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Basketball Business PlanIntro from Mark Rauterkus, activist and webmaster at CLOH.Org
 Business Plan Outline1.0 Executive SummarySports City- Pittsburgh will be a full-service, 65,000 square foot, multisport complex. Close to downtown Pittsburgh, it is conveniently located. There are currently no other sports facilities like this one anywhere in Western Pennsylvania. This plan will be used to define the scope of our services, as well as a means of gaining the necessary investments to open the facility. It will also be used on a continual basis in the evaluation of Sports City-Pittsburgh's mission, goals, and objectives. The keys to success for Sports City-Pittsburgh are our ability to market effectively, creating an unmatched "cool" atmosphere where people will like to be, and hiring qualified/certified and knowledgeable staff to aid in the running of our programs and leagues. Designed for perfect year-round athletic and fitness enjoyment, this luxurious club will offer four championship indoor tennis courts, three regulation sized basketball courts with hardwood floors and two regulation handball/racquetball courts. We will have a complete fitness center with top-of-the-line equipment from Cybex, York, and Precor. Additional features include a nursery, pro shop, large locker rooms with a sauna and steam bath, and a spacious lounge area with a fireplace and party facilities. The sports and fitness club industry is a booming business that is projected to continue its current trend. Sports City-Pittsburgh is conservatively projecting a net profit of $193,987 in its first year of operation. 2.0 ObjectivesThe main objectives for Sports City-Pittsburgh are as follows: *Make Sports City-Pittsburgh the first basketball oriented sports complex in Western PA and grow the business to the point where Sports City-Pittsburgh is a household name. *Sell 600 memberships in year one, 1,000 by the end of year two, and 1,250 by the end of year three. *Organize and develop various sports leagues and market them effectively so as to fill them to capacity (i.e. five leagues running three times a year with 8 - 12 teams per league). *Sponsor and/or support four community events in our first year of operation. *Show at least a 5% return to investors in the first year of operation. 3.0 MissionSports City-Pittsburgh is a multisport and fitness complex designed to be used by the residents of Western PA and the surrounding areas. It is our mission to provide the best programs, staff, and equipment, to fully meet the various sports and fitness needs of our members, while generating a profit for the owners and investors. Besides providing an excellent value to our customers, Sports City-Pittsburgh is determined to create an unmatched sporting atmosphere that will add to the enjoyment of every member and employee of the facility. Dedicated to the community, Sports City-Pittsburgh strives to support and sponsor community events, as well as host them whenever possible. Our hope is that through the use of our facility, members' enjoyment and appreciation for sports, fitness, and for life will be enhanced. 4.0 Keys to SuccessThe Keys to Success for Sports City-Pittsburgh are as follows: Marketing: We must make Sports City-Pittsburgh a common name in Western PA and throughout the country and creatively market our services to each of our market segments. Atmosphere of facility: By creating an unmatched "cool" atmosphere in Sports City-Pittsburgh through the use of first class equipment, floors, colors, and big screen TVs, people will want to frequent our facility often and our ability to retain members will be enhanced. Knowledgeable/qualified staff and management: By providing the users of the facility with knowledgeable and qualified staff who show genuine concern for the patrons, people will feel comfortable and confident that Sports City-Pittsburgh can meet all of their sport and fitness needs. Complete hands-on management of all leagues and tournaments: This will ensure fair, competitive, and well officiated programs and keep teams coming back and create a reputation as the place to play for ALL levels of hoopers. 5.0 Company SummarySports City-Pittsburgh is a new multisport complex that will provide both members and casual users an opportunity to participate in a variety of sports and leisure programs and activities. 6.0 Company OwnershipSports City-Pittsburgh will be a Limited Liability Corporation (LLC) that will be privately owned. Scott Butler and Rocky Cersosimo will own 25% of the company each, while 10 other limited partners will each own 5%. 7.0 Start-up SummaryOur start-up requirements come to $2,586,711. Included in these costs is building (Greentree Racquet Club), all development costs and equipment. Start-up ExpensesTotal Start-up Expense $2,586,711 8.0 Income / ExpensesIncomeTOTAL INCOME $794,147 ExpensesTOTAL EXPENSES $600,160 Net profit $193,987Interest and Depreciation $102,000 Net Profit excluding interest and depreciation $295,987 9.0 ServicesSports City-Pittsburgh will be a multisport complex that provides its users with various services. A first class fitness and lifestyle center, three full-size basketball courts that can also accommodate many other sports, four tennis courts, two racquetball courts, a food and beverage/lounge area, a massage therapy clinic and other amenities such as offices, a conference room, a childcare center, and full-service locker rooms will all be available in the facility. Along with these amenities, Sports City-Pittsburgh will provide its users with qualified and knowledgeable people to make sure all of their sport and fitness needs are met. 10.0 CourtsThree full-size basketball courts will highlight the east end of Sports City-Pittsburgh. These floors will be able to accommodate volleyball programming. These hardwood courts will be manufactured and installed by an industry leader, The Western NY Floor Company, and will be the premier floors in all of Western PA. With the added attraction of world class portable basketball systems, Sports City-Pittsburgh will quickly become known as the place to be for leagues, camps, or pick-up games. With their education and vast experience in this area, the scheduling of events and activities on these floors will be done by Scott Butler and Rocky Cersosimo, co-founders of Sports City-Pittsburgh. The development of sports leagues, camps, and clinics, along with other various day-to-day operations of the facility will also be their responsibility. Myron Brown, a former NBA player with the Minnesota Timberwolves, will be hired as an instructor for basketball. Sports City-Pittsburgh will be asociated with high profile coaches and players in all basketball programming. Four full-size tennis courts and two racquetball courts will continue to highlight the west end of the facility. Programming will include tournaments, lessons, leagues, individual instruction, special events, and rentals. Along with these two sports, an additional multipurpose floor will be able to accommodate badmitton, indoor soccer, indoor hockey, touch football, gymnastics, dance, aerobics and more. 11.0 Basketball Programming
11.1 Basketball Programming BreakdownMen's Open Adult Basketball Leagues (3 sessions-11 games) Income 12 Teams @ $480 / team $5,760 Total Income $5,760 Expenses Referees ($50 a game x 75 games) $3,750 Jerseys 972 Staffing (Sports City staff on duty) 0 Total Expenses $4,722 Total Profit $1,038 x 3 sessions = $3,114 Women's Open Adult Basketball Leagues (3 sessions-11 games) Income 12 Teams @ $480 / team $5,760 Total Income $5,760 Expenses Referees ($50 a game x 75 games) $3,750 Jerseys 972 Staffing (Sports City staff on duty) 0 Total Expenses $4,722 Total Profit $1,038 x 3 sessions=$3,114 Men's Over 40 Adult Basketball Leagues (3 sessions-11 games) Income 12 Teams @ $480 / team $5,760 Total Income $5,760 Expenses Referees ($50 a game x 75 games) $3,750 Jerseys 972 Staffing (Sports City staff on duty) 0 Total Expenses $4,722 Total Profit $1,038 x 3 sessions=$3,114 Corporate Basketball Leagues (3 sessions-11 games) Income 12 Teams @ $480 / team $5,760 Total Income $5,760 Expenses Referees ($50 a game x 75 games) $3,750 Jerseys 972 Staffing (Sports City staff on duty) 0 Total Expenses $4,722 Total Profit $1,038 x 3 sessions=$3,114 Boys' High School Summer League (7 games + playoffs) Income 16 Teams @ $355 / team $5,680 Total Income $5,600 Expenses Referees ($50 a game x 73 games) $3,650 Jerseys 1,008 Staffing (Sports City staff on duty) 0 Total Expenses $4,658 Total Profit $1,022 AAU Youth Basketball Tournament Income 32 teams @ $200 $6,400 Admission 1,625 50/50 1,300 Total Income $9,325 Expenses Referees ($50 x 65 games) $3,250 t-shirts (1/2 by sponsor) 1,296 staffing on duty 0 Total Expenses $4,546 Total Profit $4,779 Gary Brown Annual Alumni Classic (12 Teams) Income 12 Teams @ $250 team $3,000 Admission 1,150 Total Income $4,150 Expenses Referees (23 games x $50) $1,150 Staffing on duty 0 Total Expenses $1,150 Total Profit $3,000 Total ProfitTotal Basketball Programming Profit $129,847 12.0 Tennis ProgrammingOur four indoor tennis courts were designed with special attention given to those little (and sometimes not so little) things. Featuring Bolltex, the all-synthetic textile surface from Sweden, the prime feature is playing comfort. It is easy on the legs, noise is dampened, no reflections, true ball bounce with the cushion and resiliency of Bolltex contributing to better acoustics. Lighting specialists have engineered a no glare, no shadow, indirect lighting scheme for the ultimate in indoor visibility. We will also have two regulation sized handball/racquetball courts constructed of a 19 ply hardwood system with a specially designed lighting system. 12.1 Tennis Programming Breakdown13.0 Weights and FitnessSports City-Pittsburgh will house a large fitness and lifestyle center that will match or exceed any other in the city. This fitness and lifestyle center will include top-of-the-line equipment in free weights, machine weights, and aerobic machines. This aspect of the facility will be run by a certified strength and conditioning specialist (CSCS) who will hire and train his/her staff to meet the demands of the members. This person will report to and work directly with the general partners of Sports City-Pittsburgh and his/her duties will include, but will not be limited to, general supervision, personalized training for members, program development for camps and clinics, and aiding in the marketing and promotional aspects of the facility. Advantage Sports & Fitness, a leader in their field, will design the fitness center layout as well as provide all of our equipment. This company was responsible for the creation of the fitness facilities at the Oxford Club in Wexford, PA and is currently working with the University of Pittsburgh and Pittsburgh Penguins. 13.1 Fitness Programming Breakdown14.0 OtherOther features and services Sports City-Pittsburgh will have include: *Full-service locker rooms for both men and women. Personal lockers are available to the player who wishes to store equipment at the club. Large shower areas, benches, sinks, and bathroom facilities will all be included as well. *Steam rooms and saunas in both the men's and women's locker rooms. *A childcare area that will allow users to access the facility at their convenience. The childcare will be on the bottom level of the complex and have a large play area that will be continuously monitored by our childcare staff. The staff will be responsible for the care and well-being of the children they are watching, along with providing a fun and interesting environment for the children. This service will be offered to the facility users for a very minimal fee. *An administrative area housing various offices and a conference room will be located on the main floor of the facility. *A pro shop will be strategically placed in Sports City-Pittsburgh to attract impulsive buyers. Users will pass through the pro shop upon entering and exiting the facility. The pro shop will sell sports shoes, and apparel and eventually our own line of products that will be available exclusively at Sports City-Pittsburgh. 15.0 ConcessionsOn the upper level surrounding the courts there will be a food and beverage area where users of the facility can replenish their bodies. This area has been placed on the upper level so the users may have a bird's-eye view of the happenings on the courts while enjoying their favorite non-alcoholic beverage and/or snack. Included in this area will be various big screen TVs that will show either sporting events, sports news, or appropriate programs that users wish to watch. This aspect of the facility will be crucial in providing the desired atmosphere Sports City-Pittsburgh hopes to create. A qualified, experienced person will be hired to run this aspect of the facility. He/she will have the responsibility to meet necessary standards and to report to, and work directly with the general partners of Sports City-Pittsburgh to make sure the needs of the users in this area are met. If additional staff are required, this person will hire and train those people in accordance with Sports City-Pittsburgh policies. 16.0 Massage TherapyAn area for a massage therapy clinic will be located in the facility. This service will be available to both the general public and users of the facility at a cost reflective of the industry standard. This amenity will be an added bonus to the users of Sports City-Pittsburgh as it will be conveniently located right inside the complex. At this time, Sports City-Pittsburgh is deciding on whether to hire their own massage therapists or to lease out the space to an already established massage therapy practice. 17.0 Market SegmentationYouthSecond grade through high school: top priority for a large variety of offerings. camps, clinics, parties, tournaments, personal development and general membership. AdultGYM RATS- hoop lovers seeking leagues, pick-up games, practice times or a place to just hang out and watch some basketball. The better the atmosphere and the bigger the crowd, the more gym rats are attracted. FamiliesAnother important segment: Sports City-Pittsburgh provides something for everybody. This will attract families to our facility to become members as well as families who want a few hours of fun and recreation. We will also target this group for summer camps and other fun activities. Weekend WarriorsPeople who can't be locked into long-term commitments or want the freedom to come and go when the opportunity presents itself. These people will be targeted with all walk-in programs, special promotions and pereodic activities. Fitness / Health Club TypesA broad segment ranging from hardcore bodybuilders to toners. We offer top-of-the-line equipment, programs, and convenience to attract this group. They are notoriously willing to lock into long-term commitments with the right facility. Business Travelers / TouristsWith our location, this segment will be very attracted to our facility. Simple daily walk-in fees and Ïsomething for everybodyÓ theme will provide a great place to workout for these people. $336,500 18.0 Target Market Segment StrategyDue to the size and convenient location of our facility, many people will be attracted to Sports City-Pittsburgh to see what we have to offer. However, we will not be content to just wait for customers to come to us. Instead, we will focus our marketing strategies on those market segments who match our offerings. The great thing about marketing Sports City-Pittsburgh, is that each market segment relates, in certain ways, to all the others. Our main objective with our early marketing strategy will be to get people into our facility. Once people see what we have to offer, and feel the atmosphere that will be created, they will want to return and participate in the many activities and programs that will be available to them. Some of the ways Sports City-Pittsburgh will get people into the facility include: *Offering tours to junior and senior high schools during the building and early completion stages of the facility. *Having a large promotional event to open the facility that will be free to everyone. *Hosting and/or supporting various community events that will bring in many people who otherwise would not come. *Mailing out free day passes to all of the surrounding area. *Following the opening of Sports City-Pittsburgh, print and radio media will be used to promote both the facility and the programs that are being offered to attract new people from all over Western PA *Many resources are also available for marketing and promotional ideas that have been effective for other facilities. 19.0 Competition and Buying PatternsThe competition for Sports City-Pittsburgh include Bally Total Fitness, JCC's, YMCA's and local recreation centers and gyms. At all of these clubs, various types of memberships are available. Some require long-term commitments while other have a minimum commitment of at least one full month. Potential fitness club members will usually compare clubs and find the one that fits their specific needs, or has the amenities that he/she wants. Value is usually very important to these potential members as most people want to get the best value for their dollar. What will set Sports City-Pittsburgh apart from our competitors: Basketball focus.Our facility will truly be a one-of-a-kind in Western PA due to the fact that we will offer basketball programming second to none. We will have high profile players and coaches from the NBA, WNBA, and NCAA come through our doors year-round becoming involved with our programs. 2. Top-of-the-line fitness equipment and athletic floors. 20.0 Strategy and Implementation SummarySports City-Pittsburgh has a very large potential market. Because of the small number of recreation and fitness facilities in Greentree, PA, we feel we will become the number one sports and fitness complex quickly. This will be accomplished by actively and continuously promoting Sports City-Pittsburgh through radio and media advertisements as well as through hosting and supporting various community events. 21.0 Competitive EdgeSports City-Pittsburgh's competitive edge is two fold. First, our facility will be the only multisport complex that offers three full-size basketball courts that are available for the members and the community to use and/or rent. On top of this, the scope and variation of the programs that will be run from this facility are unmatched by any other club in the area. The second part of our competitive edge is the location, size, and appearance of the facility that will attract many people into the complex. By maintaining our focus in our strategy, marketing, program development, and fulfillment Sports City-Pittsburgh will be known as the top sports and fitness club in Western PA. We should be aware, however, that our competitive edge may be diluted if we become complacent in our program development and implementation. It will be important for Sports City-Pittsburgh to keep up with the current trends in both sport and fitness programs. 22.0 Sales StrategySales in the sport and fitness club business are based on the services and amenities provided by the facility. The "something for everyone" slogan fits perfectly with Sports City-Pittsburgh. All of the users of our facility must feel like they are getting the best possible value for their money. If there is a better value, for equal services, Sports City-Pittsburgh will match or beat that value for our customers. Each person desiring a membership at Sports City-Pittsburgh will be able to sit down with a representative and be notified of all of their membership options. During this brief discussion, the person will be also be informed of all of the services, programs, and amenities Sports City-Pittsburgh has to offer. It will be important to establish a relationship of trust with our members as membership retainment is an important aspect in our business. 23.0 Management SummaryThe initial management team for Sports City-Pittsburgh depends mainly on the general partners. Scott Butler and Rocky Cersosimo will stay within their expertise in running the day-to-day operations of the facility such as scheduling, marketing, and promotions, along with running and developing various leagues and programs for the community. Back-up for the general partners will include staff members who will compensate for the founders lack of experience in each area. For example, qualified personnel will be hired for the food and beverage, massage therapy, and fitness areas. General help staff will be hired on a need basis as the users of the facility increase. There will also be a janitor hired for basic cleanliness and maintenance of the complex. 24.0 Membership RatesMemberships are non-refundable and non-transferable. *$25 initiation fee 1 week $17 1 month $34 3 month $99 Guest fee $6.00 per guest per visit -Members are permitted to bring a guest three times a season. FAMILY $250 for 3 months SENIOR CITIZEN 10% discount 25.0 Court rental rates BasketballTennisHandball/Racquetball26.0 Hours of OperationFitness CenterRentals and courts27.0 StaffingScott Butler / Rocky Cersosimo As co-founders, Scott and Rocky will provide leadership to the team and will oversee all operations. Scott ButlerScott brings to the table over 12 years experience in college athletics as a basketball player and coach. A former NCAA Division I player at Robert Morris College, Scott is the former Sports & Recreation Director at the Jewish Community Center of Greater Pittsburgh where he was responsible for all athletic programming including special events. Scott also has over eight years experience as a college basketball coach and holds a Bachelor of Professional Studies with a concentration in Sport Management. He also has been very active as a volunteer for the American Cancer Society's Coaches vs. Cancer Program. Rocky CersosimoMyron Brown-personal basketball instructorMyron is a former All-American player at local Slippery Rock University where he went on to be drafted in the second round of the NBA Draft by the Minnesota Timberwolves. He will serve as Sport City's personal basketball instructor and will be paid on commission. LegalMichalek, Schnippert & Associates has been selected as legal advisors and consultants based on their extensive knowledge in real estate transactions, business planning and their familiarity of the local municipalities involved. Front DeskThree full-time employees will be responsible for customer relations, answering phones, scheduling and other duties assigned by Scott and Rocky. BookeeperOne part-time employee MaintenanceOne part-time employee that will be responsible for the general maintenace of the facility. Tennis ProfessionalsThree part-time employees that will be responsible for all tennis programming including lessons, organizing leagues and tournaments and other duties assigned by Scott and Rocky. Fitness DirectorOne full-time employee will be responsible for all fitness programming including supervision of personal trainers and fitness instructors. Massage TherapyOne part-time employee. Sessions are by appointment only. Personal TrainersFive employees paid strictly by commission. Nursery24-hour notice for part-time staff Proposed Basketball Advisory CommitteeOrganizations for positive relationships30.0 SPONSORSHIP BENEFITS31.0 SPONSORSHIPTARGETS AND PRIORITIES TARGET SPONSORSHIP GROUPS HOUSING SPORTING GOODS PRINTING SIGNAGE CHANBER OF COMMERCE MEMBERS LAW FIRMS, MEDICAL AND DENTAL PRACTICES, ACCOUNTING FIRMS Statistics found by Melissa Data-2000 Demographics*32.0 Pittsburgh Metro Area DemographicsYear 2000 Value *32.1 City of Pittsburgh DemographicsYear 2000 Value *32.2 Population / Avg. Gross Income by City, Borough or TownshipYear 2000 Population Average Gross Income *32.3 Demographics by County-2000Population Avg.Household Income |