Top Business Plan Mistakes to Avoid For Your Sports Facility
A well-thought-out business plan is the roadmap to success for sports facilities. However, mistakes can be made that can result in issues with your business later on. Below, we explore the most common business plan mistakes to avoid, with insights into how to strengthen your business plan.
The Top 5 Business Plan Mistakes for Sports Facilities
The first (and the biggest) mistake you can make is picking the wrong location for your sports facility. Many people focus on the cost per square foot and don’t consider (CAM) the cost of taxes or maintenance. So, make sure you consider these costs as well in your breakdown. Also, you need to find a location where a facility is in demand. If your business isn’t accessible and easy to find, you will have difficulty finding new clients. In your business plan, you will choose your target audience, including demographics (such as income). Choose a location close to your target audience. This study’s results showed that the average time a client is willing to travel for a local business is 17 minutes.
Financial Planning
Another mistake is being too aggressive with financials. We’ve seen many people expect profit within the first few months; it’s unrealistic for the majority of businesses. Be more conservative with your financials. If other things go wrong, you don’t have as much to lose if you expect not to earn much early on. Also, a lot of people don’t break down their financial plans into startup versus operational costs. They both require different plans and strategies for success.
The next mistake you can make is having a limited marketing budget. Usually, I see facilities with only social media (and sometimes just Facebook) for marketing. To access the highest amount of potential clients, you must have a website and Google Business Profile. It’s critical to create a marketing campaign and social media calendar to promote your programming and services. Plan what you want to post at least six months ahead of time. Most don’t tend to have a strong marketing campaign, and that is what kills their business.
Another mistake is not considering your opening date when writing your business plan. You need to plan for your opening date within your operating expenses. For indoor facilities, plan for fall or early winter. That’s the prime time for making money. If you’re an outdoor facility, plan for seasons your teams and leagues will be outside practicing.
Staff Management
Not breaking down your staff management is the last mistake. Sometimes, instructors aren’t actually committed to your business – causing issues upon opening. Also, people tend to miss breaking down the finances related to instructors. How much is your facility getting paid versus your instructor for your programming? How often are your instructors coming in? Consider these issues when planning your price points. Also, make sure to allocate costs for space when your instructors are doing their programming.
Conclusion
Laying out a detailed business plan is critical for the success of your business. Keep in mind these business plan mistakes as you work on building your business plan. For more insights into building a foolproof business plan, book a free consultation with our experts.
