Shehady’s Basketball Training and Instruction Business Plan
Executive Summary
This paper is a business plan for Shehady’s Basketball Training and Instruction. The business will operate in the sports coaching industry and will target young athletes of 7 to 13 years old as individuals and as groups. There are other businesses offering basketball training, but they mostly focus on the youth. The trends in schools about developing skills and talent provide an opportunity for this business. The population of Pittsburg also has most of the people working, thereby making the business sustainable. Nevertheless, the entity will set low prices for market entry and will advertise mostly in the elementary and middle schools where the target population is best reachable. This plan will consist of three sections, a competitive market analysis, the management team, and the marketing plan.
PART 2: COMPETITIVE MARKET ANALYSIS
MARKET ANALYSIS
Competition Assessment
There are various basketball training and instruction businesses in Pennsylvania, including Lycan’s Camp, Gstarz Basketball, and The Basketball Factory. These three businesses all rank among the best ten firms on this market, having been in existence for one year, five years, and six years with 3, 2, and 10 employees, respectively (Pittsburg Basketball Trainers). All these companies have experience in the industry and understand its dynamics, which will be a disadvantage to Shehady business. Moreover, these companies have positive reviews from clients, which is a powerful marketing tool (Pittsburg Basketball Trainers). The Basketball Factory has a high number of employees, meaning that it can attend to various clients simultaneously. This capacity, along with the long experience in the industry, makes this business the tougher rival.
However, Shehady has conducted thorough market research to understand market trends and needs, so that the service delivered will meet the needs of the market and attract clients. Having been a former basketball trainer and instructor at a local middle school, the business will use this information as a reference in validating its abilities to the client base. Notably, all of these businesses target the youth, meaning teenagers and older clients (Pittsburg Basketball Trainers). Variations in physical capabilities and even different mindsets based on age can cause different needs, prompting various programs that also require more workers to execute, therefore increasing business costs. Consequently, Shehady intends to focus on the 7 to 13 year age group, which is an opportunity to gain a client base faster and minimize operational costs with just one program.
Company Strategies
Shehady will use penetrative pricing to enter the market; the lower prices will attract clients. Additionally, having a middle school basketball instructing and training background makes the business the most appropriate to teach and guide the selected target group (Kotler and Keller, 2015).
Anticipated Challenges
The basketball training and instructing industry has numerous competitors, some of whom have existed for several years and are trusted by the locals. As such, Shehady might have difficulties attracting clients, mainly since most people go to a business based on recommendations from other existing or former clients of the firm. Securing funding may also be a challenge being a startup company, and there could be legal liabilities from injuries during training.
Planned Responses
Shehady will seek sufficient funding to cover sufficient advertising, particularly in the schools around the neighborhood, through posters and advertisements in the school magazines. There will also be advertisements in local radio stations to reach a wider audience. The business owner will invest in the company oo, to assure investors of the willingness to work for the business’s success as failure would bring losses to them both. The funds will also purchase or hire the necessary equipment for training that would minimize chances of injury. For instance, the business will hire a basketball pitch with a cemented ground to reduce harm from rough surfaces if a fall occurs. Other purchases will be shoulder and knee pads to soften the impact of a collision either with the ground, other trainees, or other objects. There will also be a lawyer hired to draft a contract that the client’s parents will sign, stating what the company’s liabilities.
INDUSTRY PROFILE
Shehady’s Basketball Training and Instruction will be in the sports coaching industry and the private and group training sector. Presently, this industry is doing well as various players in the professional basketball leagues earn are among the highest-paid sportsmen in the country, and most people admire their lives. The has also been increasing emphasis on skill development in school curriculums rather than just focusing on academic achievements. Therefore the future of this industry looks bright.
Opportunities and Threats
The business will target the 7 to 13-year-old age group that will distinguish the company from other rival companies that mainly focus on the youth such as teenagers and older people (Pittsburg Basketball Trainers). This approach will be an opportunity to attract clients. However, there is a legal liability threat that could arise from injuries during training. Notably, the company’s target audience is younger compared to most rival entities. Such young clients are more susceptible to injuries compared to older clients who are keener and take care of themselves better.
PART 3: MANAGEMENT TEAM
Management
This business will have one employee at the beginning. Shehady, who is the business owner (CEO), will also be the business manager in charge of administration. His background in middle school basketball training and instructing makes him appropriate for the position and the business’s success. There will be a lower-ranking manager as an employee in charge of marketing. The company will employ a participative management style where both employees and managers participate in decision-making. This style affirms the workers’ value to the business and motivates them in their tasks for enhanced productivity. As the company grows, so will the number of employees to attend to various other functions. Among these functions is financing, with a manager for each department, all reporting back to the CEO.
Organizational Chart
Business Goals
Short-term (within I year)
- To attain a 50% market share based on schools in the neighborhood.
- To get recruits from at least 10 of the existing high schools.
- To get a revenue of at least $40,000.
Medium to long-term goals
- Attain an annual revenue of at least $100,000.
- Have at least five trainees from each elementary and middle school in the region.
Ethical Issues
- Professionalism: The workers will act professionally when handling the trainees to prepare them for the professional sportsmanship life ahead.
- Integrity: The business’s reputation will help its growth; therefore, the workers will strive for honesty and transparency.
- Respect: There will be different people of different ages and backgrounds, and each trainee will be treated with respect.
Social Responsibility
The business will have a basketball tournament each month where any team from the local community can join, as a way of joining the community and encouraging sportsmanship and activeness in the youth.
PART 4: MARKETING PLAN
Market Research
The business will target young athletes of 7 to 13 years old in Pittsburg, PA. These will be school going children either in elementary or middle school. They will mostly come from families of middle income, which mainly constitute Pittsburg residents. The white population is more in the region (66.8%) and represents most of the workforce (62.8%), making the region a mostly middle-income area (WPR, 2020).
Product or Service
Features and Benefits
This business will be a basketball training and instructing service for private clients as well as group clients aged 7 to 13 years. Clients get to discover their capabilities early and focus on developing their strengths while improving on their weaknesses. It also has a health benefit b keeping these young children active, reducing health complications such as obesity.
Differentiation
Most athletes start professional training during the teenage hood and the youthful stage due to minimal facilities and services for earlier training. The business will fill this gap by targeting 7 to 13-year-olds.
Pricing
The business will use penetrative pricing (lower prices than rivals) for market entry to attract clients. This price will evolve to competitive pricing (at the same level as rivals) once the business attains stability to cover additional costs for the company and maintain decent profit margins (Kotler and Keller, 2015).
Sales and Promotion
Advertising
The firm will conduct advertising, particularly in the elementary and middle schools around the neighborhood, through posters and advertisements in the school magazines. This channel will reach the intended target group best. There will also be advertisements in local radio stations to reach a wider audience such as parents when driving. Social media use will also be useful, especially Facebook, Instagram, YouTube, and Twitter, to reach a wider audience (Kotler and Keller, 2015).
Promotions
The business manager will voluntarily coach a junior basketball team in different schools once a week to promote his business. There will also be monthly basketball games open to the community, which will be a proper promotion channel.
Place/Distribution
The business will have a camp for training. It will hire a training ground with a basketball pitch in one of the schools for use during certain hours each day. Clients will get their training at this venue. As the business grows, there will be more venues for training around Pittsburg.
References
Kotler and Keller (2015). Framework for marketing management. 6th Edition. Pearson
Pittsburg Basketball Trainers. https://lessons.com/pa/pittsburgh/basketball-training/
World Population Review (WPR) (2020). Pittsburg, Pennsylvania Population, 2020. https://worldpopulationreview.com/us-cities/pittsburgh-population/