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Guide to Developing a Business Plan

Due to keen interest, the Squash Facilities Network has initiated a comprehensive guide for developing business models specifically for squash facilities. Recognizing that each project requires a unique, tailored approach, the guide will address key industry-specific elements crucial for creating economically viable and sport-supporting facilities. These elements will be detailed in our guide, which also considers local cultural, economic, and social factors in planning. 

Key topics include market analysis and competition, services and additional offerings, architecture and design, financial planning and pricing strategy, marketing and membership acquisition, and sustainability and social responsibility. These topics form a solid basis for tailoring business models to specific location conditions. Our aim is to present and discuss feasible models for both commercial and non-profit squash facilities, with a constant focus on economic sustainability. 

Given the high investment and operational costs of squash facilities, it's essential to develop a long-term viable business model. Even when funded by public means or donations, non-profit facilities must generate their own income to cover ongoing costs and ensure long-term existence. Surpluses can be reinvested in the development of squash, enhancing the offerings and attractiveness of the facility. 

To develop a business plan for a squash facility, a comprehensive examination of the following aspects is essential:

1. Market Analysis and Competition

A profound analysis of the local market is crucial to understand the needs of the target group and to create a unique offering. Important questions include:

Target Group Identification: Who are the potential customers?

Competitor Analysis: What similar offerings exist in the vicinity? Keep in mind that squash competes not only with other squash facilities but also with alternative sports and leisure activities.

Market Trends: What are the current and future trends in the sports and leisure sector that could influence planning? Consider how the facility can be flexibly designed to integrate and respond to future trends.

2. Offers and Additional Services

Besides squash courts, other services and offerings are crucial for the success of your facility. Integrating other sports or fitness areas, saunas, gastronomy, event spaces, and childcare can complement the offering and open up new revenue streams. Key aspects in this area include:

Diverse Sports Offerings: Consider offering other sports besides squash to reach a broader audience and promote a more balanced gender distribution.

Number of Squash Courts: The number of squash courts needed varies based on the type of facility. Typically, commercial facilities require between 6 to 8 courts to achieve financial sustainability. Non-profit facilities, on the other hand, can often operate effectively with as few as 4 courts. Incorporating additional sports into a facility can allow for a reduction in the number of squash courts required. However, to effectively host events and cultivate a vibrant community, a minimum of 3 to 4 courts is recommended.

Target Group Appeal through Additional Services: Focus on identifying extra services that can specifically cater to and attract distinct target groups.

Maximizing Facility Appeal through Synergistic Offerings: Investigate ways in which various services and activities can be integrated to mutually enhance and complement one another, thereby boosting the overall appeal of the facility

3. Architecture and Design

The architecture of a squash facility is a key element that not only visualizes the business model but also determines its functionality. Forward-thinking planning is crucial to avoid costly changes later. Key aspects include:

Ambience and Community: The central area of the facility should be designed to foster community and interaction, connecting important functional areas and serving as a social hub.

Space Layout and Flexibility: Flexible and efficient layout is essential, with careful arrangement of courts, changing areas, and communal spaces to adapt to various occasions.

Sustainability and Energy Efficiency: Environmentally friendly design elements, such as energy-saving lighting, sustainable building materials, and efficient heating and cooling systems, contribute to long-term cost savings.

Accessibility and Safety: Ensuring accessibility and safety for all user groups, including barrier-free access and secure changing and shower areas, as well as adequate emergency plans.

Technological Aspects: Utilizing state-of-the-art technologies to enhance user experience and operational efficiency, including online booking systems, digital display boards, and advanced climate and ventilation systems.

4. Financial Planning and Pricing Strategy

Detailed financial planning is critical for the success of a squash facility. It involves an in-depth analysis and calculation of all financial elements, ranging from initial investments to ongoing operational costs and anticipated revenues. A key aspect of this process is the development of a thoughtful pricing strategy. Important points in this area include:


Total Investment Definition: Clear calculation of initial costs, including construction, equipment, and initial outfitting.

Ongoing Operational Costs: Consideration of all regular expenses such as personnel, maintenance, energy costs, and marketing.

Anticipated Revenues: Estimation of income from membership fees, court rentals, and additional services.

Break-Even Analysis: Determination of the point at which revenues cover costs.

Pricing Strategy: Setting attractive and profitable prices for memberships, court rentals, and additional services.

Additional considerations include:

Flexible Pricing Model: Tailoring prices to different customer segments and needs.

Value for Money: Balancing the quality of the offer against the cost to customers.

Discount and Promotion Programs: Implementing programs to attract and retain customers.

5. Marketing and Membership Acquisition

Focused marketing is essential for squash facilities to effectively target the right audience and attract new members. A strategic marketing campaign incorporating digital marketing, social media, local partnerships, and events can captivate potential customers. Crucial to this is developing a brand image that mirrors the values and offerings of the facility. Key aspects include:

Digital Marketing: Utilizing social media, SEO, and online advertising to enhance online presence.

Local Partnerships: Collaborating with local businesses, schools, and clubs to increase visibility.

Events and Tournaments: Leveraging events to spark interest and enthusiasm for squash.

Community Building: Creating a community through member events, training courses, and social activities.

Additional considerations:

Target Group Specific Marketing: Tailoring marketing efforts to different demographic groups.

Feedback and Customer Retention: Gathering customer feedback to improve services.

Brand Development: Establishing a strong brand associated with quality and commitment to squash.

6. Sustainability and Social Responsibility

The integration of environmental friendliness and social responsibility is a crucial aspect in the business plan of a squash facility. This not only reflects modern corporate consciousness but also attracts an environmentally and socially conscious customer base. Key elements include:

Sustainable Construction Practices: Use of environmentally friendly materials and technologies in construction.

Energy Efficiency: Implementation of energy-saving measures such as efficient lighting and heating systems.

Promotion of Squash: Development of programs to promote squash in the local community, for example, through school partnerships or introductory courses.

Community Engagement: Active involvement in local social projects and initiatives.

Social Inclusion: Creation of inclusive offerings that incorporate various social groups and make the sport accessible to all.

Closing Word

This guide provides a comprehensive orientation for the development of business models for squash facilities, addressing key aspects such as market analysis, offers, architecture, financial planning, marketing, and sustainability. Additionally, we recommend considering the following areas:

Staff Management: Recruitment, training, and retention of qualified personnel.

Customer Feedback and Quality Assurance: Systematic collection and implementation of customer feedback.

Risk Management: Strategies for identifying and mitigating financial and operational risks.

Adaptability: Flexibility of the business model to changing market conditions and customer needs.

These additional considerations can help develop a more comprehensive and future-proof business model. The Squash Facilities Network is available for support and consultation to promote individual solutions and ensure the success of your facility. Feel free to contact us

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