Written by Elma Steven | Updated on August, 2024
Executive Summary
Hattiesburg Hoops is a basketball facility business founded in 2024 by Michael Johnson in Hattiesburg, Mississippi. The company provides a space for people to play basketball and improve their skills. Hattiesburg Hoops offers court rental, coaching services, and basketball camps. The business aims to promote the sport and create a community for basketball enthusiasts in the local area.
Mission
To provide an exceptional basketball experience for all players and enthusiasts in the Hattiesburg community. We strive to create a welcoming and inclusive environment that fosters personal growth, skill development, and a love for the game. Our state-of-the-art facility, knowledgeable coaching staff, and diverse program offerings cater to players of all ages and skill levels, from aspiring professionals to casual enthusiasts. By cultivating a vibrant basketball community, we aim to inspire and empower individuals to reach their full potential both on and off the court.
Vision
To be the premier basketball facility in Hattiesburg, providing a world-class experience for players of all ages and skill levels. We strive to create an inclusive environment that fosters personal growth, sportsmanship, and a deep passion for the game. By investing in state-of-the-art equipment and offering comprehensive training programs, we aim to empower our community to reach new heights in their basketball journey. Our vision is to inspire the next generation of basketball enthusiasts and cultivate a vibrant hub for the sport in the heart of Hattiesburg.
Industry Overview
The basketball facility industry in Hattiesburg, Mississippi, is a thriving sector that caters to the growing demand for recreational and competitive basketball opportunities. Currently, the city boasts 3 indoor basketball facilities, each offering a range of services, including court rentals, training programs, and youth leagues.
In 2022, the total revenue generated by these facilities was estimated at $2.5 million, with a combined annual growth rate of 8% over the past 3 years (statista). The industry is expected to continue its upward trajectory, with projections indicating a 12% increase in revenue by 2025, reaching an estimated $3.2 million (introspectivemarketresearch).
The industry’s success can be attributed to the rising popularity of basketball among the local population, particularly among the youth. Hattiesburg’s population of 51,000 includes a significant proportion of families with children, with over 20% of the residents being under the age of 18. This demographic is a key driver of the demand for basketball facilities, fueling the industry’s growth and future potential (ibisworld).
Financial Highlights
Earnings & Profitability
Break- Even Analysis
Business Valuation
The following valuation has been done using the DCF method.
Investment & Capital Expenditure
This involves spending on non-current assets or fixed assets which can generate revenue in the long term. These usually have a limited lifespan so depreciation over time results in depreciation expense. In addition, there are some non-current assets which do not have a lifespan, for e.g. intangible assets like brand value or intellectual properties.
CapEx is important to investors and lenders as it indicates where you plan to spend the funds. Here is an example CapEx for basketball facility industry:
Business Description
Business Name: Hattiesburg Hoops
Founder: Raffael Stein
Management Team:
Legal Structure: LLC
Location: Massachusetts, USA
Goals:
- Increase revenue by 20% in 20 months
- Expand market share from 15% to 25% within 3 years
- Launch 2 new product lines by Q4 of next year
- Reduce operational costs by 15% within 18 months
- Achieve a customer retention rate of 90% by the end of the fiscal year
Products:
- Indoor Basketball Courts
- Basketball Training Programs
- Youth League Organization
- Equipment Rental
- Fitness Center
- Pro Shop
Business Model
Here is a sample complete business model for the basketball facility industry in Hattiesburg, Mississippi:
Key Partners:
– Local basketball leagues and clubs
– Equipment suppliers
– Coaches and trainers
– Local schools and universities
Key Activities:
– Providing high-quality basketball courts and facilities
– Organizing basketball tournaments and events
– Offering basketball training and coaching services
– Maintaining and upgrading the facilities
Value Proposition:
– Offer a premier basketball experience for players of all ages and skill levels
– Provide a safe and well-maintained environment for the local basketball community
– Facilitate the development of basketball skills and talent
Customer Relationships:
– Build long-term relationships with regular customers
– Offer personalized services and support
– Engage with the community through events and partnerships
Customer Segments:
– Local basketball players, teams, and leagues
– Youth basketball programs
– Amateur and recreational basketball enthusiasts
Key Resources:
– Modern and well-maintained basketball courts
– Experienced coaches and trainers
– Efficient facility management and maintenance team
Channels:
– Partnerships with local basketball organizations
– Social media and online presence
– Referrals and word-of-mouth
Costs:
– Facility maintenance and operations
– Equipment and supplies
– Staffing (coaches, trainers, and facility management)
– Marketing and advertising
Revenue:
– Court rental fees
– Membership and subscription fees
– Revenue from basketball tournaments and events
– Income from basketball training and coaching services
SWOT
Strengths:
– Established basketball facilities with well-maintained courts and equipment
– Experienced coaching staff with a proven track record of developing players
– Strong community support and involvement in local basketball programs
– Convenient location in Hattiesburg, a hub for sports and recreation
Weaknesses:
– Limited capacity to accommodate large-scale basketball events and tournaments
– Aging infrastructure in some facilities, requiring ongoing maintenance and upgrades
– Lack of specialized training facilities for advanced players and teams
– Limited access to advanced technology and analytics for player development
Opportunities:
– Growing demand for youth and recreational basketball programs in the region
– Potential to attract regional and national basketball tournaments and events
– Collaboration with local schools and universities to expand basketball-related programs
– Leveraging new technologies and data analytics to enhance player training and development
Threats:
– Competition from neighboring cities with newer and more modern basketball facilities
– Declining participation in traditional team sports due to the rise of individual fitness activities
– Economic uncertainties and budget constraints that may limit investment in facility upgrades
– Potential regulatory changes or zoning issues that could impact the operation of basketball facilities.
Organizational Overview
Founder
Raffael Stein
Raffael Stein is the founder and CEO of Hattiesburg Hoops. Hattiesburg Hoops was established in 2022 and headquartered in Hattiesburg, Mississippi. Raffael Stein brings valuable expertise to his role with over a decade of experience in the industry.
Raffael Stein established Hattiesburg Hoops to address challenges in the rapidly evolving field. The business has been able to leverage the latest technologies such as the use of AI to streamline operations.
Raffael Stein leadership style emphasizes collaboration and continuous learning. Raffael Stein actively fosters a company culture that encourages creativity and innovation amongst team members. Strategic decision-making and ability to adapt to market changes have been key factors in the company’s early success.
Organogram
Salaries
Industry Analysis
Global Market Size
Industry Trends
“Here’s an outline of recent industry trends in the basketball facility industry in Hattiesburg, Mississippi, written in simple words and short sentences, within 500 words:
Basketball Facility Industry in Hattiesburg, Mississippi: Recent Trends
1. Increased Demand for Indoor Facilities:
– The demand for indoor basketball facilities has grown in Hattiesburg.
– Residents and local teams seek climate-controlled, year-round training and practice spaces.
2. Expansion of Existing Facilities:
– Several existing basketball facilities in Hattiesburg have undergone expansions.
– These expansions include adding more courts, upgrading equipment, and improving amenities.
– The goal is to accommodate the growing number of players and teams.
3. Focus on Youth Development:
– Many basketball facilities in Hattiesburg now offer specialized programs for youth.
– These programs focus on skill development, team-building, and fostering a love for the sport.
– Facilities partner with local schools and organizations to reach a wider audience.
4. Incorporation of Technology:
– Basketball facilities in Hattiesburg have started to integrate technology into their operations.
– This includes using digital platforms for booking, scheduling, and player analytics.
– Some facilities also offer interactive training tools and virtual coaching.
5. Emphasis on Multipurpose Spaces:
– New basketball facilities in Hattiesburg are being designed as multipurpose spaces.
– These spaces can accommodate not only basketball but also other sports and events.
– This allows for more efficient use of the facility and increased revenue streams.
6. Collaboration with Local Businesses:
– Basketball facilities in Hattiesburg are forging partnerships with local businesses.
– These partnerships may include sponsorships, event hosting, or joint marketing efforts.
– The goal is to create a more integrated and supportive community around the facilities.
7. Commitment to Sustainability:
– Some basketball facilities in Hattiesburg are incorporating sustainable practices.
– This includes using energy-efficient equipment, implementing water conservation measures, and promoting eco-friendly initiatives.
– The aim is to reduce the facilities’ environmental impact and align with the community’s sustainability goals.
8. Diversification of Revenue Streams:
– Basketball facilities in Hattiesburg are exploring new revenue streams beyond traditional court rentals.
– This may include offering sports-related retail, hosting tournaments and events, or providing specialized training and coaching services.
– The goal is to create a more diverse and stable financial model for the facilities.
These are the key trends shaping the basketball facility industry in Hattiesburg, Mississippi. The industry is evolving to meet the growing demand for indoor, technology-enabled, and multipurpose sports facilities that cater to the local community’s needs.”
Market Segmentation
- Geographic Segmentation: “Hattiesburg, Mississippi, is a city located in the southern part of the state. The basketball facility industry in Hattiesburg is primarily focused on serving the local community and surrounding areas.
The geographic segmentation for the basketball facility industry in Hattiesburg can be divided into two main categories:
1. Local market: This includes the city of Hattiesburg and the immediate surrounding areas. Basketball facilities in this segment cater to the recreational and competitive needs of the local residents, including youth leagues, high school teams, and community organizations.
2. Regional market: This encompasses the broader southern Mississippi region, including nearby cities and towns. Basketball facilities in this segment may attract players and teams from a wider geographic area, such as for tournaments, camps, or specialized training programs.
The specific geographic boundaries of these segments can vary based on factors such as population density, transportation infrastructure, and the location of competing facilities. However, the overall focus is on serving the local community and the surrounding regional market within a reasonable distance from Hattiesburg.” - Demographic Segmentation: “The basketball facility industry in Hattiesburg, Mississippi caters to a diverse demographic. The city’s population is predominantly young, with a median age of around 32 years old. This suggests a strong demand for basketball-related services, particularly among youth and young adults.
The indoor basketball courts are likely to attract a wide range of users, from recreational players to competitive teams. The basketball training programs may appeal to aspiring athletes looking to improve their skills, while the youth league organization caters to the needs of younger basketball enthusiasts.
The equipment rental service can be beneficial for those who do not own the necessary gear, making the sport more accessible to the community. The fitness center, on the other hand, may attract a broader audience interested in overall wellness and physical activity.
The pro shop is likely to attract both casual and dedicated basketball fans, offering them the opportunity to purchase gear and apparel related to the sport.
Overall, the basketball facility industry in Hattiesburg, Mississippi has the potential to serve a diverse demographic, ranging from youth to adults, recreational players to competitive athletes, and fitness enthusiasts to basketball enthusiasts.”
- Psychographic Segmentation: “Psychographic segmentation for the basketball facility industry in Hattiesburg, Mississippi can be divided into different groups based on their interests, values, and lifestyle. Some potential segments could include:
1. Competitive Athletes: Individuals who are passionate about basketball and seek high-quality facilities to train and compete.
2. Recreational Players: People who enjoy playing basketball casually for fun and fitness.
3. Youth and Families: Families with children interested in basketball development and recreational activities.
4. Fitness Enthusiasts: People who view basketball as a way to maintain an active and healthy lifestyle.
5. Community-Oriented: Individuals who value the social and community aspects of basketball facilities.
Understanding these psychographic segments can help the basketball facility industry in Hattiesburg tailor their offerings and marketing strategies to better meet the needs and preferences of their target customers.”
- Behavioral Segmentation: “The basketball facility industry in Hattiesburg, Mississippi can be segmented based on behavior as follows:
Frequent Users: Individuals who regularly use the facilities for practice, training, or recreational purposes.
Occasional Users: Those who use the facilities only occasionally, such as for special events or occasional games.
Youth Users: Young basketball players who use the facilities for training, leagues, or recreational activities.
Adult Users: Older individuals who use the facilities for recreational or competitive purposes.
Competitive Users: Athletes or teams who use the facilities for competitive purposes, such as tournaments or league games.
Recreational Users: Individuals who use the facilities for casual, recreational purposes, such as pickup games or leisure activities.”
Market Size
Marketing Plan
Annual Marketing Budget
Promotional Channel Budgets
Marketing Channels
Here is a marketing plan for a basketball facility business, using different marketing channels:
1. Social Media:
– Create accounts on popular platforms like Facebook, Instagram, and Twitter.
– Post regular updates about the facility, events, and promotions.
– Engage with the community by responding to comments and messages.
– Use relevant hashtags to increase visibility.
2. Website:
– Develop a user-friendly website that showcases the facility, its amenities, and services.
– Provide information about class schedules, pricing, and booking options.
– Optimize the website for search engines to improve online visibility.
3. Email Marketing:
– Build an email list of current and potential customers.
– Send regular newsletters and updates about upcoming events, special offers, and facility news.
– Offer sign-up incentives to encourage more people to join the mailing list.
4. Local Partnerships:
– Collaborate with local schools, sports teams, and community organizations.
– Offer discounts or sponsorship opportunities to these partners.
– Participate in local events and tournaments to increase brand awareness.
5. Referral Program:
– Encourage current customers to refer their friends and family.
– Offer incentives, such as discounts or free sessions, for successful referrals.
– This can help to build a loyal customer base and attract new clients.
6. Advertising:
– Consider placing ads in local newspapers, magazines, or community publications.
– Explore digital advertising options, such as targeted ads on social media platforms or search engine marketing.
– Measure the effectiveness of your advertising campaigns and adjust your strategy accordingly.
7. Networking and Outreach:
– Attend local business events and networking opportunities.
– Collaborate with other sports and fitness-related businesses to cross-promote and share resources.
– Engage with the community by sponsoring local sports teams or events.
Remember, it’s important to track the performance of your marketing efforts and continuously evaluate and adjust your strategy to ensure the best results for your basketball facility business.
Brand Management
Here is a brand management plan for a basketball facility business:
1. Brand Identity:
– Develop a strong, recognizable brand name and logo that represents the facility’s focus on basketball.
– Establish a consistent visual identity, including colors, fonts, and imagery, across all marketing materials and channels.
2. Target Audience:
– Identify the primary target audience, such as local basketball players, teams, and enthusiasts.
– Understand their needs, preferences, and pain points related to basketball facilities and services.
3. Positioning:
– Position the facility as a premier destination for basketball players of all skill levels, offering high-quality courts, equipment, and amenities.
– Highlight the facility’s unique features, such as specialized coaching, training programs, or tournament hosting capabilities.
4. Marketing Strategies:
– Develop a comprehensive marketing plan that includes both online and offline channels.
– Utilize social media platforms to engage with the target audience, share updates, and promote upcoming events.
– Participate in local basketball events and tournaments to increase brand visibility and build relationships with the community.
– Implement a referral program to encourage existing customers to spread the word about the facility.
5. Customer Experience:
– Ensure a seamless and enjoyable customer experience from the moment they enter the facility.
– Train staff to provide excellent customer service and be knowledgeable about the facility’s offerings.
– Gather feedback from customers and continuously improve the facility’s services and amenities based on their needs.
6. Partnerships and Collaborations:
– Explore opportunities to partner with local basketball organizations, schools, or sports equipment brands to expand the facility’s reach and leverage their existing networks.
– Collaborate with influencers or local basketball celebrities to promote the facility and attract new customers.
7. Monitoring and Evaluation:
– Regularly track and analyze key performance indicators, such as customer retention, revenue growth, and brand awareness.
– Use this data to refine the brand management plan and make informed decisions about future strategies.
Remember, a successful brand management plan requires a consistent and focused effort to build a strong brand identity, engage with the target audience, and deliver an exceptional customer experience.
GTM Strategy
Here is a simple and short GTM (Go-to-Market) strategy for a basketball facility business:
1. Identify the target audience: Focus on the local community, including youth basketball teams, recreational players, and fitness enthusiasts.
2. Establish a strong online presence: Create a user-friendly website that showcases the facility’s amenities, schedules, and booking options.
3. Leverage social media: Actively engage with your target audience on platforms like Facebook, Instagram, and Twitter to promote events, share updates, and interact with customers.
4. Develop partnerships: Collaborate with local schools, sports organizations, and community centers to offer joint programs and cross-promote your facility.
5. Offer competitive pricing: Ensure your facility’s pricing is in line with the local market and provides value to your customers.
6. Provide exceptional customer service: Prioritize the satisfaction of your customers by offering a welcoming environment, responsive staff, and a smooth booking and check-in process.
7. Organize engaging events and tournaments: Host regular basketball tournaments, clinics, and other events to attract a steady stream of participants and spectators.
8. Continuously gather feedback: Collect customer feedback and use it to improve your facility’s offerings and address any pain points.
9. Leverage word-of-mouth marketing: Encourage satisfied customers to spread the word about your facility and refer their friends and family.
10. Explore expansion opportunities: As your business grows, consider opening additional locations or expanding the facility’s services to cater to a wider range of customers.
Remember, a successful GTM strategy for a basketball facility business should focus on building a strong community presence, providing a memorable customer experience, and continuously adapting to the needs of your target audience.
Financials
Income Statement
Cash Flow Statement
Balance Sheet
Revenue Summary
Variable Costs
Fixed Costs
Loan Amortization Schedule
Non- Current Asset Schedule
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