Indoor Sports Facility Business Plan Template
If you want to start an indoor sports facility business or expand your current indoor sports facility business, you need a business plan.
The following Indoor Sports Facility business plan template gives you the key elements to include in a winning Indoor Sports Facility business plan.
Indoor Sports Facility Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a new massive indoor sports facility serving the residents of [Location]. The facility offers numerous amenities for sports enthusiasts including basketball courts, volleyball courts, and a jogging/walking track. Residents can pay drop-in rates or sign up for a membership. Teams that need to reserve our courts can do so online for a fee. The facility also offers classes in various activities that residents can sign up for and pay for online. By including all of these amenities and options, we aim to be the only indoor sports facilities that the residents of [Location] will ever need.
Products Served
[Company Name]’s indoor sports facility offers numerous courts and other amenities for residents to enjoy. Some of the amenities we provide include:
- Basketball courts
- Volleyball courts
- Racquetball courts
- Exercise rooms
- Jogging/walking track
The facility also offers classes in various activities such as yoga, tai chi, sport, dance, and martial arts. Residents can sign up and pay for these classes online.
Customer Focus
[Company Name] serves all residents who live in [Location] or the surrounding areas. Anyone who loves sports and wants to learn, practice, or play with others is welcome in our facility.
The current demographics of [Location] are below:
-
125,201 residents
- Median age of 38
- Median salary of $63,000
- 41% married
- 33% with children under 18
Management Team
[Company Name] is run by [Founder’s Name], a former professional athlete, and current coach and sports facility manager. For [X] years, he has managed a popular sports complex on the other side of the country but has been eager to open up his own facility in his hometown. His experience has provided him with in-depth knowledge of both the operations and management sides of running such a facility. Furthermore, his popularity will ensure that our business is successful and profitable.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- [Company Name] offers far more amenities and activities than other sports facilities in the area.
- The location is central to downtown and is easy to access by foot, car, or public transportation.
- The management team has a track record of success in the sports facility industry.
Financial Highlights
[Company Name] is currently seeking $2,000,000 to launch. Specifically, these funds will be used as follows:
- Facility design/build: $1,500,000
- Equipment: $250,000
- Working capital: $250,000 to pay for marketing, salaries, and maintenance until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name] is a new massive indoor sports facility serving the residents of [Location]. The facility offers numerous amenities for sports enthusiasts including basketball courts, volleyball courts, and a jogging/walking track. Residents can pay drop-in rates or sign up for a membership. Teams that need to reserve our courts can do so online for a fee. The facility also offers classes in various activities that residents can sign up for and pay for online. By including all of these amenities and options, we aim to be the only indoor sports facilities that the residents of [Location] will ever need.
Though we aim to make a profit, we also want to be a valuable service to the community. Therefore, all passes, gear, snacks, and classes will be offered at a reduced cost for individuals and families earning less than the median income. Everyone has a right to enjoy our amenities without being priced out.
[Company Name] is run by [Founder’s Name], a former professional athlete, and current coach and sports facility manager. For [X] years, he has managed a popular sports complex on the other side of the country but has been eager to open up his own facility in his hometown. His experience has provided him with in-depth knowledge of both the operations and management sides of running such a facility. Furthermore, his popularity will ensure that our business is successful and profitable.
[Company Name]’s History
[Company Name] was incorporated by [Founder’s Name] on [date of incorporation] as an S-Corporation. The company is currently being run out of [Founder’s Name]’s home, but once the facility is built, all operations will run from there.
Since incorporation, [Company Name] has achieved the following milestones:
- Located available space to build the facility
- Developed the company’s name, logo, and website located at [website]
- Determined equipment and fixture requirements
- Began recruiting key employees
[Company Name]’s Products/Services
[Company Name]’s indoor sports facility offers numerous courts and other amenities for residents to enjoy. Some of the amenities we provide include:
- Basketball courts
- Volleyball courts
- Racquetball courts
- Exercise rooms
- Jogging/walking track
The facility also offers classes in various activities such as yoga, tai chi, sport, dance, and martial arts. Residents can sign up and pay for these classes online.
III. Industry Analysis
Since the end of the pandemic, individuals and families worldwide have been looking for fun ways to get out of the house and exercise again. Spending two years cooped up inside has given the world an appreciation for sports and activity. People all around the world are now flocking to gyms, sports facilities, and recreation centers to restore their health and become active again.
Though the overall sports complex industry has been in a downturn in recent years, this is directly an effect of the pandemic. Now that it is safe for people to work and play together again, the industry is expected to see a boost in the market. In fact, according to PRNewswire, the fitness and recreational sports center market posted a year-over-year growth rate of 22.66%. This is a good sign of things to come and indicates that people will be interested in utilizing sports facilities like [Company Name] in the near future.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the community residents of [Location] and its surrounding areas.
The community is full of sports and exercise enthusiasts. As a result, local community centers and gyms around the city are usually packed day in and day out. [Company Name] will market to these enthusiasts by promoting the variety of amenities that the facility offers.
A demographic profile of the area is as follows:
| Wilmette | Winnetka | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
Though everyone is welcome to use the amenities at [Company Name], we will primarily target three customer segments:
- Sports teams: Local sports teams are often looking for available courts for practice. Currently, there are few options in the [Location] area, which means that teams don’t have adequate resources to practice. [Company Name] will provide a supply for this demand.
- Low-income individuals: Many residents who earn under the local median salary struggle to afford memberships at expensive gyms. [Company Name] will offer a significant discount for anyone in this income bracket so that no one feels priced out from their favorite activities.
- Families: Even in the digital age, sports are a great way to bring the family together. We will market particular services that will entice families, such as the ability to rent courts in hourly increments and discounts on family passes.
V. Competitive Analysis
Direct & Indirect Competitors
The following gyms and recreational facilities are located within a 10-mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Downtown Community Center
Downtown Community Center has been a great service to the residents of [Location] for years. The facility offers a racquet court, a basketball gym, a swimming pool, and a fitness area for all residents looking to get fit. All of this comes at a moderate price, which allows all residents to enjoy its offerings.
While Downtown Community Center will continue to be a great center for anyone looking for inexpensive recreation, they are a small facility with very few amenities. [Company Name] will have far more options, meaning we can accommodate numerous residents and teams at a time.
Global Fitness Gym
Global Fitness Gym is a national chain of gyms with five locations throughout [Location]. It is the most popular gym in town, offering cardio machines, weights, a swimming pool, and more for just a modest membership of $30/month. Some locations even have an outdoor basketball court and a mini spa area for premium members.
Though Global Fitness Gym is a competitor for residents looking for general exercise activities, they are not a major competitor when it comes to offering sports amenities. A few locations have a basketball court, but this is not the major focus of their brand. Anyone looking for more than a basic gym will prefer to join [Company Name].
Uptown’s Recreational Center
Uptown’s Recreational Center has been the go-to sports and recreational facility for the affluent residents of [Location] since 2002. For a monthly membership fee, individuals and families can utilize the center’s many facilities, including swimming pools, basketball courts, tennis courts, and more. It is a large complex that has a little something for anyone who visits.
Though Uptown’s Recreational Center will continue to thrive, the pricey membership fee keeps many residents from joining. Furthermore, many of the amenities (such as the tennis courts) are only available outdoors, meaning they are unavailable during the cold and winter months.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Facility Size: [Company Name] will be the largest indoor sports facility in the region. We offer far more amenities than other local gyms and sports centers, including multiple courts, a jogging track, and fitness areas.
- Location: [Company Name] will be located in the heart of downtown [Location] and be easily accessible by car, foot, or public transportation.
- Affordability: No one should be turned away from a sports center just because they can’t pay expensive fees. That’s why our fees are moderately priced. We also offer discounted rates for those who earn less than the median income.
VI. Marketing Plan
The [Company Name] Brand
[Company Name] seeks to position itself as a high-quality indoor sports facility that offers everything our active residents could ever want. We pride ourselves on our customer service and our modern, clean facilities.
The [Company Name] brand will focus on the facility’s unique value proposition:
- Offering a central location in the downtown area
- Providing excellent customer service
- Providing easy access to courts and other sports amenities for a moderate price
Promotions Strategy
[Company Name] expects its target market to be residents living within a 10-mile radius of its location. [Company Name]’s promotion strategy to reach these potential customers includes:
Website/SEO
[Company Name] will develop a professional website that displays photos of our facilities and a schedule of upcoming classes. The company will also invest in SEO so that the company’s website will appear at the top of search engine results.
Social Media
[Founder’s Name] will create the company’s social media accounts and invest in ads on all social media platforms. The company will use targeted marketing to appeal to our target demographics.
Community Events/Organizations
The company will promote itself by distributing marketing materials and participating in local community events, such as sporting events.
Pre-Opening Events
Before opening the facility, [Company Name] will organize pre-opening events designed for prospective local customers and press contacts. These events will create buzz and awareness for [Company Name] in the area.
Public Relations
We will contact all local and regional area newspapers and television stations to tell them about the facility opening and the unique value proposition of [Company Name].
Sponsorships
[Company Name] will also invest in sponsoring certain nonprofit and community events so that banners and collateral material are displayed all over the event.
Pricing Strategy
[Company Name] pricing will aim to be more moderately priced than most sports complexes but still be high enough to maintain a profit. We will offer discounts to anyone who can prove they earn less than the median income. No matter what services they pay for, customers will feel they receive great value when using our facility.
VII. Operations Plan
Functional Roles
In order to execute [Company Name]’s business model, the company needs to perform many functions, including the following:
Administrative Functions
- Bookkeeping
- Marketing
- Website maintenance
- Hiring and training staff
Gym And Service Functions
- Customer service
- Membership processing
- Teaching classes
- Scheduling classes, matches, and special events
- Maintenance functions
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is run by [Founder’s Name], a former professional athlete, and current coach and sports facility manager. For [X] years, he has managed a popular sports complex on the other side of the country but has been eager to open up his own facility in his hometown. His experience has provided him with in-depth knowledge of both the operations and management sides of running such a facility. Furthermore, his popularity will ensure that our business is successful and profitable.
Hiring Plan
[Founder’s Name] will serve as the Facility Manager. In order to launch the business, we need to hire the following personnel:
- Assistant Managers (3 to start)
- Facility Staff (10 to start)
- Instructors (5 to start)
- Maintenance Staff (4 to start)
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenue will come from membership fees/passes, rental fees, and classes.
The major costs for the company will be the salaries of the staff and the cost of maintaining the facility. In the initial years, the company’s marketing spending will be high as it establishes itself in the market.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $2,000,000 to launch. The capital will be used for funding capital expenditures, labor, marketing expenses, and working capital.
Specifically, these funds will be used as follows:
- Facility design/build: $1,500,000
- Equipment: $250,000
- Working capital: $250,000 to pay for marketing, salaries, and maintenance until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of customers per day | Per location |
|---|---|
| FY 1 | 100 |
| FY 2 | 120 |
| FY 3 | 140 |
| FY 4 | 165 |
| FY 5 | 190 |
| Annual Lease ( per location) | $60,000 |
| Yearly Lease Increase % | 2.50% |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
