Is Indoor Sports Complex Business Profitable?

The booming interest in health, fitness, and sports has paved the way for businesses that cater to these pursuits. Among such ventures, indoor sports complexes stand out, offering enthusiasts a place to play and train, irrespective of weather conditions. While the appeal is evident, the question remains: Is an indoor sports complex business profitable? In this article, we dive into the financial intricacies of running such an establishment.

Revenue

Here’s the table that was presented earlier, detailing the potential revenue items/sources for an indoor sports complex:

Cost of Goods SoldHere’s the table detailing the potential Cost of Goods Sold (COGS) for an indoor sports complex:

(Note: These figures are illustrative, meant to provide a general overview of potential COGS. Actual costs can vary based on factors such as the type and quality of equipment purchased, the scale of the complex, and the variety of refreshments stocked.)

Operating Expenses

Here’s a tabulated representation of potential operating expenses for an indoor sports complex:

To determine the net profit or loss, we’ll use the formula:

Net Profit or Loss=Total Revenue−COGS−Operating Expenses

Net Profit or Loss=Total Revenue−COGS−Operating Expenses

Using the provided data:

• Total Revenue: $53,000
• Total COGS: $13,000
• Total Operating Expenses: $321,600

Plugging these values into the formula:

\text{Net Profit or Loss} = $53,000 – $13,000 – $321,600 \text{Net Profit or Loss} = $53,000 – $334,600 \text{Net Profit or Loss} = -$281,600

Based on this hypothetical data, the indoor sports complex business would operate at a net loss of $281,600 for the period.