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FEB.26, 2021

Amusement Park Business Plan Sample

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Article Business Plan Templates Entertainment & Recreation Business Plans

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Amusement Park Business Plan for Starting Your Own Theme Park

Do you want to build an amusement park? Well, amusement park is a large facility that contain gardens, play areas, amusement rides, games and other entertainments. The amusement park business can be extremely profitable and enjoyable to run. If you possess the ability to manage the park activities and maintain the technical structure, you must not delay planning about opening it.

Like all other businesses, the first step would be to create a detailed business plan. Before launching your business, you’ll have to develop accurate amusement park marketing plan, personnel plan and financial plan.

In this guide on how to start a theme park business we’re providing business plan of Holiday Ventures. Through this, you can know the important details that must be included while making business plan for your startup.

Amusement Park Business Plan Summary

2.1 The Business

Holiday Ventures will be a registered and licensed family amusement park based in Charlotte. The business will provide amusement rides, slides, magic shows, themed events, games, picnic areas, and entertainment for people of all ages.

Under the supervision of experienced managers and with the collaboration of responsible employees, the business will provide people with unforgettable joyful experience.

2.2 Management of Amusement Park

Managing an amusement park requires is not so easy. You will need highly responsible personnel who have the required technical skills, and efficient supervisors who would adhere to your business values. To ensure a structured and organized management, you must first make a theme park business model.

To manage your finances, you should also analyze how much does it cost to run an amusement park in your business model. If you don’t have a clear idea of startup costs, you should explore some amusement park business plan examples like this one to get an analogous idea of your finances.

2.3 Customers of Theme Park

The customers of a theme park can be categorized in the following groups:

  • Children
  • Teenagers
  • Youngsters & Adults
  • Senior Citizens
  • Tourists

2.4 Business Target

The business target of Holiday Ventures is to establish a name in amusement park business domain. The startup aims to include more activities and entertainment opportunities by the end of first five years. Financially, the company’s profitability targets can be seen from the following graph.

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Company Summary

3.1 Company Owner

Holiday Ventures will be owned by Adam Redford. Adam completed his MBA from Harvard University and proceeded to work in notable institutes as senior manager. After serving as an operation manager in Herschend Family Entertainment for seven years, Adam has decided to launch his own business.

3.2 Why the amusement park business is being started

Adam always wanted to start his own business. Due to his inclination towards recreation and entertainment industry, he decided to build a theme park. He had several ideas to bring innovation in amusement parks. As without innovation it would be very difficult to earn fame in a field so saturated.

3.3 How the amusement park business will be started

Step1: Create amusement park business plan template

The first step is to explore how to create an amusement park. After detailed research, you would have to prepare an accurate business plan for your startup. Ideally, the business plan must contain accurate resources, expenses, management system, and financial projections of your business.

Step2: Risk Analysis

Before launching your startup, you must carry out a detailed marketing and risk analysis. Your critical risks problems and assumptions business plan amusement park must study

  • Positive and negative risks involved in starting this business.
  • Proper strategies to avoid, deflect, or resolve risks.

The risks may range from unexpected injuries, mechanical hazards, technical issues, financial ups and downs, and more.

Step3: Define the Brand/ Establish Physical Presence

After planning all the aspects of your business you should start establishing a physical presence. It is the time when you acquire licenses and registrations – while also hiring staff for running your business. Procuring the inventory and installation of rides, games, and other entertainment staff must also be started side-by side.

Step4: Web & Social Media Presence

Through using online tools, you can run cost-effective campaigns to let your target customers know about you. Moreover, establishing online presence can help you in managing large scale operations such as ticketing systems etc. in a much efficient way.

Step5: Promote and market

Lastly, you have to start executing your advertisement and sales strategy to gain more and more customers.

Amusement Park Business Plan - Startup Cost

Start-up Expenses  
Legal $254,000
Consultants $0
Insurance $35,000
Rent $40,000
Research and Development $28,900
Expensed Equipment $70,000
Signs $4,000
TOTAL START-UP EXPENSES $431,900
Start-up Assets $390,000
Cash Required $410,000
Start-up Inventory $70,000
Other Current Assets $320,000
Long-term Assets $305,000
TOTAL ASSETS $1,495,000
Total Requirements $1,926,900
START-UP FUNDING
Start-up Expenses to Fund $431,900
Start-up Assets to Fund $1,495,000
TOTAL FUNDING REQUIRED $1,926,900
Assets
Non-cash Assets from Start-up $1,955,000
Cash Requirements from Start-up $360,000
Additional Cash Raised $69,000
Cash Balance on Starting Date $34,000
TOTAL ASSETS $2,418,000
Liabilities and Capital
Liabilities $31,000
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $40,000
Other Current Liabilities (interest-free) $0
TOTAL LIABILITIES $71,000
Capital
Planned Investment $1,926,900
Investor 1 $0
Investor 2 $0
Other $0
Additional Investment Requirement $0
TOTAL PLANNED INVESTMENT $1,926,900
Loss at Start-up (Start-up Expenses) $420,100
TOTAL CAPITAL $2,347,000
TOTAL CAPITAL AND LIABILITIES $2,418,000
Total Funding $1,926,900

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Services of Amusement Park

Amusement parks may contain many types of entertainment and services. Since it takes a lot of planning and management in organizing each activity, you must decide your offerings as early as possible. Before you make an amusement park business plan, you should decide the services you want to provide.

In this amusement park project report sample we’re listing the services of Holiday Ventures. So that you can get an idea of what type of entertainment is in demand these days.

Amusement Rides & Fun Game Challenges

At us our customers will find a huge variety of amusement rides and games. Our major offerings in amusement rides and family fun activities will include:

  • Roller Coaster Ride
  • Train Rides
  • Pendulum Ride
  • Swing Ride
  • Frisbee Ride
  • Pirate Ship Ride
  • Drop Tower Ride
  • Amusement Slides

Our fun game challenges will include:

  • Skipping Stones
  • Ball Cupping
  • Bridge Ball
  • Bridge the gap
  • High Rollers
  • Mud Skipping
  • Ride the Wave
  • Slippery Wall Climbing
  • Tug of War

Gardens & Picnic Services

For families who would want to arrange reunion and picnics, we’ll offer immersive and natural garden areas. We’ll also facilitate them by arranging peaceful and recreational outdoor space for them.

Themed Events, Shows & Nights

We’ll also organize themed shows, magic shows and musical nights. Through our website and social media accounts, we’ll keep our customers’ updated about the incoming activities.

High Quality Food

To provide our visitors with one-in-all recreation, we’ll offer high quality local food and some international cuisines.

Marketing Analysis of Amusement Parks Business

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After having an in-depth knowledge of how to start amusement park you must start doing marketing analysis. Marketing analysis studies the current and forecasted market stats to analyze whether a business can succeed in a marketplace or not.

Moreover, this analysis explores the interest and expectations of potential customers. Knowing your customers will help you in predicting their buying trends and estimating monthly and yearly sales. Through a rough idea of expected, optimistic and pessimistic sales, you can define amusement park feasibility study pdf. Overall, the information will help you in setting pricing policies that can enable to earn profit while also drawing more and more people to your site.

In this business plan small amusement park we’re providing the marketing analysis done for Holiday Ventures. It is recommended to do marketing analysis according to your specific location, if you are starting this business. The stats will also be different in case you’re looking for indoor amusement park business plan.

5.1 Market Trends

Hundreds of amusement park businesses are running in the United States. However, only a few of them are well-known and profitable. According to IBISWorld, amusement parks all over the U.S. collectively holds a market size of $13 billion. The business is expected to grow and earn more annual revenue in the coming years. This growth and profitability is forecasted on the basis of newer trends that business owners are incorporating in their amusement parks.

5.2 Marketing Segmentation

Our potential customers are divided into the following groups:

Amusement Park Business Plan - Marketing Segmentation

5.2.1 Youngsters & Adults

Youngsters and adults living in our city will be our primary customers. Young people are enthusiastic to take thrill rides and participate in physical activities. Thus, they are expected to avail all of our services.

5.2.2 Teenagers

Secondly thrill-seeking teens will also be our target customers. As people of this age group are usually careless, we will ensure strict supervision by our guides and instructors. This will be done to ensure their safety and protection.

5.2.3 Senior Citizens

Senior citizens are not likely to take part in our amusement activities. However, we believe that they will avail our space for reunions and picnics. They are also expected to roam around in the facility to explore our beautiful gardens.

5.2.4 Tourists

Tourists who will be looking for thrilling and joyful break will also be our potential customers.

5.2.5 Children

Though we are not providing any entertainment specifically for kids. Still, we believe them to enjoy our simple rides and slides.

Market Analysis
Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
Youngsters & Adults 27% 42,000 43,000 44,000 45,000 46,000 10.00%
Teenagers 26% 39,000 40,000 41,000 42,000 43,000 10.00%
Senior Citizens 24% 31,000 32,000 33,000 34,000 35,000 10.00%
Tourists 14% 16,000 17,000 18,000 18,500 19,000 10.00%
Children 9% 5,000 6,000 7,000 8,000 9,000 11.00%
Total 100% 133,000 138,000 143,000 147,500 152,000 10%
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5.3 Business Target

  • To earn a net profit margin of $32k per month by the end of the third year.
  • To expand our offerings and also include water sports by the end of the first five years.
  • To achieve an average rating above 4.75 within 6 months of our launch.
  • To achieve a Net Promoter Score above 75% within a year of our launch.
  • To maintain a Customer Satisfaction Score above 90% throughout our service years.

5.4 Product Pricing

Our prices are almost in the same range as that of our competitors. However, the prices of food items are a little higher due to the supreme quality we’re providing.

Marketing Strategy of Amusement Park Business

After you know everything about how to build an amusement park, you should start exploring ways to promote it. In this sales strategy, you can see the competitive aspects and advertisement plan of Holiday Ventures.

6.1 Competitive Analysis

Our first competitive advantage is that we are providing an all-in-one recreation. At a single place, our customers will be able to enjoy thrilling rides, arrange friends’ and family reunions, and enjoy high quality food and drinks.

Secondly, we’ll develop an overall schedule business plan for amusement park to update our customers about the upcoming themed events.

Lastly, we’ll make the best possible use of technology. Through our website, our customers will be able to book area and time for their reunions. And issue any guidelines or requirements regarding their picnic/ event.

6.2 Sales Strategy

  • We’ll advertise us through Google Local ads Services, social media, and local newspapers.
  • We’ll offer a 60% discount on our amusement rides and fun outdoor games for the first two months of the launch.
  • We’ll keep track of our repeat customers through online transactions, to offer them exclusive benefits.
  • After every $140 transaction, we’ll gift $30 to our customers. The gifted amount will be valid for one month.

6.3 Sales Monthly

Amusement Park Business Plan - Sales Monthly

6.4 Sales Yearly

Amusement Park Business Plan - Sales Yearly

6.5 Sales Forecast

Amusement Park Business Plan - Unit Sales

Sales Forecast      
Unit Sales Year 1 Year 2 Year 3
Amusement Rides & Fun Game Challenges 62,000 65,720 69,663
Gardens & Picnic Services 40,000 42,400 44,944
Themed Events, Shows & Nights 20,000 21,200 22,472
High Quality Food 45,000 47,700 50,562
TOTAL UNIT SALES 167,000 177,020 187,641
Unit Prices Year 1 Year 2 Year 3
Amusement Rides & Fun Game Challenges $55.00 $63.80 $74.01
Gardens & Picnic Services $43.00 $49.88 $57.86
Themed Events, Shows & Nights $40.00 $46.40 $53.82
High Quality Food $47.00 $54.52 $63.24
Sales
Amusement Rides & Fun Game Challenges $3,410,000.00 $4,192,936.00 $5,155,634.11
Gardens & Picnic Services $1,720,000.00 $2,114,912.00 $2,600,495.80
Themed Events, Shows & Nights $800,000.00 $983,680.00 $1,209,532.93
High Quality Food $2,115,000.00 $2,600,604.00 $3,197,702.68
TOTAL SALES $8,045,000.00 $9,892,132.00 $12,163,365.51
Direct Unit Costs Year 1 Year 2 Year 3
Amusement Rides & Fun Game Challenges $52.00 $60.00 $69.00
Gardens & Picnic Services $41.00 $45.00 $52.50
Themed Events, Shows & Nights $37.00 $43.00 $48.00
High Quality Food $45.00 $51.00 $58.00
Direct Cost of Sales
Amusement Rides & Fun Game Challenges $3,224,000.00 $3,943,200.00 $4,806,760.80
Gardens & Picnic Services $1,640,000.00 $1,908,000.00 $2,359,560.00
Themed Events, Shows & Nights $740,000.00 $911,600.00 $1,078,656.00
High Quality Food $2,025,000.00 $2,432,700.00 $2,932,596.00
Subtotal Direct Cost of Sales $7,629,000.00 $9,195,500.00 $11,177,572.80

Personnel plan

Since there are a lot of risks involved in running an amusement park, you’ll need highly responsible and efficient staff to help you manage it. In this free sample amusement park business plan, we’re listing the staff recruited by Holiday Ventures along with their expected salaries.

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7.1 Company Staff

  • 1 Operation Manager
  • 1 Sales Manager
  • 5 Lifeguards and Instructors
  • 8 Recreation Workers
  • 1 Amusement Ride Engineer to assure technical assistance
  • 2 Technicians to help maintain mechanical infrastructure
  • 3 General Amusement Park Attendants
  • 1 Web Developer to develop and maintain company’s sites
  • 1 Sales Executive to execute the marketing business strategy
  • 2 Parking Attendants
  • 4 Cleaners
  • 4 Cooks & Waiters

7.2 Average Salary of Employees

 Personnel Plan      
Year 1 Year 2 Year 3
Operation Manager $13,000 $14,300 $15,730
Sales Manager $12,000 $13,200 $14,520
Lifeguards & Instructors $60,000 $66,000 $72,600
Recreation Workers $70,000 $77,000 $84,700
Amusement Ride Engineer $12,000 $13,200 $14,520
Technicians $8,000 $8,800 $9,680
General Amusement Park Attendants $24,000 $26,400 $29,040
Web Developer $6,000 $6,600 $7,260
Sales Executive $6,000 $6,600 $7,260
Parking Attendants $12,000 $13,200 $14,520
Cleaners $24,000 $26,400 $29,040
Cooks & Waiters $28,000 $30,800 $33,880
Total Salaries $275,000 $302,500 $332,750

Financial Plan

Starting an amusement park requires a lot of investment. First, you’ll need to purchase or rent a large space for amusement rides and games. Second, the cost of amusement rides, their installation and maintenance are also high. Therefore, it is essential to make a detailed financial plan to realize accurate amusement park construction costs.

Your financial plan should state major strategies to balance your investment with the earned profits. Moreover, by analyzing break-even, profit and loss projections, balance sheets, and gross margins, your plan should figure out a financial trajectory to prevent you from running into loss.

To give you an idea of how to develop an accurate financial plan, we’re providing the financial plan of Holiday Ventures here.

8.1 Important Assumptions

 General Assumptions      
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 8.24% 8.28% 8.31%
Long-term Interest Rate 8.28% 8.32% 8.39%
Tax Rate 23.70% 23.98% 24.11%
Other 0 0 0

8.2 Break-even Analysis

Amusement Park Business Plan - Break-even Analysis

 Break-Even Analysis  
Monthly Units Break-even 5340
Monthly Revenue Break-even $133,000
Assumptions:
Average Per-Unit Revenue $236.00
Average Per-Unit Variable Cost $0.66
Estimated Monthly Fixed Cost $169,090

8.3 Projected Profit and Loss

 

 Pro Forma Profit And Loss      
Year 1 Year 2 Year 3
Sales $8,045,000 $9,892,132 $12,163,366
Direct Cost of Sales $7,629,000 $9,195,500 $11,177,573
Other $0 $0 $0
TOTAL COST OF SALES $7,629,000 $9,195,500 $11,177,573
Gross Margin $416,000 $696,632 $985,793
Gross Margin % 5.17% 7.04% 8.10%
Expenses
Payroll $275,000 $302,500 $332,750
Sales and Marketing and Other Expenses $135,000 $130,000 $128,000
Depreciation $2,239 $2,248 $2,300
Leased Equipment $0 $0 $0
Utilities $2,700 $2,800 $2,900
Insurance $2,200 $2,400 $2,600
Rent $5,000 $5,100 $5,200
Payroll Taxes $25,000 $26,000 $27,000
Other $0 $0 $0
Total Operating Expenses $447,139 $471,048 $500,750
Profit Before Interest and Taxes ($31,139) $225,584 $485,043
EBITDA ($31,139) $225,584 $485,043
Interest Expense $0 $0 $0
Taxes Incurred ($6,228) $45,117 $97,009
Net Profit ($24,911) $180,467 $388,034
Net Profit/Sales -0.31% 1.82% 3.19%

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8.3.1 Profit Monthly

Amusement Park Business Plan - Profit Monthly

8.3.2 Profit Yearly

Amusement Park Business Plan - Profit Yearly

8.3.3 Gross Margin Monthly

Amusement Park Business Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Amusement Park Business Plan - Gross Margin Yearly

8.4 Projected Cash Flow

Amusement Park Business Plan - Projected Cash Flow

 Pro Forma Cash Flow      
Cash Received Year 1 Year 2 Year 3
Cash from Operations
Cash Sales $55,000 $59,400 $64,152
Cash from Receivables $20,000 $21,600 $23,328
SUBTOTAL CASH FROM OPERATIONS $75,000 $81,750 $88,290
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
SUBTOTAL CASH RECEIVED $76,000 $82,000 $89,000
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $35,000 $36,000 $36,400
Bill Payments $18,000 $19,000 $21,000
SUBTOTAL SPENT ON OPERATIONS $53,000 $55,000 $57,400
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
SUBTOTAL CASH SPENT $54,000 $58,320 $62,986
Net Cash Flow $14,000 $14,500 $16,000
Cash Balance $25,000 $27,000 $28,000

8.5 Projected Balance Sheet

 Pro Forma Balance Sheet      
Assets Year 1 Year 2 Year 3
Current Assets
Cash $276,000 $309,120 $340,032
Accounts Receivable $24,000 $26,880 $30,213
Inventory $4,100 $4,592 $5,143
Other Current Assets $1,000 $1,000 $1,000
TOTAL CURRENT ASSETS $295,000 $330,400 $371,370
Long-term Assets
Long-term Assets $10,000 $10,000 $10,000
Accumulated Depreciation $19,000 $21,280 $23,940
TOTAL LONG-TERM ASSETS $25,300 $28,336 $31,878
TOTAL ASSETS $300,200 $336,224 $378,252
Liabilities and Capital Year 4 Year 5 Year 6
Current Liabilities
Accounts Payable $18,000 $20,160 $22,660
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
SUBTOTAL CURRENT LIABILITIES $17,000 $19,040 $21,401
Long-term Liabilities $0 $0 $0
TOTAL LIABILITIES $16,200 $18,144 $20,394
Paid-in Capital $29,000 $30,000 $31,000
Retained Earnings $55,000 $59,950 $65,945
Earnings $220,000 $239,800 $263,780
TOTAL CAPITAL $280,000 $305,200 $335,720
TOTAL LIABILITIES AND CAPITAL $296,200 $336,224 $378,252
Net Worth $324,000 $353,160 $388,476

8.6 Business Ratios

 Ratio Analysis        
Year 1 Year 2 Year 3 INDUSTRY PROFILE
Sales Growth 7.33% 8.12% 9.00% 3.00%
Percent of Total Assets
Accounts Receivable 9.25% 10.25% 11.36% 9.80%
Inventory 5.46% 6.05% 6.70% 9.90%
Other Current Assets 2.30% 2.55% 2.82% 2.40%
Total Current Assets 152.00% 152.40% 153.00% 158.00%
Long-term Assets 11.32% 11.45% 12.02% 12.00%
TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
Current Liabilities 4.22% 4.25% 4.29% 4.34%
Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
Total Liabilities 7.55% 7.61% 7.68% 7.38%
NET WORTH 102.09% 102.91% 103.85% 110.00%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 95.11% 97.68% 100.41% 99.00%
Selling, General & Administrative Expenses 95.88% 98.47% 101.23% 97.80%
Advertising Expenses 1.64% 1.68% 1.73% 1.40%
Profit Before Interest and Taxes 41.89% 43.02% 44.23% 33.90%
Main Ratios
Current 32 32 33 32
Quick 31 32.6 33.415 33
Total Debt to Total Assets 0.17% 0.16% 0.16% 0.40%
Pre-tax Return on Net Worth 73.43% 73.70% 74.20% 75.00%
Pre-tax Return on Assets 95.89% 100.68% 105.72% 111.30%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 33.75% 34.80% 35.87% N.A.
Return on Equity 56.09% 57.83% 59.62% N.A.
Activity Ratios
Accounts Receivable Turnover 7.7 7.7 7.8 N.A.
Collection Days 100 100 100 N.A.
Inventory Turnover 34 35.7 36 N.A.
Accounts Payable Turnover 15.9 16.1 16.5 N.A.
Payment Days 27 27 27 N.A.
Total Asset Turnover 2.4 2.5 2.6 N.A.
Debt Ratios
Debt to Net Worth -0.04 -0.03 -0.03 N.A.
Current Liab. to Liab. 1 1 1 N.A.
Liquidity Ratios
Net Working Capital $247,000 $260,832 $275,439 N.A.
Interest Coverage 0 0 0 N.A.
Additional Ratios
Assets to Sales 0.86 0.86 0.87 N.A.
Current Debt/Total Assets 1% 0% 0% N.A.
Acid Test 26 27 28.3 N.A.
Sales/Net Worth 2.1 2.2 2.3 N.A.
Dividend Payout 0 0 0 N.A.

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