I am a regular 22 year old college student. I have a business idea that would take x of millions of dollars to start. How would i go about getting funds/started in the process of building an indoor sport complex? It would consist of basketball courts, a turf soccer field, and other areas for volleyball and other sports. Winter takes up 8 months of the year here, limiting the use of the outdoor arenas. A lot of people get throught the winter by playing sports. There are limited places(that are nice) to go for sports such as soccer, basketball, volleyball…etc. There are 3 recreation centers, a YMCA, and few health clubs that arent even involved with sports. Some high schools rent their gyms out but it is pretty pricy. There is one sports complex that is semi new but poorly ran. They have a turf field and 5 courts for basketball, volleyball, etc., that are made from this weird plastic flooring. I am convinced that if there were another sports complex, that it would be very successful.
4 Responses to how does a young and inexperienced entrepreneur start a business with high OH?
Unrealistic approach will get unrealistic answers.
Have you done your research on your area? Is there a real need for this? If so, what does the city mayor do about it? Anything? Nothing? what?
1. Do you research, find out what is the real need for your city.
2. After you conducted your research, then you can know where is needed for this plan of yours.
3. Write a proposal to the city or to the Realty companies (TOP company in the US) finding out if you can attracted them to come to your city and built this. You must have solid research to back this up. Speak or talked with pplx who are into real estate industry, government urban agency, etc. Make a development.
Make this plan into reality!
Have fun!
A young and inexperienced enterprenour will fail on a business venture when he begins with a high OH. First and foremost no body or entity will loan you that kind of money. Secondly, considering the high risk involved, you may not be cost effective.
Such business involving millions of money needs expertise and liverage. And you know its a long term investment, you may not expect profit soon and you will start paying interest, the moment your period expires you are expected to pay back the money.
I advise you dont think about it. Rather, think on small time business venture that will give you a moderate yield.
I would suggest trying to get a job at the poorly ran sports complex. I can just imagine what you could do since you have so many great ideas.
Maybe there is a reason that the current center is not running smoothly. Lack of funds, grants, city not allocating money to it? I bet you are a passionate person that might be able to do a lot of good in the community by helping turn that place around.
Once you have experience working to improve one current facility, you would have connections to possible investors for another facility. At 22 there are a lot of directions you can go, but sometimes it takes a couple of years of testing the waters before you jump right in.
You have to have the market for it. Go to the sports complex and ask how frequently or difficult it is to rent out the courts. If there is alot of free time, I would be concerned. Even if it’s poorly run, if people want to play sports, they will.
And it being winter 8 MONTHS of the year leads me to believe you are not in a heavily populated area. If you are, you really have to find out the number of people who want to do the activities for a cost that you listed. Would a Hockey rink be an option?
And if the new sports complex is poorly run, why is that? You could wait until they go out of business and buy the business for less than new, but again, it they don’t have the clientel to support it, you throwing money away. And if you open in direct competion, how many of their customers do you really expect to take away. You could be over-saturating the market.
I have seen many basketball clubs such as this fail due to lack of interest. Even in heavily populated areas as the fees and cost prevent a regular client base.
The key to opening up a business is low starting cost and overhead. Build you business as sales increase. Timing is very important – have a product or service that is needed, not just a passion of yours. It’s a great to be passionate about something you love and turning it into a business, but you have to be realistic. Have you ever noticed a chain start shutting down stores due to unprofitable due to too many units? Burger King shut down over 1500 stores due to a drop in sales, oversaturation, and gained a poor reputation as quality and service sucked due to expansion with poor execusion of their mission from a mostly part-time staff that were not trained, just hired to fill spots.