Tennis Club Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Tennis Club Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Tennis Club business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
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- Bank/Investor Ready!
- Complete Industry Research
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PDF Format
- Meets SBA Requirements
Tennis is a very popular sport within the United States, and as such many tennis clubs have launched operations in order to provide players with courts. These businesses are relatively immune from negative economic changes given that tennis is usually considered a low cost sport to enjoy. Most locations typically charge a small court usage fee coupled with some moderate other fees associated with renting equipment or via sales by having a tennis pro shop on site. One of the nice things about owning and operating a tennis club is that they are able to generate revenues from a number of different sources. First, court fees are always part and parcel of any tennis club operation. Second, these businesses will frequently have a pro shop on site that allows for sale of tennis rackets, tennis balls, shoes, apparel, and other items that are normally associated with the sport. Three, many of these locations also have a tennis pro on-site that can render lessons for per hour fees. This is another high-margin revenue center for these businesses. Four, there are usually a number of afterschool and summer camp programs that tennis clubs offer to the general public. It should be noted that some tennis clubs operate on a membership basis, and this can be highly lucrative in markets where there is a wealthier population. The recurring streams of revenue that are generated from monthly membership fees can be substantial and can drastically boost the valuation of the individual tennis club location.
Banks, lenders, and investors are all willing to put up significant amounts of capital in order to launch the operations of a new tennis club. Given that a substantial amount of this capital will be used for the acquisition of land and development of a tennis club facility – the risks associated with his investment are relatively low. In many circumstances, an entrepreneur will look to an investor to raise the equity portion needed to be use as a down payment so that a business loan can be acquired in order to develop the facility. As with all capital raising activities, a tennis club business plan should be developed and it needs to include a three year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. At the time of this writing, the tennis club industry produces about $3 billion a year of revenue within the United States among about 15,000 different locations. Beyond the three year financial model, and analysis of the local population should also be included. This includes examining the population size, population density, median household income, median family income, median house values, percentage of families with children under the age of 18, as well as a thorough competitive analysis. As it relates to competition there is going to be ongoing issues relating not only to dealing with other tennis clubs but also among country clubs that have tennis court facilities as well. A substantial time should be spent examining with competitors the tennis club will face on a day-to-day basis.
Of equal importance to the business plan is the tennis club marketing plan. One of the ways that many new tennis clubs launch their operations is by developing referral relationships with elementary schools, middle schools, high schools, and community colleges within the region. Given that these educational institutions do you often maintain tennis courts on their premises – this can be a substantial opportunity to generate revenues and increase the brand-name visibility of the business by having a reciprocal relationship with these schools. Additionally, many tennis club owners will seek to develop contractual relationships that allow these institutions to bring their students to the tennis club for monthly usage. This can be one of the ways of the tennis club can reach profitability very quickly. Beyond developing referral relationships, many tennis clubs will also engage in a broad-based mail campaign that will inform the local general public of the grand opening. Specialized discounts on court usage, membership fees, and related services may be included in these mailers in order to produce a significant amount of interest in the business. Additionally, it is imperative that a tennis club maintain an expansive online presence as well. This includes not only having a very well-developed standalone website but also maintaining profiles on popular social networking platforms like FaceBook, Twitter, Instagram, and Google+. One of the nice things about the social media platforms is that they allow members and users to place reviews on the pages. If the tennis club offers outstanding customer service and they will be able to rapidly increase the brand-name visibility of the location as more and more people now use social media to find local businesses. Approximately 2% to 3% of all revenues generated by the tennis club are allocated towards ongoing marketing and advertising expenses.
Beyond the above documentation, a tennis club SWOT analysis should be developed as well. This document focuses on the strengths, weaknesses, opportunities, and threats that are faced by these companies on an ongoing basis. Relating the strengths, tennis clubs generate extremely high gross margins from all their revenue streams including court usage fees, membership fees, pro-instruction, and sales of merchandise. The operating costs, while high, are not reasonable. The barriers to entry for new tennis club are considered to be moderate. For weaknesses, these businesses do have some level of decline during times of economic recession. Playing a sport like tennis is a luxury and as such when the economy does not do as well services like tennis clubs are usually cut out people’s budgets. However, these risks are usually mitigated by the high-margin income generated from services. As it relates to opportunities, many tennis clubs are able to establish a secondary location once the initial location has reached 100% capacity. Again, the ability to raise capital for these types of businesses is significant given their low economic risk. Finally – as it relates to threats – tennis clubs really face no changes to how they will operate on a day-to-day basis. Tennis is one of the oldest sports within the United States and it remains extremely popular.
Tennis Club Business Plan
1.0 Executive Summary
The purpose of this business plan is to raise $20,000,000 for the development of an expansive tennis club while showcasing the expected financials and operations over the next three years. Tennis Club, Inc. (“the Company”) is a New York based corporation that will provide customers with a 36 court tennis club, a private membership restaurant, and a day spa that will be operated on site. The Company was founded by John Doe.
1.1 The Operations
As stated above, the business intends to develop an expansive tennis club facility that will feature a 36 tennis courts, private membership restaurants services, an onsite day spa, and many other ancillary services that are in demand among people that frequent tennis clubs.
The business intends to solicit membership fees (including initiation fees) as the Tennis Club facility nears its completion. The business will also generate very high gross margins generated from the services mentioned above.
The third section of the business plan will further describe the services offered by the Tennis Club.
1.2 The Financing
Mr. Doe is seeking to raise $20,000,000 from an investor(s). Mr. Doe expects to sell a 50% equity interest in the business in exchange for the requisite capital. The tentative terms of this agreement can be found in the second section of the business plan. The financing will be used for the following:
- Development of the Company’s Tennis Club location.
- Financing for the first six months of operation.
- Capital to purchase FF&E for the Tennis Club.
1.3 Mission Statement
Tennis Club, Inc.’s mission is to become a well known tennis club facility and family entertainment destination for wealthier residents living within the Company’s targeted market.
1.4 Management Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the hospitality industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Revenue Forecasts
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals that are interested in becoming members of a tennis club.
The Company may seek to develop additional Tennis Club properties after the third to fifth year of operation.
2.0 The Financing
2.1 Registered Name and Corporate Structure
Tennis Club, Inc. The Company is registered as a corporation in the State of New York.
2.2 Use of Funds
2.3 Investor Equity
At this time, the Company is seeking to sell a 50% equity interest in the business for the requisite capital sought in this business plan.
2.4 Management Equity
After the requisite capital is raised, Mr. Doe will retain a 50% ownership in the business.
2.5 Exit Strategy
The exit strategy would be to sell the Company to a larger entity at a significant premium. Since, tennis club industry maintains a moderate risk profile once the business is established; the Management feels that the Company could be sold for ten to fifteen times earnings.
3.0 Operations
Below is a description of the services offered by the Tennis Club.
3.1 Tennis Club Facilities
As stated in the executive summary, the business intends to develop 36 tennis courts that will be used by members on an ongoing basis. The tennis court area of the Tennis Club will also feature a Tennis Pro Shop where sales of tennis products will be made.
3.2 Tennis Club Restaurant
As part of the members’ enrollment, they will have access to a highly developed club house that will feature a high end restaurant. No cash will change hands when members use the Company’s Tennis Club facility. All accounts will be billed on a monthly basis to members. At this time, Management is seeking to hire an outstanding chef to develop the menu, restaurant layout, and general operations of the Tennis Club Restaurant.
3.3 Day Spa
Tennis Club, Inc. will also have a full service day spa that will provide massage therapy services, manicures/pedicures, as well as other spa services including, but not limited to:
- Facials
- Body Waxing
- Anti-Aging Treatments
- Aromatherapy
Each of these services will render a significant amount of revenue for the business.
4.0 Market and Strategic Analysis
4.1 Economic Analysis
This section of the analysis will detail the economic climate, the tennis club industry, the customer profile, and the competition that the business will face as it progresses through its business operations.
Currently, the economic condition as a result of the COVID-19 pandemic is rapidly improving. Interest rates have remained low, which has led to substantial improvement in the economy. Although there are issues with inflation, the US Federal Reserve has indicated that they are willing to adjust monetary policy to combat this issue. The economy is moving back towards normal at this time.
However, the targeted audience for the Tennis Club is less swayed by negative changes in the economy. Additionally, the recurring membership fees will ensure that the Tennis Club is able to remain profitable at all times.
4.2 Industry Analysis
Within the United States, there are approximately 13,000 tennis clubs that operate on a for profit basis or a not for profit basis. Each year, these businesses generate approximately $20 billion of revenues while providing jobs to more than 300,000 people
This is a mature industry, and the future growth rate is expected to mirror that of the economy as a whole.
4.3 Customer Profile
The Tennis Club’s average client will be an upper middle class man or woman that frequently enjoys playing tennis, and belonging to a membership club. Common traits among clients will include:
- Annual household income exceeding $75,000
- Will spend $20,000 on membership fees and usage of the Tennis Club’s facilities.
- Lives within 10 miles of the Company’s Tennis Club facility.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Tennis Club intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the business.
5.1 Marketing Objectives
- Maintain an expansive online presence including the usage of SEO and social media marketing.
- Establish relationships with the local community of the target market.
- Engage a broad based public relations firm targeted towards wealthy people living within the target market.
5.2 Marketing Strategies
Management intends to use a qualified advertising and marketing firm to help the Tennis Club reach its intended audience of wealthy people living in the Company’s targeted market. This campaign will include the use of traditional print and media advertising as well as the Internet. Direct advertising campaigns will be of significant importance to the Company as the business is offering its Tennis Club services to a specified group of upper middle and upper income people.
The Company will have a large scale website developed that showcases the operations of the Tennis Club, its amenities, hours of operation, and guided tours of the facility. The Company will have a number of professionally produced videos that showcase the facility. These videos will be embedded into the Company’s website and distributed among all major social media platforms. The Company will hire a search engine optimization firm that will ensure that when searches for tennis clubs in the target market are complete – the Tennis Club’s website will appear frequently within the search. The business’ website will feature login functionality so that dues and tennis court reservations can be made online. In time, the business may develop a mobile application for these operations.
The business will maintain pages on all major social media platforms including Facebook, Twitter, Instagram, and YouTube. As discussed earlier, guided video tours of the facility will be posted to social media pages. The Company will have its Facebook page act as a community portal where members can arrange for court usage.
The tennis club will also support area charities and community organizations in order to boost the visibility of the business.
6.0 Organizational Overview
6.1 Organizational Chart
6.2 Personnel Budget
7.0 Financial Plan
7.1 Underlying Assumptions
The Company has based its proforma financial statements on the following:
- Tennis Club, Inc. will have an annual revenue growth rate of 16% per year.
- The Founder will acquire $20,000,000 of equity funds to develop the facility.
- The Tennis Club property will have an annual appreciation rate of 6% per annum.
7.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. Enrolling as a member in a tennis club is a luxury and during times of deleterious economic conditions, the business may have issues with its top line income. However, the Company is targeting its services towards wealthy people who are less swayed by difficult economic climates. Additionally, the high margins generated by the business will ensure its continued profitability despite moderate decreases in revenue.
7.3 Source of Funds
7.4 Profit and Loss Statement
7.5 Cash Flow Analysis
7.6 Balance Sheet
7.7 Breakeven Analysis
7.8 Business Ratios
The downloadable package has substantial additional content.