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Encouraging Others to Invest in a Sports Complex
For private, non-professional developers, securing capital is most difficult part of taking your sports complex or event center from concept to concrete. Without the right funding and investment your project may end up severely limited, delayed, or might end up grinding to a halt altogether. Securing some exploratory cash from interested parties is one thing, but obtaining long-term investment requires much more time, dedication, and financial savvy. What can you use to encourage investors to get involved and make this commitment? Sports Facilities Advisory explores in more depth in this new blog.
Lead with a Solid Financial Forecast (Pro Forma)
Whether from a traditional lending source, such as a bank, or from private investors, securing capital towards a for-profit business is ultimately a mix of ROI and social capital. Investors will want to see a solid business plan and financial forecast (pro forma). The financial forecast should be extremely detailed, with estimated hard and soft-costs for construction and start-up, economic impact forecasts, and program plans according to the space in your facility. The pro forma should also include the organizational chart and associated salaries. The detail demonstrated in the pro forma will communicate to your potential investor that you (or a qualified agency like SFA) has performed thorough market research and applied solid business planning principles.
Create a Mission-Focused Organization
Sincerity is a much bigger part of encouraging investment than many people realize. The focus on funding and seeking out investors can easily overwhelm the ‘why’ of your business, which is your mission, especially when you are excited to get a project started.
When you are starting to seek out investments for a project, keep the purpose of what you are doing in mind. Remember why you decided to open a sports facility or recreation center and the impact you know it will have on your community – be sure to tell this story in your financial presentation and corresponding materials, such as an investor information packet.
Focus on Impact
Part of engagement is sharing your projected impact. Individuals can begin this research by talking with members of the community, local coaches and club owners, and different user groups about the needs in a market area or community that are not being met. Select some specific examples that you can discuss with potential investors. Consider the mental, physical, and emotional health of the potential participants, the economic benefits, and surrounding real estate and other tangential benefits to your project.
Look Ahead with Optimism, but Avoid Over-Promising
Enthusiasm is infectious, but it can sometimes be dangerous. While a focus on goals and the future is certainly important in securing investment and funding, it is also important not to over-promise. At SFA, lead clients through a business development planning session that helps them craft the vision for their project that is the right size, right model, and right for the members of their community. We often see projects that have ballooned over their original scope or vision as developers have heard from their community that they need courts, and turf, and a pool, and a sheet of ice….and, and, and. By staying focused on your vision and mission, you can avoid this common pitfall.
Get Started with Help from Sports Facilities Advisory
Whether you are in the initial stages of planning a project, or you are currently looking for funding, contact the team at Sports Facilities Advisory today. We have experience with a wide variety of sports complexes and recreation centers nationwide — from planning to construction to management. Let us bring our experience and knowledge to your project.