18
few million in sales on your business and think you
are doing great – you may be losing a lot of money by
leaving it lying on your proverbial sports fields.
That is not to say that an initial investment in an indoor
sports facility is a bad investment. To the contrary,
many of us have accumulated a handsome return in
this industry; but mature businesses have to have a
mature plan as they age into their peak earning years.
I believe when a commercial indoor sports facility hits
the historical peak in user fees, gets to maximum
occupancy, and the highest profit structure, it is time
for the next act. Most businesses only hit the highest
income, a full schedule, and the maximum profit
trifecta of business metrics briefly in its history. If you
miss that magical moment, you will ultimately be riding
roller-coaster business cycles long after the business
value, at least in your vision, has been depleted.
I am not suggesting a quick flip transaction. Business
development, growth, maturation, and exit strategy
may take many years, but everything should lead to a
broad plan to pluck a ripe business
and move on. Many owners will stay
and continue running a facility because it is fun and
still challenging. But at some point, you must look at
the scoreboard, decide you are the winner and it is
time to move on to your next game or adventure.
For example, hitting a million or two in annual
revenues with a healthy profit percentage are critical
benchmarks. After you celebrate each achievement,
however, you need to recognize that the business
has significantly changed and needs a revised plan. A
company can be like an apple tree – it reaches its peak
growth and can't grow, and if you wait until it stops
producing fruit, you just have a worthless fruit tree.
The indoor sports industry has changed dramatically
in the past twenty years, and everything points to
significant upheavals in the upcoming years. Your
long-term strategy must recognize that you can't
predict tomorrow in business. Just ask Sears,
Blockbuster, Circuit City, Radio Shack, and the
hundreds of others. Unless you are willing to
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