Sample Business Plan on Athletic Multi Sports Complex Business Plan
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EXECUTIVE SUMMARY
The Business Concept
ABC MULTISPORT ATHLETIC COMPLEX, LLC (ABC M.A.C. or the Company) will be a multi-purpose sports center that will host basketball, volleyball, indoor soccer tournaments, games and practices. It will have a fitness center, study hall and concessions with parking. It will be a very high-class state of the art facility. The Company is located in CITY, STATE
The building will feature eight indoor basketball courts which can be converted to accommodate volley ball and indoor soccer. The facility will be used by local sports clubs of all types. Besides the use for sports, the building will be used for educational activities and will be a social meeting point and desirable facility for the whole area.
The demand for ABC M.A.C. services will be strong. The Company already has an existing sports program with 1500 players that will rent court time. New communities are springing up in the area and the new highway will provide easy access for people.
Impressive History
One of the partners in the Company is XYC. The XYC Basketball Academy (TCBA) is a leading athletic instructional academy that has been operating successfully in the greater CITY area of STATE for over six years. It specializes in providing year-round individual and team training, AAU club teams operating competitive youth basketball leagues and hosting seasonal basketball camps.
TCBA is made up of former college basketball players, professional basketball players, and coaches who have had very successful careers competing at the highest levels in the sport. The men and women of the TCBA have been a part of championship caliber teams that have competed in the nation's finest arenas and on national television.
TCBA has a long track record of helping athletes find success both on and off the court. At the heart of the academy's winning method lies the motivation to properly teach young athletes how to be coached effectively, how to develop both individually and as part of a team, and how to use these key mental and physical disciplines to improve other critical areas of their life.
Excellent Market Opportunity
ABC M.A.C.’s facility will be unique for the area and it will fulfill a strong market need. There is no other location like it within 30 miles and the ABC Ranch community does not have an indoor facility to host any events.
ABC Ranch is a census-designated place and a planned community located in Blue Green County, STATE just outside the city limits of CITY, CITY and CITY. It is a vibrant community with excellent growth and the population is conspicuously affluent. The schools are strong and the surrounding chaparral foothills are pretty. There are good jobs nearby.
There are three converging trends in the southern portion of Blue County that are creating an excellent market opportunity for ABC M.A.C.
- The youth and teen population is exploding
- There are two completely new communities being developed (Rancho Mission Viejo & Sendero)
- There are a limited number of indoor athletic facilities within a 30 minute drive
Furthermore, most indoor sports facilities do not have a close association with established and growing youth instructional academies, basketball leagues, or successful operators of large group athletic classes that have pre-established customer bases to bring to the facility on a year-round basis. ABC M.A.C. overcomes this limitation by its partnership with the XYC Basketball Academy. Hence, it has a unique opportunity to build one of the most successful athletic facility ventures in the US.
Profitable Growth
ABC M.A.C. expects to gain a profitable market share within a very short period of time. Determinations have been made for the size of the market, amounts of budgeted advertising and promotional dollars and the competitive landscape.
Projections call for the Company to generate net revenues of $2.33 million in its next twelve months. ABC M.A.C. will achieve strong growth over the next several years, reaching $2.84 million in net revenues and more than $428,000 of net income by the fifth year.
THE OPPORTUNITY
Indoor sports are everywhere. The popularity of indoor sports arenas has increased over the last decade. These facilities fill the need for year-round practice and game facilities for various sports including basketball, soccer, volleyball and many others. Most of these indoor sports arenas are operated from early morning to late in the evening.
The type of sports that are played is dependent on the arena or facility as well as the popularity of a sport in a particular location. As with outdoor sports, communities tend to build facilities that support the sports already popular in their area. Most facilities offer some degree of flexibility and can accommodate a variety of sports.
In 2012, revenue for indoor sports facilities was estimated at $70 million. The industry is expected to grow at a 0.1% annual rate. Over the next five years, the industry will experience steady growth, with more facilities available and baby boomers signing on to do more activities as they get older. (IBISWorld Report Snapshot; http://www.ibisworld.com/industry/indoor-sports-facilities-management.html)
The ABC M.A.C. facility will offer year-round training and league competition in basketball, indoor volleyball, and indoor soccer. It will be the only multisport complex of its kind in the greater South Orange County area and it will appeal to a broad range of athletic interests and age groups. While some aspects of the facility will cater specifically to ABC Ranch residents, the vast majority of operations will appeal to every active person in South Orange County.
The market segment for the new facility will include families with elementary to high-school age children as well as other sports minded individuals who are interested in indoor sports. There are over 745,000 people within a 10 mile radius of the Company’s facility. This includes the cities of:
1. Irvine (215,529)
2. Mission Viejo (93,483)
3. Lake Forest / El Toro (77,264)
4. San Clemente (63,522)
5. Laguna Niguel (62,979)
6. Aliso Viejo (47,893)
7. Rancho Santa Margarita (47,853)
8. San Juan Capistrano (34,953)
9. Dana Point (33,351)
10. Laguna Hills (30,344)
11. ABC Ranch (22,980)
12. Coto De Caza (14,866)