Do you want to start a batting cage company and need to write a business plan? If YES, here is a sample batting cage business plan template & feasibility report. If you live in an area where people play softball or baseball, you can make a fortune by providing facilities that will help them practice and enjoy their games. Of course, people that play softball or baseball usually don’t have the capacity to manufacture all they need to play the game hence the need for batting cage manufacturing companies.
A batting cage is an encircled area for baseball or softball players to learn the skill of batting and to hone their skills in preparation for games and competitions. The ideal materials used for batting cages are netting, and they are usually rectangular in shape.
The batting cage manufacturing business thrives on creativity and good business skills. Any aspiring entrepreneur with technical/construction skills can start this business, and as long as they are creative, they can get people to promote their brand.
If you are interested in starting a batting cage manufacturing company, then you would find this sample batting cage manufacturing company business plan template highly useful.
A Sample Batting Cage Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
Batting cage manufacturing business falls under the Golf Driving Ranges & Family Fun Centers industry and players in this industry manufacture or provide recreational and amusement services through a variety of establishments, which include golf driving ranges, miniature golf centers, go-kart racetracks, batting cages, family fun centers, recreational sports leagues and a host of outdoor recreational activities.
It is important to state that businesses like arcades, themed amusement parks, gambling facilities, golf courses, country clubs, skiing facilities, marinas, fitness and recreational sports centers and bowling alleys are not part of the golf driving ranges & family fun centers industry.
If you have been following the Golf Driving Ranges and Family Fun Centers industry, you would have realized that the industry exhibited revenue growth in recent time, in spite of many consumers being time-strapped. While the industry struggled with mounting competition from alternative leisure activities, such as fitness, many operators generated industry revenue growth on the basis of convenience.
For example, golf driving ranges attracted time-strapped individuals, due to them being more time-efficient compared with consumers playing nine to 18 holes on the golf course.
Going forward, the revenue generated in the industry is projected to grow as operators in the industry continue to enhance their product portfolios and services to attract families, regardless of their reduced time allotted for leisure and fun.
Statistics has it that in the united states of America alone, there are about 53,308 licensed and registered golf driving ranges & family fun centers responsible for directly employing about 156,658 employees and the industry rakes in a whooping sum of $11 billion annually with an annual growth rate projected at 4.5 percent between 2011 and 2016. It is important to state that no establishment has a lion share of the market.
A recent research published by IBISWORLD shows that during the past five years, the Golf Driving Ranges and Family Fun Centers industry exhibited growth due to many industry operators updating their facilities to attract consumers.
This investment differentiated operators’ product portfolios from other consumer leisure activities, such as at-home digital entertainment. The report further stated that, to attract budget-conscious consumers, some industry operators implemented coupons and discounts, which generated awareness about family fun centers and golf driving ranges as a local entertainment option.
Additionally, industry operators focused on specializing their product portfolio to attract particular demographics, such as adding bowling alleys to develop a strong customer base among families with older children.
Some of the factors that encourage entrepreneurs to start their own batting cage manufacturing company could be that the business is thriving and batting cages can be used not only by professional baseball or softball players, but also people who play for leisure and who would want to have their own batting cages in their yard.
The batting cage manufacturing business is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small or large scale.
2. Executive Summary
Softball Zone® Batting Cage Manufacturer, Inc. is a registered batting cage manufacturing company that will be located in Jefferson City – Missouri. We have been able to secure all the necessary permits for our facility.
Softball Zone® Batting Cage Manufacturer, Inc. will manufacture a wide range of batting cage designs for baseball or softball players. We are set to services a wide range of clientele not just in the Jefferson City, but also in all across major cities in the United States.
We are aware that there are several batting cage manufacturing companies all around the United States of America, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to compete with all our competitors.
Softball Zone® Batting Cage Manufacturer, Inc. will ensure that all the batting cages that we manufacture for our customers are of the highest quality and are highly durable and affordable. We want to build a business with a wide range of client base cut across people of different financial status. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large their numbers may grow to.
Softball Zone® Batting Cage Manufacturer, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products.
Softball Zone® Batting Cage Manufacturer, Inc. is owned by Campbell Johnson. Mr. Johnson has a Degree in Production Engineering, with over 19 years’ experience in the manufacturing industry, working for some of the leading brands in the United States.
3. Our Products and Services
Softball Zone® Batting Cage Manufacturer, Inc. is in the batting cage manufacturing industry to manufacture a wide range of designs of batting cages for baseball or softball players. We are set to service a wide range of clientele not just in the United States of America, but also all parts of the world, which is why we will ensure that we go all the way to give our clients options.
We will do all that is permitted by the law of the United States to achieve our business goal, aim and ambition.
4. Our Mission and Vision Statement
- Our vision is to become the ‘go to’ company in the whole of Jefferson City and environs when it comes to manufacturing standard batting cages.
- Our mission is to establish a world-class batting cage manufacturing company whose products will not only be retailed in the United States of America, but also be exported to other countries of the world.
Our Business Structure
Our intention of starting a batting cage manufacturing company is to build a standard company in Jefferson City – Missouri. Although our batting cage manufacturing company might not be as big as the leaders in the industry, but we will put the right structures in place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all stakeholders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.
In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Production Manager
- Human Resources and Amin Manager
- Sales and Marketing Manager
- Batting Cage Designers
- Customer Services Executive
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board.
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment and managing interviewing process
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
- Responsible for managing the daily activities in the batting cage manufacturing factory
- Ensures that proper records of batting cages and other related products are kept and warehouse does not run out of finished products
- Ensure that the factory is in tip top shape and easy to locate
- Interfaces with third – party suppliers (vendors) of raw materials
- Control batting cages distribution and supply inventory
- Supervise the workforce in the batting cage manufacturing factory.
Sales and Marketing Manager
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer purchases
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the company
Batting Cage Designers and Machine Operators
- Responsible for designing and manufacturing of batting cages
- Visit customers location to access the kind of designs that will fit into their compound and give recommendations
- Recommends the best materials and quantity materials to be used in the process
- Handle any other duties as assigned by the production manager
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Client Service Executive
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
6. SWOT Analysis
Softball Zone® Batting Cage Manufacturer, Inc. is set to become one of the leading batting cage manufacturing companies in the United States of America and we are aware that it will take the right business concept, management and organizational structure to achieve our goal.
We are quite aware that there are several batting cage manufacturing companies all over the United States of America, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Softball Zone® Batting Cage Manufacturer, Inc. employed the services of an expert HR and Business Analyst with bias in the manufacturing industry to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Softball Zone® Batting Cage Manufacturer, Inc.;
Our core strength lies in the quality of our finished cages, the power of our team and the state-of-the-art batting cage manufacturing factory that we own. We have a team of highly trained and experienced batting cage designers and support staff members that can produce high quality cages. We are well positioned in the heart of Jefferson City – Missouri and we know we will attract loads of clients from the first day we open our company for business.
A major weakness that may count against us is the fact that we are a new batting cage manufacturing company and we don’t have the financial capacity to compete with multi – million dollars’ batting cage manufacturing companies. So also, we may not have enough cash reserve to promote our brand the way we would want to do.
The fact that we are going to be operating our batting cage manufacturing company in Jefferson City – Missouri provides us with unlimited opportunities to sell our cages to a large number of customers. As per capita disposable income rises, more consumers will be able to allocate expenditures toward leisure activities.
Furthermore, rising household income also translates into greater spending on food, beverages and merchandise items at industry establishments. Per capita disposable income is expected to increase in 2019, representing a potential opportunity for the industry. Going forward, innovative offerings and rising disposable income will drive industry demand.
When consumers have more leisure time, playing of softball and baseball increases. As the unemployment rate continues to fall, more consumers will have funds to allocate toward industry services but will be time-strapped as they return to work. Thus, in 2019, time spent on leisure and sports is expected to stagnate, representing a potential threat to the industry. So also, unfavorable government policies may also pose a threat for businesses such as ours.
7. MARKET ANALYSIS
- Market Trends
If you take a closer look at the batting cage manufacturing industry, you will realize that stagnant product prices and of course key demographic variables have affected the industry over the years. Surprisingly, growth in the number of businesses that make use of batting cages has not been sufficient to compensate for stagnant prices.
Going forward, wealth gains resulting from increases in per capita disposable income and improvements in equity markets will positively impact the sale of batting cages.
Large batting cage manufacturing companies have economies of scale in distribution and marketing and small scale batting cage manufacturing companies can compete successfully by targeting low income earning brackets in the society.
Domestic operators have been forced to settle for lower profit margins to compete with low-cost imports. Lastly, as part of marketing strategies, batting cage manufacturing companies ensure that they are always improvising and following the trends if indeed they want to maintain their market share in the industry.
8. Our Target Market
We know that there is a large market for batting cages in the United States of America and of course all across the globe. In view of that, we have positioned our company to service the clientele in the United States of America and other parts of the world.
We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us. We are in the batting cage manufacturing industry to manufacture a wide range of designs for the following customers;
- Male and female, adults and children that make use of batting cages for practice
- Family entertainment center operators
- Baseball and softball clubs
- Gym and sport centers
Our Competitive Advantage
A close study of the batting cage manufacturing industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative with your designs and market approach, customer centric and proactive if you must survive in this industry. We are aware of the stiff competition and we are prepared to compete favorably with other leading companies in the United States.
Our batting cage manufacturing company is located in an ideal property highly suitable for the kind of company that we want to run.
Our Competitive Advantage lies in the high quality of our finished products, the power of our team and the state of the art batting cage manufacturing factory that we own. We have a team of highly trained and experienced batting cage designers and support staff members that can produce high quality batting cages.
We are well positioned in the heart of Jefferson City – Missouri and we know we will attract loads of clients from the first day we open our company for business.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Softball Zone® Batting Cage Manufacturer, Inc. is in business to manufacture and retail a wide range of designs of batting cages.
10. Sales Forecast
One thing is certain when it comes to batting cages manufacturing business, if you are into the manufacturing of batting cages, you will always attract customers cum sales and that will translate to increase in revenue generation for the business.
We are well positioned to take on the available market in the United States of America and we are quite optimistic that we will meet our set target of generating enough income/profits from our first six months of operation and grow the business and our clientele base.
We have been able to examine the batting cage manufacturing industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Softball Zone® Batting Cage Manufacturer, Inc., it is based on the location of our business and other factors as it relates to batting cage manufacturing start – ups in the United States;
- First Fiscal Year (FY1): $350,000
- Second Fiscal Year (FY2): $750,000
- Third Fiscal Year (FY3): $1 million
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor manufacturing or retailing batting cages within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location to launch Softball Zone® Batting Cage Manufacturer, Inc. we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become one of the preferred choice for customers not only in Jefferson City – Missouri, but also throughout the United States.
We hired experts who have good understanding of the batting cage manufacturing industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in the United States of America.
In summary, Softball Zone® Batting Cage Manufacturer, Inc. will adopt the following sales and marketing approach to win customers over;
- Open our batting cage manufacturing company in a grand style with a party for all.
- Introduce our batting cage manufacturing company by sending introductory letters alongside our brochure to businesses that make use of batting cages and key stake holders in Jefferson City – Missouri and other parts of the United States
- Ensure that we manufacture a wide range of designs of batting cages
- Make use of attractive hand bills to create awareness and also to give direction to our retailing outlets
- Position our signage/flexi banners at strategic places around Jefferson City – Missouri
- List our business and products on yellow pages ads (local directories)
- Leverage on the internet to promote our business
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
Despite the fact that our batting cage manufacturing company is well located, we will still go ahead to intensify publicity for the business.
Softball Zone® Batting Cage Manufacturer, Inc. has a long – term plan of opening our outlets in various locations all around Jefferson City – Missouri and other key cities in the United States, which is why we will deliberately build our brand to be well accepted in Jefferson City – Missouri before venturing out.
Here are the platforms we intend leveraging on to promote and advertise Softball Zone® Batting Cage Manufacturer, Inc.;
- Place adverts on community – based newspapers, radio and TV stations.
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Jefferson City – Missouri
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise our batting cage manufacturing company and showroom in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and trucks and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals.
12. Our Pricing Strategy
Aside from quality, pricing is one of the key factors that gives leverage to batting cage manufacturing company. We know we don’t have the capacity to compete with leaders in this line of business, but we will ensure that the prices and quality of all the batting cages that we manufacture are competitive with what is obtainable amongst batting cage manufacturing companies within our level.
- Payment Options
The payment policy adopted by Softball Zone® Batting Cage Manufacturer, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Softball Zone® Batting Cage Manufacturer, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via Point of Sale Machine (POS)
- Payment via online bank transfer
- Payment via check
In view of the above, we have chosen banking platforms that will enable our client make payment for the purchase of our products without any stress on their part.
13. Startup Expenditure (Budget)
Starting a manufacturing business requires detailed planning and budgeting hence the need for us to carry out a thorough market research and feasibility studies for us to be able to have a clear estimate of the amount needed to launch the business and the areas in which we will spend the money.
In view of that, here are the key areas where we will spend our startup capital on;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of Softball Zone® Batting Cage Manufacturer, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The total cost for hiring Business Consultant – $2,500.
- The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400.
- The total cost for long – term leasing of a standard manufacturing factory and warehouse- $250,000
- The total cost for remodeling the manufacturing factory and warehouse – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits – ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The total cost for Start-up inventory (purchase of batting cage making tools and equipment and the purchase of batting cage making raw materials inclusive) – $100,000
- The total cost for counter area equipment – $9,500
- The total cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The total cost for the purchase and installation of CCTVs: $10,000
- The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
- The total cost of launching a website: $600
- Miscellaneous: $10,000
We would need an estimate of $450,000 to successfully set up our batting cage manufacturing business.
Generating Funds/Startup Capital for Softball Zone® Batting Cage Manufacturer, Inc.
Softball Zone® Batting Cage Manufacturer, Inc. is a private registered family business that is owned and financed by Campbell Johnson. He has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $150,000 (Personal savings $100,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business closes shop.
One of our major goals of starting Softball Zone® Batting Cage Manufacturer, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to manufacture durable and quality batting cages and to retail our wide range of designs of batting cages a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Softball Zone® Batting Cage Manufacturer, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare is well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the facility (batting cages manufacturing factory and warehouse): In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of batting cage making equipment: Completed
- Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Establishing business relationship with vendors – supplier of batting cage making raw materials, key stakeholders and wholesale suppliers of batting cage related products: In Progress