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How to start a basketball gym


How to Start a Basketball Gym

Whether you’re an avid fan, a former athlete, or are simply looking for a new stream of revenue, starting, opening, and operating your own basketball gym can be a great way to stay in tune with the game.  However, starting your own basketball gym is not all fun and games.

Below, we’re going to show you how to start a basketball gym and what is required from you, and your facility, to make it successful.  Running a basketball gym is much like running a real gym and requires dedication, patience, working capital and just a bit of luck.

What is a Basketball Gym?

A basketball gym, contrary to more commercial gyms such as LA Fitness, Gold Gym, or Planet Fitness, are gyms specifically designed and geared towards basketball.  These gyms serve as recreation centers for the local community and offer basketball centric classes, workouts, drills, and conditioning.

And, contrary to many other niched gyms, basketball gyms are typically much larger and require more square footage to house multiple basketball courts, treadmills, and space for proper basketball conditioning and strength training.

In addition to housing basketball courts and specific cardio and muscular equipment, basketball gyms also provide members with one-on-one or team exercises to help their members hone their basketball skills. Similarly, a basketball gym will typically host group classes on specific basketball drills and will also be a community center for members to play pickup games.

Location, Location, Location

As the old real estate adage goes, location, location, location.

If you are looking to start a basketball gym, then the location is your most important factor and will likely play a determining role in your success or failure.  Many gyms are successful simply due to their ideal location, being close to major sources of foot and automobile traffic, while maintaining a significant presence within the community.

And similarly for a basketball gym, the location is everything. 

However, determining an ideal location for your basketball gym can be a bit more difficult than choosing the location for a commercial gym.   As commercial gyms tend to attract wide swaths of the population, basketball gyms simply do not.

You will want to find a location that is both centrally located and one that is near your target audience.  Similarly, you will want to find a location that is not being served by already established basketball courts or nearby gyms which have available courts.  These typically include larger gyms such as LA Fitness and more luxury ones such as Lifetime Fitness.

Plan Out Your Business

When it comes to starting a basketball gym, having a business plan can many times be the difference between success and failure.  And although location is important, not being prepared and not having a proper business plan can doom a business from the get-go.

Before even signing a lease or coming up with a name, you should determine how much the startup costs are for a basketball gym.  For a modest basketball gym, you can be looking from anywhere between $100,000 to $300,000.   This will include setting-up basketball courts, purchasing gym equipment, and purchasing basketballs and other basketball related products.

Similarly, you should also plan out your ongoing expenses.  This not only includes monthly rent expenses, but also employee expenses, utilities, insurance, advertising and marketing, and additional equipment.

Lastly, within your business plan you should determine how you are going to make money.  Now, while of course the bulk of your monthly revenue will be coming from membership dues, you will need to determine how much to charge each member on a monthly basis.

While many commercial gyms charge between $30 to $50 per month, as you are a niche gym, you may need to charge more.  It is also prudent to determine whether or not you will be offering discounts for certain members, including senior citizens, members under the age of 18, and families.

However, when it comes to monthly revenue, you should also explore additional streams such as providing vending machines, personal training, bootcamps, classes, and tournaments.   These additional services will not only provide you with additional monthly revenue but will also help you attract new members.

Finally, when planning your business plan, you should determine what your expected costs are and how many members you need to breakeven.  Although you will obviously be looking to make a profit, breakeven will help you to determine the exact number of members you need to keep your business afloat.

When determining how much to charge members, be sure to begin drafting the member agreement.  This agreement will act as a contract between the basketball gym and the member and will ensure that you are paid each month.

Choose a Name for Your Basketball Gym

Another important aspect of starting a basketball gym is determining the name of the gym.  This is an important step and one that will not only help you to differentiate yourself from the competition, but one that will help you begin establishing your brand.

Once you have determined your basketball gym name, be sure to check your state’s business records to ensure the name is available.   similarly, you should check both state and federal trademark records to ensure you are not infringing on another businesses trademark.

Lastly, be sure to confirm that the name is not being used by anyone else online.  This means checking the potential URL of the business, which can be done here.  In addition, you will want to ensure that any potential social media handles, including for Facebook, Instagram, Twitter, and the like, are available.

Form a Legal Entity

As a business owner, you will want to form a legal entity to protect yourself from any mishaps and to properly report taxes.  There are a number of different legal entities which you can choose from, and each has their benefits.

  • Limited Liability Company (LLC) – Perhaps the most common legal entity, an LLC is a hybrid between a corporation and a sole proprietorship.  As an owner of an LLC, you will be referred to as a member and if you are an individual owner, you will be known as a single member LLC.
    • For taxation purposes, an LLC is considered a “pass through entity”, meaning business income passes through the business to LLC members who report their share of the profits or losses on their individual tax returns.
    • For liability purposes, an LLC protects members from personal liabilities for business debts and claims.
  • Sole Proprietorship – A sole proprietorship legal entity is one that is owned and run by one individual.  Within a sole proprietorship, there is no legal distinction between the business and the owner.
    • For taxation purposes, a sole proprietorship has pass-through taxation.  This means the business does not file a tax return.  Rather, the income or losses from the business are passed to the owner who reports them on their own tax returns.
    • For liability purposes, a sole proprietorship entity has unlimited personal liability for any liabilities that the business incurs.  This can be lessened via insurance and proper contracts.
  • General Partnership – A general partnership is ideal if two or more people are looking to start a business for profit.  These partnerships can be created easily, but a partnership agreement should be drafted to ensure no foul play.
    • For taxation purposes, a general partnership is only a tax-reporting entity.  This means that an annual information return must be filed with the IRS, but the partnership does not pay federal income taxes.  Rather, each partner will pay taxes based on their share of the profits or losses.
    • For liability purposes, general partnerships also have unlimited liability, and each partner is responsible for any liabilities.

Register for Taxes

As a business, you will need to register with a variety of state and federal taxes before you can open for business.  This is done by filing for an EIN, or employer identification number.  This can be done directly with the IRS and ensures that your business is legitimate.

Open a Business Bank Account and Credit Card

As a business owner, you will want to keep your business expenses and revenue separate from your personal ones.  That is why you should only use a dedicated bank and credit card account for your business.  When your personal and business accounts are mixed, you risk your personal assets in the event the business is sued or declares bankruptcy.

Obtain Necessary Permits and Licenses

Similarly, as a legitimate business, you will want to acquire necessary permits and licenses.  Failure to do so can result in fines or even the closure of your business.  These permits and licenses vary by state, so you should check with the SBA’s state licenses and permits guide for more information.

And although the landlord is typically responsible for acquiring a certificate of occupancy, or CO, you should ensure that your landlord has a valid CO before signing any lease agreements.

Get Business Insurance

Unfortunately, injuries do occur.   And although you may think that, that will not happen to you, nothing can be further from the truth.  That is why you should obtain proper business insurance.  Business insurance will protect your company in the event of a covered loss.  To begin, you should obtain general liability insurance, which will cover your business from a range of risks.

Build Your Online Business

In the 21st century, all businesses have an online presence.  This not only includes a proper website, but also social media accounts.  These presences will not only help you to attract new members but will also provide members with useful information regarding your business.

Similarly, as a small business, you will want to setup both a Yelp and Google My Business account.  These services will allow your basketball gym to be found by the general public and will also provide them with general information regarding your business.

If you are unsure of how-to setup a business website or social media accounts, don’t hesitate to reach out to family and friends for help.   If you’re still unable to, then hiring someone to help is an ideal solution.

Begin Your Marketing and Advertising Efforts

While the old adage of, build it and they will come, holds true to a certain degree, you never want to risk the success of your business to chance.  Rather, you should begin your marketing and advertising efforts before you launch your basketball gym.

There are a plethora of ways you can market and advertise your basketball gym, with some being paid avenues and other being free.  You will need to determine the best route for marketing and advertising your business to reach the most people and ensure a healthy level of foot-traffic and eventual member sign-ups.

Conclusion

Although starting your own basketball gym is a fun, exciting endeavor, it comes with a number of challenges and risks.  However, if you concentrate on providing a superior level of service, attractions, and equipment, then you can succeed.

Be sure to follow our guide and that you setup your business correctly.  In addition, marketing and advertising your business will help you to attract new members and continue growing out your basketball gym in your local area.

Start up ideas/basketball - MicroMentor

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aaron johnson

  • Elk Grove
  • California
  • United States of America

I am looking for ideas to start a small business. I am 30 years old and I have no business experience. I do have experience with basketball. I know the game very well and have played up to the high school level and have coached for the past 10+ years on the recreation level as well as a few years at the middle and high school levels. Recently I was thinking of opening a basketball gym with multiple courts. It would be members only. I would also rent courts out for people who wanted to use them privately. I thought this idea was good but I ran into a few obstacles. One was I don't know if the amount of money from members joining would be enough to cover overhead costs, monthly bills, etc. Also, I have never run a business so I really don't have a clue as to what to do to get it started and what I would need to do to maintain the business. I have other interests but I know most about basketball. I have heard people say that it is best to start a business in a field I am familiar with, but I have been having trouble coming up with a basketball related business. Any input you have will be appreciated. Thank you

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Asked on
Nov. 12, 2013, 8:40 p.m. in Sporting Goods/Recreation/Outdoor

8 answers

Shaw Mead

Mentor
  • Santa Clara
  • California
  • United States of America
Export/Import

Hi Aaron, I love basketball and have played causally 2-3 times per week for many years - however I have never paid to play. You could make a business like this work, but you need a way to draw in your customers. Your main competition would be the local park or church that offers their courts for free. You would need to add value to your service to get paying customers. Unfortunately, the value of renting a gym and paying the overhead costs is greatly reduced because your competition offers this for free. Consider what your competition does not offer that your customers may want. Non professionals enjoy aspects of the game such as competition, exercise and socializing. You may want to consider offering services that cater to these aspects. Perhaps hiring a referee, offer personal training and leading social events for your members off the court. All of these things you may be able to do yourself to start. Don't be afraid to start small, and expect to work very hard!

Nov. 14, 2013, 5:21 p.m.

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aaron johnson

  • Elk Grove
  • California
  • United States of America

Hi, Shaw. I actually have a cousin who was living in Santa Clara. You might have run into him playing basketball. Anyways thanks for the advice. I think the competitive aspect could draw people in. Having referees is something I never considered but might be a good idea because it would reduce arguments and fights. As far as places that offer this for free, I don't know of any. I know of churches that charge for rental services or places such as 24 hour fitness, but no place where people can play indoors for free.

As far as starting small would you think having a place with two courts would be better than having a whole bunch? My way of thinking was I wanted to offer a place where lots of people could play without having to wait. I thought that would attract customers. But I don't know. Maybe I could make it attractive in another way.

My biggest issue with this idea is finding a way to make the profits outweigh the overhead costs such as air conditioning, electricity, office supplies, employees, etc. What do you think?

Nov. 14, 2013, 6:31 p.m.

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johnny lai

Entrepreneur
  • Sunnyvale
  • Texas
  • United States of America
eCommerce/Online Sales

do everything about basket ball that make money, teach it, sell it, rent it. prepare events . meet lots of people. make it better then your other free parks. your targets are fanatics. provide things they cant get anywere eles . after years of doing a good job you might pull in money and make great things happen. work hard focus its a good shot and I don't think you will regret doing it as its a sport you love in the frist place.

Nov. 27, 2013, 12:06 a.m.

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Jake Lastrina

Mentor
+ Entrepreneur
  • Somerville
  • Massachusetts
  • United States of America
Marketing/Advertising
Entertainment/Recreation/Events

Good points here. Keep in mind that there are lots of free things in life BUT people are willing to pay for them anyway! Ex. A library has free books, computers, and movies, but many of us go out and buy a kindle, Surface, and newspapers daily. The key here is to create an experience around you gym that members will buy into.

Free Hugs Vs $2 deluxe Hugs. http://mind-exchange.com/free-hugs-vs-deluxe-hugs-14371 Guess who got more hugs??

Dec. 6, 2013, 2 p.m.

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Simon E

Hi Aaron,

How is it going? Your idea is something that I have considered myself. I am in a similar situation as you and I was wondering what you actually decided to do and how it turned out.

March 5, 2016, 8:22 p.m.

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Samuel Darden

Entrepreneur
  • United States of America
Architecture/Interior Design

Sell basketball apparel with customize items online. You can used social media like facebook to create your business page but if you have enoungh money make your own website. In gacha life game (https://s3.amazonaws.com/gacha-life/index.html) you can get idea in customizing things.

June 30, 2020, 5:02 a.m.

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bel lamy

Entrepreneur
  • Adamsville
  • Arizona
  • United States of America
Architecture/Interior Design

Basketball Business Ideas -Start a catering business ($240K/year) -Start a basketball museum business. -Start a basketball television station business. -Start a basketball one stop shop business. -Start a basketball radio station business. -Start a basketball academy business. -Start a basketball magazine business. @world of solitaire

Jan. 26, 2022, 3:32 a.m.

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Construction of a turnkey basketball court|SportObject

The SportObject company offers its services in the construction of turnkey basketball courts. Trusting the construction of our company, you get a whole range of turnkey services, including design, ground work, laying the base and coating, marking and other construction work. We strictly adhere to the agreed deadlines and provide our clients with a work schedule that indicates the start and completion dates for construction.

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Stages of construction on the example of a football stadium

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The quality of a football field is more than half dependent on the quality of the base! Our base is a monolithic solid single layer, which over the years does not form any fractures, the soil does not go anywhere and remains flat throughout the entire period of operation. Relatively speaking, even if a tractor passes over the base, there will be no tire marks, because everything is solid and dense!

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The backfilling of a football field determines a large part of the playing characteristics. Backfilling is a responsible job, because the presence or absence of drops and bumps, which will eventually be felt during the game, depends on the uniform distribution of sand and crumb rubber on sports grounds. That is, there should be both a flat base and a high-quality pile with an even distribution of backfill under it.

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You can also be sure that we will carry out all the necessary arrangements for their improvement on the site and the adjacent territory.

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The thickness of the foundation pit and the amount of materials that are needed for your foundation, we select depending on the size of the field. We select drainage and other systems based on the regional location (how much precipitation is in your region, what kind of drainage is needed). Additionally, we equip drainage wells, or divert them to the drainage system. Field slopes of several different types depending on site operating conditions.

Preparing the excavation, sand bed, drainage system

The quality of a football field is more than half dependent on the quality of the base! Our base is a monolithic solid single layer, which over the years does not form any fractures, the soil does not go anywhere and remains flat throughout the entire period of operation. Relatively speaking, even if a tractor passes over the base, there will be no tire marks, because everything is solid and dense!

Sequential compaction of base layers

We carry out all types of additional improvement works: we can install a fence for you, pave an asphalt path to something, level the territory, paint walls, curbs, etc. We will perform all the required related work!

Installation of the curbstone

The laying of artificial grass itself is as important as the preparation of the base. When laying the field, an important aspect is gluing the rolls and cutting the markings. Gluing must be done securely. The material in the work requires getting used to, because the two-component glue rolls down after a while and they need to work quickly.

Laying the grass on the prepared base, gluing it and cutting the markings

Be sure to remember: the gate is installed with a safety requirement so that it does not turn over. Therefore, this aspect is given special importance. In this regard, the gate is either concreted or attached to an accompanying fence.

Installation of the goal

The backfilling of a football field determines a large part of the playing characteristics. Backfilling is a responsible job, because the presence or absence of drops and bumps, which will eventually be felt during the game, depends on the uniform distribution of sand and crumb rubber on sports grounds. That is, there should be both a flat base and a high-quality pile with an even distribution of backfill under it.

Raising grass, distributing sand and crumb rubber across the field

We cooperate with the largest manufacturers of stands, fences and other sports equipment in the Russian Federation. Therefore, if necessary, we can supply everything you need to the object at a wholesale price. We install all this equipment, advise in which cases which is better, etc. We can supply many things both in a finished version and make them ourselves on the spot.

Installation of additional equipment (treadmills, jumping pits, safety fences, grandstands)

You can also be sure that we will carry out all the necessary arrangements for their improvement on the site and the adjacent territory.

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Acknowledgments and certificates of conformity

Company "SportObject" offers its services in the field of sports construction. We are engaged in the construction of turnkey basketball courts: we design, draw up design estimates, coordinate the construction, mount the foundation and roof structures, lay bases and coverings, perform finishing work, provide communications and deliver sports equipment. Each of the stages of work is implemented strictly according to the schedule agreed with the client, which allows us to deliver a fully finished project on time.

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  • We travel to any place in Russia;
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The dynamics of basketball matches means high speed, sudden movements and heavy loads on the joints. It is very important that the flooring of the basketball court is both wear-resistant and injury-proof at the same time. For basketball courts we offer: tennis, hard or soft-hard, modular plastic, polyurethane coating and crumb rubber coating.

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In addition to the construction of basketball courts, we take care of the complete set of the object and provide it with all the necessary equipment until it is fully ready for operation. In accordance with the requirements of the customer, any sports equipment can be installed: backboards, rings, stands of a certain capacity, running tracks, a sector for standing long jumps and, of course, various types of fences.

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