Beach Volleyball Club Running Costs
Expect monthly running costs for a Beach Volleyball Club to start near $55,000 in 2026, driven primarily by $25,833 in wages and $15,000 for the facility lease This guide breaks down the seven core operational expenses, showing how to manage the 75% variable costs (COGS and Marketing) to maintain profitability The model projects hitting breakeven in just one month, but you must secure the initial $834,000 minimum cash buffer needed in February 2026 to manage initial capital expenditure and working capital needs
7 Operational Expenses to Run Beach Volleyball Club
| # | Operating Expense | Expense Category | Description | Min Monthly Amount | Max Monthly Amount |
|---|---|---|---|---|---|
| 1 | Lease & Taxes | Fixed Overhead | The combined monthly fixed cost for the lease ($15,000) and property taxes ($2,500) totals $17,500, requiring a long-term contract review to mitigate inflation risk. | $17,500 | $17,500 |
| 2 | Staff Wages | Fixed Overhead | Payroll is the largest expense at $25,833 per month in 2026, covering 60 FTEs including the Club Manager ($5,833/month) and Head Coach ($5,000/month). | $25,833 | $25,833 |
| 3 | Base Utilities | Fixed Overhead | The fixed base utility cost is $3,000 monthly, but this will fluctuate significantly based on court lighting usage and seasonal HVAC needs, requiring careful monitoring. | $3,000 | $3,000 |
| 4 | Court Maintenance | Variable COGS | Court Maintenance Supplies (20%) and Equipment Replacement (15%) total 35% of revenue, costing about $1,942 monthly based on $55,500 revenue in 2026. | $1,942 | $1,942 |
| 5 | Marketing | Variable Overhead | Marketing and Promotion is budgeted at 50% of revenue, equating to $2,775 per month in 2026, which is crucial for achieving the targeted 400% occupancy rate. | $2,775 | $2,775 |
| 6 | Insurance & Services | Fixed Overhead | Fixed monthly costs for Business Insurance ($1,000), Security Services ($600), and Cleaning Services ($800) total $2,400, essential for liability and facility upkeep. | $2,400 | $2,400 |
| 7 | Software & Fees | Mixed Cost | Software Subscriptions ($500) and Office Supplies ($300) are fixed at $800, plus 20% ($1,110) in variable payment processing fees, totaling $1,910 monthly. | $1,910 | $1,910 |
| Total | All Operating Expenses | $55,360 | $55,360 |
Beach Volleyball Club Financial Model
- 5-Year Financial Projections
- 100% Editable
- Investor-Approved Valuation Models
- MAC/PC Compatible, Fully Unlocked
- No Accounting Or Financial Knowledge
What is the total monthly running budget required to operate the Beach Volleyball Club?
The total monthly running budget, or Year 1 burn rate, for the Beach Volleyball Club is approximately $55,360, derived from summing all operational expenses before factoring in revenue. Understanding this baseline is crucial as you map out What Is The Current Growth Trajectory Of Your Beach Volleyball Club?, because every day you operate below revenue targets, this is the cash you need to cover.
Monthly Cost Drivers
- Payroll accounts for the largest share at $25,833 per month.
- Base fixed overhead is set at $23,700 monthly.
- Variable costs are estimated to be around $5,827.
- The sum of these three components yields the $55,360 total burn.
Cash Runway Check
- This $55,360 figure is the minimum cash needed monthly.
- If revenue misses targets, this burn rate depletes runway fast.
- Focus acquisition efforts on high-margin membership tiers immediately.
- Payroll is the single biggest fixed liability you must cover.
Which recurring cost categories represent the largest financial burden each month?
Payroll expense is clearly the biggest monthly drag on the Beach Volleyball Club, costing $25,833 compared to the $15,000 facility lease, which you can review in detail regarding initial setup costs here: What Is The Estimated Cost To Open Your Beach Volleyball Club?
Payroll Dominates Fixed Costs
- Monthly payroll for 6 Full-Time Equivalents (FTEs) hits $25,833.
- This staff cost is nearly 72% higher than the fixed facility lease payment.
- Managing these 6 roles defintely requires tight scheduling to maintain service levels.
- Staffing levels must scale precisely with league registration volume.
Facility Lease Leverage
- The facility lease represents a fixed overhead of $15,000 monthly.
- This fixed cost demands high court utilization to cover it efficiently.
- To improve contribution margin, focus on increasing court density per zip code.
- If utilization drops below 65%, the payroll-to-revenue ratio gets dangerous fast.
How much working capital or cash buffer is necessary to sustain operations before profitability?
You need a minimum cash buffer of $834,000 ready by February 2026 to cover the initial capital expenditure and sustain operations through the ramp-up period, which is a critical element you should map out clearly, much like understanding What Are The Key Components To Include In Your Beach Volleyball Club Business Plan To Successfully Launch Your Facility?
Initial Cash Burn Drivers
- Total capital expenditure budgeted at $290,000.
- This CAPEX must be funded before operations scale.
- Cash requirement peaks in February 2026.
- This covers facility build-out and sand installation.
Operational Runway Calculation
- Minimum required cash buffer is $834,000.
- This amount ensures operational liquidity during ramp-up.
- It covers the initial $290k investment plus overhead.
- If onboarding takes longer than planned, this buffer shrinks fast.
How will we cover the high fixed costs if the 400% occupancy rate is not met in Year 1?
If the Beach Volleyball Club misses the 350-member threshold needed for $55,500 in monthly revenue, you must immediately cut the 50% marketing budget or postpone hiring the 20 Assistant Coaches to manage fixed overhead. This flexibility is crucial since, as we explore in related scenarios like How Much Does The Owner Make From The Beach Volleyball Club?, revenue stability hinges on hitting those membership targets.
Marketing Spend Adjustment
- Marketing represents 50% of the initial cost structure.
- If membership acquisition lags, stop non-essential campaigns defintely.
- Focus spend only on high-intent channels.
- Track Customer Acquisition Cost (CAC) daily, not weekly.
Controlling Fixed Payroll
- Hiring 20 Assistant Coaches adds significant fixed overhead.
- Delay hiring until you hit 80% of the 350-member goal.
- Use senior coaches for initial clinics instead of new FTEs.
- This protects cash flow while waiting for utilization growth.
Beach Volleyball Club Business Plan
- 30+ Business Plan Pages
- Investor/Bank Ready
- Pre-Written Business Plan
- Customizable in Minutes
- Immediate Access
Key Takeaways
- The projected total monthly running cost for a Beach Volleyball Club in 2026 averages approximately $55,360.
- Payroll ($25,833) and the facility lease ($15,000) constitute the largest recurring financial burdens, totaling nearly $50,000 monthly before variable costs.
- A substantial minimum cash buffer of $834,000 is required upfront to cover initial capital expenditures and ensure operational liquidity during the ramp-up phase.
- Achieving the required 400% occupancy rate is critical to generate the necessary revenue to cover the high fixed overhead and support the projected rapid breakeven timeline.
Running Cost 1 : Facility Lease & Property Taxes
Fixed Facility Commitment
Your fixed facility commitment totals $17,500 monthly, combining the $15,000 lease and $2,500 in property taxes. You must review this long-term contract now to lock in rates and manage future inflation exposure effectively. This baseline cost demands immediate attention.
Fixed Facility Burden
This $17,500 covers the core operating space for the courts. Inputs needed are the lease agreement term, the annual escalation clause percentage, and the current local property tax assessment rate, which sets the $2,500 monthly liability. This cost is static until the contract resets.
- Lease payment: $15,000/month
- Property Taxes: $2,500/month
- Total Fixed Overhead: $17,500
Lease Risk Mitigation
Since this is a fixed cost, direct reduction is hard, but risk management is key. Negotiate longer initial terms, perhaps 5 or 7 years, to delay the next inflationary reset. Avoid short-term leases that expose you to rapid market rate increases next year.
- Push for longer initial terms.
- Cap annual escalators in the contract.
- Ensure tax pass-throughs are clear.
Inflation Checkpoint
If your lease includes annual increases tied to the Consumer Price Index (CPI), you are absorbing inflation risk directly into your baseline overhead. Check the contract date; if renewal approaches before 2027, start renegotiations now to secure better terms before operating costs climb further. That $17,500 will defintely rise otherwise.
Running Cost 2 : Staff Wages & Salaries
Payroll Dominance
Payroll is your biggest hurdle, hitting $25,833 monthly in 2026, representing the largest single operating expense. This massive figure covers 60 FTEs (Full-Time Equivalents) needed to run the club year-round. You need tight control, especially since the Club Manager costs $5,833 and the Head Coach costs $5,000 alone.
Calculating Staff Burn Rate
Estimating this cost requires knowing the exact headcount and their salary bands, not just the total FTE count. The $25,833 total includes specific high-value roles like the Club Manager ($5,833) and Head Coach ($5,000). If you hire fewer people or utilize part-time staff instead of 60 FTEs, this number drops fast.
- Count required roles first.
- Set salary bands by role.
- Factor in payroll taxes.
Controlling Headcount Sprawl
Managing 60 staff means avoiding over-hiring early on; that's a common mistake. Can you defer hiring three non-essential roles until Q3 2026? Cross-train staff to cover multiple functions, reducing reliance on specialized, high-cost hires. If onboarding takes 14+ days, churn risk rises, defintely costing you more in recruiting.
- Use fractional roles initially.
- Tie hiring to revenue milestones.
- Automate scheduling tasks.
Payroll vs. Rent Pressure
Since payroll is the largest expense, every dollar saved here directly boosts operating profit more than cutting variable costs. Compare the $25,833 payroll against the $17,500 facility lease to see where your primary cash flow pressure point is located.
Running Cost 3 : Base Utilities & Services
Utility Baseline Risk
Utilities start at a fixed $3,000 monthly, but you must watch usage closely. Court lighting and seasonal HVAC swings mean this number isn't static, so budget for variance above the baseline.
Cost Inputs
This $3,000 base covers essential services like water, standard electricity, and waste management for the facility. The real cost driver is high-demand equipment. You need historical usage data from the landlord or quotes for projected usage. This cost is a critical component of your fixed overhead before revenue starts flowing. That’s a defintely non-negotiable startup cost.
- Base electric/water: fixed estimate.
- Lighting: high-draw courts.
- HVAC: seasonal swings are big.
Usage Control
Since lighting and HVAC cause fluctuation, control scheduling is your best lever. Avoid running high-intensity lighting during non-peak hours, even if courts are empty. A small operational change here prevents budget overruns. Honestly, managing utilization directly impacts this line item.
- Schedule lighting efficiently.
- Audit HVAC settings seasonally.
- Monitor monthly usage vs. $3k base.
Modeling Variance
If court lighting runs for 14 hours/day during peak league season, expect utility bills to jump well beyond the $3,000 anchor. You need to model the energy draw of your specific lighting array to set accurate variable estimates for your P&L projection.
Running Cost 4 : Court Maintenance COGS
Court Upkeep Cost
Court upkeep is a significant variable cost, totaling 35% of revenue. Based on projected $55,500 monthly revenue in 2026, this maintenance expense hits about $1,942 per month. Watch this closely as court usage drives these costs up.
COGS Breakdown
This cost category bundles two key operational needs: Court Maintenance Supplies at 20% and Equipment Replacement at 15%. To project this $1,942 monthly spend for 2026, you multiply the projected $55,500 revenue by the combined 35% rate. This cost scales directly with play volume.
- Supplies represent 20% of sales.
- Equipment replacement is 15% of sales.
- Calculation: $55,500 x 35% = $1,942.
Managing Maintenance
Since this is tied to revenue, reducing it means managing usage or negotiating better supplier terms. Avoid cheap supplies that increase replacement frequency later on. Track equipment lifespan closely to time large purchases efficiently. Defintely purchase maintenance items in bulk when possible to secure better unit pricing.
- Negotiate bulk discounts for sand treatments.
- Extend equipment life via preventative care.
- Audit supply usage against court hours logged.
Accrual Reality Check
Treating Court Maintenance COGS as purely variable might hide fixed replacement schedules for major items like sand sifting machinery. If you front-load a $10,000 sand replacement every three years, you need to accrue $278 monthly outside this percentage calculation to avoid cash flow surprises.
Running Cost 5 : Marketing & Promotion
Marketing Spend Rule
Your plan allocates 50% of revenue to Marketing and Promotion. In 2026, this means spending $2,775 monthly. This heavy investment isn't optional; it directly funds the aggressive goal of reaching a 400% occupancy rate. You need this spend to drive traffic to your court slots.
Spend Calculation
This $2,775 marketing budget is calculated as 50% of projected 2026 revenue, which is $55,500 that year based on current targets. This line item covers all customer acquisition costs needed to fill your leagues and memberships. If revenue projections shift, this marketing dollar amount shifts too, because it's tied directly to the top line.
- Revenue projection: $55,500 (2026)
- Budget ratio: 50%
- Monthly cost: $2,775
Cut Acquisition Cost
Spending half your revenue on promotion is risky if you can't control customer acquisition cost (CAC). Focus on driving high lifetime value (LTV) through excellent retention, perhaps via the membership model. If you can convert members into organic promoters, you lower the required cash outlay defintely.
- Measure CAC vs LTV closely.
- Prioritize league sign-ups first.
- Use referral bonuses for current players.
Occupancy Link
Hitting 400% occupancy requires aggressive customer flow, justifying the 50% revenue allocation for now. If you see early signs of high organic sign-up rates, you must be ready to dial back this high spend quickly to protect contribution margin.
Running Cost 6 : Insurance, Security, & Cleaning
Facility Safety Costs
These mandatory operational costs total $2,400 per month. This covers your business insurance, necessary security monitoring, and regular cleaning for the sand courts and facility space. This fixed spend must be covered before you make a dollar of profit.
Cost Allocation
These fixed costs are specific line items supporting facility operations. Business Insurance is $1,000 to protect against liability claims from players getting hurt on the sand. Security is $600, and Cleaning Services cost $800 monthly to maintain court quality.
Optimizing Fixed Spend
Since these are fixed, you can't cut them based on revenue, but you can negotiate terms. Always get three quotes for insurance coverage to ensure you aren't overpaying for the required liability limits. A common mistake is skimping on security monitoring, which increases risk exposure.
Overhead Context
This $2,400 is a small part of your total fixed overhead, which is dominated by the $17,500 facility lease. Still, this $2.4k must be earned every month, regardless of league signups or membership renewals. You defintely need this cash flow buffer.
Running Cost 7 : Software & Payment Fees
Total Payment Overhead
Your total monthly cost for essential software and transaction processing is projected at $1,910. This breaks down to $800 in fixed overhead for subscriptions and supplies, plus a variable 20% fee on revenue collected through payments. You need to know this figure to accurately calculate net margin.
Fee Structure Details
This expense category bundles necessary operational software, like scheduling or point-of-sale (POS) systems, with office supplies. The fixed portion is $800 ($500 software + $300 supplies). The variable cost is 20% of gross transaction value, which estimates to $1,110 monthly based on current revenue projections. It’s a relatively small slice of the total operating budget.
- Fixed Software: $500
- Fixed Supplies: $300
- Variable Rate: 20%
Cutting Transaction Drag
Reducing the 20% payment processing fee is key since it scales with sales. Negotiate lower rates if volume hits certain thresholds, or consider offering a slight discount for direct Automated Clearing House (ACH) transfers instead of credit cards. Don't let software sprawl; audit those $500 subscriptions quarterly. You should defintely check if you’re paying for unused seats.
Margin Impact
Since this $1,910 is an operating expense, it directly reduces your contribution margin before covering big fixed costs like the facility lease. If revenue dips, that $1,110 variable fee shrinks, but the $800 fixed overhead remains constant. If onboarding takes 14+ days, churn risk rises, affecting the variable fee basis.
Beach Volleyball Club Investment Pitch Deck
- Professional, Consistent Formatting
- 100% Editable
- Investor-Approved Valuation Models
- Ready to Impress Investors
- Instant Download
Related Blogs
- Startup Costs to Launch a Beach Volleyball Club
- How to Launch a Beach Volleyball Club: Financial Planning and 7 Action Steps
- How to Write a Business Plan for a Beach Volleyball Club: 7 Steps
- 7 Critical KPIs for Your Beach Volleyball Club
- Beach Volleyball Club Owner Income: How Much Can You Earn?
- 7 Strategies to Increase Beach Volleyball Club Profitability
Frequently Asked Questions
Monthly running costs are approximately $55,360 in 2026, with payroll ($25,833) and the facility lease ($15,000) being the dominant expenses