Joel Newsom plans to start an online martial arts equipment business called MMA One Stop Hit Shop. The business will sell items like gis, belts, gloves and other gear. It will be based online and out of Newsom's home. He projects sales of over $7,000 in the first month, growing 2% per month for the first year. With $10,000 in startup funding, Newsom believes the business can become profitable within a year and continue growing over the next 3 years by expanding product offerings and increasing online marketing.
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2. Executive Summary:
• M.M.A. One Stop Hit Shop will be in the business of
providing martial arts apparel and equipment to athletes
of all ages, sizes and experience levels.
• To start off the company will be web based. With
M.M.A.(mixed martial arts) on the rise, there is a number
of organizations, teams and individuals in the area.
• The base of operations would be my residence. We do
plan to expand and possibly open a store front in the
area. Financing through lending association or federal
grants is in need in the form of a start up loan. This will
be used to buy products from manufactures and also pay
for supplies.
3. Objectives:
• Brand recognition. I have talked to the
manufactures and products can be made with
their logos or M.M.A. One Stop Hit Shop logo.
Customers can even custom order their names
or logos on products.
• Operate at a level where company is profiting
after the first year!
• Growth and expansion within the first 3 years.
• Work to achieve the growth rate of 3.6%
minimum and service 25,000 people/ year.
4. Mission Statement:
• M.M.A. One Stop Hit Shop will bring
customer the quality products they
demand at a price they can afford.
• We look to establish long term
relationships with customers since mixed
martial arts is growing exponentially world
wide.
5. Company Summary:
• M.M.A. One Stop Hit Shop will provide
customers with quality martial arts
products. Not only that,but will give
customers tools they need to help them
achieve their physical and mental goals.
6. Start- up Requirments:
1. get logo trademarked - $400 for online store service and logo marked goods.
2. purchase of domain name "MMAOneStopHitShop.com" for online store, also
purchase and maintance fee of online store @ ebay.com - $100
3. Initial product inventory purchase:
• (10) Gracie Barra Jiu Jitsu Gis- $ 520
• (10) BJJ Belts- $40
• (15) Custom Head Gear and (15)Focus Mitts- $780
• (50) Custom Amateur MMA Competition gloves- $800
• (20) Custom logo fight shirts- $400
• (25) Custom Boxing Hand Wraps- $45
• (100) Custom Mini Keychain Advertising- $80
• (100) Custom Mouth Guards with Case- $260
• (10) Custom Shin Guards- $250
• (20) Custom MMA Training Gloves- $360
• (20) Custom MMA Fight Shorts- $350
• (50) Custom Gym Bags- $600
• (25) Cornerman Bag w/ Accessories- $850
• (25) Custom Boxing Glove- $610
7. Start Up Requirments: (continued)
1.Office Supplies- $ 1000
2.Advertisment- $ 500
This brings my grand total of funding
required to: $10,000
12. Market Analysis Summary:
The Gennesee county area host several Mixed
Martial Events. There is at least one a month. I
plan to target these events for my local sales.
Not only those but dojos and gyms alike.
Majority of my sales will be done over the
internet. Cnet reports that the average person is
online 13 hrs. per week. Through advertising on
social media sites like facebook, twitter, youtube
and myspace, I can reach a wide array of
consumers. Facebook alone I have a base of
30,000,000 people that could see my add.
13. Competition And Buying Patterns:
Locally there isn't very much competition at all. In fact there are only 10 martial arts stores in the whole
state of Michigan.
Ballard Enterprise
245 Carey Street, Deerfield MI
Sporting Goods Stores and Bicycle Shops
David Gerrard
(Le Costa De Armory)
44 Orford Court, Bay City MI
Sporting Goods Stores and Bicycle Shops
East West Karate
HQ
5330 Division Avenue S, Grand Rapids MI
Sporting Goods Stores and Bicycle Shops
Golden Dragon
32048 Utica Road, Fraser MI
14. Competition And Buying Patterns:
(continued)
Kim's Sports Martial Art Supply Inc
406 E Liberty Street, Ann Arbor MI
Sporting Goods Stores and Bicycle Shops
Kwon Inc
(Kwon Martial Arts)
3420 Broadmoor Avenue SE # 1, Grand Rapids MI
Sporting Goods Stores and Bicycle Shops
Lightning Kicks Martial Arts
826 Mills Street, Kalamazoo MI
Sporting Goods Stores and Bicycle Shops
Martial Art Supplies
7329 N Lilley Road, Canton MI
Sporting Goods Stores and Bicycle Shops
15. Competitions And Buying Patterns:
(continued)
So who is buying mixed martial arts gear? Actually
the target consumers are males in their teens to
early 40's. With exciting youthful sponsors such
as: THQ, Microsoft, Metro Pcs and Burger King
the UFC draws a younger crowd. Then again
they also have the more adult oriented sponsors
like: Bud Light, Harley Davidson, and Safe Auto.
Xyience and Tapout fit into both catagories.
With the UFC paving the way people of all ages,
races, sexes and sizes are hopping on the
mixed martial arts train.
16. Strategy And Implementation:
1. Distribution through web store
http://freewebstore.org/Mma-One-Stop-Hit-Shop
soon to be mmaonestophitshop.com
2. Distribution through my EBay store
3. Vendor at local fights
4. Raffle prize at local fights
5. local gyms and schools
6. Advertise on
Facebook,Youtube,Twitter,Myspace,
Ecommerce, Craigslist, Google etc.
7. Brochures, Business Cards, and Placemat Ads.
17. Competitive Edge:
• MMA One Stop Hit Shop has the
competitive edge because we can sell our
quality products cheaper than already
established fight wear names, i.e. ;
Tapout, Combat Sports, Pretorian, Kawaii,
MMA Elite. With the state of todays
economy people will appreciate quality
products at a lower price.
18. Sales Forcast:
Our primary focus will be on the Jiu Jitsu gi's.
They are in the most demand right now and
have the greatest markup value. We will also be
selling an array of martial arts equipment. I
expect strong growth in the first year due to
intense high volume marketing and exposure. I
am expecting sales to grow 2% each month for
the first year then maintain an industrial average
of 11.5% per year.
22. Financial Plan:
MMA One Stop Hit Shop will regulary
monitor all financial statements because
they have a direct correlation with the
health of the business. I have forcasted
steady growth into the future with a
moderate steady growth rate. Profits will
be reinvested back into growth and
development of MMA One Stop Hit Shop.
23. Important Assumptions:
• Growth rate of 2% a month for the first year
• Steady growth rates throughout the year
• Gracie Barra Gis selling 10 the first week at
$120/ set.
• Selling 10 bundle packages my first month at
$200/ set minimum, there will be larger sets
aswell.
• I will sell a minimum of 15 individual items other
than key items listed above per month.
Yes I have projected this as the outcome but this is
no guarantee.
28. Appendix: (continued)
• Slides 18, 19, 20 & 21:Sales Forcast
• Slide 22: Financial Plan
• Slide 23: Important Assumptions
• Slide 24: Break Even Report
• Slide 25: Pro Forma Profit - Loss Chart
• Slide 26: Sources for Research
• Slides 27 & 28: Appendix
• Slide 29: In Closing
29. In Closing:
Thank you for your time and consideration.
MMA One Stop Hit Shop
Joel Newsom
5261 E. Bristol Rd.
Burton, Mi. 48519
(810) 742- 0392
email: mmaonestophitshop@gmail.com