How do I start a successful sports facility?

Feasibility Studies

A feasibility study focuses on determining if a proposed idea is financially viable and the steps to increase its viability. Sports Facilities Advisory uses financial forecasting models and market research from the over 2,000 communities we’ve served to assess the potential project. The feasibility study will examine the demographics of your market and their capacity for supporting a new sports facility as well competitors offering similar services. It also provides financial projections and concludes with project development recommendations. Through this process, we can uncover deficiencies in the original idea and provide solutions. We can also uncover revenue-generating opportunities wherever possible. In the end, the feasibility process will give you a better understanding of the necessary components for opening your sports facility and improve on your original concept.

Securing Funding

Opening a sports complex requires a great deal of funding. This process starts with a financial forecast. At SFA, we create a ProForma, which is an institutional-grade financial forecast that projects potential costs and earnings over a five-year period based on start-up and construction costs and revenue potential. Revenue potential is based on targeted demographics, service offerings, and the competitive landscape. The financial forecast gives funding sources a clear picture of the project potential to earn a return on investment.

Opening Your Sports Complex

The opening of your sports complex begins long before the groundbreaking ceremony takes place. First, we will have a planning summit meeting where we will develop a timeline of steps and a list of processes that must be completed before the sports complex opens to the public.
The project plan will have many components including, site preparation, zoning and permits, construction, selecting vendors, brand development, pre-opening marketing, pre-opening staffing, staff training, registration software, and bookkeeping systems, banking, communications, operations systems, and safety and risk management. Further, the sports specific elements of the sports facility development must be considered as well and can be accomplished by working with a group that specializes in venue planning. 

Managing Your Sports Complex

Opening your complex is a tremendous milestone. Now the attention shifts to making it successful. The Sports Facility Management team can step in with our expertise to manage the facility. SFA’s full-time sports facility management includes the placement of our highly experienced staff and ongoing training, along with oversight by SFM professionals. We have a systematic, proven approach that encompasses recruitment, placement, training, marketing, sales, and programming.

Optimization

Every sports facility can be enhanced. It’s important to consistently examine all facets of operation and determine both where you excel and what can be improved. SFM optimization services are available to successful sports facilities seeking to enhance returns, and under-performing facilities that need help getting back on track.

We begin with a comprehensive review of your facility, staff, operations, and finances. After facility review, the SFA/SFM develops a comprehensive optimization plan. The plan will outline and project data-driven strategies that may range from refinancing to staff development, program development, and marketing.

Many factors determine the performance of your sports complex. SF Companies has the experience and expertise to guide you from concept to opening day. Contact the Sports Facilities Advisory today.

If you consider yourself an expert in a sports trade or athlete development, then there is a lot of opportunity in launching your own sports training facility. In fact, the health club industry brings in a whopping $87.2 billion annually, and is expected to grow each year. While this presents an excellent business opportunity, there are numerous factors to consider as you embark on this new entrepreneurial journey.

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Best Practices for Opening a Sports Training Facility

Ensure your business plan includes ample market research

Before diving head first into any business, it’s important to thoroughly research related aspects to gain a better understanding of the opportunities and challenges that lie ahead. To ensure your business can enter your market competitively, you’ll want to take the following steps:

• Identify key competitors – both direct (local businesses) and indirect (online resources)

• Define strengths and weaknesses of both your competitors and your business

• Set action items to gain an edge and grow your business

• Think about your competitive landscape in a new and interactive way

An interactive competitive analysis template can aid you in identifying your key competitors and their strengths and weaknesses, and enables you to define action items to get ahead (and stay ahead) of the competition.

Additionally, your sports training business plan should outline a strong brand strategy based on market research. Your brand is comprised of countless intangibles that create an identity for your company, and building, maintaining, and growing it should be a priority from day one.

Upper Hand’s sports business brand strategy guide will help you understand:

• The key elements you need to consider prior to opening your sports training facility

• Best practices to follow when launching a new brand

• In-depth breakdown of logos, websites, and social media

• Questions to ask to build a strong brand foundation

Prepare for operational costs 

As you prepare to open your sports training facility, it’s critical to have a strong understanding of the costs associated with operations. Use a budget template specifically made for sports businesses prior to opening to analyze projected cash flow so you can crush financial goals. 

This sports facility budget template will:

• Calculate revenues from various offerings like lessons, teams, memberships, classes

• Determine other revenue streams like retail products, vending machines, and uniforms

• Assess operating expenses like payroll, rent, software tools, websites, online marketing, and insurance

• Calculate costs of goods sold

• Project average revenue per client

• Calculate 12-month cash flow projects, and more.

Additionally, you’ll want to run projections on the profitability of your camps, clinics, training sessions, lessons, etc. in order to maximize ROI as soon as your doors open. An event-level profit loss worksheet will allow you to visualize which programs will perform well and which can be adjusted or eliminated from your offerings.

Be sure your profit loss template includes:

• Worksheet with key input fields to calculate gross revenue

• Expense fields to calculate various expenses related to the event

• Bottom-line numbers showing the success of the event, and more

Determine and Purchase Necessary Equipment

Another critical step to opening your facility will be ensuring you have the equipment necessary for running your events. Keep in mind that you can always upgrade equipment later. It may be worth opening with only the essentials in order to save money for other expenses.

Create a thorough list of the major hardware and software needed. Be sure to include needs from both an athlete training and admin operations perspective. Some equipment may include:

• Turf
• Sport-specific nets
• Balls
• Weights and fitness equipment
• Desks and furniture
• Sports facility management software
• Computers
• Signage

Prioritize client and athlete safety 

As you get closer to the opening of your facility, ensure that you have prepared the necessary forms to prioritize athlete and staff safety. One very important aspect of your sports training business is a well executed client/athlete waiver. This will help protect you from any liabilities due to injuries during classes or training, or other unforeseen circumstances. In addition, a sports waiver is designed to help save your business, even if an injury were to occur due to negligence.

Upper Hand’s sports training facility athlete waiver and release template outlines:

• Client acknowledgment of training rules and policies

• Medical verbiage for new and existing injuries

• Rights to images, videos, and other forms of media

• Financial responsibility for enrolled programs, and more.

No matter how many precautions are in place, injuries will happen in the realm of youth sports. However, there are certain ways to handle these incidents after they occur to make sure you, your business, and your clients are safe from a health and legal standpoint. In addition to the client waiver, you’ll also want to ensure your sports training facility has an Incident and Injury Response Plan in place. This should include:

• Step-by-step checklist of actions to take in the event something occurs

• Customizable incident report template for your staff to document

• Explanation of why proper steps are so important, and more.

Invest in proper operations management tools

As the demand for sports training facilities rises, ensuring you have the most innovative tools available in the market will help you outshine your competition. We understand how complex running a sports facility can be. From staff scheduling to resource management, Upper Hand has the features and functionality you need to operate more efficiently and maximize the revenue opportunities of your facility. Here’s why training facilities love Upper Hand: 

• Optimized resource management:

  Flexible scheduling settings and resource management tools help maximize the usage – and profitability – of your facility

• Increased operational efficiency:

  Centralized tools and connected payments increase the efficiency of your team, saving you time and money to re-focus towards growth

• Unlocked revenue stream growth:

  Customizable programs and real-time analytics help optimize existing revenue streams while unlocking new opportunities for growth

Remember, starting a business is a process. You will run into unanticipated hurdles, but staying motivated and seeking advice from industry peers are key to success.

Take full control of your sports training facility. Request a demo of Upper Hand

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