An indoor tennis facility is an encircled area for tennis players to hone their skills in preparation for games and competitions. Indoor tennis facility business falls under the indoor sports facilities management industry and players in this industry operate recreational indoor sports facilities.
Statistics have it that in the United States of America alone, there are about 9,736 licensed and registered indoor sports facilities. The industry is responsible for directly employing about 33,313 employees and the industry rakes in a whooping sum of $1 billion annually with an annual growth rate projected at 4.5 percent between 2016 and 2022. It is important to state that no establishment has a lion’s share of the available market in this industry.
Steps on How to Write an Indoor Tennis Facility Business Plan
Table of Content
Champion Nest® Indoor Tennis Facility Management Company, Inc. is a registered indoor tennis facility that will be located in San Antonio – Texas; in a sport-loving estate. We have been able to secure all the necessary permits for our facility.
Champion Nest® Indoor Tennis Facility Management Company, Inc. will ensure that all our facilities meet international standards. We have CRM software that will enable us to manage a one-on-one relationship with our customers no matter how large their number may grow.
Andrew Sampdoria is the founder and CEO of Champion Nest® Indoor Tennis Facility Management Company, Inc.
a. Our Products and Services
Champion Nest® Indoor Tennis Facility Management Company, Inc. will establish an ideal indoor facility for tennis players to practice in preparation for games and competitions and also for hosting tennis competitions. We are set to service a wide range of tennis lovers not just in San Antonio, Texas, but also all across major cities in Texas.
b. Nature of the Business
Our indoor tennis facility will operate essentially as a club where patrons can pick up membership and pay their subscription monthly, quarterly, or annually.
c. The Industry
Champion Nest® Indoor Tennis Facility Management Company, Inc. will operate under the indoor sports facilities management industry.
d. Mission Statement
Our mission is to establish a world-class indoor tennis facility that will not only attract individual tennis players but also attract organizers of world-class tennis competitions to host their competitions in our facility.
e. Vision Statement
Our vision is to become the ‘go-to’ indoor sports facility in the whole of Jefferson City and environs when it comes to indoor tennis.
f. Our Tagline (Slogan)
Champion Nest® Indoor Tennis Facility Management Company, Inc. – The Nest of Champions!
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Champion Nest® Indoor Tennis Facility Management Company, Inc. will be formed as a Limited Liability Company (LLC). We are forming an LLC to protect our personal assets by limiting our liability.
h. Our Organizational Structure
- Chief Executive Officer (Owner)
- Indoor Tennis Facility Manager
- Marketing and Sales Officer
- Coach/Tennis Instructor/Assistant (5)
- Customer Care Executive/Front Desk Officer
- Security Officers
i. Ownership/Shareholder Structure and Board Members
- Andrew Sampdoria (Owner and Chairman/Chief Executive Officer) 56 Percent Shares
- Peter Santos (Board Member) 14 Percent Shares
- Valene Joel (Board Member) 10 Percent Shares
- Maurene Linus (Board Member) 10 Percent Shares
- Lukas Morah (Board Member and Sectary) 10 Percent Shares.
- Ideal Location for indoor tennis facility
- Highly Experienced and Qualified Employees and Management
- Access to tennis clubs
- Highly Secured and Clean Facility
- Budget limitations
- Inability to attract superstar tennis players in our city
- Inability to properly manage off-peak seasons
- A new business that will be competing with well-established and government-owned indoor sports facilities
- Inability to retain our highly experienced and qualified employees longer than we want
- San Antonio is a thriving market for indoor tennis facilities.
- Good support structure for indoor sports facilities from the government and nonprofit organizations.
i. How Big is the Industry?
The indoor sports facilities management industry is pretty big. It is worth over $1 billion in the United States.
ii. Is the Industry Growing or Declining?
The indoor sports facilities management industry is declining in recent times. This is so because the industry revenue is projected to decline 12.5% in 2022 because of the coronavirus pandemic. Demand for industry services is expected to decline in highly populated regions, where social distancing regulations negatively influence youth sports leagues.
iii. What are the Future Trends in the Industry
The indoor sports facilities management industry is changing, and players in the industry are improvising. No doubt, technology, and social media will change the landscape of the indoor sports facilities management industry going forward. With revenue heavily linked to the millennial generation, participation in sports will likely dictate industry recovery over the next five years.
iv. Are There Existing Niches in the Industry? If YES, List them
There are niche ideas in the indoor tennis facilities line of business because indoor tennis facilities are a niche idea in the indoor sports facilities industry.
v. Can You Sell a Franchise of your Business in the Future?
Champion Nest® Indoor Tennis Facility Management Company, Inc. has plans to sell franchises in the nearest future and we will target the United Kingdom, Canada, and Nigeria.
- Competition from other indoor sports facilities.
- Community resistance
- Government regulations
- Liability problems
- Continuously changing consumer demands
i. Who are the Major Competitors?
- Oak Brook Tennis Center
- Lake Oswego Indoor Tennis Center
- Hanscom Indoor Tennis Center
- USTA Billie Jean King National Tennis Center
- Rome Tennis Center
- Ballenisles Tennis Center
- Charleston Tennis Club
- Hurd Tennis Center
- Wintergreen Resort
- Longboat Key Club and Resort
- Greenwood Tennis Center
- Dan Magill Tennis Complex
- Rancho Valencia
- New Shrewsbury Racquet Club
- Palmetto Tennis Center
- Hawkins Indoor Tennis Center
- Wessen Indoor Tennis Club
- Crestmont Indoor Tennis
- Westfield Indoor Tennis Club
- MSU Indoor Tennis Facility.
ii. Is There a Franchise for Indoor Tennis Facility Business?
- Tennis Time (Total Investment: $8,000 – $25,000).
iii. Are There Policies, Regulations, or Zoning Laws Affecting Indoor Tennis Facility Business?
Zoning laws require indoor tennis facilities to follow specific rules and regulations, including some that apply only to players in the industry. Please note that in many communities, zoning laws require indoor tennis facilities to apply for a permit from the city.
This application process allows the city’s zoning department to determine whether the indoor tennis facility meets the zoning rules of the community. Permits also ensure that all indoor tennis facilities are properly licensed with the county or state agencies.
a. Who Is Your Target Audience?
i. Age Range
Our target market falls within 3 years to 55 years
ii. Level of Educational
We don’t have any basic educational qualifications for those who we are targeting; everyone is welcome to use our facility.
iii. Income Level
Anyone who can afford our membership fee will be welcome to make use of our indoor tennis facility.
There is no restriction when it comes to the ethnicity of the people we will welcome in our indoor tennis facility.
There is no restriction when it comes to the language spoken by the people we will welcome in our indoor tennis facility.
vi. Geographical Location
Anybody from any geographical location will be welcomed in our indoor tennis facility.
Champion Nest® Indoor Tennis Facility Management Company, Inc. will not restrict any patron from our indoor tennis facility based on their lifestyle, culture, or race.
b. Advertising and Promotion Strategies
- Host Themed Events That Catch Attention.
- 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 Businesses in Your Area
i. Traditional Marketing Strategies
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Broadcast Marketing -Television & Radio Channels.
- OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street Furniture, and Cabs.
- Including direct sales, direct mail (postcards, brochures, letters, fliers), 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.
- Pay-per-click (PPC).
- Affiliate Marketing
- Mobile Marketing.
iii. Social Media Marketing Plan
- Start using chatbots.
- Create a personalized experience for our customers.
- Create an efficient content marketing strategy.
- Create a community for our audience.
- Gear up our profiles with a diverse content strategy.
- Use brand advocates.
- Create profiles on the relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
When working out our pricing strategy, Champion Nest® Indoor Tennis Facility Management Company, Inc. will make sure it covers premium, skimming, economy or value and penetration, In all our pricing strategy will reflect;
- Cost-Based Pricing
- Value-Based Pricing
- Competition-Based 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, managed service providers, marketplaces, or value-added resellers—to market our indoor tennis facility.
Champion Nest® Indoor Tennis Facility Management Company, Inc. will also leverage the 4 Ps of marketing which are the place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand product or service that is competitively priced.
b. Inventory Strategy
Champion Nest® Indoor Tennis Facility Management Company, 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 Champion Nest® Indoor Tennis Facility Management Company, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Return Policy, Incentives, and Guarantees
Champion Nest® Indoor Tennis Facility Management Company, Inc. will operate a no refund policy hence we will not provide compensation for purchased products or services (membership fees inclusive).
e. Customer Support Strategy
Our customer support strategy will involve seeking customer feedback. This will help us provide excellent customer service to all our patrons, it will help us to understand their needs, experiences, and pain points. Regularly, we will work towards strengthening our Customer Service Team and also Leverage multi-channel servicing as part of our customer support strategy.
We plan to expand our revenue by 50 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include organizing regular tennis competitions at the local and state levels, sale of tennis merchandise, and attracting tennis clubs. These strategies will enable the firm to boost our service offerings and support revenue growth.
a. What Happens During a Typical Day at an Indoor Tennis Facility Business?
- The facility is open for the day
- Administrative work is done concurrently
- The facility is cleaned, and ready to welcome patrons
- Patrons come in and they are practice tennis within the hours allotted to them.
- The facility is cleaned and arranged
- The facility is closed for the day.
b. Production Process (If Any)
There is no production process when it comes to the indoor tennis facility business.
Service Procedure (If Any)
When an indoor tennis facility is opened and everything is in place, they will either choose to welcome patrons based on membership or open their doors to people in the city.
c. The Supply Chain
Champion Nest® Indoor Tennis Facility Management Company, Inc. will rely on trusted agents to supply us with tennis balls, rackets, nets, and other tennis merchandise and we have been able to establish business relationships with wholesale suppliers of all these merchandises.
d. Sources of Income
- Indoor tennis facility rental services
- Sale of tennis balls, rackets, nets and other tennis merchandizes et al.
- Membership fee.
Our Membership fee will cost $20,000 for the start and then a $15,000 annual fee from the subsequent year (VAT inclusive and subject to change).
a. Amount Needed to Start your Indoor Tennis Facility Business?
Champion Nest® Indoor Tennis Facility Management Company, Inc. would need an estimate of $750,000 to successfully set up an indoor tennis facility in the United States of America. Please note that this amount includes the salaries of all the staff for the first month of operation.
b. What are the Cost 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 – $300,000.
- 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) – $60,000
- Start-up inventory – $25,000
- Counter area equipment (countertop, sink, ice machine, etc.) – $9,500
- Store Equipment (cash register, security, ventilation, signage) – $4,750
- Furnishing and Equipping – $250,000
- Website: $600
- Opening party: $3,000
- Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much Will it Cost?
Champion Nest® Indoor Tennis Facility Management Company, Inc. will build a new facility for our indoor tennis facility and it will cost us $650,000 (acquiring land, construction, furnishing, and equipping the indoor tennis facility inclusive).
d. What are the Ongoing Expenses for Running an Indoor Tennis Facility Business?
- Cost of supplies
- Cost of toiletries
- Utility bills (gas, internet, phone bills, signage and sewage et al)
- Maintenance of facility
- Salaries of employees
e. What is the Average Salary of your Staff? List the Job Position and their proposed salary based on industry rate and your startup capital
- Chief Executive Officer (Owner) – $55,000 per year
- Indoor Tennis Facility Manager – $38,000 per year
- Accountant/Cashier – $34,0000
- Marketing and Sales Officer – $32,000 per year
- Coach/Tennis Instructor/Assistant (5) – $30,000 per year
- Customer Care Executive/Front Desk Officer – $23,396 per year
- Cleaners – $18,000 per year
- Security Officers – $21,150 per year.
f. How Do You Get Funding to Start an Indoor Tennis Facility Business
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from, the government, donor organizations, and angel investors
- Source for soft loans from family members and friends.
a. How Much Should You Charge for your Service?
Aside from our membership fee, Champion Nest® Indoor Tennis Facility Management Company, Inc. will charge patrons based on the industry standards in the United States. For one-off usage, there is often a flat fee of $20 to $150 for a regular day, or say $400 for Saturdays.
b. Sales Forecast?
- First Fiscal Year (FY1): $350,000
- Second Fiscal Year (FY2): $750,000
- Third Fiscal Year (FY3): $1.2 million
c. Estimated Profit You Will Make a Year?
Champion Nest® Indoor Tennis Facility Management Company, Inc. are projecting to make;
- First Fiscal Year (FY1): $175,000 (50% of revenue generated)
- Second Fiscal Year (FY2): $337,000 (45% of revenue generated)
- Third Fiscal Year (FY3): $540,000 (45% of revenue generated)
d. Profit Margin of an Indoor Tennis Facility Business
The profit margin of an indoor tennis facility business is not fixed. It could range from 25 percent to 35 percent depending on some unique factors.
a. How do you intend to grow and expand?
Champion Nest® Indoor Tennis Facility Management Company, Inc. will grow our indoor tennis facility by first opening other outlets in key cities in the United States of America, the United Kingdom, and Nigeria within the first five years of establishing the business and then will start selling franchise from the sixth year.
b. Where do you intend to expand to and why? (Geographical locations)
Champion Nest® Indoor Tennis Facility Management Company, Inc. plans to expand to Sumter, South Carolina, Tinton Falls, New Jersey, Santa Fe, California, Stillwater, Oklahoma, Longboat Key, Florida, Wintergreen, Virginia, Charleston, West Virginia, Palm Beach Gardens, Florida and Portland, Oregon.
Internationally, we plan to expand to Canada, the United Kingdom, and Nigeria.
Champion Nest® Indoor Tennis Facility Management Company, Inc. intends to build a family business hence our exit plan will be family succession. For that reason, the founder Andrew Sampdoria is already grooming his son Wayne Sampdoria to take over from him.