Do you want to start trampoline park business?

Do you want to start a trampoline park business? Well, if you are an adventurous person and want to bring enjoyment and peace in peoples’ lives besides yielding profit, then it will be the right choice for you. Trampoline parks offer small and large trampolines to the young and teens for the purpose of recreation or competition. Trampolines are made of strong fabric sheets stretched by coiled springs specially made for jumping and exercise.

Every startup requires a detailed business plan in which all the complications and advantages are analyzed. So, if you want to know how to open a trampoline park and how to write an effective business plan, you can take help from this sample business plan for a trampoline business startup named ‘Sky Sports’.

Executive Summary

2.1 The Business

Sky Sports will be owned and managed by Jeff Leon, a 32-year-old young man. Sky Sports will be a registered and licensed indoor trampoline park located at a ten-minute distance from Deluca’s Restaurant in Lansing, Michigan. An 8 acres’ facility will be converted to a trampoline park by installing trampolines of various sizes for starting a trampoline park  for different age groups.

2.2 Management

Jeff will formulate a team of enthusiastic, hardworking and dedicated individuals, who will be able to generate fun loving work energy every day. The team will include technicians, cleaners, cashiers, greeters, doctors and general workers.

2.3 Customers

Our customers will be the local residents living near us. We have small and large sized trampolines in our Sky Sports for the children and young adults respectively.

2.4 Target of the Company

The company has the following targets:

Trampoline Business Plan - 3 Years Profit Forecast

Company Summary

3.1 Company Owner

Jeff Leon will be the owner of Sky Sports. Jeff had been the manager of the soccer club for 8 years, but now his adventurous nature has compelled him to open a trampoline park. Jeff is renowned in the people of his town for his management skills and amiable friendly nature. He is a passionate person and is willing to invest both money and time in the business of his interest.

3.2 Why the Business is being started

After gaining experience and fame as a successful manager, Jeff has decided to start the business of his own interest and generate a good profit. According to Jeff, amusements like trampoline parks are a sign of a healthier society, and a person of his kind will be the most satisfactory choice for running such business.

3.3 How the Business will be started

An 8 acres’ land will be used as an indoor trampoline park by installing small and big sized trampolines. The startup of this business will take a lot of money in buying trampolines, covering the walls and floors with foam, creating a facility of snacks bar and drinks for the customers and for buying inventory.

If you want to know how to start a trampoline park business, you can take help from the startup details of Sky Sports given below:

Trampoline Business Plan - Startup Cost

Start-up Expenses 
Legal$55,300
Consultants$0
Insurance$32,750
Rent$32,500
Research and Development$32,750
Expensed Equipment$32,750
Signs$1,250
TOTAL START-UP EXPENSES$187,300
Start-up Assets$0
Cash Required$332,500
Start-up Inventory$32,625
Other Current Assets$232,500
Long-term Assets$235,000
TOTAL ASSETS$121,875
Total Requirements$245,000
START-UP FUNDING$0
START-UP FUNDING$273,125
Start-up Expenses to Fund$11,875
Start-up Assets to Fund$15,000
TOTAL FUNDING REQUIRED$0
Assets$23,125
Non-cash Assets from Start-up$18,750
Cash Requirements from Start-up$0
Additional Cash Raised$18,750
Cash Balance on Starting Date$21,875
TOTAL ASSETS$0
Liabilities and Capital$0
Liabilities$0
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$0
Other Current Liabilities (interest-free)$0
TOTAL LIABILITIES$0
Capital$0
Planned Investment$0
Investor 1$332,500
Investor 2$0
Other$0
Additional Investment Requirement$0
TOTAL PLANNED INVESTMENT$695,000
Loss at Start-up (Start-up Expenses)$313,125
TOTAL CAPITAL$251,875
TOTAL CAPITAL AND LIABILITIES$251,875
Total Funding$255,000

Services for customers

Before starting any business, you must plan the services you’ll provide your customers, it will not only help you in hiring the desired staff but also help you in estimating the cost to open a trampoline park.

The services Sky Sports will provide are:

  • Trampolines for Children: We’ll have large sized trampolines with a net all around for children to enjoy jumping with each other. Tickets will be provided in consonance with the time limit, they want to trampoline.
  • Trampolines for Teens & Adults: Adults usually don’t want to trampoline with all other so we’ll offer mini and separate trampolines for adults to enjoy and exercise. Moreover, we have separate trampoline rooms for women.
  • Cafeteria: We’ll offer snacks and cold drinks for the customers and their companions in a wide beautiful cafe lounge.
  • Pro Shop: We’ll keep sports items for the use of children and adults. For young and adults who really want to learn the art of trampolining, we have purchased special breathable, anti-sweat and anti-stick trampoline dresses.

Marketing Analysis of trampoline park business

Before opening a trampoline park, you have to evaluate that how much does it cost to start a trampoline park. The most decisive factor in the success of a startup is its detailed business plan, and the most important section of a trampoline park business plan  is the correct marketing analysis. In your trampoline business plan, you must justify that which segment of the society you will target and which services and prices will be the most appropriate to attract them.

You must demonstrate the cost of opening a trampoline park before opening it because this type of business will require a heavy amount for its startup. But don’t worry you will soon be able to balance the indoor trampoline park start up cost with the profit you earn. In case, you don’t have any idea about how much does it cost to open a trampoline park, you can take help from the sample business plans available on the web.

It’s not wise to estimate how much does a trampoline park cost, until and unless you have analyzed the market in which you are going to start your business. Your location and the market demand, as well as your competitors, will decide the costs of your startup. So, it is always better to hire professionals to carry out accurate marketing analysis according to your locality and the demands of target customers in the vicinity.

5.1 Marketing Trends

Trampolining had been considered the most recreational sport for the people in the twentieth century unless the peoples’ interest got waned. The peoples’ interest died down after meeting the accidents resulting from improper exercises such as attempting a somersault without much experience and flexibility. Don’t get despaired, the number of such parks has again increased, as business owners have found ways to avoid injuries during trampolining.

According to the International Association of Trampoline Parks (IATP), more than 563 trampoline parks are operating in the United States and the number is expected to increase. So, if you plan your business carefully finding solutions of the possible accidents, then the trampoline park will surely benefit you.

5.2 Marketing Segmentation

It is crucial to keep in mind your target audience, and then devise your pricing and advertising policy. Marketing segmentation cannot be taken for granted, it should be developed by a detailed analysis of your possible customers.

For assisting you in defining your target audience, we are providing here the sample business plan of Sky Sports free of cost.

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

Trampoline Business Plan - Marketing Segmentation

5.2.1 Children & Teens: The first group of our customers will be the children of the residents of Lancing. All the people here are financially stable and can afford this recreational exercise for their lovable children. It is obvious that the children and young teens love to make sky-high jumps in competition with each other. For this age group, we have large sized combined rooms with wall-to-wall trampolines as this category usually come to play in competition with other fellows.

5.2.2 Young Adults: The second category includes the young people who are aware of the benefits of regular exercise and jumping. Such persons don’t just come for the sake of enjoyment, instead, they want to perform the art, which can only be learned on a trampoline, such as positioning the body parts while remaining in the air. Such people usually want separate and mini trampolines for themselves, so we have arranged a large number of mini trampolines and special trampoline dresses for them.

This category will also benefit from the things we provide at our pro shop especially the anti-sweat and anti-stick trampoline dresses.

5.2.3 Others: The people who have come to our park with their children or fellows will enjoy the facility of our cafeteria while waiting for their mates. Moreover, all the children, young and adult will buy their desired items from our pro shop.

The detailed market analysis of our potential customers is given in the following table:

Market Analysis
Potential CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
Young Adults32%11,43313,34416,55318,74520,54513.43%
Children & Teens48%22,33432,34443,66552,54466,43210.00%
Others20%12,86714,43315,99917,56519,13115.32%
Total100%46,63460,12176,21788,854106,1089.54%

5.3 Business Target

Jeff aims at increasing the interest of the people in this sport besides generating sufficient revenue. The business targets are to balance the cost of a startup within the next 3 years of launch and to become one of the best trampoline parks in the whole Lancing.

5.4 Product Pricing

The products in the cafeteria and pro shop will have reasonable and market prices. However, we have the following packages for our temporary as well as regular customers.

  • 30-minute trampoline ticket for children for $5
  • Membership for adults for $800 per six months
  • Yearly membership for $1250 per year

Strategy

After having a thorough knowledge of how to start a indoor trampoline park, the next step before starting a trampoline park is to devise flawless policies to attract your customers. Gaining the attention of target customers is the most decisive step for a startup. So, you must advertise your services and strengths properly before opening a trampoline park.

6.1 Competitive Analysis

There are many factors which can become our powerful competitive advantages. Firstly, we are located in a very convenient location near a famous resort, so the parents who happen to be there can leave their children with us. Secondly, we have a big comfortable cafe lounge offering a small range of snacks for the people who want to stay inside while waiting.

Our biggest competitive advantage is the safety we’ll provide our customers. We have fine soft nets around trampolines and foam throughout the floor and padded walls to avoid accidents by falling outside the trampoline. People usually land over their neck or head while trying to attempt somersaults in the air, resulting in paralysis or death. In 1999, there were 100,000 emergencies due to trampoline injuries as reported by the U.S. Consumer Product Safety Commission. So, to deal with such emergency situations we have hired experienced doctors and surgeons because we value the lives of our customers!

6.2 Sales Strategy

Sky Lounge will adopt the following advertising strategies:

  • We’ll advertise our measures to ensure customers’ safety through print and social media
  • We’ll give free service for the first week of our launch
  • A 20% discount will be given on the cafeteria and pro shop to our 6-month or 12-month members

6.3 Sales Forecast

By analyzing our market segmentation strategy, our experts have forecasted the following sales on a yearly basis which are summarized in the column charts.

Trampoline Business Plan - Unit Sales

The detailed information about the sales forecast, total unit sales, total sales is given in the following table:

Sales Forecast   
Unit SalesYear 1Year 2Year 3
Trampolines for Children1,887,0302,680,3202,588,240
Trampolines for Teens & Adults802,370815,430823,540
Cafeteria539,3207702301,002,310
Pro Shop265,450322,390393,320
TOTAL UNIT SALES3,494,1704,588,3704,807,410
Unit PricesYear 1Year 2Year 3
Trampolines for Children$140.00$150.00$160.00
Trampolines for Teens & Adults$600.00$800.00$1,000.00
Cafeteria$700.00$800.00$900.00
Pro Shop$650.00$750.00$850.00
Sales
Trampolines for Children$2,149,800$2,784,000$3,383,200
Trampolines for Teens & Adults$120,050$194,500$268,500
Cafeteria$50,110$71,600$93,000
Pro Shop$139,350$194,600$249,850
TOTAL SALES
Direct Unit CostsYear 1Year 2Year 3
Trampolines for Children$0.70$0.80$0.90
Trampolines for Teens & Adults$0.40$0.45$0.50
Cafeteria$0.30$0.35$0.40
Pro Shop$3.00$3.50$4.00
Direct Cost of Sales
Trampolines for Children$989,300$1,839,000$2,679,700
Trampolines for Teens & Adults$66,600$119,900$173,200
Cafeteria$17,900$35,000$52,100
Pro Shop$19,400$67,600$115,800
Subtotal Direct Cost of Sales$1,294,100$1,699,400$2,104,700

6.4 Sales Monthly

Trampoline Business Plan - Sales Monthly

6.5 Sales Yearly

Trampoline Business Plan - Sales Yearly

Personnel plan

Just like planning about the different aspects of your business, you should prepare your personnel plan wisely, as the success of any business depends upon the dedication and energy of its employees.

If you are searching for how to start a trampoline park  and how many people will be needed for your assistance, you can take help from this sample business plan.

7.1 Company Staff

Jeff will hire the following people:

  • 5 Employees for operating and maintaining the trampolines
  • 2 Accountants to maintain financial records
  • 1 Front Desk Officer to distribute the tickets
  • 2 Technicians in case of an urgent problem
  • 2 Doctors & Surgeons to deal with any injury
  • 1 Pro Shop Manager to manage and operate it
  • 4 Workers to run the cafeteria
  • 6 Cleaners for cleaning the facility
  • 2 Security Guards

7.2 Average Salary of Employees

 Personnel Plan   
Year 1Year 2Year 3
Accountants$85,000$95,000$105,000
Sales Executives$45,000$50,000$55,000
Field Employees & Guards$550,000$650,000$750,000
Front Desk Officer$50,000$55,000$60,000
Technicians$152,000$159,000$166,000
Doctors$145,000$152,000$159,000
Pro Shop Manager$50,000$55,000$60,000
Workers$187,000$194,000$201,000
Cleaners$95,000$105,000$115,000
Total Salaries$202,000$214,000$226,000

Financial Plan

Before opening a trampoline park, you must have a clear idea that how will you balance the startup expenses of a trampoline park with the trampoline park profits. To make an accurate estimate of the trampoline park profits you have to make an accurate financial plan. A sound financial plan paves way for the business owner in widening his business. Considering the importance of a financial plan Jeff had hired the services of expert financial advisors to assess how much to open a trampoline park according to the services and facilities Jeff wanted to provide.

If you are not starting on a very large, then you can take help from this sample business plan, otherwise, you must hire professionals to attain maximum accuracy.

8.1 Important Assumptions

The company’s financial projections are forecasted on the basis of the following assumptions. These assumptions are quite conservative and are also expected to show deviation but to a limited level such that the company’s major financial strategy will not be affected.

 General Assumptions   
Year 1Year 2Year 3
Plan Month123
Current Interest Rate10.00%11.00%12.00%
Long-term Interest Rate10.00%10.00%10.00%
Tax Rate26.42%27.76%28.12%
Other000

 

8.2 Brake-even Analysis

Trampoline Business Plan - Brake-even Analysis

 Brake-Even Analysis 
Monthly Units Break-even5530
Monthly Revenue Break-even$159,740
Assumptions:
Average Per-Unit Revenue$260.87
Average Per-Unit Variable Cost$0.89
Estimated Monthly Fixed Cost$196,410

 

8.3 Projected Profit and Loss

 Pro Forma Profit And Loss   
Year 1Year 2Year 3
Sales$309,069$385,934$462,799
Direct Cost of Sales$15,100$19,153$23,206
Other$0$0$0
TOTAL COST OF SALES$15,100 $19,153 $23,206
Gross Margin$293,969$366,781$439,593
Gross Margin %94.98%94.72%94.46%
Expenses
Payroll$138,036$162,898$187,760
Sales and Marketing and Other Expenses$1,850$2,000$2,150
Depreciation$2,070$2,070$2,070
Leased Equipment$0$0$0
Utilities$4,000$4,250$4,500
Insurance$1,800$1,800$1,800
Rent$6,500$7,000$7,500
Payroll Taxes$34,510$40,726$46,942
Other$0$0$0
Total Operating Expenses$188,766$220,744$252,722
Profit Before Interest and Taxes$105,205$146,040$186,875
EBITDA$107,275$148,110$188,945
Interest Expense$0$0$0
Taxes Incurred$26,838$37,315$47,792
Net Profit$78,367$108,725$139,083
Net Profit/Sales30.00%39.32%48.64%

8.3.1 Profit Monthly

Trampoline Business Plan - Profit Monthly

8.3.2 Profit Yearly

Trampoline Business Plan - Profit Yearly

8.3.3 Gross Margin Monthly

Trampoline Business Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Trampoline Business Plan - Gross Margin Yearly

8.4 Projected Cash Flow

Trampoline Business Plan - Projected Cash Flow

 Pro Forma Cash Flow   
Cash ReceivedYear 1Year 2Year 3
Cash from Operations
Cash Sales$40,124$45,046$50,068
Cash from Receivables$7,023$8,610$9,297
SUBTOTAL CASH FROM OPERATIONS$47,143 $53,651 $59,359
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$47,143 $53,651 $55,359
ExpendituresYear 1Year 2Year 3
Expenditures from Operations
Cash Spending$21,647$24,204$26,951
Bill Payments$13,539$15,385$170,631
SUBTOTAL SPENT ON OPERATIONS$35,296 $39,549 $43,582
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$35,296 $35,489 $43,882
Net Cash Flow$11,551$13,167$15,683
Cash Balance$21,823$22,381$28,239

8.5 Projected Balance Sheet

 Pro Forma Balance Sheet   
AssetsYear 1Year 2Year 3
Current Assets
Cash$184,666$218,525$252,384
Accounts Receivable$12,613$14,493$16,373
Inventory$2,980$3,450$3,920
Other Current Assets$1,000$1,000$1,000
TOTAL CURRENT ASSETS$201,259 $237,468 $273,677
Long-term Assets
Long-term Assets$10,000$10,000$10,000
Accumulated Depreciation$12,420$14,490$16,560
TOTAL LONG-TERM ASSETS$980 $610 $240
TOTAL ASSETS$198,839 $232,978 $267,117
Liabilities and CapitalYear 1Year 2Year 3
Current Liabilities
Accounts Payable$9,482$10,792$12,102
Current Borrowing$0$0$0
Other Current Liabilities$0$0$0
SUBTOTAL CURRENT LIABILITIES$9,482 $10,792 $12,102
Long-term Liabilities$0$0$0
TOTAL LIABILITIES$9,482 $10,792 $12,102
Paid-in Capital$30,000$30,000$30,000
Retained Earnings$48,651$72,636$96,621
Earnings$100,709$119,555$138,401
TOTAL CAPITAL$189,360 $222,190 $255,020
TOTAL LIABILITIES AND CAPITAL$198,839 $232,978 $267,117
Net Worth$182,060$226,240$270,420

 

8.6 Business Ratios

 Ratio Analysis    
Year 1Year 2Year 3Industry Profile
Sales Growth4.35%30.82%63.29%4.00%
Percent of Total Assets4.35%4.71%5.80% 9.80%
Accounts Receivable5.61%4.71%3.81%9.70%
Inventory1.85%1.82%1.79%9.80%
Other Current Assets1.75%2.02%2.29%27.40%
Total Current Assets138.53%150.99%163.45%54.60%
Long-term Assets-9.47%-21.01%-32.55%58.40%
TOTAL ASSETS100.00%100.00%100.00%100.00%
Current Liabilities4.68%3.04%2.76%27.30%
Long-term Liabilities0.00%0.00%0.00%25.80%
Total Liabilities4.68%3.04%2.76%54.10%
NET WORTH99.32%101.04%102.76%44.90%
Percent of Sales
Sales100.00%100.00%100.00%100.00%
Gross Margin94.18%93.85%93.52%0.00%
Selling, General & Administrative Expenses74.29%71.83%69.37%65.20%
Advertising Expenses2.06%1.11%0.28%1.40%
Profit Before Interest and Taxes26.47%29.30%32.13%2.86%
Main Ratios
Current25.8629.3932.921.63
Quick25.428.8832.360.84
Total Debt to Total Assets2.68%1.04%0.76%67.10%
Pre-tax Return on Net Worth66.83%71.26%75.69%4.40%
Pre-tax Return on Assets64.88%69.75%74.62%9.00%
Additional RatiosYear 1Year 2Year 3
Net Profit Margin19.20%21.16%23.12%N.A.
Return on Equity47.79%50.53%53.27%N.A.
Activity Ratios
Accounts Receivable Turnover4.564.564.56N.A.
Collection Days9299106N.A.
Inventory Turnover19.722.5525.4N.A.
Accounts Payable Turnover14.1714.6715.17N.A.
Payment Days272727N.A.
Total Asset Turnover1.841.551.26N.A.
Debt Ratios
Debt to Net Worth0-0.02-0.04N.A.
Current Liab. to Liab.111N.A.
Liquidity Ratios
Net Working Capital$120,943$140,664$160,385N.A.
Interest Coverage000N.A.
Additional Ratios
Assets to Sales0.450.480.51N.A.
Current Debt/Total Assets4%3%2%N.A.
Acid Test23.6627.0130.36N.A.
Sales/Net Worth1.681.290.9N.A.
Dividend Payout000N.A.