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Retail Tennis Shop Business Plan

Tennis Master Pro Shops, Inc.

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Executive Summary

1.0 Executive Summary
Tennis Master Pro Shops, Inc. operates retail tennis stores known as Tennis Master Pro Shops. Each retail location markets indoor tennis instruction and custom racket fitting. These two primary revenue streams are both high in profit margin and low in stock requirements. Custom fitted rackets are made on site from components and are marketed under the "Tennis Master" brand name. Tennis instruction and training are conducted by in-store staff under the direction of a USTA professional at each store.

A Tennis Master Pro Shop is 5,000 square feet and includes two virtual reality tennis simulators, two computer swing analysis systems, a racket fitting analysis system, and four additional practice court and net combinations. Private label and brand name tennis merchandise are also included in the product mix.

Tennis Master forecasts growth from its current 15 stores to a cumulative total of 380 stores over the next three years. Ten stores will be company owned and the remainder will be franchised. Forty "Master Franchise" licenses will be sold to qualified regional marketers in order to achieve the high rate of growth targeted by this expansion plan.

Tennis Master franchise operations and company owned stores will all be included under the corporate umbrella of Tennis Master Pro Shops, Inc. Combined revenues are forecast to be £6.8 million in 1997, £14.3 million in 1998, and £23 million in 1999. Profits are expected to be £1.8 million in '97, increase to £5 million in '98, and reach £9.3 million in '99. Margins will also increase over the same time frame from 26.7% to 40.3%. These highlights of the over-all plan are illustrated in the chart below:

Highlights



1.1 Objectives
Tennis Master has the objective of becoming the nation's largest retail indoor training facility. We are targeting 400 retail locations as our ultimate goal. Forty "Master Franchises" have been targeted, each with ten retail stores in a "Master Group." Roll-out by year is as follows:

• 1997--10 Master Franchises and 60 retail stores.
• 1998--20 Master Franchises and 120 retail stores (Cumulative: 30 Master Franchises and 180 retail stores).
• 1999--10 Master Franchises and 200 retail stores (Cumulative: 40 Master Franchises and 380 retail stores).

A table illustrating this expansion plan is in Appendix "D" (Note: this is a customer-included appendix; not part of a standard business plan).

The over-all retail objective for each store is to achieve 25% utilisation of available training time. All the projections in this plan are based on timed growth up to the 25% utilisation level. The attainment of this level of utilisation will produce highly profitable retail stores. The combination of profitable stores and successful franchise sales will be essential to the success of the plan.

1.2 Mission
Tennis Master Pro Shops, Inc. strives to offer the finest indoor tennis training available. We seek to promote the enjoyment of the game of tennis by helping tennis enthusiasts of all levels play better tennis. We will deliver this product by individual instruction in tennis fundamentals and individual fitting of a tennis player's equipment. We offer all of our products and services at times and locations convenient to our customers.

Tennis Master Pro Shops, Inc. pledges to offer an outstanding business opportunity to our franchisees and to deliver at all times the training and ongoing support outlined in our franchise programme.

1.3 Keys to Success
The keys to success in Tennis Master's business are:

1. Attainment of our store expansion goals (both company stores and franchise stores).
2. Attainment of 25% minimum utilisation of training time in each retail location.
3. Obtaining initial capitalisation.
4. Executing franchise marketing programme.
5. Executing retail marketing programme.
6. Converting existing stores to training/racket fitting format.
7. Careful attention to store locations by using economic and tennis playing demographics.
8. Management control of both company and franchise stores.
9. Management of cash flow--maintaining the pace of franchise sales--and obtaining additional investment in year one to maintain the pace of company owned store expansion.