Family Entertainment Center Business Plan
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Below is a template to help you create each section of your Family Entertainment Center business plan.
Executive Summary
Business Overview
Playtopia Family Fun Center is a startup family entertainment center located in Pittsburgh, Pennsylvania. The business is founded by Jess Masters, a former manager of a franchise family entertainment center for ten years. Jess made multiple contacts while networking with executives in the Pittsburgh area, who have championed the excellence of Jess’s work and leadership skills with his fellow employees at the franchise business. Ten former customers of the franchise entertainment center have agreed to sponsor Jess in this new venture, committing to spread the news of the startup business launch and refer their friends and neighbors to the Playtopia Family Fun Center.
Playtopia Family Fun Center will provide a comprehensive array of games and entertainment options for the entire family. It will be a one-stop shop for everything related to FUN and a central point of family playtime, where families can simply have a great time together without interruption or distractions.
Product Offering
The following are the services that Playtopia Family Fun Center will provide:
- Exciting video console and arcade-style games
- Basketball with token prizes
- Pinball machines
- Air Hockey tables
- Foosball tables
- Pool tables
- Bowling lanes (12)
- Vending machine snacks and beverages
- Playtopia Pizza Works Restaurant
Customer Focus
Playtopia Family Fun Center will target all individuals and families in the Pittsburgh region. An additional target will be party planners and event coordinators who will want to rent the entire center for a group party or event. Also targeted will be churches, synagogues and other community gathering places where families may want to play games together in such groups. No matter which client or how many client guests may appear, the Playtopia Family Fun Center will cater to them all with high-quality games, an enjoyable atmosphere and plenty of delicious food favorites to share.
Management Team
Playtopia Family Fun Center will be owned and operated by Jess Masters. He has recruited his former manager at the franchised entertainment center, Steve Carlton, to be his Executive Manager, overseeing all staff and maintenance crews. Steve will also oversee office staff and manage the bowling alley maintenance.
Jess Masters is a graduate of University of Pennsylvania with a Bachelor’s degree in Organizational Leadership. He has applied his learning in multiple ways since earning the degree, most often in the expressions of forward-looking ideas and encouragement and leadership of staff members.
Steve Carlton is a graduate of Pennsylvania State College, where he earned an Associate of Arts degree in Accounting. He is adept with bookkeeping, accounting, and all forms of qualitative and quantitative data; he will assist with these roles in addition to being the Executive Manager.
Success Factors
Playtopia Family Fun Center will be able to achieve success by offering the following competitive advantages:
- Friendly, knowledgeable, and highly qualified team at the Playtopia Family Fun Center.
- Comprehensive menu of products and services; including video and arcade games, bowling, and other table games. A pizza restaurant and snack vending machines complete the amenities for the center.
- A cordoned-off section of the games area is designed for toddlers aged 20 months and younger. This provides a unique area for play and ensures parents or caregivers won’t have to be concerned about older children injuring their toddlers while at play.
- Playtopia Family Fun Center offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition. Playtopia Family Fun Center offers discounts when a “bargain bag” is purchased, including at least 10 free tokens to play, along with discounts for food.
Download the Family Entertainment Center business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
Playtopia Family Fun Center is seeking $200,000 in debt financing to launch its Playtopia Family Fun Center. The funding will be dedicated toward securing the office space adjacent to the entertainment center and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and website costs. The breakout of the funding is below:
- Office space build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
The following graph outlines the financial projections for Playtopia Family Fun Center.
Company Overview
Who is Playtopia Family Fun Center?
Playtopia Family Fun Center is a newly established full-service family entertainment center in Pittsburgh, Pennsylvania. Playtopia Family Fun Center will be the most reliable, cost-effective, and efficient choice for individuals, families and party groups in Pittsburgh and the surrounding communities. Playtopia Family Fun Center will provide a comprehensive menu of exciting game services for all players with tokens to utilize. Their full-service approach includes a comprehensive slate of table games, arcade and pinball games, and a full-sized bowling alley, as well as a pizza restaurant for the entire family.
Playtopia Family Fun Center will be able to entertain the entire family, whether summertime of in the coldest months of a snowy winter. The team of professionals are highly qualified and experienced in Playtopia Family Fun Center and staffed to attend to all gamers and game players among the family members. Even the toddlers will have a special place to play. Playtopia Family Fun Center removes all headaches and issues of the outside weather elements, high costs of individual games in other venues, and ensures all issues are taken care of expeditiously while delivering the best customer service.
Playtopia Family Fun Center History
Since incorporation, Playtopia Family Fun Center has achieved the following milestones:
- Registered Playtopia Family Fun Center, LLC to transact business in the state of Pennsylvania.
- Has a contract in place at one of the large buildings, where the entertainment center will be headquartered with an additional office space included.
- Reached out to numerous contacts to include former customers who have agreed to help spread the word of the new venture.
- Began recruiting a staff of 6 employees and office personnel to work at Playtopia Family Fun Center.
Playtopia Family Fun Center Services
The following will be the services Playtopia Family Fun Center will provide:
- Exciting video console and arcade-style games
- Basketball with token prizes
- Pinball machines
- Air Hockey tables
- Foosball tables
- Pool tables
- Bowling lanes (12)
- Vending machine snacks and beverages
- Playtopia Pizza Works Restaurant
Industry Analysis
The family entertainment industry is expected to grow over the next five years to over $46,840 million by 2028.
The growth will be driven by the increased numbers of families who want to play games and enjoy time together.
The growth will be driven by parties and event organizers who want unique experiences.
The growth of the population, with families having more children in each family unit.
The growth of the desire for entertainment away from home and away from electronic tablets.
Costs will likely be reduced as supply chains reopen and the flow of supplies, games, furnishings and more continue to become more available for purchase.
Download the Family Entertainment Center business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Playtopia Family Fun Center will target individuals in Pittsburgh, Pennsylvania of all ages. They will also target families of three people or more. They will target party planners and event coordinators to secure large groups (up to 50 people) in the Playtopia Family Fun Center in Pittsburgh, Pennsylvania. They will also target dating couples and other young adult groups.
The precise demographics for Playtopia Family Fun Center 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
Playtopia Family Fun Center will primarily target the following customer profiles:
- Families
- Young adults
- Couples
- Teenagers aged 16-18, young teens and tweens
- Party groups and event attendees
- Party planners and event coordinators
- Community groups seeking an event venue
Competitive Analysis
Direct and Indirect Competitors
Playtopia Family Fun Center will face competition from other companies with similar business profiles. A description of each competitor company follows:
Funland Family Center
Funland Family Center, an LLC, owns and operates a family entertainment center that is located in a suburban mall about thirty miles from the city of Pittsburgh. Games and entertainment include: pool tables, basketball hoops, driving console games, popular arcade games, and a snack bar. It targets individuals and families of all ages. There is an indoor obstacle course that attracts teens from the entire region in competitions and entertainment.
The owners of Funland Family Center are Henry and Patty Montrose. Henry manages client relations and makes all executive decisions. Patty manages all employees and oversees the maintenance and upkeep of the game area and snack bar inventory. The owners are almost ready to retire and at that time, will be turning the business over to their son, Happy Montrose, who is an executive accountant in Pittsburgh.
Adventure City Entertainment Center
Adventure City Entertainment Center was established in 2010 as the premier entertainment center in the city of Roseburg, a new community about twenty miles from Pittsburgh. Since establishing the business, the owner, Jason Murdock, has built additional game venues, including a Laser Tag arena and a multi-story ball pit for kids of all ages. The venue is extremely popular within the city of Roseburg; however, as the teens of 2010 have aged and moved on, the popularity of the venue has dropped. Jason Murdock is currently considering changing the venue into a Renaissance Faire location with a medieval theme and jousting knights.
Let’s Play Ball Event Center
Let’s Play Ball Event Center is a large venue of 20,000 square feet located in the northern area of Pittsburgh. It is entirely focused on indoor ball games of all kinds, including softball, basketball, soccer, and all other forms of ball games. With the winter months mostly covering the surrounding areas of Pittsburgh in deep snow or ice, the venue appeals to families who can drop off their children to play ball in one format or another. The venue offers an “Adventure Pass” on a monthly subscription so children can visit unlimited times during each month and all costs are covered. There are no restaurants; however, vending machines with snacks and beverages are available.
Let’s Play Ball Event Center is owned and operated by Tig Tyler. His motto is, “Play a Ball Game Every Day.” Tig has seven employees and a manager, Cindy Stevenson, who is the Administrative Manager as well as the Human Resources Manager. She oversees the office and banking duties.Let’s Play Ball Event Center opened in 2015 and has maintained a steady stream of visitors each winter. In the summer, the event center is closed.
Download the Family Entertainment Center business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Playtopia Family Fun Center will be able to offer the following advantages over their competition:
- Friendly, knowledgeable, and highly-qualified team at the Playtopia Family Fun Center.
- Comprehensive menu of products and services; including video and arcade games, bowling, and other table games. A pizza restaurant and snack vending machines complete the amenities for the center.
- A cordoned-off section of the games area is designed for toddlers, aged 20 months and younger. This provides a unique area for play and ensures parents or caregivers won’t have to be concerned about older children injuring their toddlers while at play.
- Playtopia Family Fun Center offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.
- Playtopia Family Fun Center offers discounts when a “bargain bag” is purchased, including at least 10 free tokens to play, along with discounts for food.
Marketing Plan
Brand & Value Proposition
Playtopia Family Fun Center will offer the unique value proposition to its clientele:
- Highly-qualified team of skilled employees who are able to guide and aid children of all ages in playing games and activities.
- A unique, cordoned-off section of the games area is designed for toddlers, aged 20 months and younger. This provides a unique area for play and ensures parents or caregivers won’t have to be concerned about older children injuring the toddlers while at play.
- A special “Mom’s Rest Area” is designed for moms to watch their children while gathering with other moms to enjoy conversation or a beverage.
- Unbeatable pricing for customers of Playtopia Family Fun Center. Playtopia Family Fun Center offers discounts when a “bargain bag” is purchased, including at least 10 free tokens to play, along with discounts for food. This is a cost-effective savings for parents as it ensures repeated visits by customers.
Promotions Strategy
The promotions strategy for Playtopia Family Fun Center is as follows:
Word of Mouth/Referrals
Playtopia Family Fun Center has built up an extensive list of contacts through the owner, Jess Masters, who, over the years, provided exceptional service and expertise to his customers at a franchise family fun center. Steve Carlton will follow him to his new company and help spread the word of Playtopia Family Fun Center.
Professional Associations and Networking
The professional associations and community gatherings offer excellent prospects for the event venue to be used at parties or themed events. Therefore, the association dues will be paid and networking will take place by both Jess and Steve. They will also leverage their former customer referrals to bring in new business via those avenues, as well.
Print Advertising
A direct mail piece will be designed and mailed to all households within a ten-mile radius of the new Playtopia Family Fun Center. Discounts during the first three months of business will be offered, with Bonus Bags discounted, as well. The direct mail piece will be utilized again within four months of the launch to scoop up additional customers who missed the first mailing.
Website/SEO Marketing
Playtopia Family Fun Center will utilize the benefits of their website by creating a well-organized, informative, and attractive page that lists all the activities to be found at Playtopia Family Fun Center. The website will also list their contact information and outline holiday specials, themed events, invitations to snow parties and other special attractions. Playtopia Family Fun Center’s website presence will also use SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Family fun company” or “Family center near me”, Playtopia Family Fun Center will be listed at the top of the search results.
Pricing
The pricing of Playtopia Family Fun Center will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.
Operations Plan
The following will be the operations plan for Playtopia Family Fun Center.
Operation Functions:
- Playtopia Family Fun Center will be owned and operated by Jess Masters. He will work exclusively on building client relations and moving the company forward in scope and sequence of growth.
- Jess has recruited his former manager at the franchised entertainment center, Steve Carlton, to be his Executive Manager, overseeing all staff and maintenance crews. Steve will also oversee office staff and manage the bowling alley maintenance.
- Patsy Dannon will be the Office Supervisor, overseeing the day-to-day office duties and running errands, along with acting as an assistant to Jess Masters.
Download the Family Entertainment Center business plan template (including a customizable financial model) to your computer here <–
Milestones:
Playtopia Family Fun Center will have the following milestones completed in the next six months.
- 5/1/202X – Finalize contract to lease entertainment and office space
- 5/15/202X – Finalize personnel and staff employment contracts for the Playtopia Family Fun Center
- 6/1/202X – Finalize distributor contracts for Playtopia Family Fun Center
- 6/15/202X – Begin networking at industry events
- 6/22/202X – Begin moving into Playtopia Family Fun Center and office
- 7/1/202X – Playtopia Family Fun Center opens for business
Management Team
Playtopia Family Fun Center will be owned and operated by Jess Masters. He has recruited his former manager at the franchised entertainment center, Steve Carlton, to be his Executive Manager, overseeing all staff and maintenance crews. Steve will also oversee office staff and manage the bowling alley maintenance.
Jess Masters is a graduate of University of Pennsylvania with a Bachelor’s degree in Organizational Leadership. He has applied his learning in multiple ways since earning the degree, most often in the expressions of forward-looking ideas and encouragement and leadership of staff members.
Steve Carlton is a graduate of Pennsylvania State College, where he earned an Associate of Arts degree in Accounting. He is adept with bookkeeping, accounting, and all forms of qualitative and quantitative data; he will assist with these roles in addition to being the Executive Manager.
Financial Plan
Key Revenue & Costs
The revenue drivers for Playtopia Family Fun Center are the fees they will charge for products and services purchased by customers for the use of the family center.
The cost drivers will be the overhead costs required in order to staff the entertainment center and office. The expenses will be the payroll cost, leasing fees, utilities, office supplies, and marketing materials.
Funding Requirements and Use of Funds
Playtopia Family Fun Center is seeking $200,000 in debt financing to launch its property management business. The funding will be dedicated towards securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:
- Office space build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
Download the Family Entertainment Center 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.
- Number of Customers Per Month: 1,500
- Average Fees per Month: $ 45,000
- Office Lease per Year: $100,000
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 |
Family Entertainment Center Business Plan FAQs
What Is a Family Entertainment Center Business Plan?
A family entertainment center business plan is a plan to start and/or grow your family entertainment center business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
What are the Main Types of Family Entertainment Center Businesses?
There are a number of different kinds of family entertainment center businesses, some examples include: Kids’ entertainment centers, Teen entertainment centers, Hotels, Water parks, and Theme parks.
How Do You Get Funding for Your Family Entertainment Center Business Plan?
Family Entertainment Center 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 a Family Entertainment Center Business?
Starting a family entertainment center 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 A Family Entertainment Center Business Plan - The first step in starting a business is to create a detailed family entertainment center 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 family entertainment center 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 family entertainment center business is in compliance with local laws.
3. Register Your Family Entertainment Center Business - Once you have chosen a legal structure, the next step is to register your family entertainment center 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 family entertainment center 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 Family Entertainment Center Equipment & Supplies - In order to start your family entertainment center 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 family entertainment center 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.