Starting a Pickleball Business: Profit, Costs, & How to Invest

Pickleball is one of the fastest-growing sports in the U.S., according to media reports, including reports from CNBC and from Yahoo!Life. With millions playing and the sport in its adolescence, many local markets are primed and ready to get their first indoor pickleball facilities. Ambitious entrepreneurs like you are considering what it will take to get in on the ground floor of this new, growing business opportunity. Let’s take a look at what it takes to start a pickleball business.

Costs and Potential Profit

The initial costs of a pickleball business vary significantly based on several factors, including the number of courts and whether the facility is indoor or outdoor. For outdoor courts, sports facility management company The Sports Facilities Companies said in an August 2023 report the average construction cost ranges between $28,000 and $37,500 per court. This estimate is a baseline and can fluctuate depending on the location, materials used, and court specifications.

When building an indoor facility, there are additional expenses to consider. You must either construct a new structure or adapt a pre-existing one, both of which can substantially increase initial investment costs. Additionally, indoor facilities often require climate control systems to maintain a comfortable playing environment year-round, adding to the expense.

Beyond basic construction or renovation, there are other cost factors, many of them depending on the amenities you include to enhance the customer experience and potentially generate additional revenue streams. Such amenities might include concessions, spectator seating, locker rooms, a pro shop, pickleball equipment rental services, and rest areas.

The potential profitability of an indoor pickleball business is influenced by various factors, particularly size. Smaller facilities generally have lower operating expenses but tend to generate lower profits. Conversely, larger facilities, while more expensive to run, often bring in higher revenue, due to the capacity for more courts, larger events, and additional services such as leagues, tournaments, and coaching clinics.

According to Pickleball Business Advisors founders Bill and John Pryor, for small facilities, the net operating profit margin typically ranges between 20%-35%, reflecting their efficient operations and focused service offering. Larger facilities usually see a net operating profit margin of around 15%-20%.

The Right Parts

A good pickleball business needs a few key features. The first and perhaps most critical feature is a suitable location. Your indoor pickleball facility, whether it’s an independent business or a pickleball franchise like The Pickle Pad, should have enough space to accommodate the standard pickleball court dimensions, which include an overall area of 30 feet in width by 60 feet in length. This measurement includes the open space around the court, while the court itself occupies a 20-foot by 44-foot space. Depending on the number of courts you plan to have and the additional amenities you wish to offer, the total space required can be substantial.

When it comes to court construction, a polyurethane surface is often the best choice, providing the right balance of grip and bounce, enhancing the playing experience. Additionally, each court requires a net that’s 34 inches tall at the center. It’s also important to install additional netting or fencing between courts to manage stray balls and ensure a smooth playing experience for your customers.

Pickleball requires very little special equipment to play, mainly just paddles and balls. As a business owner, you need to decide whether to provide this equipment or require customers to bring their own. Offering rental or complimentary equipment can be an added convenience for your customers, potentially attracting more players, especially beginners or casual players who might not own their equipment.

The scope of your indoor pickleball business can extend beyond just the courts. Depending on the amenities you decide to offer, you might need additional equipment and facilities. This could include seating for spectators, lockers for players, a retail area for selling equipment, and a commercial kitchen for concessions or a restaurant. Maintaining the facility also requires a stock of cleaning supplies to keep the courts and amenities in top condition. Lastly, a reliable billing/point-of-sale system is essential for managing memberships, court bookings, and sales transactions efficiently.

The Journey to Business Ownership

Opening a pickleball business requires you go through many of the same steps as any other business. These steps, in roughly this order, are as follows:

1. Assess your suitability: Determine whether pickleball aligns with your interests, skills, and goals. Understanding the sport and its market is essential.
2. Develop a business plan: A comprehensive business plan should outline your vision, target market, financial projections, and strategies for growth and sustainability.
3. Develop your branding: Your business name and brand look should create an identity that resonates with your target audience.
4. Make a financial plan: Determine your initial investment and ongoing expenses, including court construction, equipment, staffing, marketing, and operational costs.
5. Secure capital: Gather the necessary funding through personal savings, loans, or investors.
6. Research markets: Understand your potential market, including local demand for pickleball and competition analysis, to guide your strategic decisions.
7. Find a location: The right location is key. It should be accessible and have enough space to accommodate your facilities.
8. Fulfill legal requirements: Secure the necessary permits and licenses to operate legally and avoid future complications.
9. Purchase equipment, hire staff: Quality equipment and a competent, enthusiastic team are vital for a successful operation.
10. Hold your grand opening: Plan an opening event to create buzz and attract initial customers.

You might consider starting a business on your own. As an independent business owner, you’ll handle all responsibilities, from operational strategies to daily management. This path offers professional freedom but requires a hands-on approach and possibly a steeper learning curve.

Alternatively, franchising can simplify the process. A pickleball franchise like The Pickle Pad provides:

• A proven business model and established brand recognition
• Training in business operations and management specific to pickleball facilities
• Access to large-scale marketing and advertising campaigns
• Assistance in selecting and equipping a suitable location
• Purchasing power for equipment and supplies
• Ongoing support from the franchisor, which can be invaluable in navigating challenges and ensuring compliance with brand standards

Pickleball is a sport with broad appeal. With players of all ages in various demographics, and more getting into the sport over the last few years, now is a great time to open a business in the pickleball industry. While going it alone is an option, having a guide that can provide insight and assistance can be an invaluable boon. Franchising offers just such an opportunity, giving you the freedom to own your own business while still having a helping hand as you and your business grow.

Start on The Right Foot with The Pickle Pad

We’re eager to welcome you to our franchise team. We’re a new pickleball franchise looking for ambitious entrepreneurs like you to help us make the most of this booming new industry. We’re prepared to provide you with all the training you need to open your own location, as well as guidance all throughout your career as a pickleball franchise owner. Submit an inquiry form today to learn more about your franchising opportunity with The Pickle Pad.