Pickleball Business Plan
If you are starting a pickleball business or expand your current pickleball business, you need a comprehensive business plan.
The following pickleball business plan template gives you the key elements to include in a successful pickleball business plan. In addition to this template, a solid plan will also include market research to help you better understand market trends, your competitive advantage and your target customers. It will also help you craft your marketing plan and financial projections.
Pickleball Business Plan Example
I. Executive Summary
Business Overview
[Company Name], located in the vibrant community of [location], is a brand-new pickleball center. This modern facility is designed to cater to the growing interest in pickleball, providing a place for enthusiasts to gather, engage, and enhance their skills. Our pickleball facility is not just about playing the sport but also enhancing skills and fostering a community of pickleball enthusiasts.
Services
At [Company Name], we offer access to top-notch pickleball courts through various membership options including day passes, ten-visit passes, and monthly subscriptions. Additionally, we conduct classes for beginners and seasoned players aiming to hone their pickleball skills. Our facility is equipped with vending machines stocked with refreshments and nutritious snacks, and a pro shop filled with the latest pickleball equipment.
Customer Focus
[Company Name] is open to serving all residents who live in [location] or the surrounding areas. Anyone who loves pickleball and wants to learn, practice, or play with others is welcome in our facility.
The current demographics of [location] are below:
- 98,997 residents
- Median age of 44.5
- Median salary of $63,930
- 44.3% married
- 21.2% with children under 18
- 49.9% of population is aged 60 and over
Management Team
[Company Name] is run by [Founder’s Name], a longtime pickleball enthusiast, and current sports facility manager. For [X] years, he has managed a popular sports complex within [location], which provided him with in-depth knowledge of both the operations and management sides of running such a facility. Though he found his time with his employer rewarding, it was his love for pickleball that inspired him to create a facility that solely focuses on pickleball.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- Exclusive focus on pickleball, a niche yet rapidly growing sport with limited dedicated facilities in the area.
- Central location with excellent accessibility.
- Proven management expertise in sports facility operations.
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 Pickleball located in [location]. The facility offers multiple courts for playing pickleball and participating in skills classes. Individuals, teams, and families can patronize our pro shop to purchase pickleball gear, or purchase energy drinks and healthy snacks from our vending machines.
[Company Name] is run by [Founder’s Name], a pickleball enthusiast, and current sports facility manager. For [X] years, he has managed a popular sports complex within [location], which provided him with in-depth knowledge of both the operations and management sides of running such a facility. Though he found his time with his employer rewarding, his love for pickleball inspired him to create a facility that solely focuses on the sport.
[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 developed, all operations will run from there.
Since incorporation, the [Company Name] has achieved the following milestones:
- Located available property 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] will provide teams, individuals, and families access to pickleball courts for a moderate fee. Patrons have the option to get a day pass, ten visit pass, or a monthly pass when they visit our facility.
[Company Name] will offer classes for anyone who wants to learn the basics or improve their skills. We will maintain vending machines filled with water, energy drinks, and healthy snacks to keep our patrons fueled while they play. In addition, the facility will house a pro shop, where pickleball gear and memorabilia may be purchased.
III. Industry Analysis
The pickleball industry has experienced a meteoric rise in popularity and participation, establishing itself as America’s fastest-growing sport. According to the Association of Pickleball Professionals (APP) and the Sports and Fitness Industry Association (SFIA), there were 36.5 million pickleball players in the United States in 2023, with participation growing at an astonishing rate of 85.7% from 2021 to 2022. This surge in interest has not only brought the sport into the mainstream but has also significantly lowered the average age of players to 34.8 years, indicating a broadening appeal among younger demographics. The sport’s growth is further evidenced by the nearly 50 million adult Americans who have played pickleball, marking a 35% increase since the APP’s last research in August 2022.
Financially, the pickleball industry is on a robust upward trajectory. The global market size for pickleball equipment alone was valued at USD 518.98 million in 2022 and is projected to reach USD 1063.66 million by 2030, growing at a compound annual growth rate (CAGR) of 9.52%. This growth is supported by a forecasted 7.7% CAGR in the pickleball paddle market through 2028, reflecting the sport’s expanding equipment needs and consumer spending. The industry’s expansion necessitates significant investment in infrastructure, with over $900 million needed to build more than 25,000 courts to meet current and future demand, highlighting the sport’s infrastructure challenges and opportunities.
Regionally, the United States leads the global pickleball market, with North America holding the largest market share. The sport’s origin in the US and its widespread acceptance have led to a strong market presence, with many communities, parks, and recreational centers across the country establishing dedicated pickleball courts. Pickleball’s popularity spans across various U.S. regions, with the South Atlantic and West North Central regions leading in terms of participation and growth rates, respectively. Moreover, the sport appeals to a wide age range, from young adults to seniors, making it a multi-generational activity.
This is a good sign of things to come and indicates that people will be interested in utilizing pickleball facilities like [Company Name] in the near future.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the residents of [location] and its surrounding areas.
The community is known for being active, with a large population of sports and exercise enthusiasts. As a result, community centers and gyms around the city are usually packed day in and day out. [Company Name] will market to sports-minded residents by offering a dedicated facility for all individuals, families, and teams who want to improve their pickleball skills, or who are simply eager to play pickleball recreationally.
Customer Segmentation
Though everyone is welcome to use the courts at [Company Name], we will primarily target three customer segments:
- Pickleball fans: Though there are many gyms and a few community centers around [location], there are few amenities that offer sufficient pickleball courts and equipment. [Company Name] aims to stand out as the sole Pickleball in town, which will attract any residents who are passionate about the sport.
- Millennials and Gen Z: Pickleball participation is expanding among younger adults aged 18-34, who now form a substantial portion of the player base.
- Families: Even in the digital age, sports are a great way to bring the family together. We will market services to entice families, such as party packages, hourly court rentals, and discounts on family passes.
V. Competitive Analysis
Direct & Indirect Competitors
The following gyms and recreational facilities provide either direct or indirect competition for our pickleball club:
[Location] Community Center
[Location] Community Center has been a great service to the residents of [location] for years. The facility offers racquet courts, a tennis court, 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 [Location] Community Center will continue to be a great center for anyone looking for inexpensive recreation, they only have one court suitable for pickleball, which does not adequately serve the residents [location]. [Company Name] will have multiple pickleball courts, with capacity to accommodate multiple teams and reservations at a time.
AdventureLand
AdventureLand, located a half-hour drive from [Company Name] is a community-focused family entertainment venue offering a variety of outdoor sports, games, and activities designed to bring people together. The facility includes a miniature golf course, a children’s putt-putt course, four weather-protected pickleball courts (16 courts total), and a stage for musical performances. The venue features multiple large-scale sculptures commissioned by top artists and a graffiti park. The venue offers multiple ways to enjoy pickleball, including daily open play, leagues, and tournaments. Dreamland also has a bar for adults and an outdoor beer garden with a large selection of beverages (90 self-pour taps with 50 local beers, ciders, and wines.
Though AdventureLand is a competitor, its distance from [location] places it as an indirect competitor. Therefore, local players will be more likely to frequent [Company Name].
Sports World
Sports World 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 Sports World will continue to thrive, the pricey membership fee keeps many residents from joining. Furthermore, the facility does not have dedicated pickleball courts, despite its enormous size. Sharing with those who want to play tennis creates limited availability for reserving courts for pickleball play.
Competitive Advantage
Company Name] enjoys several advantages over its competitors. These advantages include:
- A focus on pickleball: Though sports and recreational facilities offer many great services, those who want to play pickleball often find limited options available. [Company Name] will have several courts so no one will have to wait long to play a game.
- Location: [Company Name] will be located in the heart of downtown [location] and be easily accessible by car, foot, or public transportation.
- Amenities: [Company Name] provides a facility that meets the specific needs of pickleball players. This includes considerations such as the number of courts, pickleball lessons, pickleball tournaments, spectator seating, lighting, flooring, and additional amenities like pro shops, locker rooms, and food and beverage services.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the facility’s unique value proposition:
- Offering a central location in the downtown area
- Providing exceptional customer service
- Providing easy access to pickleball courts and training 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 festivals, school sporting events, PTO meetings, etc.
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 healthy profit.
VII. Operations Plan
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, games, tournaments, 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 pickleball enthusiast, and current sports facility manager. For [X] years, he has managed a popular sports complex within [location], which provided him with in-depth knowledge of both the operations and management sides of running such a facility. Though he found his time with his employer rewarding, it was his love for pickleball that inspired him to create a facility that solely focuses on pickleball.
Due to his experience in the industry, he will serve as the Facility Manager. However, [Founder’s Name] will hire an Assistant Manager to run the facility when he is not available.
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 Manager (1 to start)
- Facility Staff (4 to start)
- Maintenance Staff (1 to start)
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenue will come from membership fees/passes, parties and court rental, 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
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 |
