indoor play centre business plan sample

Indoor Playground Business Plan Template

Written by Dave Lavinsky

Indoor Playground Business Plan

You’ve come to the right place to create your Indoor Playground business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their indoor playground businesses.

Below is a template to help you create each section of your Indoor Playground business plan.

Executive Summary

Business overview.

Fun Space is a startup indoor playground business located in Kansas City, Missouri. The company is founded by Christine Gregory, an indoor playground manager with over ten years of managerial experience working at KC Indoor Play. Christine has garnered a reputation for being a positive role model for her employees and a dedicated leader. She is confident that her ability to effectively manage a team of employees, build rapport with customers, and maintain a fun, safe, and profitable operation will help her to quickly attract customers and employees to her new indoor playground. Christine plans on recruiting a team of highly qualified professionals to help manage the day to day complexities of running an indoor playground – marketing and sales, child supervision, party and event hosting, playground maintenance, and financial management.

Fun Space will provide a unique indoor play environment for children ages 4-12 and a quiet room for parents to enjoy some downtime. The Fun Space indoor playground will be the ultimate choice in Kansas City for parents looking for a clean, safe, and educational option for their kids.

Product Offering

The following are the products and services that Fun Space will provide:

• Open Play Sessions
• Children’s Parties
• Classes/Guided Activities
• Drop-In Daycare
• Quiet Room for Parents
• Retail: Toys and Games
• Snacks and Beverages

Customer Focus

Fun Space will target parents and caregivers of children ages 4-12 in Kansas City. The company will target parents who are looking for a fun way for their children to develop physical fitness and social skills while participating in educational activities. The company will also target parents looking for a hassle-free party venue to host their childrens’ birthday parties or other events. No matter the customer, Fun Space will deliver the best service, pricing, and peace of mind that their children will have fun in a clean, safe, and welcoming environment.

Management Team

Fun Space indoor playground will be owned and operated by Christine Gregory. She has recruited her former assistant manager, Eric Nichols, to help manage the indoor playground and operations.

Christine Gregory is a graduate of the University of Missouri with a Bachelor’s degree in Business Management. She has been working at a local indoor playground company for over a decade. Christine has garnered a reputation for being a positive role model for her employees and a dedicated leader. She is confident that her ability to effectively manage a team of employees, build rapport with customers, and maintain a fun, safe, and profitable operation will help her to quickly attract customers and employees to her new indoor playground.

Eric Nichols has been Christine Gregory’s loyal assistant manager for over five years at a local indoor playground. Christine relies strongly on Eric’s reliability, organizational skills, and commitment to excellence in customer service that will be essential for the new indoor playground to run smoothly.

Success Factors

Fun Space will be able to achieve success by offering the following competitive advantages:

• Friendly and highly qualified staff of professionals trained in childcare, safety, early childhood education, and physical fitness who will supervise children and lead group activities.
• Wide range of activities and services available to exceed the expectations of both parents and children.
• Fun Space indoor playground offers the best pricing in Kansas City. The pricing structure provides the most options for parents and is more cost effective than the competition.

Financial Highlights

Fun Space indoor playground is seeking $250,000 in debt financing to launch its indoor playground. The funding will be dedicated towards securing the indoor playground space and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs. The breakout of the funding is below:

• Indoor playground build-out: $50,000
• Equipment, supplies, and materials: $30,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for Fun Space indoor playground.

Company Overview

Who is fun space.

Fun Space is a newly established indoor playground in Kansas City, Missouri. Fun Space will provide the best indoor play options for children ages 4-12. The indoor playground will focus on fun, educational activities for kids that will support their physical fitness and social development. Fun Space will also offer services for parents including a quiet room that they can retreat to for a little downtime, to get some work done, or to watch their kids play. There will be guided activities for parents to do with their kids and educational classes for each age group. In addition to its daily activities, Fun Space will also host birthday parties and other events on the weekends.

The indoor playground will be staffed with professionals highly qualified and experienced in childcare, safety, education, and fitness. Fun Space staff remove all concerns of parents by providing a welcoming environment that is safe, clean, and educational. Fun Space indoor playground will be the ultimate fun choice for children and value for parents.

Fun Space indoor playground History

Fun Space is owned and operated by Christine Gregory, an indoor playground manager with over ten years of managerial experience working at KC Indoor Play. Christine is a dedicated leader with an ability to effectively manage a team of employees, build rapport with customers, and maintain a fun, safe, and profitable operation. These skills will help her to quickly attract customers and employees to her new indoor playground.

Since incorporation, Fun Space indoor playground has achieved the following milestones:

• Registered Fun Space, LLC to transact business in the state of Missouri.
• Has been approved for all required licenses and permits to run an indoor playground.
• Has a contract in place to lease a 10,000 square foot facility.
• Reached out to multiple playground equipment companies to get quotes and begin the design process.
• Began recruiting a staff of accountants, marketers, childcare providers, and other indoor playground personnel to work at Fun Space.

Fun Space indoor playground Services

• Daily Open Play Sessions

Industry Analysis

The indoor playground industry in the United States is valued at $658M with an estimated 667 establishments in operation across the nation. Major market segments include families with children ages 0-9, families with children ages 10-12, and families with children ages 13-18.

The main sources of revenue for industry operators are the entry fees and ticket sales, followed by food and beverage sales, and lastly merchandise sales. Market drivers include an increase in disposable income and fitness awareness. Indoor playground industry operators can maintain a competitive advantage by providing competitive pricing, extended hours, or activity options the competition does not offer.

Customer Analysis

Demographic profile of target market.

Fun Space will target parents and caregivers of children ages 4-12 in Kansas City. The company will target parents who are looking for a fun way for their children to develop physical fitness and social skills while participating in educational activities. The indoor playground will also target parents looking for a hassle-free party venue to host their childrens’ birthday parties or other events. No matter the customer, Fun Space will deliver the best service, pricing, and peace of mind that their children will have fun in a clean, safe, and welcoming environment.

The precise demographics for Kansas City, Missouri  are:

Customer Segmentation

Fun Space will primarily target the following customer profiles:

• Parents/caregivers of children ages 4-12
• Parents/caregivers looking for a party/event venue
• Parents/caregivers looking for a safe, clean, educational, fun place for their children to play

Competitive Analysis

Direct and indirect competitors.

Fun Space indoor playground will face competition from other companies with similar business profiles. A description of each competitor company is below.

KC Indoor Play

KC Indoor Play is a fun indoor playground for children ages 2-10. The indoor playground is conveniently located in a busy retail district in Kansas City, close to a childrens’ clothing shop and a toy store. KC Indoor Play is able to provide a wide variety of services for parents and children. The company’s offerings include educational classes for different age groups, free play, daycare, and an arcade. KC Indoor Play also hosts birthday parties and other events. KC Indoor Play’s promise is to deliver quality service that will keep both children and parents wanting to come back. KC Indoor Play’s team of experienced childcare professionals assures children are supervised by highly trained playground monitors to ensure safety and fun.

Kidz Play Place

Kidz Play Place is a Kansas City-based indoor playground conveniently located within a five- mile radius of three elementary schools. Kidz Play Place provides a unique indoor playground environment for children ages 4-13 that includes a small water park, arcade games, and trampolines. The owners of Kidz Play Place are former childcare professionals so they know what appeals to kids and parents alike. Parents can purchase open play time for their children in 2-hour time slots. Season passes are also available and will save customers 20% off their purchase.

Kary’s Kids Indoor Playground

Kary’s Kids Indoor Playground is a Kansas City indoor playground that provides educational games, classes, and events for children ages 0-10. The company is run by party-planning experts who have years of experience planning and hosting childrens’ parties. Parents can rest assured their children are well-supervised and the playground is safe and clean. Children can enjoy free-play sessions, an arcade, and educational games. Parents can also drop their children off for full-day and half-day supervision at Kary’s Kids daycare.

Competitive Advantage

Fun Space indoor playground will be able to offer the following advantages over their competition:

• Friendly, knowledgeable, and highly qualified staff to include professionals trained in childcare, safety, early childhood education, and physical fitness who will supervise children and lead group activities.
• Wide range of offerings available to exceed the expectations of both parents and children.

Marketing Plan

Brand & value proposition.

Fun Space indoor playground will offer the unique value proposition to its customers:

• Highly-qualified team of skilled employees to supervise open play sessions, lead educational activities, and host fun parties, all while ensuring the safety, security, and wellbeing of the children at all times.
• Unbeatable pricing – Fun Space indoor playground has multiple pricing options to give parents flexibility when choosing which services they want to purchase. Parents can pay per session, per week, or per season for open play sessions, daycare,  and educational programs. There is also an a la carte option for parents who want to purchase one specific activity or play area.

Promotions Strategy

The promotions strategy for Fun Space indoor playground is as follows:

Word of Mouth/Referrals

Christine Gregory has built up an extensive list of contacts over the years by providing exceptional service to her customers. Many of these contacts have communicated to Christine that they kept bringing their kids back to her previous place of employment because they were happy with the service she was providing. Once Christine advised them she was leaving to open her own indoor playground, many have expressed interest in coming to Fun Space and help spread the word of the new location to their friends and families.

Professional Associations and Networking

Fun Space indoor playground will become a member of professional associations such as the National Indoor Playground and Cafe Association and the Association of Play Industries. The company will focus networking efforts on expanding its customer base.

Print Advertising

Fun Space indoor playground will invest in professionally designed print ads to display in programs or flyers at industry networking events, and to put in magazines, newspapers, and direct mailers.

Website/SEO Marketing

Fun Space indoor playground will employ an in-house marketing director to design and maintain the company website. The website will be well organized, informative, and list all the services the indoor playground will offer. The marketing director will also manage Fun Space’s website presence with SEO marketing tactics so that when someone types in the Google or Bing search engine “Kansas City indoor playground” or “indoor playground near me”, Fun Space indoor playground will be listed at the top of the search results.

Social Media Marketing/Influencer Marketing

The company will create social media accounts on multiple platforms including Facebook, Instagram, TikTok, and YouTube. The marketing director will manage the accounts and maintain an active presence to promote the playground. Fun Space will recruit social media influencers such as busy parents who have a loyal following on social media  to help promote the indoor playground.

The pricing of Fun Space indoor playground will be moderate and on par with competitors. However, the company will offer a wider variety of pricing packages and options to give customers flexibility so they feel they receive value when purchasing the company’s services.

Operations Plan

The following will be the operations plan for Fun Space indoor playground.

Operation Functions:

• Christine Gregory will be the Owner and Manager of the company. She will oversee all staff and customer relations. Christine has spent the past year recruiting the following staff:
• Eric Nichols – Assistant Manager who will co-manage the staff and oversee the day to day operations of the playground.
• Brandon Scott – Bookkeeper/Accountant who will provide all budgeting, accounting, tax payments, and financial reporting.
• Debra Alexander – Marketing Director who will provide all sales, marketing, and PR campaigns.
• Brian Baker – Event Coordinator who will plan and oversee all parties and events hosted by Fun Space.

Milestones:

Fun Space indoor playground will have the following milestones complete in the next six months.

9/1/2022 – Finalize contract to lease indoor playground space.

9/15/2022 – Finalize personnel and staff employment contracts for the management team.

10/1/2022 – Finalize contracts with playground equipment suppliers.

10/15/2022 – Begin build-out of the indoor playground.

11/22/2022 – Begin networking at industry events and implementing the marketing campaign.

12/1/2022 – Fun Space indoor playground opens for business.

Christine Gregory is a graduate of the University of Missouri with a Bachelor’s degree in Business Management. She has been working at a local indoor playground for over a decade. Christine has garnered a reputation for being a positive role model for her employees and a dedicated leader. Christine is confident that her ability to effectively manage a team of employees, build rapport with customers, and maintain a fun, safe, and profitable operation will help her to quickly attract customers and employees to her new indoor playground.

Eric Nichols has been Christine Gregory’s loyal assistant manager for over five years at the former indoor playground. Christine relies strongly on Eric’s reliability, organizational skills, and commitment to excellence in customer service that will be essential for the new indoor playground to run smoothly.

Financial Plan

Key revenue & costs.

The revenue drivers for Fun Space indoor playground are the indoor playground fees that will be charged for open play sessions, classes, toys, snacks, and parties. Customers will be able to choose from a variety of pricing options including tiered packages, a la carte, and season passes.

The cost drivers will be the overhead costs required in order to staff an indoor playground. The expenses will be the payroll cost, rent, utilities, supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Number of 30-minute sessions per month: 6,500
• Average fees per month: $60,000
• Office lease per year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, indoor playground business plan faqs, what is an indoor playground business plan.

An indoor playground business plan is a plan to start and/or grow your indoor playground business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your indoor playground business plan using our Indoor Playground Business Plan Template here .

What are the Main Types of Indoor Playgrounds?

There are a number of different kinds of indoor playgrounds, some examples include: Bouncy Structures, Trampoline Park, and Variety Entertainment.

How Do You Get Funding for Your Indoor Playground Business Plan?

Indoor playgrounds are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. This is true for a business for an indoor playground or a play cafe business plan.

What are the Steps To Start an Indoor Playground Business?

Starting an indoor playground business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop An Indoor Playground Business Plan - The first step in starting a business is to create a detailed indoor playground business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your indoor playground business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your indoor playground business is in compliance with local laws.

3. Register Your Indoor Playground Business - Once you have chosen a legal structure, the next step is to register your indoor playground business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your indoor playground business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Indoor Playground Equipment & Supplies - In order to start your indoor playground business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your indoor playground business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

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Indoor Playground Business Plan Sample

OCT.09, 2014

Indoor Playground Business Plan for Starting Your Own Business

Do you want to open up a child recreational center such as an indoor playground? Providing an opportunity for children to play and grow in a healthy and safe environment is no doubt a business which being profitable is interesting too. Though the business doesn’t require any specific knowledge or skillset, however, the importance of having good management skills can’t be disregarded. If you think you responsible enough to run a challenging business like this, you must start making your kids indoor playground business plan . To help you we are providing here a sample business plan indoor playground for a child recreational center startup named, PlayLand.

Executive Summary

2.1 the business.

PlayLand will be a modern indoor center for children to enjoy different activities. The center will be based in Dallas and will be owned by a lady, Kate Dench. PlayLand will be providing several opportunities to children and teens to enhance their mental and physical capability under the supervision of highly trained staff.

2.2 Management of Indoor Playground

Managing a child playing center is no doubt a time-consuming job, that’s why Kate has decided to hire a general manager to help her in running the business. Following a stepwise approach, she has decided to make a business plan first before jumping in the preparations. Though many business plans for indoor playgrounds are available on the web, Kate will seek the services of experts to help her in making a modern indoor playground business plan .

2.3 Customers of Indoor Playground

Instead of thinking about how to start indoor playground business , researching on who will be your customers can be a much better idea. Knowing your customers can help you in deciding many things related to your startup such as your services, your product pricing, and your advertisement strategy for business plan . As for PlayLand, the customers will mostly be the parents. But, since the center will be providing some games for teens too, we expect that some youngsters will also be coming to our place.

2.4 Business Target

Defining targets can help one in thriving in the business area with even more enthusiasm. In this sample spreadsheet for indoor playground business plan we are mentioning a few business targets of PlayLand. The center aims at balancing the startup costs with the profits earned by the end of the two years of the launch while earning a profit margin of $10k per month by the end of the startup year.

Company Summary

3.1 company owner.

Kate Dench will be the owner of PlayLand. Kate has done bachelors in Sociology from Stanford University and has been teaching in a high school for a year. Kate is a hardworking person and strongly believes that loyalty with the customers and work is the only way that can lead her business to the topmost position.

3.2 Why the indoor playground business is being started

Kate wanted to secure her future by investing her money in establishing a business that can benefit her for a long time. So, following her graduation, she thought upon all her interests and decided to start an indoor playground business . She has several ideas about how to make a kids play area that’s why she can do this in a much better way than anybody else.

3.3 How the indoor playground business will be started

Following a stepwise approach, Kate has decided to hire a business plan writer to make a business plan for her. She has already rented a building with 4 rooms and a large lounge along with a playing field. Now, she will have to convert it in a modern indoor play area by installing different games and playthings.

Kate wants to get each and everything settled on time that’s why she has started to invest her several hours on work from now. She has even contacted the store owners from whom she will be purchasing the required equipment. Kate will also be hiring the required staff one week before the launch. In this sample business plan on how to start indoor playground business , we’ll later be listing the exact number of employees with their job descriptions.

The costs for of startup are as follows:

The startup requirements are as follows:

Services for Customers

If you are thinking about how to open a kids indoor playground , you must first decide which services you will be able to provide. Because if you don’t have enough capital to support basic activities in your playhouse, you won’t be able to earn a big name. So, before starting your own childrens indoor playhouse , it is wise to think whether you can provide the desired services or not.

Though Kate is not starting her business at a very large scale, she has decided to provide the following services:

• Active Play: There will be playrooms for children of ages 3 to 10. The rooms will be beautifully decorated and will contain various toys, books and things like tricycles to be used by the children.
• Art Classes: Children will be provided simple art classes in which they could enjoy music, learn to sing and dance, learn drawing, learn to paint and enjoy playing the musical instruments.
• Craft Hour: In craft hour children will be asked to complete a given project such as weaving a butterfly. This class will serve for two purposes – to engage children in a healthy activity and to enhance their creativity.
• Group Activities: Under strict supervision, children will be given a chance to enjoy group activities such as racing tricycles, playing carrom board, playing badminton or play on the see-saw with each other.
• Activities for Teens: Teens will be allowed to play table tennis and badminton in the center. Moreover, they will be given a well-decorated area to celebrate their birthdays or to hold any parties.
• Eatables: There will be a snack bar from where the children could get sandwiches, snacks, juices, and tea.

Marketing Analysis of Indoor Playground Business

Before taking an indoor playground startup , you must search for a market which has the potential to bear this type of startup. Exploring different markets before starting your business is essential because no one will acquire your services if they have already been availing the services of a similar and more stable business. So, it is very important to carry out a research on the market in which you will be going to serve. Reading several business plans for indoor playground can help you in knowing about different markets as well as to know what others are doing in this business.

In the case of PlayLand, Kate has leased a building which has almost no other child recreational center in the vicinity, so she can attract a wider audience easily.

5.1 Market Trends

The indoor playgrounds have a high demand at the places where the population of children is high. If you are selecting the location for your business wisely, you will not be at loss as opening a child recreational center provides many opportunities to grow.

5.2 Marketing Segmentation

Knowing your customers and their demands is the first step to take if you want to succeed in any domain. The market segmentation done for PlayLand is general and is given here for anyone who wants to get a notion of which sort of people they will have to face.

The detailed marketing segmentation of our target audience is as follows:

5.2.1 Working Class

The first group of our customers will be the parents who have to go to their jobs or have to do certain works in the evening. We are sure that the parents if getting satisfied with our performance, will come to us again and again. And we expect their children to say themselves that they want to stay with us and play and enjoy with their age-mates.

5.2.2 Children of ages 10-14

The children of this age group will also be our target customers as they will be coming to us to play physical and mental games with their friends. They will also be availing our services to held parties.

5.2.3 Teens

The last category includes teens who will come to our center either with a sibling or to celebrate some event with their friends. We will soon be providing more physical activities for teens so that they have very much tasks awaiting them in PlayLand.

5.3 Business Target

Kate’s target is to make her indoor PlayLand, the best playground in her vicinity. While providing reliable and honest service, Kate wants to set up her business and all matters in the first year so that she can move forward to make her children play center’s name a brand name. She also wants to add activities for children by the end of the first year. And she also aims at renting out a neighboring building to provide a similar facility for teens who will need a greater space and proper ground to enjoy themselves.

The financial targets, however, are as follows:

• Balancing startup costs and investments within the first year of launch
• Earning a profit margin of $10k by the end of the second year and increasing the profit margin by almost 200 percent by the end of the third year

5.4 Product Pricing

The prices of PlayLand will neither be very low nor too high. Kate has decided to take reasonable charges in exchange for her services because she thought that if one has to compromise on money – one will automatically be compromising somewhere on quality. As Kate has a great competitive aspect due to her location, she doesn’t need to keep her prices low to attract the customers.

After you have explored various indoor playground business ideas and have succeeded in planning and creating play spaces , you have almost done what was required to start your indoor playhouse. Now the next step is a little difficult and includes the implementation of wise techniques to bring your customers to your doorstep. In this business development plan for an indoor playground , the ways adopted by Kate to be different and popular are given here.

6.1 Competitive Analysis

PlayLand will be just one of its type in the neighboring vicinity, which makes it easier for us to attract the target customers. Our biggest competitive advantage is our reliable service. We will be treating your kids like our kids. We will offer just physical games because parents usually don’t want their kids to associate their enjoyment with television and the internet. Moreover, children will be under a kind but strict supervision, and they will never get a chance to fight or quarrel with each other.

High Quality Business Plan and Professional Support

It was amazing to work with OGS Capital for our business plan. They promptly responded our enquires and delivered document on time.The document was well organized high quality and content.We succeded with Alex and his team support. We thank you guys again for professional approach and easy communication.

Lastly, we will be having exceptional customer service, Kate herself will be interacting and coordinating with parents to satisfy them that their kids are treated under love and care.

6.2 Sales Strategy

To advertise our services, we will:

• Share the pictures of our services on our center’s website and social sites
• Distribute our pamphlets in our neighboring areas
• Provide 20% discount for the first month of our launch
• Provide 15% discount to our regular customers
• Provide free eatables to children for the first week of our launch

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

If you are planning to open an indoor baby play area but are worried about the costs of playroom equipment, be at ease.

Personnel plan

As child recreational center is a sort of business which can be started without a huge investment, you can start it with limited indoor playground equipment . You will require children soft play equipment as the kids of ages between 3 to 7 are more inclined towards gaming with soft indoor play equipment .

However, for teens and for children of the age group 8 to 12, you will have to buy somewhat sports material like rackets, balls and an indoor playground net .

7.1 Company Staff

To meet the standards, Kate has set for her business, she herself will be coordinating with the parents. However, she will be hiring the following people for other tasks:

• 1 General Manager to manage the overall operations
• 2 Accountants to maintain financial records
• 1 Sales Executive responsible for marketing
• 5 Female Workers to supervise the children
• 2 Cleaners to ensure a hygienic environment
• 1 General Assistant for day-to-day work
• 1 Manager to operate the store
• 2 Security Guards
• 1 Web Developer to manage the center’s websites

7.2 Average Salary of Employees

Financial plan.

The last thing which you must have to do is to get written a proper financial plan that can demonstrate how much do playgrounds cost and how you will be able to afford that. If you are worried about how much does playground equipment cost or how much do indoor playgrounds make , just seek help from a financial advisor. A financial expert can help you figure out where to invest and how to earn a profit despite providing discounts and packages to the customers. A financial expert also provides you a plan to recover loss if you somehow get your business stuck in a crisis or if you are failed in making desired profits.

In case, you have a little know-how of a financial plan and you want to make it by yourself, you must first read other’s business plans available on the web. The <strong>sample startup budget for child care center<strong> and a recreational lot that is PlayLand is given here totally free for your help.

8.1 Important Assumptions

8.2 brake-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

Download Indoor Playground Business Plan Sample in pdf

Professional writers OGS capital specialized also on the theme such as baby boutique store business plan , babysitting business strategy plan , bouncy castle business plan , professional daycare business plan , summer camp business plan model , business plan toy store and etc.

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Introduction

The definition of indoor playground, what makes an indoor playground business plan necessary, indoor playground industry statistics, how can your indoor playground business plan use market research, is indoor playground profitable, what general themes do indoor playgrounds have, what is required to begin creating your indoor playground business plan.

How to Ensure Your Indoor Playground’s Safety?

Indoor Playground Rules and Regulations

Ways to maintain your playground.

Ways to Improve Your Indoor Playground

The Ultimate Guide to Your Indoor Playground Business Plan

This is the complete manual for creating a business plan for your indoor amusement park.

 If you are a newbie in the indoor playground industry and are wanna start your indoor playground business plan but don’t know how to start. Then why not start with the advice in this guide to provide you with a better foundation to enter the indoor playground industry? This guide introduces you to the indoor playground business plan from multiple dimensions and aims to provide a comprehensive content guide.

What is an indoor playground? An indoor playground  is a recreational space that provides recreation and entertainment for children, and its customizability and playability have made it increasingly popular in the entertainment industry. Children can have a fun and educational experience in an indoor playground and gradually build their knowledge of their surroundings while playing.

Indoor playgrounds are a lucrative business. It satisfies children's play needs while allowing the business owner to return a profit. Additionally, for the business owner, its benefits include bringing in a steady customer base, ancillary revenue opportunities, increased employment opportunities, community building, and the ability to operate year-round.

According to the data, the indoor playground market size is expected to grow at a CAGR of 9.79% from 2021 to 2028 to reach USD 42.64 billion. This means that the indoor playground industry is growing at a rapid pace. Hence starting an indoor playground business plan is an up-and-coming option.

After you decide to launch an indoor playground business plan, you can conduct market research to gather and examine data regarding your target market, clients, and rival businesses. Specifically, it can include the local consumption level and population density, relevant data about other indoor playgrounds in the neighborhood, and so on. It is beneficial for you to lay a good foundation for the stages that follow, such as choosing a location and determining the park's target audience.

When it comes to indoor playground profits, it is indeed a crucial concern. The answer is positive – indoor playgrounds are a profitable business. Research indicates that the indoor entertainment market reached $24.35 billion in 2020, with an expected annual growth rate of 10.3% through 2028. This signals a rising demand in the indoor playground market. Revenue primarily comes from tickets, merchandise, food and beverages, and advertising.

Generally, the most common themes for indoor playgrounds include forest, ocean, candy, pirate ship, macaron, circus, space, sports, and more. Each theme will differ in the main colors, style of attractions, and choice of stickers. For additional inspiration, you can refer to our Themed Playground Equipment . If you have other creative ideas, feel free to communicate with us. We offer professional customization services to turn your imaginative ideas into reality.

1.Find a Location

Choose areas with large passenger flow, convenient transportation, and a high density of children to ensure that your indoor playground can have enough audiences. This can be family entertainment centers, shopping centers, child care centers, restaurants, community centers, churches， fitness centers, etc. And of course, it's related to the cost of your venue.

2.Identify target customers

Who is the intended audience for your indoor playground? Smaller toddlers or kids who enjoy taking on new challenges? That's something you have to think about. The target audience of your indoor playground also determines the type of indoor playground equipment and indoor layout you need to buy.

3.Planning your budget

On average, costs range from $50,000 to $500,000. This depends on many factors, including your site costs, indoor playground equipment costs, transportation costs, installation costs, insurance costs, operating costs, and labor costs. You can refer to our budget list for specific figures: https://www.dreamlandplayground.com/starting-an-indoor-playground-business

4.Design Your Indoor Playground

This must begin after you have determined your exact venue. Send your site dimensions to the designer, who will plan the appropriate interior layout based on your actual site size. The design process involves choosing the overall style and theme of the indoor playground and selecting the right indoor playground attractions， materials used, and placement. You need to be involved in the design process so that the designer can better design the best solution according to your wishes.

5.Buy indoor playground equipment

What are the indoor playground attractions divided into? According to the function, the attractions of indoor playgrounds are usually divided into:

Play Structure:  The most common type of indoor playground, consisting of frames. Contains steps, tunnels, some soft obstacles, etc. It is also the attraction with the most space for creativity. Numerous options exist based on your requirements and circumstances.

Slide: The Indoor Playground's most thrilling feature. It is also possible to modify the slide's style to fit the theme.

Ball Pit:  Consists of a large number of plastic balls. Often combined with a slide to make a more interesting attraction.

Climbing Structure:  Curious children find it hard to resist the thrill of climbing. Children's coordination abilities can be greatly improved by using this attraction.

Soft Play Area:  A play area more suitable for younger children. The facilities included are soft obstacles. Children can burrow around in a castle made of soft blocks.

The specific choice of attractions also needs to be adjusted according to the ages of your indoor playground audience, indoor playground layout, theme, cost, and other factors.

6.Obtain business licenses 

To operate in a state, the majority of small enterprises simply require one or two licenses. However, since indoor playgrounds involve children, your business may require multiple state-specific licenses. To safeguard children from poor quality operations, licensing standards for firms that relate to children are frequently more specific and detailed.

7.Install the indoor playground

After starting your indoor playground business plan, it is very important to find a reliable supplier. You can either get the installation drawings from your equipment supplier and install it yourself, or the supplier can arrange for workers to come to your venue to install it. The latter might provide your indoor playground business with a great deal of convenience.

Get in touch with us if you're stumped about creating an indoor playground and don't know where to begin. Dreamland Playground can provide you with a full range of services, such as design, manufacture, installation, and post-purchase assistance.

8.Recruit staff

An indoor playground can't afford to be without employees. Their jobs include charging at the entrance, instructing children alongside certain programs, cleaning and inspecting the indoor park regularly, and so on.

9.Marketing and Branding Your Indoor Playground

Everything is in place, but don't forget that you still need to market your indoor playground, customers won't automatically come just because you're sitting at home. Your indoor playground needs to be attractive and well-known enough to attract a steady stream of visitors. There are many ways to advertise, such as:

①Design a logo for your indoor playground to make it more representative

②Establish a website, regularly update indoor playground activities and promotions on the website, and set up a convenient online ticket purchase system

③Establish social media accounts and publish content related to indoor playgrounds. It can be daily play, cleaning and maintenance videos, reminders of promotional activities, etc.

④Online advertising marketing

⑤Send flyers or post advertisements around the indoor playground to attract potential customers nearby.

How to Ensure Your Indoor Playground’s Safety?

Your indoor playground business plan should take safety into account while designing. After all, your customers are children, and children are more likely to get hurt during play than adults with self-control. This requires:

1.Post safety tips and precautions in the park

2.Arrange staff to maintain order and ensure the safety of children

3.Routine inspection

4.Install the equipment under professional guidance

5.Emergency Preparedness

6.Ensure the use of age-appropriate equipment

7.Exit and entrance instructions

8.Buy amusement equipment that meets standards

In addition to the things that your indoor park does for itself. Don't forget to make player rules and regulations for your indoor playground, which will help the indoor playground stay alive for a long time.

1.Players are advised to wear appropriate clothing and avoid carrying sharp decorations

2.For health and safety reasons, please remove your shoes before entering the playing area. All participants are required to wear socks.

3.Please follow staff instructions to ensure safe and proper use of playground equipment.

4.Some programs may have age or height restrictions. For everyone's safety, kindly abide by these limitations.

5.Restrictions on children's age and height

6.Maintain a distinction between play and recreation areas. Keep play areas clean and safe by prohibiting snacks and beverages.

7.No climbing on walls or nets in non-climbing areas

8.It is recommended that young children play with an adult watching over them to make sure they are safe and happy.

9.Please keep all toys in the designated play areas and do not take toys out of these areas.

10.Smoking is strictly prohibited in the indoor playground.

11.Please make sure your child does not have any illnesses that could infect other children.

1.Examine all play equipment frequently for indications of corrosion, deterioration, or loose parts.

2.Sanitize the indoor environment, play equipment, and toys regularly to maintain environmental hygiene. Deep clean play equipment that tends to harbor dirt, especially items such as ball pits, tunnels, and crawl spaces.

3.Repair and replace broken parts to avoid safety problems due to damaged parts

4.look out for edges of any equipment to avoid injury.

5.Keep the humidity and temperature in your indoor playground at ideal levels.

6.Record every cleaning and repair for easy verification later.

Ways to Improve Your Indoor Playground

1.Provide party services such as birthday parties to expand the business of involving customers in the indoor playground.

2.Add a café or snack bar to provide a space for customers to rest and increase revenue simultaneously.

3.Sell related theme peripherals to strengthen the brand memory of the indoor playground.

4.Holiday seasonal events to drive traffic

5.Referral program, old customers recommend new customers to spend, and can provide discounts and gifts. Increase customer retention rate while also attracting more new customers.

6.Appropriately add or adjust attractions and themes. Avoid a static environment leading to customer boredom.

7.Establish a customer feedback mechanism to improve the existing content of the park on time based on real customer feedback.

After reading this ultimate guide, you should already have an idea of how to start your indoor playground business plan. Processes include finding a location, identifying target consumers, planning a budget, designing the site and purchasing equipment, installing, recruiting staff, and advertising the indoor playground.

Still looking for a professional playground supplier ? Contact us and let us provide you with professional one-on-one service to turn your indoor park dream into reality. Dreamland Playground is committed to providing you with a full range of services, from consulting to design to production and installation, we will be your reliable partner. Through careful market research, a well-planned indoor layout, and selected play equipment, we help you refine your indoor playground business plan. Your indoor playground will become a happy place for children to grow up.

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Crafting a Successful Indoor Playground Business Plan: 10 Essential Elements for Entrepreneurs & Investors

Unveiling the blueprint for operational efficiency, revenue growth, and guest satisfaction

Opening or expanding an indoor playground or play center is an exciting venture, but success hinges on careful planning. A well-structured business plan not only guides your journey but also attracts investors. 

In this comprehensive guide, we'll delve into the ten crucial elements you must include in your indoor playground business plan. Whether you're an aspiring entrepreneur or seeking investment, these key components will set you on the path to operational excellence, revenue growth, and unparalleled guest satisfaction.

1. Market analysis: Understanding your playground's landscape

Before laying the foundation for your indoor playground, conduct a thorough market analysis. Explore the demand for indoor play spaces in your target location. Identify competitors, analyze their strengths and weaknesses, and discern market trends. This section should provide a clear snapshot of your playground's potential within the existing market.

Actionable steps:

• Identify target location demographics : Conduct in-depth demographic research to understand the age groups, income levels, and family structures in your target area.
• Competitor SWOT analysis : Perform a thorough SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) for each competitor to identify market gaps and potential areas of differentiation.
• Trendspotting : Explore emerging trends in indoor play spaces, from technology integration to themed experiences. Consider how these trends align with your vision.
• Local partnerships : Research potential partnerships with local businesses, schools, or community organizations to strengthen your market presence.

2. Unique selling proposition (USP): Setting your playground apart

Define what makes your indoor playground unique. Is it innovative attractions, themed zones, or exceptional services? A compelling USP not only attracts guests but also entices investors. Clearly articulate what sets your playground apart and why families will choose it over competitors.

• Themed zones and attractions : Develop detailed plans for unique themed zones and attractions within your indoor playground, ensuring they align with your target audience's interests.
• Exceptional services : Outline innovative services, such as personalized birthday packages, VIP memberships, or educational programs, that set your playground apart.
• Interactive elements : Incorporate interactive elements such as augmented reality games, interactive floors, or smart wristbands to enhance the overall experience.
• Storytelling : Craft a compelling narrative around your playground's theme, creating an immersive experience that resonates with families.

Read this next: 5 Captivating Indoor Playground Design Ideas

3. Target audience: Tailoring experiences to families

Understanding your target audience is paramount. Outline the age groups, interests, and preferences of the families you aim to attract. Tailor your offerings to meet their needs, ensuring a memorable and enjoyable experience for both children and parents.

• Age-specific offerings: Develop age-specific play areas and activities to cater to the diverse needs of children, from toddlers to pre-teens.
• Parent-focused amenities : Integrate amenities like comfortable seating, Wi-Fi, and a cafe to cater to parents, ensuring a family-friendly environment.
• Feedback loops : Establish regular feedback mechanisms, such as surveys or focus groups, to understand the evolving preferences of your target audience.
• Community engagement : Actively engage with local communities through events, sponsorships, or school partnerships to build a loyal customer base.

4. Business structure: Building a solid foundation

Define your indoor playground's legal structure. Whether it's a sole proprietorship, partnership, LLC, or corporation, choose a structure that aligns with your business goals. Clearly outline ownership details, responsibilities, and organizational hierarchy.

• Legal consultation : Seek legal advice to determine the most suitable business structure, considering liability, taxation, and ownership considerations.
• Operating agreements : Draft comprehensive operating agreements, clearly defining roles, responsibilities, and profit-sharing structures for all stakeholders.
• Insurance planning : Research and secure comprehensive insurance coverage, including liability insurance and coverage for potential property damage or injuries.
• Financial management software : Implement robust financial management software to track expenses, revenue, and overall financial health.

5. Financial projections: Charting the path to profitability

Investors and entrepreneurs alike seek a clear picture of your playground's financial future. Provide detailed financial projections, including startup costs, operational expenses, and revenue forecasts. Demonstrate a path to profitability over the short and long term.

• Detailed startup budget : Break down startup costs into categories, including equipment purchase, interior design, marketing, and personnel.
• Revenue streams : Clearly define multiple revenue streams, such as admission fees, membership plans , and merchandise sales. Read next: How Elevate Generated $600,000 in Membership Revenue in 4 Months
• Conservative forecasting : Present conservative financial forecasts, considering potential challenges and market fluctuations.
• Investor ROI : Clearly articulate the return on investment (ROI) expected over different timeframes.

6. Safety and compliance: Ensuring a secure environment

Safety is paramount in indoor playgrounds. Outline comprehensive safety protocols, risk management strategies, and compliance measures. Ensure your business plan reflects a commitment to creating a secure environment for children and peace of mind for parents.

• Safety protocols manual : Develop a comprehensive safety manual that outlines protocols for equipment maintenance, emergency procedures, and staff training.
• Regular inspections : Implement a routine inspection schedule for equipment, play areas, and facilities to ensure ongoing safety compliance.
• Certifications and licenses : Obtain all necessary certifications and licenses for operating an indoor playground, showcasing your commitment to safety.
• Emergency response plan : Clearly define and train staff on emergency response protocols, including evacuation procedures and communication plans.

Read this next: How to Manage Risk at Your Attractions Venue

7. Marketing and promotion: Generating buzz and footfall

Craft a robust marketing strategy to generate awareness and attract families to your indoor playground. Utilize a mix of online and offline channels, social media, influencer partnerships, and promotional events. Clearly outline how you plan to create a buzz around your opening and sustain customer engagement.

• Pre-launch campaign : Build anticipation with a pre-launch campaign, utilizing social media teasers, exclusive invites, and influencer partnerships.
• Opening events : Plan grand opening events with special promotions, discounts, and interactive activities to attract a large audience.
• Content marketing : Develop a content calendar for ongoing marketing efforts, including blog posts, videos, and social media content that showcases the playground's offerings.
• Loyalty programs : Implement loyalty programs or referral incentives to encourage repeat visits and word-of-mouth marketing.

8. Technology integration: Streamlining operations and enhancing experience

In the digital age, technology is a game-changer. Outline how you'll leverage technology to streamline operations, enhance guest experience, and gather valuable data. From online booking systems to interactive attractions, showcase your commitment to staying at the forefront of technological advancements.

• Online booking system : Implement an efficient online booking system that allows guests to reserve play sessions, birthday parties, and special events. Your online booking system should be optimized to increase conversions and spend per head! Read next: How Ninja Warrior UK Achieved Over 3 Million Bookings In 4 Years
• RFID technology : Explore RFID technology for seamless access control, cashless transactions, and tracking visitor behavior for data-driven decision-making.
• Data analytics tools : Invest in data analytics tools to gather insights on customer preferences, peak hours, and popular attractions, optimizing operational efficiency.
• Mobile app development : Consider developing a mobile app that enhances the user experience, provides information, and offers exclusive promotions.

Read this next: Visitor Management Systems: What Are They & How to Choose One

9. Customer feedback and improvement: A continuous loop

Customer satisfaction is the heartbeat of any successful business. Detail how you plan to collect and analyze customer feedback regularly. Showcase your commitment to a continuous improvement loop, addressing concerns, and evolving to meet the ever-changing expectations of your guests.

• Real-time feedback systems : Implement real-time feedback systems, such as in-app surveys or touchscreen kiosks, or event ROLLER’s Guest Experience Score , to capture immediate customer sentiments. But remember, the questions you ask and how you deliver this feedback system can have a meaningful impact on response rates and your ability to make informed decisions. Read next: How Flying Squirrel Saves Time & Resources By Collecting Feedback
• Data analysis for improvement : Regularly analyze customer feedback data to identify trends, areas of improvement, and opportunities for enhancing the overall experience.
• Staff training programs : Conduct ongoing staff training programs based on customer feedback, ensuring a customer-centric approach at all levels.
• Public acknowledgment : Acknowledge and publicly address positive customer feedback, showcasing your commitment to excellence.

10. Partnership and expansion strategies: Scaling the success

For entrepreneurs eyeing expansion and investors seeking growth potential, outline strategic partnership and expansion plans. Whether it's franchising, collaborating with complementary businesses, or venturing into new locations, demonstrate a clear roadmap for scaling your indoor playground's success.

• Franchise model : If applicable, develop a comprehensive franchise model, including franchise fees, support systems, and guidelines for maintaining brand consistency.
• Market research for expansion : Conduct thorough market research when considering expansion, identifying locations with high potential and minimal competition.
• Collaborative ventures : Explore collaborative ventures with businesses that complement your indoor playgrounds, such as food and beverage partnerships or educational tie-ins.
• Agile business model : Design an agile business model that allows for scalability, ensuring your indoor playground can adapt to changing market dynamics.

Crafting a robust indoor playground business plan is not just a formality; it's your roadmap to success. By incorporating these ten essential elements, you not only appeal to investors but also set the stage for operational efficiency, revenue growth, and guest satisfaction.

However, the journey doesn't end with a well-documented plan; it begins. As you embark on this exciting venture, consider how ROLLER can be your strategic partner in achieving these outcomes. From seamless ticketing to data analytics that drives operational efficiency, ROLLER empowers you to deliver a great guest experience. Get in touch to see how ROLLER can transform your indoor playground business.

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Indoor Playground Business Plan

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
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How to Write an Indoor Playground Business Plan?

Writing an indoor playground business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section of the business plan intended to provide an overview of the whole business plan. Generally, it is written after the entire business plan is ready. Here are some components to add to your summary:

Start with a brief introduction:

Market opportunity:, mention your services:, management team:, financial highlights:, call to action:.

Ensure you keep your executive summary concise and clear, use simple language, and avoid jargon.

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2. Business Overview

Depending on what details of your business is important, you’ll need different elements in your business overview. Still, there are some foundational elements like business name, legal structure, location, history, and mission statement that every business overview should include:

About the business:

Provide all the basic information about your business in this section like:

• The name of the indoor playground and the concept behind it like – children’s indoor playground, kids play center, themed playground, fitness playground, adventure playground, or children’s play area.
• Company structure of your indoor playground business whether it is a sole proprietorship, LLC, partnership firm, or others.
• Location of your indoor playground and the reason why you selected that place.

Mission statement:

Business history:, future goals:.

This section should provide an in-depth understanding of your indoor playground business. Also, the business overview section should be engaging and precise.

3. Market Analysis

Market analysis provides a clear understanding of the market in which your indoor playground business will run along with the target market, competitors, and growth opportunities. Your market analysis should contain the following essential components:

Target market:

Market size and growth potential:, competitive analysis:, market trends:, regulatory environment:.

Some additional tips for writing the market analysis section of your business plan:

• Use a variety of sources to gather data, including industry reports, market research studies, and surveys.
• Be specific and provide detailed information wherever possible.
• Include charts and graphs to help illustrate your key points.
• Keep your target audience in mind while writing the business plan

4. Products And Services

The product and services section of an indoor playground business plan should describe the specific services and products that will be offered to customers. To write this section should include the following:

List the equipment and facilities:

• Explain the amenities and play structures you intend to include in your indoor playground, such as trampolines, climbing walls, ball pits, slides, and so on. Provide information about your equipment’s safety features as well as your regular maintenance and cleaning schedule.
• Additional services: Think of providing extra services like food and drink, retail sales, or child care. By offering these added services, you can attract more customers and turn your indoor playground into a one-stop shop for families.

Overall, a business plan’s product and services section should be detailed, informative, and customer-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Develop your unique selling proposition (USP):

Determine your pricing strategy:, marketing strategies:, sales strategies:, customer retention:.

Overall, the sales and marketing strategies section of your business plan should outline your plans to attract and retain customers and generate revenue. Be specific, realistic, and data-driven in your approach, and be prepared to adjust your strategies based on feedback and results.

6. Operations Plan

When writing the operations plan section, it’s important to consider the various aspects of your business processes and procedures involved in operating a business. Here are the components to include in an operations plan:

Hiring plan:

Operational process:, technologies:.

By including these key elements in your operations plan section, you can create a comprehensive plan that outlines how you will run your indoor playground business.

7. Management Team

The management team section provides an overview of the individuals responsible for running the indoor playground. This section should provide a detailed description of the experience and qualifications of each manager, as well as their responsibilities and roles.

Key managers:

Organizational structure:, compensation plan:, board of advisors:.

Describe the key personnel of your company and highlight why your business has the fittest team.

8. Financial Plan

When writing the financial plan section of a business plan, it’s important to provide a comprehensive overview of your financial projections for the first few years of your business.

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:, financing needs:.

Remember to be realistic with your financial projections, and to provide supporting evidence for all of your estimates.

9. Appendix

When writing the appendix section, you should include any additional information that supports the main content of your plan. This may include financial statements, market research data, legal documents, and other relevant information.

• Include a table of contents for the appendix section to make it easy for readers to find specific information.
• Include financial statements such as income statements, balance sheets, and cash flow statements. These should be up-to-date and show your financial projections for at least the first three years of your business.
• Provide market research data, such as statistics on the size of the child services industry, consumer demographics, and trends in the industry.
• Include any legal documents such as permits, licenses, and contracts.
• Provide any additional documentation related to your business plans, such as marketing materials, product brochures, and operational procedures.
• Use clear headings and labels for each section of the appendix so that readers can easily find the information they need.

Remember, the appendix section of your indoor playground business should only include relevant and important information that supports the main content of your plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This indoor playground business plan sample will provide an idea for writing a successful plan, including all the essential components of your business.

After this, if you are still confused about how to write an investment-ready business plan to impress your audience, then download our indoor playground business plan pdf .

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Guide for Creating Business Plan

Frequently asked questions, why do you need an indoor playground business plan.

A business plan is an essential tool for anyone looking to start or run a successful indoor playground business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your indoor playground business.

How to get funding for your indoor playground business?

There are several ways to get funding for your indoor playground business, but one of the most efficient and speedy funding options is self-funding. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your indoor playground business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought options for startups.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your indoor playground business?

There are many business plan writers available, but no one knows your business and idea better than you, so we recommend you write your indoor playground business plan and outline your vision as you have in your mind.

What is the easiest way to write your indoor playground business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any indoor playground business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Indoor Playground Business Plan Template [Updated 2024]

Indoor Playground Business Plan

If you want to start a indoor playground business or expand your current business, you need a business plan.

The following business plan template and example gives you the key elements to include in a winning business plan for your indoor playground business.

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Below are links to each of the key sections of your indoor play area business plan: I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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Indoor Playground Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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Business plan: The ultimate guide for your indoor play park

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But why the business plan is so fundamental? Why devote time and energy to crafting a business plan for your indoor play park? This article will shed light on the crucial importance of such a plan, detail its key components, and guide you step-by-step in creating an effective plan. Whether you’re a newcomer or an expert in the world of indoor play parks , understanding the value of a solid business plan is your first step towards success in opening your indoor play park.

Follow the advice and strategies we’re about to share, and you’ll be able to concoct a plan that not only highlights the viability and profit potential of your indoor play park project but also attracts investors , optimizes resource management, and most importantly, ensures a safe and fun experience for your customers. Ready for this adventure? Let’s get started!

Why a business plan is essential for opening your indoor play park ?

Defining key objectives and strategies – the heart of your project

Consider your business plan as the compass for your indoor play park project . It’s not just a document; it’s the backbone of your venture. It starts with a clear definition of your objectives – whether they’re financial, operational, or customer-focused . These objectives aren’t mere ambitions; they are the beacons guiding you throughout, influencing every decision you make. From selecting the perfect location to deciding on the type of equipment, and crafting clever marketing strategies, every choice is a step closer to achieving the objectives set in your business plan.

Attracting investors – your ticket into the business world

In the ambitious venture of creating an indoor play park , wooing investors is often crucial. A well-structured and thoughtful business plan is your best ally. It proves that your project is well-considered, and you have a solid understanding of the market, finances, and challenges ahead. Investors look for promising projects with growth and profitability potential, and a convincing business plan is tangible proof that your project is worth their investment and trust.

Risk management – navigating an ocean of uncertainties

Every business entails risks, and indoor playgrounds and trampoline parks are no exception. These risks might be related to equipment safety, market fluctuations, or even evolving trends in family entertainment. A key element of your business plan is identifying and proactively managing these risks. Anticipating potential problems and devising strategies to mitigate them shows you have a realistic and prepared vision for your project. This might involve insurance, emergency plans, or strict safety policies, but effective risk management in your business plan means sustainability and stability for your business.

The importance of flexibility and adaptability – ready to pivot

Your business plan should never be set in stone. It needs to be flexible and capable of adapting to market shifts and embracing new opportunities. In a sector as dynamic as leisure and games, this adaptability is crucial. Planning with a long-term vision while remaining open to adjustments ensures your indoor play park stays relevant, competitive, and prosperous, even in a constantly changing business environment.

Essential components of a business plan for opening your indoor play park

Each component of the business plan is crucial in building not just an attractive but also a prosperous and sustainable play park!

In this section, we’ll explore the fundamental pillars of your business plan, each being an essential ingredient for the success of your leisure complex. From the executive summary to insightful market analysis, from the operations plan to creative marketing strategy, and finally, to a robust financial plan, each part of this plan is a strategic step towards realizing your vision for opening your indoor play park!

Here are the details:

Executive summary: highlighting your project.

The executive summary is the showcase of your business plan, captivating from the first lines. Think of it as the trailer of your entrepreneurial adventure: it must be concise yet compelling enough for investors to say “yes!” Present your mission, vision, key market data, and a financial overview here. This summary is your chance to shine and entice investors to dive into the world of your indoor play park, demonstrating its relevance and viability.

Market analysis: understand and conquer

A thorough market analysis is the compass guiding your project. Dive into target demographics, current trends , competition, and unmet needs. This section is your map for navigating the competitive landscape, showing that you’ve not only understood the market but are also ready to make a remarkable entry.

Operations plan: the mechanics of your park

Here, detail the day-to-day operation of your park: location and building choice, layout, play areas, trampoline park , necessary equipment, and, of course, safety protocols! Addressing staff management, opening hours, and operational details shows that every aspect has been thoughtfully considered to ensure efficiency and safety, and you’re ready to open your indoor play park , promising an exceptional customer experience !

Marketing and sales strategy: attracting and retaining

Develop your plan to attract customers and keep them loyal . From social media advertising to pricing strategies, special offers, and partnerships, every element counts. Also discuss retention strategies, like loyalty programs or special events for Halloween or Easter, for example. A solid marketing strategy is the engine that drives your indoor play park into the hearts of your customers.

Financial plan: the numbers talk

The financial plan is the beating heart of your business plan for opening your indoor play park . Present realistic forecasts, initial costs, operating budgets, and profitability analyses. Show that you’ve planned for various scenarios, demonstrating your preparedness for any eventuality. Investors are looking here to understand the profitability prospects of your project, and this is your opportunity to convince them with well-founded figures and plans.

Ready to open your indoor play park?

Your business plan reflects your market understanding, operational management capability, marketing creativity, and financial acumen. It’s a living tool that should evolve with your business and the market. By crafting it carefully, you stack all the odds in your favor to create an indoor leisure space that’s not only entertaining and safe for your customers but also profitable and sustainable for you as an entrepreneur.

Don’t hesitate to contact Play In Business for assistance in this wonderful adventure!

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How to Write a Business Plan for your Children’s Indoor Playground Business

March 23, 2022

Starting a family entertainment center is a great way to make a living, quite literally, off happiness and play! However, while this is definitely a great way to earn a living, it’s still a business. So you need to have a plan in place before you get started. Here are a few things your indoor playscape business plan should cover.

Know the Legalities

The first thing you need to know when you’re creating a business plan for a family entertainment center is what the legal structure of the business will be. Consider what the structure of the business will be, and how many people will be partners or owners of the company.

Make sure you are also well educated about permits and zoning for your city, so that when you start looking for premises for your custom indoor playground, you know where to look and what documentation you will need to have in place.

This also includes knowing what the regulations for businesses like these are in terms of safety and insurance. Even if your play space is completely safe, there’s always a liability issue, and most cities will require you to carry specific insurance, have certain first aid supplies and skills on site and have a fixed number of employees. Everything from fire codes to parking regulations could come into play here, so make sure you do your homework carefully.

Know Your Market

The next important thing to consider is what the market is like. Succeeding in the family entertainment center business is about more than just renting a space and installing commercial indoor playground equipment.

You need to know how many families live in your area, how many kids of the age group you are targeting there are, and what the socio economic situation in the area is. This will have a huge impact on every aspect of your business, so the more time you can spend gathering detailed demographic information, the better.

Know the Competition

The next important part of your family entertainment center business plan is what kind of competition you have in the area. This should be direct and indirect competition.

Direct competition would be businesses that also offer an indoor playscape, whether it’s paid or not.

Indirect competition would be other family friendly activities that might attract your clients. This could be things like bowling alleys, outdoor playgrounds, a zoo or farmyard or a theme park. Anything that families might decide to do instead of visiting your business is potential competition.

Knowing your competition also allows you to see what families are willing to pay for a day at one of those attractions, which will help you to set your prices.

Source Equipment

Your family entertainment center will only be as good as the equipment you have. So start looking for custom indoor play structures early. Look for a company that offers commercial playground equipment, because it will take a lot of wear and tear from the kids and look for out of the box options.

Families like to visit play spaces that are interesting and unique, and the more interesting yours is, the more popular it will be.

Know Your Costs

Next, you need to consider what it will cost to set up your indoor playscape and family entertainment center, and what it will cost to run it.

Setup costs could include registering a corporation, purchasing commercial indoor playground equipment, buying signage, painting and decorating the space, buying tables and chairs for families and so on.

Running costs would include things like salaries and wages, utilities, office supplies and so on.

Consider Complementary Business Ideas

If you’re starting a family entertainment center, you might want to add other income streams besides just the custom indoor playground.

Some ideas might include food sales, pool tables, arcade game machines and similar. All of those will have an impact on your startup and running costs, potential profits, licensing and layout, among other things. So make sure you factor any complementary business ideas into all of the other sections of your plan too.

Create a Marketing Plan

“If you build it, they will come” only works in the movies.

If you want your family entertainment center to be a success, you need to make sure people know it is there. Ideally, this will start with a location that is visible to passing traffic. The more people who see your entertainment center, the more people will want to visit.

Next, consider social media and your website, both of which are great for local advertising. You could consider offering opening day discount coupons to schools in the area, who could, in turn, pass them on to families of children that attend. Or have a special birthday package deal.

Local newspapers might be willing to cover your opening day as a local interest story, and you could also try local radio ads. The more people who know your indoor playscape is opening, the more likely you are to launch with a bang.

Set Your Pricing

Once you know what it will cost to start and run your business, and what your competition is charging, you can start setting your price. Make sure that it is high enough to cover your costs, but not so high you price yourself out of the market.

At this stage, you can also calculate how many visitors you will need to break even and make a profit, so you can start planning how to attract them.

Choose the Right Playground Partner

If you’re just staring out in the family entertainment center business, partnering with the right commercial indoor playground equipment company is a big deal. Indoor Playgrounds International has been supplying indoor playground equipment to the best play spaces for many years, so we can help you to make the right choices to make your new venture a great success.

Our custom commercial indoor playground equipment is fun and imaginative, and also built to the very highest quality standards. So you know it will be fun, and also safe and durable.

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How To Start An Indoor Playground Business In 11 Steps

Written by ownplayground team.

Since the mid-1990s, indoor playgrounds have continued to grow in popularity. Over time, indoor play areas have quietly developed into a legitimate industry, with a variety of options for children and their parents. While some indoor playgrounds cater to the youngest visitors , namely preschool-aged and under, others include activities for children of all ages and in some cases, adults as well.

So, how viable is the Indoor Playground Business? With increasing concerns about childhood obesity, many parents are looking for a fun, safe, and controlled environment for their kids, where they can be physically active; run, jump, and climb without the worry of serious injury , and where they can play hard, without parents having to worry about their security and safety. The indoor playground market fits that niche perfectly and has only continued to grow in recent years. 

If starting an indoor playground business seems like a viable option, we will explain, step by step, the best way to move forward!

Find Your Niche

There are different versions of indoor playgrounds .  

Many cater to the youngest children, from toddlers to preschool, while others focus more on preteens through adults. Although some indoor playgrounds focus solely on physical activities, like: 

Others include additional attractions, such as: 

• Video games 
• Skee ball 
• Other competitive features

Before moving forward, it is important to find a niche, or a focus.  

Perhaps you’re interested in opening an indoor playground with a focus on rock climbing or zip lining ; or maybe a sports-oriented indoor playground, with some organized games, such as indoor soccer or dodgeball is closer to what you’re considering. 

Still, other indoor playgrounds focus more on gymnastic activities, such as trampolines and tumbling.

To truly create a viable business, it is important to pick one area of specialty, and be the best at it. 

By offering something with a unique area of focus, that’s a little bit different than other indoor playgrounds , you can target a specific customer base. You can also focus on the community at large, and provide something that other, similar businesses, do not.

Investigate the Competition

Indoor playgrounds are plentiful, but each one seems to offer something slightly different. 

While some focus on gymnastic style play, others focus on different amenities, such as virtual reality video gaming, or go-carts, or a carnival style playground model where kids can earn tickets for prizes.  

When considering a new business, it is important to understand the local competition.

Whatever the niche of the business, it is important to also provide something better, and different than direct competitors. 

It’s important to understand who the competitors are, and how to outperform them, whether you provide: 

• Longer hours
• Lower entrance fees 
• A better variety of activities and gaming options. 

Planning, Planning… You’ll Want to Have a Plan

Before starting any business, it is important to create a workable plan that outlines every aspect of the business. You need to make decisions that address:

• What is the main revenue stream? 
• Aside from admissions, are there other viable ways to create revenue for the playground? 
• What services can be included?  
• Will there be food served? If so, will there be hot food to order or vending services? 
• Will the facility have the capacity to host children’s parties?

Exploring the different amenities within the playground design and creating a business plan that outlines the various revenue streams, can help a small business owner: 

• Secure funding 
• Estimate overall costs 
• Determine what type of supplies and staffing will be necessary once the business is up and running.

You’ve Heard it Said, “Location, Location, Location”

When trying to create a commercial business, whether it’s an indoor playground, a deli, or a dry cleaner, it is important to find the right location.  

First, you will want to consider the demographics in the surrounding area. For an indoor playground, it’s important to find a location that is easily accessible for families, perhaps: 

• In a commercial area 
• Close to schools
• Well established neighborhoods.

The right location can make a business, and conversely, the wrong location can break a business. 

Take the time to research an area thoroughly, find out why previous businesses have failed, and make sure the location makes sense for the type of business envisioned. It is important to find a location that is: 

• Convenient for families 
• Perhaps accessible by public transportation 
• In a location deemed safe for children and families.

Create Hype

Once a location is selected, it is time to start advertising.  

While, it may seem too soon, it is truly never too early to start advertising an upcoming business venture.  

Simple steps, like: 

• Placing a sign at the chosen location alerting those passing by of the upcoming business 
• Creating a Facebook and Instagram page to track the progress of the playground, from start to finish
• Creating a dedicated website to alert people that an indoor playground is “Coming Soon”.

Any kind of upfront, pre-opening advertising will help create excitement and anticipation surrounding this business venture. In addition to the passive advertising techniques listed above, consider some direct marketing as well, things such as: 

• Mail pieces to the community 
• Including discount coupons for admission 
• Perhaps a free drink, for all guests who arrive on opening day.

Select the Right Equipment

With the growing popularity of indoor playgrounds , there are many manufacturers of playground equipment to choose from. Quality and durability are important, as is safety. Before committing to any particular choice of equipment, it is important to thoroughly research each manufacturer.

In addition to cost, there are other considerations when selecting a manufacturer: 

• Which companies offer comprehensive warranties on equipment? 
• Which manufacturers include equipment assembly in their pricing package? 
• Do any of the manufacturers have local representation, such as a sales or service personnel, who can assist with questions and simple repairs and replacements?

It is also important to select equipment from manufacturers who prioritize the safety of their apparatus.  

When running a business that includes playground equipment, amusement park rides, or sports related apparatus, safety must be of the highest concern. 

Any reputable manufacturer should be able to produce paperwork certifying the safety of their equipment.  This is a vital piece of the puzzle when putting together an indoor playground.

Understand the True Cost

It is impossible to create admission fees, invest in marketing, or price food items until the true cost of creating and running an indoor playground is established.  

Many things need to be considered when determining the cost of the business . Renting a space and buying the equipment is only one small factor. 

Not only are there licensing requirements and insurance guidelines ; there are also plenty of other administrative and operational costs: 

• Utilities, such as electric and water
• Free-Wi-Fi for customers 
• Salaries for staff
• Cost for consumable materials 
• Cleaning supplies 
• Basic upkeep.  

It can actually seem slightly overwhelming. By creating a list of estimated expenses, business owners can better manage and understand what drives cost.

Understand Safety Guidelines and Licensing

It is important for business owners to understand the safety concerns, as well as any local regulations regarding this type of business. Since indoor playgrounds can carry some inherent risks based on the physical nature of activities, it is critical to learn all there is to know about keeping customers safe . 

Learn the requirements in terms of safety precautions, and any restrictions on the type, size, or height of the play equipment to ensure all regulatory guidelines are being met.

This is also a great time to start: 

• Pricing insurance
• Obtaining any necessary licenses or permits
• Maintaining appropriate paperwork
• Meeting all regulatory guidelines 
• Maintaining licensing information.

Invest in Strategic Marketing

This is where understanding the competition really comes in handy. While it is important to understand what your competitors offer that customers absolutely love; it is equally important to understand what customers aren’t getting, or don’t like, from the competition! 

It is vital to find the customer’s “pain point”. A pain point is a defined weakness that prevents a customer from getting exactly what they want. 

Find that , and marketing is a cinch!

A pain point can be anything. Perhaps competitive indoor playgrounds are charging a high per person rate. This can be an easy pain point to solve, even without lowering prices. Solid ways to address high prices from competitive businesses could be:

• Offering a buy two, get one free rate
• Offering customers a ½ price ticket for a return trip within 60 days
• Offering a separate child’s ticket price vs. adult ticket price 

Another big parental complaint about indoor playgrounds is the noise! 

They are loud, with plenty of screaming, wild kids. 

Creating an indoor playground that includes a quiet space for Mom and Dad could potentially be a huge selling point! 

Next, the level of cleanliness. 

Everyone has heard stories about how dirty ball pits really are! 

Focusing on cleanliness and disinfecting the equipment could easily turn an indoor playground into a parental favor over the competition.

The important thing is to find out what matters most to the parents, and direct marketing to meet their needs and address their pain points! This is an easy way to differentiate a business from the competition.

Hire Talented People

It’s important to pick the right employees. For an indoor playground, ideally, employees should:

• Love working with children
• Be outgoing

It is important to select a few employees that are experienced with basic first aid, in the event of minor scrapes and scuffles.

Think about every area of the business that requires staffing: 

• Staff to handle admissions
• Answer customer inquiries 
• Take phone calls. 

Additional staff to: 

• Help run events and parties 
• Supervise games and equipment
• Oversee the snack bar. 

While some employees can fill more than one role, it is really important to have the right fit.

Turnover in employment is a huge business expense that can, with the right staff in place, be reduced dramatically. 

The cost to advertise jobs, interview and train new people, pay salaries, buy uniforms, etc. It all adds up. By picking talented and dependable people, and treating them well, retaining employees is much easier. 

The right employees will be equally invested in making the business a success.

Use Social Media for Promotion

Social media is an incredible tool. 

Studies indicate that nearly 80% of Americans use some type of social media app. (Source: Social Media use in America ) 

Using social media to create excitement prior to opening is only the beginning! 

Creating regular updates, focusing on different aspects of the business, and offering small benefits, such as a reduced price one day a week, free beverage refills, or other little perks through social media keeps followers interested in the organization.

Plus, customer reviews are a great way to get free, positive advertising! 

Creating regular social media posts and encouraging customers to leave comments about their experiences is the best free advertising in the world!

How Much Does It Cost to Build an Indoor Playground from the Ground Up?

This question is a bit hard to answer, as prices can vary tremendously depending on what the business offers.   

However, there are certain factors that can create fluctuation in a pricing model. Let’s take a look at what they are and discuss each one in detail:

Age Range of Targeted Customers

• Type of Activities Offered 
• Liability rates by location

Obviously, opening an indoor playground in Los Angeles or New York City will cost a lot more money than opening one in Topeka, Kansas!  

For the most part, indoor playgrounds require a large space, so in midsize to large cities, large spaces come with a premium price. It is important for potential business owners to research rental and purchase rates based on square footage in the targeted location.  

Sometimes making a small change to a different zip code can save a good deal of money.

Taxes and rental rates vary widely depending on locations. 

Location is one of the most important factors when creating a business, however, what may be considered a great location for a supermarket, may not be the best location for an indoor playground. 

When considering costs, it is important to weigh the cost factor against the benefits of the selected location. For example, building an indoor playground off of a main thoroughfare, but close to well established family neighborhoods may cost less and work in favor of the business. 

It is more important that kids and their parents find the location convenient, rather than ensuring that it’s on the busiest road in town.

Size of the Total Space

The size of an indoor playground can vary dramatically. 

Playgrounds designed for toddlers and preschool-aged children can be considerably smaller than those that are designed with older kids, teens, and adults in mind.

For example, an indoor playground built for toddlers and preschoolers could be housed in a 2000 square foot space rather easily, including areas for parents to relax, a snack bar, and other amenities.   

Conversely, a large scale, family size indoor playground can require spaces larger than even 15,000 square feet. It all depends on: 

• The type of activities included in the playground
• The focal activities provided
• The demographic the business is designed to serve.

Age range will dramatically affect nearly every aspect of an indoor playground. From the overall size, to the types of services offered, to the number of customers serviced daily. 

Age range is probably the single biggest factor in determining what an indoor playground will look like. 

Oftentimes, playgrounds designed for younger children operate almost like a traditional ‘Mommy and Me” class where parents and kids can pay an hourly rate for activities that are group led. 

Since toddlers and preschoolers tire or need naps, this is a customer base that will not be spending all day inside, so creating 2 hours ‘appointment’ times can encourage a steady stream of patrons all day long and increase daily revenue over a more free form style of service. 

The operating hours can mimic a basic workday in many cases, thus cutting costs in terms of salaries and staffing.

Obviously, indoor playgrounds catering to older kids and adults will need to operate longer hours and provide a variety of activities designed to keep kids and adults engaged and having fun for several hours at a time.

Types of Services Offered

While the age range of the targeted customer base will dramatically affect the size of the area needed, the customer demographics affect costs in other ways also. 

The older the patron, the more extreme some of the activities need to be. For example, when attempting to appeal to older teens and adults, attractions such as indoor ziplines and indoor go-karts are much more expensive to design and run, but they bring in more revenue as well.

Admission prices can be based on general activities, with specialized services, such as ziplining, virtual reality play, and bowling , for example, charged separately from general admission. 

Using this kind of a pricing model, the business can cater to both wealthier families as well as the more frugal. Offering a la carte services is a great way to build value and create additional revenue streams.  

Additionally, indoor playgrounds can make money in other ways as well. Consider including an arcade. 

Arcade games are easy to maintain and are easy money-makers. 

Catering children’s birthday parties with a variety of package deals and services is also an easy extra revenue stream. 

Watch which activities pull in the money. Then you can rotate out the activities that don’t create a significant revenue stream and bring in new ones!

Liability Insurance Costs

This is another tricky area.  

Liability expenses to insure an indoor playground will vary widely based on location, along with the size and scope of the activities and services offered. 

While insurance rates and maintaining liability insurance for a large scale indoor playground may seem daunting, the type of services offered should drive up costs for customers at a similar rate. 

That is why it is important to keep an eye on popular activities, and quickly move out attractions that aren’t paying the bills.

Additionally, liability rates can vary dramatically between different insurers. It is very important to obtain at least 3 or more quotes when deciding on insurance. 

Also important to note, there are usually different factors that can affect rates as well, such as special consideration or discounts provided by insurers. For example, some insurers will offer discounted rates to minority or women-owned businesses. Additionally, just like car insurance can be affected by certain safety factors, so can liability insurance for an indoor playground. 

It is very important to take the time to review all quotes and discuss all options for providing liability for your business. 

What About an Indoor Playground Franchise?

Another option for starting an indoor playground business is owning a franchise. 

While at times, franchising can lower overall investment costs, it isn’t a guarantee. However, with a business model that is fairly complex, an indoor playground can be somewhat daunting for many small business owners. 

Franchise ownership provides business owners with all the perks of owning and operating their own business, but with the strength and backing of a well-known name.

Benefits of a Franchise

There are many benefits to investing in a franchise, especially with a business like an indoor playground. In reviewing franchise operations for a mid-range indoor playground that services children from about age 2 to age 12, they offer several benefits to their franchise owners, such as:

Market Research

Lease negotiations, professional installation, design and equipment, training and support.

• Discounts on Equipment and food/beverages

Territorial Protection

Advertising.

A well-established franchise already understands the market, and as such can provide new business owners with a wealth of information. For companies that have a long standing history, market research will consist of factors that as someone new to the industry, may not have even thought about!

A large scale indoor playground company understands the value in terms of rental space, and they know exactly what it should cost to rent a building for their franchises. 

Taking into account some of the market fluctuation in different areas of the country, franchise owners can rest assured that they will not be taken advantage of in terms of leasing prices. The franchise company should be true experts.

Oftentimes franchise companies partner with a specific group of builders around the country or region to handle all of the builds and installations for their franchise owners. This allows the owner to sit back and let someone familiar with the equipment complete all the necessary installations. 

There is no need to reach out to several installers, obtain quotes, customer feedback, etc. They can simply get the job done.

Again, franchise companies have the benefit of experience. They know what designs are most appealing to customers and they know which equipment and attractions are guest favorites. There is no guesswork here for the franchise owner. No worries about removing and replacing equipment that is not popular, as the business model has already been established.

It is hard to overestimate the benefit of good training and support. 

Understanding an industry, the market, and demographic serviced by the business, not to mention what works and what doesn’t, is truly key to the overall success of a business. 

With a successful franchise, owners have the benefit of being trained on what works! Previous owners have already gone through the trial and error, so the hard work has been done. Good franchise companies will offer ongoing support, particularly in the first couple of years, as the business owner truly gets up to speed.

Whether it is equipment, rent, or food products, buying in large quantities usually means deep discounts. When working with a franchise business, the individual business owner gets the benefit of a large company’s buying power, even though they are only buying for their location. 

By using specific vendors already contracted with the franchise, owners will pay well below cost for items.

Again, plenty of research has taught franchise companies what a territory needs, and doesn’t need, to be successful. As a franchise owner, you can be guaranteed that you won’t be crowded by additional franchise owners, as each territory is already defined.

A well-recognized name and a good reputation are fantastic advertising. Franchise owners get the benefits of a familiar name, national advertising, as well as local support. 

While they choose to increase advertising through social media, or on local radio, having the national support of a network of established advertising is almost like money in the bank.

What Playground Business Will You Start?

Ultimately, it is up to each individual person or business owner to decide what works best for them. 

Many people prefer to have the support of a well-known company backing them as they start their own business endeavor. Other people want complete autonomy to create their own space, recognize their own vision, and have the freedom to do business however they choose. 

Each method has its own risks and rewards. Either way, the indoor playground industry has continued to grow and develop over the past 2 or 3 decades and shows no signs of stopping any time soon!

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Indoor Inflatable Play Center Business Plan [Sample Template]

By: Author Solomon O'Chucks

Home » Business Plans » Tourism & Hospitality

An indoor inflatable play center business is a type of recreational facility designed for children and families to enjoy inflatable structures and play equipment in a safe and controlled environment.

These centers are typically housed within a building, making them suitable for year-round operation regardless of weather conditions. They provide a fun and exciting space for children to burn off energy, engage in physical activity, and socialize with other kids.

These indoor inflatable play centers are popular because they provide a controlled and safe environment for children to play, allowing parents to relax and socialize while their kids have a great time. They are commonly found in urban areas and shopping centers, where families are likely to visit for a fun outing or to celebrate special occasions.

Steps on How to Write an Indoor Inflatable Play Center Business Plan

Executive summary.

Maria McKenzie® Indoor Inflatable Play Center, Inc. is a family-oriented entertainment business that aims to provide a safe, enjoyable, and exciting indoor play experience for children and families in Phoenix, Arizona.

Our play center will feature a wide range of high-quality inflatable structures and play equipment, designed to offer children an unforgettable adventure while ensuring parents’ peace of mind. Maria McKenzie® Indoor Inflatable Play Center, Inc. is a new entrant in the booming indoor entertainment industry in Phoenix.

We have identified a significant gap in the market for a well-maintained, premium quality, and family-friendly inflatable play center that caters to the diverse needs of children aged 2 to 12 years.

Our play center will occupy a spacious 10,000-square-foot facility, conveniently located in a high-traffic area of Phoenix. The facility will be outfitted with state-of-the-art inflatable structures, including bounce houses, slides, obstacle courses, interactive games, and more.

Additionally, we will have separate play zones for toddlers and older children to ensure a safe and enjoyable experience for all age groups.

Company Profile

A. our products and services.

Maria McKenzie® Indoor Inflatable Play Center, Inc. will offer a range of services and features to create an unparalleled customer experience:

Premium Inflatables: We will feature top-of-the-line, ASTM-certified inflatable structures that meet the highest safety standards, ensuring children can play without compromising their well-being.

Birthday Party Packages: We will offer attractive birthday party packages, complete with reserved party rooms, decorations, and personalized attention from our staff, making each celebration a memorable event.

Parent’s Lounge: To cater to parents’ needs, we will provide a comfortable and inviting parent’s lounge equipped with complimentary Wi-Fi, TV, and refreshments.

Safety Measures: Our trained staff will be diligent in ensuring a safe environment, implementing strict safety protocols, and enforcing play guidelines at all times.

b. Nature of the Business

Our indoor inflatable play center will operate the B2C – Business to Consumer business model.

c. The Industry

Maria McKenzie® Indoor Inflatable Play Center, Inc. will operate in the indoor entertainment industry.

d. Mission Statement

At Maria McKenzie® Indoor Inflatable Play Center, Inc., our mission is to create a safe haven where children can embark on exhilarating adventures, fostering imagination, physical activity, and social interactions. We are committed to providing families in Phoenix, Arizona, with a premium indoor entertainment destination that encourages active play, promotes family bonding, and leaves lasting memories for all our cherished visitors.

e. Vision Statement

Our vision at Maria McKenzie® Indoor Inflatable Play Center, Inc. is to be the undisputed leader in the indoor entertainment industry in Phoenix, setting the gold standard for quality, safety, and customer experience.

We aspire to become an integral part of the community, recognized for our commitment to fostering child development, promoting healthy lifestyles, and creating an environment where families can come together, celebrate, and experience sheer delight in every visit.

f. Our Tagline (Slogan)

Maria McKenzie® Indoor Inflatable Play Center, Inc. – “ Where Adventures Take Flight, and Smiles Reach New Heights!”

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Maria McKenzie® Indoor Inflatable Play Center, Inc. will be formed as a Limited Liability Company, LLC.

h. Our Organizational Structure

• Chief Executive Officer
• Facility Manager
• Accountant (Cashier)
• Administrative Assistant
• Receptionist

i. Ownership/Shareholder Structure and Board Members

• Maria McKenzie (Owner and Chairman/Chief Executive Officer) 51 Percent Shares
• Rob Sam (Board Member) 19 Percent Shares
• Robert Smith (Board Member) 10 Percent Shares
• Gabriel Joseph (Board Member) 10 Percent Shares
• Valerie Davies (Board Member and Secretary) 10 Percent Shares.

SWOT Analysis

A. strength.

• Offering top-quality, ASTM-certified inflatable structures ensures a safe and enjoyable play environment for children, distinguishing the play center from lower-tier competitors.
• Situated in a high-traffic area of Phoenix, the play center enjoys excellent visibility and accessibility, attracting a steady flow of customers.
• Prioritizing exceptional customer service and personalized attention creates a positive and memorable experience for visitors and encourages repeat business.
• Regularly hosting themed events and interactive sessions keeps customers engaged, fostering excitement and loyalty among families.
• Well-trained and attentive staff members enforce safety measures, provide guidance to children, and ensure parents’ peace of mind.

b. Weakness

• The business may experience fluctuations in customer traffic during certain seasons or holidays, necessitating targeted marketing efforts to maintain consistent revenues.
• Maintaining and cleaning the inflatable structures, along with other overhead expenses, may pose financial challenges, requiring prudent financial management.
• Relying heavily on the local community for its customer base may limit growth potential, warranting future expansion plans and regional marketing strategies.

c. Opportunities

• Tapping into the lucrative birthday party market by offering attractive party packages and hosting memorable celebrations can become a significant revenue stream.
• Collaborating with local schools, community organizations, and businesses for field trips, fundraisers, and corporate events can broaden the customer base.
• Introducing membership programs or loyalty rewards can incentivize repeat visits and foster a loyal customer community.
• Exploring options for additional indoor entertainment services, such as arcade games or virtual reality experiences, can attract a wider audience.

i. How Big is the Industry?

The global family indoor entertainment market size was valued at USD 25.13 billion in 2022. It is projected to reach USD 58.30 billion by 2031, growing at a CAGR of 9.80% during the forecast period (2023–2031).

ii. Is the Industry Growing or Declining?

The indoor inflatable play center industry is generally growing and experiencing positive trends. This is so because families are continually seeking safe and fun indoor entertainment options for their children, particularly in urban areas where outdoor play spaces may be limited.

iii. What are the Future Trends in the Industry?

Incorporating interactive technologies such as augmented reality (AR) and virtual reality (VR) into inflatable play structures and games can enhance the overall experience and attract tech-savvy customers.

Increasing focus on environmental sustainability by using eco-friendly materials for inflatable structures and implementing energy-efficient practices in operations. Designing play centers with adaptable spaces that can transform into event venues for various occasions like corporate team-building activities, family gatherings, or community events.

Introducing play-based educational activities that focus on science, technology, engineering, arts, and mathematics (STEAM) to align with parents’ increasing interest in educational play.

iv. Are There Existing Niches in the Industry?

No, there are no niche ideas when it comes to the indoor inflatable play center line of business.

v. Can You Sell a Franchise of Your Business in the Future?

Maria McKenzie® Indoor Inflatable Play Center, Inc. has plans to sell franchises in the near future and we will target major cities with growing working class and families in the United States of America.

• Facing competition from other indoor entertainment venues, amusement parks, and alternative family entertainment options may impact market share.
• Economic downturns or fluctuations can affect discretionary spending by families, potentially leading to reduced customer visits.
• Public health crises or disease outbreaks may result in temporary closures or reduced foot traffic, necessitating flexible contingency plans.
• Adhering to safety and health regulations, zoning laws, and licensing requirements is critical to avoid potential legal challenges.

i. Who are the Major Competitors?

• Monkey Joe’s
• Urban Air Adventure Park
• Jump-N-Jammin
• Fun Factory
• Jumpin’ Jacks
• The Bounce Place
• Bounce House
• Big Air Trampoline Park
• Playland Skate Center
• Altitude Trampoline Park
• AirTime Trampoline & Game Park
• Adventure Landing
• FunFlatables
• The Blast Zone.

ii. Is There a Franchise for Indoor Inflatable Play Center Business?

Yes, there are franchise opportunities for indoor inflatable play center businesses, and here are some of them:

• Fun Flatables

iii. Are There Policies, Regulations, or Zoning Laws Affecting Indoor Inflatable Play Centers ?

Yes, there are various policies, regulations, and zoning laws that can affect indoor inflatable play center businesses in the United States. The specific laws and requirements may vary depending on the state, county, and local jurisdiction where the business operates.

Indoor inflatable play centers are subject to safety regulations to ensure the well-being of children and visitors. These regulations may include guidelines for inflatable equipment maintenance, safety inspections, and adherence to industry standards like ASTM F2374 for inflatable amusement devices.

Play centers must comply with local building codes and fire safety regulations to ensure that the facility meets required safety standards for occupancy, exits, and fire protection.

Indoor play centers may be subject to health department regulations concerning sanitation, food handling (if offering a concession stand), and general health and safety practices. The location of the play center must comply with local zoning laws, which regulate the permitted land use in specific areas.

Zoning regulations may dictate where entertainment facilities can be established, as well as factors like parking requirements.

Play centers are required to comply with the Americans with Disabilities Act (ADA), ensuring accessibility for individuals with disabilities.

Depending on the location, the play center may need to adhere to noise regulations and environmental laws related to waste disposal. In some states, play centers that offer childcare services during specific hours may need to obtain childcare licenses.

Marketing Plan

A. who is your target audience.

i. Age Range: Our target audience at Maria McKenzie® Indoor Inflatable Play Center, Inc. is primarily children between the ages of 2 and 12 years old.

ii. Level of Educational: Our play center welcomes children of all educational levels, as the focus is on providing a recreational and social experience rather than academic instruction.

iii. Income Level

Maria McKenzie® Indoor Inflatable Play Center, Inc. aims to be an inclusive and accessible destination for families of diverse income levels. We strive to offer affordable admission fees and party packages, ensuring that families from various economic backgrounds can enjoy our facilities.

iv. Ethnicity: Our play center is open to children of all ethnicities, promoting a diverse and inclusive environment.

v. Language: While English is the primary language used in our communication and signage, our staff members will be accommodating and respectful of families who may speak other languages.

vi. Geographical Location: Our physical location is in Phoenix, Arizona. As such, our primary target audience resides in the local and nearby communities of Phoenix and the surrounding areas.

vii. Lifestyle

Our target audience includes families with young children who seek safe and engaging entertainment options. Our play center caters to families who prioritize family time, celebrating special occasions, and creating lasting memories together.

b. Advertising and Promotion Strategies

• Host Themed Events That Catch the Attention of Potential Clients.
• Tap Into Text Marketing.
• Use FOMO to Run Photo Promotions.
• Share Your Events in Local Groups and Pages.
• Turn Your Social Media Channels into a Resource
• Develop Your Business Directory Profiles
• Build Relationships with other entertainment service providers and related organizations in our Area

i. Traditional Marketing Strategies

• Marketing through Direct Mail.
• Print Media Marketing – Newspapers & Magazines.
• Broadcast Marketing -Television & Radio Channels.
• OOH Marketing – Public Transit like Buses and Trains, Billboards, Street shows, and Cabs.
• Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

• Social Media Marketing Platforms.
• Influencer Marketing.
• Email Marketing.
• Content Marketing.
• Search Engine Optimization (SEO) Marketing.
• Affiliate Marketing
• Mobile Marketing.

iii. Social Media Marketing Plan

• Start using chatbots.
• Create a personalized experience for each of our clients.
• Create an efficient content marketing strategy.
• Create a community for our freelance marketers and influencers.
• Gear up our profiles with a diverse content strategy.
• Use brand advocates.
• Create profiles on relevant social media channels.
• Run cross-channel campaigns.

c. Pricing Strategy

Maria McKenzie® Indoor Inflatable Play Center, Inc. will adopt the following pricing strategies:

• Cost-Plus Pricing
• Value-Based Pricing
• Competitive Pricing
• Dynamic Pricing
• Bundle Pricing

Please note that our pricing strategy is based on a careful analysis of the costs and profitability of the business, as well as the needs and preferences of the target customer base.

Sales and Distribution Plan

A. sales channels.

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, freelance marketers, and social media influencers to help refer clients to us.

Maria McKenzie® Indoor Inflatable Play Center, Inc. will also leverage the 4 Ps of marketing which is the place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, so we can have a visible, in-demand service that is competitively priced and promoted to our patients and donors.

b. Inventory Strategy

The fact that we will need indoor inflatable play center supplies per time means that Maria McKenzie® Indoor Inflatable Play Center, Inc. will operate an inventory strategy that is based on a day-to-day methodology to follow for ordering, maintaining, and processing items in our warehouse.

We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.

c. Payment Options for Customers

Here are the payment options that Maria McKenzie® Indoor Inflatable Play Center, Inc. will make available to her clients;

• Bank Transfers
• Credit or Debit Card
• Electronic Payment Systems such as PayPal or Venmo.

d. Return Policy, Incentives, and Guarantees

Return Policy

As an indoor inflatable play center, we will implement a return policy that allows customers to cancel their booking or reschedule for a future date if they are unable to attend due to unforeseen circumstances. This can be communicated clearly on your website, social media pages, or booking confirmation email.

We will offer loyalty programs where customers earn points for every visit and can redeem them for discounts or freebies. We will also offer special discounts to customers who refer friends or family to our center. We will also offer promotions or themed events during holidays or special occasions, such as Halloween or Valentine’s Day.

As an indoor inflatable play center, we will guarantee the safety and quality of our services. We will do this by ensuring that all equipment is well-maintained and that all staff are trained in safety protocols and are available to assist customers as needed.

e. Customer Support Strategy

Our customer support strategy will involve ensuring that clients can contact our indoor inflatable play center business through multiple communication channels, such as email, phone, and social media.

We will also make sure that all contact information is clearly displayed on the business’s website and promotional materials. We will foster a culture of putting clients first, where staff are trained to listen actively and empathize with clients’ needs.

We will encourage staff to go the extra mile to ensure clients feel valued and supported. We will implement a CRM system to manage client data, track appointments, and follow-up activities.

Operational Plan

Secure a suitable location in a high-traffic area of Phoenix, Arizona, with ample space for the indoor play center and designated parking.

• Outfit the facility with high-quality, ASTM-certified inflatable play structures, ensuring safety and durability.
• Create separate play zones for different age groups, with designated toddler areas and play areas for older children.
• Implement strict safety protocols, including regular equipment inspections and maintenance.

a. What Happens During a Typical Day at an Indoor Inflatable Play Center?

• The play center opens its doors, and staff members prepare the facility for the day’s operations.
• Inflatable play structures are inflated, inspected for safety, and arranged in designated play zones.
• Concession stands are stocked with snacks and drinks.
• Families arrive at the play center, and staff members warmly welcome them.
• Parents and children check-in, pay admission fees, and receive wristbands or other identifiers for access to the play areas.
• Play supervisors oversee and ensure the safety of the children, providing assistance and guidance as needed.
• Inflatables are checked for any signs of wear and tear and promptly repaired if necessary.
• At the end of the day, the play center closes its doors to the public.
• Staff members perform a final inspection of the facility to ensure everything is secure and well-maintained.

b. Production Process

There is no production process when it comes to an indoor inflatable play center business.

c. Service Procedure

The service procedure for Maria McKenzie® Indoor Inflatable Play Center, Inc. involves a series of steps to create an enjoyable and safe experience for children and families.

Throughout the service procedure, Maria McKenzie® Indoor Inflatable Play Center, Inc. aims to prioritize safety, provide exceptional customer service, and create an environment that promotes fun, active play, and lasting memories for children and their families.

d. The Supply Chain

Maria McKenzie® Indoor Inflatable Play Center, Inc. will establish a business relationship with wholesale supplies of indoor inflatable supplies and merchandise.

e. Sources of Income

Maria McKenzie® Indoor Inflatable Play Center, Inc. generates income from various sources to sustain its operations and profitability. Here are the primary sources of income for the business:

• Admission Fees
• Birthday Party Packages
• Party Add-ons and Upgrades
• Concession Sales
• Membership or Loyalty Programs
• Special Events and Promotions
• Group Events and Field Trips
• Merchandise Sales
• Private Play Sessions
• Advertisement and Sponsorship.

Financial Plan

A. amount needed to start our indoor inflatable play center.

Maria McKenzie® Indoor Inflatable Play Center, Inc. would need an estimate of $1.8 million to successfully set up our indoor inflatable play center in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.

b. What are the Costs Involved?

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $7,300.
• Marketing, Branding, and Promotions – $5,000.
• Business Consultant Fee – $2,500.
• Insurance – $5,400.
• Rent/Lease – $550,000.
• Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
• Operational Cost (salaries of employees, payments of bills et al) – $70,000
• Start-up inventory – $85,000
• Store Equipment (cash register, security, ventilation, signage) – $4,750
• Equipment and maintenance – $550,000
• Website: $600
• Opening party: $3,000
• Miscellaneous: $2,000

c. Do You Need to Build a Facility? If YES, How Much Will It Cost?

Maria McKenzie® Indoor Inflatable Play Center, Inc. will not build a new facility for our indoor inflatable play center; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.

d. What are the Ongoing Expenses for Running an Indoor Inflatable Play Center Business?

• Rent and utilities like electricity, water, heating, and air conditioning.
• Staff Salaries
• Maintenance and Repairs
• Expenses for cleaning supplies, janitorial services, and sanitation efforts to maintain a clean and hygienic environment for visitors.
• Marketing and Advertising
• Expenses for stocking the concession stand with snacks, drinks, and light refreshments for sale to customers.
• Costs for party supplies, decorations, and other essentials for hosting birthday parties and special events.
• Licensing and Permits
• Security and Surveillance
• Membership or Loyalty Program Benefits
• Software and POS System.

e. What is the Average Salary of your Staff?

• Chief Executive Officer – $58,000 per year
• Facility Manager – $45,000 per year
• Accountant (Cashier) – $38,000 per year
• Administrative Assistants – $34,000 per year
• Receptionist – $32,000 per year.

f. How Do You Get Funding to Start an Indoor Inflatable Play Center Business?

• Raising money from personal savings and sale of personal stocks and properties
• Applying for a loan from your bank/banks
• Pitching our business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from our family members and our friends.

Financial Projection

A. how much should you charge for your product/service.

The average admission fee for an indoor inflatable play center in the U.S. ranges from $10 to $20 per child for a single play session, which typically lasts for a few hours.

b. Sales Forecast?

• First Fiscal Year (FY1): $360,000
• Second Fiscal Year (FY2): $470,000
• Third Fiscal Year (FY3): $560,000

c. Estimated Profit You Will Make a Year?

Based on our extensive market research and conservative financial projections, we anticipate steady revenue growth in the first three years of operation. We aim to break even within the first 18 months and achieve a healthy profit margin by the end of the third year.

• First Fiscal Year (FY1): (10% of revenue generated)
• Second Fiscal Year (FY2): (20% of revenue generated)
• Third Fiscal Year (FY3): (25% of revenue generated)

d. Profit Margin of an Indoor inflatable play center

The ideal profit margin we hope to make at Maria McKenzie® Indoor Inflatable Play Center, Inc. will be between 10 and 25 percent on service charges.

Growth Plan

A. how do you intend to grow and expand by opening more retail outlets/offices or selling a franchise.

Maria McKenzie® Indoor Inflatable Play Center, Inc. will grow our indoor inflatable play center business by first opening other facilities in key cities in the United States of America where weather conditions can be unpredictable or harsh, limiting outdoor fun opportunities for children within the first five years of establishing the organization and then will start selling franchise from the tenth year.

b. Where do you intend to expand to and why?

Maria McKenzie® Indoor Inflatable Play Center, Inc. plans to expand to;

• Boston, Massachusetts
• Fargo, North Dakota
• New Orleans, Louisiana
• Oklahoma City, Oklahoma
• Seattle, Washington
• Anchorage, Alaska
• Chicago, Illinois
• Minneapolis, Minnesota
• Denver, Colorado
• Albuquerque, New Mexico.

The reason we intend to expand to these locations is the fact that indoor inflatable play center businesses are popular in areas where weather conditions can be unpredictable or harsh, limiting outdoor fun opportunities for children.

The founder of Maria McKenzie® Indoor Inflatable Play Center, Inc. plans to exit the business via family succession. We have positioned structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another generation without difficulties.

The company has successfully developed a detailed transition plan to smoothly hand over responsibilities to the new successor. This includes transferring ownership, training key personnel, and communicating with employees, customers, and suppliers about the change.

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The Basics of Starting an Indoor Playground

Home Blog Uncategorized The Basics of Starting an Indoor Playground

Looking to join the growing kid’s indoor playground franchise or want to boost an existing business? According to IBISWorld, a market research firm, increased disposable income and health awareness have greatly benefited the children’s fitness center franchise industry , which includes indoor playgrounds. From 2012 to 2017, the industry saw 1.7 percent annual growth, and it is expected to continue to grow. Parents, teachers and caretakers are working hard to combat childhood obesity, resulting in high demand for engaging playgrounds.

If you are excited to join a growing industry, you’ve come to the right place. We’ll share indoor playground business plans and basics and insight to help you open your own indoor play center.

Read the full article or skip to a specific section:

• Who Should Start an Indoor Playground?

Why Should You Start an Indoor Playground?

Starting an indoor playground: market research and location.

• Designing Your Indoor Playground

What Do You Need to Get Started With an Indoor Playground?

Preparing the site and installing your playground.

• Ongoing Maintenance For Your Playground

Who Should Start An Indoor Playground Business?

Whether you manage a museum, own a retail center, run a family-friendly restaurant, or want to start up a family entertainment center, adding an indoor playground or play attraction will attract families and help your business grow. Soft Play® playgrounds can be designed to fit any size or budget.

A comfortable and enticing play area encourages families to take their time browsing, shopping, dining or socializing. You might consider adding indoor playground equipment to your business if you own or manage a:

• Family entertainment center
• Trampoline park
• Any amusement area that you want to make kid-friendly

When kids are happy, parents are happy. A playground helps keep customers relaxed and content no matter where they are.

Indoor playgrounds are gaining popularity because they offer comfortable and secure play areas, and they give kids a chance to burn energy regardless of weather conditions. Parents and caretakers can relax as kids freely explore fun games and stimulating activities.

Also, parents realize the importance of physical activity in childhood. According to the American Heart Association, obesity is the number one concern of parents today, and the prevalence of childhood obesity has more than tripled since the 1970s. Indoor play areas encourage physical activity in a way that is fun. Kids are more motivated to burn calories and stay fit when they are busy laughing and playing. It is also vital that children regularly play to relieve stress, make friends and develop important cognitive skills.

Parents also want to get their kids away from TV and computer screens. The average American child spends five to seven hours a day in front of a screen. Too much screen time makes it hard to sleep at night, increases the risk of attention problems and limits physical activity. With the demand to help kids get healthy and away from the screen, it’s the perfect time to open an indoor playground business.

An indoor playground business can be highly profitable in areas where there is a large population of children and where parents have disposable income. Similarly, communities that experience long winters or frequent rain showers can benefit from indoors playgrounds. There are plenty of reasons to start an indoor playground in your existing business or from scratch. Here are some of the benefits for your business :

• Attract customers and keep them coming back: Families and children will want to visit businesses that offer fun and create positive memories. In a restaurant with a playground, for example, families are more likely to linger, enjoy their meal and return because everyone can enjoy themselves.
• Set yourself apart from competitors: Say you own a health and fitness center. Down the street is another gym. Imagine you have a childcare area full of colorful, exciting playground equipment in your fitness center, and the other location does not. Which fitness center are busy parents more likely to choose?

• Build brand loyalty: You can choose to display logos and company colors when you design your playground . A custom playground is an easy way to advertise your brand and build customer loyalty. If customers have a great time at your business, they’ll remember your name and will surely return.
• Tailored play experiences: You can build a playground that meets your targeted customers’ needs and promotes stimulating, fun play for all ages. Customers’ children will enjoy the physical and mental benefits of play when they visit your business.
• Make customers feel welcome: Your business will make customers feel comfortable bringing their children to your establishment. A kid-friendly environment that promotes play will encourage customers to come back time and time again.

Ready to take a leap and starting building an indoor playground? Contact our team of experts at Soft Play and get your custom indoor playground project started.

Planning For Your Playground

Before you start an indoor playground business, you need to create a business plan. Your indoor playground business plan should include your budget, marketing techniques, a mission statement, and operation procedures such as cleaning and maintenance. You will also need to research competitors to learn how to offer something new and interesting at a reasonable price.

The goal of your market research will be to discover valuable customer information, such as how many children are in your area, and how much demand exists for an indoor playground. You also need to research what customers are willing to spend money on and where they want to go. To find this information, you can study customers directly through surveys, interviews or online polls. You can also use the information other similar businesses have already collected. Your research will aim to answer the following questions:

• How many children are in your community (ages 0-12)?
• Do you have enough physical space for a playground?
• Are there many tourists in your area, or primarily residents?
• How will you differentiate from competition?

Knowing your customer’s age, income, lifestyle and other important demographic information is a good place to start. You can hire a market research company to do the work for you, or you can use online analytics tools and do the job yourself. With many potential customers using social media sites, you can find great demographic data online.

Next, learn about your competition. Look at companies that are relatively the same size as yours, and which serve the same geographic location. Visit your competitors’ social networks and websites to learn what they are doing. Also, visit their customers’ social media pages and read their reviews and comments about competing businesses. Learn what competitors charge for their products or services, and consider how you can offer something different. The goal is to determine how you can stand out from competition and offer customers something exciting and unique at a price they can afford.

Location is crucial to the success of an indoor playground business. Picking a location near a high-traffic draw like a mall or shopping center will help bring in more foot traffic, or select a location based on a high tourist area. For the building, remember to consider building height depending on the type of play structure you want. For example, you may need upwards of 15 feet for a 3-story play structure.

Planning A Budget

How much money do you need to start an indoor playground? A lot depends on the size and type of play equipment you want to purchase. Obviously, a large elaborate play center is going to cost more than a single piece of playground equipment. The price is up to you and your business goals. Note that standalone play equipment  can be a great option if you are limited on space or budget.

In general, you’ll need to determine the following two factors:

• How big of a playground do you need to handle the number of customers (based on your busiest day of the week)?
• How many playable activities do you want in your playground?

Your budget should include:

• Total start-up costs, including rent and insurance
• Costs to operate the indoor playground such as utilities and salaries
• Marketing and other expenses necessary to support the business
• Estimated or expected profits

At Soft Play, we offer a range of indoor playground projects at varying prices to provide an unforgettable play experience for your entertainment center. Our projects range from $5,000 to $125,000 and we help from the design to the installation of your unique play area.

Considerations for Indoor Playground Designs

If you’re wondering how to start your own playground business and make it successful, you want to design a playground that is innovative , engaging, and fun for all ages, to keep families coming back. Fortunately, the option to design a custom playground allows you to set your imagination free and create an exciting environment that will differentiate from competitor options while also engaging kids.

A thoughtfully designed playground will keep kids entertained for hours and show them something unexpected. Keep the following elements in mind when it’s time to design:

• Space: Consider where you plan to install your playground and its size. You’ll need high ceilings and enough space around the playground for seating, bathrooms, and food areas.
• Color and theme: One option would be to use bold primary colors — yellow, blue, and red — if you want a simple design. These cheerful colors signify Soft Play and help stimulate a child’s imagination. Or, consider a theme. A themed playground can capture a child’s imagination even more than a stimulating color scheme. Kids like castles, jungles, and pirates, for example — make a playground theme out of it!
• Toys: Incorporate toys and activities that kids love, like tunnels, trampolines, swings, inflatable bouncers, blocks, climbing structures, bright interactive games , playhouses, and innovative musical equipment .
• Brand: Keep consistent with your company’s color scheme and style when designing your playground. Think of ways you can incorporate a common theme, or include a company logo on the equipment. For example, if you own a candy shop, you might choose a candy-themed playground .

The benefit of a custom design is that your playground will be unique and offer something competitors can’t. If your playground is fun, kids will never forget it, and they will look forward to returning. Likewise, parents will be glad to take their children somewhere that does not revolve around a screen.

At Soft Play, design consultants know what works best for businesses, children, and parents. They will help you design a playground that attracts customers and keeps them coming back. Once you are satisfied with the design, we manufacture equipment at our state-of-the-art facility in Monett, Mo., to get your playground delivered on time and within budget.

Before you install a playground, you need to know what business licenses you need according to your state laws. Additionally, you’ll need to find out if you need any permits regarding child care in your state.

If you do not already own a business you will need to register your business with the playground name and get a tax identification number. You will also need liability insurance and any other permits that may be required by your state laws.

There are two basic licenses you need for an indoor playground. They are:

• Doing Business As (DBA) license: A DBA license allows you to use a made-up name for your business and usually costs less than $50.
• General business license: A general business license is required to register your business and for tax purposes. A general business license usually costs around $300.

Depending on your state, you may need additional licenses to run a child activity center. You will need to contact state officials to determine exactly what you need to operate an indoor playground business in your city and state. For example, if you plan to serve food at your indoor playground, you may need a specific license for food handling. Indoor play area requirements are important and need to be acquired.

Once you have all the necessary licenses and your location picked out, it’s time to install your playground. Soft Play takes care of the installation for you, so you do not need to worry about hiring a construction crew for your playground. Our installation professionals are trained and certified to ensure proper installation and care with every playground.

Once you have your new playground in place, it’s time to enjoy your hard work and reap the benefits of fun. First, you’ll need to promote your playground and get families excited to check it out. Here are ways to spread the word and generate buzz in your community:

• Have a grand opening: Invite families to stop in and play during your grand opening. Make sure to have special offers like party discounts or free samples during the grand opening.
• Set up a website: If you already have a business website, don’t forget to add information about your playground. If you need a site, make it a priority to set one up. Also, join social media groups to promote your brand and connect with customers. Share family friendly tips on social media to build trust and appeal to your target audience.
• Sign up for an email service: Make sure you can send newsletters, updates and special offers to current customers and potential customers by gathering email addresses on your site. Email is one of the top ways to keep customers engaged at a low cost.
• Get involved: Get involved in your community to promote the benefits of playgrounds for kids. Become an expert on the subject of Soft Play and share your knowledge with others. Join local parent organizations and let it be known that you are not just another business owner, but also care about the community as a whole.
• Advertise in print and online: Place ads and coupons in local papers and magazines, as well as via online sources, to make sure you reach as many people as you can.

The goal of advertising is to raise awareness among your target audience about the exciting new product or experience you have to offer. You also want to educate customers about the benefits of your product. Once families experience how fun and convenient your playground is, they will continue to return and share their positive experiences with friends and other family members.

Ongoing Maintenance for Your Playground

Soft Play playground equipment is designed to be low-maintenance, so you can spend less time worrying and more time focusing on your customers and business goals. Each playground component is made to last thanks to high-quality materials, and a commitment to quality control at state-of-the-art facility in Monett, MO. Our customer service team knows our equipment inside and out, and are available to answer questions or identify parts if you do need to maintain, repair or update your equipment.

Although Soft Play equipment is durable and easy to maintain, it’s still smart to make maintenance part of your budget and business plan. Schedule days for cleaning as germs can build up quickly in play areas, and immediately replace or repair anything that is broken, loose or damaged.

Contact Soft Play to Learn More

Are you excited to attract customers to your business with the best playground you can find? Are you ready to launch an indoor playground business? Starting an indoor play center might feel overwhelming, but Soft Play is eager to help you through every step of the process from financing to installation.

Since 1984, Soft Play has been the global leader in contained playground equipment and has installations in more than 60 countries . We are committed to providing excellent service and unique custom playgrounds so everyone can have fun. We are proud to say we are experts at bringing families back to businesses again and again. At Soft Play, we understand the importance of getting kids back to play and offer expert solutions and design options to fit your needs.

Why choose Soft Play? Here are a few reasons:

• Finance solutions: We offer competitive playground equipment prices and financing options, so you do not have to wait to invest in your business. We are happy to walk you through every step and pick an option that is best for you.
• Design consultation: We work with you to design custom playgrounds that fit your budget, space and audience. Whether you want a large themed playground for your new retail space or a smaller play area to draw families to your restaurant, we can’t wait to help make your vision a reality. We will make sure your playground is fun, exciting, innovative and encourages active play.
• Sales support: Our customer service professionals are experts when it comes to our equipment. They are ready to answer any of your questions and help you decide when it is time to repair or update equipment. Our sales representatives are pleased to guide you from design to installation to make sure the equipment will be fun for your audience and all-inclusive.
• Expert installation: We make sure certified professionals install every piece of your custom playground, so you can rest assured that your playground is ready for use.

Starting an indoor playground is a great business investment whether you wish to add a playground to your existing business or enter the industry anew. At Soft Play we have the tools and knowledge of indoor playground industry trends to make your new area a success. Don’t wait to give your business a boost — contact Soft Play today to help you open an indoor playground!

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• Business Plans Handbook
• Business Plans - Volume 03
• Indoor Playground Business Plan

Indoor Playground

BUSINESS PLAN

KID'S WORLD

5568 Inkster Rd. Livonia, MI 48150

This plan is for a franchised indoor children's playground. The plan provides a good description of possible competitors and the methods that will be used to achieve a competitive advantage in this industry.

EXECUTIVE SUMMARY

Mission and strategy, competitive analysis, pricing, profitability, and break even, management and staffing, contingency planning, financial projections.

A market opportunity exists in the Western Detroit area to service children aged 13 and under with a supervised indoor exercise and recreation facility. Market research shows that children often do not get the required amount of exercise to maintain a healthy lifestyle. Indoor playgrounds provide an outlet for active children during inclement weather or when the temperature is too hot or cold for outdoor play. Furthermore, parents want an environment for their children to play without harsh language and an arcade atmosphere.

Proposed Business

Kid's World will provide a safe, clean, and stimulating environment for physically active children aged 13 and under to play in and explore. Kid's World's supervised, visually open play area will ensure children's safety, while challenging them to reach, think, interact, explore, and have fun. The store will require approximately 14,000 square feet, consisting of a giant 5,000 square foot play structure for children over the age of 4, a smaller play area for toddlers under the age of 4, an area with several interactive skill games, a snack bar with seating to accommodate 100 to 125 persons at a time, and a merchandise and souvenir stand. Both play areas have soft indoor playpark equipment with extensive padding and no sharp edges. Furthermore, the game area will not offer video games, pinball-type games or games with a violent theme. For family celebrations, such as birthdays and special occasions, Kid's World will offer private party rooms hosted by trained staff to provide a child everything he/she would want in a birthday - several hours of supervised fun on the play structures, cake and ice cream, prizes, food and beverage, and game tokens. Kid's World desires playtime to be as rewarding for the parents as it is for the children, as they spend time together.

Kid's World will be located in a strip shopping center on the west side of Livonia. Within a twenty-five mile drive from this location, there are at least 49,000 children at or under the age of 14, living in a household with average annual income exceeding $45,000. Furthermore, the Census Bureau expects the communities of Canton, Plymouth and South Lyon to be the fastest growing regions of Wayne and Washtenaw Counties over the next decade.

The business will be operated on a full-time basis by a manager, Alice Cushaw, who has had over 3 years of restaurant management experience. In addition, all member-managers will actively assist in the management of the business on a part-time basis.

Loan Request

The owners are requesting a loan to fund a portion of the start-up costs and inventory. They are also requesting a line of credit in the amount of $500,000. The owners are contributing $35,000 to the business venture and various investors are contributing another $40,000. The money will be needed in equal monthly installments commencing three months prior to opening and will be repaid in a steady manner from available operating cash flows. The loan will be entirely repaid within five years after opening with payments beginning three months after opening.

Kid's World is a diversified destination family entertainment center combining recreation, entertainment, and restaurant facilities that creates substantial drawing power. Kid's World's basic focus is children's play and fitness for 1 to 13 year old children. At Kid's World, these activities have been packaged into a safe, clean, climate-controlled, supervised environment for children aged 13 and under to exercise and have fun while stimulating their imagination and challenging them physically. The indoor playpark is based on the premise that if you set a large number of children inside a safe, yet challenging, imaginative soft playground area, they are going to have fun. They are also going to develop basic motor skills, social skills, muscle tone, and self-confidence. Furthermore, the parents can enjoy hours of close interaction with their children in a safe, secure, and stimulating environment.

Currently, there are no other indoor children playgrounds in the Western Detroit area. In addition, there are relatively few alternatives for children's birthday parties. Kid's World will be able to immediately fill this void in the market by providing extensive recreation, entertainment, and restaurant facilities for children to play in and explore. Within 1 year, Kid's World will be known as the primary recreation facility for children aged 1 to 13 and the destination of choice for children to enjoy birthday parties with friends. Kid's World's safe, secure, and clean environment will assure parents while providing opportunities for their children to have fun in a stimulating environment.

Kid's World will base its appeal on providing a stimulating indoor environment for children to play in, while adhering to the strictest quality control standards emphasizing excellence in service, safety, security, food quality and value, sanitation, cleanliness, and creativity. Furthermore, Kid's World is dedicated to the continual development of creative themes and interactive designs that have entertainment and educational value that will ensure Kid's World's competitiveness and success in the family entertainment market years into the future.

Indoor playgrounds serve an increasing need in our society. Studies show that American children are less active and less fit than they were even five years ago, probably due to increasing time in front of television sets and high calorie-high fat diets. Studies have also shown that less active children are more likely to be overweight, and overweight children have a greater propensity to become overweight adults. As people have become more aware of the healthy aspects of their lifestyles, enrollment in adult health clubs, aerobic exercise, recreational activities, and attention to nutrition has increased dramatically. This trend will continue as parents attempt to provide a healthier lifestyle for their children. Another area of parental concern is their children's safety. Nationally, as well as locally, concern for the physical well-being of children has created a further need for a safe play environment. This concern shows no sign of diminishing.

While it is difficult to determine the size of the indoor playground industry, there are currently about 49 million children 12 years old or younger in the United States and this figure is expected to rise to 51 million by the year 2000, according to the Bureau of Census. There are approximately 26 million households with children younger than 18 years of age, who spend about $1,800 per year on family entertainment or $46 billion annually. Per-capita expenditures on children's activities are likely to rise as families with children spend a larger percentage of their income on recreation. Children aged 4-12 spent, from their own income, $6 billion in 1989, up 41% from 1984. This increase in discretionary income is coming from several factors. First, the increase in dual income families has provided for more discretionary income to be spent on children. Second, women are having children later as evidenced by the rising birth rate among women in their thirties. Third, per-capita family income is increasing and families are choosing to take wealth increases in the form of leisure. Last, grandparents are living longer and spending more on their grandchildren. Based on these demographics, industry analysts believe that there is room for about 600 store locations in primary markets throughout the United States and an additional 200-300 in secondary markets.

The Customer Need and the Target Customer

With the recent concerns over child safety on outdoor playground equipment, many schools have elected to remove their playground equipment entirely. Parents are more aware than ever before over the safety and security of their children's play areas. Consequently, a safe, supervised indoor play area will enable parents to relax while their children enjoy playing in and exploring the soft indoor playpark.

Kid's World will target children aged 13 and under within a 25 minute drive of Western Livonia, comprising about 250,000 people of which at least 49,000 are under the age of 13. Within a five-mile radius of Livonia, census information indicates there are approximately 23,000 children aged 13 and under, living in a household with an average annual income exceeding $55,000. These customers will form Kid's World's primary market base. Kid's World will also target children in the outlying regions of Oakland County.

Product Description

Kid's World is geared for children 13 years old or younger who desire an imaginative, challenging, and fun environment in which to exercise, play, and explore. For safety, children must be accompanied by an adult in order to be admitted and adults are not permitted to enter without a child. Furthermore, each person admitted to the playpark will receive a color-coded wristband identifying him/her with rest of the party. To further promote security, each person's wristband will only be removed when the entire party is present together at the exit desk. Trained staff will supervise the play areas at all times to ensure adherence to the playpark rules while assisting the children to maximize their enjoyment of the facilities.

There will be several play areas within Kid's World; the largest, a 5,000 square foot structure targeting children aged 4 and over, will be comprised of a series of colorful tubes, slides, ball baths, climbing structures, air and water trampolines, obstacle courses, ramps, and stairs. A smaller play area will cater to toddlers and consist of cushions, ramps, a small ball bin, and toys. To encourage active participation by parents, all play areas will have a visually open design with comfortable rest areas in full view of the play structures.

Kid's World will also be equipped with a smaller area of interactive games designed to promote eye and hand coordination. This area will include the "Magic Keyboard", a unique piece of musical play equipment specifically designed for Kid's World. Parents and children can also play several games of skill to win tickets redeemable for prizes. There will also be a snack bar with seating for 100 to 125 customers at a time. It will serve food and beverages that appeal to children and parents such as pizza, hot dogs, salads, sandwiches, popcorn, pop, fruit juice, cappuccino, cake, and ice cream. In addition, Kid's World will have a merchandise counter with small souvenirs emblazoned with the Kid's World logo such as T-shirts, sweaters, and hats.

Kid's World will have six private party rooms and will offer packages for birthdays and other special occasions hosted by staff members, significantly reducing the hassle and mess for parents. The design of the rooms will allow for groups as large as 30 children at a time. For family celebrations, Kid's World will offer three birthday packages for parties of 8 of more, consisting of a two hour limited time of play, birthday cake and ice cream, free game tokens, and, depending on the type of package, pizza or hot dogs, party favors for the guests, and a special gift for the birthday child.

Strategy and Approach to the Market

Kid's World will strive to appeal to value-oriented customers who desire hours of entertainment for their children at reasonable prices. Kid's World will be competitively priced at $4.95 for unlimited play which is comparable to other forms of entertainment. However, the distinguishing feature of Kid's World will be its clean, safe, secure environment for children to play in while parents can either relax or participate in their child's activities.

Advertising

Kid's World will reach its target customers through such advertising media as local newspapers, local television, and direct mail campaigns. Local television advertising has been found to be very effective in reaching the target market segment of children 13 and under, so we will focus our efforts here. The advertising and promotion campaign will be funded through operating cash flows and will build upon the close proximity of the store to the corporate location. In addition, the franchisor will assist its franchisees through regional advertising programs to obtain synergy among all franchisees within the region. Kid's World will initially promote its concept through a Grand Opening advertisement campaign employing an invitation-only free evening for local business and government leaders and their children as well as local radio coverage. The franchisor will assist in the preparation of initial advertising and scheduling of promotions.

Location Characteristics

The nature and location of Kid World's business will support both destination and walk-in shopping. Since the majority of birthday parties are pre-planned events, the exact location of Kid's World with respect to major shopping centers is not as critical as it is in other retail businesses. However, parents shopping with their children may desire an outlet for their children in the form of indoor exercise and recreation. Once customers are aware of Kid's World's location, they will return again and again. Figures from the corporate store indicate an average return rate of seven times per child per year. Our financial forecasts conservatively project 1/3 less. The awareness of our location will develop over several months due to advertising, word of mouth, and simple observation by shoppers in the area.

Kid's World will locate in Livonia on Inkster Road in the Heights Shopping Center. This shopping center consists of two separate buildings totaling 73,480 square feet of rental space and contains both destination and walk-by businesses. The center is primarily focused on providing family related services to the local community. Within three miles of this location, census data indicates there are 9,854 children under the age of 14. Within five miles of this location, census data indicates there are 23,061 children under the age of 14. In addition, there are several elementary schools located in the proximity, a day care center directly behind the shopping center, and many other child-related businesses within a few blocks along Inkster Rd. in either direction.

To better ensure Kid's World's success, the franchisor, Kid's World, Inc., must approve the final location and subject it to their proprietary location requirements.

Unique Market Characteristics

Weekly usage patterns.

With 60 to 65% of the costs fixed and only 35 to 40% variable, even small increases in capacity utilization can have a major impact on profitability. With a projected 60% of revenue coming from Friday through Sunday, it will be important to effectively utilize capacity on weekdays. Kid's World will provide the following services to increase customer usage during this period: group discounts to day care centers, churches, community groups, schools, etc., a frequent user card to encourage repeat customer visits, nutritious food to attract health-conscious families, and promoting birthday parties during the week.

Seasonality

The winter months are usually the strongest, and the beginning of spring and the beginning of the school year are usually the weakest periods. On a quarterly basis, Kid's World's best quarter should be the first, followed by the third, second, and fourth quarters. To manage this seasonal variation in customer demand, management will actively monitor weekly sales volume and maintain a flexible staffing arrangement.

Threat of a Fad Product

There is a risk that children may tire of the concept of indoor padded playgrounds. To keep the concept fresh, Kid's World will strive to introduce new play equipment, skill games, and/or new marketing concepts annually. In addition, the franchisor is committed to ongoing research and development in the area of child interaction and stimulation through consultation with staff child psychologists.

Safety/Liability Concerns

To reduce the potential for injuries and lawsuits, Kid's World will employ every means possible to protect children from hurting themselves on the play equipment. Kid's World will only utilize the softest and most extensively-padded equipment in the industry. Furthermore, Kid's World will employ trained staff to continuously monitor each play area and enforce the rules of the playpark. The playpark will be designed to provide parental viewing on all sides and at all times. Parents will also be encouraged to play in the equipment with their children (knee pads will be available for a nominal charge.) In addition, security wristbands will be issued to each person upon entering to ensure the child's safety and prohibit stranger abduction of children. Strict security measures will be observed at all times. Kid's World will carry a $1 million per occurrence liability insurance policy in the event of lawsuit.

Nature of Competition

Competition in the children's recreation and entertainment industry consists of a highly diverse group of children's activities, including television, libraries, YMCA's, health clubs, parks and other recreation centers, movies, the zoo, and related activities. All of these activities provide for enjoyment by both the parents and the children. However, an indoor playground offers a safe, clean indoor environment for physical activity that is specifically designed for children. It provides children with the security and the skill development opportunities that parents desire.

The indoor playground industry is relatively new. Among the existing players in the indoor playground industry, competition is fragmented. The only company with a strong national presence is Surprise Land, possessing over 250 store locations across the United States, Canada, Mexico, and Europe. A significant threat also exists from Connell Corporation, which has started an indoor playground concept of its own, Jungle Play. Although Jungle Play is still in a testing phase, Connell's has the resources and experience to expand its concept rapidly. In addition, there are numerous regional players with fewer than 10 stores across the nation, although relatively few of them are actively seeking franchisees.

Presently, there are no indoor children's playgrounds operating in the Livonia area. Within a 25 minute drive from Livonia are the following primary competitors to Kid's World:

Competitive Advantage

After reviewing the characteristics and environment of each of the above competitors, we believe that Kid's World offers several advantages over the existing competitors. First, Kid's World offers the lowest admission price, charging $4.95 per child, of any establishment dedicated to providing an extensive indoor playground. Second, Kid's World encourages parents to participate in their children's recreational activities through a careful layout of the playpark which ensures high visibility of the play areas and close proximity for the parents. Third, Kid's World is the only indoor playground operator that provides such unique play equipment as the Magic Keyboard, an air mattress, and games of skill that are specifically designed to promote child development. Fourth, Kid's World goes to extra lengths to ensure the safety and security of the environment by providing such extras as CPR certification for all employees of a certain level, video monitors of the entire playpark, and strictly controlling the entrances and exits to Kid's World. Last, with the corporate Kid's World location being so close to Michigan, name recognition should be high, as many of the potential customers have already been to the existing Kid's World location.

Analysis of Competitors

The following section briefly discusses each competitor's market position, strategy, and unique operating characteristics.

Captain Sam's

Captain Sam's primary focus is on an extensive array of video games, mini-rides, interactive skill games, a puppet show, and food. Although it has a small playpark area for toddlers, Captain Sam's is primarily dedicated to food service and games. Consequently, it serves as a destination business for pre-planned visits, centered around its food service for family outings and birthday parties. It is an open layout with more windows than other children's entertainment centers and has the atmosphere of a large noisy cafeteria. It charges no entry fee, but maintains high prices for its pizza, ice cream, and beverages. Catering more to parents, the Ypsilanti location allows smoking and serves alcoholic beverages along with pizza, hot dogs, and nachos. It does not instill a sense of security for the parents, nor does it provide the challenging and stimulating environment that children desire.

Surprise Land

With over 250 fun centers in operation as of April 1994, Surprise Land is the largest operator of indoor playgrounds for children. The company was founded in 1990 and began its early growth through franchising. In 1993, Reeves Entertainment acquired 20.1% of Surprise Land's shares with an option to purchase additional shares up to a 51% interest in the company. In order to sustain market leadership and pre-empt competitive threats, Surprise Land has adopted an aggressive expansion campaign with the goal of securing what they feel are the best locations across the country. Specifically, Surprise Land plans on opening 90-100 domestic fun centers a year and franchisees are expected to open another 100 in 1994, the majority of which will be opened by Reeves Entertainment. At this rate, they will have an estimated 360-400 stores by the end of this year and 600 by 1996. This rapid expansion is evidence of the acceptance of this concept by both children and adults. To complete this aggressive plan, Surprise Land has adopted a regional organizational structure and invested in systems to operate and maintain a chain with hundreds of stores in many markets.

In October, 1993, Surprise Land entered the Detroit market by opening its first store location in Warren (east side of Detroit), followed by additional locations in Taylor (downriver area), Plymouth (western suburb), Farmington Hills (northern suburb). Surprise Land has future plans for an additional locations in the metro-Detroit area, including Troy, Novi, and Ann Arbor. In addition, Surprise Land is planning to locate in such outstate areas as Flint, Lansing, Traverse City and Saginaw.

Surprise Land is similar in concept to Kid's World in that it provides a controlled environment for children to play in and explore with their parents. It consists of the Menster-Zone, a 3,000 to 4,000 square foot play area for children aged 4 to 12, the Tiny-Zone, a smaller play area for toddlers, an area of interactive skill games, five or six party rooms, and a snack bar serving foods such as pizza, hot dogs, popcorn, and ice cream. In addition, Surprise Land provides a quiet room for parents who wish to let their children enjoy the play areas unattended.

The primary difference between Surprise Land and Kid's World is the emphasis on a safe, clean, secure atmosphere as well as the level of encouraged interaction between child and parent. While Surprise Land promotes the safety and security aspects of its play areas, it's easier for children to leave the premises unnoticed and it allows adults to tour the facilities unescorted. Furthermore, the snack bar seating is usually located in the center of the play space, leading to sticky floors, congested walkways, and visible food wrappers next to trash dispensers in every interior corner of the playpark. The play structure at Surprise Land is contained in a smaller area than Kid's World and is typically placed in a corner of the facility. This can lead to heavy congestion in the play area during peak hours, a restriction of airflow throughout the playpark, and a general lack of incentive for parents to interact with their children. Kid's World's play structure is located in the center of the room with benches provided on the walls surrounding the structure, promoting visibility at all times by the parents and staff monitors and encouraging parent/child interaction.

Jungle Play

A subsidiary of Connell Corporation, Jungle Play started in 1991 and has since grown to approximately 40 locations nationwide. Connell's plans for Jungle Play include a steady but cautious introduction of new stores located primarily in major market areas. In the Detroit area, Jungle Play outlets are located in Southfield, Dearborn Heights, and Redford Township. Connell's usually builds free-standing structures on land located adjacent to major shopping malls. Therefore, it is likely that Jungle Play may be looking at the available real estate on the exterior of Novi Mall for future expansion. If Jungle Play were to locate in Novi they could represent formidable competition for Kid's World. However, the strong demographics of this area suggest that it could support 3 or more children's indoor play facilities.

Jungle Play is similar in concept to Kid's World and Surprise Land in that it provides a safe, secure, clean, and stimulating environment for children to play in. Jungle Play is somewhat larger in size than Kid's World. Unlike Surprise Land, Jungle Play's play structure is designed to promote parent/child interaction. Jungle Play is particularly adept at providing birthday services by including such extras as a name board to alert all customers of the day's birthday children, a cart for transporting birthday gifts, and extremely friendly and courteous staff. Jungle Play obtains additional business by giving discounts during non-peak hours, allowing groups to rent the facility after-hours, and promoting such activities as overnight lock-ins, fund raisers, and school fieldtrips.

Kidville opened its first and only location this past March in Garden City and has since expressed interest in franchising its concept. Similar in size and appearance to Surprise Land, Kidville offers a multi-level play-park complete with treeforts and slides for children over 4 and a separate play area for children under the age of 4. It is similar in concept to Surprise Land, Jungle Play, and Kid's World, but it does not represent a formidable threat since it has not yet decided to expand via franchising or additional corporate locations.

Kid's World will derive its sales revenues from admissions, games of skill, restaurant/snack bar operations, birthday party packages, and gift shop and souvenir sales. A detailed description of each component of revenue is provided below.

Admissions/Games

Admission fees will be $4.95 per child (ages 1-17) which includes unlimited play in all of the play areas. Adults will be admitted free of charge and encouraged to play in the play areas with their children. This price compares favorably to other forms of family entertainment such as movies where both adults and children must pay admission. The goal of Kid's World is for a visit to the playpark to become a regular family event. Reflecting this goal, a frequent user card will enable a customer to receive discounts off future admissions to Kid's World after a specified number of paid admissions to the playpark. Statistics from the corporate location show the average child returning seven times per year. In addition, Kid's World will offer group discounts for groups of 12 or more at $3.95 per person to encourage day care centers, youth group activities, and summer camps to visit the playpark. For larger groups of 30 or more children, Kid's World offers a special package at $5.00 per child that includes unlimited play in the playpark, two game tokens per child, a slice of pizza or a hot dog, and a beverage.

The 125 person capacity snack bar will offer food products that appeal to both children and parents alike. It will offer traditional children's favorites such as pizza, hot dogs, and popcorn as shown below on a sample menu:

Birthday Party Packages

For family celebrations Kid Kingdom will offer three birthday packages for parties of 8 of more, consisting of a two hour limited time of play, birthday cake and ice cream, free game tokens, and, depending on the type of package, pizza or hot dogs and a special gift for the birthday child. The three birthday packages offered include the following:

έ Regal Celebration $7.95 per child Three game tokens per child Invitations/Balloons Nine-inch double layer cake Pop/punch Ice cream

έ Supreme Celebration $8.95 per child Three game tokens per child Invitations/Balloons Half-sheet cake Pop/punch Ice cream Pizza or hot dogs Special Kid Kingdom gift for the birthday child

"Supreme "Theme" Celebration $10.95-$12.95 per child Includes all items in Supreme Celebration, plus: Special theme gifts for all children in the party Custom decorated half-sheet cake

Gift Shop/Souvenirs

The gift shop will contain various souvenir merchandise available for sale such as T-shirts, hats, sweaters, and wristbands with the Kid Kingdom logo. The gift shop will also provide various prizes and gifts for children to redeem with tickets received from completing the games of skill.

Break-Even Analysis

Projected fixed costs for an average month include the following:

Hence, at a projected gross margin of 78% (contribution margin of 83% less franchise fees of 5% of sales) monthly break-even volume is:

$50,919/.78 = $65,281 or 4,340 visits per month

Per the attached financial projections, break-even is projected to be achieved at a monthly revenue level of $65,281. Given our revenue forecasts of $82,213 per month, it appears that we will be able to exceed break-even revenue levels at significantly less volume. Competitive assessment suggests that indoor playgrounds of comparable size and scope typically exceed the break-even monthly sales level within the first month after opening.

Hours of Operation

Initially, store operating hours will be from 10 AM to 9 PM Monday through Thursday, 10 AM to 10 PM Friday and Saturday, and 12 PM to 6 PM on Sunday.

Sources of Inputs

Description of Cost Items

We have identified a prospective rental location of 14,000 square feet and have negotiated a ten-year lease with one ten-year optional extension. The rental payment schedule is as follows:

The terms of this lease call for a one month's rent security deposit. Per agreement with the prospective landlord, our first ninety days of occupancy will be free of rent. We anticipate the first thirty days of that period will be devoted to equipment set-up and staff training, hence we estimate approximately sixty days after opening as the date the first rental payment will be due. The lease does not contain a percentage rent clause based on achievement of certain sales levels.

Leasehold Improvements

The majority of leasehold improvements will be completed by the landlord prior to our occupancy. These include painted outer walls, carpeted and/or tiled flooring, acoustical tile drop ceiling with recessed flourescent lighting, two restrooms, and a manager's office. Items we have budgeted for include: party room construction (estimated by landlord at $10,000), signage - an exterior facade sign, an interior neon sign, and an exterior sign for the shopping center's pylon sign [estimated at $15,000), front entry desk and counter-tops (estimated by franchisor at $9,000), and wall decorations, decorative lighting, party room decoration, storage room shelving and lockers, workshop/game repair room, and miscellaneous items (total budget of $11,000).

Fixtures and Equipment

In addition to the leasehold improvements, we have budgeted $50,000 for restaurant fixtures and furnishings. These include pizza ovens, refrigeration units, beverage dispensers, sinks, countertops, tables and bench seats, and storage shelving. The two most significant equipment expenditures are the main playpark structure (including the toddler play structure) and the various games of skill. The total cost of the playpark structure has been budgeted at $220,000 and depends on many factors, including its overall size, configuration, and complexity. The franchisor has developed several playpark layouts to accomodate the unique characteristics of our rental space. Preliminary estimates from two indoor playground manufacturers have been in the range of $175,000 - $200,000 for the entire playpark structure. Typically, 50% of the total purchase price is due upon ordering the equipment and the remaining 50% is due upon shipment. Lead-time for playpark equipment has been estimated at 7-8 weeks. The total cost of the games of skill has been budgeted at $75,000. The franchisor has developed an extensive list of pre-approved games of skill to select from, most individual games priced between $2,000 and $5,000 each. Most game equipment companies also require 50% down when ordering and the remaining 50% upon shipment with an estimated lead-time of 4-6 weeks. We have also budgeted $15,000 for computer hardware, $5,000 for the franchisor's software programs, and $5,000 for miscellaneous office equipment, such as a copy machine, fax machine, public address system, and telephones.

Depreciable Total and Method

The depreciable costs listed above are summarized as follows:

These capital expenditures will be depreciated using the Modified Accelerated Costs Recovery System (MACRS) over various lengths depending on the useful lifes of the assets as mentioned above.

Utilities include electricity, gas, and water/sewer. Our estimates of electricity, gas, and water/sewer costs (based on franchisor estimates and contact with Detroit Edison, MichCon, and the City water department), suggest annual utilities will cost approximately $25,000.

Kids World will carry extensive insurance policies protecting it in the event of lawsuit. The insurance policies carried include: $1,000,000 per incident premises liability insurance covering bodily injury, property damage, and non-owned autos; $1,000,000 product liability insurance coverage; 100% replacement coverage on building contents and leasehold improvements; three month business interruption insurance, and worker's compensation insurance as required by law. These insurance policies have been estimated at $15,000 on an annual basis.

Inventory will consist of redemption items, game tokens, tickets, identification bracelets, paper products, food ingredients, restaurant supplies, and gift shop sale items. The budgeted initial investment in inventory is $7,500 based on franchisor estimates.

Working Capital

Based on franchisor estimates, Kid's World will require $50,000 of available cash, line of credit, or other liquid reserves to cover operating expenses for wages, utilities, rent, and similar expenses.

Business Organization

The business will be organized as a partnership under the name of Kid's World. Thomas Jones and Alice Cushaw will serve as Registered Agents.

Staffing Plan

In the event Kid's World's acceptance is slower than anticipated, expenses can be reduced as follows:

Certain games and planned playpark additions can be leased, reducing up-front cash expenditures by $20,000 - $50,000.

The Secretary position can be eliminated and its job responsibilities performed by the two Assistant Managers. This can reduce salary expenditures by $20,000 annually.

Since the majority of Kid's World's employees are part-time and only scheduled to work up to two weeks in advance, the employment level can quickly and easily be adjusted to operating conditions.

Management fees can be reduced or eliminated entirely, as the member-managers do not depend on the business as their main source of income. This can reduce expenditures by up to 5.0% of sales, or up to $50,000.

These savings can significantly reduce operating expenses in the event of unforseen circumstances, lowering the break-even volume of the store.

Projected Revenue Buildup

Projected Revenues by Source

Projected Start-up Costs

Projected Salary and Wage Expense

Management Fee Schedule

Projected Capital Contributions by Source

Proforma Income Statement - Year 1

Proforma Balance Sheet - Year 1

Proforma Statement of Cash Flows - Year 1

Proforma Income Statement - Year 2

Proforma Balance Sheet - Year 2

Proforma Statement of Cash Flows - Year 2

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Children's Recreation Center Business Plan

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Cabin Fever

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

This plan provides detailed information on the initial establishment and operation of Cabin Fever – Child Fun Center. The plan outlines the plans for business growth, methods, procedures for operation, and infrastructure.

Cabin Fever will offer young families in Bemidji, MN and the surrounding area a quality family recreation center, with jungle gyms, soft contained play structures, slides, and imagination-inspiring play areas for children ages 2 to 5. All equipment is safety-tested and approved, employees are trained in child safety and first aid. Parents will have special seating areas where they can watch their children play actively and safely, even in the coldest, darkest months of winter, and can purchase snacks and drinks from a limited selection while they wait.

Brian Solum (owner) and Derek Giesbrecht (advisor) are responsible for the design, building, and development of the daily operations outlined in this plan. Derek is the President of Soft Play, LLC, a leading indoor playground manufacturer, and has been in the Active Play industry for many years. He has established Soft Play as the leader in the Family Entertainment Industry. Brian is a former real estate agent, a father of four, and has over seven years of experience in the child care industry. Brian will be supported by a team-oriented and customer-focused staff. Cabin Fever will retain the services of a CPA firm to perform professional company audits, prepare taxes and payroll, and serve as a business consultant to assist in setting achievable long-range strategic goals.

Based on the current prices in the child recreation market, Cabin Fever has the potential to make sales of $158,000 the first year. With good management, we expect a revenue growth of five percent annually. The following ratios apply in the first year:

• Gross Margin above 95%
• Net Profit Margin above 12%
• Pre-tax Return on Assets over 20%
• Net Worth over $76,000 by year three

We will minimize risk factors to Cabin Fever’s success by:

• Obtaining sufficient capital to build and cover expenses of initial operation. All investor capital will be held in escrow until the project is totally funded.
• Minimizing overhead costs, which increases the bottom line profit.
• Building a sufficient customer base. We have determined an excellent location using demographics, and our aggressive marketing program will ensure the desired results.
• Establishing community involvement to demonstrate how the business will contribute to a better quality of life.
• All payments will be cash or check, which eliminates the need for invoicing and collections.

1.1 Mission

• To provide the greater Bemidji area with a safe, fun, exciting (and profitable) child entertainment facility for children ages 2-5, and their parents, which will help children grow physically, emotionally and mentally through interactive play with their parents, peers and the facility itself.
• To listen intently to customer needs regarding the entertainment, activities and facilities relating to safety, environment and services and act accordingly with respect to those needs.
• Develop a system of safety, security and accountability on the property between the staff, paying clientele and the general public.

1.2 Keys to Success

1.3 objectives.

• Attract 30% of my target market to use “Cabin Fever” 1.5 times per month in the 1st year. Based upon the most recent census and demographic statistics available for this region, achieving this objective would mean attracting 3,600 paying children and 1,080 adults through the door the 1st year.
• Gain market share of 40% by 3rd year.
• Reduce debt load 37% by end of 3rd year.

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Company summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">.

Cabin Fever – Child Fun Center is a start-up business that will be owned, operated and managed by Brian Solum. Cabin Fever is an adult supervised children’s play center that offers a series of parent/child activities devoted to the physical, emotional and social development of children. We plan to offer a large, full scale play structure for the child and a smaller play structure for toddlers. In addition, we will also offer nominal vending, snacks and beverages for customers. The facilities are designed to entertain, exercise and stimulate children while reinforcing good social skills in a group play environment.

Cabin Fever offers a unique service in that there is no other program like it in the city of Bemidji or outlying areas. Though the city does have a restaurant with a small scale facility and run some classes for children through their parks and recreation department along with a gymnastics facility open to the public, they are not part of a comprehensive program for kids and parents. Cabin Fever will be a year round, indoor facility that hopes to be located in the booming commercial center northwest of town.

Over the past five years, there has been tremendous housing growth in the Bemidji area. Most these units are being bought or rented by families with young children. Brian Solum is starting Cabin Fever to offer parents and children a safe and exciting environment in which to spend time together and play.

Brian is a parent of three boys and has over seven years experience in the child care industry. He also has four years in a customer service based profession (real estate sales) with an additional two years sales management experience so he is currently capable of handling the sales/management, finance/administration and safety/customer relations areas, respectively.

• Working Name : Cabin Fever – Child Fun Center
• Location : Hoping for northwest Bemidji location near major shopping area, motels and airport.
• History : Start-up business for Bemidji, MN but this type of business has been successful in over 8,500 cities in the US and is also internationally in the UK, Spain, Australia, Canada, France and Japan.
• Services : Active Play = Fun, physical, social and mental entertainment to kids and parents along with modest food/beverage sales.
• Customers : Children ages 2-5 and their parents.

2.1 Start-up Summary

The start-up expenses for Cabin Fever include, play equipment, payroll, utilities, legal services, debt service and office materials needed for the facility. Brian Solum will invest $32,000. In addition, Brian will secure up to $100,800 in long-term financing to fund the enterprise. We will incur another $8,000 in short-term debt to finish financing.

Long-term assets includes most play equipment, and a larger service counter for the cafe area. Current assets includes furniture, lighting fixtures, some of the less durable play equipment, and appliances for the cafe area.

2.2 Company Ownership

Ownership and legal establishment is anticipated as a Sole Proprietorship and will be owned, operated and managed by Brian Solum with financial backing from a silent partner.

Products and Services

The service I am selling is called “Active Play.”

Physical Active Play for children Playing is fun at any age. If you don’t believe me, consider what you do to relieve the stress of an active day at work or school, or how you vacation, or what you spend your money on, if you have a hobby or interest. Or, if you have children, just watch how exuberant, carefree and energized they are when they are having a good time. However, there are other benefits to Active Play besides just having a good time.  Studies have shown that it is also a major factor in the appropriate mental, social, emotional and physical development of children.  When children are engaged in play, they are presented with various situations, interactions and challenges. As they develop competencies in these areas, they are honing the same social, mental and physical skills they’ll need in other aspects of life.

Vicarious Active Play for Parents There was a saying in my house when I grew up:  “If mama ain’t happy, ain’t nobody happy.”  I think what was meant by this was that we could drive her nuts on occasion, and when she was “nuts” we all suffered.  Those occasions were typically when, as children, we were bored or stuck in the house.  Therefore, I believe that this business is also selling fun, rest, and a social outlet for parents. When the kids are occupied, happy parents can enjoy a book, the newspaper, or a friend’s conversation over a cup of coffee or lunch. However, parents are also encouraged to participate with their children on the equipment themselves. Due to the nature and size of some equipment, it is able to withstand and support adults. The youngest children, in particular, will be happiest and most secure when playing with a parent.

Coffee, tea, juice, and snacks We have a small cafe area where parents can purchase food and drinks from a (very) small menu, including kid-friendly items like peanut butter and jelly or cheese and tomato sandwiches, animal crackers, fresh carrot and celery matchsticks, and muffins from a local bakery. The items are either pre-made or require very little assembly. It is important to us to offer only healthy and appropriate snacks. We are currently planning to offer only a couple different kinds of coffee and tea, but if we get enough interest, we may invest in an espresso machine later on, and train our part-time help as baristas, since the current trend toward gourmet coffees includes young parents.

Market Analysis Summary how to do a market analysis for your business plan.">

My market research was directly retrieved from the 2000 US Census, 2002 NARC Census and the BASC 2000 Demographics Study. Per the same data, and to get an accurate idea of current (2003) data, my totals incorporated the projected 1.3% annual growth rate to the demographics. My data was then targeted to the selected townships that use Bemidji for schooling and shopping. They were typically townships within a 24-mile radius around Bemidji. My projected income data from this demographic assumes that only one parent of the households will accompany their children to the facility.

4.1 Market Segmentation

My market demographic is 100% targeted to families, specifically, households with children in the 2 – 5 year-old age group in the Bemidji area.

4.2 Target Market Segment Strategy

Our research into the local market has indicated that a concentrated target marketing effort will yield the best results. We are therefore focusing on the 1,200 households surrounding Bemidji with 4,000 children between 2 and 5 years of age. Children in this age range are typically not yet in school yet, and in need of diverse means of recreation, including “play groups” with children of their parents’ friends. As members of this demographic, my wife and I fully understand the need and benefit of offering our children diverse recreational and physical outlets. From experience, this demographic will look for and seek out recreational opportunities for their children for not only the child’s benefit, but for the parent’s benefit as well. Out-of-home facilities that can entertain kids and give parents needed respite are in high demand.

This market is greatly under-served with respect to the services Cabin Fever plans to offer in the greater Bemidji area. The school system can provide this type of recreation to an extent, and there are some businesses that have recreational outlets. However, it is my observation that similar facilities are either too small, seasonal, have health hazards, or are not geared to younger children and their family. Winter is long here, and weather is unpredictable. “Cabin Fever” will be a preferred destination for families looking for something new, fun, and exciting for themselves and their children, especially if it promotes physical and social growth.

4.3 Service Business Analysis

About Soft Contained Play Equipment (Soft Play)

Soft Contained Play Equipment is a visually stimulating and mentally exciting configuration of tubes, slides, ladders, nets and mazes. It also incorporates devices which apply the kids’ own energies to make something move mechanically, like a sign or a front-end loader or a fire truck steering wheel. Some equipment is also designed to stimulate the child’s playful creativity such as the double-sided Fantasy Role Play Panel and the Magic Ball Popper. The whole approach of Soft Contained Play Equipment is to design their equipment through the eyes of a child. It is then developed through consultation with child development experts and adheres to ASTM F1918-98 safety requirements.

The Business

As previously mentioned, Cabin Fever is all about family recreation, specifically, child development and fun. As parents continue to look for fun and exciting activities for their kids the family entertainment center (FEC) has become increasingly popular. FECs have traditionally encompassed multiple attractions such as bowling, skating, mini-golf, batting cages, etc… but the one development that has really spurred the popularity of the FEC is soft contained play equipment. Soft contained play systems continue to be major draws to recent FECs. Kids love the fun and interactive play they provide, while parents appreciate the increased safety measures.

Local Competitors

There is a competitive market in the Family Recreation industry in Bemidji. Currently there is a roller-rink, seasonal water park, bowling ally, Gym-Bin, BSU Rec-center and a few city organized activities on a seasonal basis. However, there is no facility dedicated exclusively to building the social, physical, and mental interactions of children ages 2-5 and their parents in an exciting and stimulating environment.

4.3.1 Competition and Buying Patterns

Families make choices for family recreation activities based on cost, availability of activities appropriate for the entire household, and fun. Currently in Bemidji, activities for children under 5 are an after-thought. There may be a smaller wading pool at one end of the water park, or a special roller-skating class for 4 and 5 year olds. This discrepancy is most keenly felt by parents in the winter, when normal outdoor activities are curtailed for the youngest children. At the moment, parents of small children must choose between a small array of limited activities on a schedule not of their choosing, if they want any out-of-home play.

Safety is another major concern for parents of young children. Activities and venues that are perfectly safe for 10-year-olds may be extreme hazards for very young children. The need to be right next to their child during every moment of play in any of the existing offerings does not alow parents any respite or recreation.

Strategy and Implementation Summary

Emphasize Customer Service Cabin Fever will differentiate themselves from other facilities. We will establish our business offering as a clear and viable alternative for our target market.

Build a Relationship-Oriented Business Build long-term relationships with clients, not just an occasional visit. Let them become dependent on Cabin Fever. Make them understand the value of our services.

Focus on Target Markets We need to focus our offerings on the young family who want a place outside the home to have fun, relax, and experience top quality play equipment services.

Differentiate and Fulfill the Promise We can’t just market and sell service, we have to deliver as well. We need to make sure we have the service-intensive business we claim to have.

5.1 Competitive Edge

Cabin Fever’s competitive edge is its positioning as a strategic ally with our customers. By building a business based on long-standing relationships with satisfied customers, we simultaneously build defenses against competition. The longer the relationship stands, the more we help our customers understand what we offer them and why they should both frequent Cabin Fever, and refer it to other families. In close-knit communities like Bemidji, reputation is extremely important, and word-of-mouth advertising is invaluable. The 2 other factors in our competitive edge are:

• Location : Best location of any child type activity center — At the intersection of Interstate Highways 2 and 71 in the prime business district of the area.
• Service : Equipment and facilities to appropriately entertain the age group as well amenities catering to adults and parents in the same building. No other indoor facility in Bemidji offers such diverse services and facilities under one roof.

I do not expect parents to choose Cabin Fever exclusively over these other facilities 100% of the time, but I do believe that Soft Play equipment would be the facility of choice for play groups, birthday parties, and child recreation in the Bemidji area. There is also the possibility of Social Government Services and other health professionals directing their clients to the facility for potential therapy issues.

5.2 Marketing Strategy

Technically, my customers can come from anywhere: male and female, all races, every income level, and can be local residents or tourists to the area. That is why our marketing plan will start at the construction phase; by keeping in mind: if it looks fun, people will come. Thus the main factor to success is demonstrating that a person can enjoy themselves at the center while participating in an activity they choose. Realistically, I expect that initial customers will be more educated and affluent than the area’s average, since those types of family are generally the most concerned with providing appropriate stimulation for their very young children. We will therefore make sure to post flyers and advertisements where this group can see them.

By being on site full-time for the first year, I can make sure that customers are satisfied and can also gather information from them about the types of entertainment they most desire. This type of first-hand market research will prove invaluable in attracting more customers and retaining existing ones. A good experience for parents and children will produce best kind of advertising: word-of-mouth recommendations.

We will supplement this informal marketing with announcements, advertisements in the local newspapers and our website:

• Print Advertising : The Bemidji Pioneer, our local daily newspaper with a circulation of over 22,000, will feature daily ads 2 weeks prior to grand opening and weekly ones thereafter.
• Direct Mailing/Phone : Mailing lists relating to my target market are available and would be utilized weekly prior to and upon grand opening and on a monthly basis thereafter. Also, mailings and phone contact would be made to local youth organizations such as church groups, scouts and other social clubs that serve children.
• Signage : Because Bemidji is a vacation destination, the tourism market could be substantial. Roadside billboards on Highways 71 and 2 would be implemented on the four major conduits into town. Also, all local hotels, motels and resorts would be solicited to provide signage.
• Other Businesses : A relationship with the other businesses in town that cater to birthday parties (Party Store, Special Occasions, pizza restaurants) would be established to try and promote traffic to the facility. Advertising discounts will be offered in exchange for their service.

5.3 Sales Strategy

Cabin Fever will provide a venue in which young children can really enjoy their leisure time by participating in fun and exciting activities that require minimum strength or physical ability. Supported with great service and offered at competitive prices, I believe we have the winning combination.

Once customers choose to come to our location, they have already made a choice to buy our services. We get them there with marketing; we get them back again and again by continuing to offer high-quality, safe, and fun experiences for and with their young children. Our sales strategy involves continuing informal surveys of our customers about their preferences and needs, and keeping an open mind about changes in the adult areas. We may, in the future, institute a small cafe-type service, or offer space for young family book clubs, and so on, depending on feedback from parents.

5.3.1 Sales Forecast

My sales forecast assumes that, on average, 37% of my market (1,465 children, out of a possible 4,000) will visit 1.5 times per month, at an admission price per child of $4.75. We project that parents will spend an average of $4 per visit on food and beverages, at a 20% cost of goods. This would allow me an 80% markup on food and beverages, a reasonable amount given the savings we will get from doing prep work ourselves in the mornings.

Sales will be higher in the winter months, when outdoor competition and free activities are limited, and lower in the summer. In keeping with my sales goals, I anticipate reaching 40% of my market by the 3rd year.

Web Plan Summary

We are currently working on developing a website for Cabin Fever. A friend of the family is doing the design work for free, and Brian’s wife (who has a thorough knowledge of HTML) will update the content regularly – we do not plan on including any e-commerce capabilities, since they are unnecessary; the website is primarily a marketing tool. We plan to launch our website early in 2005.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Management: Initially, and for the first year, of operation I anticipate acting as owner/operator/manager. In the future, depending on cash flow or if a gap in service is identified, a FT manager would be implemented to work alongside myself and the rest of the team. Management will be responsible for overseeing all business aspects including but not limited to: Deposits, marketing, safety, scheduling, customer service and staff support and training, cleaning and general maintenance, food prep and service. Minimum qualifications are:

• Child Safety, First Aid / CPR certified
• Three years management experience
• Mature, responsible adult
• Enthusiastic, flexible and self motivated
• Knowledge of marketing
• High sense of professionalism

FT Employees : Based on my assumed hours of operation, I anticipate hiring one FT employee working a 45 hour week. I will look for adults interested and experienced with children who are child safety CPR and first aid certified. Responsibilities will include but are not limited to: Checking in and greeting customers as they arrive, general cleaning and light maintenance, food service. Minimum qualifications are:

• Experience with children in a play setting
• Child Safety First Aid / CPR certified

PT Employees : Again, based on assumed hours of operation I anticipate needing at least two PT employees to fill potential gaps in busy times and work weekend hours. While the business could be run with one PT employee I would hire one extra in the need of special circumstances such as holiday, party or weekend crowds as well as filling in for illness and vacation possibilities. Responsibilities would include but not be limited to: Checking in and greeting customers as they arrive, general cleaning and light maintenance. Minimum qualifications would be:

7.1 Personnel Plan

The company will make gradual investments in personnel on a need basis, always keeping in mind the number of children and parents serviced at the facility with respect to cash flow. Additional full-time paid management will be addressed after the first year of operation and an additional PT employee is built in to the Personnel Table. As owner, I do plan on being on site full-time and will fill the managerial role.

I am committed to paying my employees a fair and equitable wage for their hard work, and giving them benefits such as sick time and vacation time.

Financial Plan investor-ready personnel plan .">

The most important element in my financial plan is initiating, maintaining, and improving the factors that create, stabilize, and increase the cash flow. These items are:

• High visibility so as to create customer flow.
• A trained, enthusiastic and knowledgeable staff that answers to customer needs to keep them coming back again and again.
• Annual modernization and update of the facility equipment to create new experiences for children.

8.1 Important Assumptions

Commercial lending is currently set at 7% for long term (20 year) lending.

8.2 Break-even Analysis

The Break Even chart assumes fixed monthly expenses of approximately $9,600. The expenses are the total of estimated monthly utilities, phone, payroll, legal, insurance, marketing and rent figures. Variable monthly costs are shown as a percentage of total sales. Average Monthly Sales for the first year are anticipated around $13,200 and the break even point would be at $10,069, leaving adequate room and cash flow for possible costs initially overlooked. These figures show a comfortable cushion for operating expenses.

8.3 Projected Profit and Loss

The company will show a profit in the first year of operation. The yearly analysis is indicated in the table below, and the monthly analysis can be found in the appendix. Our most significant operating expenses will be payroll, marketing, and rent. We project a modest net profit increasing gradually over the next three years as we streamline operations.

8.4 Projected Cash Flow

Long Term Debt : My long term debt payments are based on a 10-year note, principle balance of $100,800 @ 7% interest. Principal repayments are shown below, while interest is listed in the profit and Loss. Although the yearly projections indicate a straight-line repayment, we may pay off more principal after year one, depending on cash flow.

Capital Improvements : Making changes to the play structure will need to occur as to keep the facility fresh and new for customers. These changes will take place on an annual basis after the first year with the liquidation of old play materials and the acquisition of new ones.

8.5 Projected Balance Sheet

My Projected Balance Sheet shows that I should not have any difficulty meeting my debt obligations. My Marketing Plan should be sufficient to meet the projections. Most significantly, Cabin Fever’s net worth will increase to approximately $77,500 by year three.

8.6 Business Ratios

The following table outlines some of the more important ratios from the Recreation Center industry. The final column, Industry Profile, details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code, 7999.

We project a higher ratio of long-term to short-term liabilities than is the industry standard. We also project higher expenses for operating expenses and advertising; part of this discrepancy is the result of being a start-up, with no existing reputation. Another is our committment to pay employees a fair wage with decent benefits, including sick time and vacation time. All asset to liability ratios indicate a high ability to pay our creditors.

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Indoor Playground Business Plan Template

Indoor playground financial plan.

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you admit 50 children per day or 100? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $100,000 on building out your Indoor Playground, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a Indoor Playground business:

• Location build-out including design fees, construction, etc.
• Cost of equipment and attractions
• Payroll or salaries paid to staff
• Business and liability insurance
• Taxes and permits
• Legal expenses

INDOOR PLAYGROUND BUSINESS PLAN OUTLINE

• Indoor Playground Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan
• 10. Appendix
• Indoor Playground Business Plan Summary

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