How to Open a Batting-Cage Business

A commercial batting cage at night.

Opening a batting-cage business can be a wonderful way to make money as part of an existing business or as a stand-alone operation. Typically, overhead is relatively low, but it can be difficult deciding on a location, business model and marketing plan.

Instructions

1. Produce a plan. A batting-cage business has many possibilities. Such an operation can be suitable for multiple locations or can be mobile. You also likely will need a capital investment to purchase fencing, pitching machines and other gear. Depending on your goals, your marketing efforts also could be aimed at a variety of people. A thoroughly constructed business plan will help you simplify your goals, objectives and needs for you to have a clear direction in the building process and after you have started. To write a business plan, use a template to guide you through the process of creating budgets, marketing plans, capital projections and expansion goals.

2. Name and form your business. Choose a name and form an official company. Forming an LLC (Limited Liability Company) will suffice. An LLC has some of the characteristics of a corporation and other official business entities. By incorporating, your business will have its own Tax Identification Number (TIN), giving you the authority of making financial decisions in the name of your company.

3. Register your company. Contact your local government and obtain a permit or business license if required. You also will need to register your business name and contact information with your local income tax office. A business license, if required, could cost you up to a couple hundred dollars, depending on your city's rules.

4. Raise some funds. Depending on the number of pitching machines, desired location and maintenance and upkeep costs your business plan calls for, you will need some money. The best way to fund a batting-cage business is to look for investors. This might be your family, friends, professional associates or owners of already successful businesses that could benefit from adding a batting cage for their customers. Show potential investors your business plan. Offer them a cut of your profits or monthly rent. You also might obtain low-interest loans through the government or apply for bank financing.

5. Purchase equipment. Your biggest expense will be your pitching machines, fencing material and netting to construct your cages. Commercial pitching machines equipped to accept coins and bills start at around $1,800 new. You also might find used equipment by contacting other batting-cage businesses. Some might be willing to sell you unused gear or direct you to other sources. Balls, bats and helmets usually are sold by pitching-machine dealers. Fencing is fairly inexpensive and can be purchased at most lumber companies. Chain-link fencing is recommended around a slab of concrete.

6. Look for a home. A batting-cage business can operate in a variety of places. The best option is to find an already successful entertainment attraction that could benefit from a batting cage. This could include entertainment and recreational parks, miniature-golf courses or ice-cream shops. Contact these businesses and pitch them the idea of allowing you to build your batting cage on their property. Pay them rent or a cut of your revenue. You also might have a traveling business that sets up at ballparks during games, schools, other festivals or indoors.

7. Market your business. Regardless of your business model, you must get the word out that you are open. Start by talking with an advertising representative at a local newspaper. Depending on readership, print advertising is a good way for a batting-cage business to get exposure, especially during baseball season or warmer months. Buying ads in community newsletters, on billboards and simple word-of-mouth efforts are effective advertising vehicles. If you set up alongside an existing business, offer to do joint advertising and split the cost. Distribute fliers to hotels, restaurants and tourism offices such as your city's visitor's bureau, Chamber of Commerce or information center.

Tips & Warnings

• Make sure your business plan is clearly written. If you are unsure how to proceed, contact a CPA or marketing company. Purchase liability insurance. It is wise to carry enough insurance in case a customer is injured while using your facility. Start small. Two cages, with the ability to add a third, should suffice to get started. Adding more than you need in the beginning could increase unwanted overhead. Charge a fair price. Typically, most batting cage business will charge 50 cents to $1 for 10 pitches, or about $40 an hour. But set your prices according to your revenue needs without being too expensive.

• Hire a professional contractor to build your cages and assemble equipment unless you are skilled at doing so. Always obtain a building permit when required.

Resources

• SCORE Business Plan
• Incorporating Your Business
• United States Small Business Administration
• Batting-Cage Equipment
• Nationwide Business Insurance