kids play equipment
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Creating a great business plan requires lots of research, and it’s the first step to success for a profitable indoor playground. Your indoor play center’s business plan can help you understand your financial costs and how many customers you need to be profitable. The Small Business Association recommends a business plan include eight parts:
1. EXECUTIVE SUMMARY
Start with an overall summary of the market opportunity, proposed business, location, management structure and loan requests. You should also lay out your mission and objectives.
2. COMPANY DESCRIPTION
Here, you’ll describe the concept of your proposed indoor play area or entertainment center. What is the unique offering your business provides? Are you the only family fun center in the area? Are other companies targeting older children while yours is geared for toddlers? You’ll want to layout your startup costs as well as a budget for recurring expenses.
Also, you’ll want to summarize your overall business model. Will you offer monthly memberships, hourly reservations, pay-to-play equipment or some combination? Give examples of other successful businesses in your area and how you intend to compete.
3. MARKET ANALYSIS
In this section, you’ll lay out your potential customer base and competition. You’ll want to pay consideration to the population and demographics in your area. A community of 10,000 people can mean a very different marketplace depending on who lives nearby. A popular retirement town may have a large population, but few children. You can find demographics in your city or town using U.S. Census Data.
You’ll also want to analyze your competition and discuss how you plan to compete. Other indoor playgrounds in your region can be significant competitors. Because of the unique value of indoor play areas, people often drive from far away to visit them. Building one in a new city can give families a great experience with less of a drive.
Other competitors might include parks and recreation or after-school programs. Bowling alleys and movie theaters often top families’ lists of birthday party venues.
4. ORGANIZATION AND MANAGEMENT
Here, you’ll outline the structure of your company and who will manage it. You’ll list requirements for managers, plus full time and part-time employees. You may want employees to have CPR certifications or experience with children. You’ll also set rules, such as how many kids one employee can supervise.
You’ll also lay out a pay structure. According to the Bureau of Labor Statistics, amusement attendants make an annual median salary of $22,240. Fitness trainers make an annual median salary of $41,740.
Using this information, you’ll understand how many employees you need to hire and how much payroll will cost.
5. SERVICE OR PRODUCT LINE
Here is where you’ll discuss your specific products and services. First, you’ll outline how you plan to use your space. For example, 5,000 square feet dedicated to children four to eight years old, 1,000 dedicated to toddlers and five private birthday rooms. You might also discuss specific structures and main attractions you plan to include.
If you plan to offer other services, such as private parties or fitness classes, you’ll want to outline each of these services and their price point for consumers. If you sell concessions or merchandise, such as grippy socks, you’ll describe these in your product line.
6. MARKETING AND SALES
Next, you’ll discuss your marketing strategy and budget. As part of your sales, you can calculate how many kids or families you’ll have to bring in each month to have a comfortable profit margin.
7. FINANCIAL PROJECTIONS
As part of your financial projections, you’ll look at how your overhead and projected inflation will change your indoor playground’s business costs over time. You’ll also calculate a break-even point that shows how much revenue you’ll need to bring in each month to break even on your investment.
Here, you’ll include any supporting documents that help your business plan. Your appendix can include research on demographics, competition and financial costs. It may consist of additional charts that demonstrate where you got your numbers from.