Sports Complex Business Plan and SWOT Analysis

Sports Complex Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Sports Complex 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 Sports Complex 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.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

As more and more Americans have become concerned about their health and well-being, sports complexes have increased substantially in popularity over the past 20 years. One of the nice things about owning and operating a sports complex is that much like fitness centers they are able to generate highly recurring streams of revenue from the ongoing membership that is normally associated with these types of facilities. Unlike a standard fitness center or gym, most sports complexes have a wide variety of facilities available including basketball courts, tennis courts, baseball diamonds, swimming pools, as well as general fitness equipment included.

These businesses typically have very high start up costs ranging anywhere from $500,000 all the way to several millions of dollars depending on the amount of real estate that is going to be purchased, and the underlying operating expenses. The gross margins generated from revenues is typically very high given that this is a service focused business. It is not uncommon to have a sports complex have gross margins of around 90% for usage of the facilities. These businesses are also able to generate secondary and tertiary streams of revenue from the sale of sporting apparel as well as food and beverage services. In some cases, ancillary revenue streams for sports complex also include using the facility to host large-scale events. Some of these firms also generate income from tournament hosting and related activities.

Given the very large amount of real estate and tangible furniture, fixtures, and equipment needed to launch a new sports complex – many private investors as well as financial institutions are willing to provide the necessary capital to get these businesses off the ground. Of course, a sports complex business plan is going to be required. This business plan should include a three-year profit and loss statement, cash analysis, balance sheet, breakeven analysis, and business ratios page. Most importantly, a thorough demographic analysis needs to be conducted in order to determine the market size. This includes taking a look at annual household income, family net worth, population size, population density, and the number of people that typically will enroll in a sports complex facility.

It is also important to note within the business plan that a thorough competitive analysis should be included as well given that the sports complex will be in continued competition with related businesses, including fitness centers and gyms, within the target market. One of the other key elements that should be clearly showcased within the business plan is a substantial amount of collateral that will be held as it relates to obtaining a business loan.

A sports complex SWOT analysis should be developed as well in order to chart the strengths, weaknesses, opportunities, and threats that are faced by these businesses. As it relates to strengths, sports complexes typically are always able to remain profitable and cash flow positive given the fact that the enrollees very much enjoy this activity regardless of whether or not an economic recession is occurring. The highly recurring streams of revenue generated for membership always ensures that the underlying debt obligations associated with these businesses can be serviced on a month-to-month basis.

For weaknesses, sports complexes have extremely high operating costs as it relates to maintaining the facility as well as a large-scale staff. There is really nothing that can be done to mitigate this risk given the fact that this is just the nature of the business. However, over time and especially as these businesses generate greater and greater amounts of recurring revenue – these businesses are able to service these underlying expenses without a problem.

The opportunities for a new sports complex are limitless. Between expanding the facilities, hosting events, managing tournaments, expanding the food and beverage services associate with these businesses – owners a sports complexes are able to find ways to increase their revenues on a year-to-year basis. One of the other opportunities that exists for an entrepreneur in this field is the establishment of additional locations once the initial one has become profitable.

For threats, the only major risk faced by most sports complexes is a severe and prolonged economic recession which may have some of the members cancel their membership. However, outside of this risk there typically very few threats faced by sports complex businesses.

A sports complex marketing plan also needs to be developed in order to ensure that a number of people come to the facility at the onset of operations and will concurrently become members of the sports facilities. Most importantly, prior to the onset of operations – many entrepreneurs will distribute discount flyers, coupons, incentives for prolonged free membership, and related promotions in order to have people come to the facility. Many sports complexes also develop ongoing relationships with area elementary schools, middle schools, high schools, and colleges in order to have their students use the facility. This is a common way of marking a sports complex especially in areas that lack comprehensive physical education. By being able to develop relationships with municipal school agencies, these businesses can immediately generate very large streams of revenue.

Beyond these types of direct marketing strategies, a sports complex should always maintain an expansive online presence both as via a standalone website as well as a social media page. As many people now find specialized businesses,  like sports complexes, via Internet searches it is imperative that a proprietary website that showcases membership information, sports available, location information, and contact information is clearly provided to potential customers. A presence on social media will also ensure that referrals can be made by third parties that have enrolled with the company’s services or have been using it for a significant period of time.

People love sporting activities, the demand for sports complexes will remain strong even during deleterious economic conditions. These businesses have a strong ability to have access to capital given the large amount of real estate and tangible equipment that needs to be purchased in order to provide these services to the general public. There is really nothing about this industry that is going to change, and there will always be a continued demand among people to enjoy these types of facilities on an ongoing basis.