Dink and Rally Pickleball Club

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Executive Summary

Dink and Rally Pickleball Club is an indoor pickleball facility in North Carolina. We lease a large building and turn it into four climate-controlled courts for memberships, open play, leagues, lessons and clinics, with a small pro shop and snack bar. Our members are players of every age who want to play in any weather and meet other players.

The problem is simple. Pickleball is growing fast, but outdoor courts are crowded and unusable in heat, cold and rain. We offer reliable indoor courts, organized play at every level and lessons for beginners.

Here is what our numbers show. We expect sales of $267,300 in Year 1, growing to $566,840 by Year 5 as we build membership, leagues and lesson programs. We expect a loss of about $4,800 in Year 1 while we build our membership, then a profit from Year 2 (about $14,500), growing to about $68,100 by Year 5.

We need $215,000 in total. That covers $160,000 in startup costs (court surface and lines, nets and lighting, front desk and access systems, the pro shop, the lease deposit, permits and insurance) and a cash cushion for the first months. I am putting in $45,000 of my own money, and I am asking for a $150,000 SBA loan plus $20,000 from an investor or partner.

I am Sandra Whitfield, the owner. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Dink and Rally Pickleball Club will be a limited liability company (LLC) in North Carolina, owned by Sandra Whitfield. An LLC is a business type that generally keeps your home and savings separate from the business's debts and lawsuits, although a lender may still ask for a personal guarantee. A business attorney or the Small Business Development Center (SBDC) can explain how it works in our state.

What we believe. A game for everyone. We keep courts safe, welcome beginners and keep play fair and friendly.

What we offer:
- Memberships. A monthly membership with discounted court time, priority booking and member events.
- Court reservations and open play. Court time by the hour and drop-in open play sessions.
- Leagues, lessons and clinics. Organized play by skill level, and lessons from a head pro.
- Pro shop and snack bar. Paddles, balls, apparel, water and snacks.
- Later, as we grow: tournaments and a second location. The numbers in this plan do not include these.

The space. In Year 1 we will lease about 18,000 square feet of warehouse or flex space with a high ceiling, a flat floor and room for four courts and a lobby. We budget $78,000 a year ($6,500 a month) for rent and utilities, and the plan assumes this grows about 4% a year.

Licenses and insurance. We will register the LLC with the state, get a business license and an EIN (the business tax number from the IRS, free at irs.gov), and ask the city and fire department about zoning, occupancy, exits and any change-of-use permit before I sign a lease. We will carry general liability insurance, property insurance and workers' compensation once we hire, and every member signs a waiver.

Where things stand today. This plan is my starting point. Before I sign a lease or buy equipment, I will count players at local courts, talk with at least 40 players about what they would pay, confirm zoning and permits and line up at least 100 people who say they would join. If the numbers do not match this plan, I will change the plan before I spend money.

Problem & Opportunity

Pickleball players need reliable places to play.

1. Crowded outdoor courts. Waits are long at popular parks.
2. Weather. Heat, cold and rain stop play.
3. Hard to find games at the right level. New players may not know where to start.
4. Few places for lessons. Players want coaching, not just court time.
5. Social play. Players want a place to meet others.

How we will find out if people want this before we spend money. I will count players at local courts, ask at least 40 players what they would pay and ask at least 100 to say in writing that they would join. Our Year 1 plan needs about 102 members on average and about 3,420 court-hours.

Products & Services

What we sell. We have four offerings, each priced simply.

1. Memberships. The plan assumes an average of about $55 per member per month in Year 1, rising to about $63 by Year 5. Supplies and member costs cost about $2 per member-month. We expect about 1,220 member-months in Year 1 (about 102 members on average), growing to about 2,480 by Year 5.
2. Court reservations and open play. The plan assumes about $28 per court-hour in Year 1, rising to about $32, with about $2.50 per court-hour in direct costs. We expect about 3,420 court-hours in Year 1, growing to about 5,350.
3. Leagues, lessons and clinics. The plan assumes about $30 per participant session in Year 1, rising to about $34, with about $8 per session in direct costs. We expect about 1,960 sessions in Year 1, growing to about 4,020.
4. Pro shop and snack bar. The plan assumes about $14 per sale in Year 1, rising to about $16, with about $8 per sale in cost. We expect about 3,260 sales in Year 1, growing to about 6,420. In this plan the snack bar sells no alcohol.

Our prices. A posted price for memberships, court time, leagues and lessons, with member discounts.

How it works for a player:
1. The player books a court online or joins open play.
2. They sign a waiver, check in at the front desk and borrow a paddle if needed.
3. They play, and staff help match players by level.
4. Members get priority booking and event invitations.

Gross margin, explained. "Gross margin" is the share of each sale left after paying for supplies, balls, snacks and pro shop goods. Our plan shows about 80% in Year 1. That money pays the team, rent, insurance and other bills. Team pay is counted separately, under payroll.

Market Analysis

Who will use us:
- Recreational players of all ages.
- Retirees and families who play during the day and on weekends.
- Beginners who want lessons.
- Companies and groups who book courts for events.

Where we will work. Players within about 20 to 25 minutes of the facility.

How we sized the plan. Our Year 1 plan needs about 102 members and about 3,420 court-hours, which means the four courts are busy at peak times but not full. I will check the real numbers by counting players and signing up founding members before spending money.

Season. Winter and summer, when outdoor play is hard, are busy. The numbers show a yearly average.

Competitive Landscape

Other choices players have:
1. Public and park courts, which are free but crowded.
2. Other indoor facilities, which compete on courts and programs.
3. Gyms and clubs that offer pickleball.
4. Tennis clubs that have added courts.

How we will win players: reliable indoor courts, programs for every level, friendly staff and clear prices. These are promises we have to keep, and any competitor could make them too, so we will measure ourselves on them every week.

Marketing & Sales Strategy

How players will find us.
- A founding member offer to the first members who sign up before opening.
- Local pickleball groups, clubs and social media communities.
- A website with online booking and a free Google business listing.
- Free intro clinics for beginners and open houses.
- A referral thank-you for members who bring a friend.

Marketing budget. About $9,000 a year in Year 1 (about $750 a month), growing about 8% a year. The sign, website and grand opening are paid for from startup costs ($9,500).

Operations Plan

How the business runs day to day.

The space. Four courts with sport flooring or court paint, nets, lighting, a front desk and lobby, a pro shop and snack counter, restrooms and storage.

A normal day:
1. Open, check courts, nets and lighting and review bookings and leagues.
2. Staff the front desk, run open play, lessons and leagues and keep courts clean.
3. Close, clean courts and floors and restock the pro shop.

Safety. Courts are kept free of debris, the floor surface is checked for hazards, lighting and exits meet code, a first aid kit and defibrillator are on site, and staff are trained in first aid. Members sign a waiver, we post rules for safe play and we set age rules for children.

Equipment. About $45,000 to start: nets, lines and windscreens, lighting and fans, front desk and access systems, and rental paddles and ball machines. We set aside about $5,000 a year after that to replace and add equipment.

Running costs in Year 1: rent and utilities about $78,000, booking software and card fees about $7,200, marketing about $9,000, insurance about $7,200, court and net maintenance about $6,000, and accounting, licenses and legal about $4,800. That is $112,200 in all.

Payment. Members pay monthly by card, and court time is paid at booking, so what is owed to us is small.

Management & Organization

Who runs the business. Sandra Whitfield, owner and general manager. As owner I will manage the facility, programs and team and handle the money. I plan to pay myself $45,000 a year in salary.

The team. Pay figures include payroll taxes and workers' compensation insurance.
- Front desk and court attendant (part-time): two in Years 1 and 2, three in Years 3 and 4 and four in Year 5, at about $17,000 a year each.
- Head pro (full-time): one starting in Year 2, at about $42,000 a year.
- Facility manager: one starting in Year 3, at about $40,000 a year.

We hire people who are friendly and reliable, train everyone on first aid and safety, and run background checks (with the person's permission and following the law) on coaches who work with children.

People who will help us: a bookkeeper or tax preparer, an insurance agent who understands sports facilities, a business attorney for a one-time review of the lease and waiver, and a free mentor from SCORE or the Small Business Development Center (SBDC).

Milestones Narrative

Our goals and when we plan to reach them.
- Before opening (6 to 9 months ahead): count players, ask at least 40 players what they would pay and line up at least 100 founding members, confirm zoning, occupancy and permits, register the LLC and get an EIN, open a business bank account, get insurance quotes, find a building, have an attorney review the lease and waiver, and plan the build-out. Sign the lease only after the permits are clear and the founding members are in hand.
- Year 1: open with the owner, front desk staff and about 102 members on average, $267,300 in sales and a loss of about $4,800.
- Year 2: hire a head pro and grow leagues, with about 1,720 member-months, $356,950 in sales and a profit of about $14,500.
- Year 3: add a facility manager, with about 2,230 member-months, $472,610 in sales and a profit of about $35,700.
- Year 4: grow lessons and events, with about 2,310 member-months, $509,845 in sales and a profit of about $52,300.
- Year 5: grow to about 2,480 member-months a year with a team of seven, $566,840 in sales and a profit of about $68,100.
Growth depends on signing and keeping members, filling peak hours and running good leagues and lessons, so treat the later years as goals, not promises.

What we check every week: members, court utilization, league and lesson attendance, pro shop sales per visit, reviews, incidents and cash in the bank.

Funding Request

How much we need and how we will use it. Total we are raising: $215,000.

How we got that number. The Funding Need Calculator in this plan adds up three things:
- Startup costs of $160,000, listed item by item in the Startup Costs section: $20,000 for four courts of nets, lines, windscreens and equipment, $14,000 for LED court lighting and fans, $6,000 for front desk, computers, cameras and access system, $5,000 for paddle rental stock, ball machines and lesson equipment, $48,000 for court surface, line painting and flooring, $22,000 for restrooms, lobby and lighting improvements, $9,000 for opening pro shop and snack stock, $14,000 for lease deposit and first month of rent, $1,800 for business license and local permits, $6,000 for legal, waiver and accounting setup, $9,500 for sign, website and grand opening, and $4,700 for first insurance payment.
- A cash cushion of about $47,800: about 3 months of running costs. Our cash stays above zero in every year of the plan, but lenders still want a cushion in the bank for slow weeks and surprises. They call this "working capital."
- Together that comes to about $207,800, rounded up to the nearest $500: $208,000.
We are raising $7,000 more than that, $215,000 in all, to leave extra room for loan payments in the first years and for rent before the courts are busy.

Where the money comes from:
- My own money: $45,000.
- Amount requested as a loan: $150,000.
- From an investor or partner: $20,000.

Kind of funding we are looking for. An SBA 7(a) small loan through a local bank or community lender, plus investor or partner money. Investor or partner money is not paid back with interest, but the person gets a share of the business. A family member, a friend, a local investor or a business partner could fill this part. Put any agreement in writing.

How we will pay it back. We expect a loss of about $4,800 in Year 1 while we build our membership, then a profit from Year 2 (about $14,500), growing to about $68,100 by Year 5. With this funding, the business has money in the bank at the end of every year of the plan, and the lowest year-end balance is about $159,500, at the end of Year 1. The loan is planned at 12.75% interest over 10 years, so payments of about $2,218 a month (about $26,611 a year) are already included in our cash flow. We chose 12.75% as a cautious planning rate. Ask the lender for the real rate, which may be lower or higher.

What we are offering the lender: our equipment as collateral (something the lender can claim if the loan is not repaid) and my personal guarantee (my promise to repay from my own money if the business cannot).

A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan:
- Phase 1: start with two courts in a smaller leased space or a community center rental (check the rules), with a simple membership and open play. Startup can be roughly $40,000 to $70,000 for courts, nets, insurance and a website. Get your own quotes.
- Phase 2: once the courts are busy at peak times, lease a larger building and follow this plan.
To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match.

All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume (one page is fine) and any licenses or training certificates.
- A personal financial statement (a list of what you own and what you owe; lenders usually provide a form).
- Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov).
- Proof of insurance, or a quote.
- Your waiver, safety plan and membership terms.
- The city and fire department's written answers on zoning and permits.
- A letter or quote for the building, and the lease once you have it.
- Quotes for the court surface and lighting.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- Memberships: about $55 per member-month in Year 1, rising to $63; about $2 per member-month in direct costs, rising to $2.40; about 1,220 member-months in Year 1, growing to 2,480.
- Court Reservations and Open Play: about $28 per court-hour in Year 1, rising to $32; about $2.50 per court-hour in direct costs, rising to $2.90; about 3,420 court-hours in Year 1, growing to 5,350.
- Leagues, Lessons and Clinics: about $30 per participant session in Year 1, rising to $34; about $8 per participant session in direct costs, rising to $9.20; about 1,960 participant sessions in Year 1, growing to 4,020.
- Pro Shop and Snack Sales: about $14 per sale in Year 1, rising to $16; about $8 per sale in direct costs, rising to $9.20; about 3,260 sales in Year 1, growing to 6,420.
- Pay: Owner / General Manager $45,000 (1/1/1/1/1); Front Desk and Court Attendant (part-time) $17,000 (2/2/3/3/4); Head Pro (full-time) $42,000 (0/1/1/1/1); Facility Manager $40,000 (0/0/1/1/1). The numbers in parentheses are how many people we plan to have in Years 1 through 5. Pay figures are yearly and include payroll taxes and workers' compensation.
- Other yearly costs in Year 1: facility rent & utilities $78,000, booking software & card fees $7,200, marketing $9,000, business insurance $7,200, court and net maintenance and supplies $6,000, and accounting, licenses & legal $4,800. These grow between 4% and 12% a year as the business grows.
- Members pay monthly by card and court time is paid at booking. At the end of Year 1 about $8,019 (3% of Year 1 sales) is card payments still on the way to our bank.
- Tax rate: 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs