TENNIS CLUB BUSINESS PLAN

I. Executive Summary

Company Description

Rally House draws its name from the rally in tennis and the idea of a communal gathering place; it signals movement, connection, and play. We operate in the recreational sports and hospitality sector as a suburban, member-focused racquet club opening in 2026. Our primary offerings are professional-grade tennis courts, membership plans built on a recurring revenue model, tech-enabled booking and performance tracking, private and group coaching, on-site retail, and community events. One line: a modern, tech-forward tennis club for players who want consistent court quality and a social hub.

We run daily court operations, coach programs, retail sales, and monthly competitive and social events, all coordinated via a custom app and on-site staff. What sets us apart is our combination of accessible pricing, higher-quality courts than public facilities, and a digital member experience that tracks progress and simplifies booking. Target customers are suburban adults 25–65, families with juniors, and competitive amateurs. Short-term goals: launch in Q2 2026 and reach initial membership traction. Long-term goals: expand to two additional suburban markets within five years and diversify revenue with regional tournaments and branded merchandise. One line: build a sustainable community hub that turns players into recurring members and brand advocates.

Problem

Suburban Charlotte players face a clear service gap: public courts are overcrowded and poorly maintained, while private clubs impose high initiation fees and long commitments. As a result, players cannot secure consistent practice time, face financial barriers to regular play, and lack a reliable community "third place" that serves both competitive and beginner players.

Players also lack digital tools and structured coaching pathways: there is no easy digital booking, no performance-tracking, and limited opportunities for mixed-skill community play. This leaves steady demand underserved and creates an opening for a modern, community-focused racquet club.

Solution

Suburban players face overcrowded public courts and private clubs that are costly and inflexible. We will open a state-of-the-art racquet facility in 2026 that combines certified coaching, organized leagues, high-frequency social mixers, tiered memberships, pristine courts with professional-grade lighting, and a modern clubhouse with pro-shop and luxury locker rooms to give active adults and families a reliable, tech-forward home for play and progress.

Members get coaching, leagues, mixers, and a modern clubhouse. Accessible, competitive, and social racquet play under one roof.

Mission Statement

Our mission is to build a vibrant, inclusive community around tennis by providing exceptional facilities, professional coaching, and modern, flexible access so players of all levels improve their game, form lasting social connections, and enjoy a world-class racquet sports experience. We commit to outstanding customer service, equitable programming, and continuous facility standards that keep the club the premier destination for tennis in our market.

Key Success Factors

Success hinges on facility quality, experienced management, efficient marketing, hitting breakeven by Sept 2027, and a recurring membership model.

• High-quality facility: $450,000 court surfacing plus $120,000 lighting and infrastructure.
• Experienced leadership: $65,000 General Manager and $55,000 Head Coach driving operations and programming.
• Marketing efficiency: Maintain $45,000+ annual budget while lowering CAC from $150 to $120.
• Financial milestone: Reach breakeven by September 2027.
• Recurring revenue: Tiered memberships that stabilize cash flow and support growth.

Financial Summary

Brief summary of key financial outcomes for the executive summary.

The project requires an initial CapEx of $760,000 and a total funding requirement of $1.74 million; breakeven is projected in Sep‑2027 (21 months) with a total payback of 53 months. The model shows early negative EBITDA and an overall IRR of 0% and ROE of -3.05%.

Despite early losses, the club builds a significant asset base and a growing recurring revenue mix.

Funding Requirements

The project requires $1,740,000 in peak funding—$760,000 initial CapEx and a $980,000 working capital reserve—with a projected 21‑month path to breakeven (September 2027) and a 53‑month total payback; revenue will split across memberships, coaching (35–50%), and pro‑shop sales (15–25%), and EBITDA is forecast to improve from -$410,000 in Year 1 to -$276,000 in Year 5.