Not all sports facilities are successful. Here we identify how to avoid such a fate.
Unfortunately, not all sports facilities are successful. It’s the way of the business world. The good news, though, is that you can typically avoid this fate with the proper planning and know-how. Below, we at Sports Facilities Advisory will detail some of the leading causes for a sports facilities demise and identify ways to make sure this undesirable fate doesn’t happen to you.
No Guaranteed Income
Being a successful owner of a sports complex or sports facility is all about managing your resources and cash flow. A good way NOT to do this is by not having any guaranteed income. What do we mean by this? Simple; don’t rely too heavily on short-term commitments.
Instead, focus on attaining as many long term commitments as you can. Not only will it make things easier for the client, but it will also help you generate regular cash flow. It’s the failure to build these long-term relationships that make generating money more difficult – especially in the short-term – which ultimately leads to a sports facility prematurely closing up shop.
Not Getting Money Upfront
Some sports facilities operate on systems where they bill the client after services rendered, or upon the client showing up to the facility. However, both of these practices leave the facility owner at risk to cancellations and no shows – which can drain a significant chunk of your potential revenue budget (with the amount of time and resources you put into those clients and appointments). Furthermore, the implementation of these methods leaves owners at risk to the possibility of not getting paid for the services provided even if a client shows up.
Relying Too Much on Rentals
Renting out sports facilities can be a great way to showcase your place, and they make for good additions as part of monthly plans. However, rentals aren’t incredibly profitable options, and they can even leave you exposed to certain legal matters. That’s not to say you shouldn’t rent out your facility entirely, just be mindful of how you rent out your place, and focus more on attaining long-term relationships when you can (as we discussed above).
Sports Facilities Advisory Can Help
If you’re worried that your sports facility is on the path to destruction, Sports Facilities Advisory can help! Our proven strategize to optimize sports complexes and facilities paired with the guidelines we outlined above, you’ll have the tools necessary to get your sports complex up and running, on its way to success.
Continue to browse our website for more information, or contact us today for any further facility planning information. We’ll be happy to answer any questions you have!