indoor playground business plan sample

Indoor Playground Business Plan Template

Written by Dave Lavinsky

Indoor Playground Business Plan

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

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

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

Executive Summary

Business overview.

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

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

Product Offering

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

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

Customer Focus

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

Management Team

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

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

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

Success Factors

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

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

Financial Highlights

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

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

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

Company Overview

Who is fun space.

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

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

Fun Space indoor playground History

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

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

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

Fun Space indoor playground Services

• Daily Open Play Sessions

Industry Analysis

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

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

Customer Analysis

Demographic profile of target market.

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

The precise demographics for Kansas City, Missouri  are:

Customer Segmentation

Fun Space will primarily target the following customer profiles:

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

Competitive Analysis

Direct and indirect competitors.

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

KC Indoor Play

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

Kidz Play Place

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

Kary’s Kids Indoor Playground

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

Competitive Advantage

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

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

Marketing Plan

Brand & value proposition.

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

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

Promotions Strategy

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

Word of Mouth/Referrals

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

Professional Associations and Networking

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

Print Advertising

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

Website/SEO Marketing

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

Social Media Marketing/Influencer Marketing

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

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

Operations Plan

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

Operation Functions:

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

Milestones:

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

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

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

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

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

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

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

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

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

Financial Plan

Key revenue & costs.

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

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

Funding Requirements and Use of Funds

Key assumptions.

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

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

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Indoor Playground Business Plan FAQs

What is an indoor playground business plan.

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

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

What are the Main Types of Indoor Playgrounds?

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

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

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

What are the Steps To Start an Indoor Playground Business?

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

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

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

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

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

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

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

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

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

Introduction

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

How to Ensure Your Indoor Playground’s Safety?

Indoor Playground Rules and Regulations

Ways to maintain your playground.

Ways to Improve Your Indoor Playground

The Ultimate Guide to Your Indoor Playground Business Plan

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

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

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

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

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

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

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

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

1.Find a Location

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

2.Identify target customers

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

3.Planning your budget

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

4.Design Your Indoor Playground

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

5.Buy indoor playground equipment

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

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

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

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

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

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

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

6.Obtain business licenses 

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

7.Install the indoor playground

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

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

8.Recruit staff

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

9.Marketing and Branding Your Indoor Playground

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

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

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

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

④Online advertising marketing

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

How to Ensure Your Indoor Playground’s Safety?

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

1.Post safety tips and precautions in the park

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

3.Routine inspection

4.Install the equipment under professional guidance

5.Emergency Preparedness

6.Ensure the use of age-appropriate equipment

7.Exit and entrance instructions

8.Buy amusement equipment that meets standards

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

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

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

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

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

5.Restrictions on children's age and height

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

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

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

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

10.Smoking is strictly prohibited in the indoor playground.

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

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

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

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

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

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

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

Ways to Improve Your Indoor Playground

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

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

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

4.Holiday seasonal events to drive traffic

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

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

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

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

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

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Indoor Playground Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Entertainment Sector

Are you about starting an indoor playground business? If YES, here’s a complete sample indoor playground business plan template & feasibility report you can use for FREE to raise money .

This is one lucrative business that sure can guarantee good returns on investment. However, you will be required to do some underground work too. It becomes therefore really expedient that you do the needful to garner the right information that will be useful to your business as you launch out.

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A Sample Indoor Playground Business Plan Template

1. industry overview.

The indoor playground which is also known as indoor play centers are playgrounds located in facility; shielded from direct impact of climatic conditions. These facilities are specifically designed for kids to play in, exercise and have incredible fun.

The soft-contained structure and play equipment are all wrapped in soft foam so as to absorb the impact when children fall or bounce around them. Players in this industry operate franchised fitness and recreational sports facilities for children aged 18 and younger.

The Children’s Fitness Center Franchises industry has indeed coped well over the last five years, as it recovered from the economic downturn that affected most businesses in the united states.

Rising per capita disposable income as well as growing awareness of the benefits of playing and exercising regularly, especially in response to the rising childhood obesity rate, have driven demand for this line of business in recent time. Going forward, rising per capita disposable income and lower unemployment levels will continue to drive up demand for franchises.

The Children’s Fitness Center Franchises industry of which indoor playground line of business is subset of is indeed a very large industry and pretty much thriving in all parts of the world especially in developed countries such as United States of America, Canada, United Kingdom, Germany, Australia and Italy et al.

Statistics has it that in the United States of America alone, there are about 1,050 licensed and registered children’s fitness cum indoor playground facilities including those who are into franchising responsible for employing about 10,723 employees and the industry rakes in a whooping sum of $550 million annually with an annual growth rate projected at 2.0 percent.

My Gym Children Fitness Center, Stretch –N- Grow International Inc. and The Little Gym are considered to have the giant market share in this industry. According to IBISWORLD, The revenue for the Children’s Fitness Center Franchises industry is expected to increase at an average annual rate of 2.0 percent to $550.3 million over the five years to 2016.

No doubt, The Children’s fitness center franchises have benefited from rising per capita disposable income, coupled with rapidly growing awareness of childhood obesity and the importance of daily physical activity. While the number of children aged nine and younger remained stagnant over the five-year period, it still grew in 2016, prompting industry revenue to also grow 1.4 percent that year.

IBISWORLD also projected that profit is expected to rise from 9.0 percent of the industry revenue in 2011 to 11.1 percent in 2016, driven by some children’s fitness center franchises expanding their high-priced service offering to activities such as interactive fitness

In recent time, the industry has experienced revenue growth, despite many families being time-strapped. While the industry contended with mounting competition from alternative leisure activities, such as bouncy castles and cinemas, many operators generated industry revenue growth on the basis of convenience.

In the coming years, the industry revenue is forecast to grow as the Children’s Fitness Center Franchises centers continue to enhance their product portfolios to attract children and families, despite their reduced leisure time

Over and above, starting an indoor playground facility business in the United States of America can be some worth stressful, it requires enough cash to acquire land large enough to accommodate the kind of indoor playground facility that can comfortably attract children cum families and also cash required to equip the indoor playground facility to meet the standard expected by potential users.

2. Executive Summary

Bellerose Indoor Playground ®, LLC is a standard and well equipped indoor playground cum children’s fitness center facility that will be located in a growing community in St Louis – Missouri.

Our basic aim of setting up the business is to contribute our quota in ensuring that children cum families who live in St. Louis and neighboring towns have an indoor playground facility for their children to catch fun to the maximum and also to open; a facility highly suitable for family recreation and bonding.

We are committed to nurturing the play, imagination and early learning in children while providing a clean safe environment for children to explore and have fun to the maximum. We have been able to secure a standard indoor playground facility in a central and easy to locate location in St. Louis – Missouri.

Aside from the fact that our aim of starting the business is to entertain children and keep the physically and mentally fit; we will still go ahead to make available, video game house, bowling alley, BBQ joint, food and drinks court, ice cream shop and enough parking space so as to get parents and guardians occupied when they bring their wards to our indoor playground facility.

We are well equipped to services the whole family cum community as well as visitors and travelers. Bellerose Indoor Playground ®, LLC is going to become the number one children cum family – focused recreation facility in the whole of St. Louis – Missouri and we will work hard to build our indoor playground facility to match the needs of the average child under the age of 18 in the community.

Before launching the business, we conducted a thorough market research and feasibility studies and we were able to come to the conclusion that St. Louis – Missouri community is the right place to open our indoor playground facility. As a matter of fact, our major aim of starting Bellerose Indoor Playground ®, LLC is to encourage families in the community to cultivate the habit of regularly taking their kids out to have fun.

Our indoor playground facility is specifically designed and built to take care of children as well as parents, we have active childcare services for toddlers and we have membership packages that are highly discounted for families that enrolled in our indoor playground facility or churches and schools who would want to regularly make use of indoor playground facility.

Bellerose Indoor Playground ®, 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. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Bellerose Indoor Playground ®, LLC is a business that is owned and managed by Stacy Jones and her immediate family. Mrs. Stacy Jones has robust experienced in the children entertainment and family recreation industry and she possess B.Ed. in Physical and Health Education.

3. Our Products and Services

Bellerose Indoor Playground ®, LLC is in the children’s fitness center franchise industry cum indoor playground line of business to provide children’s fitness center, entertainment and recreation facility for residence of St. Louis – Missouri which is why we have been able to put up an indoor playground facility that can help us achieve the goal.

We are optimistic that everyone who make use of our indoor playground facility will definitely derive maximum fun and of course good value for their money and time. These are the services and amenities that will be made available to our clients in our indoor playground facility;

• Varieties of ride on toys for children
• Child care services
• Amusement and recreational services
• Ceramic Paintings
• Spas for Children
• Game Dungeons
• Bouncy Castle
• Managing indoor playgrounds and gymnastics centers
• Providing gymnastics instruction
• Providing dance instruction
• Providing swimming instruction
• Providing additional children’s fitness activities instruction
• Other related indoor playground facility operations.

4. Our Mission and Vision Statement

• Our Vision is to build a world – class indoor playground cum children’s fitness facility and also to contribute our quota in encourage families and children in St. Louis – Missouri to actively engage in children fun – filled and recreational activities.
• Our mission for establishing Bellerose Indoor Playground®, LLC is to create a movement in the community that supports total engagement in children cum family in fun filled and recreational activities.
• We want to contribute our quota towards ensuring that St. Louis – Missouri community produces some of the happiest and healthy children free from obesity in the whole of the United States of America.

Our Business Structure

Bellerose Indoor Playground®, LlC is in business to become the leading indoor playground facility cum children’s fitness center in the whole of St. Louis – Missouri and we are fully aware that it will take the right indoor playground facility, management and organization – 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 accomplish. Our business will not be built only for the purpose of giving our members / customers value for their money and time, but also we will ensure that we make our work environment highly conducive for all our employees.

We will provide them with employee package that will help them stay motivated and deliver on their various tasks and goals et al. 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
• Indoor Playground Facility Manager
• Accountant / Cashier
• Marketing and Sales Officer
• Indoor Playground Safety 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; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• 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 providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Carries out staff induction for new team members

Indoor Play Ground Facility Manager

• Responsible for operating and managing the indoor playground facility
• Ensures that the facility is in tip top position at all times
• Responsible for managing food and beverage services
• Manages membership and registration services
• Handles equipment rentals and sales services
• Handles other relevant indoor playground facility operations

Indoor Playground Safety Instructors / Assistant (5)

• Ensures that children follow lay down safety measures when they make use of our ride – on – toys, bouncy castles and other play facilities available in our indoor playground cum children’s fitness center
• Handles amusement and recreation services
• Handles registration for sports tournaments and matches
• Responsible for handling and giving instruction for services such as meals and beverages, coin-operated games and rides, amateur sports teams and club services, go-karting, batting cages, driving ranges , shooting ranges, kayaking, miniature golf courses, mountain climbing, snowmobiling, sports clubs, teams and leagues et al.

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; participates in the structuring and financing of projects; assures the completion of projects.
• 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 Bellerose Indoor Playground®, LLC in strategic meetings
• Helps to increase sales and growth for Bellerose Indoor Playground®, 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; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• 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 Bellerose Indoor Playground®, LLC
• Serves as internal auditor for Bellerose Indoor Playground®, 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 indoor playground facility
• Cleans up after customers and clean work area.
• 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 indoor playground facility center manager.

6. SWOT Analysis

Bellerose Indoor Playground®, LLC is in business to provide indoor playground cum children’s fitness facility for families in St. Louis – Missouri and also help our clients achieve their fitness cum fun – filled activities for their children and at the same time to make profits.

We are aware that there is competition in The Children’s Fitness Center Franchises 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 indoor playground cum children’s fitness facility, we will not have to struggle before attract loyal clients and building our membership base to a level where we can easily breakeven in record time.

We hired the services of Dr. Emmanuel Bright, a HR and Business consultant with bias in business structuring to help us conduct SWOT analysis for our company 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 Bellerose Indoor Playground®, LCC;

One of the apparent strengths that will definitely stand as a plus for Bellerose Indoor Playground®, LCC is the fact that our indoor playground cum children’s fitness center facility is centrally located in a densely populated – residential area in St. Louis – Missouri; our location is in fact one of our major strength.

We equally have a team of highly qualified and experienced professionals who will work with children cum all our clients to achieve their aims making use of our indoor playground facility and lastly our gate fee / membership package is going to be one of the best that anybody living in St. Louis – Missouri can get; it is cheap and affordable.

Before setting up this business, we critically looked into our Business model and we were able to identify two major weakness.

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 indoor playground cum children’s fitness facilities and even government own entertainment and recreation facilities in St. Louis – Missouri when it comes to acquiring latest children entertainment and fitness equipment and also in generating the needed hypes that can drive traffic towards our indoor playground facility.

• Opportunities:

Part of the advantages we have is that, we are centrally located in one of the busiest area and densely populated area with the right demographic composition in St. Louis – Missouri and we are open to all the available opportunities that the city has to offer.

Just like any other business operating in The Children’s Fitness Center Franchises industry, some of the threats that are likely going to confront Bellerose Indoor Playground®, LLC are unfavorable government policies , demographic / social factors, downturn in the economy which is likely going to affect consumers spending and lastly, the emergence of new competitors within the same location where our indoor playground cum children’s fitness center facility is located.

7. MARKET ANALYSIS

• Market Trends

The Children’s Fitness Center Franchises industry is part of the industry that has benefited from recent marketing campaigns which is targeted towards encourage people (children inclusive) to participate in recreation activities and sports, as well as consumer trends toward healthy living.

Going forward, many people who are part of the baby boomers generation are expected to sign up their children for health and fitness club memberships or encourage their children to make use of available indoor playground facilities in their communities. However, patrons of indoor playground cum children’s fitness centers are anticipated to increasingly pick up membership from less expensive facilities as against expensive all-inclusive clubs.

The trend in The Children’s Fitness Center Franchises industry of which the indoor playground facility line of business is a subset of is such that if a facility is well – equipped and positioned in a residential area with the right demographic composition or a place where people can easily access without much stress, there is the likelihood that the indoor playground cum children’s fitness center facility will enjoy high patronage.

Just like in other business ventures, the owners of indoor playground cum children’s fitness center are always looking for ways to increase their market share; they go as far as signing deals with high schools and also religious organizations et al to make use of their facility.

It is a common trend that as indoor playground cum children’s fitness center facility 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 indoor playground cum children’s fitness center facility now has other facilities targeted towards attracting adults / parents. In order words, it is very important for indoor playground and children’s fitness centers to continue to improvise if they want to grow their business and generate their target revenues.

8. Our Target Market

The target market for indoor playground cum children’s fitness center facilities cuts across children and family from different backgrounds. The fact that people visit or register in indoor playground cum children’s fitness center facility for various reasons makes marketing the business interesting.

The target market for indoor playground cum children’s fitness center facility can be categorized into three various groups. The first group are the families who are looking towards creating time for children cum family hangouts and bonding. The other group of people are schools who would want an ideal place to take their students / children to during excursions or playtime et al. The last group of people are religious organizations.

Bellerose Indoor Playground®, LLC will work towards providing services, facilities and environment that will help us reach out to our target market. These are the category of people that we intend marketing our family entertainment center to;

• Households and families with children under the age of 18 in an around St. Louis – Missouri
• Churches and Religious centers

Our Competitive Advantage

The Children’s Fitness Center Franchises industry is indeed a prolific and highly competitive industry. Clients will only make use of your indoor playground and children’s fitness center facility if they know that you can successfully help them achieve their goals or provide the enabling environment and facility for their children to catch maximum fun.

Bellerose Indoor Playground®, LLC is centrally located in a densely populated – residential area with the right demographic composition (that is high population of children under age 18) in St. Louis – Missouri; this is obviously going to give us an edge amongst our competitive.

We equally have a team of highly qualified professionals who will work with children cum all our clients to achieve their aims of making use of our indoor playground cum children’s fitness center facility and lastly our gate fee cum membership package is going to be one of the best that anybody living in St. Louis – Missouri can get; it is cheap and affordable.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category ( startups indoor playground cum children’s fitness center facility businesses in the United States ) 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 achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Bellerose Indoor Playground®, LLC is established with the aim of maximizing profits in the indoor playground line of business cum The Children’s Fitness Center Franchises industry and we are going to go all the way to ensure that we do all it takes to attract both individual clients (families) and corporate clients on a regular basis.

Bellerose Indoor Playground®, LLC will generate income by offering the following services;

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field.

It would be hard to create a sales forecast with a newly opened businesslike indoor playground and children’s fitness center facility. This is simply because the statistics that will be provided will be on a short term basis.

Experts said that usually a business should be in operation for at least one year before they can generate the statistics that will be need to help in accurate forecasting; statistics should be at least one year old in order to show the trends and pattern in consumer spending.

We expect to welcome a minimum of 12,000 children i.e. one thousand children per month within our first year of operations and then in subsequent year we will grow by 25 percent on more.

Below are the sales projection for Bellerose Indoor Playground®, LCC, it is based on the location of our indoor playground and children’s fitness center facility and the services and products that we will be offering to our clients (members);

• First Fiscal Year-: $200,000
• Second Fiscal Year-: $450,000
• Third Fiscal Year-: $750,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major competitor offering same additional services as we do within 4.5 miles radius from our indoor playground and children’s fitness center facility.

• Marketing Strategy and Sales Strategy

We will leverage on improving on our services and indoor playground facility to ensure that we win new clients and retain old members. At Bellerose Indoor Playground®, LLC, our marketing strategies will be consistent throughout the marketing mix and we will take into consideration product improvement, promotion, and price.

As part of our sales and marketing strategies, we will pay attention to the promotion of our indoor playground and children’s fitness center facility so as to attract families and corporate organizations to enroll and become members of our indoor playground and children’s fitness center.

Our unique selling proposition is that we are well positioned and people can easily access our facility, our prices are affordable and we have a complete package for families, schools and religious organizations. Part of the marketing and sales strategies that we will adopt are;

• Open our indoor playground and children’s fitness center facility with a big party for children that resides in and around St. Louis – Missouri
• Advertise Bellerose Indoor Playground®, LLC on national dailies, local TV stations and local radio station
• Promote our indoor playground and children’s fitness center facility online via our official website and all available social media platforms
• Introduce our indoor playground and children’s fitness center facility by sending introductory letters alongside our brochure to religious organizations, schools, corporate organizations, households and key stake holders in St. Louis – Missouri
• 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 members; making our first impression count positively to those making use of our indoor playground and children’s fitness center facility for the first time
• Make use of attractive hand bills to create awareness and also to give direction to our indoor playground and children’s fitness center facility
• Adopt direct mailing coupon marketing approach
• Position our signage / flexi banners at strategic places in and around St. Louis – Missouri
• Create a loyalty plan that will enable us reward our consistent members especially those that registered as a family or groups
• Engage in road shows within our neighborhood to create awareness for our indoor playground and children’s fitness center facility.

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 both corporate clients and individual clients in the whole of St. Louis – Missouri; which is why we have made provisions for effective publicity and advertisement of our indoor playground and children’s fitness center facility.

Below are the platforms we intend to leverage on to promote and advertise Bellerose Indoor Playground®, LCC;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community based sport 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 Bill Boards on strategic locations all around St. Louis – Missouri
• Engage in road show from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas
• Contact Families, corporate organizations and schools by calling them up and informing them of Bellerose Indoor Playground®, LLC and the services we offer
• List Bellerose Indoor Playground®, LLC on local directories / yellow pages
• Advertise our indoor playground and children’s fitness center facility 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 official vehicles are well branded with our corporate logo et al.

12. Our Pricing Strategy

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 as gate fees or membership fee in St. Louis – Missouri.

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 religious organization and schools. The prices of our services will be same as what is obtainable in the United States’ open market.

• Payment Options

At Bellerose Indoor Playground®, LLC our payment policy will be all inclusive because we are quite aware that different clients would prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment via mobile money
• Payment with cash

In view of the above, we have chosen banking platforms that will enable our clients pay us without any difficulty. Our bank account numbers will be made available on our website and promotional materials so that it will be easier for members to pay their membership fees (renew their membership).

13. Startup Expenditure (Budget)

When it comes to setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting an indoor playground and children’s fitness center facility; it might differ in other countries due to the value of their money. However, this is what it would cost us to set up Bellerose Indoor Playground®, LLC in the United of America; This is the key areas where we will spend our start – up capital on;

• 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 $10,000.
• Cost for hiring Business Consultant – $5,000.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
• Cost of accounting software, CRM software and Payroll Software – $3,000
• Cost for leasing facility for the indoor playground and children’s fitness center facility – $250,000.
• Cost for facility remodeling and equipping the facility – $150,000.
• 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) – $100,000
• The cost for Start-up inventory – $15,000
• Cost for acquiring various shapes of bouncy castles, games and children entertainment equipment – $150,000
• The cost for the purchase of furniture and gadgets – $10,000.
• The cost of Launching a Website – $600
• The cost for our grand opening party – $15,000
• Miscellaneous – $15,000

We would need an estimate of $750,000 to successfully launch a standard and well – equipped indoor playground and children’s fitness center facility in St. Louis – Missouri.

It is important to state that the testing and evaluating expenses would be high because of the large amount of equipment needed to start up a bounce house and recreations facility and also the sophistication of the technology used in bouncy castles.

Generating Funding / Startup Capital for Bellerose Indoor Playground®, LLC

Bellerose Indoor Playground®, LLC is a business that will be owned and managed by Mrs. Stacey Jones and her immediate family. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up 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 $250,000 (Personal savings $200,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and document has 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 numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Bellerose Indoor Playground®, LLC is to build a business that will survive off its own cash flow without the need for 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 is to pick up membership in our indoor playground and children’s fitness center facility is to equip our facility with state of the art children fitness and entertainment equipment et al and make our services affordable.

Bellerose Indoor Playground®, 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 successfully hire and 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 indoor facility and remodeling the facility: 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
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed family entertainment, gym and fitness equipment, 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 / launching party planning: In Progress

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Indoor Playground Business Plan Sample

Published Oct.09, 2014

Updated Apr.12, 2024

By: Jakub Babkins

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Table of Content

Indoor Playground Business Plan for Starting Your Own Business

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

Executive Summary

2.1 the business.

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

2.2 Management of Indoor Playground

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

2.3 Customers of Indoor Playground

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

2.4 Business Target

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

Company Summary

3.1 company owner.

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

3.2 Why the indoor playground business is being started

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

3.3 How the indoor playground business will be started

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

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

The costs for of startup are as follows:

The startup requirements are as follows:

Services for Customers

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

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

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

Cannabis business plan 

Marketing analysis of indoor playground business.

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

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

Operational and Strategic Planning

5.1 market trends.

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

5.2 Marketing Segmentation

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

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

5.2.1 Working Class

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

5.2.2 Children of ages 10-14

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

5.2.3 Teens

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

5.3 Business Target

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

The financial targets, however, are as follows:

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

5.4 Product Pricing

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

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

6.1 Competitive Analysis

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

High Quality Business Plan and Professional Support

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

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

6.2 Sales Strategy

To advertise our services, we will:

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

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Our sales are forecasted in the following column charts: The detailed information about the sales forecast is given in the following table:

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

Personnel plan

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

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

7.1 Company Staff

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

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

7.2 Average Salary of Employees

Financial Plan

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

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

8.1 Important Assumptions

8.2 Brake-even Analysis

8.3 Projected Profit and Loss

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 Business Ratios

Download Indoor Playground Business Plan Sample in pdf

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

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Business Plan for Indoor Playground

Welcome to Crafting a Profitable Business Plan for Indoor Playground. If you’re passionate about creating a fun and exciting space for children to play while also building a successful business, then this blog post is for you.

In this comprehensive guide, we will walk you through the essential steps of developing a business plan specifically tailored to your indoor playground venture. From understanding the market demand for indoor playgrounds to conducting market research and analysis, we will cover all the crucial aspects that will contribute to the success of your business.

Section 1: Introduction to Indoor Playgrounds

We will start by providing an overview of what indoor playgrounds are and why they have become increasingly popular in recent years. We will also explore the market demand for indoor playgrounds and highlight the benefits of starting an indoor playground business.

Section 2: Market Research and Analysis

To ensure the success of your indoor playground, it’s essential to conduct thorough market research and analysis. We will guide you through identifying your target market, analyzing competition in your area, and conducting a feasibility study specific to your indoor playground business. Additionally, we will help you identify trends and opportunities in the indoor playground industry that can inform your business strategy.

Section 3: Developing a Business Plan

A well-crafted business plan serves as a roadmap for your indoor playground business. In this section, we will delve into the importance of a business plan and guide you through each element of the plan. From the executive summary and company description to market analysis, organizational structure, and financial projections, we will provide step-by-step instructions to help you create a comprehensive and effective business plan.

Section 4: Funding and Financial Considerations

Starting an indoor playground requires financial planning and securing funding. We will help you estimate start-up costs, identify potential sources of funding, create a financial plan and budget, and explore loan and grant opportunities. Understanding the financial implications of running an indoor playground is crucial for long-term success.

Section 5: Legal and Operational Considerations

Operating an indoor playground comes with various legal and operational considerations. We will guide you through choosing a suitable location, obtaining necessary licenses and permits, designing and setting up your facility, ensuring safety measures, hiring and training staff, establishing policies and procedures, and implementing effective marketing strategies. We will also touch upon maintenance and evaluation practices to ensure the ongoing success and growth of your business.

Conclusion In the concluding section, we will recap the key points covered throughout the blog post and emphasize the importance of a well-structured business plan for a profitable indoor playground venture. By following this ultimate guide, you will be equipped with the knowledge and tools to craft a business plan that sets your indoor playground up for success.

Whether you’re a seasoned entrepreneur or just starting out, this ultimate guide will provide you with valuable insights and practical advice for creating a profitable business plan for your indoor playground. So, let’s dive in and set the foundation for your thriving indoor playground business.

Welcome to the exciting world of indoor playgrounds! In this section, we will provide you with a captivating introduction to the concept of indoor playgrounds, their rising popularity, and the benefits of starting your own indoor playground business.

What is an Indoor Playground?

An indoor playground is a safe and interactive recreational space designed for children to engage in physical activities, explore their creativity, and socialize with other kids. These playgrounds are typically located in enclosed areas and offer a wide range of play equipment, including slides, ball pits, climbing structures, trampolines, and interactive games.

Unlike traditional outdoor playgrounds, indoor playgrounds provide a controlled environment, allowing children to play regardless of weather conditions. They are becoming increasingly popular among parents who seek a convenient and fun space for their children to play, especially in urban areas where outdoor play spaces may be limited.

Why are Indoor Playgrounds Popular?

Indoor playgrounds have gained immense popularity in recent years due to several key factors. Firstly, the rise in dual-income households has led to a growing demand for safe and supervised play spaces where children can engage in physical activities while parents are working. Indoor playgrounds offer a solution to this need by providing a reliable and entertaining environment for children.

Secondly, the increasing emphasis on child development and the importance of active play have contributed to the popularity of indoor playgrounds. These spaces offer a variety of play structures and equipment that promote physical fitness, gross motor skills, and cognitive development in children.

Furthermore, the convenience and versatility of indoor playgrounds make them attractive to parents. With the flexibility of operating hours and the ability to host birthday parties or group events, indoor playgrounds have become a go-to destination for families seeking quality entertainment for their children.

Overview of Market Demand for Indoor Playgrounds

The market demand for indoor playgrounds is substantial, and the industry continues to grow at a steady pace. Rapid urbanization, changing lifestyles, and an increased focus on child-centric activities have fueled this demand. Parents are increasingly seeking out safe and engaging environments for their children, making indoor playgrounds a lucrative business opportunity.

Moreover, the global indoor playground market is expected to witness significant growth in the coming years. According to a report by Grand View Research, the market size is projected to reach USD 48.4 billion by 2027, with a compound annual growth rate (CAGR) of 9.4%. This indicates a promising future for entrepreneurs looking to venture into the indoor playground industry.

Benefits of Starting an Indoor Playground Business

Starting an indoor playground business offers numerous advantages, both from a personal and entrepreneurial perspective. Let’s explore some of the key benefits:

• Fulfilling the need for safe and engaging play spaces: By establishing an indoor playground, you provide a much-needed service to your community, ensuring that children have a secure and stimulating environment to play and learn.
• Opportunity for profitability: The increasing demand for indoor playgrounds presents a profitable business opportunity. With effective planning, marketing strategies, and exceptional customer experiences, you can generate substantial revenue and achieve a healthy return on investment.
• Flexibility in operations: Indoor playgrounds offer flexibility in terms of operating hours, allowing you to cater to different customer segments. Whether it’s after-school hours, weekends, or special events, you have the freedom to adapt your schedule and accommodate the needs of your target market.
• Potential for diversification: Indoor playgrounds often offer additional services such as hosting birthday parties, organizing workshops, or providing childcare facilities. These diversification opportunities can further enhance your revenue streams and attract a broader customer base.
• Opportunity for creativity and innovation: Designing and curating your indoor playground space allows you to unleash your creativity and create a unique experience for children and parents. From selecting play equipment to incorporating themed areas, you have the freedom to bring your vision to life and stand out among competitors.

Starting an indoor playground business is not only financially rewarding but also allows you to make a positive impact on children’s lives. By providing a safe and enjoyable space, you contribute to their physical and cognitive development while fostering a sense of community.

With an understanding of the concept of indoor playgrounds, their popularity, the market demand, and the benefits of starting a business in this industry, it’s time to delve deeper into the essential steps involved in crafting a successful business plan for your indoor playground venture.

Before diving into the intricacies of creating a business plan for your indoor playground, it is crucial to conduct comprehensive market research and analysis. This step will provide you with valuable insights into your target market, competition, and the overall feasibility of your business idea. Let’s explore the key components of market research and analysis for your indoor playground venture.

Identifying the Target Market for Your Indoor Playground

Understanding your target market is fundamental to the success of your indoor playground business. Start by defining the age group and demographics of the children you aim to serve. Consider factors such as the average income level, family size, and interests of your target audience. Additionally, analyze the geographical location of your target market to determine the demand for indoor play spaces in that area.

Conduct surveys and interviews with parents, guardians, and community members to gather insights into their preferences, needs, and expectations regarding indoor playgrounds. This primary research will help you tailor your offerings to meet the specific demands of your target market, ensuring a higher level of customer satisfaction.

Analyzing the Competition in Your Area

To gauge the competitive landscape for your indoor playground, conduct a thorough analysis of existing local competitors. Identify other indoor playgrounds, family entertainment centers, and recreational facilities in your vicinity. Visit these establishments and assess their offerings, pricing, customer experience, and overall popularity.

Analyze the strengths and weaknesses of your competitors to identify potential gaps in the market that you can capitalize on. Look for unique selling points or additional services that you can provide to differentiate your indoor playground from the competition. This analysis will help you develop strategies to position your business effectively in the market and attract your target audience.

Conducting a Feasibility Study for Your Indoor Playground Business

A feasibility study is a crucial step in determining the viability of your indoor playground business. It involves assessing various aspects such as market demand, financial projections, operational requirements, and legal considerations. By conducting a feasibility study, you can identify any potential challenges or constraints and develop strategies to mitigate them.

Evaluate the demand and potential profitability of your indoor playground by analyzing market trends, customer preferences, and industry forecasts. Consider factors such as your target market’s disposable income, population growth, and the overall economic climate of your area.

Assess the financial feasibility of your business by estimating start-up costs, projected revenue, and expenses. This analysis will help you determine the break-even point and the time it will take for your business to become profitable.

Additionally, consider operational requirements such as the size and location of your indoor playground, staffing needs, and safety regulations. Conduct thorough research on legal and licensing requirements in your area to ensure compliance with all necessary regulations.

Identifying Trends and Opportunities in the Indoor Playground Industry

The indoor playground industry is dynamic and constantly evolving. Stay updated on the latest trends, innovations, and emerging opportunities within the industry. Monitor changes in consumer preferences, advancements in play equipment technology, and new educational or interactive play concepts.

By identifying trends and opportunities, you can adapt your business model to cater to evolving customer demands. For example, you might incorporate sensory play areas, STEM-focused activities, or themed play zones to stay ahead of the curve and attract a wider customer base.

Additionally, consider partnerships or collaborations with local businesses or organizations to enhance the value proposition of your indoor playground. For instance, you could team up with a nearby café or a children’s educational center to offer combined packages or cross-promotional opportunities.

Continuously monitoring the market and staying abreast of industry trends will enable you to make informed decisions and position your indoor playground as a leader in the industry.

By conducting comprehensive market research and analysis, you will gain valuable insights into your target market, competition, and the overall feasibility of your indoor playground business. Armed with this knowledge, you can tailor your offerings, develop effective marketing strategies, and position your indoor playground for long-term success.

Developing a comprehensive business plan is critical for the success of your indoor playground venture. A well-crafted business plan serves as a roadmap, guiding your decisions, and ensuring that your business operates smoothly. In this section, we will explore the key components of a business plan for your indoor playground.

Importance of a Well-Crafted Business Plan

A business plan is not just a document; it is a strategic tool that outlines your goals, objectives, and the steps required to achieve them. It provides a clear roadmap for your indoor playground business, helping you stay focused, make informed decisions, and secure funding.

A well-crafted business plan demonstrates your professionalism, commitment, and understanding of the market. It enables you to communicate your vision and strategies to potential investors, lenders, and stakeholders, increasing your chances of securing funding and support.

Executive Summary: Overview of Your Indoor Playground Business

The executive summary is a concise overview of your entire business plan. It provides a snapshot of your indoor playground business, highlighting its unique value proposition, target market, competitive advantage, and financial projections. While it appears at the beginning of your business plan, it is often written last, as it summarizes the key points from each section.

In the executive summary, focus on capturing the reader’s attention and conveying the essence of your indoor playground business. Highlight the market demand for indoor playgrounds, the unique features of your facility, and the benefits it offers to children and their families. Showcase your competitive advantage and emphasize the financial potential of your business.

Company Description: Vision, Mission, and Values

In the company description section, provide an in-depth overview of your indoor playground business. Start by outlining your vision, which describes the long-term goals and aspirations of your business. Next, define your mission statement, which outlines the purpose and core values of your indoor playground. This statement should reflect your commitment to providing a safe, engaging, and enriching play environment for children.

Additionally, outline the core values that guide your business operations. These values may include integrity, customer focus, innovation, or community engagement. Emphasize how these values will be reflected in every aspect of your indoor playground, from the selection of play equipment to the quality of customer service.

Market Analysis: SWOT Analysis, Target Market, and Competition

The market analysis section provides an in-depth assessment of your target market, competitors, and the overall industry. Conduct a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis to identify the internal and external factors that may impact your indoor playground business.

Next, define your target market based on age groups, demographics, and psychographics. Consider factors such as the number of families with children, average household income, and the presence of other recreational facilities in the area. This analysis will help you determine the size of your potential customer base and tailor your offerings to meet their specific needs.

Analyze the competition in your area by identifying existing indoor playgrounds, family entertainment centers, and other recreational facilities. Assess their strengths, weaknesses, pricing strategies, and customer experience. Identify any gaps in the market that you can exploit and highlight your unique selling points that set you apart from the competition.

Organization and Management: Ownership Structure and Key Personnel

In this section, outline the ownership structure of your indoor playground business. Specify whether it is a sole proprietorship, partnership, or corporation. Provide details about the owners, their qualifications, and their roles within the business.

Describe the key personnel who will be responsible for the day-to-day operations of your indoor playground. Include their qualifications, experience, and relevant skills. Highlight the management team’s expertise in areas such as child development, customer service, and business administration. This will instill confidence in potential investors and lenders, showcasing that your business is in capable hands.

Product and Service Offerings: Types of Play Equipment and Additional Services

Describe the products and services that your indoor playground will offer. Provide a detailed overview of the play equipment and amenities that will be available to children. Highlight any unique features or innovative play structures that will set your indoor playground apart from others in the market.

Additionally, consider offering additional services to enhance the customer experience and generate additional revenue. This may include hosting birthday parties, organizing workshops or classes, offering membership packages, or providing a café or snack area for parents. These value-added services can differentiate your indoor playground and attract a broader customer base.

Marketing and Sales Strategy: Branding, Advertising, and Promotional Activities

Developing a robust marketing and sales strategy is crucial for attracting customers to your indoor playground. Outline your branding strategy, including your business name, logo, and overall brand identity. Ensure that your brand reflects the fun, safe, and engaging atmosphere that your indoor playground offers.

Identify the target audience segments that you will focus on and outline the marketing channels you will use to reach them. This may include a combination of online marketing (website, social media, email marketing), local advertising (print media, billboards, radio), and community partnerships.

Detail your pricing strategy, highlighting the value for money that your indoor playground offers. Consider offering different pricing tiers for various services or membership options to encourage repeat business.

Finally, outline your promotional activities, such as hosting special events, partnering with local schools or community organizations, or offering discounts during off-peak hours. These initiatives will help create awareness, attract customers, and build a loyal customer base.

Operational Plan: Location, Facilities, Safety Measures, and Staffing

The operational plan section outlines the practical aspects of running your indoor playground business. Start by detailing the location of your facility and the rationale behind your choice. Consider factors such as accessibility, visibility, parking, and proximity to residential areas or schools.

Describe the layout and design of your indoor playground, highlighting the different play areas and amenities available. Emphasize the safety measures you will implement, such as well-maintained equipment, regular inspections, and trained staff members.

Discuss the staffing requirements for your indoor playground, including the number of employees, their roles, and qualifications. Consider hiring staff members who have experience in childcare, customer service, and first aid training.

Financial Projections: Start-up Costs, Revenue Forecast, and Profitability Analysis

The financial projections section provides an overview of the financial aspects of your indoor playground business. Begin by outlining the start-up costs, including expenses such as lease or purchase of the facility, play equipment, furniture, renovations, licenses, permits, marketing campaigns, and initial inventory.

Develop realistic revenue forecasts based on your target market, pricing strategy, and projected customer volume. Consider different revenue streams, such as daily admissions, party bookings, and additional services, to estimate your income.

Conduct a profitability analysis by projecting your expenses, including rent, utilities, insurance, staff salaries, maintenance costs, and marketing expenses. Calculate your gross profit margin and net profit margin to assess the financial viability of your indoor playground business.

Risk Assessment and Contingency Plan

Every business faces risks, and it is important to identify and address them in your business plan. Conduct a risk assessment to identify potential threats to your indoor playground business. This may include factors such as changes in regulations, economic downturns, or unexpected competition.

Develop a contingency plan to mitigate these risks. Outline alternative strategies and action plans that you can implement if certain risks materialize. This demonstrates your preparedness and ability to adapt to unforeseen circumstances, adding credibility to your business plan.

By developing a comprehensive business plan that covers all the key components mentioned above, you will have a clear roadmap for the success of your indoor playground business. A well-structured plan will not only guide your decision-making process but also increase your chances of securing funding and support from investors and lenders.

Securing funding and managing your finances effectively are crucial aspects of starting and running a successful indoor playground business. In this section, we will explore the various funding options available to you, discuss financial considerations, and guide you in creating a solid financial plan for your venture.

Estimating Start-up Costs for an Indoor Playground

Before you can launch your indoor playground, it’s essential to determine the start-up costs involved. Start-up costs can vary depending on factors such as the size of your facility, the quality and quantity of play equipment, renovation expenses, licensing and permit fees, marketing expenses, and initial inventory.

Make a comprehensive list of all the necessary expenses and conduct thorough research to determine realistic estimates for each item. Take into account both one-time expenses and recurring costs, such as rent, utilities, insurance, and employee salaries. By accurately estimating your start-up costs, you can plan your finances and seek appropriate funding.

Identifying Potential Sources of Funding

Once you have determined your start-up costs, you need to explore potential funding sources for your indoor playground business. Here are some common options to consider:

• Personal Savings: Utilize your personal savings or assets to finance the initial investment. This allows you to retain complete ownership and control over your business.
• Friends and Family: Approach friends and family members who may be interested in investing in your indoor playground venture. Present them with a solid business plan and clearly outline the potential returns on their investment.
• Bank Loans: Approach banks or financial institutions for a small business loan. Prepare a detailed business plan, financial projections, and collateral (if required) to increase your chances of securing a loan.
• Government Grants and Programs: Research government grants and programs that support small businesses or youth-focused initiatives. These grants can provide financial assistance and additional resources.
• Investors: Consider seeking investment from angel investors or venture capitalists who are interested in supporting start-up businesses. Present a compelling business plan and demonstrate the potential for growth and profitability.
• Crowdfunding: Explore crowdfunding platforms to raise funds for your indoor playground. Craft a compelling campaign that appeals to individuals who are passionate about children’s play and development.

Remember, each funding source has its own requirements, terms, and conditions. Evaluate the pros and cons of each option and choose the one that aligns best with your business goals and financial needs.

Creating a Financial Plan and Budget for Your Indoor Playground Business

A financial plan and budget are essential tools for managing the financial aspects of your indoor playground business. Start by creating a sales forecast based on your market research and estimated pricing. Project your revenue for the first year, taking into account factors such as customer volume, average spending per visit, and additional services.

Next, create an expense budget that includes both fixed and variable costs. Fixed costs include rent, utilities, insurance, and salaries, while variable costs encompass expenses such as marketing, maintenance, and inventory. Be realistic and conservative when estimating your expenses to avoid any financial strain.

Analyze your projected revenue and expenses to calculate your break-even point. This will help you understand how many customers or sales you need to cover your costs and start generating a profit. Additionally, develop financial performance indicators, such as gross profit margin and net profit margin, to track your business’s financial health and measure its success.

Securing Loans and Grants for Your Indoor Playground Venture

If you decide to pursue loans or grants for your indoor playground business, it’s crucial to prepare a strong application. Start by creating a well-structured business plan that outlines your vision, market analysis, marketing strategies, and financial projections. Clearly demonstrate the potential for profitability and the positive impact your indoor playground will have on the community.

When approaching banks or financial institutions for a loan, be prepared to provide detailed financial statements, collateral (if required), and a solid repayment plan. Show that you have thoroughly researched the market, identified your target audience, and have a well-thought-out marketing and operational strategy.

For government grants or programs, carefully review the eligibility criteria and application requirements. Tailor your application to highlight how your indoor playground aligns with the objectives of the grant or program. Clearly articulate the benefits and outcomes that the funding will facilitate.

Understanding the Financial Implications of Running an Indoor Playground

Running an indoor playground comes with various financial implications that you need to consider. Expenses such as rent, utilities, insurance, maintenance, and staffing costs will be ongoing. It’s essential to monitor and manage your cash flow effectively to ensure that you can cover these expenses while maintaining profitability.

Implementing robust financial management practices, such as regular financial analysis, budget monitoring, and cost control measures, will help you stay on top of your finances. Consider investing in accounting software or seeking professional advice to streamline financial processes and ensure accurate record-keeping.

Additionally, understand the seasonality and cyclical nature of the indoor playground industry. Certain periods, such as school holidays or weekends, may experience higher customer volumes, while others may be slower. Plan your marketing and operational strategies accordingly to maximize revenue during peak periods and minimize costs during slower periods.

By carefully estimating start-up costs, exploring funding options, creating a solid financial plan and budget, and understanding the financial implications of running an indoor playground, you will be well-prepared to manage your finances effectively and secure the necessary funding for your business’s success.

Running an indoor playground involves various legal and operational considerations to ensure the safety of children, comply with regulations, and provide a positive experience for your customers. In this section, we will explore the key aspects you need to address when it comes to location, licensing, safety measures, staffing, policies, and marketing.

Choosing a Suitable Location for Your Indoor Playground

Selecting the right location for your indoor playground is crucial for its success. Consider factors such as visibility, accessibility, parking availability, and proximity to residential areas or schools. A convenient and easily accessible location will attract more customers and increase foot traffic to your facility.

Evaluate the size and layout of potential locations to ensure they can accommodate the play equipment, seating areas, and additional amenities you plan to offer. Consider the potential for expansion, as your business may grow and require additional space in the future.

Additionally, research local zoning regulations and lease agreements to ensure that the chosen location is suitable for operating an indoor playground. Check if there are any restrictions or special permits required for recreational businesses in that area.

Obtaining Necessary Licenses, Permits, and Insurance

Before opening your indoor playground, you must obtain the necessary licenses and permits required by local and state authorities. These may include health and safety permits, fire department approvals, and amusement permits. Contact your local government offices to understand the specific requirements and application processes.

Ensure that you have liability insurance coverage to protect your business from potential accidents or injuries that may occur on your premises. Consult with an insurance professional to determine the appropriate coverage for your indoor playground.

By complying with all licensing, permitting, and insurance requirements, you demonstrate your commitment to safety and legal compliance, building trust with your customers and the community.

Designing and Setting Up Your Indoor Playground Facility

The design and layout of your indoor playground play a significant role in creating an engaging and safe environment for children. Consider the age range of your target audience and design separate play areas catering to different age groups and interests. Incorporate a variety of play equipment, such as slides, climbing structures, ball pits, and interactive games, to ensure a diverse and stimulating experience.

Pay attention to the flow of the space, ensuring that it allows for easy supervision and movement. Create designated seating areas for parents or guardians to relax and observe their children while ensuring clear lines of sight.

Implement a theme or cohesive design throughout your indoor playground to create a memorable and immersive experience for children. Consider incorporating colors, murals, or themed play zones that align with your brand and appeal to your target audience.

Ensuring Safety and Security Measures for Children

Safety is paramount in an indoor playground environment. Implement comprehensive safety measures to protect children and provide peace of mind to parents. Conduct regular inspections of play equipment to identify any maintenance or safety concerns. Develop a maintenance schedule to ensure that equipment remains in good condition and complies with safety standards.

Install appropriate safety features, such as padded flooring, safety nets, and handrails, to minimize the risk of accidents and injuries. Clearly display safety rules and guidelines throughout the facility, and provide trained staff members who can enforce these rules and respond to any emergencies.

Establish protocols for emergency situations, including fire drills and first aid procedures. Ensure that your staff members are trained in CPR and first aid, and have clear communication channels in place to handle emergencies effectively.

Hiring and Training Staff for Your Indoor Playground

Your staff members play a crucial role in providing a positive experience for your customers. When hiring staff for your indoor playground, look for individuals who are passionate about working with children, have excellent communication and interpersonal skills, and are committed to ensuring a safe and enjoyable environment.

Develop comprehensive training programs to educate your staff members on safety protocols, customer service standards, and emergency procedures. Provide ongoing training and professional development opportunities to ensure that your staff members stay up-to-date with the latest trends and best practices in the industry.

Establishing Policies and Procedures for Your Indoor Playground

Establishing clear policies and procedures is essential for the smooth operation of your indoor playground. Develop guidelines for customer behavior, including rules for appropriate conduct, dress code requirements, and supervision policies. Communicate these policies to customers through signage, your website, and social media channels.

Create policies for booking parties or group events, including reservation procedures, cancellation policies, and pricing structures. Clearly communicate these policies to customers and ensure that your staff members are trained to handle party bookings effectively.

Implement effective communication systems to keep customers informed about any changes in operating hours, special events, or promotions. Utilize various channels, such as your website, social media platforms, email newsletters, and signage within the facility, to maintain open lines of communication with your customers.

Implementing Marketing and Promotional Strategies

Marketing is essential for attracting customers to your indoor playground. Develop a comprehensive marketing strategy that includes online and offline channels to reach your target audience effectively.

Build a strong online presence through a professionally designed website that showcases your indoor playground’s features, services, and unique selling points. Utilize search engine optimization (SEO) techniques to improve your website’s visibility in search engine results. Engage with your target audience through social media platforms, sharing engaging content, and promoting special offers or events.

Consider partnerships with local schools, community organizations, or parenting blogs to reach a wider audience. Offer special discounts or promotions for first-time visitors or group bookings to encourage trial and generate word-of-mouth referrals.

Collect customer feedback and reviews to build credibility and improve your services. Encourage customers to leave reviews on your website, social media platforms, or review websites.

By addressing the legal and operational considerations outlined in this section, you will create a safe, well-designed indoor playground that provides an enjoyable experience for children while adhering to all necessary regulations. Additionally, implementing effective marketing strategies will help you attract and retain customers, ensuring the long-term success of your business.

Section 6: Evaluation and Growth of Your Indoor Playground Business

Once your indoor playground business is up and running, it’s important to continuously evaluate its performance and identify opportunities for growth. In this section, we will explore the key aspects of evaluating the success of your business and strategies for achieving long-term growth.

Monitoring Key Performance Indicators

Monitoring key performance indicators (KPIs) is essential for assessing the success of your indoor playground business. Some important KPIs to track include:

• Customer Satisfaction: Regularly gather feedback from customers to gauge their satisfaction with your indoor playground. This can be done through surveys, comment cards, or online reviews. Pay attention to areas of improvement and take necessary actions to enhance customer experience.
• Attendance and Customer Volume: Monitor the number of visitors to your indoor playground on a daily, weekly, and monthly basis. Identify patterns and trends to understand peak and off-peak periods. This information can help you optimize staffing levels and adjust marketing efforts to attract more customers during slower periods.
• Revenue and Profitability: Keep a close eye on your financial performance. Monitor revenue, expenses, and profitability on a regular basis. Compare your actual financial results to the projections outlined in your business plan. Identify any discrepancies and take corrective actions if necessary.
• Repeat Business and Customer Loyalty: Assess the rate of repeat business and customer loyalty. Encourage customer loyalty through loyalty programs, membership options, or special offers for returning customers. Building a loyal customer base is crucial for the long-term success and sustainability of your business.

Growth Strategies for Your Indoor Playground Business

To achieve long-term growth, consider implementing the following strategies:

• Expand Target Market: Identify potential customer segments that are not currently being targeted and develop strategies to attract them. This could include partnering with schools, daycares, or community organizations to offer exclusive programs or discounts.
• Introduce New Services or Programs: Continuously innovate and introduce new services or programs to keep your indoor playground fresh and exciting. Consider adding themed events, educational workshops, or specialized play sessions to attract new customers and retain existing ones.
• Enhance Marketing Efforts: Regularly review and update your marketing strategy to ensure that it remains effective. Stay active on social media, engage with your audience, and explore new marketing channels. Collaborate with local businesses or influencers to extend your reach and attract new customers.
• Invest in Staff Training and Development: Continuously invest in training and development programs for your staff. This ensures that they stay updated with the latest trends in play and child development, and are equipped to provide exceptional customer service. Well-trained and motivated staff members contribute to a positive customer experience and increased customer loyalty.
• Maintain and Upgrade Play Equipment: Regularly inspect and maintain your play equipment to ensure it remains in top condition. Consider upgrading or adding new play structures to keep up with industry trends and customer demands. Offering a variety of play options will attract new customers and encourage repeat visits.
• Community Engagement: Develop strong ties with the local community by participating in community events, supporting local charities, or organizing special events for the community. This helps to build brand awareness, enhance your reputation, and foster a sense of community around your indoor playground.

Continued Evaluation and Adaptation

The evaluation and growth process for your indoor playground business should be ongoing. Regularly review the performance of your business, analyze customer feedback, and make necessary adjustments to your strategies. Stay updated on industry trends, attend conferences or trade shows, and network with other professionals in the field to gather new insights and ideas.

Adaptability is key to long-term success. Continuously assess the needs and preferences of your target market and be prepared to make changes to your offerings or operations to meet those needs. Flexibility and a willingness to adapt to changing circumstances will position your indoor playground for sustained growth.

By monitoring key performance indicators, implementing growth strategies, and embracing a culture of continuous evaluation and adaptation, you can ensure the long-term success and growth of your indoor playground business.

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

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

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

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

1. Market analysis: Understanding your playground's landscape

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

Actionable steps:

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

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

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

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

Read this next: 5 Captivating Indoor Playground Design Ideas

3. Target audience: Tailoring experiences to families

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

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

4. Business structure: Building a solid foundation

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

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

5. Financial projections: Charting the path to profitability

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

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

6. Safety and compliance: Ensuring a secure environment

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

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

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

7. Marketing and promotion: Generating buzz and footfall

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

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

8. Technology integration: Streamlining operations and enhancing experience

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

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

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

9. Customer feedback and improvement: A continuous loop

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

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

10. Partnership and expansion strategies: Scaling the success

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

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

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

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

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Ultimate Guide To Creating An Indoor Playground Business Plan

Starting an indoor playground business can be a lucrative venture, especially when you consider that the indoor entertainment market is estimated to reach $8.4 billion by 2025. With parents seeking safe and engaging environments for their children, the demand is higher than ever. But how do you turn this opportunity into a successful business?

Creating a winning business plan is essential. It provides a roadmap that outlines your vision, financial forecasts, and operational strategies. Interestingly, businesses with structured plans are approximately 30% more likely to grow. An indoor playground business plan should incorporate thorough market analysis and an innovative approach to capturing your target audience’s attention.

Understanding the Indoor Playground Market

The indoor playground market is growing rapidly. Parents are looking for safe and enjoyable places for their kids. This growth presents a unique opportunity for entrepreneurs.

Key Market Trends

One significant trend is the rise in themed playgrounds. Themes like space, jungle, and under the sea are popular. They attract more visitors and keep kids engaged.

Another trend is the use of technology. Interactive games and virtual reality experiences are becoming common. These features make indoor playgrounds more appealing to tech-savvy families.

Lastly, there’s a strong focus on safety and cleanliness. Playgrounds that strictly follow safety standards and cleanliness protocols gain more trust from parents. This can be a deciding factor for many families.

Understanding Your Target Audience

Knowing your target audience is crucial. Most indoor playgrounds cater to children aged 2 to 12. However, it’s also essential to consider the parents who visit.

Parents often look for places that offer a mix of fun and education. Playgrounds that include educational elements like puzzles and learning games are more attractive. They provide a balanced experience for both kids and parents.

Additionally, offering amenities like comfortable seating areas and healthy snack options can enhance the experience for parents. This helps in building a loyal customer base.

Competitive Analysis

Studying your competitors can provide valuable insights. Look at successful indoor playgrounds in your area. Identify what they’re doing well.

Consider the services they offer, their pricing , and customer reviews. This information can help you identify gaps in the market. Use these insights to improve your own business plan.

Lastly, think about unique features that can set your indoor playground apart. Whether it’s a unique theme, high-tech games, or exceptional customer service, differentiation is key.

The Elements of a Successful Indoor Playground Business Plan

Creating a solid business plan is key to opening a successful indoor playground. This plan will serve as your roadmap. It helps turn your vision into reality.

Defining Your Business Objectives

First, you need to set clear business objectives. These goals will guide every part of your plan. Ensure they are specific and measurable.

Ask yourself questions like, “What do I want to achieve in the first year?” and “How many visitors do I aim to attract monthly?” Your answers will help shape your strategy. This step is crucial for long-term success.

Additionally, write down your mission and vision. These elements reflect your business’s core values. They keep you focused on your ultimate goals.

Conducting Market Analysis

A thorough market analysis helps you understand the industry. Look at current trends and your competition. Identify what they do well and where you can improve.

Create a SWOT analysis to examine your strengths, weaknesses, opportunities, and threats. This will help you find your unique selling points. Use this information to carve out a niche in the market.

Also, know your target audience in detail. Their preferences and behaviors will influence your decisions. A well-researched market analysis guides your marketing and operational strategies.

Financial Planning and Projections

Your business plan must include detailed financial projections. Estimate initial costs, monthly expenses, and potential revenues. List these elements clearly.

• Startup costs
• Ongoing expenses
• Revenue streams

Creating a budget helps you manage funds effectively. Track your spending to stay on top of financial health. Having a solid financial plan makes it easier to secure funding from investors.

Finally, set aside a contingency fund. Unexpected costs are common in any business. Being prepared ensures stability during tough times.

Developing Your Indoor Playground’s Mission and Vision

Your mission and vision statements are the heart of your indoor playground. They define your core values and long-term goals. These statements guide your business decisions and strategies.

Creating a mission statement involves stating what your business aims to achieve daily. It should be clear and concise. For example, “To provide a safe and fun environment for kids to play and learn.”

Your vision statement, on the other hand, focuses on the future. Describe what you want your playground to become in the years to come. This helps align your team and keeps everyone focused on the bigger picture.

• Define core values
• Set long-term objectives
• Align with business goals

The Importance of a Solid Financial Plan

A solid financial plan is crucial for your indoor playground’s success. It helps you manage your funds efficiently. This plan also provides a clear picture of your financial health.

Creating a budget is a key component. List all your expected expenses and revenues. This helps ensure you don’t overspend.

• Initial setup costs
• Monthly operational costs
• Projected income

Financial projections are also essential. Estimate your income and expenses for the next few years. This assists in planning for growth.

Don’t forget the importance of a contingency fund. Unexpected costs can arise at any time. Having extra funds set aside keeps your business stable.

Monitoring your cash flow regularly is important. Track money coming in and going out. This helps you make informed financial decisions.

Consider seeking advice from financial experts. They can offer valuable insights. Their guidance can help you avoid common financial pitfalls.

Creating a Robust Operational Strategy

A strong operational strategy is vital for running an effective indoor playground. It ensures that all aspects of your business run smoothly. This includes everything from hiring staff to maintaining equipment.

Start by defining critical operations . Identify the key activities needed to keep your playground functional. This might involve scheduling regular maintenance checks or managing inventory for snacks and supplies.

Hiring the right people is also crucial. Your staff will be the face of your business. Make sure they are well-trained and friendly.

• Front desk attendants
• Play supervisors
• Maintenance staff

Location is another key factor. Choose a spot that’s easy for parents and kids to get to. Consider nearby amenities like parking and public transportation.

Safety and compliance are non-negotiable. Your playground must adhere to local regulations. Regular inspections and staff training can help maintain high safety standards.

Customer service should be a priority. Happy customers are likely to return and recommend your playground to others. Implement feedback systems to continually improve the visitor experience.

Marketing Your Indoor Playground Business

Effective marketing is essential to attract visitors to your indoor playground. Begin with a strong online presence. Utilize social media to reach a broad audience.

Creating a user-friendly website is also important. Make sure it’s mobile-friendly and easy to navigate. Include details like location, operating hours, and pricing.

Engage with your local community to build relationships. Partner with nearby schools and community centers to spread the word. Host events that draw in families and create buzz.

• Mom-and-tot mornings
• Birthday party packages
• Seasonal festivals

Word-of-mouth is powerful. Encourage satisfied customers to leave reviews on popular platforms like Google and Yelp. Positive reviews enhance your reputation and attract more visitors.

Consider loyalty programs to retain customers. Offer incentives like discounts or free entry after several visits. This approach can turn one-time visitors into regular patrons.

Frequently Asked Questions

If you’re considering opening an indoor playground, you probably have many questions. Here are some common queries answered to help guide you in your journey.

1. How much capital do I need to start an indoor playground?

The capital needed can vary based on location and the size of your playground. Generally, it can range from $100,000 to $500,000. This estimate includes rent, equipment, staff wages, and initial marketing costs.

You might also need additional funds for unexpected expenses or upgrades. It’s essential to have a clear budget plan and perhaps consult with financial advisors to secure funding efficiently.

2. What types of equipment should I invest in for an indoor playground?

Your equipment choice depends on the age group you want to target. Common items include slides, climbing walls, ball pits, and interactive games. Safety-certified materials are crucial for preventing injuries.

Also, consider investing in sensory play equipment which appeals to children with different needs. Regularly updating your equipment will keep the environment fresh and engaging for kids and their parents.

3. How do I ensure my indoor playground is safe?

Safety should be a top priority when running an indoor playground. Follow local guidelines and regulations strictly to maintain high safety standards. Conduct regular inspections of all play areas and equipment.

Train your staff adequately in first aid and emergency procedures. Clear signage for safety rules can also help educate visitors about proper behavior within your facility.

4. What marketing strategies work best for promoting an indoor playground?

A multifaceted approach works best for marketing an indoor playground. Utilize social media platforms like Facebook and Instagram to share engaging content and promotions.

You could also collaborate with local schools or community centers to host events that attract families. Offering loyalty programs or discounted memberships can encourage repeat visits from satisfied customers.

5. Can I host special events at my indoor playground?

Absolutely! Hosting special events can significantly boost your business by attracting new visitors and adding value for regulars. Birthday parties are especially popular options that can generate substantial revenue.

You could also consider themed nights or educational workshops tailored for kids of different ages. Special events provide a unique experience beyond everyday play sessions, creating memorable moments that encourage word-of-mouth advertising.

Creating an indoor playground business plan is a comprehensive process that demands attention to detail and careful planning. By understanding the market, defining clear business objectives, and ensuring strong financial and operational strategies, you can lay a solid foundation for success.

Marketing your playground effectively and always prioritizing safety will further enhance your business’s appeal. With a detailed plan in place, you’ll be well-equipped to create a thriving, engaging space for children and their families.

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Indoor Playground Business Plan Template [Updated 2024]

Indoor Playground Business Plan

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

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

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

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

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

• Beginners Guide , Indoors Playground

How To Start An Indoor Playground Business In 11 Steps

Written by ownplayground team.

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

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

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

Find Your Niche

There are different versions of indoor playgrounds .  

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

Others include additional attractions, such as: 

• Video games 
• Skee ball 
• Other competitive features

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

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

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

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

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

Investigate the Competition

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Create Hype

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

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

Simple steps, like: 

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

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

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

Select the Right Equipment

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

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

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

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

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

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

Understand the True Cost

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

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

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

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

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

Understand Safety Guidelines and Licensing

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

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

This is also a great time to start: 

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

Invest in Strategic Marketing

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

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

Find that , and marketing is a cinch!

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

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

Another big parental complaint about indoor playgrounds is the noise! 

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

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

Next, the level of cleanliness. 

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

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

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

Hire Talented People

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

• Love working with children
• Be outgoing

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

Think about every area of the business that requires staffing: 

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

Additional staff to: 

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

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

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

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

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

Use Social Media for Promotion

Social media is an incredible tool. 

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

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

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

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

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

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

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

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

Age Range of Targeted Customers

• Type of Activities Offered 
• Liability rates by location

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

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

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

Taxes and rental rates vary widely depending on locations. 

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

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

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

Size of the Total Space

The size of an indoor playground can vary dramatically. 

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

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

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

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

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

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

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

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

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

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

Types of Services Offered

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

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

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

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

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

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

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

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

Liability Insurance Costs

This is another tricky area.  

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

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

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

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

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

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

What About an Indoor Playground Franchise?

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

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

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

Benefits of a Franchise

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

Market Research

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

• Discounts on Equipment and food/beverages

Territorial Protection

Advertising.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

What Playground Business Will You Start?

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

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

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

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• Indoor Playground Business Plan

Indoor Playground

BUSINESS PLAN

KID'S WORLD

5568 Inkster Rd. Livonia, MI 48150

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

EXECUTIVE SUMMARY

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

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

Proposed Business

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

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

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

Loan Request

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

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

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

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

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

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

The Customer Need and the Target Customer

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

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

Product Description

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

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

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

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

Strategy and Approach to the Market

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

Advertising

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

Location Characteristics

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

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

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

Unique Market Characteristics

Weekly usage patterns.

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

Seasonality

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

Threat of a Fad Product

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

Safety/Liability Concerns

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

Nature of Competition

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

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

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

Competitive Advantage

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

Analysis of Competitors

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

Captain Sam's

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

Surprise Land

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

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

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

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

Jungle Play

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

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

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

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

Admissions/Games

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

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

Birthday Party Packages

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

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

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

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

Gift Shop/Souvenirs

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

Break-Even Analysis

Projected fixed costs for an average month include the following:

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

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

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

Hours of Operation

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

Sources of Inputs

Description of Cost Items

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

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

Leasehold Improvements

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

Fixtures and Equipment

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

Depreciable Total and Method

The depreciable costs listed above are summarized as follows:

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

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

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

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

Working Capital

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

Business Organization

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

Staffing Plan

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

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

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

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

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

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

Projected Revenue Buildup

Projected Revenues by Source

Projected Start-up Costs

Projected Salary and Wage Expense

Management Fee Schedule

Projected Capital Contributions by Source

Proforma Income Statement - Year 1

Proforma Balance Sheet - Year 1

Proforma Statement of Cash Flows - Year 1

Proforma Income Statement - Year 2

Proforma Balance Sheet - Year 2