How to start a pickleball business: Your first serves

Launching a pickleball business can be an exciting venture, blending a love for the game with sharp business acumen. The industry has grown into a multi-billion dollar market, with steady demand for court time and gear from retirees, families, and competitive players alike.

This guide will take you through the practical steps of validating your business concept, selecting the right location, acquiring equipment, and obtaining necessary licenses to help you launch a successful pickleball business in the U.S.

Step 1: Validate your business plan

Conduct market and competitor research

First, gauge local demand. You can survey potential customers at community centers or farmers markets. Ask how often they might play and what they would pay for court time. Also, use the USA Pickleball’s Places 2 Play database to map existing courts in your area.

Then, analyze your direct competitors on Google Maps and Yelp. Note their pricing, hours, and customer reviews. A detail new owners often miss is a check of local park district plans; a new public court could significantly affect your projections.

Estimate your startup costs

Once you have a feel for the market, it is time to build a preliminary budget. Your largest expense will be the facility. New court construction typically runs from $20,000 to $50,000 per court. Another path is to lease and renovate an existing warehouse space.

Beyond the court, you should budget for other initial expenses. Here is a typical breakdown:

• Equipment: $3,000 - $5,000 for nets, paddles, and balls.
• Licenses and Permits: $500 - $2,000 for business registration and local permits.
• Initial Marketing: $1,000 - $3,000 for a website and launch promotions.

Here are 3 immediate steps to take:

• Draft a short survey for 50 locals with questions on pricing and play frequency.
• List all competing pickleball venues within a 10-mile radius and their hourly rates.
• Create a spreadsheet with high and low estimates for your major startup costs.

Step 2: Set up your legal structure and licensing

Most new pickleball businesses register as a Limited Liability Company (LLC). This structure protects your personal assets from business debts. Profits pass through to your personal tax return, which simplifies filings. Consulting a CPA can help you decide if an S Corp offers better tax advantages.

First, get a free Employer Identification Number (EIN) from the IRS website. You will need this to open a business bank account. Then, register your business with your state’s Secretary of State. This typically costs between $50 and $500 and can take a few weeks.

Secure local permits

Local permits often cause the biggest delays. Start by contacting your city or county planning department. They will outline the specific requirements for your location. A frequent misstep is to underestimate this timeline, so begin the process early.

• General Business License: Allows you to operate in your city.
• Certificate of Occupancy: Confirms your building is safe for public use.
• Building Permits: Required for any new construction or major renovations.
• Health Permit: If you plan to sell snacks or beverages.

Permit costs and timelines vary widely. A business license might be $100 annually, while building permits can run into thousands and take months to approve. Factor these potential delays and costs into your financial projections to avoid surprises.

Here are 3 immediate steps to take:

• Apply for your free EIN on the IRS website.
• Contact your Secretary of State’s office to begin your LLC registration.
• Schedule a call with your local planning department to review permit requirements.

Step 3: Secure insurance and manage risk

With your legal structure in place, the next move is to protect your business. General liability insurance is non-negotiable. It covers injuries and property damage. Expect to need $1 million to $2 million in coverage, with annual premiums typically between $600 and $1,800.

Key insurance policies

Beyond general liability, you will want to consider a few other policies to fully cover your operations. Here are the main ones to discuss with an agent:

• Property Insurance: Protects your building, courts, and equipment from fire, theft, or damage.
• Professional Liability: If you offer lessons, this covers claims related to coaching advice.
• Workers’ Compensation: A legal requirement in most states if you hire any employees.

You might explore specialists like K&K Insurance or Sadler Sports & Recreation Insurance. They understand pickleball-specific risks, such as player collisions or injuries from errant balls. A general agent might not grasp these nuances, which can leave you exposed.

Bundling policies can often reduce your total premium. A frequent oversight is failing to confirm if your policy covers special events like tournaments. These events often demand higher liability limits, so verify this detail upfront to avoid future problems.

Here are 3 immediate steps to take:

• Request quotes from two sports insurance specialists and one general provider.
• Ask each provider if their general liability policy includes tournament coverage.
• Inquire about discounts for bundling property and liability insurance.

Step 4: Find a location and buy equipment

Look for warehouse or industrial spaces with at least 8,000 square feet for a four-court facility. Each court needs a 30-by-60-foot footprint. A key detail is ceiling height. You need at least 18-20 feet of clear height to avoid interfering with lobs.

Confirm the property has commercial or recreational zoning with your local planning department. When you negotiate a lease, ask for a tenant improvement allowance. This can help offset the cost of court construction. Landlords are more open to this with a 5- to 10-year lease.

Some new owners overlook the importance of a clear-span building. Choosing a space with support columns in the play area can ruin the player experience. This detail makes a huge difference, so prioritize an open layout from the start.

Select your court equipment

With a location in mind, you can price out equipment. Buying in bulk from a single supplier like PickleballCentral or OnCourt OffCourt often saves money. Here is what you should budget for your initial setup:

• Permanent Nets: $1,000 - $2,000 per court.
• Rental Paddles: $20 - $40 each. Plan for at least 20 to start.
• Pickleballs: $250 - $300 for a case of 100 balls.

Here are 3 immediate steps to take:

• Identify three potential warehouse spaces with 20-foot clear-span ceilings.
• Ask your city’s zoning office about requirements for an indoor sports facility.
• Get a quote for a four-court equipment package from two different suppliers.

Step 5: Set up your payment system

Choose your payment solution

Most clubs offer pay-per-play for drop-ins and monthly memberships. You will need a system that can handle both one-time and recurring payments. A mistake some owners make is to choose a complex system with high monthly fees. Look for transparent, per-transaction pricing.

For businesses that need to accept payments on-site, JIM offers a streamlined solution. With JIM, you can accept debit, credit, and digital wallets directly through your smartphone. Just tap and the payment is done. Other providers often charge 2.5% to 3.5% plus fees.

At just 1.99% per transaction with no hidden costs or extra hardware, it is particularly useful for handling drop-in fees or pro-shop sales. Here is how it works:

• Get Started: Download the JIM app for iOS.
• Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone.
• Access Funds: Your money is available on your JIM card as soon as the sale is done, with no waiting for bank transfers.

Here are 3 immediate steps to take:

• Decide on your pricing model, such as pay-per-play or monthly memberships.
• Compare the transaction fees of two different payment solutions.
• Download the JIM app to test its process for on-the-spot sales.

Step 6: Secure funding and manage your finances

Find your startup capital

Most pickleball businesses get funding through an SBA 7(a) loan from a local bank. These loans can go up to $5 million, but a typical amount for a new facility is $150,000 to $500,000. Expect interest rates around Prime + 3-5%.

To qualify, you will need a credit score above 680 and must contribute 10-20% of the total project cost yourself. Lenders will heavily scrutinize your business plan and financial projections. A frequent misstep is approaching a bank without this homework done.

You might also look into Community Development Financial Institutions (CDFIs). They often support projects that add recreational value to a neighborhood and can sometimes offer more flexible terms than traditional banks.

Plan for your operating costs

With funding in mind, you need to calculate your working capital. This is the cash reserve to cover expenses for the first six months before revenue becomes consistent. For a four-court facility, a safe buffer is between $50,000 and $100,000.

This amount covers rent, utilities, initial payroll, and marketing campaigns. Many new owners focus only on the big startup purchases and run out of cash for day-to-day operations. Build this cushion into your loan request to avoid this situation.

Here are 3 immediate steps to take:

• Contact your local Small Business Development Center (SBDC) for free help with your loan application.
• Build a detailed six-month operating budget that includes rent, payroll, and marketing.
• Request your credit report to confirm your score meets typical lender requirements.

Step 7: Hire your team and set up operations

Build your front-of-house staff

Your first hires will likely be a Facility Manager and Front Desk Staff. A manager oversees daily operations and can earn $45,000 to $60,000 annually. Front desk staff handle check-ins and rentals; plan for $15 to $20 per hour for these roles.

For instructors, look for coaches with PPR or IPTPA certifications. Many new owners hire uncertified friends to save money, but certified pros add credibility and can command $40 to $70 per hour for private lessons. This attracts serious players to your facility.

Streamline your daily operations

With your team in place, you need a system to manage bookings. You might want to consider software like CourtReserve or Playbypoint. These platforms handle court scheduling, membership billing, and event registration, which frees up your staff to focus on customer service.

As you grow, aim to keep your total payroll costs between 20-35% of gross revenue. This is a healthy benchmark for a service-based business and helps ensure profitability. Exceeding this range for too long can strain your cash flow, so monitor it closely.

Here are 3 immediate steps to take:

• Draft job descriptions for a Facility Manager and two Front Desk staff members.
• Review the certification requirements on the PPR and IPTPA websites.
• Schedule demos with CourtReserve and Playbypoint to compare features.

Step 8: Market your business and acquire customers

Create your digital storefront

Your first move is to claim your Google Business Profile. This is how local players will find you. Fill out every section with photos, hours, and a link to your booking site. A mistake some owners make is to neglect their profile, which hurts local search visibility.

Next, build a simple website on a platform like Squarespace. It should clearly show your pricing, schedule, and location. You do not need a complex site to start. Focus on making key information easy to find for potential customers.

Run launch promotions

You might want to create a "Founder's Club" offer. The first 50 members could get a 20% lifetime discount. This strategy builds early momentum and a loyal base. Also, consider partnering with local community groups or corporate wellness programs for a free introductory clinic.

A successful clinic often converts 10-15% of attendees into members. For tracking, your Customer Acquisition Cost (CAC) is a key number. A CAC between $50 and $150 per member is common for a new facility. Aim for a customer lifetime value that is at least three times your CAC.

Here are 3 immediate steps to take:

• Set up and fully populate your Google Business Profile.
• Draft a "Founder's Club" email offer for your first 50 sign-ups.
• Calculate your target Customer Acquisition Cost based on your membership pricing.

Step 9: Set your pricing strategy

Establish your core pricing model

Most clubs blend pay-per-play with memberships to attract different players. You might set drop-in fees between $10 and $20 for a two-hour session. This model is great for casual players and generates immediate cash flow without commitment.

For more stable revenue, you can introduce tiered memberships. A basic monthly pass for unlimited open play could be $80 to $120. A premium tier at $150 might add perks like advance booking, guest passes, or discounts on lessons and league fees.

A frequent misstep is to set your prices based on the local park district courts. Remember, you offer a premium experience with climate control and better amenities. Your pricing should reflect that value. Aim for a 60-70% gross profit margin on court time.

Price your other services

Your pro shop and lessons are also important profit centers. You should apply a 40-50% markup on retail items like paddles and apparel. For private lessons, the club typically keeps 25-35% of the instructor's fee. If a coach charges $60 per hour, your facility earns $15 to $21.

You can also bundle services. For example, offer an "Intro to Pickleball" package for $99 that includes a beginner clinic, a rental paddle, and one month of basic membership. This is an effective way to convert new players into long-term members.

Here are 4 immediate steps to take:

• Draft two membership tiers with specific prices and benefits.
• Call two competing private clubs to confirm their drop-in and monthly rates.
• Calculate your facility’s cut for a private lesson priced at $70 per hour.
• Create one "Intro to Pickleball" package with a bundled price.

Step 10: Maintain quality and scale your operations

Measure your performance

You should track your court utilization rate. Aim for 60-70% during peak hours. Also, monitor customer retention. A good goal is to keep 75% of your members after their first six months. These numbers show if your business is healthy.

You might want to use a Net Promoter Score (NPS) survey quarterly to gauge satisfaction. A score over 50 is strong. Maintain quality with daily court sweeps and weekly equipment inspections. This prevents small issues from becoming bigger problems.

Know when to grow

With your quality checks in place, you can plan for growth. A common mistake is expanding too soon. Wait until your court utilization consistently hits 80% during peak hours before you think about adding more courts or a new location.

Hiring should also be data-driven. A good rule of thumb is to add a new front desk employee for every 100 new members. For instructors, consider hiring another certified pro when your current coaches are 85% booked for two straight months.

As you expand, your booking software becomes even more important. Platforms like CourtReserve can manage larger member databases and even multiple locations. This helps you scale without letting customer service slip.

Here are 4 immediate steps to take:

• Create a weekly checklist for court and equipment maintenance.
• Set up a quarterly Net Promoter Score (NPS) survey for your members.
• Define the peak-hour utilization rate that will trigger an expansion plan.
• Review your booking software’s reporting features to track customer retention.

You have the roadmap to launch your pickleball business. Remember, the best clubs build a strong community, not just great courts. Focus on the player experience, and you will be well on your way to building a successful venue.

To keep things simple from the start, consider how you will take payments. JIM lets you accept cards with just your smartphone for a flat 1.99% fee, no extra hardware needed. It's a smooth way to handle sales. Download JIM and you are set.