There is no question Pickleball is a rising tide, and a rising tide creates tremendous opportunity. That said, some clubs will struggle, some will do OK, and some will thrive. Can you eliminate risk in a new business startup? You can’t. If you’re not comfortable with risk, a startup is not for you. Good entrepreneurs know they can’t eliminate risk, but strive to minimize risk by careful planning and due diligence. What are the risks?

Locking into the wrong location

Finding the right location, at the right price, is a critical success factor. Since rent is your largest expense, and it is fixed for years, locking into a lease is a huge decision. When we conservatively model Pickleball Club revenues, we can quickly see that the model ONLY makes sense if the monthly lease cost is reasonable. What’s reasonable? Depends on your area, your vision, and what you feel you can charge. Don’t delude yourself. Be conservative in your revenue estimates because once a lease is signed you are owning that expense for 5-10 years, it needs to support the model.

Under-estimating competition

Even if there are no clubs near you now, there will be. This is America, the land of aggressive entrepreneurs, and no consumer demand will go unfilled for long. Like in any business, getting in first is nice, but in the long run your success will depend on solid execution and carving out a unique position with your customers. The strategy for doing this needs to be built into your business plan and your thinking from the outset. Competition is from other start up clubs, but also from municipalities, community centers, health clubs, housing complexes and even schools. Be aware of what makes you different, and deliver on your promise. Note: having nice courts alone is not enough.

Under-Marketing?

The pickleball craze alone will not be enough to drive people to your club. Under-marketing is a risk. Especially early on. Marketing should begin the day you sign your lease — not before because until you sign a lease there is no assurance you will ever open. There is pent up demand in most areas and picklers are craving a cool place like the one you’re building. That said, they need to know about you and they need to feel listened to and catered to. There is a local ‘scene’ where you are; your team needs to tap into it, immerse yourself in it and understand how to serve it. Once open, money and staff will need to be dedicated to spreading the pickleball love to your community. Email, social media, community partnerships, and more.

Rigid thinking

Good entrepreneurs start with a plan…..and then pivot based on market realities. A client recently told me her restaurant operation was struggling for day to day revenues….but that she had an unexpected uber-demand for pickleball parties and events. Those events utilized the restaurant. My advice to her was to “lean in” to that and begin marketing herself as an event venue. That was what the market was telling her was needed. Whatever your original plan is, you will need to be prepared to shift and focus on what is most productive.

Underestimating the power of programming

I’ve blogged endlessly about this topic, but it bears repeating. Court rental and open play sessions are nice revenue streams and they will help you fill courts. But alone, they are not enough. Creative programming, actively managed day-in and day-out is what will fill courts, generate excess revenue, make your members happy and drive profitability. Ignore it at your peril.

Each time we visit somewhere to play, we learn a bit more about this market! 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.  For help with your business plan, or to initiate a feasibility assessment for your pickleball club, or for other consulting, contact us so we can learn about your project.