Start a tennis shop by following these 10 steps:
You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your tennis shop. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
Check out our How to Start a Business page.
STEP 1: Plan your business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening a tennis shop?
The major cost to get started will be that of inventory. Owners need to find the right balance between the brands they stock and the customers they serve. They'll also need to budget for the cost of the space they'll be using, as well as any marketing efforts they need to attract customers to their business. Finally, owners will need commercial insurance to protect themselves against liability disputes.
What are the ongoing expenses for a tennis shop?
Ongoing expenses include rent/mortgage, salaries, insurance, and merchandise.
Who is the target market?
The target market tends to be those with plenty of disposable income. Tennis is one of the more expensive sports a person can take up, especially if opening up shop in a colder climate.
How does a tennis shop make money?
Tennis shops charge a markup on all of their products, as well as fees for general services they may perform.
How much can you charge customers?
People are willing to pay for quality merchandise when it comes to their tennis equipment. A quality racket can easily run a person $300 – $400. Tennis shoes can be $100 or more, and even tennis bags can cost over $100.
How much profit can a tennis shop make?
Profit margins can be excellent for tennis shops, whether they're restringing rackets or selling gear. Owners can charge up to 3 times the raw cost of materials to restring a racket and up to two times the wholesale cost of the rackets. Owners can charge up to $100 an hour (or sometimes more) for lessons with a pro, which can substantially increase profit margins.
How can you make your business more profitable?
Continue to look for specific things that the community isn't receiving from other retailers or instructors. You may also want to expand into other types of racket sports. For example, selling squash or racquetball equipment if there's a need for it. You can also consider selling your inventory online to further expose people to your name. This is especially recommended if you happen to have an exclusive contract or make your own gear.
What will you name your business?
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Tennis Shop Name Generator
When registering a business name, we recommend researching your business name by checking:
- Your state's business records
- Federal and state trademark records
- Social media platforms
- Web domain availability.
It's very important to secure your domain name before someone else does.
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your tennis shop is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
- This separates your personal assets from your company's assets, which is necessary for personal asset protection.
- It also makes accounting and tax filing easier.
Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.
Open net-30 accounts
When it comes to establishing your business credit, net-30 vendors are considered the way to go. The term "net-30," which is popular among vendors, refers to a business credit arrangement where the company pays the vendor within 30 days of receiving goods or services.
Net-30 credit terms are often used for businesses that need to obtain inventory quickly but do not have the cash on hand.
Besides establishing business relationships with vendors, net-30 credit accounts get reported to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended: Read our guide on the best net-30 vendors so you can start building business credit now, so you never have to worry about cash flow in the future. Keep in mind that poor cash flow is the #1 reason businesses fail!
Get a business credit card
- This helps you separate personal and business expenses by putting your business' expenses all in one place.
- It also builds your company's credit history, which can be useful to raise money and investment later on.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
State & Local Business Licensing Requirements
Certain state permits and licenses may be needed to operate a tennis shop business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
For information about local licenses and permits:
- Check with your town, city or county clerk’s office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
Certificate of Occupancy
A tennis shop business is generally run out of a storefront. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.
- If you plan to lease a location:
- It is generally the landlord’s responsibility to obtain a CO.
- Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a tennis shop business.
- After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
- If you plan to purchase or build a location:
- You will be responsible for obtaining a valid CO from a local government authority.
- Review all building codes and zoning requirements for your business’ location to ensure your tennis shop business will be in compliance and able to obtain a CO.
STEP 7: Get business insurance
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Learn more about General Liability Insurance.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.
How to promote & market a tennis shop
The first place to start will be tennis courts of every kind. Whether in a public park or a private country club, these are the people who will care about the shoes, apparels and gear you have to offer. Consider holding a themed party or even a tennis tournament with in-demand prizes to spread the word. You can also find specialized community groups on sites such as Facebook or Craigslist. It’s a good place to find people discussing their tennis game, so you can let them know how they can make it even better.
How to keep customers coming back
Stocking and arranging the right inventory can go a long way toward getting people into the shop. Once they're inside, the staff needs to zero in on the customer’s reason for coming in and give them the advice they need to get better results on the court. Any equipment sold needs to be of excellent quality so that people come to associate your name with excellence.
Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use.
Recommended: Find the best phone system for your business; check out our review of the Best Business Phone Systems 2021.
Start A Tennis Shop In Your State
Select your state below for an in-depth guide on completing each of these steps in your home state.
Is this Business Right For You?
Those who have an inherent love of the sport and a genuine interest in how different equipment can improve a person's game. Tennis is an excellent way to keep fit, and a welcome change from traditional team sports.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
What happens during a typical day at a tennis shop?
A general day will be spent handling customers, but shop owners also need to devote time to marketing, inventory, and researching new brands and trends in tennis gear.
What are some skills and experiences that will help you build a successful tennis shop?
Owners should have at least some experience in specialty retail stores, as well as at least a general understanding of the game. Whether they played in college or took the sport up in their 30s, they'll want to be able to relate to customers who are serious about becoming the best player they can be.
What is the growth potential for a tennis shop?
Growth potential can be significant for those who open in the right area. While people may be able to find equipment online cheaper than the prices of your shop, customers still find value in talking to a salesperson who can help them improve their game.
TRUiC's YouTube Channel
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Take the Next Step
Find a business mentor
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Learn from other business owners
Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
What are some insider tips for jump starting a tennis shop?
One of the biggest hurdles to cross will be that of finding the right location for the shop. You’ll need to look for a relatively wealthy neighborhood that either doesn’t already have a shop in the area or that is being underserved by the current choices. It's entirely possible to open a shop in a solidly middle-class area, but tennis pros and equipment can be expensive enough that the profit margins won’t be worth it. Visit the competition to see what they're doing and make notes as to how you would do it better. Design a layout for your customers that is neither too cluttered nor too bare, so they can browse without stress.
Look for ways to give customers value above and beyond what they’re used to getting. Going online to put together a tennis outfit, restring a racket, or buy a new bag isn't nearly as satisfying as the instant gratification that comes from visiting a single shop with knowledgeable salespeople. Owners should also make it a point to get to know the people of the area. In the electronic era, it’s becoming harder and harder to spark loyalty in customers. Putting in the extra effort for everyone who steps into the store will give you a better idea of what the community cares about, so you can better tailor your services to them.
Finally, look for different angles you can use to set yourself apart. Maybe you’ve hired a savvy pro with incredible credentials. Maybe you’re stocking brands that no other store carries. Maybe you make your own rackets and sell them exclusively at your store. If you’re opening up in a colder climate, make sure community members are aware of available indoor areas so they can keep their game sharp. Consider offering group lessons so people don’t have to pay for a private instructor.
How and when to build a team
The team should be built sooner rather than later. Look for sales associates who play the game already and who understand the art of customer services. Be prepared to pay for the most qualified candidates! The other option is for a pro to open a shop on their own and keep limited hours. In this case, the owner could consider doing a ‘By Appointment Only’ store where they service individuals based on their specific requests.