Budgeting for gambling: starting your recreation center

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  • Running Expenses List
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  • How to Value this Business?


Opening and running a recreation center can provide a thriving business opportunity. According to recent data, the global sports and leisure industry has grown significantly. In 2019, it was valued at 5 billion and had an annual growth rate of 5.3%. As more and more people seek to recreate and stay healthy, the leisure center market is expected to continue to grow.

Starting a recreation center involves a variety of start-up costs that need to be considered. These range from building construction to legal and financial planning. Read on to learn more about the cost of starting a recreation center and how to prepare to open one.


Start-up costs

Opening a recreation center involves many initial start-up costs. Depending on the size and scope of the project, costs can range from a few thousand dollars to almost a million. Broadly speaking, start-up costs consist of the following:

Cost Amount (USD)
Construction or rental of the building ,000 – 0,000
Sports facilities and equipment ,000 – 0,000
Recreational facilities and equipment ,000 – 0,000
Information technology (IT) infrastructure and software ,000 – ,000
Marketing and promotional expenses ,000 – ,000
Legal and financial planning fees 0 – ,000
Staff and personnel costs ,000 – 0,000
Organization of licenses and permits 0 – ,500
Insurance and liability costs ,000 – ,000
Total: 3,000 – ,035,000

Construction or rental of the building;

The cost associated with opening a recreation center often depends on whether you plan to build or lease the space. For example, if you decide to build a recreation center from scratch, the cost of constructing the building can range from 5 per square foot on the low end to 0 per square foot or more on the high end depending the size of the building and the quality of the materials used. According to recent estimates, the average cost of building a small recreation center in the United States is about .5 million .

Alternatively, if you decide to rent space for your recreation center, the cost of rent will depend on the size and location of the property. For example, the average monthly rent for a 1,000 square foot retail space in a small town can be as low as 5 , while the same space in a large downtown could cost as much as ,500 . Also, if you plan to rent the space for a longer period, such as 5 years or 10 years, you could often get a significantly reduced rent.

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Regardless of whether you choose to build or lease space, you also need to consider the cost of additional fixtures and fittings, such as:

  • Play equipment and safety surfaces
  • Furniture
  • Technological facilities
  • Lighting
  • Audiovisual equipment
  • Parking lot

The amount you will need to spend on these additional items will vary depending on the type of recreational activities and the size of the facility. All in all, the total cost of starting a recreation center can easily exceed million .

sports facilities and equipment;

The opening of a leisure center requires various equipment in order to have a successful establishment. From basketballs to baseball bats to helmets, the range of equipment needed is vast, which can lead to a high number of upfront costs. The cost to open a recreation center can vary greatly, depending on the types of sports or activities offered.

According to the National Sporting Goods Association, in 2018, estimated retail sales of sports equipment, fitness equipment and supplies, were .6 billion in the United States alone.

Sports Equipment Materials such as wood, nylon, polyurethane, steel, rubber, and foam are often used in sports equipment and can range from ,000 to 0,000. In order to equip properly, the amount of money to spend varies from sport to sport.

The specific cost of purchasing the following items for a sporting event facility depends primarily on the type and amount of equipment needed.

  • fitness equipment
  • sports equipment
  • Locker rooms
  • Security equipment
  • bleachers
  • Score
  • security cameras

The cost of a fitness center can range from ,000 to 0,000 and depends on the type and size of equipment chosen. Buying fitness equipment in bulk is cheaper than buying single pieces separately. Typically, locker rooms, scoreboards, and bleachers range in cost from ,000 to ,000 per installation.

For safety equipment, helmets, masks and padding vary in size, type and quality, and can cost between ,000 to ,000 and largely depends on the type of sports offered. Security cameras and other security products can incur costs between ,000 to ,000 , depending on the type and size of systems purchased.

recreational facilities and equipment;

Opening a recreation center can be a big business venture, providing recreational opportunities for people of all ages. However, as with any business, starting a recreation center comes with a number of associated costs. Depending on the type of facility and the activities you want to offer, the cost of setting up your recreation center can vary greatly.

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The biggest cost associated with opening a recreation center is purchasing the necessary equipment. This can range from basic play items, such as swing sets and slides, to specialized sports and recreational equipment, such as basketball hoops, volleyballs, swimming pools and exercise machines. Depending on the scope of activities you plan to offer, the cost of equipment can range from a few thousand dollars to hundreds of thousands.

You will also need to consider the cost of renting the land or facility space that will house your recreation center. Depending on the size of your installation and your location, this cost can range from a few hundred to several thousand dollars. In some cases, you can even build a custom installation from scratch. This can be a very expensive undertaking, so if you choose to go this route, you need to be sure to take this into account when determining your budget.

In addition to the cost of equipment and facility space, you also need to consider the fees and licenses associated with opening a recreation center. These fees vary by state and municipality, so you should check with your local authorities to determine which fees will apply to you. The costs associated with opening a recreation center can range from a few hundred to a few thousand dollars.

Finally, you should also consider the cost of hiring staff to operate and staff the establishment. Depending on the size and scope of your recreation center, this could range from a few part-time staff to a team of full-time employees. This cost will vary depending on how many staff you need to hire and the salaries you structure for them.

Information technology (IT) infrastructure and software

When launching a recreation center, it is essential to consider the latest information technology (IT) infrastructure and software; This will enable the efficient running of the daily operations of the center. The cost of these IT components can vary widely, but recent statistics have estimated the cost of setting up a complete IT infrastructure and software package at ,000 to 0,000.

When budgeting for IT costs, it is important to consider the cost of hardware, such as computers and servers. Depending on the specific needs of the recreation center, the type of equipment used will vary in both cost and complexity. A basic computer configuration may include a desktop and laptop computer with basic hardware and software packages, while a more advanced configuration may include additional computers and sophisticated server hardware and software.

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Software costs

Software is also an important part of any recreation center’s IT infrastructure. Choosing the right software can be a considerable investment, with popular applications such as Microsoft Office typically costing several thousand dollars. If a recreation center wants to invest in specialized software to better manage the day-to-day operations of the facility (including activities, check-in and payment systems), the costs can increase dramatically, often running into the tens of thousands of dollars. dollars.

Network infrastructure and security

In addition to hardware and software, there are a number of other specific IT costs associated with starting a recreation center. Network infrastructure, such as a router and cables, can cost several thousand dollars. In addition, securing the network with the necessary software, firewalls and authentication measures could cost several thousand additional dollars. Generally speaking, these costs are unavoidable, as the recreation center must have a secure system to properly protect their customers’ information.

Managed IT Services

Finally, many leisure centers choose to outsource the management of their IT infrastructure to a third-party provider. These services operate on a subscription model, costing several hundred to several thousand dollars per year, depending on the scale and complexity of the computing environment. Managed IT services come with a number of benefits, such as technical support, security monitoring, and IT upgrade assistance, among others.

Marketing and promotional expenses

Marketing and promotional expenses are essential elements in launching a leisure center. Advertising and promotion are necessary to generate initial awareness and keep a steady flow of customers. According to Balance Small Business, a few methods of advertising and promotion include email marketing, online marketing, public relations, and direct mail. Additionally, having a website to promote events and programs should also be considered. The cost of these efforts will depend on your budget, but the price for a complete marketing package usually ranges between ,000 and ,000 per month.

It’s important to consider the potential return on your investment (ROI) when allocating your marketing and promotional budget. Before investing in efforts such as website design, advertising and search engine optimization, be sure to understand the target customer and craft detailed plans to attract them. Plus, review successful tactics from other recreation centers in the same market and take advantage of free opportunities like networking and attending local events.

Designing and placing signage and posters, direct mail campaigns to local households, printed materials, promotional items such as apparel and giveaways, working with influencers and creating video content are all potential strategies that should also be taken into account. Engaging in public relations, radio and television also signal your presence in the market. You should also explore advertising opportunities such as paying for search engine ads, developing display and banner ads for websites, and advertising in local newspapers or magazines.

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It’s important to be aware of current trends and move your promotional tactics accordingly. Most people now rely on email and social media for communication, so if your audience is primarily millennials and Gen Z, you need to focus your efforts in that space. Additionally, a combination of traditional and online marketing usually yields the best results.

Legal and financial planning fees;

Opening a recreation center is a big project, with many critical decisions and expenses that need to be considered. Legal and financial planning is very important before launching your recreation center. It’s one of the biggest financial decisions you’ll ever make, and good legal and financial planning can save you from long-term debt and ensure the success of your recreation center in the years to come. come.

The average legal and financial planning costs incurred by those opening a recreation center vary depending on the size and scope of the project. Generally speaking, these expenses include:

  • Legal Fees – You will need to obtain legal counsel to ensure that your business operates within the parameters of local and state laws. Legal assistance can get expensive, but this expense is significant and can even save you money by preventing costly mistakes in the future. Legal fees are usually a few thousand dollars, with additional charges for each hour of legal advice.
  • Accounting Services – Many businesses hire an accountant or invest in accounting software to ensure accurate business accounting. The cost of accounting services or software can range from a few hundred dollars to thousands of dollars, depending on the complexity of the business.
  • Insurance costs – Many recreation centers require insurance for the building, employees, customers and services. Additionally, many recreation centers are required to obtain certain types of insurance as part of their state or local licensing requirements. Insurance costs can vary, but usually vary by a few thousand dollars depending on the coverage you need.

According to the U.S. Census Bureau, the average legal and financial planning expenses associated with opening a recreation center totaled ,000 in 2018. While actual expenses may vary depending on your individual business, it is important understand that these are essential expenses and should be budgeted for before you begin the process of launching your recreation center.

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Personnel and personnel costs;

Staff and personnel costs are one of the main factors to consider when opening and running a recreation center. As a business owner, you will need to hire staff to ensure the safety and enjoyment of your customers, as well as providing them with the services they expect. These costs can range from basic salaries for entry level staff, to salaries for more experienced staff depending on the services you offer.

According to the latest figures from the Bureau of Labor Statistics, the average hourly wage for recreational and fitness workers in the United States is .71 per hour. This means that if you are looking to hire 10 employees at this salary, your staffing costs will be approximately 7,100 per year. For senior workers, such as managers and supervisors, salaries are generally much higher than average. This can range from ,000 to ,000 depending on their roles and experience.

You’ll also need to consider insurance, vacation, and other personnel-related costs that must be paid for by the employer. It is important to keep in mind that you will need to develop a budget to cover the cost of all personnel related expenses, as well as plan for future increases in your personnel costs due to inflation.

Licensing and expenditure authorization;

When launching a recreation center, you should be aware that there can be a number of licensing and permitting expenses that occur along the way. Depending on the type of activities your recreation center will offer and the state or city you are in, you will likely need to obtain special licenses, obtain permits, or both.

It is important to keep in mind that the cost of licensing and permits varies widely, as it is based on city and state laws and regulations that you must comply with. According to the U.S. Bureau of Labor Statistics, in 2019 the average cost of licenses and permits for recreation centers ranged from 0 to ,500, with an average cost of ,500.

Here is a breakdown of some of the costs associated with obtaining the necessary licenses and permits:

  • Determine what type of licenses/permits you need: 0-0
  • Commercial license: – ,000
  • Health permit: 0 to 0
  • Zoning permit: 0 to ,000
  • Fire safety permit: 0 to ,000
  • Insurance: ,000 to ,000
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Additionally, depending on your location, there may be additional costs associated with obtaining permits and licenses, such as legal fees or consultancy fees. It is important to consider these costs when determining the total cost of opening a recreation center.

Insurance and liability costs

Leisure centers often require specialized insurance plans to ensure the safety and well-being of those who enter the premises. These plans, which usually include property and liability insurance, are often priced high.

According to recent statistics, the average cost of property and liability insurance for a recreation center can range from ,000 to ,000 or even more, depending on the size and scope of the center . This is only the price of the actual insurance cover and does not include the cost of any necessary endorsements, additional riders or deductible payments.

Unfortunately, businesses that don’t have adequate insurance coverage can put their customers, their employees, and their own investment at risk. Property and liability insurance can help protect the center in the event of accidents, theft, or natural disasters, not to mention provide a legal defense if the center is sued.

Getting the right coverage for your recreation center depends on a number of factors, including the size of the center, the activities it offers, and the type of equipment used. That’s why it’s important to work with an experienced insurance professional who can offer advice on the best coverage for your specific situation.


Opening a recreation center is an exciting opportunity, but it also requires an upfront financial commitment. You should always seek professional advice early when planning to open a recreation center. It is also important to remember that the cost of starting a recreation center can vary greatly depending on the location, size and scope of the facilities you are looking to open.

The largest expenses associated with starting a recreation center include the cost of constructing or renting buildings (lease or purchase), sports and recreation facilities and equipment, IT infrastructure and software, marketing and promotional expenses, legal and financial planning, personnel costs, licenses and permits, and insurance and liability.

In total, the cost of opening a recreation center can range from as low as ,000 to ,000,000 or more, depending on the size and scope of the project, the number of facilities, and the quality of equipment used.