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Indoor Playground Business Plan: A Guide to Going from Dream to Profit

Blog 3980

1: Market insights and strategic positioning-how will your playground stand out?

First of all, we have to have a clear understanding of the industry.

Industry overview and development trends: to tell the truth, the domestic children’s entertainment market this cake is not small, but also continues to grow. The core driving force is the increase in family investment in children’s education and entertainment, especially the 1 liberalization of the 2 child policy, which will increase the demand. After the epidemic, parents generally pay more attention to their children’s outdoor activities and social activities. Therefore, if your indoor playground can be safe, hygienic, and helpful to the physical and mental development of children, it will be more competitive. In the future, I see several directions: the integration of science and technology is inevitable, AR/VR interactive games, projects with educational attributes, and experiences with strong themes and full immersion will all be the trend. These are not just fancy, they can really enhance the “gold content” of the playground “.

Target customer analysis: Which 1 of children do you want to serve? This problem must be clearly thought out. Generally speaking, 0-12 years old, middle-and high-income families, community residents, this is not enough. We have to dig deeper. For example, can we focus on preschool children and add some early education elements? Or enlarge the parent-child interaction so that parents and children can have fun together? Or else, simply the whole theme playground, such as “Space Adventure” or “Ocean World. Only by depicting the user’s portrait clearly can you really know where their pain points are and what they need. For example, parents may want their children to learn while playing, or the playground has a complete catering package so that they can stay longer.

Competitive analysis and differentiation strategy: Looking around, you have to find out which competitors are around you, what are their good jobs? What are their shortcomings? Don’t just stare at those chain brands, and you should also pay attention to the small amusement parks in the community. Find the market gap, this is the key. If everyone is engaged in the kind of “naughty castle”, can you consider a more distinctive theme and more interactive? What is your “unique skill”? Is it exclusive equipment? Or invincible service? Or regular special activities? Remember, price war is not far away. We have to build our own core competitiveness, let your playground stand out among many choices, and let parents think of you first when they want to take their children to play.

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2: The cornerstone of operations-the creative into reality

Site selection and site planning:

Location? This stuff is really the key to success or failure. You have to figure out a few points:

Traffic: Popularity is wealth! Shopping malls, shopping centers, and large communities are nearby, which is a well-off prime location.

Convenience of transportation: buses, subways, parking lots, don’t let parents feel exhausted in order to send their children to play 1 trips.

peripheral matching: do you have anything to eat, go shopping and watch? a family of young and old can solve the problem of eating, drinking and having fun in one stop. who is not happy?

Rental cost: everyone knows this. budget is the bottom line. don’t mess it up.

The area of the site is probably: small 500 square meters, medium 1000 square meters and large 2000 square meters, depending on how you plan to position it. Zoning planning must be clear:

Play area: core! According to the age group and stimulation degree, don’t mix 1 porridge.

Rest Area: Parents also have to rest their feet. Comfortable sofas and charging ports can add a lot of points.

Catering area: make some simple meals and drinks, and you can earn more by the way.

Toilet: clean and tidy is the basic, children’s toilet and sink, this detail too affect the experience!

As for the design, my idea is that the theme should be prominent, the color should be lively, and a little story is better. In short, to let the children want to rush in at a glance, parents can also rest assured.

equipment procurement and safety standards:

The equipment is your “housekeeping baby” and cannot be sloppy at all.

All kinds of amusement equipment: naughty castle is standard, climbing frame, slide, trampoline, ocean ball pool, these classic models must not be less. At present, those AR and VR interactive projects can also be considered for addition, which is quite eye-catching.

Equipment supplier selection: must find a reputation, qualified manufacturers. The greed for small gains and big losses, safety is no laughing matter.

Quality certification and safety standards: remember to ask if there are any international certifications such as ISO9001 and CE. Don’t be too troublesome, this is responsible for the children and also for yourself.

Regular maintenance and safety inspection: the equipment will definitely wear out, check 1 times before opening every day, small maintenance every week, large maintenance every month, and stop maintenance immediately if there is any problem. This is too important. In case of an accident, all the investment in front will be in vain.

Licensing and Legal Compliance:

This part may be a bit boring, but it is your “ticket” to the opening “.

Business license, fire protection, sanitation, environmental impact assessment: these are the basics, and none of them can be missed. Fire fighting is especially strict and must meet the standards.

The special laws and regulations and safety responsibilities of children’s entertainment places: what you do is children’s business, and the laws and regulations must be more detailed, such as guardianship responsibility, emergency handling process, etc., you have to understand thoroughly.

Important note: I ‘ve seen too many people get stuck when they start their business because they don’t have all their certificates. They really want to cry. Therefore, ask the relevant local departments in advance to find out, get all the documents done, then you can save worry and effort.

Team formation and management:

Equipment is dead, people are alive. If you manage your team well, your playground will really “live.

Key positions:

Manager: Responsible for daily operations, must have experience, can solve the problem.

Amusement Instructor: To deal directly with children, love and patience are necessary. You must also understand the children’s psychology. More importantly, they are “safety officers”.

Cleaning: whether the venue is clean or not directly affects word of mouth. this position is very important.

Cashier: Be careful and responsible. You will use the cashier system.

Recruitment, training and performance appraisal: When recruiting, responsibility and love are the first. Pre-job training should be in place, all equipment should be familiar with, and emergency treatment procedures should be thoroughly understood. Performance appraisal should be fair and rewards and punishments should be clear.

Staff safety awareness and first aid training: I must emphasize this! All employees, especially instructors, must receive professional first aid training, such as cardiopulmonary resuscitation and Heimlich first aid. Safety awareness should be carved into the bones, so that every employee has become a “security line of defense”.

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3: Business Model and Financial Forecast-How to Go on the Road to Profitability?

Then again, this is the real test of your business vision. Feelings alone are not enough. You have to know where the money comes from and where it will be spent, right?

Diversification of income sources:

Just like investing, don’t put eggs in one basket.

Ticket revenue: This is the basic plate and the big head of cash flow. Sub-cards, monthly cards, annual cards and group tickets are all regular operations. Think about it, I have seen that kind of “ashes” family before, and the annual card comes almost every day, which has become our “living signboard”.

Value-added services: Don’t underestimate these “corners”, they often bring surprises. Food and beverage retail, birthday party, these are just needed! Children must eat and drink when they are crazy, and parents are willing to pay for birthday parties. I have a friend’s playground that feeds most of the team on birthday parties alone. There are also customized activities and some new ideas, such as summer camp or theme night, which can attract a lot of attention.

Education courses, parent-child activities and other extended services: this is a bit “high-level play. Combine recreation with education, like fitness classes, early education classes, and even small science experiments. This can not only enhance the brand tone of the playground, but also broaden the profit space. Moreover, this kind of activity can increase the stickiness of customers and make parents feel that coming to you is not only to play, but also to “learn something”.

pricing strategy and promotional programmes:

Pricing, this is a great subject.

Pricing based on cost, competition and market demand: this is a cliché, but it is also the core. How much do you cost? How do your competitors play around? Where is the spending power of your target customers? All these have to be figured out clearly. Don’t set a sky-high price 1 the beginning, which scares people away. Also don’t fight price war and tire yourself down. My experience is that you can stabilize it at the beginning and adjust it slowly when the word of mouth grows.

Promotion strategies such as opening discounts, holiday activities, membership points, group buying, etc.: promotion is a sharp weapon to stimulate consumption. Open a big move, quickly gather popularity; Holidays must have theme activities to create an atmosphere; Member points can improve the re-purchase rate; Group buying, small profits but quick turnover, can also quickly withdraw funds. But remember, promotion is not a blind price reduction, there must be a strategy to make customers feel that they are taking advantage, not that your things are worthless.

Cost composition and budget:

This part may be the most “boring”, but it is definitely the most critical, because it determines whether you can live or not.

Initial investment: site, decoration, equipment procurement, these are the big head. I really broke my leg in order to choose equipment, not only to ensure quality, but also to control the budget. Don’t forget that there are all kinds of licenses, these are hidden costs, but you can’t save a penny.

Operating costs: rent, labor, utilities, marketing, maintenance, insurance, these are the monthly expenses. Labor costs should be paid special attention to. Good employees are your core competitiveness. Utilities soar in summer and winter, so you have to count. Marketing expenses cannot be saved, after all, “wine fragrance is also afraid of deep alleys.

Make a detailed start-up capital budget table and monthly operating cost budget table: this I must clap my chest to emphasize, must do! And the finer the better. Only when you are accurate in where each sum of money is spent can you know which places can be saved and which cannot be moved. I have seen too many bosses, just because the accounts are not clear, I played myself to death in a muddle-headed way.

Breakeven analysis and return on investment forecast:

To put it bluntly, it is to find out when you can return to your book and whether you can make money.

Calculate the break-even point and know when to start making a profit: this is your “lifeline”. You need to know how many tickets you have to sell or how many purchases you have to make each day to cover all your expenses. With this steelyard in my heart, I will not be blindly optimistic.

Predict the return period of investment and evaluate the feasibility of the project: How long will it take to get back after investing so much real money? One year? Two years? If the return period is too long, you really need to weigh whether the project is worth investing in.

Sensitivity analysis to assess financial performance under different scenarios: this is a bit like a “war game”. If the ticket revenue suddenly dropped by 10%, or the operating cost rose by 5%, how much impact will it have on your profit? Think about all these “in case” in advance, so that you won’t be in a hurry when you really encounter problems.

4: Marketing promotion and brand building-how to make your playground “out of the circle”

The core of this part is the 1 thing: how to make your playground a star sought after by parents and children.

Brand image and story: your “first impression” and “soul”

First of all, make a loud name and design an unforgettable Logo. This is your facade and directly determines whether others will look at you more. Those who casually make, recognition is not high, the flow is naturally less. Next, give your playground a distinct theme or story line, such as “Fantasy Forest Adventure” or “Future Tech Park”. In this way, it is not just a place to play, but an experience space with emotional connection. Do you think about it, a brand with a soul, is it more memorable and favorable?

Online Marketing: In the Digital Age, You Must Occupy the “Highlands”

Now this year, online marketing is the top priority, not one of them. You have to have your own online position-a public number, small program or website, to show all activities, prices and features transparently. TikTok, Little Red Riding Book, and WeChat Moments are the main battlefields for young parents. High-quality pictures and videos, such as scenes where children are having fun, should be frequent. My suggestion is to find some local KOL or KOC cooperation, their recommend are often more convincing than your own advertising. By the way, SEO optimization also don’t forget, to ensure that others search “indoor playground” can find you, this is the basic skills.

Offline Promotion: Grounded Gas Can Gather People

No matter how fancy it is online, you cannot relax offline. According to my experience, joint activities with kindergartens, early childhood education institutions, and maternal and infant shops have immediate results, because their customers are your target customers. Holding a grand ceremony when opening, or holding theme parties and parent-child competitions on a regular basis are all sharp tools to attract popularity and stimulate re-purchase. As for the distribution of leaflets and community advertising, although somewhat traditional, they are still effective as complementary means in specific areas.

Customer relationship management and word-of-mouth communication: retain old customers, win new customers

This piece is to turn repeat customers into your “free propagandist”. The membership system is standard, providing members with exclusive benefits to make them feel that they are worth the money. But what I want to emphasize most is that we must take customer feedback seriously, whether it is good or bad, we must respond and improve in time. When the service is in place and the customer is satisfied, it will naturally spread a good reputation for you. A real customer sharing is far more valuable than the tens of thousands of advertisements you put in. I have seen with my own eyes that a customer was moved by a small detail and praised 1 in the circle of friends. As a result, several new customers were attracted.

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5. Main risk identification:

First of all, we must dig out all the “holes” that may fall.

Safety incidents and health problems: these two are definitely the number one killer! If a child is playing crazy, knocking, or the venue is dirty like a “bacterial petri dish”, the word of mouth will be finished immediately, and it is not impossible to get involved in a lawsuit.

Intensified competition: Although the market is booming now, there are many people who rob cakes with you. If your playground doesn’t have some “unique secrets”, it’s easy to be shot dead on the beach by the back waves.

Fluctuation of passenger flow: Don’t be too proud of indoor amusement parks. Holidays and weekends are full, and they may be empty at ordinary times. This kind of “roller coaster” type of passenger flow, have to have psychological preparation.

Consumer preferences change: today’s little p child, interest becomes faster than turning over books, love this today, tomorrow may be tired. You have to keep up with their rhythm.

Poor operational management: such as lax staff, service chain, cost control, these will directly erode your profits.

The capital chain is broken: I don’t need to say more about this, right? The initial investment is surprisingly large, if there is no money to continue, no matter how good the concept is, it can only be “stillborn”.

risk aversion and coping strategies:

Knowing the risks, you have to come up with some real countermeasures. Personally, I think these things have to be done:

Improve the safety management system and purchase commercial insurance: safety rules and regulations must be detailed to the bone and strictly enforced. At the same time, buy full commercial insurance for the children and the venue. This is the minimum guarantee. Don’t save that money.

Regular equipment maintenance, strict sanitation and disinfection: equipment must be checked on time, replaced and repaired. Hygiene is the most important thing. There must be a strict disinfection process before opening the door, during business and after closing every day. I even feel that if a transparent disinfection record is made so that parents can see it, they will feel at ease.

Continue to innovate and launch new projects and activities: never feel “enough”! Regularly update the amusement equipment, or engage in some novel theme activities, parent-child courses, to maintain freshness. You have to make consumers feel that there are always new tricks waiting for them in your playground.

Establish emergency plans and crisis public relations mechanisms: in case something really goes wrong, such as power outages, minor bumps, or negative comments on the Internet, we need to know how to deal with it. Think about the response plan in advance, solve the problem in the first place, and don’t let the situation expand.

Future development planning:

We have to take a long-term view.

Chain operation and franchise mode: if your single store mode runs through and can make continuous profits, you can consider copying it. Chain can start the brand, join can quickly spread.

Upgrade of products and services and cross-border cooperation: it is not enough to have fun facilities alone. You can consider selling peripheral products or providing additional services such as catering and early education. In addition, cross-border cooperation with some educational institutions and children’s brands can also drain each other.

Technology empowers to create a smart playground: What age is it now! Can consider the introduction of VR/AR interactive games, or intelligent bracelet positioning system, enhance the play experience, parents can also be more worry-free.

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