To turn this example into your own sports memorabilia business plan, use the sports memorabilia business plan template.
Retail margins are thin, inventory ties up cash, and customer acquisition online costs more every year. A business plan that glosses over these realities will not survive contact with actual trading conditions.
This sample plan shows you how to build a retail or eCommerce business case that covers inventory management, customer acquisition costs, seasonal cash flow, and realistic revenue targets from a standing start.
See how Thornwood Depot structures its inventory and acquires its first customers. Our Business Plan Toolkit gives you the same framework to apply to your own store.
Executive Summary
Thornwood Depot is a Phoenix, Arizona-based collectible sports jersey store. Thornwood Depot focuses on offering famous player baseball, football and cycling jerseys. Thornwood Depot is an existing business that is being purchased by Phil Garment. Thornwood Depot expects to be profitable in Year 1 and to generate modest profits in the years that follow. The sports collectible market is huge, particularly for sport jerseys. The ages of collectors range from young kids to grown adults. With the growing popularity of eBay, sport collectible trading has become even more popular with a much more open market. Thornwood Depot has segmented the market into two niches, children and adults. In general the children are most interested in the baseball and football jerseys with the adults showing primary interest in all three. Thornwood Depot has recognized three keys to success that will be instrumental. The first is having a complete inventory. This will serve as an attraction to get many people browsing the store for what is for sale. The second is knowledgeable, fair pricing of collectible jerseys, and the third is close control of costs.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $238,600 | $271,300 | $302,800 |
| Gross margin | 45% | 46% | 46% |
| Net profit / (loss) | $14,800 | $6,000 | $15,200 |
Company Overview
Thornwood Depot is a sports memorabilia business operating in Phoenix, Arizona. The business serves a growing demand for quality, specialist products and service in this sector, where many customers are underserved by larger, less responsive providers.
Mission: To deliver consistent, high-quality service to every customer, building long-term relationships based on trust and results.
Business objectives:
| Period | Target |
|---|---|
| Year 1 | Complete the purchase handover, retain existing customers, stay profitable |
| Year 2 | Grow revenue by around 14 percent, add a second salesperson, widen the jersey inventory |
| Year 3 | Grow revenue by around 12 percent, grow online sales, improve net margins |
Market & Customer Analysis
Industry context
When we last checked (October 2026), online sales made up 17.1 percent of US retail sales, $340.2 billion in the second quarter of 2026 (US Census Bureau).
Collectible jerseys can sit for months, so the turn rate decides how much cash the business needs. If Thornwood turned its stock four times a year, a working rule of thumb in general retail, year-one cost of goods of $131,200 would mean about $32,800 held at cost, returning about $3.27 of gross profit per $1. At two turns, the same $107,400 of gross profit would need $65,600 of stock.
At a 45% margin, monthly fixed costs of $7,720 need about $17,140 of sales a month, or $205,700 a year. Year-one revenue of $238,600 sits 16% above that. Net profit dips from $14,800 to $6,000 in year two because wages rise from $31,200 to $54,100 when the second salesperson joins, as the year-two objectives set out.
Rent and utilities of $28,800 are 12% of year-one sales, above the common rule of thumb of about 10%. The plan's figures bring that down to 10% by year three.
Target customer profile
Thornwood Depot’s primary customers are jersey collectors in the Phoenix, Arizona area and online, in two niches: children, who mostly collect baseball and football jerseys, and adults, who collect baseball, football and cycling jerseys. These customers prioritise quality and reliability over lowest price and are willing to pay a moderate premium for consistent results.
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| eBay sellers | Huge selection, open market | No in-person viewing, uneven authenticity checks |
| Online sports retailers | Strong national marketing presence | Generic offering, less collector focus |
| Local card and collectibles shops | Established local customers | Limited jersey range |
Thornwood Depot’s advantage: Specialist focus, personal service, and deep knowledge of the target customer segment are the primary competitive differentiators.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Specialist expertise; existing business and customer base; strong service quality; clear target market positioning | Weaknesses: New owner taking over an existing business; single location; reliance on the owner’s capacity |
| External | Opportunities: Growing target market; underserved customer segments; digital marketing reach; referral network growth | Threats: Established competitors with greater resources; economic conditions affecting discretionary spend; potential new market entrants |
Sales & Marketing Plan
Thornwood Depot reaches its target customers through a combination of digital marketing, referral programmes, and direct outreach. The primary acquisition channels are local search (Google Maps and organic SEO), word-of-mouth referral from satisfied customers, and targeted paid advertising on social media platforms where the target customer is active.
Pricing approach: Pricing is set at a modest premium to the local market average, reflecting the specialist range and knowledgeable service. All prices are clearly marked in store and online.
Sales process:
- Customer finds the store through local search, social media, or a recommendation
- Staff greet each visitor and offer product advice
- Purchase completed in store or online
- Customer invited to join the mailing list for new arrivals and events
- Follow-up offers sent to encourage repeat visits
Operating Plan
Thornwood Depot operates from Phoenix, Arizona with a lean team focused on knowledgeable service. Standard operating procedures cover stock ordering and receiving, inventory control, customer service, and online orders.
Staffing plan:
| Role | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Owner / Managing Director | 1 | 1 | 1 |
| Sales staff | 1 | 2 | 2 |
Key suppliers and partnerships: Thornwood Depot maintains relationships with a small number of trusted suppliers to keep stock levels consistent and manage periods of high demand.
Management Team
Thornwood Depot is being purchased and will be run by Phil Garment, who brings a clear understanding of the collector market and commercial knowledge to the leadership of the business.
Hiring plan: As the business grows, the priority is to hire people who share the company's commitment to quality and customer service. The business will promote from within where possible and invest in staff development to reduce turnover.
Financial Plan
3-year profit and loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $238,600 | $271,300 | $302,800 |
| Cost of goods sold | $131,200 | $146,500 | $163,500 |
| Gross profit | $107,400 | $124,800 | $139,300 |
| Gross margin | 45% | 46% | 46% |
| Salaries and wages | $31,200 | $54,100 | $56,300 |
| Marketing and advertising | $13,900 | $14,700 | $15,400 |
| Rent and utilities | $28,800 | $29,700 | $30,600 |
| Other operating costs | $18,700 | $20,300 | $21,800 |
| Total operating expenses | $92,600 | $118,800 | $124,100 |
| Net profit / (loss) | $14,800 | $6,000 | $15,200 |
Break-even analysis:
- Estimated monthly fixed costs: $7,720
- Monthly revenue required to break even: $17,160
- Break-even is projected within the first year of trading.
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