Feasibility studies (or the lack of) can make or break a sports complex.
In all long-term ventures, it is wise to have a detailed plan that determines if a project is worth pursuing. Feasibility studies cover many aspects of sports complex decisions, including development funding, sports complex design, financial projections, sports facility management/operational requirements, competitor analysis and an overarching description of the project itself.
To complete an accurate feasibility study, it is very beneficial (if not essential) to use a company like Sports Facilities Advisory to help create the most thorough study of new sports complexes. When done correctly, you will find that feasibility studies help make all aspects involved in managing, funding and opening your sports complex a simpler and more organized process.
Another great aspect of our feasibility studies is that we can apply these methods to sports complexes that are already in operation. These methods can help offer solutions to turn around failing venues as well as improve daily operations.
It’s important to note that a feasibility study is not a business plan – rather, it is used to project the likeliness of the success of the business before it is funded and opened.
Beginning Stages of Our Feasibility Studies
In the beginning stages of our feasibility studies, certain steps are taken to ensure this process goes smoothly. Development funding options for the project will be considered, along with any current business plan, while also considering the impact that your recreation center will have on the community. Sports tourism and tournaments can greatly increase your market size and can play a very important role when determining how to allocate sports complex resources.
Sometimes unanticipated changes might need to be made to ensure that sports facilities are more profitable, while also enhancing community participation. A simple example of this is a developer planning to build a basketball complex. It may be more efficient to build a basketball complex that can easily be converted into volleyball courts and serve as a multi-use facility.
Our feasibility studies will also measure alternatives among concessions. To increase the profitability of concessions, a knowledge of what concessions are selling the most, and when they are selling, is very important information.
Once the economic impact and business plan is verified as a viable approach, the project manager can choose to move forward. It is important to note that the end result may not give a single solution and should be used as a tool to determine if a company should or shouldn’t continue with, or add changes to their current business plan. Some of your earlier alternatives may all be profitable and leave you with a variety of options to choose from. Usually, each alternate option offered will include positive and negative aspects of each decision.
Feasibility studies can help you avoid very expensive mistakes while also ensuring business owners maximize potential profits. In the end, the decision is yours, but with the tools provided by our feasibility studies, the ball will definitely be in your court.