People often think that having a sports facility is a fantastic way to make money because more and more people need somewhere to play, practice, and keep healthy. But there may be costs that aren’t obvious that could have a huge impact on the facility’s long-term success and profitability. You might not see these costs since the courts are clean, the gyms are crowded, and the fields are well-kept. To be successful in the long run, you need to know these expenses and follow sound management methods.
Maintenance and Upkeep
It’s crucial to do regular maintenance, but repairs that pop up out of the blue and equipment and infrastructure that steadily get worse could cost more than you intended. Locker rooms, bathrooms, and playing fields are all places where a lot of people go; thus, they need to be cleaned all the time. For example, hardwood basketball courts need to be resurfaced every few years, artificial turf doesn’t last forever, and HVAC systems need to be serviced on a regular basis to keep the air quality and temperature at their finest.
As a tip for managers, set a schedule for frequent maintenance. Regular checks can uncover problems before they get worse and necessitate costly repairs. When building a sports facility for the first time, using high-quality, long-lasting materials may help keep maintenance costs down in the long term.
How energy is used
A lot of power is needed for sports facilities. Things like treadmills, saunas, and swimming pools, as well as heating and cooling systems and lights for huge indoor spaces, all use a lot of power. People often forget about how much it costs to use energy inefficiently, such as having old lights or not enough insulation.
Tip for managers: Put in programmable thermostats and switch out lights that aren’t working well with LED lighting. You might want to think about getting an energy audit to find ways to consume less energy. Natural light and proper insulation are examples of sustainable design characteristics that can help you save a lot of money on your energy bills.
Hiring and training people
Salaries are one of the costs of hiring people. Costs that aren’t obvious include hiring, training, benefits, and turnover. High staff turnover can also make it challenging to keep things running smoothly because you have to constantly hire and train new people all the time.
Tip for managers: Make the workplace a lovely place to work so that people stay. Spend money on thorough training programs so that you can get more done and make fewer costly mistakes. Cross-training workers can also make things more flexible and cut down on the need to hire new individuals.
Responsibility and Insurance
Injuries, property damage, and liabilities are more likely to happen at sports facilities than anywhere else. You need basic insurance, but you might have to pay more than you planned because of gaps in coverage, large deductibles, and claims that aren’t covered.
Tip for managers: To get full coverage that protects your firm from the specific hazards it confronts, talk to an insurance agent. Regularly review and update rules to keep up with new technologies, projects, and changes in how things are done. Strong safety measures can also minimize the chances of accidents and the lawsuits that follow.
Technology and Safety
Reservation systems, security cameras, and controls on who can enter are all examples of how modern sports arenas need technology to work. Costs you didn’t expect can include software licensing fees, system updates, and cybersecurity measures that are necessary to protect sensitive data.
Tip for managers: Choose technology that can grow with your firm so that it can grow. You should update your software periodically to keep your computer safe and working well. Investing in integrated management systems can make things run more smoothly and cut down on the number of platforms you need.
Getting involved in the community and spreading the word
You need to constantly market if you want to gain and keep members. There are hidden expenses that go beyond the obvious ones, including the cost of advertising campaigns and promotional materials. These include the cost of maintaining a website, managing social media, and the opportunity costs of not having a strong online presence.
Tip for managers: Use cheap digital channels like email and social media to make a full marketing campaign. Check the return on investment (ROI)of your marketing efforts on a regular basis to make sure you are investing your time and money properly.
Following the Rules
Following health, safety, and mobility rules might cost more than you thought. Because the law has changed, facilities may need to be fixed up, employees may need to be taught, or new tools may need to be bought to comply with the new rules.
It’s important for managers to know the rules and laws that apply to their area. Have a compliance team or someone on staff keep an eye on changes and make the changes that need to be made ahead of time.
Getting new assets and writing down old ones
Parts of a building that are used for making things and exercise equipment lose value over time. Replacements or losses that come up out of the blue can be hidden costs that make it harder to plan for taxes and other costs.
As a manager, you should make an asset management plan that tells you how long your infrastructure and tools will last. You won’t have to worry about money when your expensive things are almost at the end of their useful life if you plan to change and replace them often.
Running a sports center can be a great way to help people and make money, but there are some secret costs that come with the job that you need to be aware of and deal with. These hidden costs can be cut by facility managers doing regular maintenance, getting technologies that use less energy, training qualified staff, making sure they have full insurance, following the rules, and using technology wisely. It is easier to run sports sites that were well thought out. This saves money in the long run. A sports center that works well and lasts a long time might be possible if you carefully plan how to keep costs low.
