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Of late, indoor baseball facilities have become a popular meeting spot for many young adults. Aside from being a fun activity, many aspiring baseball players may also find it ideal to practice their batting at indoor baseball facilities.
As such, we’ve seen more and more indoor baseball facilities mushrooming nationwide. But as the popularity of indoor baseball facilities continues to soar, you may wonder how much it would cost to build an indoor baseball facility.
Well, depending on the size and construction ideas of your indoor baseball facility, it could cost you between $100,000 to $250,000 as your start-up capital. Do note, however, that this does not include the costs for other managerial and administrative equipment.
Despite a seemingly high number, let’s look at what your investment could cover in building an indoor baseball facility.
Breaking down the cost of an indoor baseball facility
Thanks to the ongoing demand for indoor sporting fun, it’s easy to see why building an indoor baseball facility would come to mind for many entrepreneurs. After all, indoor baseball facilities are not just fun but can see you earning a steady return when done right.
As you’ll want to stand out from the other competitions, your start-up cost to build an indoor baseball facility can rack up to a high number. Here’s a simple break down so you can draw up an estimated budget to build your indoor baseball facility:
Depending on the size, location, and initial building condition of your indoor baseball facility, construction costs may rack up between $60,000 to $180,000. It may be a good idea to discuss what’s included with your contractors to avoid any hidden surprises.
Some contractors may quote you a price that includes building materials and other necessary changes while others may exclude this in their invoice. To control your finances and to avoid going over budget, it’s always better to have your numbers upfront and clear.
When building an indoor baseball facility, your equipment makes for the most important overall investment. As such, you should draw up a budget between $40,000 to $84,000 as start-up capital to invest in the right equipment.
Ideally, these are the equipment that you’ll need when starting an indoor baseball facility:
- Pitching machines
- Netting systems
- Safety gear like hats, elbow pads, and knee pads
- Baseball bats
- Conveyors and other hardware
- Computers with warning lightboxes for individual cages
Once you’ve successfully set up your indoor baseball facility, you’ll want to ensure you prepare for numerous administrative costs. These administrative costs may add up to $10,000 but are often regarded as necessary start-up costs.
- Computer or laptop with internet for guest check-ins and booking
- Business management software systems
- Website creation and software systems
- Online and offline marketing collaterals
Like most businesses, it’s always recommended for you to have valid insurance. This is further amplified by the nature of indoor baseball facilities as your guests may run the risk of hurting themselves by accident.
To receive the best advice on the type of insurance you should consider, you should contact your trusted insurance provider and discuss the costs and coverage they can offer.
Monthly retaining fees
Finally, you’ll have to take your monthly retention fees of the indoor baseball facility into consideration. Expenditures such as staff hiring, rental, and machine maintenance can often build up a large amount, so you’ll have to be prepared to foot the bill when the time comes.
Essentially, these monthly fees can cost between $6,500 to $14,500 a month – depending on the location of your indoor baseball facility and the number of staff you hire.
You could, however, help keep machine maintenance fees lower by ensuring your machines are well cared for and oiled after each day. You should avoid fixing the machines by yourself and only hire qualified professionals as you’ll want to avoid spoiling the machine altogether.
Pros and cons of an indoor baseball facility
Despite the relatively high cost to build an indoor baseball facility, many entrepreneurs have seen positive returns in their business. If you’re still undecided on whether this business is a great idea, here’s are some pros and cons to an indoor baseball facility.
- Indoor baseball facilities are in demand: Many young adults still find indoor baseball facilities to be a fun place to be with their friends and loved ones.
- Indoor baseball facilities are not affected by weather changes: Unlike outdoor sporting facilities, guests can still visit indoor baseball facilities whether rain or shine. This allows you to stay in business, regardless of the weather outside.
- Expensive to run: Despite being in demand, it can be expensive to keep your indoor baseball facility running. With costs such as rental, equipment upkeep, and frequent machine maintenance required, it may be hard to break even in the first years.
- High competition: As indoor baseball facilities continue to be trendy, more and more establishments have mushroomed nationwide. This makes for high competition, so you’ll have to truly stand out to be the indoor baseball facility of choice.
Do I need a big space to start an indoor baseball facility?
On average, you’ll require a space that has a minimum of 80 to 90 feet in length. This is you need enough space to build the batting cage, and batting cages often measure 70 feet at minimum.
Creating an indoor baseball facility that has more empty space allows you to host parties and have other activities running in your business, so you can maximize profitability.
Are indoor baseball facilities profitable?
When run properly, indoor baseball facilities are definitely profitable but may take between a year or two before you can expect returns. This is as the start-up costs are often steep, depending on the location where you decide to open your facility.
Once you’re broken even with your start-up costs, you may expect returns between $40,000 to over $70,000 per annum on your indoor baseball facility investment.