporting goods store there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.

Longer Sales Process

A sporting goods store can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.

Low margins

The gross margins for your sporting goods store are typically around 37%, which can make it more challenging to incur new expenses and maintain profitability.

High employee turnover

In the sporting goods store, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

Taxes

As a sporting goods store, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

Niche Market

A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.

High overhead expenses

With starting a sporting goods store, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.