In the last series of "boring" sweaty startups, we talked about the business of laundromats. Well, today I got another one for you and I'm sure most Malaysians would be interested in this one.
You guys already saw the subject line so there's no surprise here...
That's right, today we're talking about the business of badminton courts 🏸
Let's dig in 👇
The Economics 📝
- If there's one thing we, Malaysians can be proud of, it has to be our badminton. Every Malaysian plays it, from 6 year-olds to your uncles and aunties so you know there's demand for it
- The model is straightforward - rent a warehouse and turn it into a badminton court or better yet, rent an existing one that's not doing so well
Back Of The Envelope Calculation 🧮
- The booking rates for a court on average go for around RM16-24/hour
- A decent sized badminton centre would be able to fit 8 courts. Let's say you are open from 9am - 1am, 7 days a week and your occupancy rate is around 50%
- 16 hours x 30 days x 8 courts x 50% x RM20 = RM38,400/month
- Based on Property Guru, you could rent a warehouse for RM1.20-RM2 psf and an 8-court badminton centre would be around 10,000-12,000 sqft
- Including operating expenses like maintenance, utility bills and staff salaries, you would net around 25-30%
- Not bad, not bad at all...
- The good news doesn't just end there. There are many other ways you could do to boost your revenue stream
- Sell badminton sports gear
- Install vending machines
- Hire badminton coaches to fill up the off-peak hours
- Host competitions
- It's not all rainbows and sunshine, there are still many challenges ahead before you could milk your cash cow
- Location - It's easy to rent a warehouse but finding one with a strategic location is going to be tough. Not only does it need to be near a residential area but it also needs to have ample parking spots
- Renovation - Even if you managed to find one, you would still need to fork up a large capital to install the floor mat, lighting, benches etc.
It's one of those businesses where luck plays a major role. You may do a lot of calling and waiting but boy if you get lucky, you'll have yourself a recession-proof cash cow 🐄