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In the evolving landscape of sports facility development, having a well-structured sports business plan is not just beneficial; it’s essential. This plan serves as your project’s foundation, guiding you through challenges and opportunities while ensuring long-term success and sustainability. At the heart of a solid sports business plan are two critical components: the feasibility study and the Pro Forma/financial forecast. Each plays a distinct yet interconnected role in the strategic planning process.
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Understanding Feasibility Studies
Feasibility studies are the first crucial step in assessing a project’s potential. They provide a comprehensive analysis of market conditions, community needs, and competitive landscapes. Why are these studies so important? Because they give public and private clients the necessary data to better align their projects with market realities and community demands, significantly increasing the chances of developing a successful facility. By leveraging data from over 3,000 communities, more than two decades of industry experience, the development of numerous youth and amateur sports facilities, and the real-world management expertise gained from the day-to-day operations of more than 60 facilities across the United States, our feasibility studies offer deep insights, helping you make informed decisions.
Imagine the setback of launching a facility that lacks sufficient demand or faces excessive competition. A well-executed feasibility study provides a clear snapshot of your project’s position in the market. This is especially vital for public or municipal projects, where understanding and meeting community expectations is paramount.
The Necessity of Pro Forma Financial Forecasting
Once feasibility is established, the focus shifts to financial viability. Financial forecasting through the development of a five-year Pro Forma is where the vision for a new facility meets fiscal responsibility. This tool provides a detailed financial overview, including a five-year cash flow forecast and a 20-year financial projection. It covers all financial aspects, projecting the revenue and expenses of every single business unit within the planned facility, lists staffing and operational demands, and depending on the business model, can also include a detailed direct economic impact forecast that estimates new non-local visitation and room night generation from tournaments and events hosted at the modeled facility. The pro forma is a complex but critical tool to understand your project’s financial landscape.
A strong financial case is key to attracting investors and securing funding. A Pro Forma not only showcases potential profitability but also guides critical financial strategies, such as cost management and funding allocations. Our high-quality forecasts provide stakeholders with the confidence needed to proceed with development, backed by reliable data gained from decades of consulting experience and real-world data from development partners and the management of over 60 facilities nationwide.
