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1. Sports Agency Business Plan For Starting Your Own Company
This business plan outlines the formation of a sports agency. The business plan for a sports agency will help you in several ways to run your business more efficiently. First, it can assist you in defining your business goals and objectives. Secondly, it can help you formulate marketing strategies. As a third benefit, it can help you develop a good financial plan. The fourth benefit is the ability to assess your opportunities and risks. Finally, it can assist you in preparing your business for the future.
Several sports businesses can benefit from this business plan, such as a gymnastic instruction business plan, personal training business plan, indoor sports complex business plan, fitness center business plan, etc.
2. Executive Summary
The Business
The [Company] is a professional [sports name] representation and scouting agency. The company will be based in [Country]. As a full-service provider of [sports name] representation services, the company will address the needs of domestic and international clients.
The agency’s focus will be on providing athletes with a well-rounded and comprehensive approach to enhancing their athletic, personal, and professional abilities.
The sports agency business plan sample includes contract negotiation, player representation, player scouting, and player management. The company strives to provide our clients with the highest quality service and support so they can focus on their craft. It is our goal to help our clients achieve their goals, whether they are on or off the field.
Business Target
The company expects to generate revenue by charging commissions on contracts it negotiates for clients. The purpose of writing a business plan for a sports agency is to help in contract negotiation, marketing, public relations, financial planning, and investment advice.
The company aims to become the premier sports agency in [Country]. This goal will be achieved by expanding into new markets and acquiring other sports agencies.
3. Company Summary
Company Owner
[Company] will be owned by [owner name]. The company owner has put his time, money, and energy into starting the company and is experienced in sports. He has been serving in various sports agencies for the past 15 years.
Why The Sports Agency Is Being Started
The [owner name] had over 15 years of experience as a professional athlete, as well as experience working for a sports agency. His extensive experience in the sports industry has given him an understanding of how to start a sports agency business. His services will be available to athletes at all stages of their careers, from high school to professional.
How The Sports Agency Will Be Started
The sports management agency business plans to enhance this business in a way that every athlete will find it a perfect place for their representation, contract negotiation, marketing and branding, public relations, and event planning.
Note
The operational business plan includes a small staff of employees, including a general manager, an assistant general manager, and a few support staff members. A variety of marketing techniques will be used to attract clients, including online advertising, print advertising, and word-of-mouth.
In collaboration with financial experts, [Owner Name] forecasts the following startup costs, including expenses, assets, investments, and loans.
Below is a list of detailed start-up requirements, total startup expenses, total assets, total start-up funding, total funding required, total assets, total liabilities, total planned investment, total capital, total liabilities, and total funding:
| Start-up Expenses | |
| Legal | $136,800 |
| Consultants | $0 |
| Insurance | $14,000 |
| Rent | $37,000 |
| Research and Development | $14,000 |
| Expensed Equipment | $29,000 |
| Signs | $3,200 |
| TOTAL START-UP EXPENSES | $234,000 |
| Start-up Assets | $235,000 |
| Cash Required | $174,000 |
| Start-up Inventory | $40,000 |
| Other Current Assets | $248,000 |
| Long-term Assets | $225,600 |
| TOTAL ASSETS | $922,600 |
| Total Requirements | $1,156,600 |
| START-UP FUNDING | |
| Start-up Expenses to Fund | $234,000 |
| Start-up Assets to Fund | $922,600 |
| TOTAL FUNDING REQUIRED | $1,156,600 |
| Assets | |
| Non-cash Assets from Start-up | $1,197,600 |
| Cash Requirements from Start-up | $276,500 |
| Additional Cash Raised | $48,000 |
| Cash Balance on Starting Date | $36,000 |
| TOTAL ASSETS | $1,558,100 |
| Liabilities and Capital | |
| Liabilities | $19,000 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $52,000 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $71,000 |
| Capital | |
| Planned Investment | $1,156,600 |
| Investor 1 | $0 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $1,156,600 |
| Loss at Start-up (Start-up Expenses) | $373,500 |
| TOTAL CAPITAL | $1,530,100 |
| TOTAL CAPITAL AND LIABILITIES | $1,601,100 |
| Total Funding | $1,156,600 |
4. Services Of Sports Agency
The purpose of the business plan sports agency is to raise $, for the development of a sports management company, the services of the business plan include:
- Contract negotiation and execution with sports teams and leagues
- Providing training, sponsorship, and financial advice to athletes
- Providing endorsement and marketing advice to players
- Supporting a player’s transition to retirement
- Assisting the family of a player with concierge services
- Organizing and executing special events for players or teams
- Organizing a player’s or team’s travel and accommodations
- Media relations assistance for a player
- Maintaining a team’s website and social media accounts
- Provide athletes with an opportunity to showcase their talents in front of scouts and coaches by organizing tryouts and open practices
- Follow the latest developments in the sports industry
- In starting a sports management company, the owner has to hire professional staff and experienced management.
- Providing legal services to clients
- Helping the athletes with publicity
- Helping clients get the best insurance policies
5. Marketing Analysis
The most important component of a sports agency business plan example is its accurate marketing analysis. The company’s marketing analysis includes market trends, market segmentation, business target, and product pricing.
Market Trends
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The sports agency industry is predicted to grow in the number of agencies, clients, and money spent on its services in the next three years.
Marketing Segmentation
Marketing strategies for sports agencies in sports agency business plan examples vary depending on their target clientele. For example, if the agency targets professional athletes, its marketing strategy will make use of sports media, online advertising, and personal networking to reach this demographic.
Business Target
This business plan will explain how to start a sports management company that caters to both individuals and teams. The goal of this sports agency is to become the exclusive agent for all professional athletes in the United States. This will be accomplished by providing a higher level of service and support to clients than any other sports agency in the country.
Product Pricing
Depending on the target market and the services provided, the price of a sports agency’s products can differ greatly. For example, a high-end sports agency that caters to professional athletes may charge a much higher rate than a smaller agency that caters to amateurs. The fees charged by sports agencies are usually hourly or flat.
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Youth Sports | 40% | 34,000 | 40,800 | 48,960 | 58,752 | 70,502 | 10.00% |
| High School Sports | 20% | 17,000 | 20,400 | 24,480 | 29,376 | 35,251 | 10.00% |
| College Sports | 10% | 8,000 | 9,600 | 11,520 | 13,824 | 16,589 | 10.00% |
| Professional Sports | 30% | 24,000 | 28,800 | 34,560 | 41,472 | 49,766 | 11.00% |
| Total | 100% | 83,000 | 99,600 | 119,520 | 143,424 | 172,109 | 10% |
6. Marketing Strategy Of Sports Agency
Competitive Analysis
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According to the sports marketing agency business plan competitive analysis, the landscape of sports agencies is extremely competitive. Many large, well-established firms have been in business for many years. In addition to their substantial resources and experience, these firms are well-connected in the industry. Smaller firms are also trying to break into the industry.
Sales Strategy
After analyzing the sports agency business plan pdf which includes marketing analysis, the sales strategy is designed to generate revenue and profit for the company. This strategy includes a plan for marketing, advertising, and public relations. Additionally, it includes strategies for acquiring new clients, retaining existing clients, and expanding the company’s reach.
Sales Monthly
The Sports Agency plans to generate monthly income through the sale of sports performance training services. The sports performance training program will generate revenue for the agency by selling memberships. According to our experts, the following sales are expected monthly.
Sales Yearly
The sports agency sales business generates revenue by selling sports merchandise, tickets, and other services. According to our experts, the following sales are expected yearly.
Sales Forecast
Our sports agency anticipates relatively consistent sales throughout the year. In terms of sales, we don’t expect any major spikes or dips, but rather a steady stream of revenue. Below is a forecast of our sales:
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Selling Memberships | 3,000 | 3,180 | 9,540 |
| Training Services | 2,000 | 2,120 | 2,247 |
| Exercising Services | 1,500 | 1,590 | 1,685 |
| Selling Merchandises | 2,500 | 2,650 | 2,809 |
| TOTAL UNIT SALES | 9,000 | 9,540 | 16,282 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Selling Memberships | $985.00 | $1,142.60 | $1,325.42 |
| Training Services | $1,540.00 | $1,786.40 | $2,072.22 |
| Exercising Services | $2,000.00 | $2,320.00 | $2,691.20 |
| Selling Merchandises | $800.00 | $928.00 | $1,076.48 |
| Sales | |||
| Selling Memberships | $2,955,000.00 | $3,633,468.00 | $12,644,468.64 |
| Training Services | $3,080,000.00 | $3,787,168.00 | $4,656,701.77 |
| Exercising Services | $3,000,000.00 | $3,688,800.00 | $4,535,748.48 |
| Selling Merchandises | $2,000,000.00 | $2,459,200.00 | $3,023,832.32 |
| TOTAL SALES | $11,035,000.00 | $13,568,636.00 | $24,860,751.21 |
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Selling Memberships | $1,011.00 | $1,112.10 | $1,167.71 |
| Training Services | $1,490.00 | $1,639.00 | $1,720.95 |
| Exercising Services | $1,290.00 | $1,419.00 | $1,489.95 |
| Selling Merchandises | $895.00 | $984.50 | $1,033.73 |
| Direct Cost of Sales | |||
| Selling Memberships | $3,033,000.00 | $3,536,478.00 | $11,139,905.70 |
| Training Services | $2,980,000.00 | $3,474,680.00 | $3,867,318.84 |
| Exercising Services | $1,935,000.00 | $2,256,210.00 | $2,511,161.73 |
| Selling Merchandises | $2,237,500.00 | $2,608,925.00 | $2,903,733.53 |
| Subtotal Direct Cost of Sales | $10,185,500.00 | $11,876,293.00 | $20,422,119.80 |
7. Personnel Plan Of Sports Agency
Company Staff
[Owner] will hire professional company staff in starting a sports agency business. The Company operations will require the following employees:
- CEO
- COO
- CFO
- VP of Business Development
- VP of Client Services
- VP of Marketing
- Director of Human Resources
- Director of IT
- Financial Analyst
- Administrative Assistant
The support staff will also be needed, including but not limited to
- Receptionist
- Office Manager
- Accounting Clerk
- Marketing Coordinator
- HR Specialist
- IT Specialist
- Administrative Assistant
- Executive Assistant
Furthermore, the company will need some field staff, including but not limited to
- Event Managers
- Event Coordinators
Average Salary of Employees
The average salary for sports agency employees is $60,000. The salary is based on the average salary of all employees, including those in administration, marketing, and sales.
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| CEO | $60,000 | $66,000 | $72,600 |
| COO | $50,000 | $55,000 | $60,500 |
| CFO | $40,000 | $44,000 | $48,400 |
| VP of Business Development | $35,000 | $38,500 | $42,350 |
| VP of Client Services | $25,000 | $27,500 | $30,250 |
| VP of Marketing | $24,000 | $26,400 | $29,040 |
| Director of Human Resources | $22,000 | $24,200 | $26,620 |
| Director of IT | $21,000 | $23,100 | $25,410 |
| Financial Analyst | $20,000 | $22,000 | $24,200 |
| Administrative Assistant | $19,500 | $21,450 | $23,595 |
| Receptionist | $18,000 | $19,800 | $21,780 |
| Office Manager | $17,000 | $18,700 | $20,570 |
| Accounting Clerk | $16,000 | $17,600 | $19,360 |
| Marketing Coordinator | $15,000 | $16,500 | $18,150 |
| HR Specialist | $14,000 | $15,400 | $16,940 |
| IT Specialist | $14,500 | $15,950 | $17,545 |
| Administrative Assistant | $14,300 | $15,730 | $17,303 |
| Executive Assistant | $13,000 | $14,300 | $15,730 |
| Event Managers | $12,000 | $13,200 | $14,520 |
| Event Coordinators | $12,000 | $13,200 | $14,520 |
| TOTAL | $462,300 | $508,530 | $559,383 |
8. Financial Plan For Sports Agency
Financial experts helped [owner] analyze the company’s financial needs and develop a financial plan for how to get into a sports agency. A three-year financial plan is developed by them to outline the company’s development.
Important Assumptions
The following are important assumptions for the financial plan of the sports agency:
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 8.11% | 8.16% | 8.19% |
| Long-term Interest Rate | 8.35% | 8.41% | 8.44% |
| Tax Rate | 24.01% | 24.06% | 24.09% |
| Other | 0 | 0 | 0 |
Although these assumptions are quite conservative, deviations are expected to be limited to a level that won’t affect the company’s major financial strategy.
Brake-even Analysis
Below is a breakdown of the sports agency’s fixed and variable costs:
Table that shows monthly break-even Analysis
| Break-Even Analysis | |
| Monthly Units Break-even | 5530 |
| Monthly Revenue Break-even | $159,740 |
| Assumptions: | |
| Average Per-Unit Revenue | $260.87 |
| Average Per-Unit Variable Cost | $0.89 |
| Estimated Monthly Fixed Cost | $196,410 |
Projected Profit and Loss
The following is the projected profit and loss for a sports agency.
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $11,035,000 | $13,568,636 | $24,860,751 |
| Direct Cost of Sales | $10,185,500 | $11,876,293 | $20,422,120 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $10,185,500 | $11,876,293 | $20,422,120 |
| Gross Margin | $849,500 | $1,692,343 | $4,438,631 |
| Gross Margin % | 7.70% | 12.47% | 17.85% |
| Expenses | |||
| Payroll | $383,000 | $421,300 | $463,430 |
| Sales and Marketing and Other Expenses | $133,000 | $136,000 | $138,000 |
| Depreciation | $2,100 | $2,200 | $2,400 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $2,800 | $2,900 | $3,000 |
| Insurance | $2,100 | $2,100 | $2,100 |
| Rent | $3,400 | $3,500 | $3,600 |
| Payroll Taxes | $22,000 | $23,000 | $24,000 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $548,400 | $591,000 | $636,530 |
| Profit Before Interest and Taxes | $301,100 | $1,101,343 | $3,802,101 |
| EBITDA | $301,100 | $1,101,343 | $3,802,101 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $60,220 | $220,269 | $760,420 |
| Net Profit | $240,880 | $881,074 | $3,041,681 |
| Net Profit/Sales | 2.18% | 6.49% | 12.23% |
Profit Monthly
- Profit Yearly
Gross Margin Monthly
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Gross Margin Yearly
Projected Cash Flow
The following column diagram shows the projected cash flow.
The following table shows detailed information about pro forma cash flow, subtotal cash from operations, subtotal cash received, subtotal spent on operations, subtotal cash spent, and general assumption.
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $52,000 | $56,160 | $60,653 |
| Cash from Receivables | $22,000 | $23,760 | $25,661 |
| SUBTOTAL CASH FROM OPERATIONS | $74,000 | $80,660 | $87,113 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $69,000 | $82,000 | $95,000 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $37,000 | $32,000 | $43,000 |
| Bill Payments | $22,000 | $29,000 | $25,000 |
| SUBTOTAL SPENT ON OPERATIONS | $59,000 | $61,000 | $68,000 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $67,000 | $72,360 | $78,149 |
| Net Cash Flow | $23,000 | $25,000 | $26,000 |
| Cash Balance | $29,000 | $33,000 | $35,000 |
Projected Balance Sheet
The following projected balance sheet shows data about the pro forma balance sheet, total current assets, total long-term assets, total assets, subtotal current liabilities, total liabilities, total capital, total liabilities, and capital.
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $271,000 | $303,520 | $333,872 |
| Accounts Receivable | $29,000 | $32,480 | $36,508 |
| Inventory | $4,200 | $4,704 | $4,900 |
| Other Current Assets | $1,500 | $1,500 | $1,500 |
| TOTAL CURRENT ASSETS | $267,000 | $299,040 | $336,121 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $15,800 | $17,696 | $19,908 |
| TOTAL LONG-TERM ASSETS | $26,000 | $29,120 | $32,760 |
| TOTAL ASSETS | $257,000 | $287,840 | $323,820 |
| Liabilities and Capital | Year 4 | Year 5 | Year 6 |
| Current Liabilities | |||
| Accounts Payable | $19,000 | $21,280 | $23,919 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $14,000 | $15,680 | $17,624 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $16,000 | $17,920 | $20,142 |
| Paid-in Capital | $30,000 | $30,500 | $31,000 |
| Retained Earnings | $54,000 | $58,860 | $64,746 |
| Earnings | $176,000 | $191,840 | $211,024 |
| TOTAL CAPITAL | $289,000 | $315,010 | $346,511 |
| TOTAL LIABILITIES AND CAPITAL | $305,000 | $287,840 | $323,820 |
| Net Worth | $244,000 | $265,960 | $292,556 |
Business Ratios
The following table shows data about business ratios, ratio analysis, total assets, and net worth.
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 8.26% | 9.15% | 10.14% | 3.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 10.25% | 11.36% | 12.58% | 10.80% |
| Inventory | 6.45% | 7.15% | 7.92% | 10.90% |
| Other Current Assets | 3.14% | 3.48% | 3.85% | 3.40% |
| Total Current Assets | 140.30% | 141.00% | 142.00% | 148.00% |
| Long-term Assets | 11.58% | 11.60% | 11.64% | 11.00% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.98% | 5.02% | 5.07% | 4.34% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Total Liabilities | 7.61% | 7.67% | 7.74% | 7.38% |
| NET WORTH | 100.03% | 100.83% | 101.76% | 110.00% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 92.65% | 95.15% | 97.82% | 99.00% |
| Selling, General & Administrative Expenses | 94.80% | 97.36% | 100.09% | 97.80% |
| Advertising Expenses | 1.54% | 1.58% | 1.63% | 1.40% |
| Profit Before Interest and Taxes | 40.90% | 42.00% | 43.18% | 33.90% |
| Main Ratios | ||||
| Current | 34 | 35 | 36 | 32 |
| Quick | 33 | 33.2 | 34.03 | 33 |
| Total Debt to Total Assets | 0.18% | 0.18% | 0.17% | 0.40% |
| Pre-tax Return on Net Worth | 73.68% | 74.24% | 75.00% | 75.00% |
| Pre-tax Return on Assets | 97.88% | 102.77% | 107.91% | 111.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 34.51% | 35.58% | 36.68% | N.A. |
| Return on Equity | 56.20% | 57.94% | 59.74% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7.7 | 7.7 | 7.8 | N.A. |
| Collection Days | 100 | 100 | 100 | N.A. |
| Inventory Turnover | 30.3 | 31.815 | 32 | N.A. |
| Accounts Payable Turnover | 15.9 | 16 | 16.3 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 2.5 | 2.5 | 2.6 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | -0.04 | -0.03 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $244,000 | $257,664 | $272,093 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.85 | 0.97 | 0.89 | N.A. |
| Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
| Acid Test | 28.06 | 28.13 | 29.77 | N.A. |
| Sales/Net Worth | 2.1 | 2.2 | 2.2 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
9. FAQ
- How do sports agencies make money?
Sports agencies make money in many ways. They charge commissions on contracts they negotiate for their clients. Alternatively, they can charge a fee for their services, which could include marketing, public relations, and contract negotiations.
- How do sports agents get clients?
Sports agents gain clients by building relationships with coaches, scouts, and others in the industry. Additionally, they attend events and meet with potential clients.
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