Indoor Playground Business Plan
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Below is a template to help you create each section of your Indoor Playground business plan.
Executive Summary
Business Overview
Fun Space is a startup indoor playground business located in Kansas City, Missouri. The company is founded by Christine Gregory, an indoor playground manager with over ten years of managerial experience working at KC Indoor Play. Christine has garnered a reputation for being a positive role model for her employees and a dedicated leader. She is confident that her ability to effectively manage a team of employees, build rapport with customers, and maintain a fun, safe, and profitable operation will help her to quickly attract customers and employees to her new indoor playground. Christine plans on recruiting a team of highly qualified professionals to help manage the day to day complexities of running an indoor playground – marketing and sales, child supervision, party and event hosting, playground maintenance, and financial management.
Fun Space will provide a unique indoor play environment for children ages 4-12 and a quiet room for parents to enjoy some downtime. The Fun Space indoor playground will be the ultimate choice in Kansas City for parents looking for a clean, safe, and educational option for their kids.
Product Offering
The following are the products and services that Fun Space will provide:
- Open Play Sessions
- Arcade
- Children’s Parties
- Classes/Guided Activities
- Drop-In Daycare
- Quiet Room for Parents
- Retail: Toys and Games
- Snacks and Beverages
Customer Focus
Fun Space will target parents and caregivers of children ages 4-12 in Kansas City. The company will target parents who are looking for a fun way for their children to develop physical fitness and social skills while participating in educational activities. The company will also target parents looking for a hassle-free party venue to host their childrens’ birthday parties or other events. No matter the customer, Fun Space will deliver the best service, pricing, and peace of mind that their children will have fun in a clean, safe, and welcoming environment.
Management Team
Fun Space indoor playground will be owned and operated by Christine Gregory. She has recruited her former assistant manager, Eric Nichols, to help manage the indoor playground and operations.
Christine Gregory is a graduate of the University of Missouri with a Bachelor’s degree in Business Management. She has been working at a local indoor playground company for over a decade. Christine has garnered a reputation for being a positive role model for her employees and a dedicated leader. She is confident that her ability to effectively manage a team of employees, build rapport with customers, and maintain a fun, safe, and profitable operation will help her to quickly attract customers and employees to her new indoor playground.
Eric Nichols has been Christine Gregory’s loyal assistant manager for over five years at a local indoor playground. Christine relies strongly on Eric’s reliability, organizational skills, and commitment to excellence in customer service that will be essential for the new indoor playground to run smoothly.
Success Factors
Fun Space will be able to achieve success by offering the following competitive advantages:
- Friendly and highly qualified staff of professionals trained in childcare, safety, early childhood education, and physical fitness who will supervise children and lead group activities.
- Wide range of activities and services available to exceed the expectations of both parents and children.
- Fun Space indoor playground offers the best pricing in Kansas City. The pricing structure provides the most options for parents and is more cost effective than the competition.
Download the Indoor Playground business plan template (including a full financial model) to your computer here <–
Financial Highlights
Fun Space indoor playground is seeking $250,000 in debt financing to launch its indoor playground. The funding will be dedicated towards securing the indoor playground space and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs. The breakout of the funding is below:
- Indoor playground build-out: $50,000
- Equipment, supplies, and materials: $30,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
The following graph below outlines the pro forma financial projections for Fun Space indoor playground.
Company Overview
Who is Fun Space?
Fun Space is a newly established indoor playground in Kansas City, Missouri. Fun Space will provide the best indoor play options for children ages 4-12. The indoor playground will focus on fun, educational activities for kids that will support their physical fitness and social development. Fun Space will also offer services for parents including a quiet room that they can retreat to for a little downtime, to get some work done, or to watch their kids play. There will be guided activities for parents to do with their kids and educational classes for each age group. In addition to its daily activities, Fun Space will also host birthday parties and other events on the weekends.
The indoor playground will be staffed with professionals highly qualified and experienced in childcare, safety, education, and fitness. Fun Space staff remove all concerns of parents by providing a welcoming environment that is safe, clean, and educational. Fun Space indoor playground will be the ultimate fun choice for children and value for parents.
Fun Space indoor playground History
Fun Space is owned and operated by Christine Gregory, an indoor playground manager with over ten years of managerial experience working at KC Indoor Play. Christine is a dedicated leader with an ability to effectively manage a team of employees, build rapport with customers, and maintain a fun, safe, and profitable operation. These skills will help her to quickly attract customers and employees to her new indoor playground.
Since incorporation, Fun Space indoor playground has achieved the following milestones:
- Registered Fun Space, LLC to transact business in the state of Missouri.
- Has been approved for all required licenses and permits to run an indoor playground.
- Has a contract in place to lease a 10,000 square foot facility.
- Reached out to multiple playground equipment companies to get quotes and begin the design process.
- Began recruiting a staff of accountants, marketers, childcare providers, and other indoor playground personnel to work at Fun Space.
Fun Space indoor playground Services
The following are the products and services that Fun Space will provide:
- Daily Open Play Sessions
- Arcade
- Children’s Parties
- Classes/Guided Activities
- Drop-In Daycare
- Quiet Room for Parents
- Retail: Toys and Games
- Snacks and Beverages
Industry Analysis
The indoor playground industry in the United States is valued at $658M with an estimated 667 establishments in operation across the nation. Major market segments include families with children ages 0-9, families with children ages 10-12, and families with children ages 13-18.
The main sources of revenue for industry operators are the entry fees and ticket sales, followed by food and beverage sales, and lastly merchandise sales. Market drivers include an increase in disposable income and fitness awareness. Indoor playground industry operators can maintain a competitive advantage by providing competitive pricing, extended hours, or activity options the competition does not offer.
Download the Indoor Playground business plan template (including a full financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Fun Space will target parents and caregivers of children ages 4-12 in Kansas City. The company will target parents who are looking for a fun way for their children to develop physical fitness and social skills while participating in educational activities. The indoor playground will also target parents looking for a hassle-free party venue to host their childrens’ birthday parties or other events. No matter the customer, Fun Space will deliver the best service, pricing, and peace of mind that their children will have fun in a clean, safe, and welcoming environment.
The precise demographics for Kansas City, Missouri are:
| Total | Percent | |
|---|---|---|
| Total population | 117,270 | 100% |
| Male | 57,542 | 49.1% |
| Female | 59,728 | 50.9% |
| Under 5 years | 5,911 | 5.0% |
| 5 to 9 years | 8,077 | 6.9% |
| 10 to 14 years | 9,214 | 7.9% |
| 15 to 19 years | 8,730 | 7.4% |
| 20 to 24 years | 6,279 | 5.4% |
| 25 to 34 years | 13,937 | 11.9% |
| 35 to 44 years | 13,654 | 11.6% |
| 45 to 54 years | 17,983 | 15.3% |
| 55 to 59 years | 8,546 | 7.3% |
| 60 to 64 years | 6,636 | 5.7% |
| 65 to 74 years | 12,236 | 10.4% |
| 75 to 84 years | 4,463 | 3.8% |
| 85 years and over | 1,604 | 1.4% |
Customer Segmentation
Fun Space will primarily target the following customer profiles:
- Parents/caregivers of children ages 4-12
- Parents/caregivers looking for a party/event venue
- Parents/caregivers looking for a safe, clean, educational, fun place for their children to play
Competitive Analysis
Direct and Indirect Competitors
Fun Space indoor playground will face competition from other companies with similar business profiles. A description of each competitor company is below.
KC Indoor Play
KC Indoor Play is a fun indoor playground for children ages 2-10. The indoor playground is conveniently located in a busy retail district in Kansas City, close to a childrens’ clothing shop and a toy store. KC Indoor Play is able to provide a wide variety of services for parents and children. The company’s offerings include educational classes for different age groups, free play, daycare, and an arcade. KC Indoor Play also hosts birthday parties and other events. KC Indoor Play’s promise is to deliver quality service that will keep both children and parents wanting to come back. KC Indoor Play’s team of experienced childcare professionals assures children are supervised by highly trained playground monitors to ensure safety and fun.
Kidz Play Place
Kidz Play Place is a Kansas City-based indoor playground conveniently located within a five- mile radius of three elementary schools. Kidz Play Place provides a unique indoor playground environment for children ages 4-13 that includes a small water park, arcade games, and trampolines. The owners of Kidz Play Place are former childcare professionals so they know what appeals to kids and parents alike. Parents can purchase open play time for their children in 2-hour time slots. Season passes are also available and will save customers 20% off their purchase.
Kary’s Kids Indoor Playground
Kary’s Kids Indoor Playground is a Kansas City indoor playground that provides educational games, classes, and events for children ages 0-10. The company is run by party-planning experts who have years of experience planning and hosting childrens’ parties. Parents can rest assured their children are well-supervised and the playground is safe and clean. Children can enjoy free-play sessions, an arcade, and educational games. Parents can also drop their children off for full-day and half-day supervision at Kary’s Kids daycare.
Download the Indoor Playground business plan template (including a full financial model) to your computer here <–
Competitive Advantage
Fun Space indoor playground will be able to offer the following advantages over their competition:
- Friendly, knowledgeable, and highly qualified staff to include professionals trained in childcare, safety, early childhood education, and physical fitness who will supervise children and lead group activities.
- Wide range of offerings available to exceed the expectations of both parents and children.
- Fun Space indoor playground offers the best pricing in Kansas City. The pricing structure provides the most options for parents and is more cost effective than the competition.
Marketing Plan
Brand & Value Proposition
Fun Space indoor playground will offer the unique value proposition to its customers:
- Highly-qualified team of skilled employees to supervise open play sessions, lead educational activities, and host fun parties, all while ensuring the safety, security, and wellbeing of the children at all times.
- Unbeatable pricing – Fun Space indoor playground has multiple pricing options to give parents flexibility when choosing which services they want to purchase. Parents can pay per session, per week, or per season for open play sessions, daycare, and educational programs. There is also an a la carte option for parents who want to purchase one specific activity or play area.
Promotions Strategy
The promotions strategy for Fun Space indoor playground is as follows:
Word of Mouth/Referrals
Christine Gregory has built up an extensive list of contacts over the years by providing exceptional service to her customers. Many of these contacts have communicated to Christine that they kept bringing their kids back to her previous place of employment because they were happy with the service she was providing. Once Christine advised them she was leaving to open her own indoor playground, many have expressed interest in coming to Fun Space and help spread the word of the new location to their friends and families.
Professional Associations and Networking
Fun Space indoor playground will become a member of professional associations such as the National Indoor Playground and Cafe Association and the Association of Play Industries. The company will focus networking efforts on expanding its customer base.
Print Advertising
Fun Space indoor playground will invest in professionally designed print ads to display in programs or flyers at industry networking events, and to put in magazines, newspapers, and direct mailers.
Website/SEO Marketing
Fun Space indoor playground will employ an in-house marketing director to design and maintain the company website. The website will be well organized, informative, and list all the services the indoor playground will offer. The marketing director will also manage Fun Space’s website presence with SEO marketing tactics so that when someone types in the Google or Bing search engine “Kansas City indoor playground” or “indoor playground near me”, Fun Space indoor playground will be listed at the top of the search results.
Social Media Marketing/Influencer Marketing
The company will create social media accounts on multiple platforms including Facebook, Instagram, TikTok, and YouTube. The marketing director will manage the accounts and maintain an active presence to promote the playground. Fun Space will recruit social media influencers such as busy parents who have a loyal following on social media to help promote the indoor playground.
Pricing
The pricing of Fun Space indoor playground will be moderate and on par with competitors. However, the company will offer a wider variety of pricing packages and options to give customers flexibility so they feel they receive value when purchasing the company’s services.
Operations Plan
The following will be the operations plan for Fun Space indoor playground.
Operation Functions:
- Christine Gregory will be the Owner and Manager of the company. She will oversee all staff and customer relations. Christine has spent the past year recruiting the following staff:
- Eric Nichols – Assistant Manager who will co-manage the staff and oversee the day to day operations of the playground.
- Brandon Scott – Bookkeeper/Accountant who will provide all budgeting, accounting, tax payments, and financial reporting.
- Debra Alexander – Marketing Director who will provide all sales, marketing, and PR campaigns.
- Brian Baker – Event Coordinator who will plan and oversee all parties and events hosted by Fun Space.
Download the Indoor Playground business plan template (including a full financial model) to your computer here <–
Milestones:
Fun Space indoor playground will have the following milestones complete in the next six months.
9/1/2022 – Finalize contract to lease indoor playground space.
9/15/2022 – Finalize personnel and staff employment contracts for the management team.
10/1/2022 – Finalize contracts with playground equipment suppliers.
10/15/2022 – Begin build-out of the indoor playground.
11/22/2022 – Begin networking at industry events and implementing the marketing campaign.
12/1/2022 – Fun Space indoor playground opens for business.
Management Team
Fun Space indoor playground will be owned and operated by Christine Gregory. She has recruited her former assistant manager, Eric Nichols, to help manage the indoor playground and operations.
Christine Gregory is a graduate of the University of Missouri with a Bachelor’s degree in Business Management. She has been working at a local indoor playground for over a decade. Christine has garnered a reputation for being a positive role model for her employees and a dedicated leader. Christine is confident that her ability to effectively manage a team of employees, build rapport with customers, and maintain a fun, safe, and profitable operation will help her to quickly attract customers and employees to her new indoor playground.
Eric Nichols has been Christine Gregory’s loyal assistant manager for over five years at the former indoor playground. Christine relies strongly on Eric’s reliability, organizational skills, and commitment to excellence in customer service that will be essential for the new indoor playground to run smoothly.
Financial Plan
Key Revenue & Costs
The revenue drivers for Fun Space indoor playground are the indoor playground fees that will be charged for open play sessions, classes, toys, snacks, and parties. Customers will be able to choose from a variety of pricing options including tiered packages, a la carte, and season passes.
The cost drivers will be the overhead costs required in order to staff an indoor playground. The expenses will be the payroll cost, rent, utilities, supplies, and marketing materials.
Funding Requirements and Use of Funds
Fun Space indoor playground is seeking $250,000 in debt financing to launch its indoor playground. The funding will be dedicated towards securing the indoor playground space and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs. The breakout of the funding is below:
- Indoor playground build-out: $50,000
- Equipment, supplies, and materials: $30,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
Download the Indoor Playground business plan template (including a full financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required to achieve the revenue and cost numbers in the financials and pay off the startup business loan.
- Number of 30-minute sessions per month: 6,500
- Average fees per month: $60,000
- 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 |
Indoor Playground Business Plan FAQs
What Is an Indoor Playground Business Plan?
An indoor playground business plan is a plan to start and/or grow your indoor playground 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 Indoor Playgrounds?
There are a number of different kinds of indoor playgrounds, some examples include: Bouncy Structures, Trampoline Park, and Variety Entertainment.
How Do You Get Funding for Your Indoor Playground Business Plan?
Indoor playgrounds are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. This is true for a business for an indoor playground or a play cafe business plan.
What are the Steps To Start an Indoor Playground Business?
Starting an indoor playground 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 Indoor Playground Business Plan - The first step in starting a business is to create a detailed indoor playground 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 indoor playground 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 indoor playground business is in compliance with local laws.
3. Register Your Indoor Playground Business - Once you have chosen a legal structure, the next step is to register your indoor playground 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 indoor playground 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 Indoor Playground Equipment & Supplies - In order to start your indoor playground 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 indoor playground 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.