Escape Room Business Plan
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Below is a template to help you create each section of your Escape Room business plan.
Executive Summary
Business Overview
Escape PDX is a new escape room company located in Portland, Oregon. We offer three escape rooms all with unique and fun themes: museum heist, arcade, and casino. Each escape room has a series of puzzles, riddles, and challenges that customers need to solve in a specific amount of time in order to “escape” the room. All escape rooms can be booked online and we can hold up to six people in each room at a time. With a welcoming environment and unique challenges to solve, Escape PDX aims to become the number one escape room destination for customers in Portland, Oregon.
Escape PDX is a family-owned escape facility that is owned by Jared Browne. The business will be managed by Jared who has over 10 years of experience in the adventure entertainment industry. His in-depth knowledge and expertise will help Escape PDX favorably compete with other entertainment options in the area.
Product Offering
Escape PDX will offer three escape rooms with the following themes: museum heist, arcade, and casino. Each escape room is filled with puzzles, riddles, and challenges that our customers have to solve to escape the room. All the challenges are connected by a story that keeps our customers engaged throughout the process.
Customer Focus
Escape PDX will primarily offer its service to the residents living within a 20-mile radius of our location. We are located in a growing community of young professionals. As these types of adventure activities are favored by Gen Z and Millennials, the escape room will enjoy a robust market.
Management Team
Escape PDX is a family-owned escape facility that is owned by Jared Browne. The business will be managed by Jared who has over 10 years of experience in adventure entertainment. His in-depth knowledge and expertise will help Escape PDX favorably compete with other entertainment businesses in the area.
Success Factors
Escape PDX will be able to achieve success by offering the following competitive advantages:
- Management: Escape PDX’s management team has 10 years of adventure entertainment and marketing experience that allows them to market and serve customers in an improved and more sophisticated manner than the competitors.
- Relationships: Having lived in the community for 20 years, Jared Browne knows all of the local leaders, newspapers, and other influencers. As such, it will be relatively easy for Escape PDX to build brand awareness and an initial customer base.
- Great service at an affordable price: The complete array of escape room services offered by Escape PDX rivals many of our competitors. However, Escape PDX will offer these services at a much more affordable price.
- Location: Escape PDX’s location will be near the center of town, giving the company access to people going to and leaving the colleges, clubs, and passersby shopping in the city.
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Financial Highlights
Escape PDX is currently seeking $275,000 to launch its escape room. Specifically, these funds will be used as follows:
- Escape room design/build: $75,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $30,000
- Working capital: $10,000
The following graph below outlines the pro forma financial projections for Escape PDX.
Company Overview
Who is Escape PDX?
Escape PDX is a new escape room company located in Portland, Oregon. We offer three escape rooms all with unique and fun themes: museum heist, arcade, and casino. Each escape room has a series of puzzles, riddles, and challenges that customers need to solve in a specific amount of time in order to “escape” the room. All escape rooms can be booked online and we can hold up to six people in each room at a time. With a welcoming environment and unique challenges to solve, Escape PDX aims to become the number one escape room destination for customers in Portland, Oregon.
The escape room will be open from 9:00 am to midnight during weekends (Fridays to Sundays) and from noon until 9:00 pm every Monday through Thursday in order to accommodate the maximum number of players.
Escape PDX is a family-owned escape facility that is owned by Jared Browne. The business will be managed by Jared who has over 10 years of experience in the adventure entertainment industry. His in-depth knowledge and expertise will help Escape PDX favorably compete with other entertainment options in the area.
Escape PDX’s History
Upon surveying the local customer base and finding the potential location, Jared Browne incorporated Escape PDX as an S-Corporation on December 1st, 2022.
Jared has selected several possible locations and is currently undergoing due diligence on each to assess the most desirable location for the escape room.
Since incorporation, the company has achieved the following milestones:
- Found multiple options that can serve as the business location
- Developed the company’s name, logo, and website
- Contracted an escape room designer
- Determined equipment and inventory requirements
- Began recruiting key employees
Escape PDX’s Services
Escape PDX will offer three escape rooms with the following themes: museum heist, arcade, and casino. Each escape room is filled with puzzles, riddles, and challenges that our customers have to solve to escape the room. All the challenges are connected by a story that keeps our customers engaged throughout the process.
Industry Analysis
Escape rooms have become a popular form of entertainment in a short amount of time. Since their inception in the mid-2010s, they have exploded into pop culture and are now a very common activity for friends and families to enjoy. This popularity is expected to continue as hundreds of escape rooms across the country continue to be profitable.
Furthermore, a rise in disposable income has resulted in an upswing in demand for adventure experiences, such as escape rooms. Given the industry’s growing popularity, innovation is expected to enhance product development through things like VR integration, and mobile escape rooms.
According to Adroit Market Research, the Escape Room industry was valued at 2.90 billion in 2021 and is projected to grow at a compound annual growth rate of 15% from now until 2029. Very few other entertainment industries are expecting this growth rate, showing just how popular escape rooms are. Therefore, we expect that this will be a great time to start our company as we are sure to be profitable.
Download the Escape Room business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Escape PDX will serve residents living within a 20-mile radius of Portland, Oregon. The area it will serve is populated mostly by moderate to affluent people; as a result, they have the means to pay for escape rooms and other forms of adventure entertainment.
The precise demographics for Portland, Oregon are:
| Total | Percent | |
|---|---|---|
| Total population | 1,680,988 | 100% |
| Male | 838,675 | 49.9% |
| Female | 842,313 | 50.1% |
| 20 to 24 years | 114,872 | 6.8% |
| 25 to 34 years | 273,588 | 16.3% |
| 35 to 44 years | 235,946 | 14.0% |
| 45 to 54 years | 210,256 | 12.5% |
| 55 to 59 years | 105,057 | 6.2% |
| 60 to 64 years | 87,484 | 5.2% |
| 65 to 74 years | 116,878 | 7.0% |
| 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
The company will primarily target the following customer segments:
- Young Adults
- Students
- Tourists
Competitive Analysis
Direct and Indirect Competitors
Escape PDX will face competition from other companies with similar business profiles. A description of each competitor company is below.
Great Escape
Great Escape offers challenging, interactive escape rooms and immersive theater experiences, including large and immersive show designs, in-character performers, unique puzzles and audience interactions, and exciting storylines, that make for one-of-a-kind experiences.
Great Escape’s spacious lobby is great for company or group team building, events and parties. From helping a tour guide on a daring shipwreck scavenge of the historic sunken pirate ship the Whydah, helping a lead FBI agent crack the case on organized crime in the early 90’s in Boston, to exploring a long-forgotten Apothecary that was operational in the Old Corner Bookstore in the early 1700s, Great Escape’s show themes are based on real events and happenings.
Merlin’s Quests
Merlin’s Quests is the first escape room to be established in Portland, Oregon, the first to offer remote virtual escape rooms and now provides experiences all over the world. Merlin’s Quests offers fun, affordable escape experiences for people of all ages. Merlin’s Quests also partners with other companies and installs and operates experiences in their locations. As the ‘Escape Game’ industry grows, Merlin’s Quests aspires to maintain the most intricate and fun rooms. Through help from its participants and partners, Merlin’s Quests constantly upgrades and expands its services.
Puzzle Hunters
Puzzle Hunters offers the most immersive escape rooms Portland, Oregon has ever experienced. Whether people are looking for the best value, the most advanced tech, or the longest escape room anywhere in Portland, Oregon, they’ll find it right here! Whether it’s for team-building, holiday celebrations, or any sort of large group, Puzzle Hunters offers unique fun and the best value for group escape room experiences in Portland, Oregon.
Download the Escape Room business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Escape PDX enjoys several advantages over its competitors. These advantages include:
- Management: Escape PDX’s management team has 10 years of adventure entertainment and marketing experience that allows them to market and serve customers in an improved and more sophisticated manner than the competitors.
- Relationships: Having lived in the community for 20 years, Jared Browne knows all of the local leaders, newspapers, and other influencers. As such, it will be relatively easy for Escape PDX to build brand awareness and an initial customer base.
- Great service at an affordable price: The complete array of escape room services offered by Escape PDX rivals many of our competitors. However, Escape PDX will offer these services at a much more affordable price.
- Location: Escape PDX’s location will be near the center of town, giving the company access to people going to and leaving the colleges, clubs, and passersby shopping in the city.
Marketing Plan
Brand & Value Proposition
Escape PDX seeks to position itself as an exciting competitor in the escape room industry.
The Escape PDX brand will focus on the company’s unique value proposition:
- Offering three fun and unique escape rooms
- Convenient location
- Customer-focused environment
- Moderate price point
Promotions Strategy
Escape PDX expects its target market to be residents living within a 20-mile radius of the location. The company’s promotions strategy to reach the audience includes:
Advertisement
Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The company will advertise its products in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.
Social Media Marketing
Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The company will use social media to develop engaging content in terms of escape room and treasure hunt themes and customer reviews that will increase audience awareness and loyalty. Engaging with prospective clients and business partners on social media platforms like Facebook, Instagram, Twitter, and LinkedIn will also help understand changing customer needs.
Word of Mouth Marketing
Escape PDX will encourage word-of-mouth marketing from loyal and satisfied customers. The company will use recommendations and word-of-mouth marketing to grow its customer base through the network of its existing customers. The company will be incentivizing its existing customer base to encourage their friends to come and try their service for the first time.
Special Offers
Offers and incentives are an excellent approach to assisting businesses in replenishing the churn in their customer base that they lose each year. The company will introduce special offers to attract new consumers and encourage repeat purchases, which will be quite advantageous in the long run.
Pricing
Escape PDX’s pricing will be moderate, so customers feel they receive great value when visiting our escape rooms.
Operations Plan
The following will be the operations plan for Escape PDX.
Operation Functions:
- Jared Browne will be the Owner and President of the company. He will oversee all staff and manage the company’s operations. Jared has spent the past year recruiting the following staff:
- Sheila Browne– Administrative Assistant who will handle all the administrative functions for the company.
- Beth Browne – Marketing Manager who will provide all marketing for Escape PDX.
- Jared will also hire several staff members to operate the escape rooms and interact with customers.
Download the Escape Room business plan template (including a customizable financial model) to your computer here <–
Milestones:
Escape PDX expects to achieve the following milestones in the following six months:
- 01/202X Finalize lease agreement
- 02/202X Design and build out Escape PDX
- 03/202X Hire and train initial staff
- 04/202X Kickoff of promotional campaign
- 05/202X Launch Escape PDX
- 06/202X Reach break-even
Management Team
Escape PDX is a family-owned escape facility that is owned by Jared Browne. The business will be managed by Jared who has over 10 years of experience in adventure entertainment. His in-depth knowledge and expertise will help Escape PDX favorably compete with other entertainment businesses in the area.
Financial Plan
Key Revenue & Costs
Escape PDX’s revenues will come from the fees charged for using the escape rooms. The major costs for the company will be staff salaries. In the initial years, the company’s marketing spending will be high, as it establishes itself in the market.
Funding Requirements and Use of Funds
Escape PDX is currently seeking $275,000 to launch its escape room. Specifically, these funds will be used as follows:
- Escape room design/build: $75,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $30,000
- Working capital: $10,000
Download the Escape Room business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Annual lease costs: $100,000
- Average customers per day:
- Year 1: 20
- Year 2: 30
- Year 3: 50
- Year 4: 75
- Year 5: 100
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Escape Room Business Plan FAQs
What Is an Escape Room Business Plan?
An escape room business plan is a plan to start and/or grow your escape room business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your Escape Room business plan using our Escape Room Business Plan Template here.
What are the Main Types of Escape Room Businesses?
There are a number of different kinds of escape room businesses, some examples include: Linear escape room, Non linear escape room, and Scavenger hunt escape room.
How Do You Get Funding for Your Escape Room Business Plan?
Escape Room businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start an Escape Room Business?
Starting an escape room business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop An Escape Room Business Plan - The first step in starting a business is to create a detailed escape room business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your escape room business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your escape room business is in compliance with local laws.
3. Register Your Escape Room Business - Once you have chosen a legal structure, the next step is to register your escape room business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your escape room business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Escape Room Equipment & Supplies - In order to start your escape room business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your escape room business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
Learn more about how to start a successful escape room business: