Nagel Ben Business Plan

Nagel Sports Memorabilia and More Business Plan 1
Nagel Sports Memorabilia and More Business Plan
Ben Nagel
University of Indianapolis
MGT 281-01: Management
Dr. Darrell Cousert: Course Instructor
November 16, 2021

Table of Contents
Page(s)
Purpose………………………………………………………………….……………….…..3
Description……………………………………………………………….……………...…..3-4
Competition…………………………………………………………….……………..……..5-7
Marketing and Advertising………………………………..…………………………………7-9
Operating Procedures (Legally and Daily)……………………………………..……………9-10
Personnel……………………………………………………………………………….……10-12
Management…………………………………………………………………………………12
Types of Insurance………………………………………………………………….……….12-13
Financing……………………………………………………………………………………13
One Year Financial Summary Explanation…………………………………………………13-17
Three Year Financial Summary Explanation……………………………………………….18-20
Appendices………………………………………………………………………………….21-28
References…………………………………………………………………….…………….29-31
The Purpose of the Business Plan
One purpose of this business plan is to act as a three-year operating plan for the owner.
Another purpose is to provide information to investors.
The Business Description
The business will be called Nagel Sports Memorabilia and More (NSMM) and will be in
Indianapolis, Indiana on South Raceway Road off US Highway 36. This space will have high
daytime demographics, abundant parking, and is in the heart of Avon’s retail corridor (LoopNet,
2021). The main floor space is 20 feet wide by 19 feet deep, with the back-room space being 20
feet wide by 6 feet deep. This is not a huge space by any means, but there will not be a need for
it with the small sports memorabilia items to display, although there is a potential of expansion if
larger memorabilia are accumulated.
There will be one set of double doors in the middle of the front windows of the building,
with the door to the back room being to the right of the back wall when looking from the front
doors. There will be a full-length counter with glass cases on the right side of the room for the
more valuable items; the checkout area will be on the counter closest to the front door with the
back-room door on the opposite side. All the tables with memorabilia will take up the middle
area with shelving all along the other three walls. The front left corner of the shop will have a
television and a small couch with sports being shown all day.
The cost to rent this space at the Raceway Commons Business Park will be $48 per
square foot per year. Since the space is 500 square feet, this leads to an estimated yearly cost of
$24,000 and projected monthly cost of $2,000. In this area, there is a population of 7,222 within
a one-mile radius of the business and 157,265 people within a five-mile radius. The average
income of the 2,584 and 60,945 people within these radii has average incomes of $83,569 and
$76,831, respectively (LoopNet, 2021). Because NSMM will sell items that are purchased with
disposable income, it is important that the population in this area have these higher levels of
income.
The target market has two types of customers: children and adults, both typically males.
The children’s, typically aged around ten to fifteen years old, market is geared towards smaller
purchases, such as packs of baseball cards, fan sports equipment such as miniature basketballs or
baseball bats, and stickers. They may not know a whole lot about sports, so basic items with
pictures of fan favorite athletes or team logos at lower prices are perfect for them, since they
would have little money themselves or would be getting these items from their parents as gifts.
The other part of the target market is the adult customers, who are typically very big
sports fans, mostly of a specific sport, team, or athlete, with a much larger amount of
discretionary income. This group is where a majority of NSMM’s sales come from with them
purchasing higher priced items. They will have a high knowledge of sports and have specific
wants in what they purchase.
Inventory will be gathered through several different ways. NSMM will be open to the
public to sell personal collections or items to. The shop will also be accumulating memorabilia
to sell from buying from personal collections, eBay, flea markets, trade shows, and partnerships
with athletes. By partnering with athletes, mainly collegiate athletes, this allows them to be
compensated for their personal or team items like jerseys, autographs, and pictures and help
grow the NSMM shop. NSMM can also offer personal events such as meet and greets, podcast
recordings, and autograph signings. Every item will be available for purchase in the store, as
well as online through the website inventory catalogue.

Competition
There are only a few sports memorabilia shops in Indianapolis, Indiana: Fan Cave,
Collector’s Den, The Dugout, and Indy Card Exchange. These businesses all provide relatively
the same service as NSMM, but they are all located on the east, north, south, and central parts of
Indianapolis, Indiana. With NSMM on the west side of the city, this will allow for customers in
that area a closer location to get the same products and services. One specific shop, Fan Cave on
the south side of Indianapolis, Indiana, offers meet and greets with professional athletes, such as
Indianapolis Colts wide receiver Zach Pascall. To compete with this, NSMM will frequently
incorporate local athletics into the business; with the new NCAA name, image, and likeness
legislation, NSMM will partner with collegiate athletes to promote their name while they
promote the NSMM brand.
By partnering with athletes who either compete in Indianapolis, Indiana or are originally
from the area, NSMM will offer exclusive memorabilia that no other shops are able to offer.
One specific example of this would be a possible partnership with recent Olympian and
American champion in the 1500m track run, Cole Hocker, who was born and raised in
Indianapolis, Indiana. There are plenty of high school, college, and adult fans of Hocker who
would (or already have) paid $30 for a shirt with Hocker’s face – imagine what they would pay
to have a meet and greet with Hocker and get an autographed picture. NSMM will partner with
Hocker and share proceeds with him so both parties benefit.
NSMM will do this with many other Indianapolis-area current collegiate athletes, such as
Isaac Guerendo of Wisconsin University and Avon High School football or Trayce Jackson-
Davis of Indiana University and Center Grove high school basketball. Gaining exclusive
autographed or used items from these athletes will put my shop a step ahead, as people will want
to purchase these items before the athletes make it to the professional level.
Fan Cave has a 4.8 out of 5-star rating on Google Maps with reviews commending their
customer service, massive inventory, and helpfulness (Google, 2021). Fan Cave was started
from one man’s collection, as he then partnered with his son to share his collection with
customers at competitive prices. It is located just south of the University of Indianapolis campus
on Madison Avenue. Their sales are mainly from lower priced items, but high volume. Their
unique inventory makes them special, so any sports fan, no matter the team or sport of interest,
can find items to buy. Their target market is very broad because of this, and they also market to
kids with special events such as “Kid Collector Weekend”.
Another competitor business, Collector’s Den in Circle Center Mall in downtown
Indianapolis, Indiana, offers items that are not necessarily unique, but extremely expensive, such
as framed pictures of stadiums. Every time customers visit this shop, it has an almost identical
inventory because very few people can afford their prices. NSMM can compete by not offering
outrageous prices for items unless they are extremely rare and offer much lower prices for items
such as framed pictures.
NSMM will obviously still need to make profits off memorabilia sales, but the company
will want to have a higher inventory turnover ratio so NSMM will always be getting money in
that it can then use to get new items, constantly attracting new and different customers always
looking for new items to add to their collection. NSMM will rather make lower profit margins at
a higher rate than make higher profit margin off just a few sales a week.
Collector’s Den has a 3.9 out of 5-star rating on Google Maps, with customer reviews
saying they have sports memorabilia that can’t be found anywhere else, but also poor customer
service (Google, 2021). Collector’s Den was founded in July 2000 by Rashmin Barmeda (Better
Business Bureau, 2021). They offer mainly high-end items that are more geared towards gifts
for aesthetic memorabilia collectors. They have a lot of fancily framed items and pictures, some
autographed, and a low variety of overall items. Their items are more for collectors who want a
visually appealing and pristine collection.
Marketing and Advertising
NSMM’s main marketing and advertising strategy will be done through social media,
primarily Instagram and Facebook (Instagram, 2021; Facebook, 2021). NSMM will be using
social media to create a wide exposure to those who are very interested in this niche collecting
group. To initially jumpstart a following on these platforms, NSMM will pay a social media
expert an estimated $250 for a quick professional look, then do a series of giveaways for those
who follow, like, and share the social media pages; if the giveaways are worthwhile, it will be
successful.
NSMM will keep their followers intrigued with frequent exciting posts, interactions
through direct messages, hashtags, and constant highlights of new products that can be always
found on the page. NSMM will also promote these pages in the physical shop and offer
occasional discount days when customers prove they follow the company’s social media pages
(Truex, 2021). NSMM will be relying on shares through these websites, so the only costs over
the one- and three- year periods will be the initial $250 investment plus $100 worth of giveaways
per year.
Another marketing strategy NSMM will employ will be advertising on billboards. A
recent study from billboard company Reagan Outdoor advertised the 1961 Indiana high school
basketball champions on billboard across Indianapolis, Indiana. After a few weeks, citizens of
Indianapolis were asked who the lieutenant governor of Indiana currently is, along with who won
the 1961 Indiana high school basketball championship. They proved that more people knew this
obscure fact than general knowledge thanks to their billboards (Reagan Outdoor, 2021).
NSMM will purchase use of one billboard off US Highway 36 on the east side of
Indianapolis, Indiana, along with one additional billboard per year on the east, west, and
northside individually over time. Large billboards cost an estimated $2,000 for every four weeks
along with $1,200 for the design and installation fees, so one-year projected costs for the one
billboard would be $27,200 and three-year projected costs with the additional billboards would
be $162,000 to achieve an estimated 20 million monthly impressions per billboard (Blue Line
Media, 2021).
A final marketing strategy NSMM will execute will be at local card shows by setting up
booths with items, handing out flyers about NSMM, and by networking with all the sports
memorabilia enthusiasts who attend the shows. NSMM will purchase a booth space at the
monthly (third Saturdays from 8:00 a.m. to 2:00 p.m.) J&J All Star Sportscards Show at the
Fishers, Indiana American Legion Indiana for $50 per event. NSMM will also purchase a $50
booth space quarterly at the J&J show at the Our Mother of Sorrows Church in Louisville,
Kentucky to try to expand the customer reach and try to sell some items to out of state
customers.
NSMM will print off flyers to pass out at these events, which will cost around $150 in
paper and ink yearly. After the first year, owner and manager Ben Nagel will travel to one
additional major regional show per year, which is estimated to cost around $600 to attend.
Projected one-year expenses for this marketing strategy would be $950, with three-year expenses
being $3,650.
These marketing strategies and advertising methods will give NSMM a very solid mix of
virtual, interpersonal, and visual appeal. The total one-year cost is estimated to be $28,500. The
total three-year cost is estimated to be $166,200. This cost should reach a very large audience
with a variety of backgrounds at small costs per impression. The bulk of costs come from
billboards, but since they are even more effective than television commercials, this investment
should pay off (Tartsah, 2020).
Operating Procedures (Legally and Daily)
NSMM will be a limited liability company (LLC), owned by Ben Nagel. This will allow
him to be separate from the business, protect his assets, and for more flexibility come tax season
(Internal Revenue Service, 2021). Being an LLC over a sole proprietorship, Nagel will not be
personally liable for NSMM obligations and never have to pay creditors out of his own pocket
(Prakash, 2020). He will be filing with the Internal Revenue Service accordingly.
NSMM will be open to the public from 2:00 p.m. to 9:00 p.m. on Mondays and
Wednesdays through Friday, along with hours of operation 10:00 a.m. to 4 p.m. on Saturdays
and 1:00 p.m. to 7:00 p.m. on Sundays. NSMM will be closed for every major holiday. The
variety of hours will allow people with all different schedules to stop by at some point. The
purpose of the late hours on weekdays is to be available to children and teenagers when they get
out of school and for adults to be able to stop by after work. This is both a later start and later
end to the day when compared to the other sports memorabilia shops in Indianapolis, Indiana,
which will allow those who cannot get off work to shop by the common 5:00 p.m. to 6:00 p.m.
closing time to head over the NSMM for their sports memorabilia interests. Sundays coincide
with football schedules and allow for people to stop by after church.
A typical day for NSMM personnel begins at 1:20 p.m. This time before opening is
allotted for counting the drawers to double check cash amounts from the previous night, listen to
voicemails and call customers back, and read and respond to emails. The employee will then
unlock the front door and stay posted at the cashier’s desk for most of the afternoon and evening.
The employee is allowed to discretely eat a packed lunch at the desk whenever they are not busy
with customers, who still take priority.
At the end of the night, they can notify any customers at 8:45 p.m. that the shop will be
closing in fifteen minutes and lock the door from the outside in hopes that all customers are out
of the doors by 9:00 p.m. The employee can then count the cash register, enter that into the
inventory software to make sure it matches up with cash sales, deposit earned cash to the back
safe, turn off the lights, and make sure all doors are securely locked to leave by 9:20 p.m. for an
eight-hour shift.
Personnel
Ben Nagel will be the owner and full-time manager of NSMM. Over the course of the
day, he will be exploring leads on sports memorabilia to obtain for the shop, whether that be via
visiting personal collections, events, flea markets, or other memorabilia shops. If he does not
have much going on in those aspects, he will spend his time at the shop during business hours to
peruse eBay and other online shopping methods for new items while answering questions,
network with customers, and make sure displays are aesthetic. Depending on how many leads he
has, he would be working forty to fifty hours per week.
Nagel will pay himself via owner’s withdrawal: drawing money from the company from
profits on an as-needed basis (Jayakumar, 2021). Although he will keep as much money into the
business as possible, Nagel will have restrictions on how much he can make, such as limiting
himself to a certain percentage of profits and keeping my employee’s salaries within a certain
percentage of his income.
NSMM will always keep four to five employees on staff. After one year of learning
about these employees, one will be promoted to assistant manager to take a leadership role when
the head manager would not be able to be there. This assistant manager will be asked to work a
few more hours per week. Over the first year of NSMM being opened, the manager will work
more hours in the store since all others will be part time workers.
Before opening day of the shop, NSMM will have a staff meeting to determine shifts,
among other items to discuss. NSMM will be flexible in that each night can be broken up into
two four hour shifts or just one eight-hour shift. The manager will look at employee availability
to determine who works when and go from there. NSMM will have two employees at the shop
during weekends, when it is expected that the shop will be a little busier, and during special
events the shop may host. Taking this into account, NSMM plans to have seventy employee
hours worked per week (four eight-hour weekday shifts, two workers for each of the two eight-
hour weekend shifts, plus an extra six hours per week of miscellaneous events).
Because NSMM hopes to offer lots of flexibility in scheduling and open hours, they will
hire a variety of employees, such as high school students who want to get their foot in the door to
the business world, retirees who have a large knowledgebase and passion for sports and
collecting memorabilia and want to keep busy, or college students looking for some extra money.
Employees will start at an hourly salary of $11.80 and will receive an extra $0.40 per hour for
every year of experience at NSMM. Upon promotion of an assistant store manager, they will
receive a $2.60 per hour bonus.

Employees are expected to work at least eight and no more than thirty hours per week.
An employee’s first year at the company, averaging fourteen hours per week, would cost an
estimated $8,600, and $8,900 and $9,200 the following two years with the company. If
promoted to assistant store manager, this cost is estimated to be around $11,800 and $12,100 for
their second and third years, respectively. Total employee salaries in the first year are expected
to cost around $43,000, with a three-year total estimated to be around $155,000. No benefits will
be available for employees, especially because of the low hours worked.
Management
Over the first year of business for NSMM, Ben Nagel will be the sole manager. In the
second year of operations, the best existing employee who will have a future with the company
will be promoted to assistant manager. Along with the $2.60 per hour pay raise, they will assist
the manager in communications with other employees and occasionally attend trade shows and
help with memorabilia acquisitions. They will get the benefit of more input into operating
procedures.
As previously mentioned, Nagel will be paid off owner’s withdrawals, limiting himself to
a maximum of 40% of profits and making his cut per hour worked no more than twice a worker’s
hourly wage at any point. The assistant manager’s yearly salary is estimated to be around
$12,000 for their twenty hours per week, with the manager’s compensations to be around
$39,000 for thirty-five to forty-hour work weeks ($51,000 one-year total). Three-year costs for
these positions are estimated to be $39,000 and $120,000, or $159,000 total.
Types of Insurance
NSMM will be getting property and general liability insurance. NSMM will bundle
general liability insurance with business property coverage to receive a discount. This is
expected to cost around $55 per month and have $10,000 coverage for bodily harm per person
per accident and $20,000 in property and asset coverage (Insureon, 2021). This will cover the
employees and owner from potential liabilities if the products or shop cause injury or property
damage, covering costs of compensation and defense costs, along with theft or damage to items
or the building structure (BizCover, 2021).
Financing
Owner Ben Nagel will be getting a loan from the City First Bank. This is the largest
Black-led Minority Depository Institution in the nation (City First Bank, 2021). It will be for a
total of $555,000.00. This is the amount to be asked for because it is the total amount of
estimated costs over the first three years of operation. It will be repaid over a term of seven
years with once-monthly payments. Monthly payments are projected to be $8,107.75. For the
first year, this is estimated to cost $97, 293, and $291, 879 over three years.
One Year Financial Summary Explanation
In month 1 of the first year, Nagel Sports Memorabilia and More will have an estimated
revenue of $0 since the business is just opening and is in the first year of operation. The
estimated expenses for this month will be $27,500, which includes rent, advertisements,
employee and managerial wages, insurance, and loan payment estimated costs.
Monthly rent is estimated to be $2,000 for the spot in Avon’s retail corridor.
Advertisement expenses include the purchase of billboards and is estimated to be $5,135.
Employee wages will be $7,200, which includes extra time for training and shadowing.
Insurance payments are estimated to be $55 for every month. Loan payments are estimated to be
$8,110. In this first month, Nagel will purchase an estimated $5,000 worth of new inventory. In
total, the projected balance for month 1 is estimated to be -$27,500, which will be funded by the
$555,000 loan.
NSMM will have an estimated revenue of $0 once again for month 2. The expenses are
estimated to be around $22,500, which once again includes rent, advertisements, employee and
managerial wages, insurance, and loan payment estimated costs. The rent, insurance, and loan
payments will once again cost $2,000, $55, and $8110 per month, with managerial and employee
wages coming in around $6,900. This is decreased because there will not be any new employee
training. Increased, however, will be product purchases, at $5,435 for this month. In total, the
projected balance for month 2 is estimated to be around -$24,000. Funding will once again come
from the loan.
For month 3, Nagel Sports Memorabilia and More will have an estimated revenue of
$1,200. The projected expense estimates are $20,000, covering television advertisement and
billboard rentals ($2,600), rent ($2,000) employee wages ($6,750), insurance ($55), loan
payments ($8,110), and merchandise acquisition ($2,485). The projected balance for month 3 is
-$18,800, which will be funded by the loan.
revenue of $2,600 as it begins to find its stride in the first year of operation. The estimated
expenses for this month will be $19,500, which includes rent, advertisements, employee and
managerial wages, insurance, and loan payment estimated costs. Monthly rent is still estimated
at $2,000 for the spot on the west side of Indianapolis. Television and billboard advertisement
expenses are estimated at $2,100. Employee wages will be $6,700, and insurance payments are
estimated again at $55. Loan payments are estimated to be $8,110. In this month, Nagel will
purchase an estimated $555 worth of new inventory as the business focuses on the current
inventory. In total, the projected balance for month 4 is estimated to be -$16,900, which will be
funded by the $555,000 loan.
NSMM will have an estimated revenue of $2,740 for month 5. This is not quite as big as
an increase as before, as a lot of the people that were excited about the opening may not be in the
market for more items already. To help spread the word, NSMM will run more advertising on
television. The total expenses are estimated to be around $19,400, which once again includes
rent, advertisements, employee and managerial wages, insurance, and loan payment estimated
costs. The rent, insurance, and loan payments will once again cost $2,000, $55, and $8110 per
month, with managerial and employee wages coming in around $6,800. Advertising will cost
$2,435. Product acquisition will be relieved for this month. In total, the projected balance for
month 5 is estimated to be around -$16,660. Funding to cover the $16,660 estimated loss will
once again come from the loan.
$2,760. The projected expense estimates are $19,450, covering increased television
advertisement and billboard rentals ($2,550), rent ($2,000) employee wages ($6,400), insurance
($55), loan payments ($8,110), and merchandise acquisition ($335). The projected balance for
month 6 is -$16,690, which is funded by the loan.
revenue of $3,400 as it continues to build a customer base. The estimated expenses for this
month will be $19,300, which includes rent, advertisements, employee and managerial wages,
insurance, and loan payment estimated costs. Monthly rent is still estimated at $2,000 for the
spot on the west side of Indianapolis, along with insurance at $55 and loan payments at $8,110.
Television and billboard advertisement expenses are estimated at $2,100. Employee wages will
be $6,200. In this month, Nagel will purchase an estimated $835 worth of new inventory as the
business focuses on the current inventory. In total, the estimated balance for month 7 is
projected to be -$15,900, which will be funded by the loan from City First Bank.
NSMM will have a revenue estimated at $4,000 for month 8. It is expected that the
teenaged labor force will spend some extra money from their summer earnings. The total
expenses are estimated to be around $19,550, which once again includes rent, advertisements,
employee and managerial wages, insurance, and loan payment estimated costs. The rent,
insurance, and loan payments will once again cost $2,000, $55, and $8110 per month, with
managerial and employee wages coming in around $6,150. Advertising will cost $2,435. Nagel
will look to spend $800 in hosting their first athlete meet and greet and autograph signing, with
part of that money going into additional advertising and purchasing athlete-specific products. In
total, the estimated balance for month 8 will be around -$14,550. Funding will come from the
loan.
$4,500. NSMM will continue to benefit from the items from the first athlete appearance. The
projected expense estimates total $19,325, covering advertisement ($2,120), rent ($2,000)
employee wages ($6,100), insurance ($55), loan payments ($8,110), and merchandise acquisition
($940). Nagel will begin to acquire more items to build up for the holiday season. The
estimated balance for month 9 is projected to be -$14,825, which is available from the $555,000
First City Bank loan.
In month 10, NSMM will have a revenue estimated at $6,000. It is projected that
consumers will be looking for early Christmas gift purchases of sports memorabilia at this time.
The total expenses are estimated to be around $19,100, which once again includes rent,
advertisements, employee and managerial wages, insurance, and loan payment estimated costs.
The rent, insurance, and loan payments will again cost $2,000, $55, and $8110 per month, with
managerial and employee wages coming in around $6,090. Advertising will cost $2,115. The
shop hopes to acquire around $730 in new item to resell. In total, the projected balance for
month 10 is estimated to be around -$13,100. Funding will come from the loan.
revenue of $9,000 as consumers really ramp up Christmas shopping for the sports enthusiasts in
their life. The estimated expenses for this month will be $19,325, which includes rent,
advertisements, employee and managerial wages, insurance, and loan payment estimated costs.
Monthly rent is still estimated at $2,000 for the spot in the strip mall in the Avon area, along with
insurance at $55 and loan payments at $8,110. Television and billboard advertisement expenses
are estimated at $1,625. Employee wages will be $6,675. Management will work hard in trying
to keep new products incoming, projecting to spend $860 to keep the shelves filled. In total, the
projected balance for month 11 is estimated to be -$10,325, which will be funded by the loan
from City First Bank.
Finally, for month 12, Nagel Sports Memorabilia and More will have an estimated
revenue of $12,600 due in large thanks to the holiday season. Loved ones of die-hard sports
memorabilia collectors will look to the shop for high end gifts and stocking stuffers. The
projected expenses estimate to total $19,500, covering loan payments ($8,110), advertisement
($1,980), rent ($2,000) increased employee wages ($6,700), insurance ($55), and merchandise
acquisition ($655). The estimated balance for month 12 is projected to be -$6,900, which is
available due to the loan and is a solid end to the first year of operation.
Three Year Financial Summary Explanation
In the first year of operation for Nagel Sports Memorabilia and More, the shop is
projected to have an estimated revenue of $46,050, with much of this amount coming from the
latter part of the year. The estimated expense over this same period is $244,450 for the first year
of operation. This includes costs of loan payments, employee and managerial wages, insurance,
product acquisition, athlete appearance, advertising on billboards and television, and rent.
Rent totals an estimated $24,000 for the entire first year. Advertising costs are projected
at $28,500 over these first 12 months. Estimated wages for employees are $43,000, and $39,000
management for a total of $82,000 over the course of this year. Insurance is projected at $660
along with total loan repayments at $97,293. Inventory acquisition is estimated to total $18,630
with the diligent work of Nagel. The total balance for the first year is projected to be -$198,400.
This will take a majority of the $555,000 loan from First City Bank to finance, but that is what
the loan is for.
For year 2, Nagel Sports Memorabilia and More is projected to have an estimated
revenue of $72,000. This estimate is taking a consistent approach using the latter part of year 1
revenue, which was much higher than the start of year 1 especially. These are realistic marks to
hit and are probably underestimating NSMM’s potential. The expenses during this second year
are estimated at $256,810. This includes costs of loan payments, advertising on billboards and
television, employee, manager, and assistant manager wages, insurance, product acquisition,
increased athlete appearance, and rent. Altogether, it is around a 5% increase in expenses from
year 1.
Rent totals an estimated $24,200 for the entire second year, expected to increase just a
little, if at all. Advertising costs are projected at $22,500 over these second 12 months, a
decrease since most billboards have already been purchased. However, trade show traveling
costs are included in this. Insurance is projected at $695 along with total loan repayments steady
at $97,293. Estimated wages for employees are $45,150, plus $12,000 for the assistant manager
and $40,950 for the head manager for an estimated total of $98,100 in wages over the course of
this year. New inventory purchases are estimated to total $14,020. The total balance for the first
year is projected to be -$184,810. This will more of the $555,000 loan from First City Bank to
finance.
Year 3 of Nagel Sports Memorabilia and More is estimated to have revenue of $100,800
as it finds its strides in expansion. This estimate is taken from estimates of Christmas and the
holiday season of the first year and average month from the second year, which is something that
NSMM believes they can replicate in most months by the third year. However, expenses will
continue to climb, estimated at $268,730 in year 3. This is around a 5% increase in expenses
from year 1 and a 10% increase from the second year’s estimated expenses. Loan repayments,
advertising, wages, purchasing new products, insurance, appearance fee, rent, and traveling fees
are included in this estimate.
Rent totals an estimated $25,000 for the entire third year as the strip mall attracts more
and more customers. Advertising costs are projected at $23,625 over this year, including
additional billboard, consistent television advertising, and increased interpersonal networking at
events. Estimated wages for employees are $47,410, $42,550 for the manager, and $12,600 for
the assistant manager for a total wage estimate of $102,560 over the course of this year.
Insurance is projected at $690 along with total loan repayments at $97,295. Nagel will try to
purchase an estimated total of $19,560 of new memorabilia items. The total balance for the first
year is projected to be -$167,970. This will nearly deplete the rest of the $555,000 loan from
First City Bank to fund. Although this does not seem like a sustainable model, most small
businesses take seven to ten years to become truly profitable; with the consistent increase in
revenue and reassessment of expenses, NSMM will strive to turn to profitability within this
period.
Appendix A
Commercial Loan Application Form

Appendix B
Materials, Equipment, and Supplies List

Materials, Supplies, and Equipment
Item Cost # of Units Total Cost Source URL

iPad Pro, 11 inch display $800 1 800 https://www.apple.com/shop/buy-ipad/ipad-pro
Locking Counter Glass $200 10 2000 https://www.specialtystoreservices.com/productdetails.aspx?
productid=52158&group=&img=29359.jpg&gclid=Cj0KCQiAsqO
Showcase
MBhDFARIsAFBTN3dvuStWB16k7d8sUog-
sAroaIKlj_PXJdhhOHpWX81z8yXPsKWQHk4aAqSEEALw_wcB
Ooma Business Phone $60 1 60 https://www.ooma.com/small-business-phone-systems/
System
HP OfficeJet Pro 9015e All- $250 1 250 https://www.staples.com/hp-officejet-pro-9015e-wireless-color- all-in-
one-printer-w-6-months-free-ink-1g5l3a/ product_244553 73?
in-One Printer
ci_sku=24455373&KPID=24455373&cid=PS:GS:SBD:PLA:CO&g
clid=Cj0KCQiAsqOMBhDFARIsAFBTN3e Aq5H_DE 8n2zPFma5dl
9EiMeoP-t2ZF_ZRneZsADm0Cs7Y5pROIw4aAmpUEALw_wcB
Copy Paper, 10 reams $52 2 104 https://www.staples.com/tru-red-copy-paper-8-1-2-x-11-
case/product_135848
HP 962XL Twin Black, $187 3 561 https://www.staples.com/hp-962xl-black-cyan-magenta-yellow-ink-
cartridges-high-yield-5-pack/product_24422093
Color Ink
Football Display Case $25 8 200 https://www.hobbylobby.com/Home-Decor-Frames/Frames-Photo-
Albums/Shadow-Boxes-Display-Cases/Black-Football-Display-
Case/p/98664
Baseball Display Case $10 16 160 https://www.hobbylobby.com/Home-Decor-Frames/Frames-Photo-
Albums/Shadow-Boxes-Display-Cases/Black-Baseball-Display-
Case/p/98663
Basketball/Soccer Ball $25 12 300 https://www.hobbylobby.com/Home-Decor-Frames/Frames-Photo-
Albums/Shadow-Boxes-Display-Cases/Black-Basketball-Display-
Display Case
Case/p/98665
Jersey Frame $50 20 1000 https://www.hobbylobby.com/Home-Decor-Frames/Frames-Photo-
Albums/Shadow-Boxes-Display-Cases/Jersey-Display-Case/p/JC10244
Appendix C
12-Month Financial Summary

12 Month Financial Projection

Month 1 2 3 4 5 6 7 8 9 10 11 12
Revenue $ 0 0 1,200 2,600 2,740 2,760 3,400 4,000 4,500 6,000 9,000 12,000
Expenses $ 27,500 22,500 20,000 19,500 19,400 19,450 19,300 19,550 19,325 19,100 19,325 19,500
Balance $ -27,500 -22,500 -18,800 -16,900 -16,600 -16,690 -15,900 -15,550 -14,825 -13,100 -10,325 -7,500
Appendix D
3-Year Financial Summary

Three Year Projections

Year 1 2 3
Revenue $ 46,050 72,000 100,800
Expenses $ 244,450 256,810 268,730
Balance $ -198,400 -184,810 -167,930
References
Apple. (2021, November 8). Buy iPad Pro. iPad Pro. https://www.apple.com/shop/buy-
ipad/ipad-pro
Better Business Bureau. (2021, October 6). Collector’s Den. Business Profile.
https://www.bbb.org/us/in/indianapolis/profile/memorabilia/collectors-den-0382-
90026877
Blue Line Media. (2021, October 6). Billboard Advertising in Indianapolis, IN (Marion County,
IN). Billboards. https://www.bluelinemedia.com/billboard-advertising/indianapolis-in
BizCover. (2021, October 7). 7 Tyes of Insurance Your Small Business Should Consider. BC.
https://www.bizcover.com.au/7_types_of_insurance_for_small_business/
City First Bank. (2021, November 8). CityFirst. https://cityfirstbank.com/
Facebook, Inc. (2021, October 7). Facebook. https://www.facebook.com/
Google, Inc. (2021, October 9). Google Maps. https://www.google.com/maps
Hobby Lobby. (2021, November 9). Display Cases. https://www.hobbylobby.com/search/?
text=display+case
Instagram, Inc. (2021, October 7). Instagram. https://www.instagram.com/
Insureon. (2021, October 7). How much does small business insurance cost?. Insureon.
https://www.insureon.com/small-business-insurance/cost
Internal Revenue Service. (2021, October 9). Limited Liability Company (LLC). IRS.
https://www.irs.gov/businesses/small-businesses-self-employed/limited-liability-
company-llc
J&J All Star Sportscards Shows (2021, October 6).
http://www.jjallstarsportscards.com/home.html
Jayakumar, Amrita. (2021, July 12). How to Pay Yourself as a Business Owner. Nerdwallet.
https://www.nerdwallet.com/article/small-business/how-to-pay-yourself-as-a-business-
owner
LoopNet. (2021, October 5). Raceway Commons. Raceway Commons Brochure.
https://images1.loopnet.com/d2/EzObQ4uK-xgdx49eQGXmziCEVG8r-
xEXXlaswXZMwhc/Raceway%20Commons%20Brochure.pdf
Ooma. (2021, November 8). Grow your business for half the price. Ooma, Inc.
https://www.ooma.com/small-business-phone-systems/
Prakash, Priyanka. (2020, October 9). LLC vs. Sole Proprietorship: How to Choose. Nerdwallet.
https://www.nerdwallet.com/article/small-business/llc-vs-sole-proprietorship
Reagan Outdoor. (2021, October 6). When You Don’t Want to Keep it a Secret. Kokomo
Champs. https://kokomochamps.com/
Staples. (2021, November 8). Staples, Inc. https://www.staples.com/
Specialty Store Services. (2021, November 8). Locking Countertop Aluminum Framed Glass
Showcase – Fully Assembled. Spealty Store Services.
https://www.specialtystoreservices.com/productdetails.aspx?
productid=52158&group=&img=29359.jpg&gclid=Cj0KCQiAsqOMBhDFARIsAFBTN
3dvuStWB16k7d8sUog-
sAroaIKlj_PXJdhhOHpWX81z8yXPsKWQHk4aAqSEEALw_wcB
Tartsah, A. (2020, December 14). Billboard Advertising Statistics, Cost & Effectiveness. Back40.
https://www.back40design.com/blog/billboard-advertising-statistics/
Truex, L. (2019, November 16). How to Increase Your Social Media Following. The Balance
Small Business. https://www.thebalancesmb.com/how-to-increase-your-social-media-
following-1794618
SBA. (2021, November 8). Loans. U.S. Small Business Administration.
https://www.sba.gov/funding-programs/loans

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Nagel Sports Memorabilia and More Business Plan 1

Nagel Sports Memorabilia and More Business Plan

MGT 281-01: Management

Dr. Darrell Cousert: Course Instructor

November 16, 2021

Marketing and Advertising………………………………..…………………………………7-9

Operating Procedures (Legally and Daily)……………………………………..……………9-10

One Year Financial Summary Explanation…………………………………………………13-17

Three Year Financial Summary Explanation……………………………………………….18-20

The Purpose of the Business Plan

Another purpose is to provide information to investors.

The Business Description

larger memorabilia are accumulated.

wants in what they purchase.

well as online through the website inventory catalogue.

promote the NSMM brand.

Hocker and share proceeds with him so both parties benefit.

kids with special events such as “Kid Collector Weekend”.

Another competitor business, Collector’s Den in Circle Center Mall in downtown

such as framed pictures.

visually appealing and pristine collection.

Marketing and Advertising

Another marketing strategy NSMM will employ will be advertising on billboards. A

should pay off (Tartsah, 2020).

Operating Procedures (Legally and Daily)

with customers, who still take priority.

has, he would be working forty to fifty hours per week.

percentage of his income.

receive a $2.60 per hour bonus.

be available for employees, especially because of the low hours worked.

these positions are estimated to be $39,000 and $120,000, or $159,000 total.

or the building structure (BizCover, 2021).

One Year Financial Summary Explanation

Advertisement expenses include the purchase of billboards and is estimated to be $5,135.

from the loan.

-$18,800, which will be funded by the loan.

funded by the $555,000 loan.

once again come from the loan.

month 6 is -$16,690, which is funded by the loan.

First City Bank loan.

from City First Bank.

Three Year Financial Summary Explanation

the loan is for.

continue to climb, estimated at $268,730 in year 3. This is around a 5% increase in expenses

are included in this estimate.

additional billboard, consistent television advertising, and increased interpersonal networking at

Commercial Loan Application Form

Materials, Equipment, and Supplies List

Materials, Supplies, and Equipment

Item Cost # of Units Total Cost Source URL

12-Month Financial Summary

12 Month Financial Projection

3-Year Financial Summary

Three Year Projections

IN). Billboards. https://www.bluelinemedia.com/billboard-advertising/indianapolis-in

City First Bank. (2021, November 8). CityFirst. https://cityfirstbank.com/

Facebook, Inc. (2021, October 7). Facebook. https://www.facebook.com/

Google, Inc. (2021, October 9). Google Maps. https://www.google.com/maps

Hobby Lobby. (2021, November 9). Display Cases. https://www.hobbylobby.com/search/?

Instagram, Inc. (2021, October 7). Instagram. https://www.instagram.com/

J&J All Star Sportscards Shows (2021, October 6).

LoopNet. (2021, October 5). Raceway Commons. Raceway Commons Brochure.

Staples. (2021, November 8). Staples, Inc. https://www.staples.com/