WINTER2016
11
I
f you are looking to capture a greater
percentage of your youth sports market and
differentiate your indoor sports business,
sports performance training might make sense
and accelerate your growth. Consider this
offering and capture a greater percentage of
your market, instead of letting someone else
take it.
One of the important financial barometers
to help determine an indoor sports facility's
financial performance is "revenue per square
foot." When you evaluate your indoor sports
facility utilizing this method, it demonstrates
how effective you are utilizing your primary
asset, your physical plant. Since your physical
plant is your most costly investment, updated
and successful programming inside of it should
be carefully thought out and maximized for the
highest financial return.
Calculating your revenue per square foot, you
will also determine the most profitable space
of your facility, based on when and where,
specifically, your customers spend the most
money. Areas in your indoor sports facility
such as food & beverage stands, retail areas
and party rooms could be highly profitable
square footage. These "profit centers," can
really bring your business's profitability over
the top.
For other areas, add up the gross "revenue,"
that each specific area generates and divide
this number by the actual square footage each
specific area occupies. Once you know your
highest values, perform the same exercise
for all square footage of your facility. You may
determine that the fields, courts and rinks
might not be your highest revenue generator
per square foot.
Revenue per square foot is a great way to
evaluate your business and determine if you
are maximizing your initial investment. If you
are not generating the revenue per square foot
that you desire, or have underutilized space in
your indoor sports facility, it may be time to
investigate some niche programming.
Of course, any new opportunity should map
back to your overall core business philosophy
and mission. For example, every indoor sports
facility offers the same underlying theme,
