business plan escape room

How to Start an Escape Room Business

An escape room business provides customers with a place to play popular escape games. Games vary in complexity and duration, but most last for approximately one hour, including the pregame instruction. Teams must work together to solve puzzles through the discovery of clues. Escape room businesses usually have one or more game rooms and consumers pay per game. They can also rent out rooms for private games.

You may also be interested in additional unique business ideas .

Learn how to start your own Escape Room Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start an escape room business by following these 10 steps:

• Plan your Escape Room Business
• Form your Escape Room Business into a Legal Entity
• Register your Escape Room Business for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Escape Room Business
• Get the Necessary Permits & Licenses for your Escape Room Business
• Get Escape Room Business Insurance
• Define your Escape Room Business Brand
• Create your Escape Room Business Website
• Set up your Business Phone System

We have put together this simple guide to starting your escape room business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Escape Room Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your escape room business?

Business name generator, what are the costs involved in opening an escape room business.

Depending on the location, the cost of rent, and the complexity of the room design, opening an escape room business can cost anywhere between $7,000 and $30,000. A business license and insurance are among opening costs. Props and furnishings are another. Some escape game rooms provide elaborate costumes and set designs that include laser lights, while others keep their sets relatively simple.

What are the ongoing expenses for an escape room business?

The main costs are rent, utilities, and employee payroll. Other ongoing expenses include replacing equipment and props as needed, the cost of which is dependent upon the complexity of your escape room’s design. Website maintenance with educational information about escape room gaming and promotional advertising are also necessary expenses, especially since this type of business is so new and many people are still unaware of how escape room games work.

Who is the target market?

Preferred clients are individuals who prefer to purchase interactive experiences rather than consumer products. Business owners, managers, and coaches who want to provide their employees or players with positive team-building experiences also make great customers. Statistics show that corporate clients make up 20% of escape room game participants.

How does an escape room business make money?

An escape room business makes money by charging customers a participation fee to play an escape room game. Escape room games are live-action adventure experiences in which participants are locked in a room and try to escape within the allotted time by discovering clues and solving puzzles. Game rooms usually have a theme, whether historic, futuristic or completely original.

Most games cost $25 to $30 per person for a one-hour game, and even in larger venues typically allow no more than 12 players at a time. Smaller venues often limit games to no more than 6 players.

How much profit can an escape room business make?

The escape room business can be extremely lucrative. For example, 11th Hour Escape opened in Dallas in February, 2015 and is now earning approximately $70,000 per month. Similarly, the owner of Puzzle Break, another successful escape room business, started in 2013 with only $7000, and had a projected yearly income of approximately $600,000 less than two years later.

How can you make your business more profitable?

The best way to make your escape room business more profitable is to open more than one room with more than one game. Since escape room games are not yet copyrighted, it’s still possible to use, and improve upon, the ideas of others who have already achieved success with their escape room businesses. The more interactive your escape room is, the more enjoyable it will be for the participants, and the more likely they will be to recommend it to their friends. Ideally, the level of difficulty should be such that not every team who participates will succeed in escaping. Printing up some t-shirts with your business logo to serve as memorable prizes for successful escapees can be good form of inexpensive yet effective advertising.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your escape room business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

In most states, it is necessary to obtain an escape room business license. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Release of Liability

Liability waivers are essential since consumers will be in high stress environments. Though escape room waivers should be custom-made, sports center waivers can serve as helpful examples .

Recommended: Rocket Lawyer makes it easy to create a professional release of liability form  for your escape room business when you sign up for their premium membership. For $39.95 per month, members receive access to hundreds of legal agreements and on call attorneys to get complimentary legal advice.

Music Licensing

In order to play music in a business setting, permission must be acquired from the composer or license holder. Typically, it is possible to obtain a “blanket” license allowing a businesses to play music owned by a large catalog of artists and recording studios. Such licenses can be obtained from Performance Rights Organizations, such as ASCAP or BMI.

• Learn more about music licensing requirements

Certificate of Occupancy

Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a location:
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to an escape room business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
• If you plan to purchase or build a location:
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for you business’ location to ensure your escape room business will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Escape Room Business needs and how much it will cost you by reading our guide Business Insurance for Escape Room Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market an escape room business

Social media is a great way to advertise an escape room business. There is also an international website directory designed specifically for owners to list their businesses by country and city to make it easier for game enthusiasts to locate an escape room near them.

How to keep customers coming back

Unlike other types of competitive businesses, partnering with other escape room business owners to provide mutual referrals is beneficial for everyone involved, including customers seeking new gaming experiences. Providing your customers with post-game surveys is a good way to get valuable feedback about their experiences and how your game can be improved for future players. Each escape game is played only once by each player since the majority of clues are discovered during the game. To succeed in getting repeat business, it is necessary to create and present new games .

Recommended:  Learn how to build a strong brand for your business and retain more customers by reading our article,  Branding Your Escape Room Business in 8 Simple Steps , by contributing author Chris Hanson.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

Those who enjoy playing escape games themselves are prime candidates for starting this type of business. It’s also a good business for creative people with a flair for the dramatic who enjoy designing their own games and providing others with enjoyable gaming experiences.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at an escape room business?

• Maintaining the cleanliness and physical safety of game rooms
• Placing props and clues for guests to find
• Designing games
• Website maintenance
• Training staff
• Advertising and creating promotional events

What are some skills and experiences that will help you build a successful escape room business?

Attention to detail is one of the most important skills to have in this business. Success depends on providing enough relevant clues for teams to escape, but making them hard enough to find to provide an enjoyable challenge. Design skills are also helpful in setting up an escape room.

What is the growth potential for an escape room business?

The number of escape room businesses before 2010 was zero. Since then, that number is over 2,800. Most are registered with escape room directories to make it easier for gaming enthusiasts and new potential customers to locate them.

Recommended:  To get a deeper insight into your escape room's growth potential, read our article The State of the Escape Room Industry , by contributing author Charles Bechtel.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

How and when to build a team

It’s advisable to build a good team during the initial planning stages of starting your business. While some people have the skills and experience to design, create, build, and outfit their own escape rooms as well as maintain a website to help advertise it, most people outsource one or more of those tasks to other professionals. Once the room is operational, at least one additional staff member will be necessary to assist other customers while games are in progress.

Read our escape room business hiring guide to learn about the different roles an escape room business typically fills, how much to budget for employee salaries, and how to build your team exactly how you want it.

Useful Links

Truic resources.

• TRUiC's Escape Room Business Hiring Guide

Industry Opportunities

• Escape Hunt
• Escape Room Franchise
• Learn about more Family Fun Business Ideas!

Real World Examples

• The Unbelievably Lucrative Business of Escape Rooms
• How To Start An Escape Room Business in a Competitive Market
• No Escaping Success in this ‘escape’ Business
• Escape Room Chain

Further Reading

• Escape Room Tips and Resources from EscapeFront.com
• How to Open Your Own Escape Room
• Getting into the Exit Games Business
• Discover more Unique Business Ideas
• Tips on Designing Room Escape Games

Have a Question? Leave a Comment!

How to Start a Profitable Escape Room Business [11 Steps]

By Nick Cotter Updated Feb 02, 2024

Business Steps:

1. perform market analysis., 2. draft a escape room business plan., 3. develop a escape room brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for escape room., 6. open a business bank account and secure funding as needed., 7. set pricing for escape room services., 8. acquire escape room equipment and supplies., 9. obtain business insurance for escape room, if required., 10. begin marketing your escape room services., 11. expand your escape room business..

When launching an escape room business, a thorough market analysis is crucial to understand the competitive landscape and identify your target audience. This analysis will provide insights into industry trends, customer preferences, and key factors that can influence the success of your venture. Here are some steps to guide you through performing a market analysis:

• Research your competitors by visiting their escape rooms, analyzing their offerings, themes, pricing strategies, and customer reviews to identify gaps and opportunities in the market.
• Identify your target demographic by considering factors such as age, income level, and interests. Understand what motivates them to visit escape rooms and tailor your marketing accordingly.
• Examine industry trends by attending trade shows, reading industry reports, and staying updated with technological advancements to ensure your escape room remains competitive and innovative.
• Analyze the economic factors in your region, such as disposable income levels and entertainment spending habits, which can affect the demand for leisure activities like escape rooms.
• Gather data on the local market size by estimating the number of potential customers within your area and evaluating the population growth to forecast future demand.

Are escape room businesses profitable?

Yes, escape room businesses can be profitable. The key is to establish a steady stream of customers through word-of-mouth recommendations and effective marketing. Additionally, maintaining a high level of quality and customer service is important to ensure repeat business.

Creating a comprehensive business plan is a crucial step in starting an escape room business. It will serve as a roadmap for your venture, outlining your business strategy, financial projections, and operational guidelines. Here are the key points you should consider when drafting your escape room business plan:

• Executive Summary : Summarize your business concept, including the unique aspects of your escape room experiences and your vision for the company.
• Market Analysis : Research the local market, identify your target audience, and analyze your competitors to understand the demand and positioning of your business.
• Marketing and Sales Strategy : Outline how you'll attract and retain customers, including advertising channels, pricing strategies, and sales tactics.
• Operational Plan : Detail the day-to-day operations, including location, facility requirements, equipment, technology, and staffing needs.
• Financial Projections : Include detailed financial statements, such as income statements, balance sheets, and cash flow projections, to estimate profitability and break-even analysis.
• Risk Assessment : Identify potential risks and challenges your business may face and provide strategies for mitigation.

How does a escape room business make money?

Escape room businesses bring in money by charging customers admission fees to participate in the puzzle-solving activities. Room designs, props, and puzzles are potentially reusable, greatly reducing operational costs while maximizing profits. An example of a target audience for a successful escape room business could be young adults aged 18–25 who are looking to challenge themselves with unique and exciting experiences. To further target this demographic, offering discounted rates or student nights can help attract more customers to the business.

Creating a distinctive brand for your escape room is vital in setting it apart from the competition. It's the identity that your customers will come to recognize and trust. Consider the following steps to develop a memorable and engaging brand for your escape room business:

• Define Your Unique Value Proposition (UVP): Clearly articulate what makes your escape room unique. Is it the storylines, the puzzles' complexity, the thematic elements, or state-of-the-art technology?
• Choose a Brand Name: Select a name that is catchy, easy to remember, and reflects the experience you're offering. Ensure it's not already in use and trademark it if possible.
• Design a Logo and Visuals: Develop a logo and visual theme that represents your brand's essence. These visuals will be used on your website, marketing materials, and physical location.
• Develop a Brand Voice: Decide on the tone and style of your communication. Whether it's mysterious, adventurous, humorous, or professional, ensure it resonates with your target audience and remains consistent across all channels.
• Build an Online Presence: Create a professional website and social media profiles that align with your brand identity. These platforms should accurately convey the experience and entice potential customers.
• Engage with Your Community: Participate in local events and online forums to build relationships and increase brand awareness. Word of mouth is powerful in the escape room industry.

How to come up with a name for your escape room business?

The name you choose for your escape room business is an important way to draw in customers and establish your business. It should be something that accurately reflects the concepts and atmosphere of your escape room. To come up with a descriptive yet catchy name, first identify key elements of your escape room theme, such as the story line or time period. Once you have identified these key elements, think of words that remind you of these features and combine them to form a unique word or phrase that sums up the concept. You could also look for inspiration from phrases taken from books, movies, or famous quotes related to your escape room's theme. Finally, view the name from a customer's perspective—the name should be easy to remember and help customers understand what to expect when they enter your escape room.

Formalizing your business registration is a crucial step in establishing your escape room business as a legal entity. This process will vary depending on your location, but generally involves registering with state and local agencies. Here's what you typically need to do:

• Choose a Business Structure: Decide whether your escape room will operate as a sole proprietorship, partnership, LLC, or corporation. Each has different implications for liability and taxes.
• Register Your Business Name: If your business name is different from your own name, you'll need to file a 'Doing Business As' (DBA) name.
• Obtain an Employer Identification Number (EIN): This is required for tax purposes and is obtained from the IRS. It's necessary if you plan to hire employees.
• Register for State and Local Taxes: Depending on your location, you may need to register for state taxes, including sales tax and unemployment insurance tax.
• Acquire Permits and Licenses: Check with your city or county government to find out what specific permits and licenses are needed to operate an escape room in your area.
• Understand Zoning Laws: Make sure your chosen location is zoned for an escape room business to avoid legal issues with local authorities.

Resources to help get you started:

Access indispensable resources curated for escape room entrepreneurs featuring market analyses, operational strategies, and growth tactics:

• Room Escape Artist : This blog and resource hub offers reviews, design insights, and industry trends crucial for understanding the escape room market. - https://roomescapeartist.com/
• Escape Front : Dedicated to escape room owners, this site provides in-depth guides on business operations, marketing strategies, and industry reports. - https://www.escapefront.com/
• RECON (Reality Escape Convention) : An annual convention bringing together escape room industry professionals for networking, workshops, and talks on the latest trends and best practices. - https://www.realityescapecon.com/
• Escape Room Master : This platform offers software solutions for booking and game management but also provides valuable resources and community engagement for business owners. - https://escaperoommaster.com/
• The Escape Room Guys : A blog that reviews escape rooms globally and offers a behind-the-scenes look at successful escape room operations and design ideas. - https://theescaperoomguys.com/
• NowEscape : Offers articles and guides focusing on the operational, marketing, and technological aspects of running an escape room business. - https://nowescape.com/blog/

Starting an escape room business requires compliance with various regulations to ensure safety and legality. It's essential to acquire the right licenses and permits before opening your doors to the public. Below are key steps to guide you through this critical process:

• Research local regulations: Check with your city or county government to understand the specific licensing requirements for an escape room business in your area.
• Business license: Apply for a general business license, which is the basic permit needed to operate a business in your municipality.
• Fire safety permit: Since escape rooms often involve locked spaces, obtaining a fire safety permit is crucial to ensure all safety measures are in place and regulations are met.
• Building permit: If you plan to modify your space with construction, you'll need a building permit. This ensures that all changes comply with local building codes.
• Special amusement permit: Some jurisdictions may require a special amusement permit for escape room businesses due to their interactive and entertainment nature.
• Insurance: While not a permit, obtaining liability insurance is vital to protect your business from potential claims and incidents.

What licenses and permits are needed to run a escape room business?

It depends on the state and city in which you will be located. Generally, you need a business license, an occupancy permit, and specific safety permits to operate an escape room. You may also need to obtain special permits or licenses if you plan on serving food or alcohol at your facility.

Starting an escape room business requires careful financial management from the outset. Opening a business bank account is essential to keep personal and business finances separate, while securing funding is critical for covering the initial costs of setting up your escape room. Here's how to move forward with these vital steps:

• Research banks and credit unions to find one that offers favorable terms for small businesses, including low fees and good customer service.
• Prepare the necessary documents to open a business bank account, such as your business license, EIN, and incorporation papers.
• Consider the type of account that best suits your business needs, whether it's a checking account, savings account, or both.
• Explore various funding options if you need additional capital, such as small business loans, investors, crowdfunding, or personal savings.
• Develop a solid business plan to present to potential lenders or investors, showcasing the viability and profitability of your escape room concept.
• Investigate any grants or local small business programs that may offer financial assistance or resources for new entrepreneurs.

Setting the right price for your escape room services is crucial for attracting customers while ensuring profitability. It's important to consider factors such as your costs, target audience, competition, and perceived value. Here are some key points to guide you in setting your pricing:

• Analyze Costs: Calculate your operating costs, including rent, utilities, staff wages, and marketing, to determine the minimum price you need to set to break even.
• Research Competition: Look at the pricing of other escape rooms in your area to ensure your prices are competitive. Adjust for any differences in the experience or quality you offer.
• Value Perception: Price your services based on the value customers perceive. Unique themes or high-tech puzzles may allow for higher pricing.
• Dynamic Pricing: Consider implementing dynamic pricing strategies, such as offering discounts during off-peak hours or increased rates during peak times.
• Package Deals: Create package deals for larger groups or corporate events to encourage bulk bookings.
• Test and Adjust: Start with an introductory price, gather customer feedback, and adjust your pricing as needed based on demand and customer satisfaction.

What does it cost to start a escape room business?

Initiating a escape room business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $$24,000 (startup costs) for launching such an business. Please note, not all of these costs may be necessary to start up your escape room business.

Starting an escape room business requires careful selection of equipment and supplies to create an immersive and challenging experience for your customers. To ensure your escape room is engaging and operates smoothly, you'll need to acquire a variety of items, from puzzles and props to technical equipment. Here are some key components to consider:

• Puzzles and Props: Stock up on locks (combination, key, directional), hidden compartments, and thematic decorations that align with your room's storyline.
• Technology: Invest in electronic gadgets like tablets, computers, or specialized software for digital puzzles and room automation.
• Surveillance Equipment: Set up cameras and microphones to monitor players and offer hints, ensuring a safe and controlled environment.
• Lighting and Sound Equipment: Create atmosphere with adjustable lighting systems, sound effects, and background music for an immersive experience.
• Furniture and Set Pieces: Find durable furniture that fits your theme and can withstand frequent use, as well as larger set pieces for key focal points in the room.
• Safety Equipment: Include emergency exit signs, first aid kits, and fire extinguishers to comply with safety regulations.
• Operational Supplies: Stock up on office supplies, walkie-talkies for staff communication, and maintenance tools for daily operations and repairs.

List of software, tools and supplies needed to start a escape room business:

• Escape room software - Est. $200-1,000
• Locks and keys for escape room - Est. $150-600+
• Puzzles and props for escape room - Est. $100-500+
• Security camera system - Est. $500-2,000+
• Set up for physical puzzle components - Est. $50-300+
• Electronic components (sensors, buzzers, etc.) - Est. $50-500+
• Decorations (lighting, furniture, etc.) - Est. $200-2,000+
• Construction materials (drywall, framing materials) - Est. $50-400+
• Computer and network hardware (router, switches, etc.) - Est. $200-1,000+
• Lighting fixtures and wiring supplies - Est. $100-1,000+

As you embark on the exciting journey of starting an escape room business, it's crucial to consider the protection that business insurance can provide. Ensuring that you have the right coverage can safeguard your investment from unforeseen events and liabilities. Here are some guidance points to help you obtain business insurance:

• Research different types of business insurance policies such as general liability insurance, property insurance, and professional liability insurance to understand which coverages best fit the needs of your escape room business.
• Consult with insurance providers or brokers who specialize in entertainment or small business insurance to get tailored advice and competitive quotes.
• Consider additional policies such as business interruption insurance, which can cover lost income in case your escape room must close temporarily due to a covered event.
• Ensure that your policy limits are sufficient to cover potential claims and that you understand any exclusions or conditions of the insurance policy.
• Regularly review and update your insurance coverage to reflect any changes in your business, such as expansion or the addition of new rooms or themes.

Once you have your escape room set up and ready for adventurers, it's time to spread the word and attract customers. A strategic marketing plan can make all the difference in a competitive landscape. Here are some effective strategies to market your escape room services:

• Utilize social media platforms to create buzz by sharing intriguing puzzles and behind-the-scenes content.
• Offer opening discounts or bundle deals to encourage initial visits and word-of-mouth referrals.
• Partner with local businesses and organizations for cross-promotion opportunities.
• Invest in search engine optimization (SEO) to increase your visibility online when potential customers search for entertainment options in your area.
• Encourage reviews and feedback from players and use their testimonials in your marketing materials.
• Host special events, such as themed nights or challenges, to attract different customer groups.
• Implement a loyalty program to reward repeat customers and encourage recurring business.
• Engage with influencers or bloggers in your community to reach a wider audience through their networks.
• Use targeted online advertising, such as Google Ads or Facebook ads, to reach potential customers based on their interests and location.

After establishing a solid foundation and achieving success with your initial escape room venture, the time comes to consider expansion. Growth can take many forms, from increasing the number of rooms and themes to scaling the business model to new locations. Here are some strategies to guide you through the process of expanding your escape room business:

• Analyze your success: Before expanding, assess what aspects of your business are working well. Use customer feedback and financial data to inform your growth strategy.
• Introduce new themes and technologies: Keep your current customers engaged and attract new ones by regularly updating your rooms with fresh themes and incorporating the latest technology.
• Franchising opportunities: Consider offering franchising options to entrepreneurs who want to open their own escape rooms under your established brand.
• Explore partnerships: Collaborate with local businesses or entertainment venues to create pop-up escape rooms or themed experiences that can broaden your market reach.
• Invest in marketing: A strong marketing campaign can help you reach new customers and markets, essential for successful expansion.
• Scale operations: As you grow, streamline operations with standardized procedures and training programs to maintain quality across multiple locations.
• Diversify revenue streams: Think beyond the room - merchandise, mobile escape games, and online puzzles can provide additional income sources.

How To Create an Escape Room Business Plan: Essential Checklist

By alex ryzhkov, resources on escape room facility development.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis

Welcome to our blog post on how to write a business plan for escape room facility development! As the escape room industry continues to flourish, it's crucial for aspiring entrepreneurs to navigate the process of starting their own facility with precision and foresight. According to MarketWatch, the global escape room market is estimated to reach $3.42 billion by 2025, growing at a CAGR of 24.3% from 2019 to 2025. To help you achieve success in this thrilling and lucrative business venture, we've compiled a comprehensive checklist of nine essential steps. Let's dive in!

Conducting market research is the first crucial step in your escape room business development journey. Understanding the demand, preferences, and trends in the market will enable you to tailor your offerings to your target audience's expectations. This will also help you identify any gaps or opportunities for innovation to make your escape room facility stand out from the competition.

Once you have a clear idea of your target audience, it's essential to analyze the competition in your chosen location. Study other escape room facilities nearby, identify their strengths and weaknesses, and find ways to differentiate your establishment. This knowledge will not only inform your business concept and theme but also guide your marketing and advertising strategies.

The location and space requirements of your escape room facility play a vital role in its success. Consider factors such as accessibility, foot traffic, parking availability, and square footage to ensure that your chosen location can accommodate your planned rooms and provide a comfortable and enjoyable experience for your customers.

Creating a detailed business plan includes establishing a budget and financial projections. Determine your initial investment costs, overhead expenses, and revenue projections to evaluate the financial viability of your escape room facility. This will help you secure funding and set realistic targets for your business's future growth and profitability.

A strong business concept and theme will set the foundation for your escape room facility's unique identity and appeal. Choose themes that resonate with your target audience, intertwine engaging storylines, and incorporate challenging puzzles and riddles that will captivate and entertain your customers.

A robust marketing and advertising strategy is essential for attracting customers to your escape room facility. Consider online and offline channels such as social media, website optimization, partnerships with local businesses, and targeted advertising campaigns to create buzz, generate bookings, and build a loyal customer base.

Developing an operational framework and identifying staffing needs are crucial for ensuring smooth and seamless operations of your escape room facility. Outline the responsibilities of each team member, create employee training programs, and establish protocols for customer safety, room maintenance, and efficient customer service.

Finally, securing the necessary permits and licenses is essential for complying with local regulations and building trust with your customers. Research the specific requirements for escape room facilities in your area, obtain the necessary approvals, and ensure that your facility meets all safety and zoning regulations.

By following this comprehensive checklist, you'll be well-prepared to write a business plan that sets the stage for the successful development and operation of your very own escape room facility. Stay tuned for more valuable insights and tips to help you thrive in this booming industry!

Conduct Market Research

Conducting thorough market research is a crucial first step in developing a business plan for an escape room facility. This process involves gathering and analyzing relevant data to gain insights into the target market, customer preferences, industry trends, and potential demand for the proposed venture.

Market Size and Growth: Begin by assessing the size and growth potential of the escape room industry in your desired location. Look for market reports, industry publications, and statistics to understand the overall industry landscape and identify any emerging trends.

Target Market: Define your target market by considering factors such as age groups, interests, demographics, and psychographics. Determine who your ideal customers would be and how to effectively reach and engage them.

Competitive Analysis: Analyze the existing competition in the area to identify their strengths, weaknesses, and unique selling points. This analysis will help you differentiate your escape room facility and develop strategies to attract customers.

• Visit nearby escape room facilities to experience their offerings firsthand and observe customer behavior.
• Utilize online surveys, social media polls, and focus groups to gather feedback directly from potential customers.
• Engage with industry experts or consultants to gain insights and advice on market trends and customer preferences.

By conducting comprehensive market research, you will have a solid foundation to build your business plan upon. The gathered data and insights will inform your decisions regarding various aspects of the escape room facility, including location, pricing, marketing strategies, and room themes.

Identify Target Audience

Identifying the target audience is a crucial step in developing a successful business plan for an escape room facility. Understanding who your potential customers are and what they are looking for in an entertainment experience will help shape your facility's offerings and marketing efforts.

When identifying your target audience, consider factors such as age, interests, demographics, and psychographics. Determine whether your escape room facility will cater to individuals, families, or groups, and whether the focus will be on casual entertainment or team-building events. Conducting market research and surveys can provide valuable insights into the preferences and expectations of your target audience.

Research your local market:

Consider different age groups:, identify niche markets:, stay updated with industry trends:, analyze competition.

When starting a business, it is crucial to analyze the competition in your industry, and the escape room industry is no exception. By understanding the strengths, weaknesses, and strategies of your competitors, you can position your escape room facility to stand out and offer a unique experience to customers.

Begin by researching other escape room facilities in your targeted market. Look at their website, social media presence, and customer reviews to gain insights into their offerings, themes, and customer satisfaction. Take note of what they do well and areas where they may have room for improvement.

Tips for analyzing competition:

• Visit their facilities as a customer to experience their rooms firsthand.
• Identify their target audience and understand how they attract and retain customers.
• Assess their pricing structure and determine if there is room for differentiation.
• Look for opportunities to differentiate your escape room facility by offering unique themes or experiences.
• Consider collaborating or partnering with other local businesses to enhance your offerings and reach new audiences.

By thoroughly analyzing your competition, you can gain valuable insights into the market and make informed decisions when developing your business plan. This step will help you identify opportunities for innovation and ensure your escape room facility stands out in the crowded market.

Determine Location And Space Requirements

Choosing the right location for your escape room facility is crucial for its success. You want to find a space that is easily accessible, visible, and has enough room to accommodate your themed rooms and waiting area. Here are some important factors to consider:

• Accessibility: Look for a location that is easily accessible by both car and public transportation. This will ensure that your facility is convenient for customers to visit.
• Visibility: Choose a space that has good visibility from the street or main entrance. This will attract more potential customers and increase foot traffic to your facility.
• Size: Determine how many escape rooms you plan to have and calculate the amount of space needed for each room. Take into account the size of the puzzles, props, and furniture that will be included in each room.
• Layout: Consider the layout of the space and how it can be optimized for the flow of customers. Designate areas for the waiting room, reception desk, and any additional amenities or facilities you plan to offer.
• Infrastructure: Assess the infrastructure of the location, including electrical, plumbing, and HVAC systems. Ensure that they can support the specific requirements of an escape room facility.
• Research the demographics and foot traffic in the surrounding area to ensure there is sufficient demand for an escape room facility.
• Consider partnering with other businesses, such as restaurants or entertainment venues, to create a destination experience for customers.
• Visit potential locations at different times of the day to assess noise levels and the overall atmosphere of the area.

Establish A Budget And Financial Projections

Establishing a budget and creating accurate financial projections are crucial steps in the development of an escape room facility. By carefully analyzing the costs and projecting the revenue potential, you can ensure that your business is financially viable and sustainable in the long run.

The first step in this process is to determine the initial investment required to set up the escape room facility. This includes costs such as lease or purchase of the property, renovation and decor expenses, purchasing puzzles and props, and equipment like audiovisual systems and surveillance cameras. Be thorough in your research and create a comprehensive list of all the expenses to get a clear understanding of the capital required.

Once you have established the initial investment, it is important to create financial projections to estimate the revenue potential of your escape room facility. This involves forecasting the number of visitors per day or month, the average ticket price, and any additional revenue streams such as merchandise sales or corporate events. Consider factors like local competition, location, and seasonal fluctuations to make realistic revenue projections.

Tips for Establishing a Budget and Financial Projections:

• Consult with industry experts or existing escape room operators to gain insights into the typical costs associated with setting up and running an escape room facility.
• Research local market trends and consumer preferences to ensure your financial projections are based on accurate data.
• Consider incorporating conservative estimates and contingency plans to account for any unforeseen expenses or challenges.
• Regularly review and update your financial projections as your business grows and adapts to changes in the market.

Establishing a budget and creating financial projections can provide valuable insights into the feasibility of your escape room facility and guide your decision-making processes. It is crucial to consider all the financial aspects and closely monitor your expenses and revenue to ensure the long-term success of your business.

Create a Business Concept and Theme

When creating a business concept and theme for your escape room facility, it's important to focus on what sets you apart from your competition and how you can create a unique and memorable experience for your customers. Start by brainstorming different themes that align with your target audience's interests and preferences.

• Consider offering a variety of themes that cater to different demographics and preferences. This can attract a wider range of customers and increase repeat visits.
• Research popular trends and themes in the escape room industry to ensure your concept is current and relevant.
• Think about incorporating immersive storytelling into your escape rooms to provide a deeper and more engaging experience for your customers.

Once you have a list of potential themes, narrow it down to the most compelling and suitable options. Consider the feasibility of each theme in terms of room design, puzzles, and props needed. It's important to strike a balance between creativity and practicality.

Once you've chosen a theme, develop a cohesive and captivating storyline that ties all elements of your escape rooms together. This storyline will serve as the guiding narrative for your customers' experience, helping to immerse them in the theme and create a sense of adventure.

Design your puzzles and challenges to align with the theme, incorporating elements that enhance the storyline and engage participants in solving the mystery or completing the mission. Attention to detail in both the room design and the overall customer experience will help differentiate your facility from others in the market.

• Consider incorporating technology into your escape rooms, such as interactive props, audiovisual effects, or digital puzzles. This can elevate the experience and create a more immersive environment.
• Regularly update and refresh your rooms with new challenges and puzzles to keep customers coming back for more.

Remember to test your escape rooms thoroughly before opening to ensure they provide the desired level of challenge and intrigue. Solicit feedback from friends, family, or beta testers to identify any areas for improvement.

By creating a well-defined business concept and theme, you'll be able to attract and retain customers by offering an escape room experience that stands out from the competition.

Develop A Detailed Marketing And Advertising Strategy

A successful escape room facility relies on an effective marketing and advertising strategy to attract and retain customers. By developing a detailed plan, you can effectively promote your business and ensure a steady stream of bookings. Here are some key steps to consider:

• Identify your target audience: Understand who your ideal customers are and what they value in an escape room experience. This will help you tailor your marketing efforts and messaging to resonate with them.
• Create a strong online presence: In today's digital age, having a strong online presence is crucial for any business. Build a user-friendly website that showcases your escape rooms, highlights your unique selling points, and enables customers to make bookings easily.
• Utilize social media: Leverage social media platforms such as Facebook, Instagram, and Twitter to engage with your target audience, share exciting updates, and run promotions or giveaways. Consider partnering with influencers or local businesses to expand your reach.
• Invest in search engine optimization (SEO): Implement SEO strategies to improve your website's visibility on search engines. Optimize your website content, use relevant keywords, and consider running paid search ads to increase your online visibility.
• Run targeted online advertising campaigns: Utilize platforms like Google Ads and Facebook Ads to run targeted advertising campaigns. Segment your audience based on demographics, interests, and behaviors, and create compelling ads that drive users to book with your facility.
• Build partnerships and collaborations: Forge partnerships with local businesses and organizations that cater to your target audience. Offer special promotions or discounts for their customers, and explore opportunities for cross-promotion.
• Implement referral and loyalty programs: Encourage happy customers to refer their friends and family to your facility by offering incentives such as discounts or freebies. Additionally, develop a loyalty program that rewards repeat visitors, fostering loyalty and creating a sense of exclusivity.

Tips for Developing an Effective Marketing and Advertising Strategy:

• Regularly monitor and analyze your marketing efforts to assess their effectiveness and make necessary adjustments.
• Consider hosting promotional events or partnering with local media outlets for coverage to generate buzz around your escape room facility.
• Utilize email marketing campaigns and newsletters to keep customers informed about new room launches, special offers, and upcoming events.
• Create visually appealing and shareable content, such as teaser videos or behind-the-scenes glimpses, to generate excitement and curiosity.
• Offer seasonal promotions or holiday-themed rooms to capitalize on peak periods and attract new customers.
• Engage with customers through online reviews and testimonials, and respond promptly to feedback to build a positive reputation.

By following these steps and refining your marketing and advertising strategy as necessary, you can position your escape room facility as a top choice for customers seeking thrilling and immersive experiences. Remember, effective promotion and engaging marketing campaigns are essential for driving bookings and ensuring the success of your business.

Outline the Operational Framework and Staffing Needs

Once you have established your business concept and determined the location for your escape room facility, it is crucial to outline the operational framework and identify the staffing needs to ensure smooth and efficient operations. Consider the following key factors:

1. Room Operations: Determine the number of rooms you will have and the maximum capacity for each room. Define the time slots for bookings and create a schedule that ensures a seamless flow of customers throughout the day. Consider factors such as room preparation time, resetting time between groups, and the need for comprehensive safety checks.

2. Staff Roles: Identify the various roles that will be required to run your escape room facility effectively. These roles may include room operators, game masters, receptionists, and maintenance staff. Clearly define the responsibilities, qualifications, and required training for each role to ensure a high level of professionalism and customer satisfaction.

3. Staffing Levels: Determine the appropriate number of staff members needed to handle the expected number of customers during peak and off-peak hours. Assess the workload and ensure that you have enough staff members to deliver exceptional customer service, manage bookings and inquiries, monitor each room's progress, and handle any emergencies or unexpected situations that may arise.

4. Training and Development: Create a comprehensive training program to equip your staff with the necessary skills and knowledge required to excel in their roles. This can include training on customer service, room operations, problem-solving techniques, and emergency procedures. Regularly assess and update the training materials to ensure that your staff remains proficient and up-to-date.

5. Staff Scheduling: Implement a scheduling system that maximizes efficiency and ensures adequate staffing coverage for all operating hours. Consider using scheduling software or apps to streamline the process and enable easy adjustments based on customer demand and staff availability.

• Empower your staff by encouraging autonomy within their roles, allowing them to make decisions and handle customer inquiries or issues independently.
• Establish clear communication channels and protocols to facilitate smooth coordination among staff members during busy times.
• Regularly evaluate staff performance and seek feedback from customers to identify areas for improvement and ensure a consistently exceptional experience.

By outlining the operational framework and staffing needs, you lay the foundation for efficient and effective management of your escape room facility. This step is vital in ensuring that your customers have a seamless and enjoyable experience, while also setting your business up for long-term success in the competitive entertainment industry.

Secure Necessary Permits And Licenses

Securing necessary permits and licenses is a crucial step in developing and operating an escape room facility. Compliance with local regulations and obtaining the required permissions are essential for ensuring a smooth and legal operation. Here are some important considerations:

• Research local regulations: Begin by thoroughly researching the local regulations and requirements pertaining to escape rooms in your area. This may include building codes, fire safety regulations, zoning ordinances, and licensing guidelines.
• Contact local authorities: Reach out to the relevant local authorities, such as the city planning department and fire department, to understand the specific permits and licenses you will need to operate your escape room facility.
• Submit applications: Prepare and submit all the necessary applications and supporting documents to obtain the required permits and licenses. This may include submitting floor plans, safety protocols, and insurance certificates.
• Undergo inspections: Be prepared to undergo thorough inspections to ensure that your facility meets all the safety and regulatory requirements. This may include inspections of the premises, electrical systems, fire safety equipment, and emergency exits.
• Obtain liability insurance: It is highly recommended to obtain liability insurance to protect your business from unforeseen circumstances and potential lawsuits. Consult with an insurance professional to determine the appropriate coverage for your escape room facility.
• Start the permit and license application process well in advance to allow for any potential delays or additional requirements.
• Thoroughly review and understand all the regulations and guidelines to ensure full compliance and avoid any legal issues.
• Stay in regular communication with local authorities throughout the process to address any questions or concerns promptly.
• Consider consulting with an attorney or a professional experienced in navigating the permit and licensing process to ensure thorough and timely completion of all requirements.

In conclusion, developing a business plan for an escape room facility involves conducting thorough market research, identifying the target audience, analyzing the competition, determining the location and space requirements, establishing a budget and financial projections, creating a unique business concept and theme, developing a detailed marketing and advertising strategy, outlining the operational framework and staffing needs, and securing necessary permits and licenses. By following this nine-step checklist, entrepreneurs can ensure they have a comprehensive plan in place to successfully launch and operate their escape room facility. With a focus on providing immersive and interactive experiences, delivering exceptional customer service, and constantly refreshing the rooms, businesses have the potential to become a sought-after destination in the entertainment and hospitality industry.

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Escape Room Business Plan

Free Business Plan Template

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How to Write an Escape Room Business Plan?

Writing an escape room 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 planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Introduce your business:

• This section may include the name of your escape room business, its location, when it was founded, the type of escape room business (E.g., physical escape room, mobile escape rooms.), etc.

Market opportunity:

Product and services:.

• For instance, you may include escape room experiences, custom-designed rooms, and virtual escape rooms as services and mention immersive experiences and a variety of themes as some of your USPs.

Marketing & sales strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business description:

• Physical escape rooms
• Virtual escape rooms
• Mobile escape rooms
• Outdoor escape rooms
• Educational escape rooms
• Scavenger hunt escape rooms
• Describe the legal structure of your escape room business, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission statement:

Business history:.

• Additionally, If you have received any awards or recognition for excellent work, describe them.

Future goals:

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

• For instance, millennials, Gen-Z, and families with children looking for fun and challenging activities can be an ideal target market for an escape room business.

Market size and growth potential:

Competitive analysis:, market trends:.

• For instance, the COVID-19 pandemic has increased the demand for virtual and remote escape rooms, so you might mention if you plan to add virtual escape rooms to your services.

Regulatory environment:

Here are a few tips for writing the market analysis section of your escape room business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Escape room services:

• For instance, you can find escape rooms themed around historical events, sci-fi, and horror.

Special features:

Safety and security:.

• This may include fire safety, an emergency exists, ventilation, employee training, maintenance, customer supervision, and other security measures.

Additional services:

In short, this section of your escape room plan must be informative, precise, and client-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:

Unique selling proposition (USP):

• For example, immersive experiences, team-building activities, challenging puzzles, a variety of themes, and flexible booking options could be some of the great USPs for a professional escape room business.

Pricing strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your escape room business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your escape room business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & training:

Operational process:, equipment & machinery:.

• Explain how these equipment help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your escape room business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founder/CEO:

Key managers:.

• It should include key executives, senior management, and other department managers (e.g., Escape room manager, Operations manager.) involved in the escape room business operations, including their education, professional background, and any relevant experience in the industry.

Organizational structure:

Compensation plan:, advisors/consultants:.

• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your escape room services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

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

• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Financing needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the escape room industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your escape room business plan should only include relevant and important information supporting your plan’s main content.

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

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

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

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our escape room business plan pdf .

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Frequently asked questions, why do you need an escape room business plan.

A business plan is an essential tool for anyone looking to start or run a successful escape room 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 escape room business.

How to get funding for your escape room business?

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

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

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 escape room business?

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

What is the easiest way to write your escape room 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 escape room 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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Escape Room Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Entertainment Sector

Do you want to start an escape room and need to write a plan? If YES, here is a sample escape room business plan template & feasibility report.

If you are passionate about solving boredom among young adults and even older people, you should think towards starting your own escape room business. Your aim of starting this business should be geared towards taking the stress off people, getting them to socialize and make them happy.

Since the escape rooms, tons of unique and interesting games have been designed and more would still be designed. In case you don’t know, most escape rooms cum gaming centers start making profits within few months of establishment.

Opening an escape room is not an easy task, so you need to be creative if you intend to make money from the business. One of the ways you can make money from your escape room is to ensure that the location is a complete entertainment spot and a melting pot for people who want to meet new people and have fun. Here is a sample escape room business plan that can give you the needed guide to write yours.

A Sample Escape Room Business Plan Template

1. industry overview.

An Escape Room which can also be called an Exit Game, Escape Game or Room Escape Game is a game that involves engaging a team of player(s) inside a closed space or room which they have to resolve by finding clues, solving puzzles and taking part in some activities within a specific time, usually 60 minutes.

Notwithstanding the name, it is not cast in stone for the theme to be escape-based. Participants may be called upon to solve a crime/murder or save a fictional character or find something.

An escape room is a mental and physical adventure – based game and a good number of Escape Rooms do not actually ‘lock’ the participants inside a space as participants are free to leave the game, any time they want.

Escape rooms fall under the Social Network Game Development industry in the united states and this industry is made up of businesses that carry out puzzle games, role-playing games, gambling games and other related activities for adults.

According to a report published by IBISWorld, since its inception, the Social Network Game Development industry has grown rapidly. Revenue is anticipated to grow at an annualized rate of 16.7 percent to $3.9 billion over the five years to 2018.

The surging adoption of the internet and the popularity of social networks, including social networking websites and mobile apps , have driven revenue growth during the period. Industry revenue is anticipated to rise by 14.3 percent in 2018 alone.

The industry’s growth has been stimulated by the emergence of new markets that have embraced social gaming. Social networks and their accompanying technology have placed gaming within reach of the average computer or mobile phone user. As a result, consumers who have not previously played video games are beginning to participate.

The report further reveals that over the past five years, the Social Network Game Development industry has grown by 16.0 percent to reach revenue of $4 billion in 2019. In the same timeframe, the number of businesses has grown by 19.9 percent and the number of employees has grown by 16.2 percent.

The Social Network Game Development Industry is indeed a very large industry and pretty much thriving in some countries of the world especially in developed countries.

Statistics has it that in the United States of America alone, there are about 6,532 licensed and registered Social Network Game Development centers (Escape Rooms) responsible for employing about 14,498 employees and the industry rakes in a whooping sum of $4 billion annually with an annual growth rate projected at 16.0 percent between 2013 and 2019.

It is important to state that the companies holding the largest market share in the Social Network Game Development industry include Zynga Inc. and King Digital Entertainment PLC.

Escape room and other social networking game development centers have come to stay and it is indeed solving problems for people who have difficulties with socializing and working as a team.

2. Executive Summary

Quadratic® Escape Room, LLC is a licensed social networking game development center that will be located at 2122 W Adams street, Santa Ana, CA 93603 and that is one of the entertainment hubs of Santa Ana – California. We have been able to secure a standard facility in a central location in Santa Ana. We are well equipped to service the whole of the community as well as visitors and tourists.

Quadratic® Escape Room, LLC is going to become the number one destination for socialites, gamers and gamblers in the whole of Santa Ana – California.

We are positioned to operate a licensed escape room with a wide range of social networking games (mental and physical adventure – based game). Our escape room facility has enough parking space to accommodate the number of people we will accommodate per time.

We conducted a thorough market research and feasibility studies and we were able to come to the conclusion that Santa Ana – California is the right place to start our business. Our client’s best interest would always come first, and everything we do is guided by our values and professional ethics.

Quadratic® Escape Room, LLC will be open 24 hours in a day during weekends (Fridays to Sundays) and from 6:00 am to 12 midnight from Mondays to Thursdays in order for us to accommodate people with different time preferences.

This is why we have made provisions for effective floodlight system and also recruit enough staff and to run shift amongst our workforce.

Quadratic® Escape Room, LLC will at all times demonstrate her commitment to sustainability, both individually and as a business, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Quadratic® Escape Room, LLC is a family owned social networking game development center that is owned by Martins De Silva and his immediate family members. The business will be managed by Martins De Silva and his son Jerry Hamilton.

Martins De Silva has over 15 years’ experience in the social networking game development industry working for some of the leading escape room facilities in Santa Ana – California.

3. Our Products and Services

Quadratic® Escape Room, LLC is in the social networking game development centers industry to provide standard escape rooms for residents of Santa Ana – California which is why we have been able to put up a facility that can help us achieve the goal.

We are optimistic that everyone who makes use of our escape room will definitely derive huge value for their money. These are the type of games that will be made available to our clients;

• Puzzle games
• Role-playing games
• Gambling games
• Creating/finding something like a cure, a potion and so on.
• Conducting military operations, freeing a person or animal and abstract missions
• Other genres that fall within the Reality Gaming Industry, such as Questing, Scavenger Hunts, Treasure Hunts, Augmented Reality Gaming and Virtual Reality Gaming.
• Sale of food and beverages

4. Our Mission and Vision Statement

• Our Vision of starting Quadratic® Escape Room, LLC is to build a world – class escape room that can favorably compete with leading brands in the social networking game development industry.
• Our mission for establishing Quadratic® Escape Room, LLC is to contribute our quota in promoting social networking game activities in Santa Ana – California and also to make profits from the Industry; we want to become the leading escape room – brand in the whole of the United States of America.

Our Business Structure

Quadratic® Escape Room, LLC is poised to become the leading escape room in the whole of Santa Ana – California and we are fully aware that it will take the right facility, social networking game activities, management and organizational structure to achieve our goal.

We will ensure that we recruit only the best hands that can help us achieve all that we are set to achieve. The kind of the escape room business we intend building and the business goals we want to achieve is what informed the amount we are ready to pay for the best hands available in and around Santa Ana – California.

Our business will not be built only for the purpose of giving our customers value for their money, but also, we will ensure that we make our escape room cum work environment highly conducive for all our employees. We will provide them with facilities that will help them stay motivated and deliver on their various tasks and goals.

In view of that, we have made provisions for the following positions to be occupied by highly qualified and experienced staff;

• Chief Executive Office – CEO
• Accountant / Cashier
• Marketing and Sales Officer
• Social Networking Games Instructor / Assistant (5)
• Customer Care Executive / Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of games and other equipment by completing preventive maintenance requirements; calling for repairs.
• Defining job positions for recruitment and managing interviewing process
• Carrying out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily activities in the escape room.

Social Networking Game Instructors/Assistant (5)

• Responsible for operating licensed escape room
• Responsible for teaching newbies how to play various social networking games available in our escape room
• Responsible for selling food, alcoholic and nonalcoholic beverages
• Ensures that the game machines are well arranged for another playing session after every session
• Responsible for recommending the replacement of worn out or damaged game boards , pads, consoles and other video game accessories

Marketing and Sales Officer (2)

• Identifies, prioritizes, and reaches out to new clients, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts
• Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents Quadratic® Escape Room, LLC in strategic meetings
• Helps to increase sales and growth for Quadratic® Escape Room, LLC.

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for the organization
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for Quadratic® Escape Room, LLC
• Serves as internal auditor for Quadratic® Escape Room, LLC.

Client Service Executive

• Welcomes members and potential members/clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the organization’s products and services
• Manages administrative duties assigned by the management in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

Cleaners (3):

• Responsible for cleaning in and around the escape room
• Clears ashtrays as and when required.
• Washes glassware and utensils after each use.
• Maintains a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
• Ensures that toiletries and supplies don’t run out of stock
• Handles any other duty as assigned by the manager.

6. SWOT Analysis

Quadratic® Escape Room, LLC is in business to provide social networking game development facility for gamers in Santa Ana – California and at the same time to make profits. We are aware that there are competitions in the social networking game development industry which is why we took out time to conduct an effective SWOT Analysis before investing our hard – earned money into the business.

We know that if we get things right before starting our escape room, we will not have to struggle before attract loyal clients and building our customer base to a level where we can easily break-even in record time. We hired the services of a HR and Business consultant with bias in business structuring to help us conduct SWOT analysis for our organization and he did a pretty good job for us.

Here is a of the result we got from the SWOT analysis that was conducted on behalf of Quadratic® Escape Room, LLC;

One of the obvious strengths that will definitely stand as a plus for Quadratic® Escape Room, LLC is the fact that our facility is located in a densely populated residential area in Santa Ana – California; our location is in fact one of our major strengths couple with the support from stakeholders in the industry.

We equally have a team of professionals who will work with our clients, and lastly our wide range of social networking games are amongst the best that anybody living in Santa Ana – California can get; they are all mental and physical adventure – based games.

We looked into our Business model and we were able to identify two major weaknesses. One is the fact that we are a new business and the second is the fact that we may not have the financial resources required to match up with existing escape rooms, video games centers, casinos and gaming centers in California when it comes to employing experts in the industry and generating the needed hype that can drive traffic towards our business.

• Opportunities:

We are centrally located in one of the busiest and densely populated areas in Santa Ana – California and we are open to all the available opportunities the city has to offer. We will be open 24 hours in a day during weekends (Fridays to Sundays) and from 6:00 am to 12 midnight from Mondays to Thursdays giving us the advantage to leverage on any available opportunity.

Recent statistics shows that the number of mobile internet connections is expected to rise over 2019, but it is quickly approaching saturation, which indicates a potential threat to the strong revenue growth of our business. Lastly, the emergence of new competitors within the same location where our escape room is located will also pose a threat to us.

7. MARKET ANALYSIS

• Market Trends

If you are conversant with the social networking game development centers industry trends, you will realize that the increase in virtual purchases has propelled industry profit margins and that is a good outlook for the industry.

By tradition, individuals with abundant leisure time represent the primary demographic for escape rooms. However, as more individuals choose outdoor recreational activities and sports, they are less likely to spend time playing social networking games.

Another trend shows that users must have internet access to join social networks and play games. Increased broadband coverage translates to more potential industry customers and higher revenue. The number of broadband connections is also a good proxy for the number of households that join social networking websites.

A higher number of people connected to the internet drives increase in social network adoption. The number of broadband connections is expected to increase in 2018, representing a potential opportunity for the industry.

Lastly, it is a common trend that as escape rooms grow, it becomes necessary for them to develop new service offerings or install new facilities that will help them attract more people. Little wonder some escape rooms now have fresh juice and smoothie bar , retail food, alcoholic and non-alcoholic drinks et al within their facility to encourage people to relax and socialize. In order words, it is very important for escape rooms to continue to improvise if they want to grow their business .

8. Our Target Market

Women over the age of 45 represent the industry’s fastest-growing consumer segment. Aside from this demography of people, the target market for escape rooms cut across people of different walks of life especially adults that are single.

The fact that people visit escape rooms for various reasons makes marketing the business interesting. These are the category of people that we intend marketing our business to;

• Adults (Bachelors and Spinsters)
• High school students
• Applicants / School Leavers
• Sports Men and Women
• College Students

Our competitive advantage

The social networking game development centers industry is indeed a prolific and highly competitive industry. Clients will only patronize your escape room facility if they are comfortable with the games you have or if you can provide the enabling environment for them to socialize.

Quadratic® Escape Room, LLC is centrally located in a densely populated – residential area in Santa Ana – California; this is obviously going to give us an edge amongst our competitors. We equally have a team of highly qualified professionals who will work with all our clients and make it easier and comfortable when they patronize our escape room.

So also, our social networking games are amongst the best that anybody living in Santa Ana – California can get; they are all mental and physical adventure – based games. We will be open 24 hours in a day during weekends (Fridays to Sundays) and from 6:00 am to 12 midnight from Mondays to Thursdays in order for us to be able to accommodate people with different time preference.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Quadratic® Escape Room, LLC is established with the aim of maximizing profits in the social networking game development centers industry and we are going to ensure that we do all it takes to attract individuals, groups and corporate clients on a regular basis.

Quadratic® Escape Room, LLC will generate income by offering the following services;

• Conducting military operations, freeing a person or animal and abstract missions brought up the rear

10. Sales Forecast

We are quite aware that there are several business opportunities available for businesses like escape rooms; it is a line of business that attracts young and matured adults who love social networking games.

We are well positioned to take on the available market in Santa Ana – California and on our online platforms and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operation and grow the business and our clientele base.

We have been able to examine the social networking game development centers industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.

Below are the sales projection for Quadratic® Escape Room, LLC, it is based on the location of our escape room facility and the wide range of video games that we will be offering;

• First Fiscal Year:  $180,000
• Second Fiscal Year:  $350,000
• Third Fiscal Year:  $450,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. There won’t be any major competitor (escape room) offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Our marketing strategies will be directed towards achieving specific objectives that support the strategic goals of the organization. The truth is that all that we do will be geared towards creating new market channels, increasing sales and our market share. We will leverage on improving on our services to ensure that we win new clients and retain old clients as well.

As part of our sales and marketing strategies, we will pay attention to the promotion of our escape room so as to attract people to make use of our facility. Our unique selling proposition is that we are well positioned, people can easily access our facility, and our payment platforms are highly reliable.

Part of the marketing and sales strategies that we will adopt are;

• Open our escape room with a big party in other to attract residents who are our first target
• Advertise our escape room on national dailies, local TV and radio stations
• Promote our escape room online via our official website and all available social media platforms
• Introduce our escape room by sending introductory letters alongside our brochure to sports clubs, schools, households and key stake holders in Santa Ana – California
• Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
• Delivering consistent customer experiences to all our customers; making our first impression count positively to those making use of our escape room for the first time
• Make use of attractive hand bills to create awareness and also to give direction to our escape room
• Adopt direct mailing coupon marketing approach
• Position our signage/flexi banners at strategic places in and around Santa Ana – California
• Create a loyalty plan that will enable us reward our clients especially those that registered as a family or as a group
• Engage on roadshows within our neighborhood to create awareness for our escape room.

11. Publicity and Advertising Strategy

We have been able to work with our branding and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for people in the whole of Santa Ana – California which is why we have made provisions for effective publicity and advertisement.

Below are the platforms we intend to leverage on to promote and advertise Quadratic® Escape Room, LLC;

• Place adverts on both print (community – based newspapers and magazines) and electronic media platforms
• Sponsor relevant community – based gaming or reality show events and competitions
• Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
• Install our Billboards in strategic locations all around Santa Ana – California
• Engage in roadshows from time to time in targeted neighborhoods all around Santa Ana – California
• Distribute our fliers and handbills in target areas all around Santa Ana – California
• List Quadratic® Escape Room, LLC on local directories/yellow pages
• Advertise our escape rooms in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our corporate logo et al.

12. Our Pricing Strategy

For the average escape room in the United States, admission usually ranges from $20 to $45 per person in smaller cities but escape rooms in bigger cities usually charge more. Since the bulk of our customers comes from the middle class, it is advisable to set our prices on the moderate side. We will not allow the drive to recoup our money fast tempt us to set prices that can scare our customers off.

In view of that, our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than what our competitors are charging their clients in Santa Ana – California.

Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us or when they register as a family or a group.

• Payment Options

The payment policy adopted by Quadratic® Escape Room, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulations of the United States of America.

Here are the payment options that Quadratic® Escape Room, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via online bank transfer
• Payment via mobile money
• Payment via Point of Sales Machines (POS Machines)
• Payment via check

In view of the above, we have chosen banking platforms that will enable our clients make payment for playing our social networking games and purchase of food and beverages without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

Depending on the location, the cost of rent, and the complexity of the escape room design, opening an escape room business can cost between $7,000 and $30,000. A business license and insurance are among opening costs. Interior décor and furnishings are another.

From our market survey and feasibility studies, we have been able to come up with a detailed budget for establishing a standard escape room in Santa Ana – California and here are the key areas where we will spend our startup capital;

• The Total Fee for Registering the Business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits – $1,500.
• Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of – $1,000.
• The total cost for hiring Business Consultant – $2,000.
• The amount needed for the purchase of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $3,800.
• The total cost for the purchase of accounting software, CRM software and Payroll Software – $850
• The total cost for leasing facility for the escape room – $20,000.
• The total cost for facility remodeling – $5,000.
• Other start-up expenses including stationery – $1000
• Phone and utility deposits – $3,500
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $10,000
• The cost for start-up inventory including stationery and accessories – $1000
• The cost for acquiring LED TVs, computers, comfortable chairs, tables, Air conditions, Shelve for stocking board games, video games and video games accessories amongst others. – $5,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, snooker board, tables and chairs et al) – $4,000.
• The cost of Launching a Website – $600
• The cost for our grand opening party – $3,000
• Miscellaneous – $1,000

We would need an estimate of $70,000 to successfully launch a medium but standard escape room in the United States of America.

Generating Funds/Startup Capital for Quadratic® Escape Room, LLC

Quadratic® Escape Room, LLC is a family business that will be owned and managed by Mr. Martins De Silva and his immediate family members. They decided to restrict the sourcing of the startup capital for the business to just three major sources.

• Generate part of the startup capital from personal savings and sale of his stocks
• Generate part of the start-up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $20,000 ( Personal savings $15,000 and soft loan from family members $5,000) and we are at the final stages of obtaining a loan facility of $50,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Quadratic® Escape Room, LLC is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over in our escape room is to equip our facility with state of the art social networking games and to make our facility highly secured.

Quadratic® Escape Room, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of ten years or more. We know that if that is put in place, we will be able to retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check:>Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Acquiring facility and remodeling the facility to fit into a standard escape room: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• writing of business plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of games and accessories, electronic appliances, office appliances and suppliers: In progress
• Creating Official Website for the Company: Completed
• Creating Awareness for the business both online and in the neighborhood: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party planning: In Progress

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Sample Escape Room Business Plan

Here, we’ve provided you with an escape room Business Plan to work with.

If you’re fascinated with puzzle-oriented businesses, you might find opening an escape room business interesting. While an escape room business is quite interesting and a viable idea, more work is needed than you think.

This mostly applies to entertainment startup ideas .

The importance of a well-written business plan can never be overstated. To achieve that, you’ll need to follow a detailed and systematic process as outlined here.

Also, be ready to put in the work as a hurried job will only result in a shabby plan

ESCAPE ROOM BUSINESS PLAN SAMPLE

Your journey should begin with identifying all the main sections of your escape room business plan. Each of these points contains further details that touch on various aspects of your operation.

Such sections include the executive summary, as well as the company description.

Others are the products & services section, market analysis, strategy & implementation, organization & management team, as well as the financial plan & projections sections.

To have a better grasp of what they entail, we’ll need to take a look at each of them as follows.

i. Executive Summary

Here, the name alone speaks volumes. The executive summary is a brief introduction of your business plan that describes the business.

Part of its description includes the provision of basic information about vital areas such as the target market, problem solved as well as financial highlights.

Other sections crucial to a well-written executive summary include the business name and location, products & services offered, mission & vision statements as well as the purpose of your plan.

These go a long way to help you adequately introduce your business while summarizing the plan.

Business Name & Location

A comprehensive way to introduce your escape room business will be to begin by stating its name. With this done, you’ll also need to provide information on where it will be located.

This is central to business growth and development.

When strategically located, your escape room business performs excellently in terms of sales. This is a crucial inclusion that mustn’t be left out.

Products & Services

Is your escape room business solely service-based or are there related products on sale?

Whatever the case may be, it’s important to have your services clearly stated. Remember this should be brief enough to ensure you don’t lengthen the executive summary section.

Mission & Vision Statements

The mission and vision statements seek to give clarity to where your escape room business is headed. By merely reading such short statements, an investor can know if your business idea has a real shot at growth or not.

The mission statement should be able to succinctly describe the importance of your goals as well as the underlying philosophies. With the vision statement, you’re seeking to identify the ultimate goal of your escape room business.

Simply put, it gives purpose to your escape room business idea.

Specific Purpose of your Plan

There are several reasons for writing a business plan. However, the specific purpose of your escape room business plan should be stated.

In most cases, the business plan may either be written to help secure investments or for setting growth strategies in place. Both of these or just one could be the reason why the plan is written.

ii. Company Description

True to its name, the company or business description section seeks to give a broader understanding of your entire operations. This should include details about the legal structure adopted as well as a brief history of your operations as a business.

Clearly state the nature of your business operations in addition to customer needs to be met. Here, key players and the roles played will need to be added. Such key players include your customers and suppliers.

Have a summary of business growth added to the company description section.

You’ll need to provide financial and market highlights relating to the growth of your escape room business Be careful not to leave out details about your short and long-term goals.

iii. Products & Services

Under the products & services section is a much detailed description of what’s on offer. Of what benefit is an escape room business to the client? The need to recreate is one of the major benefits.

Include such and other client benefits. Also, state the market role of your products.

There’ll be other competitors offering similar services. How do your services measure up and what are the clear advantages it has over those? Are you researching on improving your service offerings and delivery?

Include such information as well.

iv. Market Analysis

This is where you demonstrate your knowledge about the escape room business sector. The only way to do a good job here is by carrying out detailed research.

Areas to be included here are a sketch of the target customer segment, industry outlook, and description as well as the historical, current, and projected marketing information.

There needs to be an assessment of the strengths and weaknesses of your competitors. The reason is simple, to identify areas of competitive advantages.

v. Strategy & Implementation

There needs to be a well-thought-out marketing and implementation strategy in place. Such information helps with business promotion and working out crucial details relating to pricing, costs, promotions, and distribution.

What are your typical operational hours?

vi. Organization & Management Team

The organizational structure of your escape room business is under focus here. Details on all the key players are provided beginning with an organizational chart.

A description of key employees and departments headed by them is important.

The owner(s) of the escape room business also need to be identified. Here, their names, percentage ownership, and level of involvement matter. Have a profile of your management team included.

vii. Financial Plan & Projections

This is where the financial details regarding your escape room business are supplied. Without the help of a financial expert, your chances of doing a good job here are limited.

The main areas focused on include the historical financial data, realistic prospective financial information as well as a brief analysis of your financial data.

When completed, you have a sound and implementable escape room business plan. Your business idea has a high chance of succeeding than one without a plan or with a badly written business plan.

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• Blog for business

Entertainment business

How to set up an escape room

The business idea of opening an escape room from scratch: find out how to start and how much it costs, together with all the possible benefits and risks

Introduction

Starting an escape room from scratch

Preparing an escape room business plan

Escape room: initial expenses

Risks and benefits of opening an escape room

Conclusions

#1 Introduction

The entertainment business, despite all the current difficulties, is still in high demand. It is popular among both entrepreneurs and clients. The latest events: the pandemic, restrictions, and switching to the online way of life, have taught people to spend on entertaining themselves. That is why modern customers are eager to pay for amusement arcades and other games. There are many game clubs, but there is still a gap in the entertainment niche, so not everyone can get what he wants.

However, it is pretty good for you as it is a handy chance to start a prosperous business. Then get a loyal audience without any special efforts.

Ok, fine, but there are so many cinemas, cafes and even bowling, it seems the demand is fully covered. Well, there are, but clients always ask for more, so why not offer them an opportunity to spend a lovely time at a VR club or an escape room, for example.

Various escape rooms are popular among youth. The average age of the clients is 15-40 years. Let's see whether there is a chance for you to start the business. Today, we'll speak about all the advantages and disadvantages of opening an escape room and the time you'll need to create a successful business. Plus, of course, we couldn't omit all the possible expenses. Let's dive into the fascinating world of escape rooms. It'll be helpful!

Statistics show that escape rooms help to develop better memory, they make you energized and increase the level of dopamine.

Sure! They are very innovative. Escape rooms use visual and sound effects, 3D and 4D, interactive puzzles, etc.

We recommend connecting EasyWeek software . It is a user-friendly, affordable solution that stores data in the cloud. It is very convenient as you can use the software via the Internet. No need to install any additional equipment.

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8 Things to Consider Before Deciding to Open an Escape Room

In just three years, the escape room industry grew from less than 100 to 2,000+ locations in North America.

But for every new escape room business that has emerged, others have failed. Some never made it to their opening day. Many others shut down within their first year or two.

People quickly discovered the truth: opening an escape room isn’t a guaranteed success. Like any business, they require an enormous amount of time, effort, and love to become successful and sustainable.

In other words, starting an escape room business isn’t for everybody. It’s hard work! But for the right kind of person it can be personally and financially rewarding.

We interviewed some of Xola’s most successful escape room customers and identified the eight most important considerations to make to answer the question: should I open an escape room?

1. Play a Lot of Escape Rooms (A Lot!)

If you want to start an escape room business, you need to play a lot of escape rooms first.

Every new room you play will improve your ability to design and run your own games. Playing other rooms will help you build better storylines and create more intriguing puzzles. They will show you creative ways to use props and innovative ways to apply new technology.

Even the bad experiences are worthwhile. They teach important lessons about what not to do. How not to treat customers, design games, or manage your rooms.

Try to vary the types of rooms you play. Try rooms with different themes. Ones with and without integrated storylines. Try low-tech and high-tech games.

Play local escape rooms whenever possible. They will give you a better understanding of your competitive landscape. They will help you determine what rooms are popular in your area, what themes or puzzles are overused, and how you can stand out in a crowded market.

Take the time to travel, too. Seek out a few locations with standout games, travel there with a group, and spend a weekend visiting and playing the rooms.

Regardless of where you travel, make sure you play a lot of rooms before spending too much time learning how to start an escape room business .

2. Talk to Owners

One of the biggest advantages of joining the escape room community is how helpful and inviting the community really is.

To grow the industry to where it is today, owners have relied on one another for support. In the early days, escape room owners were known to recommend their competitors’ rooms to their customers. Although these practices are less prevalent now, most operators are still happy to talk to aspiring owners about the ups and downs of starting and running an escape room business.

When Lori Harding, owner of The Escape Room Experience, was first considering starting her escape room business, she decided to approach a local owner.

“I wasn’t sure how it was going to be received… if I was going to be perceived as the evil competition or not.”

But Harding was pleasantly surprised. “She was super warm and friendly,” Lori remembers. “She was very forthcoming… [She] actually allowed us to play a second game on the house, gave us a tour, and answered any questions I had. She was very, very warm and welcoming, so I was very excited. That was my first impression of the industry.”

When you visit your local escape rooms, consider reaching out to the owners. If you’re concerned about reaching out to your direct competitors, consider approaching owners of escape rooms outside of your immediate area.

3. Join the Community

The escape room industry has a very active, welcoming and vibrant business community.

The community interacts most frequently on Facebook. They have 25+ different groups in North America dedicated to everything from room design to marketing and sales ideas.

For more in-depth information, there are dozens of publications, podcasts, and blogs (like this one) that are constantly dishing out new insight, interviews, and ideas.

Click here for a comprehensive list of the most popular Facebook groups, blogs, and community resources .

4. Attend Conferences and Seminars

Escape room conferences are a must-attend if you want to stay up-to-date on the latest technology, room designs, and business practices.

Every conference is jam-packed with educational seminars. A large portion of the seminars are dedicated to helping prospective escape room owners start and run their business successfully.

Click here for a comprehensive list of escape room conferences and events .

5. Do Market Research

Most escape rooms are brick and mortar businesses, which means that they rely heavily on local residents and tourists for business.

That means location matters. A lot.

Conducting market research will help you answer questions like:

• What is the population of my area?
• How large is the tourist population? Where do they come from? What do they like to do while they’re here?
• What kind of people live in my area? What age? Gender? What are their interests?
• What other kinds of activities do people like to do for fun in my area? Where do they go to do them?

To get this kind of information, start online, and consider reaching out to your local chamber of commerce for additional resources.

6. Study Your Competitors

It’s important to consider your competitive landscape. In other words, how many other escape rooms are in your area? How full do they get on busy weekends and on slower weekdays?

Here too, we recommend you start online. You can quickly identify other local escape rooms by searching on Google, or checking online escape room directories ( like this one compiled by roomescapeartist.com).

At Xola we calculated the “density” of escape rooms in each US state based on general population and number of locations. You can find our research here .

Consider doing competitive research in person, too. When you visit other local escape rooms, pay careful attention to the what kind of customers they serve. Try checking their booking availability on their website or monitor foot traffic over the weekend to get an idea of how full their rooms get at their busiest times.

7. Write a Business Plan

Writing a business helps you better define what, why, and how you plan to build and grow your escape room business. It will help you visualize what the business might look like, determine if it’s financially feasible, and decide if starting an escape room business is right for you.

You don’t have to have everything figured out yet. You’re still trying to figure out of opening an escape room business is right for you. But it’s important to have a clear idea of the feasibility of the business and how you might build it before making any personal or financial commitments.

Most business plans focus on 5 key elements:

• Executive Summary – The overview of your escape room business and plan. It should be short (ideally one page). Because it is meant to summarize the details of the entire plan, most people write it last.
• Opportunity – What is the market opportunity? What kind of rooms do you intend to build and sell? How are you going to stand out in a crowded market?
• Execution – How do you plan to build and run your escape room? This section often covers your escape room marketing strategy , operations, and how you’re going to measure success.
• Team and company – Who is part of your current team? (business partners, employees, contractors, etc.) What skills do they lend to the business that you do not have? What positions will you need to fill as you grow? This section may also outline your legal structure and location.
• Financial plan – A business plan isn’t complete without a financial forecast. This is often one of the more difficult sections to complete, since costs can vary widely between escape rooms. Things like rent, permit fees, insurance rates, and wages vary dramatically from place to place. Remember to also factor in room design and technology investments. They don’t just determine the quality of your games, they impact your budget.

8. Business or Hobby?

Before diving deeper into how to start an escape room business you need to ask yourself: am I committed to the demands of running a full-time business? Or is this just a hobby for me?

“A business isn’t a hobby,” Michael Hill of Limitless Escape Games warns. “If you’re actually making this your livelihood, you have to go all in to make it work.”

Of course, that doesn’t mean that you cannot enjoy it. Or that you shouldn’t put time, energy, and love into your room and game design. After all, your escape room business is only as good as the quality of your games.

But the responsibilities of being a business owner will dominate a majority of your time. You will spend a lot of time taking on roles you may have never expected, especially early on when you cannot afford extra staff. You’ll play the role of administrator, customer service rep, marketer, handyman, and janitor (those bathrooms aren’t going to clean themselves!) and many other roles besides.

When you make your final decision, it’s important that you are committed to spending the time, effort, and funds necessary to start, manage, and grow a successful escape room.

Running an escape room business isn’t for everyone. But for the right kind of person, it can be incredibly rewarding.

Before diving deeper into how to start an escape room business, become intimately familiar with escape room games. Play as many rooms as possible, and talk to the owners to get a better idea of what the business entails.

Join the community online and in-person. As you become more familiar with the industry, spend some time doing market and competitor research to understand the opportunities and challenges of opening an escape room in your area.

With those considerations in mind, you can begin to create your escape room business plan to help you visual how you intend to build and grow your escape room business.

Writer Carla Vianna

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Escape room business plan template

Download this escape room business plan template in PDF or Word format, or tailor it to your project directly in our business plan software.

Discover our escape room business plan template

Our escape room business plan template gives you the structure to write a professional plan.

Not accustomed to writing business plans? Our escape room business template will turn a typically challenging process into a total breeze.

Modelled on a complete business plan of an escape room in Normandy, our template features both the financial forecast and the written part that presents the project, its team, the local market and the business strategy implemented by the management.

Cast your eyes on this template to achieve a better understanding of what your bank and investors would like to see, so that you can create a business plan that meets their expectations.

7 day free trial. No credit card required. Escape room business plan template available with paid plans only.

How to use this escape room business plan template

Edit the escape room business plan template online, or download it.

There are 3 ways to use this template:

• Edit it online: you can adapt this template to your business idea by changing the text or the financial forecast directly in our business planning software
• Download in PDF: if you're just after a little inspiration, you can download the escape room business plan template in PDF to read over it
• Download in Word format: want to edit your plan on Word? Simply export the escape room business plan template to Ms Word (.docx) format

Escape room business plan template content

This template includes a complete escape room business plan example, with a financial forecast and the following sections:

• Executive summary: the executive summary gives the reader a clear and concise overview of your business idea
• Company: this section lays out the structure of your business, including its location, management team and legal form
• Products and services: here, you'll give an overview of the different themed escape rooms your business offers
• Market analysis: the market analysis is where you’ll demonstrate that there is a strong demand for your escape room through a thorough assessment of the industry (customer profile, hot trends, regulation, competition, etc.)
• Strategy: this section highlights your escape rooms' game plan when it comes to pricing, marketing and mitigating risks along the way
• Operations: this step lays out your escape rooms' operational organisation, including the recruitment plan
• Financial plan: the financial plan includes a table of sources & uses (initial funding plan), and complete financial statements (P&L, balance sheet and cash flow statements).
• Appendices: this part provides the opportunity to include multiple financial appendices generated by our software (debt maturity profile, monthly financial statements, financial analysis, etc.).

Executive summary for an escape room business plan

The executive summary gives the reader a clear and concise overview of your business idea.

Our escape room's executive summary is formed of the following subsections:

• Business overview: in this subsection, we outline who the escape room founders are, what legal form they've chosen for the business, and the rationale behind the choice of their location
• Market overview: in this subsection, we summarize the conclusions of the market analysis performed by the escape room's owners and explain what age groups and genders they aim to target
• Financial highlights: in this subsection, we give an overview of the forecasted financial performance of the escape room over the first 3 years of operation
• Our ask: in this subsection, we outline the amount of financing required to start the escape room and how it's going to be funded (the founders are seeking a bank loan to start their escape room)

Company overview included in our escape room business plan sample

This section lays out the structure of your business, including its location, management team and legal form.

Our escape room business plan template's company section is formed of the following subsections:

• Structure & Ownership: in this subsection, we outline who the escape room's shareholders are and what legal form they've chosen for the business
• Location: in this subsection, we present the area surrounding the location chosen for the business and the layout and main features of the premises
• Management Team: in this subsection, we give an overview of the background of each of the escape room's founders, explain how they met and why they decided to start a company together

Products and services offered by the escape room

The products and services section is where you will present the different themed escape rooms offered by your business as well as any extras that can be purchased on site (some escape rooms have photo booths, snacks etc.)

In our escape room business plan template products and services section, we cover:

• William the Conqueror: an escape room where players have to find several pieces of torn parchment, assemble them together, advance to the final room and solve the riddle
• Vikings: an escape room where players will be tasked with finding religious relics lost in the Norman conquest before the guard arrives
• Discounted "loser" rates: a reduced rate for those that have visited our escape rooms previously but not managed to succeed in the game and want to try again

Market analysis for the opening of the escape room

The market analysis is where you’ll demonstrate that there is a strong demand for your products and services through a thorough assessment of the industry (customer profile, hot trends, regulation, competition, etc.)

Our escape room business plan example's market analysis section is formed of the following subsections:

• Demographics and Segmentation: in this subsection, we explore the market in depth. We look at the supply and demand sides both at the national and local level, analyse the hot trends perceived by the founders, and the key statistics that will help the founders build their positioning
• Target market: in this subsection, our founders explain who they view as their ideal customer (our escape room business plan template targets locals, tourists, schools and companies)
• Competition: in this subsection, we take a look at the direct (independent or franchised escape rooms nearby) and indirect (other popular group activities in Caen) local competition to ensure we have a differentiated positioning and that the market is large enough to accommodate the arrival of a new escape room
• Regulation: in this subsection, we give an overview of the main regulation applicable to our escape room

Setting the strategy for our escape room

This section highlights the company's game plan when it comes to pricing, marketing and mitigating risks along the way.

Our escape room business plan template strategy section is formed of the following subsections:

• Pricing: in this subsection, we explain how we set our escape room rates (off-peak, peak time, two-room, last minute, "second-life") and the rationale behind our choice
• Marketing plan: in this subsection, we explain what action we'll put in place to build awareness and loyalty among our escape room customers
• Milestones: in this subsection, we give an overview of the main goals we set for ourselves for the next 3 years
• Risks and Mittigants: in this subsection, we perform an assessment of the medium and long-term risks that could jeopardize the financial viability of our escape room and outline how we intend to mitigate them

Operations section of the escape room business plan template

This part lays out the company's operational organisation, including the recruitment plan.

Our escape room business plan operations section is formed of the following subsections:

• Personnel plan: in this subsection, we explain what our opening hours will be and explain the responsibilities of each of staff member in our escape room
• Key assets and IP: in this subsection, we list the assets and intellectual property rights which are critical to our business operations and explain how we will secure and protect each of these
• Suppliers: in this subsection, we give an overview of the main suppliers we will use our what commercial terms have been negotiated with them

Financial plan included in our escape room business plan template

This section presents the expected financial performance of the escape room over the next 3 years.

Our escape room business plan example's financial plan is formed of the following subsections:

• Start-up funding: in this subsection, we list the cost of each item required to launch the escape room
• Important assumptions: in this subsection, we explain the methodology and the main assumptions used to build the escape room's financial forecast
• Sales forecast: in this subsection, we detail the expected revenues and growth rate for our escape room in the coming years
• Cost structure: in this subsection, we list all the expenses required for our escape room to operate smoothly
• Projected Profit & Loss statement: in this subsection, we analyse our forecasted P&L and comment on the expected profitability of our escape room over the next 3 years
• Projected cash flow statement: in this subsection, we analyse the expected cash generation of the escape room
• Projected balance sheet: in this section we give an analysis of the liquidity and solvability implied from our balance sheet

Appendices of the escape room business plan template

This part provides the opportunity to include multiple financial appendices generated by our software (debt maturity profile, monthly financial statements, financial analysis, etc.).

Our escape room business plan template's appendices include:

• A maturity profile chart showing the principal repayments of their loans over the next 3 years
• A monthly cash flow forecast: showing how much cash is being generated or consumed each month over the first 3 years of operations

Escape room business plan template sample

Executive summary, business overview.

Escape History will be an escape room specializing in historical-themed games.

Both of our game rooms are at the same Caen venue and have been inspired by Norman History (the theme for room one is William the Conqueror whilst the theme for room two is the Vikings).

Each room can accommodate 3 to 8 players per game.

The aim of the game is to decipher a tough riddle with the help of a series of clues. Doing so means you've "escaped" and subsequently won the game. The time limit for each game is 60 minutes.

Escape History will be a limited liability company, managed by Alain D. and Victor D. whose profiles and industry experience complement each other.

Alain D. has great knowledge of the industry, having worked as a stage manager in Caen for 15 years.

Victor D. has a doctorate in history, which will enable him to design puzzles inspired by historical events in the region.

Market Overview

National Market

Key figures from the escape room industry

Escape rooms are relatively new concepts in France. Since 2013, there have been 500 startups in this sector - 60 of them opened in 2018.

There are currently 4 escape rooms in Caen, all of them diverse. Themes include:

• World War II
• Alice in Wonderland

With the population of Caen being 106,260 in 2015 and only four 4 escape room businesses in the region, we believe that there is a significant gap in the market for a historical-themed escape room. 

The average escape room game in the market, involving 3-8 players is estimated to cost between €18 and €30 per person. The average price per person is approximately €22 per player.

Being situated in the city centre allows us to target both local residents and companies organising team and social events.

Our historical positioning also helps us target tourists coming to visit the Caen region as well as schools wanting to organise educational outings.

Financial Highlights

We expect the business to be profitable from its first year of trading.

We expect to achieve a turnover of €121,033 in year 1 and an EBITDA of €4,461 (or 3.69% of margin).

An improvement in the occupancy rate (number of slots booked) in years 2 and 3, through word-of-mouth marketing and other actions listed in our marketing plan, should enable us to achieve a growth of 8.08% in year 2 and 6.32% in year 3.

In year 3, we expect to generate a turnover of €139,079 and an EBITDA of €21,656 (or 15.57% of margin).

The business should be sufficiently capitalized to enable us to meet our loan repayments and invest in developing new puzzles while retaining sufficient headroom to deal with unforeseen circumstances.

Escape History will require an initial investment of €75,000. Our partners will contribute €50,000 (i.e., 67% of the total amount). 

We would like to obtain a bank loan of €25,000 to complete the financing.

500,000+ entrepreneurs have already used The Business Plan Shop

Easy to get started with and well-guided throughout. Lots of business plan templates to help you and writing is easy because there are explanations at each step of the process.

Quite frankly excellent because I was able to finalize my business plan in less time than expected. This software offers a very coherent and complete approach to writing your project.

It is a very well designed software that allows you to visualise each step of your project, understand if the idea is viable or not and think about the steps needed to start your business.

The software is just impeccable. Of course, it meets the requirements of people starting a business. In addition to having a tool for putting together a proper financial forecast, there is also a tool to help write the business plan.

Try The Business Plan Shop before you buy

There’s only one way to make up your mind about a new service - by trying it out for free. So we’re offering a free trial run on our platform for 7 days.

7 day free trial. No credit card required. Escape game business plan template available with paid plans only.

Learn more about The Business Plan Shop

Escape room shop business plan template faq.

A escape room business plan is a written document that sets out the commercial, operational and financial objectives of the company over the next 3 to 5 years.

It consists of two main parts:

• A written part that presents, in detail, your escape room business, the team, your strategy, and your medium-term objectives.
• A financial forecast that highlights the expected profitability of the escape room and the initial funding requirements.

The lack of business planning is one of the main reasons why more than 50% of startups fail within 5 years. If you're starting a escape room, writing a business plan is a must-have in order to reduce the risk of failure of your project.

Business plans are also required by most lenders and investors in order to secure financing, therefore a business plan is also highly recommended if you're seeking a loan or equity investment for your escape room.

Writing a escape room business plan without The Business Plan Shop can be both error-prone and time-consuming - whether you're new to entrepreneurship or experienced:

• You'll need to research the structure of a business plan, what to include in each section, and what key elements investors and lenders expect to see
• You may encounter writer's block (especially if it's the first time you're writing a business plan for your escape room)
• You'll need to create a financial forecast on a spreadsheet which requires a solid understanding of accounting and financial modelling in order to be done without error
• You'll need to spend hours formatting financial data on Excel or Sheets before it's ready to integrate into your business plan
• Any updates to your escape room business plan or financial forecast will need to be done manually

Luckily for you, The Business Plan Shop's online platform and escape room business plan template guide you through every stage of writing a business plan, so that you can spend more time managing and growing your business instead.

Our editor follows a best-in-class structure for professional business plans. Each section and subsection includes examples and instructions to help you, while our business plan templates provide further inspiration if you're stuck.

Our financial forecasting software helps you create a forecast and integrate it into your business plan with ease. Anytime you update your data, your business plan automatically updates.

And with our forecasting software all the calculations are done for you, without errors.

The budget to start and run an escape room will depend on the exact concept and location.

A startup that offers multiple escape rooms, such as the one in our business plan template would likely have greater up-front costs than one that doesn't (some startups only have one escape room theme, to begin with).

The quality of props, lighting and puzzles also affects startup costs. High-quality equipment encourages repeat purchases and positive word-of-mouth from clients but can add to upfront costs significantly.

As an example, in our escape room business plan template the total initial funding requirement amounted to €75,000, with the founders contributing €50,000.

In order to assess the exact budget for your escape room idea, you need to do a financial forecast using a financial projection tool such as the one we offer .

The package we offer at The Business Plan Shop goes way beyond a simple blank template you need to fill. With our platform you get:

• Access to one of the best business plan software on the market
• Access to our escape room business plan template which contains a complete example of a written business plan and financial forecast to start a escape room
• Access to our entire business plan templates library - giving you dozens of examples to take inspiration from
• Access to our financial planning and analysis platform so that you can track the actual performance of your business against what you had planned in your business plan and re-plan easily

But you shouldn't take our word for it: try our solution for free and make your own opinion!

The free trial enables you to try the software for free during 7 days in order to verify that it meets your requirements before buying.

Some features are limited during the free trial, the main limits are:

• You can only create one business plan
• The financials of the first year are visible, but data for other years are hidden
• You can export your plan in PDF but not in Word or CSV
• No access to our business plan templates

You can create your account and start your free trial here .

Access to our template is included with all our paid subscriptions.

Please visit our pricing page to learn about this in more detail.

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How to Start an Escape Room Business

Are you planning to start an escape room business? While the industry has been hit rather hard by the COVID-19 pandemic , the escape room industry is getting back stronger than ever and is expected to grow even bigger in the years to come with more and more people looking to experience physical, “real” interaction after a full year of physical distancing.

So, it’s definitely a good time to plan and start your escape room business.

You might already have your perfect escape room game design and are 100% committed to starting the business. However, you’ll still need proper planning and the right strategy to ensure success.

The steps below will ensure you can start your new escape room business successfully, and let us start with the first step right away.

Step 1: Market Research

Before you commit to starting your own escape room business, it’s best to first confirm whether there’s enough demand for escape rooms in your area. If the market size is not big enough, then you’ll have a tougher time keeping the business profitable.

The ideal target market for escape room businesses consists of those who love interactive experiences (i.e. amusement park visitors) and might prefer these experiences rather than buying products.

Also, escape rooms might be attractive for coaches and business owners who want to provide team-building or just recreational experiences. You might be surprised that close to 20% of escape room customers are corporate clients, so if there are a lot of businesses in your area, you might want to target this potential market.

Nevertheless, perform proper market research and competitive research to estimate the size of your potential market, and also how competitive the market is in your area.

Step 2: Develop Your Business Plan

A business plan is especially important if you are planning to secure outside funding (i.e. investors) in starting your escape room business. However, even if you are going to fund the business by yourself, a business plan will still be useful as a roadmap in achieving success.

Here are some key areas to consider when developing your escape room business plan:

Startup Capital The majority of your startup investment will go to your property (i.e. cost of rent) and also to room design. The bigger the property, the better the location, and the more complex the escape room design is, the more capital you’ll need.

You’ll also need to consider costs for getting the required business license and permit depending on your location. Equipment, furniture, furnishing, and digital infrastructure (i.e. ticketing software, CMS) may also be substantial cost elements.

In general, you can expect to spend at least $8,000 to more than $40,000 of startup capital in starting your escape room business.

Operational Expenses If you rent your property, then rent cost will be a major part of your regular expenses, other major elements would be your employee payroll and utilities (electricity, water, etc.). Depending on your game design, you might also need to replace props and equipment regularly. Content development (i.e. for your website and social media) is also a common necessity in today’s digital marketing environment.

Pricing Strategy How much can you charge your visitors? If there are other escape room businesses in your area, you can check out their prices and use them as your benchmark. If you offer more complex and interesting games, don’t be afraid to charge more than your competitors as long as you can deliver.

In general, the average ticket price for escape room games is $25 per person for a 1-hour game. You might also offer group discounts (i.e. charging only $15 if they bring a group of 10) depending on the capacity of your rooms.

Branding Choosing the right brand name is obviously very important. Choose a catchy brand name that is easy to remember, and if possible choose a brand name that fits your theme (if you are planning to stick with one theme). When choosing a brand name, you should consider:

• The availability of the name, check state and federal trademark records
• Availability of the handles in social media platforms
• Availability of web domain

Step 3: Form a Business Entity

If you are planning to start this business by yourself, then you can start it as a sole proprietorship. It will be more affordable than starting a corporation and will involve less paperwork.

However, it is usually recommended to start your business as an LLC (Limited Liability Company) or a corporation so you’ll get adequate legal protection as an individual in the event of disputes, or for example in cases when your escape room business is in debt.

You’ll also need to register the business for a variety of state and federal taxes before you can legally run the business. Depending on which business structure you’ve formed, you might have different options in registering your business for taxing purposes.

Also, check your legal tax regulations for specific taxes that might apply to your escape room business.

Step 4: Obtaining Required Permits and Licenses

Again, the legal requirements for permits and licenses might vary depending on your location, so check with the SBA’s page for state permits and licenses if you are located in the US or your local trade associations to ensure you are getting the right information. You can, for example, check with your county’s or town’s clerk’s office.

Failure to acquire the required permits and licenses can result in various legal issues, and in a worst-case scenario, your business might be shut down.

If you are located in the US, then most states will require you to obtain a business license, and you might also need to acquire a Certificate of Occupancy (CO). If you rent a location, then it’s typically the landlord’s responsibility to obtain this document, but check with your landlord whether they have or can obtain a CO. A new CO might need to be issued in the event of a major renovation (which is common in designing your escape room).

If you plan to purchase your own property, then you’ll be responsible for obtaining a valid Certificate of Occupancy from the local authority.

Step 5: Get Business Insurance

In most locations in the US, you’ll need to be insured before you can legally open the escape room business.

However, even if insurance is not a legal requirement, getting the right insurance policies can significantly help in protecting yourself, your business, and your partners in the event of accidents and losses.

At the very least, you should get General Liability Insurance and Workers’ Compensation Insurance (assuming you’ll have employees).

Step 6: Design Your Escape Room Games

This step is arguably the most important one. Your escape room game is your business’s main (if not only) selling point, and will literally make or break your business.

Most escape room games typically follow the traditional 3-act structure: the game usually starts slow with relatively easy puzzles in the first act (and prologue), and the puzzle will get harder with faster time limits in the next acts.

When designing your escape room, it’s also important to decide on how long the game will last on average. Most escape rooms last around 45 to 60 minutes, but younger teenagers and children typically get bored after 30 minutes.

The shorter the game, the more players you can squeeze in (which will translate into more revenue). However, if the game is too short, you’ll get bad reviews and lower chances of repeat customers. Finding the right balance here is very important.

Also, don’t forget the importance of a good story. The escape room’s story is more than just an intro for the puzzles but should be a foundation you’ll build the rest of the game on and should provide an overall theme and feel for the game.

Step 7: Build Your Digital Infrastructure

Even if an escape room business is a brick-and-mortar business, don’t underestimate the importance of your digital presence.

Make sure you have a professional and functional website. Nowadays, there are various affordable and easy-to-use website builders like Wix or Weebly, and creating a WordPress-based site is also easier than ever. You no longer need to hire a professional web developer and/or designer to have a well-designed and functional website, so there’s simply no reason not to have one.

In this age of social media, it also makes sense to build your presence on relevant social media networks your target audience frequents. For example, if you are targeting a younger audience, then you should build a strong Instagram, Facebook, and Twitter presence. Again, strong market research will significantly help here.

However, your social media accounts are not a replacement for a professional website.

Also, make sure it’s as easy as possible for your target visitors to book your escape room online, both on your website and via social media interactions. Comprehensive escape booking software can help in this aspect so your visitors can book your escape room easily, and on the other hand, you can easily monitor the booking and schedules to eliminate the possibility of double bookings and no-shows.

Step 8: Marketing and Promotion Plan

Now that you’ve properly planned and designed your escape room, congratulations!

However, no matter how good the escape room business and your game designs are, it won’t be a profitable business unless you can attract enough visitors to play your games.

Thus, a proper marketing plan is still very important.

Start by creating a strong brand with a memorable logo. This can help your business stand out from your competitors and for your potential visitors to recognize and remember your brand.

While your escape room marketing strategy can be a very deep subject to discuss, here are a few tips you can follow:

• Social media is definitely a great way to engage your target visitors. Use both organic and paid social media marketing efforts (including influencer marketing) to get the word out and build brand awareness for your escape room.
• Claim and verify your Google My Business listing
• Optimize your listing. Focus on providing complete and accurate information for your target visitors, and don’t forget to include well-taken photos and images of your escape room
• Build local citations by listing your escape room on relevant online business directories
• Get more (positive) reviews from your visitors, especially on Google Maps/Google My Business, but also other relevant review sites and platforms
• Partner with other businesses to cross-promote. Also, partnering with other escape room businesses can actually benefit your business. It’s highly unlikely for your visitors to play one escape room game over and over again, so you can offer new experiences at your competitor’s and vice versa.
• Renew your games regularly. Again, most escape games will only be played once by each player, so renewing your games and keeping innovating are very important if you want to ensure repeat business.

Conclusion Starting an escape room business can be a great business opportunity especially for those who also enjoy playing interactive games themselves. It has a relatively low entry barrier and is also a good business for creative people who enjoy designing puzzles and games.

By following the steps we’ve shared above, you’ll have a clear roadmap in planning and starting a successful escape room business

Disclaimer: This post does not constitute legal or financial advice, is not intended to be a substitute for legal or financial advice, and should not be relied upon as such. This post is for general informational purposes only. You should seek legal and financial advice or other professional advice in relation to any particular matters you or your organization may have.

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How To Start An Escape Room Business: A Detailed Preparation

So you want to start an escape room business.

Right off the bat, that’s an excellent idea. 

Sure, the COVID-19 pandemic has had a significant impact on the escape room industry.

However, it is rebounding stronger than ever and is predicted to expand even more in the years ahead.

More and more folks seek actual, “genuine” engagement after a period of physical separation from others. 

So now is an excellent time to develop and launch your escape room business.

You might already have your ideal escape room game design and are dead set on launching your own business.

But to be successful, you’ll still need solid planning and the right strategy.

The steps outlined below will help you effectively launch your new escape room business.

Let’s get going!

What Exactly Is An Escape Room Business Anyway? 

Escape rooms are a popular pastime that is usually enjoyed by a group of people.

The participants are trapped in a room that represents a closed location (i.e., pirate ship, prison, castle, tomb, faraway planet, etc.). 

They must work together to uncover and solve the riddles that will allow them to escape in a limited amount of time.   

An escape room allows everyone to share an interactive and unforgettable moment via introspection, collaboration, creativity, and fun.

As the proprietor of an escape room business, it is your responsibility to manage it legally.

Related Reading: How To Think Outside The Box – Let’s Find Out Here.

How To Start An Escape Room Business: Your Comprehensive Guide 

Before digging into how to start an escape room business, you must first determine whether you are dedicated to the demands of running a full-time operation. 

Will this merely be a pastime for you?

Limitless Escape Games’ Michael Hill warns, “A business isn’t a pastime.” “If you want to make a hustle out of this, you have to put everything into it.”

Of course, this should not inhibit you from enjoying it.

Or that you shouldn’t invest time, effort, and passion into the design of your room and game. 

After all, the quality of your escape room games determines the success of your business.

However, your responsibilities as a business owner will take up the majority of your time. 

You’ll spend a lot of time dealing with stuff you never imagined, especially early on when you can’t afford to hire more people. 

You’ll take on the jobs of administrator, customer service representative, marketing, handyman, and the janitor (those bathrooms won’t clean themselves!).

It’s critical that you commit to investing the time, effort, and money required to start, run and grow a successful escape room business when you make your final decision.

You’ve tried a couple of escape games, and you can’t stop thinking about them.

So now you’re going to try your hand at running your own escape room business. 

That’s not an exclusive experience, you know. 

Almost all escape room owners got into the industry after having a good room escape experience.

But where do you begin now that you know what you want to do?

Right here: 

Do Some Market Research 

It’s crucial to determine whether there’s enough demand for escape rooms in your area before committing to creating your own escape room business. 

You’ll have a more challenging time sustaining the business’ profitability if the market isn’t accomodating enough.

Folks who enjoy interactive experiences (like amusement park goers) who would rather have these experiences than go shopping are the ideal target market for your escape room business. 

Coaches and other business owners who prefer to provide team-building or merely enjoyable experiences may find escape rooms appealing too.  

You might be shocked to learn that over 20% of escape room customers are business people. 

So if your neighborhood has a lot of companies, it makes sense to start an escape room business.

Join your local escape room community to find out what’s up!

Write A Business Plan On How To Start An Escape Room Business 

It’s imperative that you don’t glaze over this part.

The following are the key reasons why you should prepare an escape room business plan:

• An escape room business plan could help you fill in gaps you might otherwise overlook. You may not even realize what all your questions are at this point, but as you work through your plan, they will become clearer.
• Investors and lenders would expect to see your business plan before considering funding your business if you don’t have enough capital. The more detailed and well-written your business plan is, the more likely they will want to collaborate with you.
• If you’re collaborating with others, your business plan will aid you in explaining the project and ensure that everyone is on the same page.
• Taking the time to write out all of the specifics of your business helps ensure that you are 100% committed to starting and running your own company.
• Before your business officially launches, your business plan will allow you to predict how it will run.

You may already be aware of the advantages of having a business plan as an entrepreneur. 

However, reading over the key reasons why you need one will help you remember to include important details when you’re putting one together.

Now in this part, I’ll answer some of the questions you might have right now: 

How will you make money as an escape room business owner? 

Customers pay a participation fee to play an escape room game, which is how an escape room business makes money. 

Again, an escape room is a first-person live-action adventure experience where players are trapped in a room.

They must locate clues and solve puzzles to escape within the time limit.

You will charge an admission fee for this event. 

Why would people pay for your escape room games?

Your escape room business will have a theme and gameplay that will be wholly unique.

Customers will pay you for an experience that only you can provide. 

How much can you charge your customers? 

For a one-hour game, most games cost $25 to $30 per person.

Larger venues normally only allow 12 players at a time.

In smaller locations, games are frequently limited to no more than six participants.

The more elaborate your games are, the more you can charge. 

What are the expenses of starting an escape room business? 

Launching an escape room business can cost anywhere from $7,000 to $30,000.

It depends on the location, the cost of rent, and the sophistication of the room design.

Among the startup fees are a business license and business insurance.

Another is props and equipment. 

Some escape game rooms have extravagant costumes and set designs with laser lights, but others keep their sets pretty modest.

What are the recurring costs of running an escape room business? 

The most significant expenses are rent, utilities, and personnel salaries.

Replacement of equipment and props as needed is another continuous expense, the cost of which is determined by the complexity of your escape room’s design. 

Website upkeep with instructional information about escape room gaming and promotional advertising are other essential costs. 

Well, this sort of business is still relatively new, and many people are still unfamiliar with how escape room games function.

What do profit margins for an escape room business look like? 

The escape room industry can be tremendously lucrative.

Escape Expert , for example, began in Dallas in February 2015 and now earns around $70,000 per month. 

Likewise, the proprietor of Puzzle Break , another famous escape room business, began with only $7000 in 2013 and had a projected annual income of $600,000 less than two years later!

How can you make your escape room business more profitable? 

The greatest method to increase the profitability of your escape room business is to launch multiple rooms with multiple games. 

Because escape room games aren’t copyrighted yet, you can still use and expand on the concepts of those who have already succeeded with their escape room businesses. 

The more participatory your escape room is, the more fun the players will have and the more likely they will tell their friends about it. 

The level of difficulty should be high enough that not every team will be successful in escaping. 

Printing t-shirts with your company logo to offer memorable awards for successful escapees can be a low-cost yet effective form of marketing.

Do you prefer that players make reservations in advance, or do you want to accommodate as many walk-ins as possible?

Let’s say you want to concentrate on walk-in players.

Then you should select a site near a shopping mall or other entertainment areas. 

There is a higher likelihood of people looking for an interesting and fun experience passing by and seeing your business.

These locations, however, come with a higher rent.

Similarly, retail properties, particularly those on the street in popular areas or in shopping malls/centers, are more expensive.

Offices have reduced rental costs and are often accessible to organizations and enterprises, as well as public transportation, making it easier for them to arrange team-building events with you. 

Rental expenses for industrial properties are also lower.

These, on the other hand, tend to be in less convenient areas with fewer public transportation alternatives, making them less accessible to clients.

What should you name your escape room business? 

Obviously, picking the correct brand name is crucial.

Choose a memorable brand name that complements your concept if at all possible. Please consider the following factors while selecting a brand name:

• Its availability within state and federal trademark records 
• Its web domain availability 
• Its available handles on social media platforms 

What if you’ve never written an escape room business plan? 

It’s perfectly alright if you’ve never drafted a business plan before.

There are materials and templates online to assist you in writing one. 

If you’re in the US, SCORE, a nonprofit group “committed to helping small businesses get off the ground, expand, and achieve their goals via education and mentorship,” can be of assistance.

They can teach you how to start an escape room business if you need more guidance beyond this article.

The business plan template from SCORE is incredibly comprehensive and simple to use.

The executive summary is the last thing you’ll write and the most significant part of your business plan.

The first page that readers will encounter is this executive summary.

It’s merely a condensed version of your entire business plan, with key aspects highlighted in a few paragraphs.

Whether you seek advice from a mentor or go through it alone, you’ll find that having a full and comprehensive business plan in place before you start can make the process of starting your own escape room business much breezier. 

Form A Legal Entity 

You can establish this business as a sole proprietorship if you want to do it all by yourself.

It will be less expensive than forming a corporation and need less paperwork.

However, starting your business as an LLC (Limited Liability Company) or a corporation is generally recommended.

This way, you’ll have appropriate legal protection as an individual in the event of possible issues. 

What kind of issues am I talking about?

For one, you’ll have a solution if ever your escape room business goes into debt. 

Before you can legally run your business, you’ll need to register it for a number of state and federal taxes. 

You may have multiple alternatives for registering your company for tax purposes, depending on which business structure you’ve created.

Please check your state’s tax laws for any unique taxes that may apply to your escape room business.

Register For Taxes and Obtain The Required Permits and Licenses 

Remember, legal requirements for permits and licenses may differ based on your region. 

So if you’re in the United States, consult the SBA’s website on state permits and licenses or your local trade organizations to make sure you’re obtaining the necessary info. 

You’ll want to consult with the clerk’s office in your county or town.

Failure to obtain the necessary permits and licenses can result in a variety of legal concerns, including the possibility of your company being shut down in the worst-case scenario.

Most states will require you to obtain a business license, as well as a Certificate of Occupancy (CO). 

If you rent a space, the landlord is usually responsible for obtaining this paperwork.

Still, please check with your landlord to see if they have or can obtain one. 

In the event of extensive remodeling, a new CO may be required (which is common in designing your escape room).

If you intend to buy a property, you will be responsible for getting a legal Certificate of Occupancy from the local government.

Before you can start doing business, you’ll also need to register for a couple of state and federal taxes.

Please apply for an EIN in order to register for taxes.

Don’t worry; it’s straightforward and completely free. 

Depending on which business model you choose, you may have different taxation options for your company. 

For instance, some LLCs may benefit from being taxed as an S corporation (S corp).

Related Reading: Advantages & Disadvantages Of A Corporation – Read More Here.

Get Your Business Insured 

Before you can legally start an escape room business in most parts of the United States, you’ll need to be insured.

Even if insurance is not required by law, the proper business insurance plans can go a long way toward safeguarding you and your business.

Even your partners will be protected in the event of accidents or losses.

You should at least obtain a General Liability and Workers’ Compensation Insurance if you’re going to hire folks to work for you. 

Open A Business Bank Account and Credit Card 

Personal asset protection necessitates the use of separate business banking and credit accounts.

Your personal assets (your house, car, and other valuables) are at stake when your personal and business accounts are intermingled.

This is known as piercing your corporate veil in commercial law.

Learning how to create corporate credit can also help you secure credit cards and other financings in your company’s name, lower interest rates, and higher credit lines.

Opening Net 30 Accounts

You can use Net 30 accounts to establish and grow credit for businesses as well as boost cash flow.

A net 30 account allows companies to purchase items and pay for them in full within a 30-day period.

The major commercial credit bureaus receive reports from several net 30 credit providers (Experian Business, Dun & Bradstreet, and Equifax Business Credit). 

This is how companies establish company credit in order to obtain credit cards and other lines of credit.

Take Care of The Financing 

A “How To Start An Escape Room Business” article can’t be complete without addressing the issue of money.

Let’s go over some of the expenses you’ll face when starting and running an escape room business before we get into how to source the money.

One-Time Costs That You’ll Incur When Starting An Escape Room Business 

• If you intend on buying a property for your business, you’ll have to pay the price for its acquisition. 
• Outfitting your place of business with room partitions, toilers, electricals for lighting and internet, flooring, painting, HVAC, and possibly a kitchen
• Security system 
• Advertising for hiring staff members 
• Legal costs involved in establishing your business entity
• Reviewing agreements (including lease agreements) 
• Permits and clearances 
• Furniture like a reception table and seating for customers 
• Website setup and maintenance
• Consultations with game designers, prop suppliers and set designers 
• Props and decorations 
• Logo and marketing materials (ex., Posters, shirts, flyers, social media advertising, and partner site collaborations) 
• Readymade props and off-the-shelf puzzles from suppliers 
• Contractors for electricals and paint jobs
• If you’re planning to be a franchisee, you’ll have to pay the upfront franchise fee. 

Recurring Expenses For Running An Escape Room Business 

• Salaries of employees 
• Insurance premiums 
• Subscription fees for services (accounting system, staff rostering system, etc.)
• Advertising expenses 
• Utility bills for your phone, electricity, and internet 
• Consumable items like stationery, toilet paper, complimentary snacks, cleaning supplies, and hand soaps 
• Merchant fees for card payments 
• Prop maintenance, replacements, and revamping decorations 
• Commissions for partner sites 

Whew, that’s a lot you have to pay for.

Now, let’s figure out where you can source the funds you’ll need. 

Self-financing 

When it comes to starting your own escape room business, investing your own money gives you the most freedom.

This could entail refinancing your home to raise funds at the lowest possible interest rate.

On the other hand, it’s unlikely that you’ll be able to raise all of the funds you’ll need from your own funds.

Informal Financing 

You can ask your relatives and friends for financial assistance.

This is the ideal source of funding, aside from your own finances, because you have personal connections with your investors. 

There should be the same level of desire for profitability that formal investors would have.

Formal Financing

Debt financing .

This is where you apply for a loan or a line of credit from a bank or other financial organization.

This will be a completely formal meeting in which you will be asked for your business plan and scrutinized on various elements of your company. 

The financial institution will only grant you a fraction of the money you need.

You may also be forced to provide personal guarantees or mortgages on any assets you possess.

The biggest benefit of this type of funding is that you keep total control of your company.

The biggest downside is that the loan must be repaid on a pre-determined schedule, with interest.

If you fail to make payments on time, the bank may confiscate your business assets.

Government Financing 

Many governments, whether national/federal, state, or local/municipal, may provide loan programs, grants, or incentives to help small enterprises.

In comparison to traditional bank loans, these types of loans may have less stringent criteria and other benefits (such as interest subvention/subsidies or the absence of a personal guarantee).

Equity Financing 

This is when someone offers you money in return for a piece of the company. 

The stake they hold will be determined by how much they contribute and whether or not they will help you set up and operate the business.

They can also choose to merely contribute the funds, leaving the management to you.

As you might expect, the biggest benefit is that there is no payback timetable to adhere to.

The biggest pitfall is that you will have to split profits with your partner and may also have to share managerial control.

This reduces your freedom in starting and running your escape room business.

Related Reading: Mind Of An Entrepreneur – Get The Sneak Peek Here.

Settle On A Location For Your Escape Room Business 

If you want to attract more corporate clients (team-building events and office parties), you’ll need a site in a commercial area that is convenient and easy to find.

If you want to attract a large number of walk-in players, look for a location near a retail complex or other entertainment venues.

As previously stated, this will result in higher rent rates. 

The Common Characteristics of An Escape Room Business Location 

Some of these characteristics might help you find a location with lower rent rates: 

• It is not imperative that your escape room business has access from the main door of the building. 
• Escape rooms don’t need to be at street level. 
• It can be in the basement of the building. This might even add to the business’ appeal if you work it into your theme (crypt, tomb, etc.) 
• It does not have to be found on the main street or high street. 
• Escape rooms do not need windows. 
• It does not have to come furnished. You’re going to have to set up your escape games from scratch anyway. An empty space would actually benefit you in this case. 

You will want your escape room business to be accessible by public transport and easily reached on foot. 

You should also consider whether there’s low-cost or free parking around the area if folks have to drive to your location. 

Design Your Escape Room Games 

Escape room design is likely the most crucial stage in your planning process.

Your escape room game is the primary (if not the only) selling point for your brand.

Your escape room design could either set you apart from the competition or drive it to the ground. 

Most escape room businesses have a classic three-act structure.

The game begins slowly with relatively simple puzzles in the first act (and prologue), and the riddles become more complex with faster time constraints in the subsequent acts.

When planning an escape room, think about how long you want the game to last on average.

The majority of escape rooms run 45 to 60 minutes, although younger teens and youngsters will get over it within 30 minutes.

The more participants you can fit into a shorter game, the better (which will translate into higher revenue). 

But, if the game is too short, you will receive negative feedback and fewer repeat consumers. It’s critical to strike the correct balance here.

Don’t overlook the significance of a good story! 

The storyline of the escape room should be more than simply an introduction to the puzzles.

It should serve as a substructure for the rest of the game and give an overall tone and atmosphere.

Escape Room Themes 

You’re going to have to settle on a theme.

It’s a crucial step in creating your own Escape Room.

Here is the research I recommend you look into.

According to Scott Nicholson’s research, these are the most prominent Escape Room themes utilized around the world, based on Peeking Behind the Locked Door: A Survey of Escape Room Businesses:

• Modern Era (2000-2015)
• Period (1700-2000)
• Fantasy 
• Science/Laboratory 
• Abstract 
• Future/Technological
• Military 
• Toy Room 
• Cartoon/Anime 
• Steampunk 
• Seasonal (Christmas, Halloween, Easter, etc.) 

Do you want to be different and take chances?

Or would you rather go with a tried and true option?

Check out the competition and inquire about their plans.

Opening two futuristic rooms in the same city at the same time would not be ideal and entirely avoidable. 

Escape Puzzles 

Your puzzles must be unique while still connected to one another.

Because Escape Rooms are designed for groups, it’s a good idea to include everyone in the puzzle-solving process.

Here are some examples of Escape Room puzzles:

• Four-digit combo lock puzzle 
• Hidden messages puzzle 
• Hidden objects puzzle 
• Blacklight puzzle 
• Magnetic switch puzzle 
• Simultaneous switch puzzle 
• Sound puzzle 
• Memory puzzle 
• Trivia puzzle 

Prop Arrangement Scheme 

For future reference, picture the placement of all furniture, objects, and decorations in your space at this time.

Installation 

Ensure that your puzzles, particularly the electrical installation, are completed by licensed personnel.

This could cost you your company or possibly your life.

Audio and Video Installation 

The more senses involved, the greater the escape room experience for your customers.

It’s also a good idea for customers to begin their experience as soon as they walk in.

Consider audio and video in the reception area.

Once guests enter your Escape Room, you want them to experience a new atmosphere.

Music Licensing 

Permission from the composer or license holder is required to play music in a business setting. 

A “blanket” license, which allows a business to play music owned by a large number of artists and recording studios, is typically available. 

Performance Rights Organizations, such as BMI or ASCAP, can provide such rights.

Inventing Your Own Games v.s. Buying Off The Shelf

Making your own games allows you a lot of flexibility in terms of theme and puzzles.

It’s also less expensive because you’re the one doing the work.

However, developing and building a game from scratch takes significantly longer than buying one off the market. 

DIY escape rooms can take months, if not years, to plan and construct.

After the room is completed, there is a lot of work to do to tune the puzzles, props, and decoration so that the room runs efficiently, is enjoyable for clients, and is durable enough to sustain repeated usage.

The final room for an off-the-shelf game can look much more polished, and the decor and props can look much more realistic and impressive.

For example, walls made of fiberglass look like real stone rather than the DIY version of using stone wallpaper.

Off-the-shelf games have also been tried, tested, and developed, giving you greater confidence that your visitors will love the game.

Build Your Digital Infrastructure 

Even if your escape room is a physical location, don’t overlook the value of having a web presence.

Make sure your website is both polished and functional.

These days, website builders such as Wix or Weebly are economical and simple to use, and constructing a WordPress-based site is also easier than ever. 

There’s no excuse not to have a well-designed and effective website now that you don’t need to pay a professional web developer and designer.

In this current age of social media, it’s also a good idea to have a presence on the social media networks that your target audience uses. 

If you’re targeting a younger demographic, for example, you should establish a strong Instagram, Facebook, and Twitter presence. Again, thorough market research will be pretty beneficial.

Remember, your social media profiles are not a substitute for a professional website.

Also, make booking your escape room as simple as possible for your target visitors, both on your website and through social media interactions. 

Robust escape booking software can assist in this regard, allowing guests to simply book your escape room while also allowing you to conveniently track bookings and schedules to avoid double bookings and no-shows.

Create a powerful brand with a memorable logo, to begin with.

This can help your company stand out from the competition and make it easier for potential customers to recognize and remember your brand.

While your escape room marketing plan is a complex subject, here are some pointers to consider:

• Social networking is an excellent approach to interacting with your target audience. To get the word out and establish brand awareness for your escape room, use both organic and paid social media marketing initiatives (especially influencer marketing).
• Make a claim on your Google My Business listing and verify it.
• Improve your listing. Focus on giving your target visitors thorough and accurate information. Please don’t forget to include well-taken photos and images of your escape room.
• List your escape room on relevant internet business directories to increase local citations.
• Increase the number of (good) reviews left by your customers, particularly on Google Maps/Google My Business, but also on other relevant review sites and platforms.
• Cross-promote by collaborating with other businesses. Collaboration with other escape room providers might also be beneficial to your company. Visitors are unlikely to play the same escape room game often, so you can provide new experiences at your competitor’s and vice versa.
• Periodically renew your games. Because most escape games are only played once by each player, it’s critical to keep your games fresh and innovative if you want to secure repeat business.

How Do You Keep Your Customers Coming Back? 

Unlike other competing businesses, collaborating with other escape room owners to provide mutual referrals benefits everyone involved, including clients looking for new gaming experiences. 

Post-game surveys are a great method to collect vital feedback from your consumers about their experiences and how your game may be improved for future players. 

Because the majority of clues are discovered during the game, each participant only plays each escape game once.

It is vital to produce and present fresh games in order to succeed in obtaining recurring business.

Offer Groupons and Discounts 

While Groupon and other bargain sites enhance your escape room’s profile, their price structure does not leave you with much profit after discounts and commissions are taken into account.

It’s an excellent alternative to consider for brief periods of time (e.g., a few months a year) or during the launch stage of your business.

Groupon and similar sites have enormous databases and access to many folks who may not have heard of you or booked with you otherwise.

Long-term use may not be economically viable, as you’ll end up with full-priced potential consumers instead of those that took advantage of the Groupon bargain.

You’ll also want to train your staff to offer price matching for these discounts so you can take direct bookings and avoid Groupon commissions.

You can either limit use to non-busy times (e.g., Monday through Thursday) or charge a fee during busy times (e.g., Friday – Sunday). 

You’ll also need to make sure that the price you set (after discounts and commissions) is high enough to cover your staffing costs and earn a profit.

Set Up Your Phone System 

Getting a business phone is one of the most effective strategies to keep your personal and professional lives distinct and private. 

That isn’t the only advantage; it also aids in the automation of your organization.

It provides respectability to your company and makes it easier for potential consumers to locate and contact you.

Hire and Train Your Staff

Depending on their expertise and ability, some members of your team, such as your manager or essential personnel, may be able to start working right away.

They can start answering emails and phone calls and conduct any scheduled games.

In terms of game masters, you’ll want to hire people who have worked in customer service and, ideally, at least one person who has worked as a game master.

These candidates may be harder to find, but they should take priority. 

Tasks of An Escape Room Game Master 

You should train your game master to:

• Be the receptionist (welcoming players, checking and making reservations, answering phone calls and emails)
• Be the game master (setting up and operating the games) 
• Troubleshoot any breakages or other issues that occur on the site, as they may be the only person rostered during non-busy periods.

These are their duties: 

• On arrival, check the customer’s reservations and collect any outstanding payments or scan the voucher if necessary.
• Get customers to sign waivers and check-in.
• Instruct clients on the assignment before entering the escape room.
• Keep track of the participants throughout the game.
• Communicate with the players, whether to provide a hint or to warn them that something should or should not be utilized in a certain way.
• Fix any props, riddles, or other issues that clients may have.
• Deal with those who are rowdy or intoxicated. 
• They must remain calm in the event of an emergency (such as the power going out or a piece of the game malfunctioning) and escort the players out of the escape room.

Print Out Operational Documents and Manuals 

You can collaborate with your employees to design a game master handbook and training program for your escape room if they have previous game master experience.

When you recruit more game masters, the guidebook and training program can be used as a guide. 

It should also include instructions for game masters on how to follow scripts, manage an escape room and assist clients, solve problems, answer phones, and clean, among other things.

Email templates should be prepared to respond to common email queries and booking requests.

Handle Special Requests 

If you have a manager, they will be the point of contact for staff if any unique demands arise from group or corporate bookings. 

If you are unable to fulfill a specific request, you must inform the group prior to the booking date.

Related Reading: How To Start Something New – Find Out Now!

Final Thoughts On How To Start An Escape Room Business 

Starting an escape room business might be a great way to make money, especially if you enjoy playing interactive games. 

It has a minimal entry barrier and is an excellent business for creative folks who want to build puzzles and games.

Now, you have a clear roadmap on how to start an escape room business successfully if you follow the steps I’ve outlined above.

No matter how crisp and clear the “rules” are, some folks may be downright haphazard. It is vital that you plan, develop, and construct it correctly.

I’ve seen far too many wannabe escape room business owners who have played a few (or many) escape rooms, gotten hooked, and then decided to take the plunge without preparations.

Several enterprises have failed and closed their doors because of these rash decisions. 

Do not fall into this category; instead, plan ahead! It will be the factor that allows you to dominate the local escape room industry.

Best of luck with your escape room business dream!

Disclosure: This article might contain affiliate links to the resources I refer to. It's at no cost to you, and it's how we pay the bills. Get more info here.

Brooks is an entrepreneur, father, husband, & follower of the golden rule. He has over 15 years of experience as an entrepreneur after graduating with a Finance degree from Auburn University. Addicted to starting new business projects, he believes in creating multiple income streams and a life of flexibility. Business should work around your life, not the other way around. He creates content on  his website , sharing his projects to help other hustlers in marketing, personal finance, and online business. 

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