Facility Management Models Explained: Which Model Is Ideal For You?

When it comes to managing a sports facility, choosing the right model can impact your efficiency, profitability, and quality of services. Generally, sports facilities have used a variety of management models. Each model comes with its strengths and challenges. In this post, we dive into the top facility management models and provide guidance to help you choose the best approach for your facility.

Rental Model

The rental model allows individuals or teams the ability to book facility space for their practices, training, and events. As a result, this model requires minimal involvement from facility owners. Additionally, it is an appealing option for more passive owners with minimal sports knowledge. 

  • Low Operating Expenses: The model typically has lower operating costs due to limited programming or staffing needs. 
  • Requires Access Control: It is easier for facilities to utilize a form of access control to let clients into the facility at their booking time. By entering a code at the door, facilities can control when their clients enter the facility without staff present.
  • Revenue Streams: The best options for this model are memberships, packages, and upsells. Add the price of a simulator or other technology to the price of the rental!

Training Model

The training model offers individual or group instruction, as well as various types of programming. Therefore, this training model better suits active owners who want to engage with clients regularly. This is a great model for instructors who want to grow. Owners tend to start this model to make money. Usually, their kids are active in sports.

  • High Operating Costs: With instructors involved in every service, the costs of operating the facility will be higher. 
  • Involvement and Experience: We highly recommend experience in the sports facility world. Also, we recommend a strong professional network with others involved in the industry.  
  • Revenue Streams: Facilities under this model often sell memberships, packages, and retail.

Teams Model

This model is dedicated to team organizations to facilitate their training and practices. It often requires an extensive time commitment. Since it is a dedicated space for just teams, you have a built-in captive audience. This creates a reliable demand for programs and services. 

  • High Operating Costs: This is to cover any staffing needs, specialized equipment, and customized space requirements for your teams. 
  • Involvement and Experience: We highly recommend experience in the sports facility world, as well as a strong professional network with others involved in the industry.
  • Revenue Streams: Your revenue streams can be generated through lessons, programming, packages, and retail. 

Membership Model

In this model, clients pay a recurring fee to access the facility and their exclusive programming. Usually, this fee is charged monthly. This creates a steady revenue stream and builds a loyal customer base. Additionally, members often feel a sense of belonging and even status. 

  • High Operating Costs: This covers any staffing needs, specialized equipment, and customized space requirements for your teams. 
  • Involvement and Experience: We highly recommend experience in the sports facility world, as well as a strong professional network with others involved in the industry. Also, it requires an extensive time commitment. 
  • Revenue Streams: This type of facility provides exclusive programming just for members, retail, and leagues. 

Choosing The Best Facility Management Models For Your Facility

The choice of management model depends on many factors, from your business plan to your location. With this in mind, here’s a quick review to guide you in deciding which facility is best for you.

  • Rental Model: Ideal for owners interested in a hands-off management style or those looking for a real estate investment that can benefit the local community
  • Training Model: Best for owners who want to be hands-on and are interested in making money 
  • Team Model: Ideal for owners who are ready to commit substantial time and effort to manage relationships with sports teams and organizations
  • Membership Model: Best for owners looking for a steady revenue stream and interested in building a more long-term customer loyalty program

Conclusion

All of the facility management models offer unique benefits. The best fit for your facility depends on your goals, resources, and commitment. As a result, aligning the right model with your business strategy will become essential for your success. For more insights into planning your facility, book a free consultation with our experts.