23 data to include in the business plan of your indoor soccer facility

This article was written by our expert who is surveying the industry and constantly updating the business plan for an indoor soccer facility.

Our business plan for an indoor soccer facility will help you build a profitable project

Ever wondered what the ideal occupancy rate should be to ensure your indoor soccer facility remains profitable?

Or how many field rentals you need to book during peak hours to meet your revenue goals?

And do you know the optimal staff-to-player ratio for providing excellent service and maintaining safety standards?

These aren’t just nice-to-know numbers; they’re the metrics that can make or break your business.

If you’re putting together a business plan, investors and banks will scrutinize these figures to gauge your strategy and potential for success.

In this article, we’ll cover 23 essential data points every indoor soccer facility business plan needs to demonstrate you're prepared and ready to thrive.

Field rental fees should not exceed 15-20% of total revenue to maintain profitability

Field rental fees should ideally be kept within 15-20% of total revenue to ensure the indoor soccer facility remains profitable.

When rental fees exceed this percentage, it can significantly cut into profit margins, making it difficult to cover other essential expenses like staffing, maintenance, and utilities. Keeping rental fees within this range allows for a balanced allocation of resources, ensuring the facility can operate smoothly and sustainably.

However, this percentage can vary depending on factors such as location, competition, and demand.

In areas with high demand and limited competition, facilities might be able to charge higher fees, allowing for a slightly higher percentage of revenue to be allocated to rental costs. Conversely, in areas with lower demand or more competition, facilities may need to keep rental fees lower to attract customers, thus maintaining the 15-20% guideline to stay competitive and profitable.

Staffing costs, including referees and coaches, should stay between 25-35% of total revenue

Staffing costs, including referees and coaches, should stay between 25-35% of total revenue to ensure the financial sustainability of an indoor soccer facility.

Maintaining this percentage allows the facility to allocate sufficient funds to other essential areas like maintenance, utilities, and marketing, which are crucial for overall operations. If staffing costs exceed this range, it could lead to financial strain, making it difficult to cover these other necessary expenses.

However, the exact percentage can vary depending on factors such as the size of the facility and the number of leagues or events hosted.

For instance, a larger facility with more games might have higher staffing costs due to the need for more referees and coaches, but it can also generate more revenue to offset these costs. Conversely, a smaller facility might aim for the lower end of the range to maintain a balanced budget while still providing quality services.

An average turnover rate for indoor soccer staff is around 50%, so plan for ongoing recruitment and training expenses

An average turnover rate for indoor soccer staff is around 50%, so it's crucial to plan for ongoing recruitment and training expenses.

This high turnover can be attributed to the seasonal nature of indoor soccer, where demand for staff fluctuates throughout the year. Additionally, many positions are part-time or temporary, which can lead to staff seeking more stable employment elsewhere.

Moreover, the work environment can be physically demanding, leading to burnout and further contributing to turnover.

However, turnover rates can vary depending on factors such as location and management practices. Facilities that invest in employee development and create a positive work culture may experience lower turnover rates, reducing the need for constant recruitment.

60% of indoor soccer facilities close within the first three years, often due to cash flow problems

Many indoor soccer facilities face closure within the first three years primarily due to cash flow problems.

These facilities often require significant upfront investment in terms of leasing or purchasing space, installing turf, and maintaining equipment. Additionally, operational costs such as utilities, staffing, and marketing can quickly add up, making it challenging to maintain a steady cash flow.

Without a strong customer base or consistent bookings, revenue can be unpredictable, leading to financial strain.

However, the success rate can vary depending on factors like location, with facilities in densely populated areas potentially having a higher chance of survival due to a larger customer base. Moreover, facilities that diversify their offerings, such as hosting leagues, tournaments, and events, may find more revenue streams to support their operations.

Facilities should aim to reach a break-even point within 12 months to be considered viable

Indoor soccer facilities should aim to reach a break-even point within 12 months to ensure they are financially viable.

This timeline is crucial because it allows the facility to cover its initial investment costs and start generating profit, which is essential for long-term sustainability. If a facility takes longer than a year to break even, it may struggle with cash flow issues and risk becoming financially unstable.

However, the time it takes to reach the break-even point can vary depending on factors such as location, market demand, and the facility's size.

For instance, a facility in a densely populated area with high demand for indoor sports might reach its break-even point faster than one in a less populated region. Additionally, facilities that offer additional services like coaching or tournaments may also achieve profitability sooner due to diversified revenue streams.

Concession sales can contribute 10-15% of total revenue, making them a key area for profitability

Concession sales can significantly boost an indoor soccer facility's revenue, often contributing around 10-15% of total earnings.

This is because players and spectators frequently purchase snacks and drinks during games, creating a steady stream of income. Additionally, offering a variety of food and beverage options can enhance the overall customer experience, encouraging repeat visits.

However, the impact of concession sales can vary depending on factors like location and demographics.

For instance, facilities in areas with higher foot traffic or those hosting large tournaments might see even greater revenue from concessions. Conversely, smaller venues or those in less populated areas may not experience the same level of profitability from these sales.

Prime cost (staffing and facility maintenance) should stay below 55% of revenue for financial health

Keeping prime costs, which include staffing and facility maintenance, below 55% of revenue is crucial for the financial health of an indoor soccer facility because it ensures that a significant portion of revenue is available for other essential expenses and profit.

When prime costs exceed this threshold, it can lead to cash flow issues and limit the facility's ability to invest in improvements or handle unexpected expenses. This percentage acts as a guideline to maintain a balance between operational efficiency and financial stability.

However, this percentage can vary depending on factors such as the facility's location, size, and the level of competition in the area.

For instance, a facility in a high-cost urban area might have higher staffing costs, necessitating a different benchmark. Conversely, a smaller facility with fewer staff might be able to maintain a lower percentage, allowing more flexibility in other areas of the budget.

Allocate 2-3% of revenue annually for equipment maintenance and replacement, including turf and goals

Allocating 2-3% of revenue annually for equipment maintenance and replacement, including turf and goals, is crucial for ensuring the longevity and safety of an indoor soccer facility.

This percentage acts as a guideline to help facility managers plan for the inevitable wear and tear that comes with regular use, especially since turf and goals are subject to constant stress. Regular maintenance not only extends the life of these assets but also helps in maintaining a high-quality experience for players, which is essential for customer satisfaction and retention.

However, the exact percentage can vary depending on factors such as the facility's size and the volume of traffic it experiences.

For instance, a larger facility with more fields might need to allocate a higher percentage due to increased usage and potential for damage. Conversely, a smaller facility with less traffic might find that a lower percentage suffices, but they should still ensure that they are not underfunding this critical aspect of their operations.

A successful facility should aim for at least 75% field utilization during peak hours

A successful indoor soccer facility should aim for at least 75% field utilization during peak hours to ensure financial viability and optimal resource use.

High utilization rates during peak times, such as evenings and weekends, help cover operational costs and maximize revenue. This is crucial because these are the times when most players are available, making it essential to fill the fields to capacity.

However, the ideal utilization rate can vary depending on factors like location, competition, and the specific needs of the community.

For instance, a facility in a densely populated urban area might need to aim for even higher utilization rates due to higher demand and competition. Conversely, a facility in a smaller town might find that a slightly lower utilization rate is acceptable if it meets the community's needs and maintains profitability.

Inventory turnover for concession items should occur every 5-7 days to ensure freshness and minimize waste

Inventory turnover for concession items at an indoor soccer facility should occur every 5-7 days to ensure freshness and minimize waste.

This frequency helps maintain the quality of perishable goods, such as snacks and beverages, which can quickly lose their appeal if not consumed in a timely manner. Additionally, regular turnover reduces the risk of expired or spoiled products, which can lead to customer dissatisfaction and financial loss.

However, the ideal turnover rate can vary depending on factors such as customer traffic and the types of items being sold.

For instance, a facility with high foot traffic might need to restock more frequently to meet demand, while a location with fewer visitors might extend the turnover period slightly. Ultimately, understanding the specific needs and patterns of your facility will help you determine the most effective inventory strategy.

Expect to lose 2-4% of revenue due to theft or inventory shrinkage, particularly in concessions

Expect to lose 2-4% of revenue due to theft or inventory shrinkage, particularly in concessions, because managing inventory in a busy indoor soccer facility can be challenging.

Concessions often involve handling small, easily pilfered items like snacks and drinks, which can lead to unnoticed theft by both customers and employees. Additionally, the fast-paced environment and high turnover of part-time staff can result in inadequate inventory tracking, making it easier for shrinkage to occur.

These factors combined create a situation where maintaining accurate inventory records becomes difficult, leading to potential revenue loss.

The extent of shrinkage can vary depending on factors such as the size of the facility and the effectiveness of the security measures in place. Facilities with more robust inventory management systems and better-trained staff may experience lower shrinkage rates, while those with less oversight might see higher losses.

Rent should not exceed 10-12% of total revenue to avoid financial strain

For an indoor soccer facility, keeping rent at 10-12% of total revenue is crucial to avoid financial strain.

When rent exceeds this percentage, it can significantly cut into profits, leaving less money for other essential expenses like staff salaries and equipment maintenance. This can lead to a vicious cycle where the facility struggles to maintain quality, potentially driving away customers and further reducing revenue.

However, this percentage can vary depending on factors like location and market demand.

In high-demand areas, facilities might be able to sustain a higher rent percentage because they can charge more for services. Conversely, in areas with less demand, keeping rent low is even more critical to ensure the business remains viable.

Upselling merchandise and memberships during peak times can increase average transaction size by 15-25%

Upselling merchandise and memberships during peak times at an indoor soccer facility can significantly boost the average transaction size by 15-25% because customers are already in a spending mindset.

During peak times, the facility is bustling with activity, and customers are more likely to be in a positive mood, making them more receptive to purchasing additional items. This is the perfect opportunity to introduce them to exclusive merchandise or membership benefits that enhance their experience.

However, the effectiveness of upselling can vary depending on factors such as the demographics of the customers and the specific offerings available.

For instance, families attending a weekend game might be more interested in purchasing team-branded apparel for their kids, while regular players might be more inclined to invest in a membership package that offers discounts on future bookings. Tailoring the upselling strategy to match the interests and needs of different customer segments can maximize the potential increase in transaction size.

The average profit margin for an indoor soccer facility is 5-7%, with higher margins for youth leagues and lower for adult leagues

The average profit margin for an indoor soccer facility is typically 5-7%, with variations depending on the type of league hosted.

Facilities hosting youth leagues often enjoy higher margins because they can charge premium fees for training and development programs, which are in high demand among parents. Additionally, youth leagues tend to have longer seasons and more frequent games, leading to increased revenue opportunities.

On the other hand, adult leagues generally have lower profit margins due to lower participation fees and shorter seasons.

Specific cases can vary; for instance, a facility located in a high-income area might achieve higher margins due to the ability to charge more for league participation. Conversely, a facility in a competitive market with many alternatives might struggle to maintain even the average profit margin.

Average transaction amount should grow by at least 4-6% year-over-year to offset rising costs

For an indoor soccer facility, the average transaction amount needs to grow by at least 4-6% year-over-year to keep up with rising costs.

These costs include things like utilities, maintenance, and staffing, which tend to increase annually due to inflation and other economic factors. If the facility doesn't increase its transaction amounts, it might struggle to cover these essential operational expenses.

Moreover, a steady increase in transaction amounts can help the facility invest in upgrades and improvements that attract more customers.

However, the required growth rate can vary depending on specific circumstances, such as the facility's location and the local economic climate. In areas with higher inflation or more competitive markets, a higher growth rate might be necessary to remain profitable.

Ideally, a facility should maintain a current ratio (assets to liabilities) of 1.5:1

Maintaining a current ratio of 1.5:1 is often recommended for an indoor soccer facility because it indicates a healthy balance between assets and liabilities, ensuring the facility can meet its short-term obligations.

This ratio suggests that for every dollar of liability, the facility has $1.50 in assets, providing a cushion to cover unexpected expenses or downturns in revenue. A higher ratio might indicate that the facility is not using its assets efficiently, while a lower ratio could signal potential liquidity issues.

However, the ideal current ratio can vary depending on specific circumstances, such as the facility's size, location, and business model.

For instance, a facility in a high-demand area might operate successfully with a lower ratio due to consistent cash flow. Conversely, a facility in a less populated area might need a higher ratio to safeguard against seasonal fluctuations in attendance and revenue.

Effective scheduling and league management can boost revenue by 10-20% by maximizing field usage

Effective scheduling and league management can significantly boost revenue for an indoor soccer facility by optimizing field usage and increasing the number of games played.

By carefully planning the schedule, facilities can ensure that peak hours are fully utilized, attracting more teams and players. This not only maximizes the use of available space but also allows for higher booking rates during these times.

Additionally, well-organized leagues can create a loyal customer base that returns season after season, providing a steady stream of income.

However, the impact of these strategies can vary depending on factors such as location, competition, and the facility's size. In areas with high demand and limited competition, the revenue boost might be closer to 20%, while in more saturated markets, the increase might be on the lower end of the spectrum.

Facilities should have 0.75-1 square meters of locker room space per player to ensure comfort and efficiency

Indoor soccer facilities should allocate 0.75-1 square meters of locker room space per player to ensure both comfort and efficiency.

This range provides enough room for players to change, store their belongings, and move around without feeling cramped. Adequate space helps in maintaining a smooth flow of players in and out of the locker room, which is crucial for timely transitions between games or practice sessions.

However, the specific space requirement can vary based on factors like the age and size of the players.

Younger players might need less space, while adult teams or those with more gear might require more. Additionally, facilities hosting multiple teams simultaneously may need to adjust their space allocations to accommodate the increased number of players efficiently.

Health and safety inspection scores can directly impact customer retention and should stay above 85%

Health and safety inspection scores are crucial for an indoor soccer facility because they directly influence customer trust and satisfaction.

When scores are above 85%, it signals to customers that the facility is committed to maintaining a safe and clean environment, which is essential for both players and spectators. Conversely, low scores can lead to negative perceptions and deter potential customers from returning, as they may feel their health and safety are at risk.

In specific cases, such as facilities catering to youth leagues or family events, maintaining high scores becomes even more critical because parents prioritize their children's safety.

On the other hand, facilities that host professional or adult leagues might experience slightly different customer expectations, but the underlying importance of safety remains. Ultimately, consistently high inspection scores help build a reliable reputation and encourage repeat business, which is vital for long-term success.

Facilities in urban areas often allocate 4-6% of revenue for marketing partnerships and community events

Indoor soccer facilities in urban areas often allocate 4-6% of their revenue for marketing partnerships and community events because these activities are crucial for attracting and retaining customers in a competitive environment.

Urban areas are densely populated, which means there are more potential customers but also more competition from other recreational facilities. By investing in marketing partnerships and community events, these facilities can increase their visibility and build a loyal customer base.

These marketing efforts help create a sense of community and engagement, which is essential for customer retention and word-of-mouth promotion.

The percentage of revenue allocated can vary depending on factors such as the facility's size, location, and target demographic. For example, a facility in a highly competitive area might spend more on marketing to stand out, while a facility with a niche audience might focus on more targeted events and partnerships.

Digital marketing should take up about 4-6% of revenue, especially for new or expanding facilities

Allocating about 4-6% of revenue to digital marketing is crucial for an indoor soccer facility, especially when it's new or expanding, because it helps establish a strong online presence and attract customers.

For new facilities, this investment is essential to build brand awareness and reach potential players who might not know about the facility yet. Expanding facilities need to maintain and grow their customer base, and digital marketing is a cost-effective way to achieve this by targeting specific demographics and interests.

However, the exact percentage can vary depending on factors like the facility's location, competition, and target audience.

For instance, a facility in a highly competitive urban area might need to invest more in digital marketing to stand out, while one in a less competitive area might get by with a smaller budget. Additionally, if the target audience is younger and more tech-savvy, a higher investment in digital marketing could yield better results compared to traditional marketing methods.

Seasonal league changes and special events can increase participation by up to 30% by attracting new players

Seasonal league changes and special events can boost participation at an indoor soccer facility by up to 30% because they create a sense of excitement and novelty.

When a facility introduces new leagues or hosts special tournaments, it often attracts players who are eager to try something different or compete in a unique setting. These events can also draw in new players who might not have considered joining before, as they see an opportunity to engage in a fresh and exciting experience.

Additionally, these events often come with promotional offers or discounts, which can further entice participation.

However, the impact of these changes can vary depending on factors such as the local community's interest in soccer and the facility's ability to effectively market the events. Facilities in areas with a strong soccer culture might see a more significant increase, while those in less enthusiastic regions may experience a smaller boost.

Establishing a variance in field rental revenue below 5% month-to-month is a sign of strong management and control.

Establishing a variance in field rental revenue below 5% month-to-month is a sign of strong management and control because it indicates a consistent and predictable income stream.

In the context of an indoor soccer facility, this level of consistency suggests that the management team has effectively balanced supply and demand for field rentals. It also implies that they have successfully implemented strategies to maintain a steady flow of customer bookings and minimize cancellations.

Such stability in revenue is crucial for planning and budgeting, allowing the facility to make informed decisions about operational expenses and potential investments.

However, the significance of this variance can vary depending on specific cases, such as seasonal fluctuations or special events. For instance, a facility located in a region with distinct seasonal changes might experience natural variations in demand, making a 5% variance more challenging to achieve during off-peak months.