A basketball facility business refers to a business enterprise that focuses on providing facilities and services related to basketball.
These businesses typically offer indoor or outdoor spaces equipped with basketball courts, training areas, and related amenities to cater to the needs of basketball players, teams, and enthusiasts. Basketball facility businesses aim to create a dedicated space for basketball enthusiasts to practice, play, and improve their skills.
They provide an environment that fosters the growth of the sport, facilitates community engagement, and offers opportunities for players of all ages and abilities to participate in basketball-related activities.
Steps on How to Write a Basketball Facility Business Plan
Table of Content
Oakmont Sports® Basketball Facility, Inc. is a premier basketball facility business located in the vibrant city of Chicago, Illinois. Our facility is dedicated to providing top-notch basketball courts, training programs, and services to basketball enthusiasts of all ages and skill levels.
We are committed to promoting the sport of basketball, fostering community engagement, and delivering exceptional experiences to our customers.
Chicago is a city with a rich basketball culture and a passionate community of players, teams, and fans. Despite the existing basketball facilities in the region, there is a growing demand for a state-of-the-art facility that offers high-quality courts, comprehensive training programs, and a welcoming atmosphere.
Oakmont Sports® Basketball Facility aims to fill this gap by providing an unmatched basketball experience for individuals, teams, and organizations in the area. Bryant McConnel is the founder and CEO of Oakmont Sports® Basketball Facility, Inc.
a. Our Products and Services
Oakmont Sports® Basketball Facility has 5 spacious and well-maintained basketball courts, both indoor and outdoor, equipped with the latest technology and amenities.
Our facility offers a range of services, including court rentals, training programs, leagues and tournaments, youth programs, membership services, and equipment sales and rentals. By providing a comprehensive suite of services, we aim to cater to the diverse needs of the basketball community.
b. Nature of the Business
Our basketball facility will operate the B2C – Business to consumer business model. We will offer our services directly to the end user without any middleman arrangement.
c. The Industry
Oakmont Sports® Basketball Facility, Inc. will operate in the sports and recreation industry.
d. Mission Statement
At Oakmont Sports® Basketball Facility, Inc., our mission is to provide a premier basketball experience by offering state-of-the-art facilities, comprehensive training programs, and exceptional services.
We are dedicated to fostering a love for basketball, promoting skill development, and creating a welcoming community for players of all ages and abilities. Through our commitment to excellence, integrity, and inclusivity, we strive to be the go-to destination for basketball enthusiasts in Chicago, Illinois.
e. Vision Statement
Our vision at Oakmont Sports® Basketball Facility, Inc. is to be the leading basketball facility in Chicago, renowned for our top-quality courts, innovative training programs, and outstanding customer experiences. We aspire to be a catalyst for basketball development, nurturing talent, and inspiring a passion for the sport.
f. Our Tagline (Slogan)
Oakmont Sports® Basketball Facility, Inc. – “Where Basketball Dreams Take Flight!”
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Oakmont Sports® Basketball Facility, Inc. will be formed as a Limited Liability Company, LLC.
h. Our Organizational Structure
- Chief Operating Officer (Owner)
- Facility Manager
- Marketing and Sales Officer
- Coach/Instructor/Assistant (5)
- Customer Care Executive/Front Desk Officer
- Security Officers.
i. Ownership/Shareholder Structure and Board Members
- Bryant McConnel (Owner and Chairman/Chief Executive Officer) 51 Percent Shares
- James Johnson (Board Member) 19 Percent Shares
- Rhoda Kobe (Board Member) 10 Percent Shares
- Daniel Jordan (Board Member) 10 Percent Shares
- Natalie James (Board Member and Sectary) 10 Percent Shares.
- Situated in Chicago, a city with a strong basketball culture and a large target market.
- Well-designed and modern indoor and outdoor basketball courts equipped with advanced technology and amenities.
- Offering a wide range of services including court rentals, training programs, leagues and tournaments, youth programs, and equipment sales and rentals.
- A team of skilled coaches, trainers, and staff passionate about basketball and dedicated to delivering exceptional service.
- Utilizing both traditional and digital marketing channels to increase brand awareness and engage with the target audience.
- Establishing partnerships with local schools, sports organizations, and community centers to promote basketball and foster a sense of community.
- Being a new facility, there may be a need to invest in marketing efforts to increase awareness among potential customers.
- Facing competition from existing basketball facilities in the area, requiring differentiation and a unique value proposition to attract customers.
- Managing operational expenses related to facility maintenance, staffing, and equipment upkeep.
- Potential fluctuations in demand for services
- Leveraging the increasing popularity of basketball as a sport, especially among youth, to expand the customer base.
- Forming strategic partnerships with local sports organizations, schools, and teams to offer specialized programs and attract a wider range of customers.
- Developing targeted marketing campaigns to reach specific customer segments, such as youth, adult leagues, or corporate teams.
- Exploring opportunities for sponsorships and brand partnerships with sports equipment manufacturers or local businesses to enhance visibility and generate additional revenue.
i. How Big is the Industry?
The sports and recreation industry that the basketball facility business is a part of is a significant sector within the global economy. As a matter of fact, in 2019, a report by PwC estimated the global sports market to be worth around $488.5 billion.
ii. Is the Industry Growing or Declining?
The basketball facility industry was experiencing growth and popularity. Basketball is a widely played and watched sport globally, with a dedicated fan base and participation at various levels, from recreational to professional. The demand for basketball facilities, training programs, leagues, and tournaments has been on the rise, especially in regions where basketball is highly popular.
iii. What are the Future Trends in the Industry?
The integration of technology in basketball facilities is expected to increase, with features such as digital tracking systems, virtual reality training, data analytics, and interactive experiences to enhance player performance and engagement.
Facilities may expand their offerings beyond traditional basketball training to include fitness programs, sports performance training, injury prevention, and recovery services to cater to the holistic needs of athletes.
There may be an increasing emphasis on sustainability, with facilities implementing energy-efficient technologies, utilizing eco-friendly materials, and adopting environmentally conscious practices. Facilities may seek to enhance the fan experience by integrating technologies such as live streaming, interactive displays, and social media integration, allowing fans to engage with games and events both on-site and remotely.
iv. Are There Existing Niches in the Industry?
No, there are no niche ideas when it comes to the basketball line of business. This is because the basketball facility business is a niche idea in the sports and recreation industry.
v. Can You Sell a Franchise of Your Business in the Future?
Oakmont Sports® Basketball Facility, Inc. has plans to sell franchises in the nearest future and we will target major cities with growing families in the United States of America.
- Potential economic downturns or fluctuations that may affect customer spending on non-essential activities like basketball
- Shifts in customer preferences towards alternative sports or leisure activities may reduce demand for basketball facilities.
- Competition from existing and new basketball facilities in the region
- Unforeseen events such as natural disasters, pandemics, or regulatory changes may disrupt operations or limit customer access to the facility.
i. Who are the Major Competitors?
- Life Time Inc.
- Elevate Hoops
- Premier Basketball Tournaments
- Mamba Sports Academy
- The Basketball Tournament (TBT)
- IMG Academy
- The Hoop Group
- The Fieldhouse
- Drive Nation Sports
- D1 Training
- Pro Skills Basketball
- The Basketball Factory
- Spooky Nook Sports
- Next Level Sports Complex
- PGC Basketball
- Impact Basketball
- The Sports Academy
- American Sports Centers
- Upward Sports
- The Factory Basketball.
ii. Is There a Franchise for the Basketball Facility Business?
Yes, there are franchise opportunities for basketball facility business, and here are some of them;
- D1 Training
- Hoop Heaven
- Pro Skills Basketball
- i9 Sports
- Sky Zone Trampoline Park
- Kids in Sports
- The Little Gym
- Skyhawks Sports Academy
- American Basketball Association (ABA).
iii. Are There Policies, Regulations, or Zoning Laws Affecting Basketball Facility Business in the United States of America?
Yes, there are various policies, regulations, and zoning laws that can affect a basketball facility business in the United States. Policies, regulations, and zoning laws can vary at the local, state, and federal levels in the United States.
Local zoning regulations may specify whether basketball facilities are allowed in residential, commercial, or mixed-use zones. It’s important to review the zoning requirements and obtain the necessary permits and approvals for the construction or operation of basketball courts or facilities.
Noise regulations can affect basketball facility businesses, especially if the facilities are located in residential areas. Local ordinances may set limits on the permissible noise levels during specific hours of the day. Compliance with noise regulations may require implementing sound mitigation measures or setting specific operating hours for basketball activities.
The Americans with Disabilities Act (ADA) sets accessibility standards for public accommodations, including sports facilities. Basketball facilities may need to comply with ADA guidelines to ensure accessibility for individuals with disabilities.
a. Who is Your Target Audience?
i. Age Range
The facility aims to cater to basketball enthusiasts of all ages. This includes children, teenagers, young adults, adults, and even senior individuals who have a passion for basketball and want to engage in basketball-related activities.
ii. Level of Education
There is no specific educational requirement for the target audience. The facility welcomes individuals with varying levels of education, from school-going children to college students, working professionals, and retirees.
iii. Income Level: The facility aims to be inclusive and serve individuals from different income levels.
Oakmont Sports® Basketball Facility, Inc. aims to be inclusive and welcomes individuals from all ethnic backgrounds.
While the primary language of communication may be English, the facility will strive to accommodate individuals who speak different languages.
vi. Geographical Location
The target audience for Oakmont Sports® Basketball Facility, Inc. primarily resides in or around Chicago, Illinois. The facility aims to attract individuals from the local community, nearby neighborhoods, and potentially even visitors or tourists with a passion for basketball.
The facility caters to individuals with an active and sporty lifestyle. It appeals to basketball players who are passionate about the sport, seeks to improve their skills, engage in competitive play, or simply enjoy recreational basketball activities.
b. Advertising and Promotion Strategies
- Host Themed Events That Catch the Attention of Potential Clients.
- Tap Into Text Marketing.
- Use FOMO to Run Photo Promotions.
- Share Your Events in Local Groups and Pages.
- Turn Your Social Media Channels into a Resource
- Develop Your Business Directory Profiles
- Build Relationships with other indoor sports and recreational service providers and related organizations in our Area
i. Traditional Marketing Strategies
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Broadcast Marketing -Television & Radio Channels.
- OOH Marketing – Public Transit like Buses and Trains, Billboards, Street shows, and Cabs.
- Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
ii. Digital Marketing Strategies
- Social Media Marketing Platforms.
- Influencer Marketing.
- Email Marketing.
- Content Marketing.
- Search Engine Optimization (SEO) Marketing.
- Affiliate Marketing
- Mobile Marketing.
iii. Social Media Marketing Plan
- Start using chatbots.
- Create a personalized experience for each of our clients.
- Create an efficient content marketing strategy.
- Create a community for our freelance marketers and influencers.
- Gear up our profiles with a diverse content strategy.
- Use brand advocates.
- Create profiles on relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
Oakmont Sports® Basketball Facility, Inc. will adopt the following pricing strategies:
- Cost-Plus Pricing
- Value-Based Pricing
- Competitive Pricing
- Dynamic Pricing
- Bundle Pricing
Sales and Distribution Plan
a. Sales Channels
Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, freelance marketers, and social media influencers to help refer clients to us.
Oakmont Sports® Basketball Facility, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our clients.
b. Inventory Strategy
The fact that we will need basketball supplies per time means that Oakmont Sports® Basketball Facility, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse.
We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.
c. Payment Options for Customers
Here are the payment options that Oakmont Sports® Basketball Facility, Inc. will make available to its clients.
- Bank Transfers
- Credit or Debit Card
- Electronic Payment Systems such as PayPal or Venmo.
d. Return Policy, Incentives, and Guarantees
As a Basketball facility, we will implement a return policy that allows customers to cancel their booking or reschedule for a future date if they cannot attend due to unforeseen circumstances.
To encourage repeat business and positive customer reviews, we will offer various incentives to customers. We will offer loyalty programs where customers earn points for every visit and can redeem them for discounts or freebies. We will also offer special discounts to customers who refer friends or family to our center.
We will also offer promotions or themed events during holidays or special occasions, such as Halloween or Valentine’s Day.
As a Basketball facility, we will guarantee the safety and quality of our services. We will do this by ensuring that all equipment is well-maintained and that all staff are trained in safety protocols and are available to assist customers as needed.
e. Customer Support Strategy
Our customer support strategy will involve ensuring that clients have easy access to contact our basketball facility business through multiple communication channels, such as email, phone, and social media. We will also make sure that all contact information is clearly displayed on the business’s website and promotional materials.
We will foster a culture of putting clients first, where staff are trained to listen actively and empathize with clients’ needs. We will encourage staff to go the extra mile to ensure clients feel valued and supported. We will implement a CRM system to manage client data, track appointments, and follow-up activities.
Our operational plan will involve developing and marketing a range of basketball programs and services that cater to clients with different needs, including children and people with disabilities, veterans, and professionals.
Overall, we plan to expand our revenue by 25 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting partnerships and referrals that will enable the firm to boost our service offerings and support revenue growth.
a. What Happens During a Typical Day at a Basketball Facility?
- Before opening the doors, staff at the center typically clean the facility, inspect the equipment, and make sure everything is in good condition for customers.
- Conducting basketball sessions
- Throughout the day, staff members monitor customers and the facility to ensure that everyone is following safety protocols and that equipment is in good working condition. They may also restock supplies or perform minor maintenance tasks as needed.
- Staff members also answer questions from customers regarding the facility, booking inquiries, or general inquiries about the game.
- At the end of the day, staff members clean up the facility and prepare it for the next day of operations.
b. Production Process
There is no production process when it comes to a basketball facility business.
c. Service Procedure
Once the center is open, staff members greet customers, check them in, and provide a brief orientation on safety procedures and the rules of the game. Staff members then assist customers in selecting their basketballs and accessories and provide instructions on proper basketball techniques.
They may also lead games or competitions among customers. Throughout the day, staff members monitor customers and the facility to ensure that everyone is following safety protocols and that equipment is in good working condition. They may also restock supplies or perform minor maintenance tasks as needed.
Staff members also answer questions from customers regarding the facility, booking inquiries, or general inquiries about the game.
d. The Supply Chain
Oakmont Sports® Basketball Facility, Inc. will establish a business relationship with wholesale supplies of basketball supplies and merchandise.
e. Sources of Income
Oakmont Sports® Basketball Facility, Inc. will make money from;
- Booking fees
- Walk-in fees
- Private events such as corporate team-building activities, birthday parties, or bachelor/bachelorette parties for which they charge a flat fee
- Food and beverage sales
- Merchandise sales
- Memberships and loyalty programs
- Advertising and sponsorships.
a. Amount Needed to Start Our Basketball?
Oakmont Sports® Basketball Facility, Inc. would need an estimate of $1.2 million to successfully set up our basketball facility in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.
b. What are the Costs Involved?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $7,300.
- Marketing, Branding, and Promotions – $5,000.
- Business Consultant Fee – $2,500.
- Insurance – $5,400.
- Rent/Lease – $550,000.
- Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
- Operational Cost (salaries of employees, payments of bills et al) – $70,000
- start-up inventory – $85,000
- Store Equipment (cash register, security, ventilation, signage) – $4,750
- Equipment and maintenance – $150,000
- Website: $600
- Opening party: $3,000
- Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much Will It Cost?
Oakmont Sports® Basketball Facility, Inc. will not initially build a new facility for our basketball facility; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.
d. What are the Ongoing Expenses for Running a Basketball Facility Business?
- Rent or lease payments
- Utilities such as electricity, gas, water, and other utilities needed to operate the facility
- Equipment maintenance
- Staff salaries.
- Marketing and advertising
- Supplies such as basketballs, rings, nets, and court accessories, and other supplies like cleaning materials, first aid kits, and office supplies.
- Taxes and permits
- Credit card processing fees
- Renting additional equipment.
e. What is the Average Salary of your Staff?
- Chief Executive Officer (Owner) – $55,000 per year
- Facility Manager – $40,000 per year
- Accountant/Cashier – $36,0000
- Marketing and Sales Officer – $35,000 per year
- Coach/Instructor/Assistant (5) – $35,000 per year
- Customer Care Executive/Front Desk Officer – $25,396 per year
- Cleaners – $22,000 per year
- Security Officers – $21,150 per year.
f. How Do You Get Funding to Start a Basketball facility?
- Raising money from personal savings and sale of personal stocks and properties
- Applying for a loan from your bank/banks
- Pitching our business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
- Source for soft loans from our family members and friends.
a. How Much Should You Charge for Your Product/Service?
- Court Rentals: Hourly court rental fees typically range from $30 to $150 per hour, depending on the facility’s quality, location, and demand. Premium or specialized courts may have higher rental rates.
- Membership Fees: Monthly membership fees can range from $50 to $200, depending on the facility and the included benefits.
- Training Programs: These can range from $100 to $500 per month, depending on the duration, intensity, and expertise of the coaching staff.
- Leagues and Tournaments: These fees can range from $50 to several hundred dollars, depending on the league format, duration, and level of competition.
- Additional Services: We will offer additional services such as coaching clinics, skills camps, fitness classes, or specialized training sessions. The pricing for these services can vary widely, depending on the duration and expertise provided.
b. Sales Forecast?
- First Fiscal Year (FY1): $360,000
- Second Fiscal Year (FY2): $470,000
- Third Fiscal Year (FY3): $560,000
c. Estimated Profit You Will Make a Year?
- First Fiscal Year (FY1): (20% of revenue generated)
- Second Fiscal Year (FY2): (25% of revenue generated)
- Third Fiscal Year (FY3): (30% of revenue generated)
d. Profit Margin of a Basketball Facility
The ideal profit margin we hope to make at Oakmont Sports® Basketball Facility, Inc. will be between 10 and 25 percent on service charges.
a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a franchise?
Oakmont Sports® Basketball Facility, Inc. will grow our basketball facility business by first opening other facilities in key cities in the United States of America within the first five years of establishing the organization and then will start selling franchises from the tenth year.
b. Where do you intend to expand to and why?
Oakmont Sports® Basketball Facility, Inc. plans to expand to;
- Los Angeles, California
- Chicago, Illinois
- New York City, New York
- Boston, Massachusetts
- Philadelphia, Pennsylvania
- Oakland/San Francisco, California
- Miami, Florida
- Houston, Texas
- Indianapolis, Indiana
- Portland, Oregon.
The reason we intend to expand to these locations is the fact that these cities have a thriving market for basketball facilities and indoor sports entertainment centers generally.
The founder of Oakmont Sports® Basketball Facility, Inc. plans to exit the business via family succession. We have positioned structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another without difficulties.
The company has successfully developed a detailed transition plan to smoothly hand over responsibilities to the new successor. This includes transferring ownership, training key personnel, and communicating with employees, customers, and suppliers about the change.