A private members club business plan needs to describe in detail the services you will offer to the membership base and show the potential profitability of the club based on likely enrollment and membership renewal. Private members clubs can revolve around a professional affiliation (i.e., a lawyers club), a shared activity base (anything from Elks to squash), or another commonality that will unite members. They are most common in larger cities but have taken hold in some form or another nationwide. For your private members club business plan, you'll want to focus on the service first, but also assess the market to prove the opportunity is viable:
• How many people live within the metropolitan area?
• Approximately how many will fit the profile you envision for membership?
• Does the club fulfill a market need?
• Are there industry trends or important data to support your claims?
• Are you competing with any other clubs?
The business plan will also require a pro forma financial model, most likely a five-year projection that shows revenues and expenses and ultimately estimates the potential profitability for your investor partners. The set of financials required for a capital raise typically includes cash flow, profit and loss, revenue forecast, balance sheet, break-even point, sensitivity analysis, and a monthly breakdown for year one. If you need assistance with the pro forma or want someone else to do the research, choose MasterPlans. Since 2002 we have been preparing complete financial models for a wide variety of private clubs. Call today to speak with a consultant: (877) 453-2011.
