How do I assess a sporting goods store’s seasonal buying calendar?
Ask for the store’s buying calendar showing when each category is ordered, when it arrives and when it sells, then compare it with cash on hand across the year. Look for pre-season commitments and early-order deadlines that a new owner would inherit.
Sporting goods follow the weather and the sports calendar, so ask the owner to walk you through the year. For each category, such as winter gear, team sports and summer equipment, find out when orders are placed, when stock arrives, when the selling window opens and when clearance begins. Compare the plan with what happened in the last few seasons.
Then follow the cash. Early-order programs can tie up money long before the sales arrive, and supplier terms can ease or worsen the strain. Ask which orders are already placed for the coming season and what a new owner would be committed to on day one. Review the financial statements alongside the calendar to see where cash runs tightest and how the store has financed it.
Finally, look at what is left over. Leftover stock from last season affects what you can order next. Ask how the owner decides buying quantities, how they handle slow sellers and how markdowns are timed. Check the inventory against the calendar so you can tell stock that suits the current season from stock that is stuck. Ask whether closing falls mid-cycle, because that decides who pays for what.
Key takeaways
- Walk through each category’s order, arrival, selling and clearance timing.
- Find out which orders are already placed and what the buyer inherits.
- Compare leftover stock with the calendar to spot items that are stuck.
Related reading
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat is inventory
- 02Business Development Bank of CanadaGovernmentWhat is Cash Flow
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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