Monthly Budget DevelopmentSports and recreation facilities are low-margin businesses. Mistakes in monthly budgeting can not only damage the business during pre-opening, but can spell disaster in the long term. Using a proven budgeting breakdown based on expected revenue provides the framework for the most successful and profitable business model possible. When creating a monthly expected expense and revenue budget, it’s important to reference the original pro forma (financial forecast documents) and begin building based on current market and community conditions. Keep in mind a pro forma is built on industry data to be the best case scenario – it in itself is not a budget. Deviations from early stage planning can have serious impacts on the 3 or 5 year pro forma numbers. Value-Engineering potential revenue streams post-funding being an important example. For instance, removing an FEC component or deciding to provide free parking for events – has hundreds-of-thousands of dollars in the long term bottom line.
The SFM Difference
In the pre-opening development stage of a facility, SFM uses the pro forma and takes into account these project development changes to create a budget that stands up to real-world conditions. Clients and operators alike work together to set goals and expectations for the facility. SFM’s monthly budgets are based on SFA’s industry-leading sports facility business planning expertise as well as years of real-world experience.