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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:
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:
| 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:
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 Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Young Adults | 32% | 11,433 | 13,344 | 16,553 | 18,745 | 20,545 | 13.43% |
| Children & Teens | 48% | 22,334 | 32,344 | 43,665 | 52,544 | 66,432 | 10.00% |
| Others | 20% | 12,867 | 14,433 | 15,999 | 17,565 | 19,131 | 15.32% |
| Total | 100% | 46,634 | 60,121 | 76,217 | 88,854 | 106,108 | 9.54% |
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.
The detailed information about the sales forecast, total unit sales, total sales is given in the following table:
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Trampolines for Children | 1,887,030 | 2,680,320 | 2,588,240 |
| Trampolines for Teens & Adults | 802,370 | 815,430 | 823,540 |
| Cafeteria | 539,320 | 770230 | 1,002,310 |
| Pro Shop | 265,450 | 322,390 | 393,320 |
| TOTAL UNIT SALES | 3,494,170 | 4,588,370 | 4,807,410 |
| Unit Prices | Year 1 | Year 2 | Year 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 Costs | Year 1 | Year 2 | Year 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
6.5 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 1 | Year 2 | Year 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 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 10.00% | 11.00% | 12.00% |
| Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
| Tax Rate | 26.42% | 27.76% | 28.12% |
| Other | 0 | 0 | 0 |
8.2 Brake-even Analysis
| Brake-Even Analysis | |
| Monthly Units Break-even | 5530 |
| 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 1 | Year 2 | Year 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/Sales | 30.00% | 39.32% | 48.64% |
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
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 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 |
| Expenditures | Year 1 | Year 2 | Year 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 | |||
| Assets | Year 1 | Year 2 | Year 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 Capital | Year 1 | Year 2 | Year 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 1 | Year 2 | Year 3 | Industry Profile | |
| Sales Growth | 4.35% | 30.82% | 63.29% | 4.00% |
| Percent of Total Assets | 4.35% | 4.71% | 5.80% | 9.80% |
| Accounts Receivable | 5.61% | 4.71% | 3.81% | 9.70% |
| Inventory | 1.85% | 1.82% | 1.79% | 9.80% |
| Other Current Assets | 1.75% | 2.02% | 2.29% | 27.40% |
| Total Current Assets | 138.53% | 150.99% | 163.45% | 54.60% |
| Long-term Assets | -9.47% | -21.01% | -32.55% | 58.40% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.68% | 3.04% | 2.76% | 27.30% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 25.80% |
| Total Liabilities | 4.68% | 3.04% | 2.76% | 54.10% |
| NET WORTH | 99.32% | 101.04% | 102.76% | 44.90% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 94.18% | 93.85% | 93.52% | 0.00% |
| Selling, General & Administrative Expenses | 74.29% | 71.83% | 69.37% | 65.20% |
| Advertising Expenses | 2.06% | 1.11% | 0.28% | 1.40% |
| Profit Before Interest and Taxes | 26.47% | 29.30% | 32.13% | 2.86% |
| Main Ratios | ||||
| Current | 25.86 | 29.39 | 32.92 | 1.63 |
| Quick | 25.4 | 28.88 | 32.36 | 0.84 |
| Total Debt to Total Assets | 2.68% | 1.04% | 0.76% | 67.10% |
| Pre-tax Return on Net Worth | 66.83% | 71.26% | 75.69% | 4.40% |
| Pre-tax Return on Assets | 64.88% | 69.75% | 74.62% | 9.00% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 19.20% | 21.16% | 23.12% | N.A. |
| Return on Equity | 47.79% | 50.53% | 53.27% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 4.56 | 4.56 | 4.56 | N.A. |
| Collection Days | 92 | 99 | 106 | N.A. |
| Inventory Turnover | 19.7 | 22.55 | 25.4 | N.A. |
| Accounts Payable Turnover | 14.17 | 14.67 | 15.17 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 1.84 | 1.55 | 1.26 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | 0 | -0.02 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $120,943 | $140,664 | $160,385 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.45 | 0.48 | 0.51 | N.A. |
| Current Debt/Total Assets | 4% | 3% | 2% | N.A. |
| Acid Test | 23.66 | 27.01 | 30.36 | N.A. |
| Sales/Net Worth | 1.68 | 1.29 | 0.9 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
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