TL;DR: Your Facility Search Roadmap
Timeline: 6-12 months from research to signed lease Critical Path:- Prove demand first (3-12 months training in rented space until revenue = 2x facility costs)
- Research exhaustively (4 weeks: 10-15 competitors + 20-30 stakeholder conversations)
- Budget conservatively ($40K-$100K total investment + 6-12 months reserves)
- Search patiently (8-12 months: 3-5 brokers + tour 10-20+ properties)
- Negotiate everything (rent, terms, improvements, exit strategy—all negotiable)
What This Guide Covers
Opening a training facility is one of the biggest decisions you’ll make as a coach. The difference between a thriving facility and one that closes within 18 months often comes down to the location decision—not just where you open, but how you validate demand, structure your search, and negotiate your lease. This guide walks you through the systematic 6-12 month process to find, evaluate, and secure the perfect training facility location. You’ll learn how to research competition, prove market demand before committing capital, understand real costs, navigate commercial leases, and avoid the expensive mistakes that sink new facilities. Who This Is For: Coaches ready to transition from renting space to opening a dedicated facility, whether basketball, volleyball, baseball, or any sport-specific training business.Your Guide: Brandon Evans & Pro Standard Basketball Academy
Throughout this guide, we’ll follow the real-world journey of Brandon Evans, founder of Pro Standard Basketball Academy in Fort Wayne, Indiana. Brandon is a Fort Wayne native who trained under Ryan Razooky in California—one of the largest basketball training programs in the country—before returning home with a mission to bring professional player development to his community. What started as small group sessions under “Brandon Evans Basketball” has evolved into a 4,700 sq ft facility serving 75+ athletes weekly. Brandon’s journey from church gyms to his own facility embodies every principle in this guide: he proved demand first, researched exhaustively, budgeted conservatively, and learned expensive lessons so you don’t have to. His philosophy—“Raise Your Standard”—isn’t just a tagline. It’s the systematic approach he took to facility planning, and the same approach we’ve seen work for facility owners across our coaching network.Real Numbers, Real Lessons: Brandon generously shared every detail of his facility journey—from his $70K total investment to his biggest mistake (rushing a flooring decision that cost him an extra $30-40K). His transparency, combined with insights from facility owners across our network, forms the foundation of this guide.
Part 1: Competition Research (4 Weeks)
Before you even think about signing a lease or touring properties, you need to understand your competitive landscape. This isn’t just about counting how many facilities exist—it’s about finding the gap you can own. The coaches who succeed aren’t necessarily in markets with less competition; they’re in markets where they’ve identified what’s missing and built that. Brandon discovered this firsthand. Fort Wayne had 10-15 basketball training options, but after 20+ hours of research and 30 stakeholder conversations, he found his opening: nobody focused exclusively on skill development. Every competitor funneled athletes into AAU teams, performance packages, or membership upsells. That gap became Pro Standard Basketball Academy. This 4-week research phase will save you from opening in an oversaturated market or—worse—opening a facility that offers the same thing everyone else does.Goal: Find the gap in your market you can own
Start by identifying every competitor, then analyze their positioning to discover what’s missing. Don’t copy what exists—find what doesn’t exist and build that.Week 1-2: Comprehensive Competitor Identification
Traditional Research
Google searches, Yelp, Facebook, Instagram, Parks & Rec, local leagues, and neighborhood drives
AI-Powered Research
Use Perplexity AI, Claude, or Gemini to accelerate 20 hours of research into 2 hours
- Google every keyword variation: “[sport] training,” “AAU,” “skill development,” “camps,” “academies,” “lessons”
- Search Yelp, Facebook, Instagram (many skip professional websites)
- Contact Parks & Recreation for public programs
- Review local leagues and club organizations
- Drive target neighborhoods for “For Lease” signs on gyms
Week 2-3: Build Your Intelligence Database
Create a spreadsheet tracking every competitor with these columns (if you can find them): Facility Analysis:- Name, location, square footage
- Condition, amenities, parking capacity
- Is training primary business or side offering?
- Single sport or multi-sport?
- Training structure: group only, private available, camps, leagues
- Critical: Do they funnel clients elsewhere? (AAU teams, performance packages, memberships)
- Ownership type: independent, hospital, franchise, nonprofit
- Private sessions, group packages, memberships, drop-ins
- Warning: Don’t copy competitor pricing blindly
Week 3-4: Human Intelligence (Most Valuable Research)
After mapping the competitive landscape online, it’s time for the most valuable research you’ll do: talking to real people. This is where you discover the gap between what facilities offer and what athletes actually want. Digital research tells you what exists; human conversations tell you what’s missing. Target Conversations:- Local coaches: Email requesting informational meetings
- Parents: Talk at games, tournaments, recreation centers
- High school athletic staff
- League organizers
- Sporting goods employees
- “What programs has your child tried? What worked and didn’t?”
- “What’s missing in our area for [sport] development?”
- “How much do you invest annually in training?”
- “What would make you switch programs?”
Brandon’s Discovery: After talking with 20-30 Fort Wayne basketball stakeholders, Brandon heard consistent feedback: crowded group sessions with no individual attention, every facility funneling kids into AAU teams or performance programs, nobody focused purely on skill development. This revealed his market gap and became the foundation for Pro Standard Basketball Academy’s positioning.
Market Red Flags (Consider Walking Away If Present)
Oversaturation
8-10+ quality facilities in your exact niche
Price Wars
Destructive undercutting between competitors
Declining Demographics
Census showing youth population decrease
Dominant Player
One facility with 60%+ market share
High Turnover
3+ facilities opened and closed in 3 years
Economic Distress
Job losses, declining household incomes
With your competitive landscape mapped and market gap identified, it’s time to validate that opportunity with real revenue. The most critical mistake coaches make? Opening a facility before proving demand. Part 2 shows you how to de-risk your investment by building revenue first.
Part 2: Market Validation (2-3 Weeks Analysis + 3-12 Months Validation)
This is where dreams meet reality. You’ve found your market gap through research. Now you need to prove people will actually pay for what you’re offering—before you commit to an expensive lease. The traditional path is backwards: sign lease, build out facility, hope revenue materializes. The smart path? Build revenue in low-cost rented spaces, prove your model works, then open your facility backed by proven demand, not hope. Brandon trained in Fort Wayne church gyms for several years, saving nearly all his profit until his revenue hit double his projected facility costs. Only then did he begin his facility search. This approach eliminated 90% of his financial risk. This validation phase might feel like it’s delaying your dream. In reality, it’s ensuring your dream doesn’t become a nightmare 12 months after opening.The Smart Approach: Prove Demand Before Facility Commitment
Recommended Path:- Train in low-cost rented space (churches, community centers, hourly rentals)
- Build clientele and test your value proposition
- When revenue reaches 2x projected facility costs (important), start facility search
- Open facility backed by proven demand, not hope
- Dramatically reduces risk (expanding proven business vs. testing theory)
- Validates pricing in real market conditions
- Builds cash reserves for buildout
- Strengthens landlord negotiations (operating business vs. startup concept)
- Allows patient, selective facility search
Church Gymnasiums
$30-75/hourAvailable evenings/weekends, often negotiable rates
Community Centers
$40-80/hourGood parking, familiar locations for families
School Gyms
Varies by districtSummer availability, institutional credibility
Hourly Court Rentals
$50-100/hourFlexible scheduling, professional settings
Brandon’s Validation Journey: Brandon trained in Fort Wayne church gyms for several years, building revenue to nearly double his estimated facility costs before beginning his facility search. He negotiated a deal with the church to pay $5/kid/hour—helping him short-term while providing the church consistent rental income long-term. This approach eliminated 90% of his financial risk and gave him $70K in saved capital to self-fund his facility.
Your Online Presence During Search: While searching for your facility, start building your digital presence with CoachIQ. Create your website, set up scheduling for your current rented space, and begin capturing leads. When you open your facility, you’ll already have a waitlist.[Link to: Website Builder] [Link to: Getting Started Guide]
Essential Market Demographics
Understanding your market’s demographics isn’t optional—it’s the foundation for knowing if enough potential customers exist to support your facility. You’re looking for population density, income levels, and youth participation rates that signal sustainable demand. Research Requirements:- Total metro population (100K+ minimum recommended for specialized training)
- Youth population (ages 7-18 in your target range)
- Household income distribution (target $60K+ median)
- Youth sports participation rates
census.gov
American Community Survey for demographics
Local Resources
Economic development orgs, Chamber of Commerce
School Data
District enrollment data by age group
Sports Associations
State athletic association statistics
Geographic Analysis
Location isn’t just about being “near” your target market—it’s about accessibility, drive times, and geographic barriers that can make or break attendance patterns. Critical Questions:- Where do ideal clients live? (map target neighborhoods)
- Maximum acceptable drive time? (15-20 min for 80% recommended)
- Geographic barriers limiting access? (highways, rivers, railroad tracks)
- Neighborhood sports culture and commitment level?
- Proximity to affluent residential areas
- Access from multiple target neighborhoods
- Visibility vs. rent tradeoff
- Partnership opportunities (complementary businesses nearby)
Brandon’s Location Strategy: Brandon chose downtown Fort Wayne despite wealthiest clients living in Southwest and North suburbs. Downtown provided equal access from all areas (avoiding tribal dynamics where families wouldn’t cross town), lowest rent ($4/sq ft vs. $8-12/sq ft suburbs), and room to prove his model. He’s now relocating to North Fort Wayne next to a sports performance center for cross-promotion in the wealthiest demographic—a strategic move only possible after proving his concept.
You’ve validated demand and understand your market demographics. Now comes the sobering reality check: what does this actually cost? Part 3 breaks down every dollar of investment—from Brandon’s $70K build-out to the monthly operating costs most coaches underestimate.
Part 3: Financial Reality (Real Numbers You Need)
This is where optimism meets spreadsheets. Most coaches underestimate facility costs by 30-50%, which creates cash flow crises within the first 6 months. This section gives you the complete financial picture—not the sanitized version you’ll see in most business plan templates, but the real numbers from Brandon’s $70K build-out and operating costs from facility owners across our network. The goal isn’t to scare you away from opening a facility. It’s to ensure you open with eyes wide open, sufficient capital reserves, and realistic revenue projections. The coaches who fail aren’t always the ones with the least money—they’re the ones who underestimated what they’d need.Total Investment Range: $40K-$100K
This number can vary GREATLY depending on your size and buildout preferences. For 3,000-7,000 sq ft dedicated facilityConservative Build
$40-50KUsed equipment, DIY improvements, minimal tech
Standard Build
$60-75KNew equipment, professional contractors, modern tech
Premium Build
$80-100KHigh-end finishes, top equipment, full automation
- Sport-specific court: $5-15/sq ft installed
- Communal areas: $2-5/sq ft
- Lead time: 6-10 weeks typical
- Critical: Get 3-5 quotes minimum, allow 3+ months
- Look around on Facebook marketplace or used marketplaces
Cosmetic Updates
$1-3KPainting, basic repairs, cleaning
Functional Upgrades
$2-5KLighting, electrical, HVAC adjustments
Safety & Comfort
$1-4KWall padding, bathroom updates, waiting area
Office & Storage
$1-3KOffice buildout, storage solutions
- Sport-specific gear (hoops, nets, goals: $2-5K each)
- Wall pads ($200/ea)
- Training equipment (cones, ladders, bands: $1-3K)
- Specialized machines (if applicable: $3-15K)
- Sound system: $200-2K
- Storage solutions: $500-2K
- Scheduling/booking software
- Payment processing systems
- Security cameras: $500-3K
- WiFi infrastructure: $100-500
- Computer/tablets: $500-1.5K
CoachIQ Saves $2-4K in Technology Costs: Instead of paying for separate scheduling ($50-100/mo), payment processing setup ($500-1K), website builder ($300-500), and CRM ($100/mo), CoachIQ includes everything in one platform. That’s $2,000-$4,000 in year-one savings.[Link to: Platform Overview] [Link to: Pricing]
Lease Deposits
$3-10KFirst month + security (typically 2-3 months rent)
Utility Deposits
$500-1,500Electric, water, gas connections
Insurance Deposits
$200-1,000Initial policy payments
Business Licenses
$200-2,000Permits, licenses, inspections
- Cleaning supplies and equipment
- Toiletries, paper products
- First aid supplies
- Office supplies
- Marketing materials
- Website development
- Initial advertising
- Grand opening promotion
- Local partnerships/sponsorships
Brandon’s Investment: Brandon’s 4,700 sq ft Fort Wayne facility cost $70K total. $40-50K was flooring (his biggest mistake—rushed decision with one contractor). Should have been $8-10K with proper research and 3 months of shopping. Optimized investment for similar space: $50K.
Understanding Commercial Rent
If you’ve only rented apartments, commercial leases work differently. They’re quoted annually per square foot, then you add “NNN” (triple net) charges for property taxes, insurance, and maintenance. Here’s how to calculate your actual monthly cost. How It’s Quoted: Annual dollars per square foot Calculation Example:- Property taxes (your proportional share)
- Building insurance (property structure, not your liability)
- CAM (Common Area Maintenance: parking, landscaping, exterior)
| Location Type | Cost ($/sq ft) | Pros | Cons | Best For |
|---|---|---|---|---|
| Industrial Warehouse | $4-8 | Lowest cost, high ceilings, large spaces | Less visibility, older facilities, limited amenities | Established coaches prioritizing margins |
| Retail Strip Center | $12-25 | High visibility, foot traffic, parking | Expensive, retail hours restrictions | High-end training, visibility-dependent |
| Standalone Building | $8-15 | Full control, flexible hours, signage | Medium cost, maintenance responsibility | Growing businesses ready to scale |
| Shared Facility | Varies | Lower commitment, built-in networking | Limited control, scheduling conflicts | Testing market, part-time operations |
Brandon’s Rent Strategy: Brandon secured $4/sq ft annually for 4,700 sq ft warehouse = $1,567/month base + $333/month NNN = $1,900 total occupancy cost. This was 50% below market due to old warehouse, no AC, industrial location, and motivated landlord. The money saved on rent ($1,500-2,000/month) gave him financial cushion to build his business—more valuable than a newer facility at market rates.
Monthly Operating Costs (Beyond Rent)
Once you’re in the facility, rent is just the beginning. These ongoing expenses determine whether you’re profitable or slowly bleeding cash. Most coaches underestimate operating costs by 20-30%, which creates the cash flow crises we see in months 4-6. Fixed Monthly Expenses:Occupancy
Rent + NNN: Varies by spaceYour largest fixed expense
Utilities
$150-700/monthSeasonal variation—heating/cooling spikes
Internet & Security
$130-250/monthBusiness-grade internet + security systems
Insurance & Software
$250-700/monthLiability insurance + operational software
- Staffing: $1K-$5K+ (scales with growth)
- Marketing: $500-$3K (strategic investment)
- Equipment maintenance: $100-300
- Cleaning/toiletries: $100-200
- Professional services: $100-300
Insurance (Often Underestimated)
Insurance costs surprise most first-time facility owners—they budget for rent and utilities but forget comprehensive coverage can run $300-500/month. Don’t skip this or underinsure to save money; one incident without proper coverage can end your business. Essential Coverage:General Liability
$1,500-3,000 annuallyCovers injuries, accidents on property
Professional Liability
$800-1,500 annuallyCovers training-related claims
Property Insurance
$800-2,000 annuallyCovers your equipment and improvements
Workers Comp
$2,000-5,000 annuallyRequired when hiring staff (state dependent)
Get quotes from at least 3 insurance providers. Rates vary dramatically based on your sport, facility size, and state regulations. Some insurance companies specialize in sports facilities and offer better rates than general business insurers.
Unexpected Costs (Budget 20-30% Buffer)
No matter how detailed your projections, unexpected costs always appear. Budget an additional 20-30% beyond your estimates to cover surprises that inevitably arise during buildout and the first few months of operation.- Professional painting runs higher than DIY estimates
- Small equipment replacement adds up monthly
- Toiletries and cleaning supplies ongoing
- Marketing that actually works requires investment
- All the “little things” collectively significant
Financing Options
Most coaches don’t have $40-100K in cash ready to deploy. Here are the financing paths we’ve seen work across our coaching network—from lowest risk to highest complexity.Self-Funding
Lowest RiskNo debt service, full control. Limited by personal savings, takes longer to accumulate capital.
Revenue-First
RecommendedBuild revenue in rented space first. Open facility when revenue = 2x costs. Dramatically reduced risk.
SBA 7(a) Loan
Traditional FinancingUp to $5M, 10-25 year terms. Requires solid business plan, 650+ credit, 2-4 month approval.
SBA Microloan
Smaller ScaleUp to $50K, shorter terms. Easier qualification for newer businesses.
Equipment Financing
Preserve CashFinance 60-80% of major equipment. Preserves working capital for operations.
Business Credit Cards
Strategic Use0% intro APR periods. Requires discipline to pay off before rates jump.
Friends/Family Loans
Flexible TermsPotentially lower rates. Must formalize with written agreements.
Brandon’s Financing Path: Brandon self-funded his entire $70K investment from several years of training income saved while working from church gyms. Zero debt gave him complete control and flexibility but required patience to accumulate capital. This approach meant no loan payments eating into his early revenue—giving him crucial breathing room during his first 6 months.
Brandon’s Fort Wayne Facility: Complete Financial Transparency
One of the most valuable aspects of Brandon’s story is his willingness to share every number—not the sanitized version most facility owners present, but the real investment, real mistakes, and real lessons learned. Here’s the complete breakdown from validation phase through opening day.Brandon Evans generously shared every number from his facility journey. Here’s the complete breakdown to help you plan yours.
- Revenue built in church gyms: $3K-5K/month
- Costs: $600-1,200/month (gym rentals)
- Net profit saved: ~$2K-3K/month
- Total saved: $70K over ~3 years
- Flooring: $40-50K ❌ (his biggest mistake)
- Should have been: $8-10K with proper research
- Lesson: Get 3-5 quotes, allow 3 months lead time
- Equipment: $6K
- Basketball hoops: $3K (2 professional adjustable)
- Training gear: $2K (cones, ladders, bands, medicine balls)
- Sound system: $500
- Storage: $500
- Facility improvements: $4K
- Painting: $1.5K
- Wall padding: $1K
- Bathroom updates: $800
- Office setup: $700
- Deposits: $6K
- First month + security: $3,800
- Utility deposits: $1,200
- Insurance deposit: $600
- Licenses/permits: $400
- Technology: $2K
- Website: $500
- CoachIQ setup: $0 (included)
- Computers/tablets: $800
- Security cameras: $700
- Initial supplies: $1.5K
- Marketing launch: $2.5K
- Rent + NNN: $1,900/month
- Base rent: $1,567 (4,700 sq ft × $4/sq ft ÷ 12)
- NNN: $333
- Utilities: $200-500/month (seasonal)
- No AC = lower cooling costs
- Heat in winter = higher
- Internet: $100/month
- Insurance: $300/month (expanded as business grew)
- Software: $150/month (CoachIQ + minor tools)
- Supplies: $150/month
- Marketing: $500-1,000/month
- Total operating: ~$3,300-4,000/month
- Break-even: $4,500/month (costs + minimal salary)
- Comfortable: $8,000/month (costs + $3-4K salary + reserves)
- Thriving: $15,000+/month (scaling phase)
- Saved $30-40K by learning from his flooring mistake and not repeating it elsewhere
- Self-funding gave complete control with no debt stress during critical first year
- Downtown location at $4/sq ft provided 50% cost advantage over suburbs ($8-12/sq ft)
- 3-year lease with renewal options = low risk test of the model
- Old warehouse with no AC was acceptable tradeoff for financial cushion—the $1,500-2,000/month he saved vs. nicer retail spaces gave him breathing room to build
Rented Space vs. Dedicated Facility
Understanding when to stay in rented spaces versus committing to a facility is crucial. This comparison shows why the revenue-first approach (validating in rented spaces) reduces risk so dramatically—and why you shouldn’t rush into a facility until the math clearly supports it.| Factor | Rented Space (Churches, Schools) | Dedicated Facility |
|---|---|---|
| Startup cost | $500-2K | $40K-100K |
| Monthly cost | $600-1,200 | $3-8K |
| Flexibility | High (cancel anytime) | Low (3-5 year lease) |
| Branding | Limited | Complete control |
| Schedule | Restricted (evening/weekends) | Your hours |
| Risk | Very low | Medium-high |
| Growth ceiling | Low-medium | High |
| Best for | Validation phase | Scaling phase |
You understand the financial reality. You have capital saved or financing secured. Now comes the longest part of the journey: finding the actual space. Part 4 covers the 8-12 month search process, from online platforms to broker relationships to the due diligence that separates great deals from money pits.
Part 4: The Facility Search (8-12 Months)
This is where patience becomes your competitive advantage. The coaches who rush this process—signing the first decent space they find—often regret it for the next 3-5 years. The coaches who methodically search, tour 10-20+ properties, and walk away from “almost right” deals? They end up in spaces that support their business instead of constraining it. Brandon’s facility search took 8 months. He toured numerous properties, walked away from several that seemed promising, and eventually found his downtown warehouse through a broker who reached out before public listing. That early access eliminated competition and simplified negotiations—advantages that came from having multiple brokers searching on his behalf while he remained patient. This phase tests your discipline. You’ll see spaces that are “good enough.” You’ll feel pressure to commit. Resist. The perfect space for your business exists, and finding it is worth the wait.Timeline: Don’t Rush This Process
Expect 6-12 months from beginning search to signed lease. Bad location decisions haunt you for years through expensive leases with limited escape options. We’ve seen coaches sign 5-year leases on poorly researched spaces, then spend years wishing they’d waited another 2 months for a better option.Search Channels
Online Platforms
LoopNet, Crexi, CommercialCafe, Zillow Commercial, Craigslist
Commercial Brokers
Free to you (landlord pays), access to unlisted properties
Proactive Strategies
Drive neighborhoods, contact property managers, network
Social Networks
Facebook/LinkedIn “space wanted” posts
- LoopNet.com (largest commercial marketplace)
- Crexi.com
- CommercialCafe.com
- Zillow Commercial
- Craigslist (good for warehouses)
- Local commercial real estate sites
- Engage 3-5 commercial brokers (free to you—landlord pays)
- Drive target neighborhoods weekly
- Contact property management companies directly
- Network with business owners
- Post “space wanted” on Facebook/LinkedIn
Brandon’s Search Strategy: Brandon’s ideal space came from a broker who reached out proactively before public listing. Early access eliminated competition and simplified negotiations. This happened because he had established relationships with multiple brokers who knew exactly what he was looking for.
Your Non-Negotiable Requirements
Know your deal-breakers before you start touring. Every sport has specific requirements that can’t be compromised—these are the make-or-break factors for your training model. Sport-Specific Must-Haves:Basketball
20+ ft ceiling minimumShooting arc clearance, Half-court minimum (47 ft × 50 ft)
Volleyball
24+ ft ceilingHigh serves/hits clearance
Baseball/Softball
50-70 ft lengthBatting cage depth requirements
Strength Training
Floor loading capacitySupport for heavy equipment
- Adequate electrical capacity
- Sufficient parking (1 space per 200-300 sq ft)
- ADA compliance
- Minimum 2 bathrooms
- Water access
- Separate office space
- Parent/family waiting area
- AC + heating (many warehouses have heat only)
- Natural lighting
- Updated facilities
- Shower facilities
- Outdoor space
Brandon’s Requirements: Brandon needed 20+ ft ceilings for basketball shooting arcs and half-court space (47 ft × 50 ft minimum). He was willing to compromise on AC, aesthetics, and location visibility to hit his $4/sq ft rent target. Those compromises saved him $1,500-2,000/month compared to retail locations.
Due Diligence Questions
These aren’t just polite conversation topics—these questions protect you from signing leases on properties with hidden problems. Ask every single one, and if you get evasive answers, consider it a red flag worth investigating further.Building Condition Questions
Building Condition Questions
- Roof replacement date?
- HVAC age and condition?
- Electrical panel capacity?
- Flooding/water damage history?
- Structural issues?
- What’s included in CAM?
Lease Terms Questions
Lease Terms Questions
- Base rent vs. NNN breakdown?
- Utilities separately metered?
- Improvement approval process?
- Repair responsibilities and response times?
- Signage permissions and restrictions?
- Lease term and renewal options?
- Escalation clauses?
Operations Questions
Operations Questions
- Operating hours restrictions?
- Noise limitations?
- Parking arrangements?
- Security systems?
- WiFi infrastructure?
Warning Signs (Walk Away)
These red flags indicate serious problems that typically cost more to fix than they’re worth. We’ve seen facility owners ignore these warning signs and regret it for years afterward.Environmental Issues
Strange odors (mold, sewage, chemicals), visible water damage or staining
Structural Concerns
Foundation/wall cracks, outdated/insufficient electrical
Pricing Red Flags
Extremely cheap rent indicates hidden problems
Landlord Issues
Evasive responses, high business turnover in space
Legal Complications
Zoning/permit complications, unclear ownership
Maintenance History
Evidence of deferred maintenance, recurring tenant complaints
Decision Framework
Commit When:- Price fits budget (can afford 6 months rent at zero revenue)
- Location accessible to target demographic
- Space meets minimum requirements
- Landlord responsive and reasonable
- Lease terms match risk tolerance
- Gut feeling positive
- Math doesn’t work (revenue can’t support costs + salary)
- Difficult landlord during negotiation
- Major structural/system issues
- Wrong demographic location
- Better options available
Brandon’s Decision: Brandon committed to 4,700 sq ft warehouse despite being larger than wanted, old aesthetics, and no AC because:
- $4/sq ft = 50% below market provided financial cushion
- Downtown location gave equal access from all neighborhoods
- 20 ft ceilings met basketball requirements
- Responsive landlord who valued long-term tenant
- 3-year lease with renewal options = low risk test
You’ve found your space. Now comes the negotiation that determines whether you thrive or struggle for the next 3-5 years. Part 5 covers lease negotiation strategies and the critical mistakes that cost coaches tens of thousands of dollars.
Part 5: Lease Negotiation & Critical Mistakes to Avoid
The lease negotiation is where most coaches leave $10K-50K on the table. They assume lease terms are fixed, they don’t ask for concessions, they skip legal review, and they fail to negotiate exit strategies. Then they’re locked into 5-year leases that become financial prisons when circumstances change. Everything in a commercial lease is negotiable—from rent to tenant improvements to early termination clauses. Landlords expect negotiation. If you don’t negotiate, you’re literally the only person who didn’t try. Brandon negotiated tenant improvement allowances, graduated rent increases, and renewal options that all came from simply asking. This section covers negotiation leverage points we’ve seen work across our coaching network, plus the expensive mistakes that cost facility owners significant money and flexibility.Negotiation Leverage Points
Everything Is Negotiable:Rent Considerations
First month free, graduated rent, annual increase caps, long-term concessions
Lease Terms
Shorter initial terms, extension options, first refusal rights, sublease rights
Improvements
Tenant improvement allowance ($5-15K typical), maintenance clarity, modification permissions
Exit Strategy
Early termination clause, assignment rights if selling
Financial Traps
Underestimating Costs Add 20-30% buffer to all projections. Assume higher costs, longer timelines, seasonal variations. Insufficient Reserves Maintain 6-12 months operating expenses in reserve. Don’t spend every dollar on buildout. Ignoring Seasonality Budget for seasonal cost variations (heating/cooling) and revenue fluctuations.Operational Mistakes
No Exit Strategy Get early termination clauses. Expensive but provides options if plans change. Rushing Decisions Time pressure leads to expensive mistakes. Be patient, even when frustrated. Wrong Location Beautiful facility in wrong neighborhood fails. Demographics and accessibility matter more than aesthetics.Brandon’s Biggest Mistake: Rushing flooring procurement under time pressure, costing him $40K extra ($50K spent vs. $10K proper cost). His lesson: “Get 3-5 quotes and give yourself 3 months. Don’t rush major purchases.” This single mistake cost more than all his other buildout expenses combined.
Your Action Plan: Week-by-Week Checklist
This roadmap breaks down your 6-12 month facility search into actionable weekly steps. Follow this sequence to systematically move from concept to signed lease without missing critical research or rushing decisions.1
Months 1-2: Research Phase
Week 1-2: Competition
- Google all keywords for your sport + city
- Build competitor database (10-15 minimum)
- Drive target neighborhoods
- Use AI for deep analysis
- Talk to 20-30 coaches and parents
- Document patterns and gaps
- Identify your differentiation opportunity
- Calculate total investment need
- Determine financing approach
- Build monthly cost projection
- Calculate required revenue
- List must-haves vs. nice-to-haves
- Define target neighborhoods
- Set maximum rent budget
2
Months 3-12: Active Search
Search Activities:
- Contact 3-5 commercial brokers
- Set up daily listing alerts
- Drive target areas weekly
- Tour 10-20+ properties
- Ask tough due diligence questions
- Negotiate everything (rent, terms, improvements, exit)
- Get legal review before signing
- Secure tenant improvement allowance
- Document everything in writing
3
Before Opening: Final Preparations
Final Checklist:
- 6-12 months expenses in reserve
- All permits and licenses secured
- Insurance policies active
- Marketing launch plan ready
- Staffing plan in place
- CoachIQ system configured
- Grand opening promotion scheduled
Frequently Asked Questions
These are the questions we hear most often from coaches planning their facility journey. The answers draw from Brandon’s experience and patterns we’ve seen across our coaching network—real insights from real facility owners who’ve navigated this process.Should I open a facility before I have clients, or build clients first?
Should I open a facility before I have clients, or build clients first?
Always build clients first. Train in rented space (churches, community centers, schools) until your revenue reaches 2x your projected facility costs. This approach:
- Proves market demand before committing to expensive lease
- Builds cash reserves for buildout
- Strengthens landlord negotiations (operating business vs. startup)
- Reduces risk by 90%
How much money do I need to open a training facility?
How much money do I need to open a training facility?
Total investment range: $40K-$100K for a 3,000-7,000 sq ft facility, including:
- Flooring: $8K-$50K (largest expense)
- Equipment: $5K-$15K
- Facility improvements: $5K-$15K
- Deposits: $5K-$15K (first month + security)
- Technology: $2K-$5K
- Plus: 6-12 months operating expenses in reserve
What's the biggest mistake coaches make when opening a facility?
What's the biggest mistake coaches make when opening a facility?
Three costly mistakes:
- Not proving demand first - Opening a facility hoping clients will come vs. expanding a proven business
- Rushing major purchases - Brandon paid $40K for flooring that should have cost $10K because he rushed the decision
- Insufficient reserves - Not maintaining 6-12 months operating expenses leads to cash flow crises
How long does it take to find the right facility?
How long does it take to find the right facility?
Expect 8-12 months from beginning your search to signed lease.Timeline breakdown:
- Month 1-2: Define requirements, engage brokers
- Month 3-8: Tour properties (10-20+), conduct due diligence
- Month 9-10: Negotiate lease terms
- Month 11-12: Legal review, sign lease, begin buildout
Should I buy or lease my training facility?
Should I buy or lease my training facility?
Lease first, buy later for most coaches.Why lease:
- Lower initial capital requirement ($5-10K deposit vs. $100K+ down payment)
- Flexibility to relocate if market shifts
- Landlord handles major repairs (roof, HVAC, structure)
- Can test location before committing to purchase
- Preserves capital for marketing and operations
- After 3-5 years of proven success in a leased space
- Strong cash position with 30-40% down payment available
- Planning 10+ year commitment to location
- Wanting to build real estate equity
How do I know if there's too much competition in my market?
How do I know if there's too much competition in my market?
Red flags indicating oversaturation:
- 8-10+ quality facilities in your exact niche (not just general gyms)
- Destructive price wars with competitors undercutting each other
- Multiple facilities opened and closed in past 3 years
- Dominant player with 60%+ market share
- You’ve identified a clear market gap through stakeholder conversations
- You offer something different (Brandon focused on pure skill development when everyone else funneled to AAU)
- Geographic opportunity exists (different part of city)
- You’re targeting underserved demographic
Can I use CoachIQ before I have a facility?
Can I use CoachIQ before I have a facility?
Yes—and you should!CoachIQ is perfect for the “revenue-first approach”:
- Accept bookings for sessions in rented spaces (churches, schools, community centers)
- Process payments and track exactly how much revenue you’re generating
- Build a waitlist of athletes ready to join when you open your facility
- Create your professional website and branded app while searching for space
- Set up automation sequences that work immediately
- Proven demand (revenue data)
- An existing client base
- A professional digital presence
- Systems already running
What if I can't afford \$40K-\$100K to open a facility?
What if I can't afford \$40K-\$100K to open a facility?
Alternative paths:
- Start even smaller: Church gyms cost $30-75/hour. Train 10 hours/week = $150-300/week ($600-1,200/month). Build from there.
- Partnership model: Find a facility owner who has empty court time. Propose revenue share or flat hourly rate.
- Incremental buildout: Lease the space but build out gradually. Start with minimal flooring and equipment, expand as revenue grows.
- SBA Microloan: Up to $50K with easier qualification than traditional loans.
- Equipment financing: Finance 60-80% of major equipment purchases to preserve cash.
Key Takeaways
Prove Demand First
Train in rented space until revenue = 2x facility costs. Dramatically reduces risk.
Research Exhaustively
10-15 competitors analyzed + 20-30 stakeholder conversations reveals your market gap.
Budget Conservatively
Add 20-30% to all projections. Unexpected costs always appear.
Don't Rush
6-12 month search timeline prevents expensive mistakes. Patience pays.
Negotiate Everything
Rent, terms, improvements, exit strategy—all negotiable even when they say otherwise.
Great Landlord > Cheap Rent
Responsive, fair landlord worth more than $100/month savings.
Get It in Writing
Verbal promises are worthless. Everything negotiated goes in the lease.
Build Reserves
6-12 months operating expenses in reserve for unexpected costs and slow periods.
Bottom Line: Your location determines everything—costs, accessibility, competitive position, growth capacity, and ultimate success. Invest the systematic time to get it right.Follow this framework, adapt to your specific sport and market, and you’ll find the right space at the right price with terms supporting long-term success. Brandon’s journey from church gyms to a thriving 4,700 sq ft facility proves this approach works—and the coaches in our network who followed similar paths have built sustainable, profitable training businesses.
Ready to Start Your Facility Journey?
Whether you’re currently training in rented spaces and building toward your facility, or you’re ready to begin your location search, CoachIQ gives you the operational infrastructure to run your business professionally from day one.Start Building Revenue Now
Don’t wait for a facility. Set up scheduling, payments, and your website today in rented spaces.
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