Analyzing growth opportunities is one of the most important responsibilities of a Club Director and business owner. Growth for the sake of growth can damage a club. Failing to act on the right opportunities can be just as harmful. Over the past six years, our club has expanded its teams, locations, programs, staff, and events. While it may appear that we consistently say yes to expansion, one of the most valuable lessons we have learned is when to say no.

Below is the framework we use to evaluate whether a growth opportunity is worth pursuing.

To operate a quality volleyball program, club, or event, six components must be in place:

  • Courts
  • Coaches
  • Demand
  • Resources
  • Return on Investment
  • Alignment with the club’s strategic goals

Recently, we were approached about expanding a youth program into a new facility located approximately 20 minutes east of one of our satellite clubs. The facility asked if we wanted to secure additional court space. We evaluated the opportunity using the six components outlined above.

Courts

The facility had available courts, but availability alone is not sufficient. We negotiated to ensure access to the right number of courts, on the days and times required, at a rate that aligned with our financial model. In this case, the terms worked. In many markets, securing court space is one of the most challenging barriers to growth.

Coaches

This was a more complex factor. The facility was located in a new community where we did not have an established coaching base. We needed to identify qualified Coaches who aligned with our standards and culture.

Our Youth Director leveraged existing Coaches at other locations to generate referrals within the new community. After interviews, background screenings, and on-court training, we built a coaching staff capable of delivering a quality experience consistent with our brand.

Demand

We were confident demand existed. Families in the area had previously contacted us about programming closer to home, and the new facility had received similar feedback from families in other sports requesting volleyball opportunities.

When demand is uncertain, research is essential. Speak with community members, assess competing programs, and evaluate whether the market can support the offering. Without demand, even a well-designed program will struggle to gain traction.

Resources

Time is limited for every Club Director and business owner. Even when courts, Coaches, and demand are present, launching a new program requires administrative oversight, marketing, registration management, parent communication, and Coach supervision.

In this case, we were expanding an existing youth model, allowing us to scale established systems rather than build from scratch. However, it is always better to delay expansion than to launch a program without the infrastructure to support it at a high level.

If one of the first four components is missing, that does not automatically eliminate the opportunity. It becomes a problem-solving exercise:

  • Can additional court space be secured?
  • Can new Coaches be recruited and trained?
  • Can demand be generated or the program adjusted to better meet community needs?
  • Do we have the internal capacity to execute effectively?

Sometimes the answer is no. We have declined events due to lack of court space and postponed programs because we did not have the right Coaches. That does not mean the idea is permanently off the table. It simply means the timing is not right.

Return on Investment

Return on investment must be evaluated from both financial and strategic perspectives.

From a financial standpoint, we target cost of goods sold at no more than 50 percent of total revenue. Cost of goods sold typically includes coaching, court rental, and apparel such as camp shirts. For example, if a camp generates $2,500 in revenue, we aim to limit these variable expenses to $1,250.

Fixed expenses, including marketing and administrative labor such as website updates, social media promotion, registration management, Coach hiring, and parent communication, are generally targeted at approximately 20 percent of revenue. This structure allows for a 30 percent operating margin.

Not every opportunity is measured purely in profit. Some initiatives are designed for exposure, brand expansion, or long-term participation growth. Our Free Summer Kick-Off Clinics are one example. These clinics generate no revenue and typically operate at a loss. However, they serve as a strategic marketing initiative.

We measure return on these clinics through new contacts acquired, new athlete participation, and conversion rates into paid camps and training programs. The associated loss is allocated as a marketing expense within our annual budget.

Alignment with Strategic Goals

Alignment with strategic goals is the most important factor in evaluating growth opportunities. Clear strategic priorities ensure consistency in decision-making and prevent resource dilution.

If grassroots growth is a priority, opportunities within the 12-and-under age groups should carry greater weight. The challenge is narrowing the focus to three short-term strategic goals and committing to them.

Sustainable growth requires discipline. One of the most critical leadership skills a Club Director can develop is the ability to say no. When a growth opportunity aligns with strategic goals and satisfies the other five components, the decision becomes clear. When it does not, restraint protects the long-term health of the club.

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About the Author

Emily is the former Executive Director of The Academy Volleyball Club in Indianapolis, Indiana.