How do you know that what you are providing in your proposed sports facility or recreation center is what that local market wants? A market opportunity report is an effective way to identify what is lacking in a specific market so that you can tailor your project plans accordingly. What kind of things should be included in a market opportunity report? As leaders in the recreation facility funding industry, the team at Sports Facilities Advisory can explain.
Identifying the Opportunity
The overall drive behind this kind of assessment is to identify the specific opportunities available in a particular market. When it comes to a sports facility or event center, this could be something like local demand for a facility that offers after-school youth activities, generates economic impact through sports tourism, or provides local residents with a place to play. The opportunity report will identify and establish this need through a variety of factors.
Is There Established Competition?
Another important part of a market opportunity report is identifying all local and regional competitors. Competition in your market will influence how you plan, design, and market your facility. Understanding your competitors includes researching their programs, amenities, online reviews, and pricing among other variables.
Offering Something Competitors Do Not
Establishing what your potential competitors offer is a vital part of staying ahead of them. This is done either by offering different, modern versions of the same facilities or activities, or building new ones on top of what they already offer. Assess the competition and then plan on fulfilling the needs that they are unable to meet in that market.
Financial viability is another important part of your market opportunity assessment. Understanding the projected ongoing revenues and expenses for your facility is key. Another key is understanding your projected construction and start-up costs. Securing both hard and softs costs when obtaining capital for the project is critical. During construction and development there will be a lot of cash flowing out, and little flowing in.
Potential Outside Factors
There will always be the potential for unexpected factors that impact your opportunity. You cannot predict what is going to happen, but you can take some potential scenarios into account when you are planning. This includes things like whether or not a market is likely to grow or shrink, new technological innovations that may impact what you offer, local environmental issues, and a number of other potential hurdles.
Talk to the Sports Facilities Advisory Team
These items are the beginning of the planning phase. Keeping these topics in mind from the initial stages of your project provides a good foundation, but you need the best in industry guidance to secure success. Contact the team at Sports Facilities Advisory to start working with funding and planning experts.