Originally Posted by dada
Land Security Deposit: $250/month
Zoning costs: $100/month
Netting Supports: $100/month
Bulk Tank Station: $150/month
Total Outlay: $41,500, $1150/month amortized
Land Rental: $4000 / month
Field Manager: $1500/month
Head Ref: $1000/month
Air Management labor: $1500/month
Registration/Service labor: $2000/month
Bunker/netting/compressor maintenance: $300/month
Recurring Total: $13,950/month
Gross overhead: $15,100/month
Weekly average overhead: $3552
I'm joining this late and just addressing dada's original post. We started small and grew as profit became available. Our goal was to incur no debt with the business. We paid cash for everything along the way, so our growth took some time. Three years later we now have seven fields and just about everything set up how we want it. We anticipate having everything complete as we envisioned by the end of 2005.
This isn't a hypothetical field, but essentially what we did for our field. I present this to let people know that you can pursue the dream and make it happen without needing $50,000 to start or $15,000 per month in revenue to stay afloat. We certainly did it, and I'm sure many others have as well.
The toughest part is finding land in an area that is zoned, close enough to draw business, and a landlord that is willing to work with you. It took us some time, but it was well worth it as you can see by the difference in what the hypothetical business pays and what we pay.
I found 28 acres of available land already zoned. I had three options available to me.
1. Buy the land (owner financed) -- highest monthly cost
2. Rent the land on a fixed $$ per month -- lowest monthly cost
3. Pay a per person fee. -- easiest monthly cost
We opted for the per person fee for my first two years. Since it was a "pay-as-I-go" method, we didn't have to sweat the slow times. Sure we paid more during the busy times, but we only paid more because we made more. We're now in year three and working out the details on buying the land. Total start up cost = $0
We use spools obtained for free from phone company. Shade was provided by excess netting. Cost = $0
We started out with two fields (7 man) that we had to pole and net, 1 hyperball and one Sup Air. Rec fields required no netting/poles, just some work to clear and set up. Poles/netting = $3000. Hyperball = $1000 Sup Air = $4000. Total cost = $8000
We did the nitrogen bulk tank method for the first year. Total cost = $500
We were able to work out a great deal on quality rentals, all new. We started with 25 packages. Total cost = $2100
Misc Start up
Insurance ($1200), Portable building ($4000), Website ($180 for domain name 3yr, 1 year hosting--we use frontpage and maintain ourselves), Paint ($3500). Probably forgetting a few things, but it's been a few years
Total Startup Cost: $19,480.
Of course you don't have to use a portable building (save $4000), and you can probably start with 1/2 skid of paint to save $1700). We just wanted to start out looking professional...I have friends that used old mobile homes (if availble) that they got for under a $1000.
Recurring Costs (open weekends only)
Utilities: $150/month (phone, power, portapotties, etc)
Field Manager: $500/month
Referees: We require sponsored teams to do this on a rotation. Bad reffing results in reduced deals. They do a great job! $0/month
Bunker/netting/compressor maintenance: $50/month
CO2 fees: $200/month
Rental maintenance: $50/month
Recurring Total costs: $1100/month
After you get past the initial start up costs, running the business doesn't require that many people to keep it afloat.
Paint has a decent profit margin, rentals are basically pure profit, and CO2 has a high profit margin. I'll let you all run the numbers privately, but you can see that you can make a pretty decent amount of money on a small field.