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SEPT.23, 2020

Water Park Business Plan Example

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Article Business Plan Templates Entertainment & Recreation Business Plans
Water Park Business Plan Example

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Table of Content

    Do you want to start a Water Park business plan?

    Do you want to start a water park business? If you are thinking about it, it is a great idea. The need for water parks is never limited. And you don’t require any special technical education or degree. You can start it at a small scale and then develop it as you go along.

    Even though this business is relatively straightforward to start, your life can still be made easier if you follow a water park business plan pdf document like the one here. When you’re learning about how to start a water park business or any other business like starting a paintball business, you will find that a business plan is an essential document to have. This also includes a presentation for potential investors.

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    Below, we have provided a sample business plan for ‘Grizzly Parks’ water park.

    Executive Summary

    2.1 The Business

    Grizzly Parks will be a water park business initiative started by Hailey Benton. The initiative’s primary goal will be to provide a place where families can come to relax and where kids can have fun. It will offer a wide range of services in Rockland County throughout the year, with water-based activities for summer and winter.

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    2.2 Management of Water Park

    When starting a water park business, you need to ensure that the endeavor is successful. You can do this by developing a water park business plan. In the business plan for you water park franchise, you need to take account of all the resources you possess. These include human resources, financial as well as technical. It would be best if you then created a marketing strategy business that will utilize these resources to the fullest.

    In the business plan below, we have presented how to make a water park so that you can follow a strong lead.

    2.3 Customers of Water Park

    The customer base of our water park will mainly be focused on families and the young generation. The main customers of our water park business will include:

    • Local Families
    • Teens
    • Young Adults
    • Tourists

    2.4 Business Target

    The main target of our water park will be to provide a space for relaxation to our customers. We aim to become a place that people can trust to be fun after some hard workdays.

    The financial targets that we want to achieve within the first two years of our inauguration are mentioned below:

     

    3 Years Profit Forecast - Water Park Business Plan Example

    Franchise Business Plan
    Helps the franchisee get business case approval from the franchisor

    Company Summary

    3.1 Company Owner

    Hailey Benton will be the owner of Grizzly Parks. Hailey completed her MBA about three years back. Afterward, she worked for a management firm for two years before she ventured out to fulfill her dream to run and design business park with her co-worker.

    3.2 Why the Water Park is being started

    Hailey noticed that the amusement and recreation businesses around her town were becoming obsolete with old services like Merry Go Rounds, Carousels, and Ships. She realized that she could utilize the water body around town to offer more enthralling activities to the people. Therefore, she did some research and set out to start a water park.

    3.3 How the Water Park will be started

    Step1: Plan Everything

    The primary step of starting an aerial tourism business is to read aerial tourism business plan. Similarly, the first step of starting a water park is to read a water park business plan sample.

    This water park business plan template will give you answers to many fundamental questions. For example, how much does it cost to open a water park. Of course, it is up to you whether you take advice directly from business plan experts or choose to go through business plans on your own to learn. But if you choose the latter, you can get help from this document.

    Step2: Define the Brand

    The second step to starting a water park is to highlight the core values of your business. Doing this is called developing a brand. The brand should show your customer your competitive advantage over other recreation businesses around you.

    Step3: Establish Your Corporate Office

    Hailey and her designer decided to rent out a space of land near Hackensack River in Rockland County. She will procure all the water and safety equipment needed to start the park.

    Step4: Establish a Web Presence

    Online marketing is an essential aspect of every business. Realizing the necessity, Hailey decided to start a website and social media pages to market her water park.

    Step5: Promote and Market

    You need to develop and implement a marketing plan as the final step to start your business.

    Startup Cost - Water Park Business Plan Example

    Start-up Expenses  
    Legal $202,200
    Consultants $0
    Insurance $23,000
    Rent $33,000
    Research and Development $10,000
    Expensed Equipment $56,000
    Signs $3,400
    TOTAL START-UP EXPENSES $327,600
    Start-up Assets $266,000
    Cash Required $369,000
    Start-up Inventory $39,000
    Other Current Assets $240,000
    Long-term Assets $287,000
    TOTAL ASSETS $1,201,000
    Total Requirements $1,528,600
    START-UP FUNDING
    Start-up Expenses to Fund $327,600
    Start-up Assets to Fund $1,201,000
    TOTAL FUNDING REQUIRED $1,528,600
    Assets
    Non-cash Assets from Start-up $1,506,000
    Cash Requirements from Start-up $162,000
    Additional Cash Raised $50,000
    Cash Balance on Starting Date $35,000
    TOTAL ASSETS $1,753,000
    Liabilities and Capital
    Liabilities $18,000
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $48,000
    Other Current Liabilities (interest-free) $0
    TOTAL LIABILITIES $66,000
    Capital
    Planned Investment $1,528,600
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    TOTAL PLANNED INVESTMENT $1,528,600
    Loss at Start-up (Start-up Expenses) $158,400
    TOTAL CAPITAL $1,687,000
    TOTAL CAPITAL AND LIABILITIES $1,753,000
    Total Funding $1,528,600
    Any questions? Get in Touch!

    Services

    Before you think of how to make a water park, you need to decide the services you intend on providing to your customers.

    The business plan for opening a water park will be different from perhaps, internet radio business plan. This is because the services offered are different. And so details such as water park financing will be different.

    Since Hailey decided to open a commercial water park, you can use this water park business plan example to create a business plan template for summer camp too.

    The primary services of Grizzly Parks will include:

    • Waterslides

    We will provide different level waterslides. This way, both young children and well adults can have a fun splash. Our water slide levels will include:

    • Beginner (5-10yrs)
    • Intermediate (11-20yrs)
    • Expert (20yrs +)

    Customers will be allowed in the water slides considering their swimming level and age.

    • Varied Depth Pools

    We will also have pools of various depths present at the park where customers can take a leisurely swim. In this regard, the different categories will include:

    • Zero-Depth Pools
    • Tapered Pools
    • Open water pools

    Here, parents can teach their children to swim or just go for a swim themselves.

    • Water Sports

    The unique service provided by our water park management will be water sports, including:

    • Surfing
    • Jet Skiing
    • Water Boarding
    • Canoeing
    • Paddle Boarding
    • Camping Services

    Our customers can also enroll their children in seasonal camps that may last 1-2 weeks.

    • Recreation Services

    We will also provide recreation services like spas, sun decks, and lazy rivers for our older customers so they can have a pampered and relaxing day.

    Marketing Analysis of Water Park

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    To learn how to open a water park, you will need to have a thorough knowledge of your customer to make the water park profitable business. The best way to understand your customer base is to undergo a marketing analysis for your water parks business plan. The business plan should include the past, present, and future market trends for reference. It should also include an analysis of current market prices with your financial goals to assess the costs of your services.

    If you don’t know how to conduct marketing analysis, you can take help from this water park business plan sample. You will find a lot of examples of water park business plan pdf on the internet that you can refer to.

    Below, we have presented a detailed marketing analysis of Grizzly Parks Water Park:

    5.1 Market Trends

    According to the International Association of Amusement Parks and Attractions (IAAPA), waterparks attract around 400,000 guests a year with an average stay of about 2.7 hours. And according to IBIS, the market size for the water park industry is valued at $2 billion. Overall, the demand for amusement and recreation services is ever-increasing with the stressful work and school hours all over the US.

    5.2 Marketing Segmentation

    The possible customers of Grizzly Parks are divided into the following categories:

    Marketing Segmentation - Water Park Business Plan Example

    Business Plan for Investors

    5.2.1 Local Families

    Our primary customers will be families in the New York area. They are expected to be our recurring customers as they will avail services for both kids and adults, including camps, spas, and pools.

    5.2.2 Teens

    Our second target customer will be teens. They are expected to utilize our more exciting activities such as water sports and camps.

    5.2.3 Young Adults

    This will be our third group of customers. They are expected to avail both exciting and relaxing services on a semi-regular basis.

    5.2.4 Tourists

    Our last batch of customers will be tourists. As New York and surrounding areas attract many tourists, they are expected to avail our day-bases activities.

    Market Analysis
    Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Local Families 35% 35,000 42,000 50,400 60,480 72,576 10.00%
    Teens 25% 24,000 28,800 34,560 41,472 49,766 10.00%
    Young Adults 21% 18,700 22,440 26,928 32,314 38,776 10.00%
    Tourists 19% 14,000 16,800 20,160 24,192 29,030 11.00%
    Total 100% 91,700 110,040 132,048 158,458 190,149 10%

     

    5.3 Business Target

    • To become the number one recreation service throughout New York and the surrounding area
    • To expand our services every year
    • To earn a net profit margin of $80k per month by the end of our second year
    • To keep a customer satisfaction rate of >95%.

    5.4 Product Pricing

    Our prices for specialized services (like water sports) will be a little higher than traditional services like pools and spas. But we will offer experts to guide our customers and keep them safe.

    Marketing Strategy

    To stand out amongst the huge competition in the market, you need to display your advantages to the customers. You can do this through a project report on water park. Thorough research for this will answer many questions for you, such as how much does it cost to build a waterpark.

    In this business plan, we present the marketing analysis of Grizzly Parks that will also highlight how to make a water park.

    6.1 Competitive Analysis

    • Our customer support is top-notch. We will ask customers for feedback as well to improve our services.
    • Our customers can reach out to us through our website, social media pages, or direct call. We will try to respond as soon as possible.
    • We provide new exciting features like water sports that are not widely available.

    6.2 Sales Strategy

    • Our advertisements will be done through local as well as google ads, posters, and social media.
    • We will offer family packages with fun discounts
    • We will offer coupons that our recurring customers can use for free rides or lessons.

    6.3 Sales Monthly

    Sales Monthly - Water Park Business Plan Example

    6.4 Sales Yearly

    Sales Yearly - Water Park Business Plan Example

    6.5 Sales Forecast

    Unit Sales - Water Park Business Plan Example

    Sales Forecast      
    Unit Sales Year 1 Year 2 Year 3
    Waterslides 9,870 10,462 11,090
    Varied Depth Pools 8,760 9,286 9,843
    Water Sports 5,680 6,021 6,382
    Camping & Recreation 2,320 2,459 2,607
    TOTAL UNIT SALES 26,630 28,228 29,921
    Unit Prices Year 1 Year 2 Year 3
    Waterslides $50.00 $58.00 $67.28
    Varied Depth Pools $45.00 $52.20 $60.55
    Water Sports $75.00 $87.00 $100.92
    Camping & Recreation $100.00 $116.00 $134.56
    Sales
    Waterslides $493,500.00 $606,807.60 $746,130.62
    Varied Depth Pools $394,200.00 $484,708.32 $595,997.35
    Water Sports $426,000.00 $523,809.60 $644,076.28
    Camping & Recreation $232,000.00 $285,267.20 $350,764.55
    TOTAL SALES $1,545,700.00 $1,900,592.72 $2,336,968.81
    Direct Unit Costs Year 1 Year 2 Year 3
    Waterslides $30.00 $33.00 $34.65
    Varied Depth Pools $20.00 $22.00 $23.10
    Water Sports $45.00 $49.50 $51.98
    Camping & Recreation $50.00 $55.00 $57.75
    Direct Cost of Sales
    Waterslides $296,100.00 $345,252.60 $384,266.14
    Varied Depth Pools $175,200.00 $204,283.20 $227,367.20
    Water Sports $255,600.00 $298,029.60 $331,706.94
    Camping & Recreation $116,000.00 $135,256.00 $150,539.93
    Subtotal Direct Cost of Sales $842,900.00 $982,821.40 $1,093,880.22

    Personnel plan

    Note

    The behavior of employees is of the utmost importance in building water parks. Understanding this importance in the process of how to start a water park, Hailey decided to implement rigorous selection criteria for employees. Under this criteria, the list of employees is mentioned below.

    7.1 Company Staff

    • 1 Co-Manager to help in overall design and operations
    • 6 Certified Lifeguards
    • 5 Certified Swimming Instructors
    • 8 General Cleaners
    • 2 Technician to upkeep the equipment
    • 1 Web Developer/ Mobile App Developer to manage online sites
    • 1 Social Media Manager
    • 2 Sales Executives to organize and promote sales
    • 1 Accountant
    • 2 Receptionists

    7.2 Average Salary of Employees

     Personnel Plan      
    Year 1 Year 2 Year 3
    Manager $40,000 $44,000 $48,400
    Certified Lifeguards $182,000 $200,200 $220,220
    Certified Swimming Instructors $120,000 $132,000 $145,200
    General Cleaners $150,000 $165,000 $181,500
    Technician $40,000 $44,000 $48,400
    Web Developer $15,000 $16,500 $18,150
    Social Media Manager $15,000 $16,500 $18,150
    Sales Executives $30,000 $33,000 $36,300
    Accountant $15,000 $16,500 $18,150
    Receptionist $30,000 $33,000 $36,300
    Total Salaries $637,000 $700,700 $770,770

    Financial Plan

    Increasing your return on investment requires that you develop an adequate financial plan for your business. Therefore, it should be included as a part of your business plan.

    So whether you are developing a business plan for video production or a water park business plan sample like this one, a financial plan is a must. It will help you find the cost to build a waterpark and will also aid you in achieving your small and long-term financial goals.

    Just increasing sales doesn’t ensure that your business has become successful and is yielding profits. To earn profits, it is essential to manage your operations timely and efficiently. To ensure that your business is not getting into a loss, you must carry out a detailed financial analysis while you create business plan cleaning service.

    In your financial plan, e.g., business plan movie selection, you have to identify how you will earn profits and cover development and maintenance costs for the business.

    Here we’re providing the detailed financial plan made for Grizzly Parks. It will give you an idea of the finances involved in a business.

    8.1 Important Assumptions

     General Assumptions      
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 8.12% 8.20% 8.26%
    Long-term Interest Rate 8.40% 8.44% 8.47%
    Tax Rate 24.03% 24.21% 24.60%
    Other 0 0 0

    8.2 Break-even Analysis

    Break-even Analysis - Water Park Business Plan Example

     Break-Even Analysis  
    Monthly Units Break-even 5340
    Monthly Revenue Break-even $132,500
    Assumptions:
    Average Per-Unit Revenue $231.00
    Average Per-Unit Variable Cost $0.62
    Estimated Monthly Fixed Cost $163,800
    Any questions? Get in Touch

    8.3 Projected Profit and Loss

     Pro Forma Profit And Loss    
    Year 1 Year 2 Year 3
    Sales $1,545,700 $1,900,593 $2,336,969
    Direct Cost of Sales $842,900 $982,821 $1,093,880
    Other $0 $0 $0
    TOTAL COST OF SALES $842,900 $982,821 $1,093,880
    Gross Margin $702,800 $917,771 $1,243,089
    Gross Margin % 45.47% 48.29% 53.19%
    Expenses
    Payroll $637,000 $700,700 $770,770
    Sales and Marketing and Other Expenses $145,000 $148,000 $156,000
    Depreciation $2,300 $2,350 $2,500
    Leased Equipment $0 $0 $0
    Utilities $2,900 $3,000 $3,100
    Insurance $2,100 $2,100 $2,100
    Rent $2,900 $3,000 $3,200
    Payroll Taxes $24,000 $25,000 $27,000
    Other $0 $0 $0
    Total Operating Expenses $816,200 $884,150 $964,670
    Profit Before Interest and Taxes ($113,400) $33,621 $278,419
    EBITDA ($113,400) $33,621 $278,419
    Interest Expense $0 $0 $0
    Taxes Incurred ($22,680) $6,724 $55,684
    Net Profit ($90,720) $26,897 $222,735
    Net Profit/Sales -5.87% 1.42% 9.53%

    8.3.1 Profit Monthly

    Profit Monthly - Water Park Business Plan Example

    8.3.2 Profit Yearly

    Profit Yearly - Water Park Business Plan Example

    8.3.3 Gross Margin Monthly

    Gross Margin Monthly - Water Park Business Plan Example

    Any questions? Get in Touch

    8.3.4 Gross Margin Yearly

    Gross Margin Yearly - Water Park Business Plan Example

    8.4 Projected Cash Flow

    Projected Cash Flow - Water Park Business Plan Example

     Pro Forma Cash Flow      
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $51,000 $55,080 $59,486
    Cash from Receivables $22,000 $23,760 $25,661
    SUBTOTAL CASH FROM OPERATIONS $73,000 $79,570 $85,936
    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 $74,000 $79,000 $85,000
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending $42,000 $42,000 $45,000
    Bill Payments $27,000 $28,000 $31,000
    SUBTOTAL SPENT ON OPERATIONS $69,000 $70,000 $76,000
    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 $69,000 $74,520 $80,482
    Net Cash Flow $21,000 $23,000 $25,000
    Cash Balance $27,000 $30,000 $33,000

    8.5 Projected Balance Sheet

     Pro Forma Balance Sheet    
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $275,000 $308,000 $338,800
    Accounts Receivable $24,000 $26,880 $30,213
    Inventory $4,300 $4,816 $4,900
    Other Current Assets $1,000 $1,000 $1,000
    TOTAL CURRENT ASSETS $282,000 $315,840 $355,004
    Long-term Assets
    Long-term Assets $10,000 $10,000 $10,000
    Accumulated Depreciation $19,400 $21,728 $24,444
    TOTAL LONG-TERM ASSETS $24,400 $27,328 $30,744
    TOTAL ASSETS $294,000 $329,280 $370,440
    Liabilities and Capital Year 4 Year 5 Year 6
    Current Liabilities
    Accounts Payable $18,700 $20,944 $23,541
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $19,000 $21,280 $23,919
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $15,000 $16,800 $18,883
    Paid-in Capital $30,000 $30,000 $31,000
    Retained Earnings $53,000 $57,770 $63,547
    Earnings $193,400 $210,806 $231,887
    TOTAL CAPITAL $285,000 $310,650 $341,715
    TOTAL LIABILITIES AND CAPITAL $300,000 $329,280 $370,440
    Net Worth $293,400 $319,806 $351,787

    8.6 Business Ratios

     Ratio Analysis        
    Year 1 Year 2 Year 3 INDUSTRY PROFILE
    Sales Growth 7.25% 8.03% 8.90% 3.00%
    Percent of Total Assets
    Accounts Receivable 9.21% 10.20% 11.31% 9.80%
    Inventory 5.39% 5.97% 6.62% 9.90%
    Other Current Assets 2.11% 2.34% 2.59% 2.40%
    Total Current Assets 149.80% 151.00% 152.00% 158.00%
    Long-term Assets 11.55% 11.60% 11.64% 12.00%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.90% 4.94% 4.98% 4.34%
    Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
    Total Liabilities 7.59% 7.65% 7.72% 7.38%
    NET WORTH 100.45% 101.25% 102.19% 110.00%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 94.60% 97.15% 99.87% 99.00%
    Selling, General & Administrative Expenses 93.56% 96.09% 98.78% 97.80%
    Advertising Expenses 1.52% 1.56% 1.60% 1.40%
    Profit Before Interest and Taxes 41.50% 42.62% 43.81% 33.90%
    Main Ratios
    Current 34 35 36 32
    Quick 33 33.8 34.645 33
    Total Debt to Total Assets 0.18% 0.18% 0.17% 0.40%
    Pre-tax Return on Net Worth 74.08% 74.89% 75.00% 75.00%
    Pre-tax Return on Assets 96.30% 101.12% 106.17% 111.30%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 33.56% 34.60% 35.67% N.A.
    Return on Equity 55.80% 57.53% 59.31% N.A.
    Activity Ratios
    Accounts Receivable Turnover 7.7 7.8 7.8 N.A.
    Collection Days 100 100 100 N.A.
    Inventory Turnover 32.4 34.02 35 N.A.
    Accounts Payable Turnover 15.6 16 16.3 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 2.5 2.5 2.6 N.A.
    Debt Ratios
    Debt to Net Worth -0.04 -0.03 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $244,000 $257,664 $272,093 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.85 0.87 0.89 N.A.
    Current Debt/Total Assets 1% 0% 0% N.A.
    Acid Test 29 29.12 29.16 N.A.
    Sales/Net Worth 2.1 2.2 2.2 N.A.
    Dividend Payout 0 0 0 N.A.

    FAQ

    1. Are water parks profitable?

    Water parks are very profitable because they have a short development period. They also return the investment by the end of the first two or three years.

    1. How do I start a water park business?

    You can start a water park business by doing research and developing a strong water park business plan. You can follow this water park business plan example to get started.

    1. How much is a water park worth?

    The worth and water park project cost for development depends on many factors such as area, equipment, and range of services. But according to TRUiC, it costs around $250-$600 per square foot.

    1. What makes a water park successful?

    Like any other business, the success of a water park depends on how well managed the business idea and implementation is. You can ensure this by following a solid business park plan water.

    Download Water Park Business Plan Sample in pdf

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    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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