Children’s Indoor Playground business plan
Walk into many fast food restaurants, hospitals, doctor offices, and other professional offices and watch parents breathe a sigh of relief when they discover the availability of an indoor playground. The popularity of space dedicated to children has led enterprising entrepreneurs to turn entertainment time into full-time businesses. Some playgrounds are located in enterprises, while others are separate businesses offering children a complete outdoors play area under cover. The first step is developing a solid business proposal that lays out strategies for startup and operational success. The children’s indoor play area business plan describes the process of starting and operating a business focused on keeping children happily entertained when they need to be occupied for any reason. There are two main approaches to building an enterprise of this type. One is to buy a franchise by paying the required fees. The other is starting a playground operation from the ground up. Indoor play areas can be specially designated space in offices and other buildings that are designed to keep children busy while parents are working or keeping appointments. Playground equipment is installed, and the space is managed under contract with the customer. There are also enterprises that have separate facilities, like warehouse type space, and parents pay for use of the indoor playground in order to keep their children safe but active.
Define the Targeted Market
The indoor playground business plan can take many directions. Some are designed to cater to one or two specific age groups, whereas others offer different sections with each section equipped for children of various ages. For example, the activity and leisure center may offer entertainment for children up to 10 years old but have playground equipment for children under five years old in one indoor area and more sophisticated playground equipment for children aged six to eight and nine to 10 years old in different space.
Getting the Playground Up and Running
The business plan for indoor playground sections will discuss everything from startup to the first three to five years of playground operations, including:
- Location and type of facilities
- Sources of revenue, i.e. arranging children’s events for birthday parties, fun days, special events, daycare; single price admissions; snack bar sales, etc.
- Pricing schedule for single admission and/or group events, and club memberships
- Indoor playground layout, i.e. separate space for babies, toddlers, pre-school, and elementary school children; party rooms; parent areas
- Adapted facilities and equipment for special needs children Staffing needs and minimum qualifications, i.e. certifications, training, degrees, etc.
- Licensing and insurance for facility
- Description of operations
- Safety strategies for the playground
- Marketing strategies utilizing online and offline tactics
Importance of Setting Financial Goals
Of course, the entrepreneur must layout the financial goals and strategies and present five-year proforma profit-and-loss, balance sheet, and cash flow statements in the indoor play area business plan. This is a rapidly growing industry as parents recognize the importance of physical exercise for children. Too many children today would rather just entertain themselves with technology, so parents are looking for recreational indoor space offering quality play time equipment and activities, and safety.
Marketing Performs a Big Role in Success
Marketing is critical to achieving financial goals. The marketing section of the document lays out the essential strategies for reaching the target market, demonstrates the owner has researched the needs of potential customers, and relates effort to financial results.
A professional offering consulting services will help the entrepreneur walk through the four P’s of marketing:
- Product and services– Describe the product features and benefits accrued to customers by offering access to the playground. The product and services may also include making party arrangements and the special events mentioned earlier. A lot depends on where the enterprise is located and the type of customers targeted.
- Price – Pricing influences everything from the budgeted revenue to the expected profit margin. Many people need professional help setting the price because it is so important to get it right in order to develop a sustainable operation.
- Place – For a playground, place becomes the playground location. Since all services are offered wherever the playground is located, the place section for marketing purposes will discuss site selection, demographics of the people living in the immediate vicinity, local business and residential profiles, income levels, and vehicle traffic flows.
- Promotion – The promotional section offers many details about what the owner will do to ensure the right people know the new enterprise exists. Promotional activities include attending trade shows, print and online advertising, visiting local businesses, special pricing offers and much more.
Developing a high quality proposal is key to obtaining funding, if startup and operating capital is needed to get the playground up and running. Angel investors in particular are likely to be interested in this type of operation, if the entrepreneur lays out an operational proposal that is based on in-depth research and realistic goals. Investors can easily spot a playground project that is premised on faulty assumptions or poor quality market research. Every undertaking intended to generate a profit should have a course of action that achieves profitability within a reasonable amount of time. Investors want their money back as soon as possible.
OGS Capital has a team of professionals with expertise across industries. Entrepreneurs ready to start a new enterprise can access the OGS Capital consulting expertise for development of the indoor playground business plan by completing the online form to provide contact information.
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