Transforming vacant warehouse or big-box retail space into sports complexes requires a unique blend of sports, entertainment and recreation components.
Many private developers of indoor sports facilities question whether feasibility studies are necessary. The fact is, today’s lending and finance sources require an independently developed feasibility study. Sports Facilities Advisory’s process ensures that the feasibility study combines business planning, financial modeling, and feasibility into one step that produces the documents needed for financing and long-term financial oversight.
Because capital sources require an independently developed feasibility study, it is critical to select the right firm. With SFA you can be assured that the process and deliverable will meet the highest standards. Our feasibility studies are truly institutional-grade and “Wall Street-ready.”
Additionally, a large number of banks, equity firms, and Small Business Administration lending sources have begun requiring an SFA-produced feasibility study. This is because SFA is a one-of-a-kind firm that produces feasibility studies based on current and real world operations and not simply based on market statistics. Our process and current operations produce data that is now the definitive standard for predictive cash flow forecasting. This means that many of our clients come to SFA after having attempted to complete their own study or after having hired a different consultant, only to have their financing source require an SFA study.
Over the years, we have developed the Sports Facilities Advisory process for feasibility studies to provide our clients with a truly educational experience. Using our proprietary models for market research, user group interviews, online community surveys, and business planning; we help clients remain true to their primary vision while simultaneously defining new approaches that can maximize return on investment and economic impact.
When you engage SFA, the first step is a pre-survey and an internal preparation and market research phase. This provides your SFA team with critical data on your market and a snapshot comparison of your market to other markets where similar sports facilities are operating successfully.
Next, we schedule and meet with you to facilitate a strategy and program planning/facility planning session. This powerful series of discussions allows us to work closely with you to develop a business model and plan that is based on your goals and business objectives, “right sized” to your market, and designed to increase your likelihood of successful financing.
Following your session we’ll conduct the necessary research, define preliminary construction and start-up costs, analyze and document cash flow, and evaluate the opportunity in your marketplace. Our clients find this energizing and educational, and they tell us that our feasibility studies process opens their eyes to opportunities and realities they had not previously considered.
Key questions to consider when hiring a firm to produce a sport or recreation center feasibility study:
1. How many facilities similar to ours have you opened in the past 5 years?
2. How many facilities will you open in the next 24 months?
3. How many facilities do you currently operate?
4. How are your current facilities performing?
5. Can I have references from 4 or more customers?
If you’re ready to move your concept to the next level, or if your financing sources have requested a formal feasibility study for your sport, fitness, or recreation center; call or email SFA today.