Did you know: The sports and fitness market is booming with the growing awareness of health and fitness and increasing demand for recreational facilities?
This means, now is the perfect time to act and start a sports complex business you’ve been wanting to do for a while.
But before that, you'll need to create a solid business plan to make it thrive. It will help you attract potential investors and secure a business loan, as well as ensure a great launch. Need help getting your plan?
Don't worry; we'll help!
In this article, we’ve illustrated a real-world sports complex business plan sample that you may use as a reference to create an actionable business plan for your sports complex.
Sounds good? Let’s get started.
Sports complex business plan example
Drafting a comprehensive yet effective business plan will not only help you describe your business idea but also assist you in navigating the intricacies of running a sports complex.
So, let’s explore this sports complex business plan example and get valuable insights on how to prepare a professional business plan.
Executive summary
VictoryZone Sports Complex is a premier sports & wellness facility situated in the heart of Dallas, Texas. Founded by Jordan Ellis, VictoryZone promotes health, wellness, and community engagement for individuals of all ages and levels.
Our sports complex provides state-of-the-art sports and a diverse range of fitness amenities. We primarily aim to become the leading sports complex in Dallas that offers a comprehensive and enriching sports experience.
Vision statement
Our vision is to be the leading sports complex in Dallas. We strive to focus on providing exceptional facilities and promoting a healthy and active lifestyle through professional staff and strong commitment.
Target market
We're committed to serving the various needs of the local community and surrounding areas. At VictoryZone, we target individuals and families in the Dallas area, sports units, schools, corporate clients, and fitness fans.
Our customer-focused approach ensures that we provide fitness services and wellness programs tailored to our member's specific needs and preferences. This will cultivate a strong sense of community and loyalty.
Unique selling points
VictoryZone Sports Complex offers
- An extensive selection of sports and fitness facilities
- High-quality sports and fitness equipment for optimal environment
- Community-focused atmosphere for individuals of all ages and skill levels
- Excellent service and effective training through skilled staff
Marketing Plan
At VictoryZone Sports Complex, we’ll implement both online and offline marketing strategies. It includes social media marketing, local advertising, partnerships, and community events, as well as targeted sales tactics.
In short, we’re looking to establish strong relationships and build a loyal customer base through all these efforts.
Financial Outlook
For VictoryZone Sports Complex, here, we've provided a clear and concise overview of the projected revenues, expenses, and net profits over the first 3 years of operation.
| Category | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $600,000 | $900,000 | $1,200,000 |
| Expenses | $600,000 | $285,000 | $320,000 |
| Net Profit | $0 | $615,000 | $880,000 |
Besides that, we predict to reach the break-even point within the second year of operation, showing profitability increasing in subsequent years.
Company Overview
VictoryZone Sports Complex is a premier multi-sport complex, located at 2345 Victory Lane, Suite 100, Dallas, TX 75201, USA.
Our sports complex presents a comprehensive range of sports and fitness activities. It includes basketball & tennis courts, indoor soccer fields, a swimming pool, a fully equipped gym, and multipurpose rooms for group fitness classes and community events.
We take pride in providing a state-of-the-art sports and fitness environment for individuals of all ages and fitness levels.
Our top-notch facility operates as a Limited Liability Company (LLC). This will ensure flexibility in management and operations while offering liability protection for the owners.
Ownership structure
Structured as an LLC, VictoryZone Sports Complex is directed by the visionary leader Jordan Ellis. He has a decade of experience in sports management and fitness facilities. Jordan is committed to fostering health and wellness through VictoryZone.
Mission statement
At VictoryZone Sports Complex, we aim to deliver a state-of-the-art sports and fitness facility that fosters health, wellness, and community engagement for individuals of all ages and abilities.
History
Jordan Ellis is a passionate patron of health and fitness with a vision to build a premier sports facility in Dallas, Texas. Even, Jordan saw an opportunity to fill a gap in the market by realizing the increasing demand for high-quality sports and fitness facilities.
After that, Jordan laid the strong foundation for VictoryZone with his expertise in sports management and dedication to community wellness. The facility is designed in such a way that it caters to all ages and skill levels, from amateur athletes to professionals.
Short-term goals
We at VictoryZone have set ambitious yet achievable goals for establishing a strong foundation for success within the first year of operation. These short-term goals are
- Finish all the renovation tasks and equipment installations within the first 6 months.
- Acquire 500+ memberships within the first year through targeted marketing and effective promotions.
- Successfully launch various fitness classes and sports leagues within the first quarter.
- Host at least five community events within the first year for a strong local presence.
Long-term objectives
Our long-term goals focus on
- Reaching and maintaining our membership base of 2,000 within 3 years.
- Achieving annual revenue targets of $1,200,000 by the end of the third year.
- Exploring opportunities to open additional VictoryZone locations within 5 years.
- Continuously enhancing and diversifying our service offerings to satisfy evolving customer needs.
Industry and market analysis
With the increasing awareness of the benefits of physical fitness and wellness, the sports and recreation industry has experienced significant growth in recent years.
According to industry reports, the global fitness and recreational sports centers market size is projected to grow by $93.8 billion, resulting in a Compound Annual Growth Rate (CAGR) of 9.78% from 2023 to 2028.
Also, the market continues to rise in the United States as more and more individuals make healthier choices and seek preventive measures to avoid expensive medical treatments.
Target market
At VictoryZone Sports Complex, we primarily target a broad audience of all ages and fitness levels who are seeking a high-quality facility offering diverse fitness and sports activities.
- Gender: Both male and female
- Income level: Middle to high-income, corporate clients
- Education level: Teenagers and young adults to college graduates and professionals
- Occupation: Students, working professionals, homemakers, retirees
- Location: Dallas and nearby communities
Key competitors
1) Texas Health Fitness Center
Texas Health Fitness Center is well-known for its comprehensive wellness programs and medical fitness services. They have a healthy partnership with the Texas Health Resources network.
Strengths:
- Strong integration with healthcare services
- Personalized fitness plans
- Medical-grade equipment
Weaknesses:
- Doesn’t offer dynamic sports activities
- Doesn’t appeal to athletes or general fitness enthusiasts
2) Trophy Fitness Club
Trophy Fitness Club is one of the local chains of fitness centers in Dallas. It provides a unique fitness experience with its modern equipment, group fitness classes, and personal training sessions.
Strengths:
- Multiple convenient locations in Dallas
- Variety of fitness classes
- Strong community presence
Weaknesses:
- Limited to traditional gym services
3) Equinox Sports Club
Equinox Sports Club is a high-end fitness club in Dallas. It offers excellent group fitness classes, luxurious amenities, and a variety of wellness services.
Strengths:
- Luxurious facilities
- State-of-the-art equipment
- Strong brand reputation
Weaknesses:
- High membership fees
- Limited focus on community events & sports leagues
SWOT analysis for VictoryZone Sports Complex
Sales and marketing strategies
VictoryZone Sports Complex focuses on a robust marketing and sales strategy that includes digital and community-centric approaches to attract new members and retain an existing one.
The following are the key elements of our strategies:
Social media marketing
We utilize social media platforms (Instagram, Facebook, and Twitter) to highlight our top-notch facilities and member success stories. We even regularly update content (photos, videos, and testimonials) as well as promote upcoming events and classes.
Professional website & SEO
We have a professional website, optimized for search engines to draw organic traffic. It features clear information about our services and booking system. Also, we regularly publish blog posts and fitness resources to provide helpful content and improve search engine rankings.
Email marketing
We've implemented targeted email marketing campaigns to keep our members aware of the new classes, special events, and exclusive offers. Further, we publish monthly newsletters to maintain community engagement.
Local advertising
Our sports complex invests in local advertising like newspapers, radio, and billboards. This will help us reach a broader audience in the Dallas area. We also offer initial discounts and free membership trials to attract new clients and encourage them to take advantage of our facilities.
Partnerships and events
Moreover, we collaborate with local businesses, schools, and community organizations to host sports events, wellness programs, and community events. We also participate in local fairs, charity runs, and community sports events to support the local community and raise brand awareness.
Sales tactics
We offer special introductory rates, free trial memberships, and corporate packages to attract potential members and promote VictoryZone. Besides that, we conduct referral programs and give incentives to current members who refer friends and family. This will encourage word-of-mouth marketing.
Services offered
At VictoryZone Sports Complex, we offer a wide range of services that cater to different community segments, such as individual fitness enthusiasts, corporate clients, and youth sports programs.
Here's a detailed list of each service offering:
1) Membership plans
Our sports complex involves a flexible membership plan that grants access to all facilities, from basketball courts and indoor soccer fields to a swimming pool and a state-of-the-art gym.
Types of memberships:
- Individual memberships
- Family memberships
- Student and senior memberships
2) Court and field rentals
We offer high-quality, well-maintained courts and fields for rental. Generally, it's available for hourly rental and suitable for basketball, soccer, and other sports.
Details:
- Full-size basketball courts for pick-up games, leagues, and tournaments
- Indoor soccer fields for casual games, team practices, and leagues
- Even adaptable for various sports and activities
3) Fitness classes
VictoryZone Sports Complex provides a variety of group fitness classes for all ages and skill levels.
Class types:
- Yoga
- Pilates
- Zumba
- Muscle building
- Aerobics and cardio
4) Corporate wellness programs & events
We arrange tailored programs designed to promote health & wellness among corporate employees.
Program features:
- Wellness workshops
- On-site or virtual fitness classes
- Team-building activities
5) Youth sports leagues and training programs
We organize age-specific leagues and skill development programs for different age groups.
Programs offered:
- Basketball leagues
- Soccer training
- Summer camps
6) Additional services
VictoryZone Sports Complex will provide its users with other features and services, including
- Full-service locker rooms (for both men and women)
- A large childcare area
- Food and beverage services
Organization and management
Our sports complex, VictoryZone, is registered as a Limited Liability Company (LLC). This kind of legal structure provides flexibility in operations and management while giving liability protection to the owners.
Key management team members
1) Jordan Ellis, Owner and CEO
Jordan Ellis is a dynamic and visionary leader behind VictoryZone Sports Complex. He holds a master's degree of science in Sports Management from the University of Texas at Austin. He oversees the overall strategic direction and operations of the sports complex.
2) Jamie Lee, General Manager
Jamie Lee is an experienced facility manager, She has a strong background in facility management and customer service. She is responsible for the smooth and efficient functioning of sports and fitness complexes.
3) Chris Martinez, Fitness Director
Chris Martinez is a certified fitness expert. He oversees the development and implementation of all fitness programs at VictoryZone. He also ensures high-quality programming and personalized training for all skill levels.
4) Megan Brown, Marketing Manager
Megan Brown has years of experience in digital marketing and community engagement. He focuses on brand awareness and builds strong relationships within the Dallas community.
5) Jill Gordon, Operations Manager
Jill Gordon is an operations manager, responsible for the day-to-day business operations. She ensures a seamless experience for all members and visitors.
Organizational chart
Operations plan
At VictoryZone Sports Complex, our operating hours will be from 5:00 AM to 10:00 PM on weekdays, and 6:00 AM to 8:00 PM on weekends.
Further, we ensure the smooth functioning of our facility, from staffing and training to customer services and reaching operational milestones.
Staffing requirements
Our sports complex will hire a mix of part-time and full-time employees. It will include front desk staff, maintenance crew, personal trainers, fitness instructors, and administrative personnel.
Facility operations
At our facility, we will maintain a clean, safe, and welcoming environment. Regular maintenance schedules will be performed to ensure all the equipment and security systems are in top condition.
We strictly follow safety protocols and emergency procedures for the well-being of the key managers and staff members.
Customer service
Our dedicated customer service team will be available to assist members by helping them with their inquiries, bookings, and any concerns. This will ensure a high level of customer satisfaction.
Milestones
We'll complete our facility renovations, hire and train staff, as well as implement initial marketing campaigns in the pre-opening phase. Also, we're looking to host a grand opening event, activate membership drives, as well as start fitness classes and personal training sessions. We even focus on member retention, raise marketing efforts, present new programs, and organize community events.
Financial plan
To ensure our stakeholders are well-informed, we have laid out a comprehensive analysis of VictoryZone's projected financial statements. This will demonstrate its financial viability and sustainability.
Profit and loss statement
Our sports complex is making a good profit in the first 3 years of operation. Here's a yearly analysis of anticipated revenues, expenses, and net profit:
| Category | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | |||
| Membership Fees | $300,000 | $450,000 | $600,000 |
| Court and Field Rentals | $100,000 | $150,000 | $200,000 |
| Fitness Classes | $50,000 | $75,000 | $100,000 |
| Personal Training | $75,000 | $100,000 | $125,000 |
| Corporate Programs | $50,000 | $75,000 | $100,000 |
| Special Events | $25,000 | $50,000 | $75,000 |
| Total Revenue | $600,000 | $900,000 | $1,200,000 |
| Expenses | |||
| Facility Renovation | $200,000 | - | - |
| Staffing Costs | $100,000 | $120,000 | $140,000 |
| Equipment Purchases | $100,000 | - | - |
| Marketing Expenses | $50,000 | $40,000 | $30,000 |
| Operational Costs | $50,000 | $60,000 | $70,000 |
| Utilities | $20,000 | $25,000 | $30,000 |
| Insurance | $10,000 | $10,000 | $10,000 |
| Maintenance | $10,000 | $12,000 | $15,000 |
| Supplies | $10,000 | $13,000 | $15,000 |
| Administrative Expenses | $10,000 | $15,000 | $20,000 |
| Total Expenses | $600,000 | $285,000 | $320,000 |
| Net Profit | $0 | $615,000 | $880,000 |
Cash flow statement
VictoryZone Sports Complex’s projected cash inflows and outflows are summarized in the following table:
| Category | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Cash Flow from Operating Activities | |||
| Cash Receipts from Customers | $600,000 | $900,000 | $1,200,000 |
| Cash Paid for Operating Expenses | -$290,000 | -$270,000 | -$300,000 |
| Net Cash Provided by Operating Activities | $310,000 | $630,000 | $900,000 |
| Cash Flow from Investing Activities | |||
| Purchase of Equipment | -$100,000 | ||
| Facility Renovation | -$200,000 | ||
| Net Cash Used in Investing Activities | -$300,000 | $0 | $0 |
| Cash Flow from Financing Activities | |||
| Equity Investment (Owner) | $500,000 | ||
| Loan Repayment | |||
| Net Cash Provided by Financing Activities | $500,000 | $0 | $0 |
| Net Increase in Cash | $510,000 | $630,000 | $900,000 |
| Cash at Beginning of Period | $0 | $510,000 | $1,140,000 |
| Cash at End of Period | $510,000 | $1,140,000 | $2,040,000 |
Balance sheet
Our projected balance sheet gives a clear snapshot of our sports complex's financial health, including assets, liabilities, and equity.
| Category | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Assets | |||
| Current Assets | |||
| Cash and Cash Equivalents | $510,000 | $1,140,000 | $2,040,000 |
| Accounts Receivable | $10,000 | $15,000 | $20,000 |
| Prepaid Expenses | $5,000 | $5,000 | $5,000 |
| Total Current Assets | $525,000 | $1,160,000 | $2,065,000 |
| Non-Current Assets | |||
| Property, Plant, and Equipment (net) | $300,000 | $290,000 | $280,000 |
| Total Non-Current Assets | $300,000 | $290,000 | $280,000 |
| Total Assets | $825,000 | $1,450,000 | $2,345,000 |
| Liabilities and Equity | |||
| Current Liabilities | |||
| Accounts Payable | $10,000 | $12,000 | $15,000 |
| Accrued Expenses | $5,000 | $6,000 | $8,000 |
| Total Current Liabilities | $15,000 | $18,000 | $23,000 |
| Non-Current Liabilities | |||
| Long-term Debt | |||
| Total Non-Current Liabilities | $0 | $0 | $0 |
| Total Liabilities | $15,000 | $18,000 | $23,000 |
| Equity | |||
| Owner's Equity | $500,000 | $500,000 | $500,000 |
| Retained Earnings | $310,000 | $932,000 | $1,822,000 |
| Total Equity | $810,000 | $1,432,000 | $2,322,000 |
| Total Liabilities and Equity | $825,000 | $1,450,000 | $2,345,000 |
Break-even analysis
The Break-even analysis estimates the total revenue needed to cover all the fixed and variable costs of our sports complex. This will ensure that our business doesn’t operate at a loss.
| Category | Amount |
|---|---|
| Fixed Costs | |
| Facility Renovation | $200,000 |
| Equipment Purchases | $100,000 |
| Marketing Expenses | $50,000 |
| Staffing Costs (Fixed portion) | $50,000 |
| Operational Costs (Fixed portion) | $20,000 |
| Total Fixed Costs | $420,000 |
| Variable Costs | |
| Staffing Costs (Variable portion) | $50,000 |
| Operational Costs (Variable portion) | $30,000 |
| Utilities | $20,000 |
| Supplies | $10,000 |
| Maintenance | $10,000 |
| Administrative Expenses | $10,000 |
| Total Variable Costs | $130,000 |
| Revenue Projections | |
| Membership Fees | $300,000 |
| Court and Field Rentals | $100,000 |
| Fitness Classes | $50,000 |
| Personal Training | $75,000 |
| Corporate Programs | $50,000 |
| Special Events | $25,000 |
| Total Revenue | $600,000 |
| Contribution Margin Ratio | 0.7833 |
| Break-Even Revenue | $536,221 |
Funding needs
At VictoryZone Sports Complex, we currently need a total of $500,000 in funding to cover initial startup costs. This will include the facility renovation cost, staff salaries, equipment purchases, marketing expenses, and working capital for the first year.
| Use of Funds | Amount | Details |
|---|---|---|
| Facility Renovation | $200,000 | Renovation and enhancement of the facility, including sports courts, fields, pool, and gym |
| Staffing | $100,000 | Recruitment, hiring, and training of staff members |
| Equipment Purchases | $100,000 | Purchase of high-quality sports and fitness equipment |
| Marketing Campaigns | $50,000 | Digital marketing, local advertising, community events, and promotional materials |
| Working Capital | $50,000 | Initial operating expenses for the first year, including utilities, insurance, and supplies |
| Total | $500,000 |
Download the sports complex business plan template
Ready to start writing your sports complex business plan? Need help with that? Look no further; here you can download our free sports complex business plan template PDF and get started.
This advanced business plan template provides easy-to-follow guides and examples to help you create a solid business plan for your sports facility. You can also modify it as per your specific needs.
Conclusion
With this business plan example, you now understand how to create a solid business plan for your sports complex.
However, preparing an investment-ready business plan isn’t always easy. You'll need to consider multiple aspects of your business while writing a plan. This is especially true when you’re new to planning.
But not to worry; consider using an AI business plan generator. It will help you draft your customized plan more effectively within just a few minutes!
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Frequently Asked Questions
How do I gather information for my sports complex business plan?
If you want to gather information for your sports complex business plan, you must:
- Conduct a detailed market analysis to easily understand your target audience, competitors, and industry trends.
- Engage with the local community to identify their needs and preferences, as well as get valuable insights from surveys and interviews.
- Gather financial information like potential costs, funding resources, and revenue projections to create realistic financial forecasts.
- Assess potential areas for your sports complex along with the accessibility, demographics, and proximity to other sports facilities.
What should I include in my initial business plan draft?
You should include the following key elements in your initial business plan draft:
- Executive summary
- Business description
- Market analysis
- Products or service offerings
- Organization and management
- Sales and marketing strategy
- Operations plan
- Financial projections
What steps should I take after completing my business plan?
After completing your business plan, you should follow these steps:
- Carefully review and revise your plan to check if there are any business plan mistakes or inconsistencies.
- Do any necessary modifications and finalize your document, which is well-organized and polished.
- Tailor your business plan to meet the needs of potential investors, lenders, or stakeholders.
- Consider implementing your plan into action and launch a successful sports complex.
- Regularly revisit your business plan to keep track of your progress.
How can I use my business plan to secure funding?
- Research and identify potential investors, lenders, or other funding options that might align with your goals.
- Present your customized business plan that outlines your business's key aspects relevant to each potential funding source.
- Craft detailed, realistic financial projections to illustrate your sports complex's profitability and sustainability.
- Highlight your team's expertise and experience that showcase your ability and build confidence in potential lenders.
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