Executive Summary
Overview: UW Health Sports Factory was one of the Midwest’s largest sports facilities. The Rockford Park District manages it, and The Rockford Area Convention & Visitors Bureau aids the park district with tournament promotion and booking. The old Ingersoll plant, situated in the middle of a key industrial cluster in Rockford, is now known as the UW Health Sports Factory. The last factory’s exterior may still be seen today.
Mission: The UW Health Sports Factory’s principal objective is to play an active part in the health, recreational, fitness, and educational lives of the people of Rockford and the surrounding region. Safe, high-quality child, adult, and family programming and outreach initiatives to meet the needs of underprivileged local communities are among the specific goals.
Vision: Through education and leisure, the UW Health Sports Factory’s goal is to create extraordinary opportunities for the people we serve to enjoy a lifetime of health and pleasure.
Industry Overview: In 2022, the Indoor Sports Facilities Management industry will have a market size of $1.4 billion dollars, as measured by revenue. In 2022, the Indoor Sports Facilities Management industry’s market size is predicted to grow by 4%. Between 2017 to 2022, the market size of the Indoor Sports Facilities Management industry in the United States decreased by 1.3 percent every year on average. The Indoor Sports Facilities Management sector in the United States shrank faster than the broader economy. In the United States, the market size of the Indoor Sports Facilities Management business shrank faster than that of the Specialist Engineering, Infrastructure, and Contractors sector as a whole.
Financial Overview:
Business Plan Template & Financial Model
Write your own business plan in a day! This also includes a premium WordPress theme worth $300! This will help you build your own website.
Financial Highlights:
| Liquidity | 2020A | 2021A | 2022F | 2023F | 2024F |
| Current ratio | 6 | 12 | 23 | 32 | 42 |
| Quick ratio | 6 | 11 | 22 | 31 | 40 |
| DSO | 8 | 8 | 8 | 8 | 8 |
| Solvency | |||||
| Interest coverage ratio | 8.2 | 11.1 | 14.2 | ||
| Debt to asset ratio | 0.01 | 0.01 | 0.2 | 0.18 | 0.16 |
| Profitability | |||||
| Gross profit margin | 51% | 51% | 53% | 53% | 53% |
| EBITDA margin | 12% | 14% | 21% | 22% | 22% |
| Return on asset | 5% | 6% | 13% | 14% | 14% |
| Return on equity | 5% | 6% | 16% | 17% | 17% |
FUND USAGE
Get a Free Template on Email
Get a basic level of guidance for writing your own business plan.
Industry Analysis
Total recreation spending and involvement in sports are the two most important positive elements impacting this business. Total recreation expenditure refers to the total amount of money spent on recreation services by US consumers each year. Consumer expenditure on leisure activities is highly correlated with disposable income per capita. Furthermore, overall recreation spending is linked to leisure time. Consumers will be increasingly likely to spend recreational money on services offered by industry operators as their spare time increases. Total recreation spending is predicted to increase in 2022, providing an opportunity for sector operators.
From 2017 to 2023, the global fitness and recreational sports centers market is predicted to grow at a CAGR of 4.4 percent, from $83,680 million in 2016 to $113,116 million in 2023. Establishments or facilities with equipment for exercising and other active physical fitness conditioning activities such as skating, swimming, or racquet sports make up fitness and leisure sports centers.
Factors such as a rise in the middle-class population, a change in consumer desire for improved health, and an increase in the prevalence of obesity are driving the expansion of the worldwide fitness and recreational sports center market. Furthermore, government support for health and fitness, as well as the availability of a wide range of equipment and tailored fitness training programs at fitness and leisure sports facilities, have aided market expansion. However, high startup costs for fitness facilities, high membership prices, and a sedentary lifestyle are expected to slow industry development. The driving factors are projected to have a greater influence than the constraints. Conversely, the worldwide market is predicted to benefit from a growth in the young population in developing nations, as well as a spike that incorporates innovations, acquisitions, and expansions in the sector.
While working on the industry analysis section of the Indoor Sports Complex business plan make sure that you add significant number of stats to support your claims and use proper referencing so that your lender can validate the data.
The worldwide fitness and recreational sports center market is examined by type, age group, and region in this study. Gyms, yoga, aerobic dancing, handball, racquet, skating, swimming, and other activities are all part of the worldwide market. It is divided into three age groups: 35 and under, 35-54, and 55 and over. The income produced by fitness and recreational sports facilities in North America, Europe, Asia-Pacific, and LAMEA is included in the study.
Sports or leisure facilities and health and wellness firms have a natural alignment. Working with medical partners helps sports facility developers in a variety of ways. Receiving development money, income from long-term leases and name rights, and in-kind advantages, such as the availability of trainers and wellness programs for participating athletes, are all examples. Medical partners benefit from collaborating with sports facilities in various ways, including having a partner who can help them grow strategically (this is especially true for midsize brands looking to expand their regional presence), revenue from venue traffic, and overall community visibility. The final advantage is especially significant because certain medical partners have functioned as hubs for essential services, pop-up hospitals, and distribution sites for first responders throughout the pandemic.
Increased sports participation, such as indoor soccer and other indoor versions of outdoor games like flag football, lacrosse, field hockey, baseball, and softball, has benefitted the Indoor Sports Facilities Management sector during the last decade. In addition, rising public scrutiny of public health and dietary patterns and expanding general understanding of the advantages of physical exercise aided adult lifestyle changes, resulting in increased demand for indoor sports facilities. In addition, historically, low-interest rates created a favorable financing environment for new building activities, resulting in the development of new indoor sports facilities during the next five years.
Because the global fitness and recreational sports centers market is extremely fragmented, its development has slowed. However, due to the growing fitness consciousness among the youthful population, the industry is expected to see rapid end-to-end overall expansion in the near future. Gymnasiums, yoga, aerobic dancing, handball sports, racquet sports, skating, swimming, and other fitness and leisure sports facilities are available. These facilities have aided the public in achieving their fitness objectives and managing their health issues.
In the last decade, the worldwide fitness and leisure sports centers sector has grown significantly. The aging population is causing health and fitness clubs to broaden their target audience beyond the conventional 18-35-year-old. Operators in the industry are rapidly broadening their target demographic to include those aged 35 to 54 and those under the age of 18. Female members make up around 40% of fitness and recreational sports center members, a number that has risen in recent years. The rise in the number of female-only health club facilities is most likely to blame for the increase in female involvement. Depending on age category, the worldwide market is segmented into 35 and under, 35-54, and 55 and over.
The situation for fitness and recreational sports centers differs by area and is mostly influenced by health awareness, the prevalence of lifestyle diseases, the youthful population, and per capita income. Due to customer preferences, various forms of fitness and leisure facilities, such as yoga, aerobic dance, and gymnasiums, are favored in different geographical locations.
Marketing Plan
Content Marketing: An educational blog about UW Health Sports Factory that guides users to the best option for their requirements.
Flyers: Distribute flyers to advertise the activities and services offered by the UW Health Sports Factory.
Social Media: UW Health Sports Factory has a presence on social media channels like Facebook, Instagram, and LinkedIn and actively responds to prospective customers’ inquiries.
Website: The UW Health Sports Factory website offers an interactive experience that answers questions and showcases the unique value of our services.
Referral Discounts: Discounts are offered to new customers who former customers have referred.
Organogram:
Financial Plan
Earnings:
Break-Even Analysis:
Income Statement:
| 2020A | 2021A | 2022F | 2023F | 2024F | |
| ANNUAL REVENUE | |||||
| Item 1 | 9,217 | 59,117 | 175,410 | 415,277 | 781,357 |
| Item 2 | 34,701 | 222,558 | 660,368 | 1,563,394 | 2,941,580 |
| Item 3 | 4,067 | 19,561 | 46,432 | 78,519 | 114,905 |
| Total annual revenue | 47,985 | 301,236 | 882,211 | 2,057,189 | 3,837,842 |
| % increase | 528% | 193% | 133% | 87% | |
| COST of REVENUE | |||||
| Item 1 | 360 | 2,259 | 6,617 | 15,429 | 28,784 |
| Item 2 | 480 | 3,012 | 8,822 | 20,572 | 38,378 |
| Item 3 | 52,000 | 65,000 | 78,000 | 91,000 | 104,000 |
| Item 4 | 720 | 3,615 | 8,822 | 16,458 | 23,027 |
| Item 5 | 140,000 | 336,000 | 560,000 | 840,000 | 1,120,000 |
| Item 6 | 60,000 | 144,000 | 240,000 | 360,000 | 480,000 |
| Item 7 | 32,000 | 61,333 | 85,533 | 112,153 | 141,435 |
| Total Cost of Revenue | 285,560 | 615,220 | 987,794 | 1,455,612 | 1,935,625 |
| as % of revenue | 595% | 204% | 112% | 71% | 50% |
| Gross Profit | -237,575 | -313,984 | -105,583 | 601,578 | 1,902,218 |
| SELLING & ADMIN EXPENSES | |||||
| Item 1 | 28,000 | 96,800 | 154,880 | 175,692 | 193,261 |
| Item 2 | 75,000 | 105,000 | 120,000 | 120,000 | 120,000 |
| Item 3 | 36,000 | 96,000 | 108,000 | 120,000 | 120,000 |
| Item 4 | 8,000 | 12,000 | 12,000 | 12,000 | 12,000 |
| Item 5 | 3,839 | 18,074 | 44,111 | 61,716 | 115,135 |
| Item 6 | 3,359 | 12,049 | 26,466 | 41,144 | 76,757 |
| Item 7 | 5,600 | 10,000 | 12,904 | 15,034 | 17,376 |
| Item 8 | 6,667 | 14,000 | 22,067 | 30,940 | 40,701 |
| Total selling & admin expenses | 166,464 | 363,924 | 500,428 | 576,525 | 695,230 |
| as % of revenue | 347% | 121% | 57% | 28% | 18% |
| Net profit | -404,039 | -677,907 | -606,011 | 25,052 | 1,206,987 |
| Accumulated net profit | -404,039 | -1,081,947 | -1,687,957 | -1,662,905 | -455,918 |
Cash Flow Statement:
| 2020A | 2021A | 2022F | 2023F | 2024F | |
| CASH FLOW from OPERATING ACTIVITIES | |||||
| Net profit before tax | -$404,039 | -$677,907 | -$606,011 | $25,052 | $1,206,987 |
| Depreciation | $44,267 | $85,333 | $120,504 | $158,127 | $199,512 |
| Payables | |||||
| Item 1 | $4,333 | $5,417 | $6,500 | $7,583 | $8,667 |
| Item 2 | $11,667 | $28,000 | $46,667 | $70,000 | $93,333 |
| Item 3 | $6,250 | $8,750 | $10,000 | $10,000 | $10,000 |
| Item 4 | $3,000 | $8,000 | $9,000 | $10,000 | $10,000 |
| Item 5 | $667 | $1,000 | $1,000 | $1,000 | $1,000 |
| Total payables | $25,917 | $51,167 | $73,167 | $98,583 | $123,000 |
| change in payables | $25,917 | $25,250 | $22,000 | $25,417 | $24,417 |
| Receivables | |||||
| Item 1 | $320 | $1,506 | $3,676 | $5,143 | $9,595 |
| Item 2 | $360 | $1,807 | $4,411 | $8,229 | $11,514 |
| Total receivables | $680 | $3,314 | $8,087 | $13,372 | $21,108 |
| change in receivables | -$680 | -$2,634 | -$4,773 | -$5,285 | -$7,736 |
| Net cash flow from operating activities | -$334,536 | -$569,958 | -$468,280 | $203,311 | $1,423,180 |
| CASH FLOW from INVESTING ACTIVITIES | |||||
| Item 1 | $16,000 | $13,200 | $14,520 | $15,972 | $17,569 |
| Item 2 | $20,000 | $22,000 | $24,200 | $26,620 | $29,282 |
| Item 3 | $28,000 | $22,000 | $14,520 | $10,648 | $11,713 |
| Item 4 | $96,000 | $88,000 | $72,600 | $79,860 | $87,846 |
| Item 5 | $20,000 | $22,000 | $24,200 | $26,620 | $29,282 |
| Net cash flow/ (outflow) from investing activities | -$180,000 | -$167,200 | -$150,040 | -$159,720 | -$175,692 |
| CASH FLOW from FINANCING ACTIVITIES | |||||
| Equity | $400,000 | $440,000 | $484,000 | $532,400 | $585,640 |
| Net cash flow from financing activities | $400,000 | $440,000 | $484,000 | $532,400 | $585,640 |
| Net (decrease)/ increase in cash/ cash equivalents | -$114,536 | -$297,158 | -$134,320 | $575,991 | $1,833,128 |
| Cash and cash equivalents at the beginning of the year | – | -$114,536 | -$411,693 | -$546,014 | $29,978 |
| Cash & cash equivalents at the end of the year | -$114,536 | -$411,693 | -$546,014 | $29,978 | $1,863,105 |
Balance Sheet:
| 2020A | 2021A | 2022F | 2023F | 2024F | |
| NON-CURRENT ASSETS | |||||
| Item 1 | $16,000 | $29,200 | $43,720 | $59,692 | $77,261 |
| Item 2 | $20,000 | $42,000 | $66,200 | $92,820 | $122,102 |
| Item 3 | $28,000 | $50,000 | $64,520 | $75,168 | $86,881 |
| Item 4 | $96,000 | $184,000 | $256,600 | $336,460 | $424,306 |
| Item 5 | $20,000 | $42,000 | $66,200 | $92,820 | $122,102 |
| Total | $180,000 | $347,200 | $497,240 | $656,960 | $832,652 |
| Accumulated depreciation | $44,267 | $129,600 | $250,104 | $408,231 | $607,743 |
| Net non-current assets | $135,733 | $217,600 | $247,136 | $248,729 | $224,909 |
| CURRENT ASSETS | |||||
| Cash | -$114,536 | -$411,693 | -$546,014 | $29,978 | $1,863,105 |
| Accounts receivables | $680 | $3,314 | $8,087 | $13,372 | $21,108 |
| Total current assets | -$113,856 | -$408,380 | -$537,927 | $43,349 | $1,884,214 |
| Total Assets | $21,878 | -$190,780 | -$290,791 | $292,078 | $2,109,122 |
| LIABILITIES | |||||
| Account payables | $25,917 | $51,167 | $73,167 | $98,583 | $123,000 |
| Total liabilities | $25,917 | $51,167 | $73,167 | $98,583 | $123,000 |
| EQUITIES | |||||
| Owner’s equity | $400,000 | $840,000 | $1,324,000 | $1,856,400 | $2,442,040 |
| Accumulated net profit | -$404,039 | -$1,081,947 | -$1,687,957 | -$1,662,905 | -$455,918 |
| Total equities | -$4,039 | -$241,947 | -$363,957 | $193,495 | $1,986,122 |
| Total liabilities & equities | $21,878 | -$190,780 | -$290,791 | $292,078 | $2,109,122 |
