Unless your rich uncle is handing you a chunk of cash, you’ll need to find startup capital from lenders or investors. Whether you purchase a franchise, build a building, or lease a space you’ve got an “up front” capital need. To get it, you can borrow (debt) or offer shares in your business (equity). Either way, the folks providing the money will want certain information and assurances.
- Business Overview: Details about the nature of the business, industry analysis, market research, competitive landscape and scale of the opportunity
- Information about you. Your background, experience, the team you’ve assembled, your personal and business credit history and your suitability to launch a pickleball business.
- How much money you need and when it will be paid back, backed up by financial projections.
- Financial projections / Feasibility Assessment. Startup expenses, and detailed line by line operating revenues, operating expenses and net income. Monthly in year 1, annual summaries for years 2, 3 and perhaps further.
- Operating plan. Description of key business processes such as marketing, customer service, new business acquisition, administration, and staffing.
- Critical success factors. Key things that will need to happen for financial projections to be achieved. The “how” behind the numbers.
- “Skin in the Game”: Lenders and investors want to know you are personally committed and not just risking their money. Your money or in some cases your collateral will need to be on the line for them to feel comfortable that you will work hard to get the results.
To initiate professional business planning for your pickleball club, or for other consulting, contact us so we can learn about your project and propose ways we can help. Pickleball Business Advisors is brothers Bill and John Pryor. We provide a variety of consulting services based on extensive experience in fitness business development, and research into the fast growing pickleball marketplace.