CIA -3

FEASIBILTY ANALYSIS OF INDOOR SPORTS COMPLEX

Entrepreneurship

Masters of Administration

Submitted by:
P. Neha Sai-2128145

Under the Guidance of

DR. Elangovan

School of Business and Management

CHRIST (Deemed to be) University, Bangalore

JANUARY,2023

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 1. Industry Analysis:

Sports are more than just competitive challenges or engaging activities. For many people,
participating in sports in a safe, clean, and controlled setting is an essential aspect of their
daily lives. Adults get exercise, stress alleviation, and excitement from recreational pick-up
games and club leagues. Children take the bat and swing for the fences, hoping to realize
their ambition to play in significant companies one day. Sports are a priority, and the
architecture of an indoor sports facility must reflect the emphasis that the children, women,
and men have on their accomplishments.

The indoor sports industry includes various businesses, such as indoor sports facilities,
gymnasiums, fitness centers, and indoor sports equipment manufacturers. The industry has
seen steady growth in recent years, driven by increased participation in organized sports,
interest in fitness and wellness, and the popularity of indoor sports and activities. However,
the industry has also been affected by economic downturns and increased competition from
other forms of entertainment. Some key trends in the industry include the increased use of
technology to enhance the sports experience, the growing popularity of alternative forms of
indoor sports such as rock climbing and trampoline parks, and the growing emphasis on
fitness and wellness.

2. Market Analysis:

A market study often seeks out the intersection of supply and demand for a specific price
point of a good or service. A product's marketability is assessed through the survey to see if it
will meet specified financial or social goals. It is an ongoing procedure that provides crucial
information. A property is predeveloped, acquired, developed, marketed, and operated while
data is gathered. The objective is to lower risks while boosting opportunities for lenders,
investors, developers, and other public sector participants.

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A market analysis is carried out early in the process, whereas a feasibility analysis is carried
out after the initial project design and design refinement. The feasibility study will aid the
investor and possible lender in deciding whether or not to proceed with the project.

An indoor sports complex would typically involve assessing the current and potential demand
for the complex's services and identifying the main competitors in the market. The following
are some key elements that be considered in a market analysis of an indoor sports complex:

Market size and growth: This would involve assessing the size of the indoor sports
complexes' overall market and the rate at which it is growing. Factors influencing market size
and growth include population demographics, income levels, and trends in sports
participation.
Target market: This would involve identifying the specific segments of the population that
are most likely to use the complex's services, such as youth sports teams, adult recreational
sports leagues, or fitness enthusiasts.
Competitive landscape: This would involve identifying the main competitors in the market,
such as other indoor sports complexes, community centres, gyms, and youth sports
organizations. It would also include assessing the strengths and weaknesses of these
competitors and how they compare to the complex in question.
Marketing and sales strategy: This would involve developing a plan for promoting the
complex's services and reaching potential customers and assessing the cost-effectiveness of
different marketing and sales channels.
SWOT Analysis:
A SWOT analysis is a tool used to evaluate the strengths, weaknesses, opportunities, and
threats of a business or organization. Here is an example of how a SWOT analysis for an
indoor sports complex might look:
Strengths:
 Extensive, modern facilities with state-of-the-art equipment
 Wide range of sports and activities offered
 Convenient location
 Strong reputation in the community
 Strong relationships with local sports teams and organizations
 High-quality, experienced staff
Weaknesses:
 High operating costs

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  Limited parking or lack of public transportation access
 Limited hours of operation
 Dependence on weather conditions
 Limited revenue streams
 Lack of a solid online presence or social media presence
Opportunities:
 Expansion into new sports or activities
 Development of new revenue streams such as memberships, sponsorship, or events
 Partnership with local schools or community organizations
 Expansion into new locations
 Development of an online presence or social media strategy
 Offering virtual classes and training
Threats:
 Competition from other indoor sports complexes or recreation centres
 Changes in government regulations
 Economic downturns
 Weather-related closures or cancellations
 Potential for injuries or accidents
 Changes in consumer preferences
Conducting a SWOT analysis can help the complex management to identify the internal and
external factors that could impact the success of the indoor sports complex and develop
strategies to address the weaknesses and capitalize on the strengths, opportunities, and
threats.
Financial analysis: This would involve assessing the costs and revenue potential of the
complex, in order to develop a projected financial performance for the complex and
determine its potential profitability.
Operations and management: This would involve analysing the complex's operations and
management structure, including staffing, maintenance, and customer service, in order to
identify areas for improvement.
Overall, a market analysis would help identify the indoor sports complex's market potential,
competition, and critical success factors, to develop a strategic plan to address the challenges
and capitalize on the opportunities.
3. Market size:

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The market size for indoor sports complexes can vary depending on many factors, including
location, sports and activities offered, and the target market. Some key considerations for
assessing the market size of indoor sports complexes include the following:
 Population and demographics: The size of the people in a given area can
significantly impact the potential market size for an indoor sports complex. Age,
income, and education are essential indicators of the possible market size.
 Sports participation rates: The number of people participating in sports or fitness
activities in a given area can also be a vital indicator of the potential market size for
an indoor sports complex. The information will get from local sports organizations,
schools, or government data.
 Competition: The number and types of competitors in the market, including other
indoor sports complexes, community centres, gyms, and youth sports organizations,
can also impact the potential market size for an indoor sports complex.
 Market trends: The trends in sports participation and the demand for indoor sports
facilities can also impact the market size for indoor sports complexes. For example, if
there is a growing trend in indoor sports participation, it could indicate an increased
potential market size.
It's important to note that market size can be affected by multiple factors, such as population
growth, urbanization, income level, and access to facilities, as well as by the specific type of
sports the complex offers. Additionally, the market size can be affected by the COVID-19
pandemic, as it could affect the demand for indoor sports, depending on the location,
restrictions, and safety measures.
It's challenging to provide an exact market size of indoor sports complexes, as it can vary
greatly depending on the location and the factors mentioned above. However, conducting
market research and gathering data from different sources can help to estimate the market
size and the potential market share of the indoor sports complex.
4. Market Competitors:
Indoor sports complexes may have a variety of competitors, depending on the location and
the types of sports and activities offered at the complex. Some potential competitors of indoor
sports complexes include:
 Other indoor sports complexes in the same city or region
 Outdoor sports complexes and parks that offer similar activities
 Community centres or recreation centres that offer sports and fitness activities.
 Gyms or fitness centres that offer sports-specific training

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  Sports teams or organizations that operate their facilities
 Youth sports organizations that offer training and leagues
 Other types of entertainment venues such as movie theatres, bowling alleys, and
trampoline parks. It's also worth noting that indoor sports complexes may have non-
traditional competitors, such as virtual reality sports or online sports training
platforms.
5. Feasibility Analysis of the Indoor Sports Complex:
Through this approach, we evaluate the company's viability. To decide whether it is
worthwhile to pursue the business plan process, an initial assessment of the business and
ideating are required. By enabling an entrepreneur to ascertain whether a business proposal is
possible or viable, feasibility analysis helps to lessen the risk of launching a business (to
some extent). Four types of feasibility analysis exist. They are:
i. Product /Service Feasibility Analysis
ii. Industry/Market Feasibility Analysis
iii. Organisational Feasibility Analysis
iv. Financial Feasibility Analysis
Product/Service Feasibility Analysis:
A product feasibility analysis for an indoor complex would involve assessing its potential
demand and its ability to generate revenue. Factors to consider may include the location and
accessibility of the complex, the range of amenities and services offered, and the competition
in the surrounding area. Additionally, an analysis of the costs associated with developing and
operating the complex would be necessary to determine its overall financial viability. This
information could be gathered through market research, including surveys, competitor
analysis, and cost-benefit analysis.
A service feasibility analysis for an indoor complex would involve assessing the potential
demand for the services offered and the ability to generate revenue. Factors to consider may
include the location and accessibility of the complex, the range of the services provided, and
the competition in the surrounding area. Additionally, an analysis of the costs associated with
delivering the benefits would be necessary to determine the overall financial viability of the
service. This information could be gathered through market research, including surveys,
competitor analysis, and cost-benefit analysis. It is also essential to consider the target market
and if the services align with the needs and preferences of that market.

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A product/service feasibility study is a market research technique that gives predictive
analytics to assist marketers, salespeople, and product developers in deciding what to do next.
It has two components.

a) Product/Service Desirability:
From extensive research and based on the secondary data, there is a high chance of the need
for desirability for service provided to all age groups of people in the district, which helps
them stay mentally and physically strong. Hence the proposed business idea is viable to
proceed.
b) Product/Service Demand:
When analysing demand, the district's population's demographics and the effects of its size
were taken into account. Indoor sports are essential to service the expanding population of
school-aged children, older seniors, and young people (18-24 years) who could find indoor
group exercise or social sports more practical or appealing than outside sports.
This process has been carried out for the past two years. During this process, my team and I
talked with people in the particular district where we wanted to start. Everyone had a positive
approach to our idea as our business will provide great entertainment and many other
advantages to all age groups irrespective of gender. So, concerning demand in the market, my
business plan has a great demand which is viable to proceed.
Industry/Market Feasibility Analysis:
The sports industry is evergreen with an increase in demand in public. Recently India won
medals in the Olympic 2021, which created interest and trust in the citizens of India that one
can select their carrier in sports. This is one major building block for my business plan.
a) Industry Attractiveness:
The industry attractiveness of indoor sports complexes can be evaluated by analysing factors
such as market size, growth rate, profitability, and competition.
 Market size: The market for indoor sports complexes can be measured by the number
of facilities and users. A large market size can indicate a high revenue potential.
 Growth rate: The market's growth rate can be measured by the increase in the number
of facilities and users over time. A high growth rate can indicate a high potential for
future revenue.

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  Profitability: The profitability of the market can be measured by the operating margin
of indoor sports complexes. A high operating margin can indicate a high potential for
profitability.
 Competition: The level of competition in the market can be measured by the number
of competitors and their market share. A high level of competition can make it more
challenging to succeed in the market, but it can also indicate a significant potential
need.

 The sports industry never gets old and evolve new aspect by improving with the
trends will continually be growing rather than shrinking

 Sports is compulsory to all age group people, so I consider this as a must-have in

everyone life

 This is not dependent on the historical price. Instead, I plan a dynamic price system
that varies concerning sport and time a customer spends playing each. So that I can
build customer trust, achieve their satisfaction and remain profitable.

Overall, if the market size is large, growth rate is high, profitability is good, and competition
level is moderate, the industry would be considered as attractive.

b) Target Market Attractiveness:

The target market attractiveness of an indoor sports complex can be evaluated by analysing
several factors such as market size, growth rate, purchasing power, and preferences.
 Market size: The size of the target market can be measured by the number of people
who fit the target demographic and are interested in the complex's services. A large
market size can indicate a high revenue potential.
 Growth rate: The growth rate of the target market can be measured by the increase in
the number of people fitting the target demographic over time. A high growth rate can
indicate a high potential for future revenue.
 Purchasing power: The purchasing power of the target market can be measured by the
target demographic's average income and spending habits. A high purchasing power
can indicate a high revenue potential.
 Preferences: Understanding the importance of the target market, such as their
interests, hobbies, and lifestyle, will help to determine the type of services, activities,
and facilities that they are most likely to use and pay for.

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  India is home to 65% of the young population, and sports is the domain that no one
says no to. As mentioned before, I plan to provide to all age groups; however, the
young population is more in India, especially in rural areas.

 To get relaxation and spend time with the family members and their children’s adults
and old age people are my second target customers who are more attracted to the
sports.
Overall, if the market size is large, growth rate is high, purchasing power is good, and the
preferences align with the services offered, the target market would be considered as
attractive.
Organisational Feasibility Analysis:
An organizational feasibility analysis for an indoor sports complex would involve assessing
the ability of the organization to develop and operate the complex successfully. Factors to
consider may include:
 Resources: The organization must have the necessary resources, such as financial,
personnel, and equipment, to develop and operate the complex.
 Experience: The organization must have the necessary experience, skills, and
knowledge to develop and operate the complex. It can be evaluated by looking at the
organization's experience managing similar projects or facilities.
 Capabilities: The organization must have the necessary qualifications to develop and
operate the complex, such as marketing, management, and operations.
 Reputation: The organisation's reputation within the community and industry can
affect the success of the complex. A good reputation can help to attract customers and
partners, while a poor reputation can be detrimental.
 Legal and regulatory requirements: The organization must comply with all legal and
regulatory requirements and have the necessary licenses and permits to develop and
operate the complex.
a) Management Feasibility:
A group of friends who are skilled in different domains are planning to start this business
plan. Construction-wise, we have a civil engineer, an electric engineer who looks into power
connections for the building. For government permissions, we have a friend working in the
collector office. Concerning management, we have a couple of them. We have a strong and
passionate team that works collectively to make this possible.
b) Resource Efficiency:

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Here we have to allot a few resources that are required for the perfect functioning of the
business plan, and those are discussed as follows:
 Workforce: There should be proper workforce distribution required to provide
customer services.
 Resource maintained – There should be a good operations team handling and
providing services to the customers. Proper availability of kits and other required
facilities to the customers.
 Support personnel – There should be a support team that handles the expertise domain
in various areas, providing techniques and training required by the customers.
Financial Feasibility Analysis:
A feasibility analysis for an indoor sports complex would involve evaluating the technical,
economic, organizational, and market factors that would impact the project's success. This
can include:
 Technical feasibility: Assessing the ability to design and construct the complex within
the budget and timeline.
 Economic feasibility: Evaluating the project's financial viability, including projected
costs and revenue, and determining if the project is expected to generate enough
income to cover expenses and make a profit.
 Organizational feasibility: Determining if the organization has the resources,
experience, capabilities, reputation, and legal compliance necessary to develop and
operate the complex successfully.
 Market feasibility: Assessing the potential demand for the complex and its services
and the competitive landscape in the area.
This information can be gathered through market research, financial analysis, and technical
evaluations. A comprehensive feasibility analysis will weigh all the factors and will provide a
clear picture of the complexity and its potential for success.
a) Field Rental:
For sports complexes, field rental money is a crucial source of revenue. Depending on the
user, the number of fields, and the services that may be required, rental prices may be
calculated hourly per game. Here we plan to offer membership (monthly, quarterly, half-
yearly, annually) to our customers.
b) Salary and Wages:

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Employment patterns, especially full-time staffing arrangements, differ dramatically amongst
facilities. On the other hand, salaries and wages might be a significant expense. A variety of
reasons contribute to the disparity in staffing numbers. One is the management concept of
employing full-time or part-time event-related people. Overall, we estimate to have four
people initially admission staff, training staff, cleaning staff.

c) The economies of the business:

The economics of operating a sports indoor complex can vary depending on many factors,
such as the size and location of the facility, the types of sports and events offered, and the
target market. Some key factors that can affect the financial performance of a sports indoor
complex include:
 Revenue streams: The primary sources of revenue for an indoor sports complex are
typically rental income from sports teams and organizations that use the facility, as
well as revenue from concessions, merchandise sales, and other ancillary services.
 Operating costs: The costs of operating a sports indoor complex can include things
like utilities, maintenance, staffing, and insurance.
 Marketing and promotion: To attract customers, sports indoor complex operators must
invest in marketing and advertising to build awareness and generate interest in the
facility.
 Competition: Operators of sports indoor complexes must also consider the level of
competition in the area from other similar facilities.
Overall, the economics of operating a sports indoor complex can be challenging, but with a
well-designed facility, effective management and a clear target market, it can be a profitable
business.
The total amount of cash needed for operation of the business plan is as follows. As this is to
provide sports to all age groups, there should be at least a start amount of about 30,00000
INR
required. The breakup of provided cash is discussed below.

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 ASSETS
LAND 2000000
EQUIPMENT 500000
TOTAL FIXED ASSETS 2500000
STOCK OR INVENTORY 500000
CASH 1300000
TOTAL CURRENT ASSETS 1800000
TOTAL ASSETS 4300000
LIABILITIES& EQUITY
CAPITAL 3000000
LIABILITIES
SALARIES & WAGES 200000
LONG TERM DEBT 1000000
MARKETING 100000
TOTAL LIABILITIES AND EQUITY 4300000

6. Conclusion:

Constructing the indoor sports complex can be the viable business idea, but it depends on the
various factors such as the availability of the resources, the regulation of the place for the
handing and also the demand of the indoor stadium and also availability of the interested
people who are willing to play the indoor sports. It can be providing a source of income for
the individuals and also for the governments or for the companies who will be contracting
with us, and it will also help in the bringing the new talented people and the indoor stadiums
will help them to become the champions and they can bring the name for the India as well as
to the particular village. However, its important to note that proper safety measures need to
take during the construction of the indoor stadium like we need to consider each people life
who are involving or help to build the indoor stadium. Additionally, its important to note that
we are entering to the competitive field so it important to conduct the feasibility analysis to
develop this business plan.

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