Opening an indoor play park: key elements for your successCharlotte RAMBERT
Do you want to embark on the adventure of indoor play parks?
With over 25 years of experience in leisure equipment, Play In Business provides you with the key elements in this article to optimize your success.
First and foremost, you need to evaluate the profitability of your indoor play park project through a serious market study and a business plan. You cannot do without either. Explanations.
Indoor Play Park: assessing profitability to optimise your success
There are certain elements you need to consider to define and optimize your project. Two key steps are essential to determine if your project is viable and will be profitable: the market study and the business plan.
The market study is useful to understand the market you will operate in and to target a need you will address.
The business plan helps establish the business strategy as well as the economic model, allowing you to assess the long-term viability of your project. It’s safe to say that these elements are crucial for verifying the profitability of your indoor play park project.
Market study to master the commercial environment
You probably know that conducting a market study to open your indoor play park requires time and personal investment. If you thought you could do without it because your idea is brilliant, we are sorry to say, but it’s impossible. Even though the demand for leisure parks, especially indoor ones, is high, you need to master the market you will operate in to evaluate your revenue and understand the profitability of your indoor play area.
Your market study for opening your indoor play park should contain as much qualitative information as possible to accurately assess the viability of your project. Visiting other indoor play areas, whether they are your direct competitors or not, whether they have a high attendance rate or not, is an important step. Knowing what works well and what doesn’t is informative. Your analysis should focus on:
- Demand: What are the consumption habits, mobility, budget, motivations, etc., of your target clientele?
- Supply: Will your project meet the demand? Does the competition already fulfill it?
- Suppliers: What will be your relationships with them?
- Environment: What are the geographical, social, economic, and political factors that can influence your activity to some extent?
- Regulations: Are you familiar with the rules related to establishments receiving the public (ERP), fire regulations in France for modular play equipment, accessibility for people with disabilities, regulations regarding the operator’s liability, regulatory signage, maintenance and upkeep?
Other elements to analyze: usable area, parking, accessibility, capacity, range of services offered, activities based on age groups, pricing, number of employees, communication, safety, cleanliness maintenance, reception area, comfort, etc.
If, however, the magnitude of the task intimidates you somewhat, Play In Business offers training, especially on market studies.
Business plan for creating your business
Once the market study validates your project, showing that your indoor play park has potential compared to the competition, it’s time to move on to the business plan. This document is used to establish a business forecast to create your company. It presents your project in a practical and accounting manner, allowing you to obtain the necessary funding for the creation of your indoor play park.
- The executive summary: a concise presentation of the project to generate the interest of investors.
- Presentation of the project’s participants and their added value.
- General presentation of the project: your observations, motivations, objectives.
- Economic study: conclusions from the market study, business model, strategy, projected turnover…
- Financial study: investment tables, initial financing plan, profit and loss statement for the first three years, cash flow plan, financing plan…
If the task seems a bit daunting, Play In Business provides a comprehensive 4-volume downloadable guide that allows you to fully grasp the challenges of creating an indoor play park. And for any questions, feel free to contact us!