While running a youth sports program it is especially important to manage your budget and business plan. It can be easy to get distracted by the fun that comes with being involved in sports. However, just like any other industry, financial planning, tracking and overall responsibility is imperative to success and longevity in participatory sports. Here are six tips to get you started down the road to running a financially organized and viable sports operation.
1. Project Your Expenses
First, calculating the costs you project for the upcoming year will allow you to create a goal that is feasible and check the progress toward that goal throughout the year. Make sure to cover the fixed costs (expenses like rent, salaries, insurance) and variable costs (merchandise materials cost, payment processing fees, other costs that are on a per unit sold basis). Your total costs for the year will be much easier to track if you can segment them into Fixed and Variable. Here is a helpful article that goes into more depth on these costs. This will benefit your youth sports league as well as yourself by sticking to a consistent budget.
2. Project Revenue for the Year
To determine your revenue, you can simply multiply your projected number of registrations by your average registration price. Using the data from previous years is a great way to make the projection for the number of registrants. You get to choose your prices of course. It is important that your price for each registration be greater than your variable costs for each registration or you will be operating at a loss. You can adjust this price throughout the year to match demand, generate more profits, and make sure you are on track to hit or even exceed your goals. Staying organized and making note of progress is essential to making the most of the assets at your disposal.
3. Prepare Taxes Quarterly
Keeping track of your revenues and expenses throughout the year will make filing your taxes much easier when the time comes. Make this a part of your admin team’s quarterly routine so you don’t lose track of taxes you owe, don’t run low on cash flow when you need it, and don’t overload your accountant when taxes are due.
4. Use Software to Track Revenue and Progress Related to Your Forecast
At Playbook, we have revenue tracking capabilities that allow you to view who has paid, who still has an outstanding balance, and the revenues and expenses programs/event spaces generate. Additionally, our software will filter out anyone who has outstanding payments, with messaging tools that can automatically follow-up with reminders to those customers to complete their payment. To learn more about Playbook Sports Software’s financial tracking and reporting tools click here.
5. Reinvest in your Business with Recurring Revenue Streams
If you meet or surpass your registered members goals or profits, there is any interest in growing your business and sports organization, you might look into expanding your organization. As your programs become more popular you're going to need more facilities, coaches, staff, referees, field time, and other fixed costs. However, increasing how much you spend on these costs will not be worth it if you don’t have the demand to match it, so make sure you are ready before you take the leap and reinvest in your program.
6. Test out Fundraising Efforts
A great way to boost revenues in youth sports is by running fundraising campaigns in your local community. These allow you to show what your program's values are, work with other local businesses, and make up some of that revenue if you missed your projections. A couple examples are 5k runs, one-day tournaments, and other activities you can open up to members outside of your organization to contribute and participate in. This is a great way to get to know people in your area and also to get their kids to sign up.
These six useful tips and a bit of math will help you become the manager of a thriving organization that you can trust will be in around a certain financial position or better at any given time. To automate these processes so you can focus more on the sports that got you involved in the first place, check out Playbook Sports Software.