In this article, I will teach you how to start a sporting goods business online.
You will learn how to connect with suppliers to purchase name brand sports equipment, and how to market your sports business to the masses.
Here are the points to cover:
- How to create a LLC corporation and obtain an EIN Tax number.
- Connect With Sporting Good Wholesale Suppliers
- How To Market and Tools To Help You Succeed On Or Offline
- Guide To Accepting Credit Cards Online
1. How to create an LLC Company
Let’s first start off with explaining what an LLC Corp actually is and, why do people set them up?
A Limited Liability Company (LLC) is granting your company legal status.
This means that if you get sued or your company has debts. You personally cannot lose your bank account, cars, etc.
Another advantage to an LLC is that no other company can use your business name in the state. This is what can protect your brand.
Steps For Getting Started Creating An LLC.
First thing you need to do is find the state government form.
This can be easy to do with a Google Search. For instance I am from California, I would search “California LLC Form”
Beware as you will find many links to companies that have a service that does all the work for you and then charge you a service fee.
I only look for links to the .gov or state websites where you can easily print out the form you need.
Once you fill out the form and mail it into your state capital. you will receive your EIN in the mail, usually within 7-14 days.
Each state has their own fee to file your LLC form. In California, an LLC comes with a $800 per year fee. Most other states are much lower in cost per year. You can see the fee on the LLC form you download from your state.
For more information on (LLC) visit a great article by Boni Peluso of Legal Zoom here.
2. How To Connect With Wholesale Sporting Good Suppliers.
When you need to purchase brand name sporting goods equipment for resale, there are some hurdles to overcome.
Popular suppliers such as Rawlings, Easton, Miken, and many others have requirements you need to meet.
One of these requirements, is that you purchase a minimum amount of product to open an account, usually this is anywhere from $5000 to $50,000 amount.
Another requirement many supplier manufactures require is that you have a physical storefront instead of an online store.
Once you open your store and commit to the minimum purchase amount, the manufacture will send a representative to your store location to inspect your location and if you are worthy of an account.
Don’t worry we have a solution around this!
There is a buying group named SportsLife Enterprises that helps people connect with wholesale brand name sporting goods suppliers.
When you are a SportsLife Dealer, you are connected with over 30 different suppliers that can sell you brand name products at no minimum purchase amount!
This means you can purchase products one at a time!
SportsLife will even dropship the product directly to your customers location, which means you do not need to house the product until you sell it.
Basically, you do not have to purchase anything until you make a sale!
This works out great for online e-commerce stores, that can spend money on marketing as they do not need to purchase any product until they sell the product.
Can I find suppliers on my own without having to join any buying group?
Yes! all you need is to search the internet for online companies that have what you would like to offer.
Get in touch with the sales department and ask if you can be a reseller.
The first question you may get asked, is this one;
How much product will you purchase per month?
If you are unsure of how much you will purchase per month then you will most likely be given a very small discount, or be asked to join an affiliate program.
Affiliate Programs usually pay you 3-5% of the sale price, which is not much of a profit.
However, affiliate programs have worked for others successfully.
You can find out more about becoming an affiliate by checking out The Ultimate Step-by-Step guide to becoming an affiliate marketer.