business plan children's activity centre

Indoor Playground Business Plan Template

Written by Dave Lavinsky

Indoor Playground Business Plan

You’ve come to the right place to create your Indoor Playground business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their indoor playground businesses.

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
• 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.

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

• Daily Open Play Sessions

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.

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:

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.

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.

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.

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.

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.

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

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, balance sheet, cash flow statement, 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.

You can  easily complete your indoor playground business plan using our Indoor Playground Business Plan Template here .

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.

• Beginners Guide , Indoors Playground

How To Start An Indoor Playground Business In 11 Steps

Written by ownplayground team.

Since the mid-1990s, indoor playgrounds have continued to grow in popularity. Over time, indoor play areas have quietly developed into a legitimate industry, with a variety of options for children and their parents. While some indoor playgrounds cater to the youngest visitors , namely preschool-aged and under, others include activities for children of all ages and in some cases, adults as well.

So, how viable is the Indoor Playground Business? With increasing concerns about childhood obesity, many parents are looking for a fun, safe, and controlled environment for their kids, where they can be physically active; run, jump, and climb without the worry of serious injury , and where they can play hard, without parents having to worry about their security and safety. The indoor playground market fits that niche perfectly and has only continued to grow in recent years. 

If starting an indoor playground business seems like a viable option, we will explain, step by step, the best way to move forward!

Find Your Niche

There are different versions of indoor playgrounds .  

Many cater to the youngest children, from toddlers to preschool, while others focus more on preteens through adults. Although some indoor playgrounds focus solely on physical activities, like: 

Others include additional attractions, such as: 

• Video games 
• Skee ball 
• Other competitive features

Before moving forward, it is important to find a niche, or a focus.  

Perhaps you’re interested in opening an indoor playground with a focus on rock climbing or zip lining ; or maybe a sports-oriented indoor playground, with some organized games, such as indoor soccer or dodgeball is closer to what you’re considering. 

Still, other indoor playgrounds focus more on gymnastic activities, such as trampolines and tumbling.

To truly create a viable business, it is important to pick one area of specialty, and be the best at it. 

By offering something with a unique area of focus, that’s a little bit different than other indoor playgrounds , you can target a specific customer base. You can also focus on the community at large, and provide something that other, similar businesses, do not.

Investigate the Competition

Indoor playgrounds are plentiful, but each one seems to offer something slightly different. 

While some focus on gymnastic style play, others focus on different amenities, such as virtual reality video gaming, or go-carts, or a carnival style playground model where kids can earn tickets for prizes.  

When considering a new business, it is important to understand the local competition.

Whatever the niche of the business, it is important to also provide something better, and different than direct competitors. 

It’s important to understand who the competitors are, and how to outperform them, whether you provide: 

• Longer hours
• Lower entrance fees 
• A better variety of activities and gaming options. 

Planning, Planning… You’ll Want to Have a Plan

Before starting any business, it is important to create a workable plan that outlines every aspect of the business. You need to make decisions that address:

• What is the main revenue stream? 
• Aside from admissions, are there other viable ways to create revenue for the playground? 
• What services can be included?  
• Will there be food served? If so, will there be hot food to order or vending services? 
• Will the facility have the capacity to host children’s parties?

Exploring the different amenities within the playground design and creating a business plan that outlines the various revenue streams, can help a small business owner: 

• Secure funding 
• Estimate overall costs 
• Determine what type of supplies and staffing will be necessary once the business is up and running.

You’ve Heard it Said, “Location, Location, Location”

When trying to create a commercial business, whether it’s an indoor playground, a deli, or a dry cleaner, it is important to find the right location.  

First, you will want to consider the demographics in the surrounding area. For an indoor playground, it’s important to find a location that is easily accessible for families, perhaps: 

• In a commercial area 
• Close to schools
• Well established neighborhoods.

The right location can make a business, and conversely, the wrong location can break a business. 

Take the time to research an area thoroughly, find out why previous businesses have failed, and make sure the location makes sense for the type of business envisioned. It is important to find a location that is: 

• Convenient for families 
• Perhaps accessible by public transportation 
• In a location deemed safe for children and families.

Create Hype

Once a location is selected, it is time to start advertising.  

While, it may seem too soon, it is truly never too early to start advertising an upcoming business venture.  

Simple steps, like: 

• Placing a sign at the chosen location alerting those passing by of the upcoming business 
• Creating a Facebook and Instagram page to track the progress of the playground, from start to finish
• Creating a dedicated website to alert people that an indoor playground is “Coming Soon”.

Any kind of upfront, pre-opening advertising will help create excitement and anticipation surrounding this business venture. In addition to the passive advertising techniques listed above, consider some direct marketing as well, things such as: 

• Mail pieces to the community 
• Including discount coupons for admission 
• Perhaps a free drink, for all guests who arrive on opening day.

Select the Right Equipment

With the growing popularity of indoor playgrounds , there are many manufacturers of playground equipment to choose from. Quality and durability are important, as is safety. Before committing to any particular choice of equipment, it is important to thoroughly research each manufacturer.

In addition to cost, there are other considerations when selecting a manufacturer: 

• Which companies offer comprehensive warranties on equipment? 
• Which manufacturers include equipment assembly in their pricing package? 
• Do any of the manufacturers have local representation, such as a sales or service personnel, who can assist with questions and simple repairs and replacements?

It is also important to select equipment from manufacturers who prioritize the safety of their apparatus.  

When running a business that includes playground equipment, amusement park rides, or sports related apparatus, safety must be of the highest concern. 

Any reputable manufacturer should be able to produce paperwork certifying the safety of their equipment.  This is a vital piece of the puzzle when putting together an indoor playground.

Understand the True Cost

It is impossible to create admission fees, invest in marketing, or price food items until the true cost of creating and running an indoor playground is established.  

Many things need to be considered when determining the cost of the business . Renting a space and buying the equipment is only one small factor. 

Not only are there licensing requirements and insurance guidelines ; there are also plenty of other administrative and operational costs: 

• Utilities, such as electric and water
• Free-Wi-Fi for customers 
• Salaries for staff
• Cost for consumable materials 
• Cleaning supplies 
• Basic upkeep.  

It can actually seem slightly overwhelming. By creating a list of estimated expenses, business owners can better manage and understand what drives cost.

Understand Safety Guidelines and Licensing

It is important for business owners to understand the safety concerns, as well as any local regulations regarding this type of business. Since indoor playgrounds can carry some inherent risks based on the physical nature of activities, it is critical to learn all there is to know about keeping customers safe . 

Learn the requirements in terms of safety precautions, and any restrictions on the type, size, or height of the play equipment to ensure all regulatory guidelines are being met.

This is also a great time to start: 

• Pricing insurance
• Obtaining any necessary licenses or permits
• Maintaining appropriate paperwork
• Meeting all regulatory guidelines 
• Maintaining licensing information.

Invest in Strategic Marketing

This is where understanding the competition really comes in handy. While it is important to understand what your competitors offer that customers absolutely love; it is equally important to understand what customers aren’t getting, or don’t like, from the competition! 

It is vital to find the customer’s “pain point”. A pain point is a defined weakness that prevents a customer from getting exactly what they want. 

Find that , and marketing is a cinch!

A pain point can be anything. Perhaps competitive indoor playgrounds are charging a high per person rate. This can be an easy pain point to solve, even without lowering prices. Solid ways to address high prices from competitive businesses could be:

• Offering a buy two, get one free rate
• Offering customers a ½ price ticket for a return trip within 60 days
• Offering a separate child’s ticket price vs. adult ticket price 

Another big parental complaint about indoor playgrounds is the noise! 

They are loud, with plenty of screaming, wild kids. 

Creating an indoor playground that includes a quiet space for Mom and Dad could potentially be a huge selling point! 

Next, the level of cleanliness. 

Everyone has heard stories about how dirty ball pits really are! 

Focusing on cleanliness and disinfecting the equipment could easily turn an indoor playground into a parental favor over the competition.

The important thing is to find out what matters most to the parents, and direct marketing to meet their needs and address their pain points! This is an easy way to differentiate a business from the competition.

Hire Talented People

It’s important to pick the right employees. For an indoor playground, ideally, employees should:

• Love working with children
• Be outgoing

It is important to select a few employees that are experienced with basic first aid, in the event of minor scrapes and scuffles.

Think about every area of the business that requires staffing: 

• Staff to handle admissions
• Answer customer inquiries 
• Take phone calls. 

Additional staff to: 

• Help run events and parties 
• Supervise games and equipment
• Oversee the snack bar. 

While some employees can fill more than one role, it is really important to have the right fit.

Turnover in employment is a huge business expense that can, with the right staff in place, be reduced dramatically. 

The cost to advertise jobs, interview and train new people, pay salaries, buy uniforms, etc. It all adds up. By picking talented and dependable people, and treating them well, retaining employees is much easier. 

The right employees will be equally invested in making the business a success.

Use Social Media for Promotion

Social media is an incredible tool. 

Studies indicate that nearly 80% of Americans use some type of social media app. (Source: Social Media use in America ) 

Using social media to create excitement prior to opening is only the beginning! 

Creating regular updates, focusing on different aspects of the business, and offering small benefits, such as a reduced price one day a week, free beverage refills, or other little perks through social media keeps followers interested in the organization.

Plus, customer reviews are a great way to get free, positive advertising! 

Creating regular social media posts and encouraging customers to leave comments about their experiences is the best free advertising in the world!

How Much Does It Cost to Build an Indoor Playground from the Ground Up?

This question is a bit hard to answer, as prices can vary tremendously depending on what the business offers.   

However, there are certain factors that can create fluctuation in a pricing model. Let’s take a look at what they are and discuss each one in detail:

Age Range of Targeted Customers

• Type of Activities Offered 
• Liability rates by location

Obviously, opening an indoor playground in Los Angeles or New York City will cost a lot more money than opening one in Topeka, Kansas!  

For the most part, indoor playgrounds require a large space, so in midsize to large cities, large spaces come with a premium price. It is important for potential business owners to research rental and purchase rates based on square footage in the targeted location.  

Sometimes making a small change to a different zip code can save a good deal of money.

Taxes and rental rates vary widely depending on locations. 

Location is one of the most important factors when creating a business, however, what may be considered a great location for a supermarket, may not be the best location for an indoor playground. 

When considering costs, it is important to weigh the cost factor against the benefits of the selected location. For example, building an indoor playground off of a main thoroughfare, but close to well established family neighborhoods may cost less and work in favor of the business. 

It is more important that kids and their parents find the location convenient, rather than ensuring that it’s on the busiest road in town.

Size of the Total Space

The size of an indoor playground can vary dramatically. 

Playgrounds designed for toddlers and preschool-aged children can be considerably smaller than those that are designed with older kids, teens, and adults in mind.

For example, an indoor playground built for toddlers and preschoolers could be housed in a 2000 square foot space rather easily, including areas for parents to relax, a snack bar, and other amenities.   

Conversely, a large scale, family size indoor playground can require spaces larger than even 15,000 square feet. It all depends on: 

• The type of activities included in the playground
• The focal activities provided
• The demographic the business is designed to serve.

Age range will dramatically affect nearly every aspect of an indoor playground. From the overall size, to the types of services offered, to the number of customers serviced daily. 

Age range is probably the single biggest factor in determining what an indoor playground will look like. 

Oftentimes, playgrounds designed for younger children operate almost like a traditional ‘Mommy and Me” class where parents and kids can pay an hourly rate for activities that are group led. 

Since toddlers and preschoolers tire or need naps, this is a customer base that will not be spending all day inside, so creating 2 hours ‘appointment’ times can encourage a steady stream of patrons all day long and increase daily revenue over a more free form style of service. 

The operating hours can mimic a basic workday in many cases, thus cutting costs in terms of salaries and staffing.

Obviously, indoor playgrounds catering to older kids and adults will need to operate longer hours and provide a variety of activities designed to keep kids and adults engaged and having fun for several hours at a time.

Types of Services Offered

While the age range of the targeted customer base will dramatically affect the size of the area needed, the customer demographics affect costs in other ways also. 

The older the patron, the more extreme some of the activities need to be. For example, when attempting to appeal to older teens and adults, attractions such as indoor ziplines and indoor go-karts are much more expensive to design and run, but they bring in more revenue as well.

Admission prices can be based on general activities, with specialized services, such as ziplining, virtual reality play, and bowling , for example, charged separately from general admission. 

Using this kind of a pricing model, the business can cater to both wealthier families as well as the more frugal. Offering a la carte services is a great way to build value and create additional revenue streams.  

Additionally, indoor playgrounds can make money in other ways as well. Consider including an arcade. 

Arcade games are easy to maintain and are easy money-makers. 

Catering children’s birthday parties with a variety of package deals and services is also an easy extra revenue stream. 

Watch which activities pull in the money. Then you can rotate out the activities that don’t create a significant revenue stream and bring in new ones!

Liability Insurance Costs

This is another tricky area.  

Liability expenses to insure an indoor playground will vary widely based on location, along with the size and scope of the activities and services offered. 

While insurance rates and maintaining liability insurance for a large scale indoor playground may seem daunting, the type of services offered should drive up costs for customers at a similar rate. 

That is why it is important to keep an eye on popular activities, and quickly move out attractions that aren’t paying the bills.

Additionally, liability rates can vary dramatically between different insurers. It is very important to obtain at least 3 or more quotes when deciding on insurance. 

Also important to note, there are usually different factors that can affect rates as well, such as special consideration or discounts provided by insurers. For example, some insurers will offer discounted rates to minority or women-owned businesses. Additionally, just like car insurance can be affected by certain safety factors, so can liability insurance for an indoor playground. 

It is very important to take the time to review all quotes and discuss all options for providing liability for your business. 

What About an Indoor Playground Franchise?

Another option for starting an indoor playground business is owning a franchise. 

While at times, franchising can lower overall investment costs, it isn’t a guarantee. However, with a business model that is fairly complex, an indoor playground can be somewhat daunting for many small business owners. 

Franchise ownership provides business owners with all the perks of owning and operating their own business, but with the strength and backing of a well-known name.

Benefits of a Franchise

There are many benefits to investing in a franchise, especially with a business like an indoor playground. In reviewing franchise operations for a mid-range indoor playground that services children from about age 2 to age 12, they offer several benefits to their franchise owners, such as:

Market Research

Lease negotiations, professional installation, design and equipment, training and support.

• Discounts on Equipment and food/beverages

Territorial Protection

Advertising.

A well-established franchise already understands the market, and as such can provide new business owners with a wealth of information. For companies that have a long standing history, market research will consist of factors that as someone new to the industry, may not have even thought about!

A large scale indoor playground company understands the value in terms of rental space, and they know exactly what it should cost to rent a building for their franchises. 

Taking into account some of the market fluctuation in different areas of the country, franchise owners can rest assured that they will not be taken advantage of in terms of leasing prices. The franchise company should be true experts.

Oftentimes franchise companies partner with a specific group of builders around the country or region to handle all of the builds and installations for their franchise owners. This allows the owner to sit back and let someone familiar with the equipment complete all the necessary installations. 

There is no need to reach out to several installers, obtain quotes, customer feedback, etc. They can simply get the job done.

Again, franchise companies have the benefit of experience. They know what designs are most appealing to customers and they know which equipment and attractions are guest favorites. There is no guesswork here for the franchise owner. No worries about removing and replacing equipment that is not popular, as the business model has already been established.

It is hard to overestimate the benefit of good training and support. 

Understanding an industry, the market, and demographic serviced by the business, not to mention what works and what doesn’t, is truly key to the overall success of a business. 

With a successful franchise, owners have the benefit of being trained on what works! Previous owners have already gone through the trial and error, so the hard work has been done. Good franchise companies will offer ongoing support, particularly in the first couple of years, as the business owner truly gets up to speed.

Whether it is equipment, rent, or food products, buying in large quantities usually means deep discounts. When working with a franchise business, the individual business owner gets the benefit of a large company’s buying power, even though they are only buying for their location. 

By using specific vendors already contracted with the franchise, owners will pay well below cost for items.

Again, plenty of research has taught franchise companies what a territory needs, and doesn’t need, to be successful. As a franchise owner, you can be guaranteed that you won’t be crowded by additional franchise owners, as each territory is already defined.

A well-recognized name and a good reputation are fantastic advertising. Franchise owners get the benefits of a familiar name, national advertising, as well as local support. 

While they choose to increase advertising through social media, or on local radio, having the national support of a network of established advertising is almost like money in the bank.

What Playground Business Will You Start?

Ultimately, it is up to each individual person or business owner to decide what works best for them. 

Many people prefer to have the support of a well-known company backing them as they start their own business endeavor. Other people want complete autonomy to create their own space, recognize their own vision, and have the freedom to do business however they choose. 

Each method has its own risks and rewards. Either way, the indoor playground industry has continued to grow and develop over the past 2 or 3 decades and shows no signs of stopping any time soon!

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How To Create a Business Plan for Tech-Free Children's Play Centre

By alex ryzhkov, resources on tech-free children's play centre.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan

Welcome to our blog post on how to write a business plan for a tech-free children's play centre! In today's digital age, where technology seems to dominate every aspect of our lives, it's refreshing to see a growing trend towards unplugged play experiences for kids. According to recent statistics, the tech-free play centre industry has experienced a staggering 25% growth in the past year alone, highlighting a strong demand for screen-free entertainment options for children.

Before we dive into the 9 essential steps to creating a comprehensive business plan for your tech-free play centre, it's crucial to start with a solid foundation of research and industry knowledge. Understanding the market and industry trends will allow you to position your play centre effectively and cater to the evolving preferences and needs of your target market.

Next, it's important to conduct a thorough competitor analysis to gain insights into existing tech-free play centres in your area. This will help you identify gaps in the market and develop a unique value proposition and key differentiators that will set your play centre apart.

Location is another crucial factor to consider when planning your play centre. Finding a suitable space that is easily accessible, spacious enough to accommodate various play areas, and located in a family-friendly neighborhood is key to attracting your target market.

Financing is often a concern when starting a business, so calculating the initial start-up costs and estimating the required funding is essential. Identifying potential sources of funding and exploring financing options such as loans or investment opportunities will help you secure the necessary capital to bring your play centre to life.

Establishing a pricing strategy and revenue model is vital for the long-term sustainability of your business. Considering factors such as operating costs, competition, and the perceived value of your offerings will allow you to set prices that are both competitive and profitable.

Finally, don't forget the power of marketing and promotion in attracting customers to your tech-free play centre. Developing a preliminary marketing plan that includes online and offline strategies, collaborations with local businesses, and targeted advertising efforts will help create awareness and generate interest in your play centre.

By following these 9 essential steps, you'll be well on your way to creating a comprehensive and well-thought-out business plan for your tech-free children's play centre. So let's dive in and start turning your vision into a reality!

Research The Market And Industry Trends For Tech-Free Play Centres.

Before starting a tech-free children's play center, it's crucial to thoroughly research the market and industry trends to ensure your business idea aligns with current demands and preferences. This research will provide valuable insights into the target market, competition, and potential opportunities for growth.

Start by examining the current market for tech-free play centers. Look for industry reports, articles, and studies that provide statistics and data on the demand for such establishments. Identify any emerging trends or shifts in consumer behavior that could impact your business.

Next, focus on your target market. Determine the age range, demographics, and preferences of the children and parents who would be interested in a tech-free play center. Understand their needs, interests, and pain points to tailor your offerings accordingly. This will help you create a unique value proposition that sets your play center apart from competitors.

Conduct a competitor analysis to identify existing tech-free play centers in your area. Visit these establishments, observe their offerings, and get a sense of their strengths and weaknesses. Analyze their pricing, services, amenities, and overall customer experience to understand how you can differentiate your play center.

Additionally, keep an eye on broader industry trends. Are there any advancements in child development or education that could influence your play center's activities or programs? Are there emerging technologies or toys that promote offline play and learning? Stay updated on these trends to ensure your play center remains relevant and appealing to your target market.

Tips for conducting market research for tech-free play centers:

• Utilize online resources such as industry forums, blogs, and social media groups to gather insights and connect with industry professionals.
• Attend relevant conferences, workshops, and trade shows to network with experts and gain a deeper understanding of the market.
• Survey parents and children to gather direct feedback and understand their preferences and expectations.
• Consider partnering with local schools, pediatricians, or child development experts to gain credibility and access to a larger customer base.

By thoroughly researching the market and industry trends for tech-free play centers, you'll be equipped with the knowledge needed to create a compelling and successful business plan.

Identify The Target Market And Understand Their Preferences And Needs.

In order to create a successful business plan for a tech-free children's play centre, it is essential to identify the target market and gain a comprehensive understanding of their preferences and needs . This step is crucial to ensure that your play centre meets the expectations and desires of your potential customers.

Start by conducting thorough research and gathering demographic information about families and caregivers in your target area. Consider factors such as age, income level, and family size, as these demographics will help you determine the most suitable offerings and pricing options for your play centre.

Additionally, assess the preferences of your target market by conducting surveys, focus groups, and interviews with parents, caregivers, and even children themselves. This will provide valuable insights into the types of activities, play areas, and amenities that would appeal to your target audience.

Understand the needs of your target market by considering the challenges that parents and caregivers face when it comes to balancing technology usage, physical activity, and social interaction for their children. Are they seeking an alternative to screen time? Are they looking for a safe and supervised environment for their children to play and learn? By addressing these needs, you can position your play centre as a valuable solution.

Tips for identifying the target market and understanding their preferences and needs:

• Utilize demographic data and market research tools to gain insights into your target audience.
• Engage directly with parents, caregivers, and children through surveys, interviews, and focus groups to gather feedback and understand their preferences.
• Consider the challenges and pain points that your target market experiences in relation to screen time and technology usage for their children.
• Stay up-to-date with industry trends and changes in consumer behavior to anticipate the evolving preferences and needs of your target market.

By taking the time to thoroughly identify and understand your target market's preferences and needs, you can tailor your tech-free children's play centre to meet their expectations and position your business for success in this thriving industry.

Conduct A Competitor Analysis To Assess Existing Tech-Free Play Centres.

Conducting a thorough competitor analysis is an essential step in developing a successful business plan for your tech-free children's play centre. By assessing existing tech-free play centres in your target market, you can gain valuable insights into their offerings, strengths, and weaknesses, allowing you to identify opportunities for differentiation and improvement.

Here are some key steps to conduct a comprehensive competitor analysis:

• Identify competitors: Begin by identifying the tech-free play centres in your area or region that are potential competitors. This can be done through online research, visiting local play centres, or seeking recommendations from parents and industry professionals.
• Assess offerings: Analyze the range of play areas, activities, and services offered by each competitor. Pay attention to their target age group, play equipment, themed play areas, and any unique features or attractions. This will help you understand the competitive landscape and identify gaps in the market.
• Evaluate customer experience: Visit competitor play centres and observe the overall customer experience, including cleanliness, staff interaction, safety measures, and the quality of play equipment. Take note of any positive aspects that you may want to incorporate into your own play centre, as well as areas for improvement.
• Analyze pricing: Review the pricing structure of your competitors to gain insight into their pricing strategies. Compare their rates for different play packages, memberships, or add-on services. This will help you determine a competitive pricing strategy that offers value to your target market while ensuring profitability.
• Identify marketing and promotional efforts: Research the marketing and promotional activities of your competitors. Look for their presence on social media platforms, websites, and local directories. Evaluate their messaging, branding, and target audience. This will assist you in developing a distinctive marketing plan that effectively reaches and engages your own target market.
• Consider conducting surveys or interviews with parents or guardians who have visited competitor play centres to gather feedback and insights.
• Visit peer-reviewed websites or forums where parents share their experiences and recommendations of tech-free play centres in your area.
• Visit trade shows or conferences related to the children's play industry to learn about new trends and innovations.

By conducting a comprehensive competitor analysis, you will be equipped with the knowledge and understanding necessary to create a unique value proposition that sets your tech-free children's play centre apart from the competition. This step will help you build a strong foundation for success and provide a roadmap for creating a compelling business plan.

Develop A Unique Value Proposition And Key Differentiators

When developing a unique value proposition and key differentiators for your tech-free children's play center, it's important to focus on what sets your business apart from competitors and why parents should choose your center for their child's play and development needs. Here are some key steps to help you develop an enticing value proposition:

• Identify your target market's pain points: Understand what challenges parents are facing in today's tech-heavy world and how your play center can address those concerns. Is it providing a screen-free environment to promote physical activity? Or offering creative and educational activities that foster imagination?
• Highlight the benefits: Clearly communicate the benefits your play center offers, such as promoting social interaction, creativity, and physical development. Emphasize how your center provides a safe and stimulating environment for children to learn and grow.
• Showcase unique features: Outline the unique features of your play center that differentiate it from others in the market. This could include specialized play areas, innovative games, or curated arts and crafts stations.
• Emphasize safety and well-being: Reassure parents that their child's safety is a top priority, with trained staff members and age-appropriate activities. Highlight any certifications or safety measures in place.
• Conduct surveys or interviews with parents to better understand their needs and preferences.
• Consider partnering with local schools or organizations to establish credibility and enhance your value proposition.
• Showcase testimonials or success stories from satisfied parents to build trust and credibility with potential customers.
• Continuously evaluate and update your value proposition to stay relevant in a dynamic market.

By developing a compelling unique value proposition and highlighting key differentiators, you can attract parents who are seeking a tech-free play center that aligns with their values and priorities. Your value proposition should clearly demonstrate why your play center is the best choice for their child's growth, development, and enjoyment.

Determine The Suitable Location And Size For The Play Centre.

Choosing the right location and size for your tech-free children's play centre is crucial to its success. Consider the following factors when determining the suitable location:

• Accessibility: Look for a location that is easily accessible to your target market, such as a centralized area or a neighborhood with a high population of families.
• Visibility: Select a location that offers high visibility to attract potential customers and drive foot traffic to your play centre.
• Space: Evaluate the available space to ensure it is adequate for the play areas, equipment, and facilities you plan to offer. It should allow for easy navigation and ensure the safety of the children.
• Amenities and Facilities: Consider nearby amenities and facilities, such as parking spaces, restrooms, and seating areas for parents, which can enhance the convenience and comfort of your customers.
• Competition: Assess the proximity of existing tech-free play centres and determine if there is room for your business to thrive without excessive competition.
• Conduct thorough market research to identify areas with a high demand for tech-free children's play centres.
• Consider partnering with local businesses or community centers to make use of their existing space and resources, reducing your initial start-up costs.
• Visit potential locations during different times of the day to gauge foot traffic and evaluate the suitability of the area for your target market.
• Consult with real estate professionals or commercial property agents who specialize in leasing space for children's recreational facilities.

Once you have determined the suitable location, you can proceed to evaluating the size of the play centre. Take into account:

• Number of Play Areas: Estimate the space needed for different play areas, such as obstacle courses, arts and crafts stations, sensory rooms, and interactive games, based on your business concept and target audience.
• Adequate Circulation Space: Ensure there is ample space for children to move around comfortably and for parents or caregivers to supervise their children easily.
• Emergency Exits and Safety Measures: Adhere to safety regulations by incorporating emergency exits and safety measures, such as fire extinguishers and first aid stations, within the appropriate square footage.
• Future Expansion: Consider the potential for future growth and expansion when determining the size of your play centre. It is advisable to plan for additional space to accommodate a larger customer base or the introduction of new play areas.

By carefully evaluating the suitable location and size for your tech-free children's play centre, you can create a welcoming and spacious environment that caters to the needs and preferences of both children and their parents.

Calculate The Initial Start-Up Costs And Estimate The Required Financing

Before launching a tech-free children's play center, it is crucial to calculate the initial start-up costs and estimate the required financing. This step is essential for establishing a realistic budget and understanding the financial implications of your business venture.

Start by identifying the various expenses involved in setting up the play center. These may include:

• Lease or purchase of a suitable facility
• Renovations, furniture, and equipment
• Staff salaries and training
• Inventory and supplies for arts and crafts stations
• Obstacle course construction and maintenance
• Sensory room equipment and materials
• Insurance and licensing fees
• Marketing and advertising expenses

To estimate these costs accurately, research prices from suppliers, obtain quotes for renovations or construction, and determine the average salaries for your proposed staff positions. It is also important to account for any unforeseen expenses or contingencies.

Once you have a comprehensive list of start-up expenses, calculate the total amount. This will provide you with a baseline figure for the required financing. Consider seeking professional advice from an accountant or financial advisor to ensure accuracy.

Now that you have an estimate of the start-up costs, you can explore potential sources of funding. This may include personal savings, loans from financial institutions, investment from partners or family members, or crowdfunding platforms. Each funding option has its own considerations, so it is crucial to evaluate the pros and cons based on your specific situation.

• Include a buffer in your estimated start-up costs to account for unexpected expenses.
• Consider allocating a portion of your budget for future marketing and expansion.
• Research local or government grants for small businesses in the health and wellness sector.
• Prepare a compelling business plan and financial projections to present to potential investors or lenders.

By accurately calculating the initial start-up costs and estimating the required financing, you will have a solid understanding of the financial aspects of your tech-free children's play center. This knowledge will not only guide your budgeting decisions but also help attract investors or secure financing for your venture.

Identify Potential Sources Of Funding And Explore Financing Options.

When starting a tech-free children's play center, finding the right sources of funding and exploring financing options is crucial to ensure the successful launch and operation of your business. Here are a few key steps to help you identify potential sources of funding:

• Start with self-funding:

If you have personal savings or investments that can be utilized for the start-up costs, using your own funds can be a good option. It allows you to maintain complete control over your business and avoid potential debt or interest payments.

• Explore local grants and sponsorships:

Check out local grants, scholarships, and sponsorships that may be available specifically for businesses in the health and wellness or education sector. These can provide valuable financial support and recognition for your play center.

• Consider small business loans:

Research the options for small business loans through banks, credit unions, or online lending platforms. These loans can provide the necessary capital to cover start-up costs, equipment purchases, and initial operational expenses.

• Look into crowdfunding:

Crowdfunding platforms have become popular among entrepreneurs seeking funding. Consider creating a compelling campaign that highlights the benefits of your tech-free play center and its positive impact on children's development to attract potential backers.

• Seek partnerships and investors:

Explore the possibility of forming partnerships or seeking investors who believe in your business idea and can contribute financially. They may also bring valuable industry knowledge or connections to help your play center thrive.

• Consider government assistance:

Research government programs and initiatives that offer financial support or incentives for businesses in the health and wellness industry. These programs can provide grants, tax credits, or subsidies to help reduce your start-up costs.

• Thoroughly research and compare different funding options to find the one that best suits your specific needs and goals.
• Prepare a detailed business plan and financial projections to present to potential investors or lenders, demonstrating the feasibility and profitability of your play center.
• Network with other entrepreneurs or industry professionals who may have experience and knowledge in securing funding for similar ventures.
• Consider creating partnerships with local businesses or organizations that align with your mission and could provide financial support or resources.

By identifying potential sources of funding and exploring various financing options, you can secure the necessary resources to turn your vision of a tech-free children's play center into a reality. Remember to carefully evaluate the costs and benefits of each option to make an informed decision that sets your business up for long-term success.

Formulate A Pricing Strategy And Revenue Model.

Formulating a pricing strategy and revenue model is crucial for the success of your tech-free children's play centre. It involves determining how much to charge for your services and how you will generate revenue to sustain your business. Follow these steps to develop an effective pricing strategy and revenue model:

• 1. Research the market: Conduct a thorough analysis of the market to understand the pricing range for similar play centres in your area. This will help you set competitive and attractive prices for your services.
• 2. Consider your target market: Take into account the preferences and needs of your target market when determining your pricing. Consider factors such as age range, duration of play, and the value your play centre provides to families.
• 3. Determine your costs: Calculate all the expenses involved in running your play centre, including rent, utilities, staffing, equipment, and maintenance. Knowing your costs will help you set prices that cover your expenses and generate a profit.
• 4. Establish pricing tiers: Consider offering different pricing tiers based on the services you provide. For example, you could offer discounted rates for off-peak hours or special packages for birthday parties or group events.
• Consider offering membership or subscription plans to encourage repeat business and customer loyalty.
• Conduct surveys or focus groups with your target market to gather feedback on pricing preferences and willingness to pay.
• Regularly review and adjust your pricing strategy based on market conditions, customer feedback, and financial performance.

Once you have determined your pricing strategy, it's important to develop a revenue model that outlines how you will generate income. This could include income streams from play admissions, birthday party bookings, merchandise sales, and any additional services or partnerships you may offer.

Remember, your pricing strategy and revenue model should align with your overall business goals and target market. By carefully considering these factors and regularly evaluating and adjusting your approach, you can ensure the financial sustainability of your tech-free children's play centre.

Establish A Preliminary Marketing And Promotional Plan.

Once you have developed your unique tech-free children's play centre business plan, it's time to focus on attracting customers and promoting your brand. Establishing a preliminary marketing and promotional plan will help you create awareness, drive foot traffic, and ultimately, generate revenue. Here are some crucial steps to consider:

• Identify your target audience: Understanding your target market is essential for effective marketing. Determine the age range, interests, and preferences of the children and parents who would benefit from your tech-free play centre. This information will guide your marketing strategies and help you reach the right audience.
• Create a strong brand identity: Develop a unique brand identity that resonates with your target market. Choose a name, logo, and color scheme that reflects the values and mission of your play centre. This will help differentiate your business from competitors and establish a recognizable brand presence.
• Build an online presence: In today's digital age, having a strong online presence is crucial for any business. Create a professional website that showcases your play centre's features, facilities, and services. Consider incorporating a blog section to share informative and engaging content related to child development and play. Utilize social media platforms to interact with potential customers, share updates, and promote special offers or events.
• Utilize traditional marketing methods: Don't underestimate the power of traditional marketing strategies. Distribute flyers and brochures in target areas such as schools, community centers, and pediatric clinics. Partner with local businesses or organizations that cater to families and children and cross-promote each other's services.
• Organize special events and promotions: Running special events or promotions can attract attention and create excitement around your play centre. Consider hosting open houses, offering discounted rates for first-time visitors, or organizing themed parties. Collaborate with local influencers or bloggers to increase visibility and reach a wider audience.
• Encourage word-of-mouth marketing: Word-of-mouth marketing can be your strongest asset. Provide exceptional customer service that exceeds expectations and leaves a positive impression on families. Encourage parents to share their experiences and recommend your play centre to others. Consider implementing a referral program that incentivizes customers to bring in new customers.

Here are some tips to enhance your marketing efforts:

• Offer a free trial session or discounted package to entice new customers and encourage them to experience the benefits of a tech-free play centre.
• Invest in professional photography to showcase your play areas and activities. High-quality visuals can attract attention and convey the excitement and fun children can have at your centre.
• Collaborate with local schools, daycares, and other childcare providers to establish partnerships and referral programs. They can be valuable sources for customer referrals.
• Create engaging and informative video content that highlights your play centre's unique features and benefits. Share these videos on your website and social media platforms to engage with your audience and generate interest.

By establishing a preliminary marketing and promotional plan, you will be well-equipped to promote your tech-free children's play centre and attract families who prioritize physical activity, creativity, and social interaction for their children. Continuously evaluate and refine your marketing strategies based on customer feedback and market trends to ensure you stay ahead in the competitive landscape.

In conclusion, writing a business plan for a tech-free children's play center requires careful research, analysis, and strategic planning. By following the nine steps outlined in this checklist, entrepreneurs can effectively assess the market, understand their target market's needs, differentiate their play center from competitors, determine the ideal location and size, calculate the necessary financing, develop a pricing strategy, and establish a preliminary marketing plan. With a comprehensive business plan in place, entrepreneurs can confidently pursue their goal of creating a safe and engaging space for children to learn, grow, and thrive.

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Opening an Outdoor Activity Center?

How to write an outdoor activity center business plan (fast), step by step (actionable) case study.

If you’re looking to set up a new venture in the outdoor recreational/sports industry, this detailed Outdoor Activity Center business plan is a great place to start.

Our Team at EntrepreneursGateway.com have left no stone unturned in putting together this detailed business plan example.

Bottom Line…

If you’re looking for help and guidance on writing an Outdoor Activity Center business plan…

Then you’ll love this!

• 10 FUN OUTDOOR ACTIVITIES TO DO WITH YOUR FAMILY

#1 Activity Centre Business Plan Executive Summary Section

The Executive Summary section of your business plan outlines what your business does. It summarizes the company’s key points and introduces the rest of the business plan content.

The Executive Summary is incredibly important because it might be the only section a busy person reads; so it should always include:

• Who the company is – In the Company section of the executive summary, we’ve talked about the key staff member and the expertise and experience he brings to the table, as well as the proposed project and the opportunities it will bring to the local area.
• What we sell – What the problem is and how your business will solve it.
• Target Market – Who your customers are going to be.

Check it out and feel free to lift any of it that you want.

My name is Mr Activity, Director of Activities R Us Activity Centre. My home and the surrounding area is where I will operate the business. My premises are situated next to Lake Erie in North America. The Lake is approx. 7 miles long and nestles in beautiful surrounding scenic beauty and is steeped in history and myths. The area at the top of the lake is one of the few barren areas left in Canada with approx. 25 miles’ square area which has no human habitation what so ever. The lake is a free lake, which can be fished for Brown Trout, Perch and Char for free.

What We Sell

We aim to provide most outdoor and adventure pursuits such as hill walking, fishing, archery, clay pigeon shooting, canoeing, wind surfing, boat fishing (fly fishing), mountain and quad biking, orienteering, bird watching, star gazing, water balling, basic camping and glamping for 2, 3 or 4 days.

Who We Sell To

Our audience will be corporate groups, families from the Armed Forces, youth groups, schools, individuals as well as tourists either from USA or overseas and stag and hen parties.

Investment Opportunity

Activities R Us is seeking investment of $650,000 for a new site at Lake Erie. The investment required is to purchase 2 houses and an outbuilding to create accommodation blocks and cabins to house up to 60 people at any one time.  Customers can then experience all the outdoor pursuits on offer while staying in comfort.

This beautiful area with breath-taking views and surroundings is situated in one of the last remote places of North America which is easily accessible by road. 

The scenic beauty combined with life-long experiences in outdoor pursuits and activities has the potential of being a leading resort throughout

The investment will be secured on property and allows working capital to purchase all requirements of equipment and goods to ensure a quick turn into profit from a start-up company. This fantastic offer will go from strength to strength with the right marketing and management; and Activities R Us would be open to any input that could be provided to ensuring success through your investment.

The #Executive #Summary outlines what your business does, summarizes your key points, and prepares investors for the rest of your #businessplan. It’s vital you provide a solid case for your business idea, which is why your #executive #summary is so important! Tweet

#2 Activity Centre Business Plan Company Profile Section

The Company Profile in your Outdoor Activity Center Business Plan is also known as the Company Description.

If it’s well written, your potential investors will find easy to understand your business model, your mission and goals, and how it’s going to meet the needs of your target market.

So whether it’s an activity center business plan, an indoor playground business plan or a soft play business plan that you’re after, we hope you find the following information useful.

For the purpose of this business plan, we’ve included the following:

• The Company and Management Team
• Location and Facilities

Mission Statement

Company overview.

This is a startup company, although formed a few years ago. Due to other business interests, it has been put on the back burner. The premises is owned by myself and Mrs Activity, my partner for 23 years. We have a daughter of 19 years who can also assist in operations.

Management Team

I am Mr Activity, and am presently serving as a Director of our family-owned company, which serves the whole of Canada for training purposes. I have been employed within the family businesses in many roles from Directing, Administrating, Supervision and Sales for approx. 26 years.

Mr Fitness is my father, and is acting as advisor. He has a wealth of knowledge having been in charge of many companies over the past 40 years. His portfolio of companies ranges from Security, Training, Property, Public Houses, Bookmakers, Welding Factories, and Clubs.

Having served Canada for training purposes, we have trained our staff to oversee the project. This therefore puts us in a prime position as we have a bank of qualified trainers who are available to assist us with this venture.

Locations and Facilities

Activities R Us is located at Lake Erie, Canada

Lake Erie is situated approximately 5 miles from the village of Little Erie. It is approximately 7 miles long and 1 mile broad at its widest. The Lake  is steeped in history and Myths.

Lake Erie Castle is believed to have been erected in the 13th century. The Castle, which was located in the middle of the Lake survived assaults by the Army and is believed to have been one of the last resting places of a queen on her journey from America to be exiled in Canada.

The castle was moved to the shores of the Lake as the Lake was raised to provide Hydro-Power. This was achieved by building a dam at the foot of the Lake. Many other stories and myths exist about the Lake and will be freely available in our brochures promoting the Centre.

To deliver quality and professional performances at all times and always ensure that our customers requirements are met. We believe that communication is key in business and that one should never underestimate an understanding. Health and Safety measures are also always paramount. With civility, honesty and performance we can nurture the acorn to the oak tree.

A #mission #statement is a short statement of an organization's purpose and shows the goal of its operations: what kind of product or service it provides, its primary customers or market, and its geographical region of operation. Tweet

#3 Activity Center Business Plan Products & Services Section

The Products and Services section needs to be much more than simply a list of what your new business is going to provide.

This is especially important if you’re looking to get funding; so make sure that you showcase the value, the quality, and the benefits of your business.

Ask yoursel f:

• What sets you apart from your competitors?
• Why would people come to you as opposed to your competitors?

Here’s the example.

PRODUCTS AND SERVICES

Activities R Us Activity Centre will offer all kinds of outdoor adventure pursuits such as quad biking, mountain biking, archery, clay shooting, sailing, kayaking, fishing boat fly fishing, fishing shore, orienteering, basic camping and fishing skills, bird watching, star gazing, hill walking, zorbing and mountain balling.

Quad Biking

The participants will feel the adrenaline flow as they ride the quads down the trails through the forest, hillsides, open fields and rough terrain.

Mountain Biking

Riding a bike through mountains and hillsides while admiring the beauty of the surroundings. There are trails of varying levels of difficulty for people all ages (recommended for children aged 7 and upwards) and skills. It’s an effective and enjoyable way of working on your stamina, coordination, and fitness.

The participants will have a chance to try their hand at this ancient skill. As a one-time experience, it can be great fun and a way to check your focus, balance, and mental fitness.

Clay Shooting

It is suitable for both men and women, adults and youngsters (14 and upwards) of all skill levels. Depending on th package, the participants will shoot at a varying number of targets.

There are several courses and packages to choose from, aimed at both advanced sailors and newbies. The proximity of the Lake Erie makes our center a perfect place to start with the adventure of sailing. We provide a number of all kinds of boats including lasers and toppers.

It’s a perfect activity to improve your fitness and stamina, as well as admiring the beautiful views and sinking in the wonderful atmosphere of Lake Erie. We are providing the paddlers with an opportunity to learn all they need to enjoy the experience and improve upon their skills.

Hill Walking

This is by far one of the best ways to experience the natural beauty of the area, with networks of paths providing access to a range of environments.

Fishing Shore

Anyone who wants to fish can learn how. Shore fishing is an enjoyable sport for the whole family. It provides quality time with the added excitement of feeling a bite on your line.

Orienteering

Orienteering is an exciting outdoor adventure sport which involves walking or running whilst navigating around a course using a detailed map and sometimes a compass.  The aim is to navigate in sequence between a set of control points and decide the best route to complete the course in the quickest time. It does not matter how young, old or fit you are, as you can run, walk or jog the course and progress at your own pace.

Bird Watching

Canada is a fantastic destination for birders, with a wealth of specialty species and an ever changing avifauna to match the seasons.

 The night skies here are some of the best in the world, equal to dark sky in Arizona. With countless stars and the Milky Way stretching from horizon to horizon, shooting stars, planets, comets, and the Northern Lights are all visible.

Zorbing and Mountain Balling

Sphering (AKA Zorbing) is right at the heart of adventure. Bounce down a hill in a massive inflatable ball with you secured inside! Seriously good fun!

Basic Camping and Fishing Skills

We cater to beginners as well, and welcome all ages and abilities.

COMPETITORS

While the popularity of outdoor activity centers is on the rise all over the US, there is no direct competition that is situated within a close proximity of Lake Erie.

There are two competitors in Canada, which are Active Mania and Outdoor Pursuits. However, they are situated in different areas in Canada and do not pose an immediate threat.

Product & Service Development

At the moment, we are planning to purchase or lease 6 luxury cabins near Lake Erie. These will be 10-metre square wooden camping cabins of hexagonal shape, able to accommodate between 2-6 people.

With time, we are hoping to be able to develop and increase the number of accommodation services and increase the turnover.

This is a family business endeavor and initially we are planning to use the help of Mr Activity’s father, Mr Fitness. All the administration and marketing activities will be dealt with from his company office

#4 Activity Center Business Plan Situation & Market Analysis Section

This section of a business plan is very often glossed over because, more often than not, the business owner is so involved within their business that it doesn’t occur to them that they can learn something by writing this down!

This section is one of the most important aspects of your Activity Center marketing plan.

In fact, it defines where you are currently in terms of your market, product, customer, and competition. It also allows you to look at both internal and external factors and to review and document the strengths and weaknesses of your business, as well as identifying any opportunities and threats within your marketplace.

It can include:

Market Overview

Market needs, market trends, market growth, industry analysis, key customers.

• SWOT analysis

TARGET MARKET

Our product appeals to all ages and genders, individual and group clients, families and corporate teams.

Adventure excitement experience, meet new friends and learn new pursuits. Enjoyable way for weight loss and skills.

The demand for outdoor activity centers continues to rise with more and more people looking for engaging and thrilling ways to spend their leisure time. People are increasingly interested in various survival academies, wilderness courses and extreme adventure camps, as evidenced by the popularity of adventurers like Bear Grylls.

Our activity center can also cater for the needs of solders coming home from military operations and missions. Taking part in outdoor activities is a perfect way to wind down, deal with stress and release pent-up energy.

Outdoor activities are also a perfect solution to people who are trying to lose weight and get in shape, but are bored with standard gym routine and mundane exercises. Our offer will give them a wide range of activities to choose from that will both give them a good workout and provide some challenge and excitement.

Your #Market #Analysis section of a business plan is one of the most important aspects of your marketing plan. It defines where you are currently in terms of your market, product, customer and competition. Check out this example in our #BusinessPlan! Tweet

Nowadays people are more afraid to travel to the Continent or any further because of the unstable situation and rise of terrorism, bombing attacks, suicide bombers. In the past the attacks were less frequent, and they were primarily limited to certain regions of conflict, but now it’s more unpredictable.

The attacks mean that people tend to avoid certain regions, change destinations; e.g. France used to be one of the most frequently visited holiday destination in Europe, but as a result of the recent attacks in Paris, the occupancy rate at hotels dropped significantly to 67% (The Nice incident probably had a similar effect). The same could be said about other once popular destinations, such as Turkey, Egypt and Tunisia.

Unsurprisingly, the trend is also visible in the US. American holidaymakers tended to choose “safer” options. A survey conducted by Travelzoo found that approximately 1 in 3 travelers from the US perceives the safety of their holiday destination as the most important factor when choosing where to go.

It is a high-growth business area in which investors will be interested. There are numerous tourist companies that are buying businesses like this to offer holidays.

We would like to work in conjunction with Forestry Commission to build our brand and help preserve the unique nature of the area, as we believe that location in a barren area with unspoiled surroundings is one of our biggest assets.

We are also interested in cooperation with Visit Canada, as we are planning to apply for their funding program aimed at tourism businesses supporting the development of local tourism.

In our industry, reputation is extremely crucial. There are many companies offering similar attractions, as the popularity of various survival and extreme adventure camps is on the rise. Therefore we cannot afford bad pressing. It is extremely important to carefully watch the market trends as well as the activity of other players on the market, in order to stay competitive and cater to the needs of the customers.

Our offer will be presented to the public via our website. We are also planning to build our online presence by means of social media channels, such as Facebook and Twitter.

Our offer is aimed at both individual holidaymakers, families, corporate directors interested in all sorts of team building activities. We believe, that the wide range of activities will also appeal to individuals struggling to lose weight, soldiers wanting to wind down after challenging military operations or just anyone interested in sports, wishing to become stronger or more confident.

Engaging in outdoor activities is also a nice idea for an original stag or hen party for people who are fond of active leisure and would like to spend that special day in an unforgettable and thoroughly enjoyable way.

SWOT Analysis

Our undeniable strength is the fact that we have no direct competitors in the area. Other major players on the market are operating in other parts of Canada. What is more, we are based in a secluded area, where there aren’t many people living, which is also a plus because more and more people are looking for peace and quiet as they are trying to get away from the hustle and bustle of the big city life.

Our possible weakness is the fact that we do not have a well-established brand name and people do not know about us, nor do they associate Lake Erie area with outdoor activities. We intend to deal with this problem by means of well-prepared promotional activity.

Opportunities

We believe we have the potential to become one of Canada’s premier outdoor activity centers. In order to achieve this, we will start a marketing campaign and advertise on our website and social media channels, as we believe it is the most powerful form of selling your services, and the quickest way to reach masses.

Competitive Edge

We are competing against other activity centers with already established brands, but our main asset is that we are located in a secluded area of outstanding beauty, where no one lives. Through our offer we will be presenting people with an opportunity not only to engage in physical activity, but also to experience nature and admire its unspoilt beauty. And with more and more people being relocated north of Canada, our location gives us a great advantage, as there isn’t any outdoor activity center like this in the area.

#5 Activity Center Business Plan Marketing Strategy & Implementation Section

The marketing strategy section of your business plan describes who your customers are going to be and how you plan to communicate to them the services or goods you are offering.

If your potential customers are not made aware of your business, you are not going to stay in business for very long!

Defining a marketing strategy in your business plan highlights your understanding and knowledge and emphasizes what makes your business concept compelling. It also outlines how you plan to attract and maintain a customer/client base.

Ask yourself:

• How are you planning to advertise to your market?
• What is your competitive edge?
• What is your sales strategy?

So, without further ado…

Let’s look at the following example.

STRATEGY AND IMPLEMENTATION

Initially, we are planning to focus on promoting the center among the local citizens to gain recognition and popularity. We would like the local schools and business to get interested in our offer. We believe it to be a perfect spot for all kinds of corporate team building events, stag and hen parties or just spending time with your family in an active way. We will also address our offer to the armed forces, as we believe engaging soldiers in such outdoor activities helps them cope with stress and helps them wind down after difficult military operations.

Our website will be the main channel through which we would like to promote the center. We are also planning to use social media channels to provide information about the kinds of activities we offer and possibly build a community of outdoor activity enthusiasts.

Apart from building an online presence, we would like to reach to various councils and tourist information centers.

Our first milestone would be the purchase of the 6 accommodation cabins to open the business to the public and start selling our services. The center already has outdoor showers and toilets setup, but we still need to build outdoor cooking facilities.

Afterwards, we will engage in promotional activities to popularize the center and get people interested in coming here and purchasing our services. With time, we are hoping to be able to develop and increase the number of accommodation services as well as increasing the turnover.

Promotional Activity

We will focus primarily on building our online presence through our website and social media channels. Apart from that, we would like to contact all the tourist information centers, government schemes and local authorities to interest them in our offer.

Sales Administration

Giving a good service.

Our potential clients will be able to browse through our offer on our website and have access to all the relevant information. They will be able to check the availability of the cabins and make bookings.

Strategic Alliances

We are hoping to be able to create a strategic alliance with Visit Canada. The portal provides interesting funding opportunities that could help us develop and market our business.

We would also like to contact Forestry Commission and interest them in cooperating with us to work for the local area.

Exit Strategy

It is anticipated that there will be a refinancing after year 5 and that a multiplier of 7 will be achieved. It is anticipated that bank borrowings of 60% can be injected along with new equity.

The anticipated value is as below.

Ensuring that you have a COMPLETE #financial #plan within your business plan will DOUBLE your chances of #investment and future growth of your business! Tweet

#6 Activity Center Business Plan Financial Section

Ensuring that you have a COMPLETE financial plan within your business plan will DOUBLE your chances of investment as well as the future growth of your business.

A lot of small businesses don’t have a financial plan and it’s essential to your long-term success and business growth.

We’ve listed here the key elements you need to have in a successful financial section:

• Initial Start Up Expenses – Especially if this is a start-up idea, it’s essential that you have a description of what you need for investment purposes.
• Sales Forecast – It’s essential to have an estimate of your monthly sales revenue as well as annual. This helps you understand your business and plan out any marketing and growth strategies.
• Direct cost of sales – Measures the amount of cash the company will have to spend to produce the goods or services sold by the company. The direct cost of sales only includes the expenses directly associated to production.
• Profit and Loss Forecast – This is a statement summarizing the revenues, costs and expenses incurred during a specific period.
• Balance Sheet – This is the financial position of the company and states its assets, liabilities and owners’ equity at a particular point in time. It illustrates the business’s net worth.
• Loan Repayment – This shows the lender or potential investor the act of paying back any monies.

So… Are you ready to look at some figures?

Sales Forecast 2018

Sales Forecast 3 Years

Personnel Plan

Projected Personnel Plan 3 years

Budget 2018

Budget for 3 Years

Profit & Loss 2018

Profit & Loss for 3 Years

Balance Sheet 2018

Projected Balance Sheet

Projected Cash Flow

• Ecommerce Business Plan sample
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• Real Estate Business Plan Sample

Additional Resources:

• 40 Common Business Plan Mistakes to Avoid when Writing your Plan
• What is a Business plan and why do you need one?
• How to Write a Business Proposal in 5 Easy Steps
• 10 FREE Business Name Generator Tools to find your perfect business name

Now, over to you...

Now I’d love to hear from you:

Are you going to start up your own outdoor activity business, or have you recently written a business plan?

We’d love to know what you thought about our outdoor activity business plan example.

Feel free to leave any comments below and I will be sure to answer them as soon as they come in.

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Family Entertainment Center Business Plan Template

Written by Dave Lavinsky

Family Entertainment Center Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their family entertainment center companies.

If you’re unfamiliar with creating a family entertainment center business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a family entertainment center business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Family Entertainment Center Business Plan?

A business plan provides a snapshot of your family entertainment center business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Family Entertainment Center

If you’re looking to start a family entertainment center business or grow your existing family entertainment center company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your family entertainment center business to improve your chances of success. Your family entertainment center business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Family Entertainment Center Businesses

With regards to funding, the main sources of funding for a family entertainment center business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for family entertainment center companies.

Finish Your Business Plan Today!

How to write a business plan for a family entertainment center.

If you want to start a family entertainment center business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your family entertainment center business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of family entertainment center business you are running and the status. For example, are you a startup, do you have a family entertainment center business that you would like to grow, or are you operating a chain of family entertainment center businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the family entertainment center industry.
• Discuss the type of family entertainment center business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of family entertainment center business you are operating.

For example, you might specialize in one of the following types of family entertainment center businesses:

• Kids’ entertainment centers: This type of family entertainment center focuses on attractions for small children such as playgrounds, kiddie rides, and themed cartoon character games.
• Teen entertainment centers: This type of family entertaiment center caters to teenages and often includes attractions like thrill rides, arcade games, and laser tag.
• Water parks: This type of family entertainment center has water rides, slides, and attractions for the whole family.
• Theme parks: This type of family entertainment center is focused on a specific brand or concept. Disneyland and Universal studios are two examples of large theme parks.

In addition to explaining the type of family entertainment center business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the number of seasonal passes sold, reaching $X amount in revenue, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the family entertainment center industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the family entertainment center industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your family entertainment center business plan:

• How big is the family entertainment center industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your family entertainment center business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your family entertainment center business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of family entertainment center business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other family entertainment center businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of family fun centers, recreation centers, parks, and movie theaters. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of family entertainment center business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you make it easier for your customers to acquire your product or service?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a family entertainment center business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of family entertainment center company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide dining options, arcade games, or batting cages?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your family entertainment center company. Document where your company is situated and mention how the site will impact your success. For example, is your family entertainment center located in a busy retail district, a business district, or a standalone facility? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your family entertainment center marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your family entertainment center business, including answering calls, scheduling employees’ shifts, processing customer payments, and monitoring the park for safety.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your family entertainment center business to a new city.  

Management Team

To demonstrate your family entertainment center business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing family entertainment center businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a family entertainment center.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you charge $80 for a day pass and offer a discount for a seasonal pass? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your family entertainment center business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a family entertainment center business:

• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your family entertainment center location lease or a full list of your attractions and services.  

Writing a business plan for your family entertainment center business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the family entertainment center industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful family entertainment center business.  

Family Entertainment Center Business Plan FAQs

What is the easiest way to complete my family entertainment center business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your family entertainment center business plan.

How Do You Start a Family Entertainment Center Business?

Starting a family entertainment center business is easy with these 14 steps:

• Choose the Name for Your Family Entertainment Center Business
• Create Your Family Entertainment Center Business Plan
• Choose the Legal Structure for Your Family Entertainment Center Business
• Secure Startup Funding for Family Entertainment Center Business (If Needed)
• Secure a Location for Your Business
• Register Your Family Entertainment Center Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Family Entertainment Center Business
• Buy or Lease the Right Family Entertainment Center Business Equipment
• Develop Your Family Entertainment Center Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Family Entertainment Center Business
• Open for Business

Don’t you wish there was a faster, easier way to finish your Family Entertainment business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to learn about Growthink’s business plan writing services .

Other Helpful Business Plan Articles & Templates

How To Start a Children’s Activity Center

Children’s activity centers are often found in businesses such as restaurants, shopping centers, and museums. They are a great fit since those are places both adults and children want to be. An activity center can also stand alone as a business itself. Either way, parents flock to them with busy children who need to let off some steam. Are you thinking about starting a children’s activity center? There are a few things to keep in mind when choosing how to start a children’s activity center.

Before you begin to plan too far ahead, you’ll need to know where the indoor activity center is going to be. If it is going to be a part of an established business, you’ll need to determine the square footage you need before going any further. If it is a new business with its own building, then a commercial real estate company may be helpful. If you decide to be part of an indoor playground franchise, you’ll have support to help you choose the location.

License and Insurance

Now that you have the location, an indoor playground license is necessary, so you’re able to do everything legally. Contact the city to see what you need to do for your particular area.

The license for your indoor playground may require a certain amount of insurance, and you should absolutely consult with an agent to make sure you have the proper coverage if an injury should occur at the center or if there is damage to equipment or the building.

Plan and Design

Let the fun begin! There’s a lot to know about customizing a playground , but the process should be fun. To start an indoor playground business, there is a need to think a bit like a child. As design plans begin, imagine being a child at different ages and sizes to help determine what you need. Ask your own children, friends, and other parents for their input as to what they would like to see. Then choose an indoor play structure specialist to assist in the planning.

With the location set, licenses in hand, and a design ready to go, it is time to purchase indoor playground equipment and whatever else your activity center calls for.

Installation and Maintenance

Once you have the equipment, there’s one more step before you can enjoy all your hard work—it’s time for your indoor playground to be installed! Professional installation instead of DIY is wise to be sure everything is safe. Once professionals properly install everything, regular maintenance of the equipment will help it to last longer and keep visitors safe. Have a daily, weekly, monthly, and yearly checklist for maintenance .

Indoor playground businesses have never been more popular. Recently, parents have become more aware of the risks of younger children spending too much time sitting and not enough moving. Giving them an option for indoor activity during inclement weather and a place children want to come to makes activity centers a worthwhile investment. Explore our blogs to learn more about the benefits of children activity centers and indoor playgrounds .

Browse the commercial indoor playgrounds at Go Play Systems to find a design that’s right for you. Or reach out for a quote today!

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How to Write a Learning Center Business Plan [Sample Template]

Are you about starting a learning center company? If YES, here is a detailed sample learning center business plan template & FREE feasibility report. A learning center is a self-contained section of the classroom in which students engage in independent and self-directed learning activities. Learning centers provide students with exciting and interesting experiences to practice, enrich, reteach, and enhance their learning. These types of centers are filled with art materials, books, and other instructional tools.

Why Start a Learning Center?

It is important to state that there are different types of learning centers; learning centers can vary a great deal when it comes to their design and the results they want to achieve. But for the purpose of this business plan, we will concentrate on early childhood learning center.

Lastly, there are no barriers as regards those who can start a learning center in the united states; educationist, philanthropists, parents, community leaders, social entrepreneurs, religious organizations, businesses, teachers, school districts, and towns can start their own learning centers.

Having said that, if you interested in starting your learning center, then here is a comprehensive learning center business plan template that will give you the needed guide.

A Sample Learning Center Business Plan Template

1. industry overview.

The Early Childhood Learning Centers industry comprises establishments that provide basic skill and education courses for children between the ages of two and five.

Basically, establishments in this industry, both public and private, provide basic preparatory education courses for children aged two years to those reaching the compulsory school-entry age. This industry excludes establishments that primarily service adults and provide child-teaching services.

Operators offer different programs, which vary by age. For younger children, typically those between the ages of two and three, programs focus on developing early math, reading and interpersonal skills. Children between three and five years old participate in a variety of activities and subjects to prepare them for grade school.

Recent reports released by IBISWORLD shows that over the five years to 2018, revenue fell early in the period as a result of low per capita disposable income levels and the decline in the labor force participation rate of women. However, the unemployment rate has declined each year since 2013.

Statistics has it that The Early Childhood Learning Centers industry in the United States of America, is worth $11 billion, with an estimated growth rate of 2.1 percent annually between 2013 and 2018. There are about 19,482 registered and licensed (accredited) early childhood learning centers scattered all around the United States of America and they are responsible for employing about 247,365 people.

Aside from Bright Horizons Family Solutions Inc. which has the largest enrollments, no other early childhood learning center can boast of dominating the market; every player can comfortably compete in the industry.

It is important to state that the barriers to entry into the Early Childhood Learning Centers industry are high. As a matter of fact, new entrants find it difficult to establish themselves. So also, the reputation of the early childhood learning center is of utmost importance, as the center that has a good history of getting students into prestigious colleges often have the best reputations hence good enrollments.

Reputation indeed is imperative to parents’ decisions when shopping for early childhood learning centers. This is because the quality of education cannot be assessed until after it is complete.

Even though this might seem like a highly competitive industry, the industry is still pretty much open for people to come in and compete. As a matter of fact, if you conduct your research and feasibility studies very well before starting your own center, you are likely going to struggle less to make headway in the industry.

2. Executive Summary

Little Rock® Community Learning Center, Inc. is an early childhood learning center that will be located in a well – populated residential estate in Little Rock – Arkansas, United States of America. We are a standard early childhood learning center that will offer different programs, which will vary by age.

For younger children, typically those between the ages of two and three, the programs will focus on developing early math, reading and interpersonal skills. Children between three and five years old will participate in a variety of activities and subjects to prepare them for grade school.

Little Rock® Community Learning Center, Inc. is a result driven early childhood learning center that provides broad-based learning approaches and experience at an affordable fee that won’t in any way put a hole in the pocket of our clients.

We will offer professional teaching services in a highly secured and conducive learning environment. We will ensure that we work hard to meet and surpass all our students’ educational goals whenever they enroll in our center.

At Little Rock® Community Learning Center, Inc., our students’ overall best interest would always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hire professional teachers in various subjects who are passionate at imparting knowledge to students.

We have plans in the future to also offer learning platforms to people with both learning disability and physical disability (especially the blind, the dumb and the deaf). Our overall business goal is to position our early childhood learning center to become the leading brand in the industry in the whole of Little Rock – Arkansas, and also to be amongst the top 10 learning centers in United States of America within the first 20 years of operation.

Little Rock® Community Learning Center, Inc. is founded by Dr. (Mrs.) Becky Steve – Carson and her immediate family members. She is an educationist par excellence and she has won many awards in the educational sector in the United States.

Dr. (Mrs.) Becky Steve – Carson has both the academic qualifications and experience to run an early childhood learning center that can favorably compete with other leading early childhood learning centers not only in Little Rock – Arkansas, but also throughout the United States America.

3. Our Products and Services

Little Rock® Community Learning Center, Inc. is going to offer varieties of early childhood learning services in the United States of America. Our intention of starting our early childhood learning center is to soundly educate kids in various subjects and of course to make profits from the industry.

Our service offerings are listed below;

• Planning and implementing a diverse curriculum for children
• Developing activities to introduce math and literacy concepts
• Providing child and infant daycare to an extent
• Operating Head Start programs

4. Our Mission and Vision Statement

Our vision is to build a highly competitive early childhood learning center that will become the number one choice for both parents and students in the whole of Little Rock – Arkansas.

Our mission is to provide professional and conducive learning environment to students at different levels of learning. Our overall business goal is to position Little Rock® Community Learning Center to become the leading early childhood learning center in the industry in the whole of Little Rock – Arkansas, and also to be amongst the top 10 early childhood learning centers in the United States of America within the first 20 years of operation.

Our Business Structure

It is a known fact that the success of any business is to a large extent is dependent on the business structure of the organization and the people who occupy roles in the organization. Little Rock® Community Learning Center, Inc. will build a solid business structure that can support the growth of our early childhood learning center.

We will ensure that we hire competent hands (teaching and non – teaching staff members) to help us build the early childhood learning center of our dream. The fact that we want to become one of the leading early childhood learning centers in the industry in the whole of the United States of America makes it necessary for our organization to deliberately build a well – structured business from the onset.

We will work hard to ensure that we only attract people with the right mindset to help us achieve our business goals and objectives in record time. Below is the business structure that we will build Little Rock® Community Learning Center, Inc.;

• Head of The Early Childhood Learning Center (School Proprietress)

School Administrator

Early Childhood Learning Specialist

• Accountant/Bursar
• Client Service Executive/Front Desk Officer

Security Officers

5. Job Roles and Responsibilities

Head of the Early Childhood Learning Center/School Coordinator:

• Responsible for providing direction for the center
• Responsible for handling high profile clients and deals
• Responsible for fixing fees and signing business deals (partnership)
• Responsible for signing checks and documents on behalf of the early childhood learning center
• Coordinates all arms of the center
• Evaluates the success of the center
• Reports to the board
• Responsible for overseeing the smooth running of HR and administrative tasks for the early childhood learning center
• Designs job descriptions with KPI to drive performance management for tutors (teachers)
• Regularly hold meetings with key stakeholders (parents and member of the school board) to review the effectiveness of the schools’ Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily activities of the early childhood learning center.
• Effectively teach subjects as assigned by the school administrator
• Accesses the progress of students under their care
• Ensures that students abide by the rules and regulations of the center
• Contributes his/her quota towards growing the early childhood learning center
• Receives complaints from parents and channel it to the appropriate quarters
• Handles any other duty as assigned by the school administrator.

Marketing Executive

• Identifies, prioritizes, and reaches out to new students, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts
• Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the school

School Bursar (Accountant)

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides management with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for Little Rock® Community Learning Center, Inc.
• Serves as internal auditor for Little Rock® Community Learning Center, Inc.

Client Service Executive

• Welcomes/receive parents and students by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with parents and students (e-mail, walk-In center, SMS or phone) provides a personalized customer service experience of the highest level
• Through interaction with parents and students on the phone, uses every opportunity to build parent’s interest in the schools’ services
• Consistently stays abreast of any new information on the organizations’ promotional campaigns etc. to ensure accurate and helpful information is supplied to parents and students when they make enquiries
• Receives parcels / documents for Little Rock® Community Learning Center, Inc.
• Distributes mails in the organization
• Handles any other duties as assigned by the School Administrator.
• Responsible for cleaning the school facility at all times
• Ensures that toiletries and supplies don’t run out of stock
• Cleanses both the interior and exterior of the school facility
• Handles any other duty as assigned by the school administrator
• Ensures that the school facility is secured at all time
• Controls traffic and organize parking
• Gives security tips to staff members from time to time
• Patrols around the building on a 24 hours’ basis
• Submits security reports weekly
• Any other duty as assigned by the school administrator.

6. SWOT Analysis

Little Rock® Community Learning Center, Inc. engaged the services of a core professional in the area of business consulting and structuring with bias in the educational sector to assist us in building a well – structured early childhood learning center that can favorably compete in the United States.

Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Little Rock® Community Learning Center, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Little Rock® Community Learning Center, Inc.;

As an early childhood learning center, our core strength lies in the power of our team; our workforce. We have a team with excellent qualifications and experience in the educational sector especially when it comes to working with toddlers. We are well positioned in a community with the right demography and we know we will attract loads of students from the first day we open our doors and welcome students for enrollment.

As a new early childhood learning center in Little Rock – Arkansas, it might take some time for our organization to break into the market and gain acceptance via reputation in the already saturated education cum Early Childhood Learning Centers industry; that is perhaps our major weakness.

• Opportunities:

Demand for day-care services is positively correlated with the number of children aged nine and younger. Increase in the number of children younger than nine, particularly those younger than five, boost demand and profitability for private centers. The number of children under the age of nine is expected to increase slightly in 2018, representing a potential opportunity for the industry.

The labor force participation rate of women, especially mothers, has a major effect on demand for child-care services. The participation rate is influenced by many factors, including social values, expectations relating to child care, the growth rate of employment, after-tax wages and child-care costs.

When the female workforce participation rate rises, it tends to increase demand for child-care services. The labor force participation rate of women is expected to increase slightly in 2018, posing a threat to the industry.

7. MARKET ANALYSIS

• Market Trends

The trend in the early childhood learning center business is that the keys to attracting students is the educational performance of their students. Any early childhood learning center that has good records will always thrive.

The demand for early childhood learning centers is driven by the fact that most public cum government owned schools cannot accommodate every student in a given geographical location. In some cases, students with special needs cannot cope in public schools hence the need for early childhood learning centers.

Early childhood learning centers are overwhelmingly located in urban areas. Over one-half of all early childhood learning center students reside in urban environments, compared with less than one-third of students at traditional public schools.

Growth in the percentage of the overall population living in urban areas increases demand for early childhood learning centers. The US urban population is expected to increase in 2018, representing a potential opportunity for the industry.

The economic downturn hasn’t really affected this industry, especially in countries that believe in the efficacy of education. The areas you would need to spend heavily on is in ensuring that your school is up to standard, your advertisements, and on insurance policy cover.

Lastly, it is trendier to find early childhood learning centers engaging in extra – curricular activities and as a matter of fact, an early childhood learning center that thrives in sports can leverage on that to attract students who are sports inclined.

8. Our Target Market

As a standard early childhood learning center, Little Rock® Community Learning Center, Inc. is going to offer varieties of educational services. Our intention of starting our early childhood learning center is to prepare toddlers to enroll in schools and of course to make profits from the education industry.

Our target market as an early childhood learning center cuts across people (students) of different classes and cultural background whether African, White, Caucasian, Latinos, Indians, and Asians. We are coming into the industry with a business concept that will enable us work with the students at different learning stages in Little Rock – Arkansas.

Our Competitive Advantage

Indeed, the Early Childhood Learning Centers industry is highly competitive and the entry barriers are high. As a matter of fact, the industry is pretty difficult for new entrants to establish themselves. So also, the reputation of the early childhood learning center is of utmost importance, as early childhood learning centers that have a good history of getting students into prestigious schools often have the best reputations.

As a major marketing tool, schools need to show parents a track record of admission to elite schools. Little Rock® Community Learning Center, Inc. might be a new entrant into the education cum Early Childhood Learning Centers industry in the United States of America, but the management staff of the center are considered gurus.

They are highly qualified educationists/teachers at various levels of learning in the United States. These are part of what will count as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Little Rock® Community Learning Center, Inc. is established with the aim of maximizing profits in the education cum Early Childhood Learning Centers industry and we are going to ensure that we do all it takes to attract students on a regular basis. Little Rock® Community Learning Center, Inc. will generate income by offering the following tutorial services;

• Providing child and infant day care to an extent

10. Sales Forecast

We are well positioned to take on the available market in Little Rock – Arkansas and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six months of operation and grow the early childhood learning center and our student base.

We have been able to examine the early childhood learning centers cum education market in the United States of America, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.

Below is the sales projection for Little Rock® Community Learning Center, Inc., it is based on the location of our tutorial center and of course the wide range of educational cum learning services that we will be offering;

• First Fiscal Year (FY1):  $250,000
• Second Fiscal Year (FY2):  $450,000
• Third Fiscal Year (FY3):  $750,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. So, there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there are stiff competitions amongst early childhood learning centers in the United States of America, hence we have been able to hire some of the best marketing experts to handle our sales and marketing concerns.

Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the early childhood learning center.

Our goal is to grow our early childhood learning center to become one of the top 10 early childhood learning centers in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Little Rock – Arkansas but also in other cities in the United States of America.

Little Rock® Community Learning Center, Inc. is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our early childhood learning center by sending introductory letters alongside our brochure to schools, parents/household and key stake holders in Little Rock – Arkansas.
• Print out fliers and business cards and strategically drop them in schools, libraries and even student organizations.
• Creating a website, allows parents to be able to look you up, and also allows you to post general study tips, giving you an added advantage.
• Use friends and family to spread word about our early childhood learning center
• Introduce Little Rock® Community Learning Center, Inc. to learning specialists, school coaches, school administrators, teachers, guidance counselors especially as they are with students everyday
• Post information about Little Rock® Community Learning Center, Inc. on bulletin boards in places like schools, libraries, and local coffee shops.
• Placing a small or classified advertisement in the newspaper, or local publication about Little Rock® Community Learning Center, Inc.
• Using tutorial referral networks such as agencies that will help match students with Little Rock® Community Learning Center, Inc.
• Joining relevant association or body that will enable us network and meet others in same industry.
• Advertising online by using an advertising platform such as Google AdWords, that will allow us place text advertisements alongside on websites with related contents, and along results from search engines.
• Advertise our early childhood learning center in relevant educational magazines, newspapers, TV and radio station.
• Attend relevant educational expos, seminars, and business fairs et al
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We are aware of the potency of a good publicity strategy hence we have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to become the number one choice for both parents and students in the whole of Little Rock – Arkansas which is why we have made provisions for effective publicity and advertisement of our early childhood learning center.

Below are the platforms we intend to leverage on to promote and advertise Little Rock® Community Learning Center, Inc.;

• Place adverts on both print (community based newspapers and educational magazines) and electronic media platforms
• Sponsor relevant community based events/programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
• Install our billboards in strategic locations all around Little Rock – Arkansas.
• Engage in roadshow from time to time in targeted neighborhoods in and around Little Rock – Arkansas
• Distribute our fliers and handbills in target areas in and around Little Rock – Arkansas
• Passing general information via our school’s social media handles like twitter, Facebook, Google hangouts etc.
• Ensure that all our teaching and non – teaching staff members wear our branded shirts and all our vehicles are well branded with our schools’ logo et al.

12. Our Pricing Strategy

Early childhood learning centers in the United States of America and of course in all the parts of the world charge students per term/per session and students have the options of either paying their tuitions before resumption or during the school session. Early childhood learning centers charge students based on loads of factors including location, service offerings and extra – curricular activities.

At Little Rock® Community Learning Center, Inc. we will keep our fees below the average market rate by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to all our students at regular intervals.

• Payment Options

The payment policy adopted by Little Rock® Community Learning Center, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Little Rock® Community Learning Center, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via online bank transfer
• Payment via mobile money
• Payment via Point of Sales Machines (POS Machines)
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment for tuition fees without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for services rendered.

13. Startup Expenditure (Budget)

In setting up an early childhood learning center business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by acquiring a large facility, then you would need a higher amount of capital as you would need to ensure that your employees are taken care of, and that your early childhood learning center’s environment is conducive enough for the students to learn.

The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a early childhood learning center business; it might differ in other countries due to the value of their money.

However, this is what it would cost us to start Little Rock® Community Learning Center, Inc. in the United of America;

• Business incorporating fees in the United States of America will cost – $750.
• The budget for Liability insurance, permits and license will cost – $3,500
• Acquiring a large facility that will accommodate the number of block of classes, playing field, staff offices and parking lots et al (Re – Construction of the facility inclusive) will cost – $350,000.
• Equipping the classes and office (computers, printers, projectors, markers, pens and pencils, furniture, telephones, filing cabinets, and electronics) will cost – $50,000
• Launching an official website will cost – $500
• The budget for the payment of salaries for the first three months of operations: $120,000
• Additional Expenditure such as Running cost, Business cards, Signage, Adverts and Promotions will cost – $45,000

Going by the market survey and feasibility studies conducted, we came to the conclusion that we will need an average of six hundred and fifty thousand dollar ($650,000) to start a small but standard early childhood learning center in the United States of America.

Generating Funds/Startup Capital for Little Rock® Community Learning Center, Inc.

Little Rock® Community Learning Center, Inc. is a family business that will be owned and managed by Dr. (Mrs.) Beck Steve – Carson and her immediate family members. They are the major financiers of the early childhood learning center which is why they decided to restrict the sourcing of the startup capital for the early childhood learning center to just three major sources.

• Generate part of the startup capital from personal savings and sale of his stocks
• Generate part of the startup capital from government, friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $250,000 (Personal savings $200,000 and soft loan from family members $50,000) and we are at the final stages of securing $100,000 education grant from the Government an also obtaining a loan facility of $300,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

It is a known fact that the future of any business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and of course the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Little Rock® Community Learning Center, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers (students and parents alike) over is to ensure that we offer nothing less than the best, to offer quality education to all our students so much so that they can favorably compete with students all over the United States.

Little Rock® Community Learning Center, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Securing a standard facility large enough to accommodate our design: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the startup capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Schools’ Logo: Completed
• Printing of Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the school : In Progress
• Creating Awareness for the early childhood learning center in Little Rock – Arkansas: In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in the education industry : In Progress

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• May 14, 2021

This month marks the 1 year anniversary of  ICAP  launching, which is a really proud moment and milestone for us.

In that time we’ve released multiple guides, reports and resources alongside some pretty great online events to support children’s activity providers primarily through the Covid-19 storm, but also to help focus on how best to develop your business in this sector. 

We’d like to thank you for engaging with what we are trying to do in the children’s activities sector and hope that in a small way we’ve been helpful on your business journey. We’ll continue to add value wherever we can over the coming years.

We wanted to spotlight a guide with some of our best tips to running a children’s activity business. We released this last year and in a short time has amassed over a thousand downloads. If you haven’t read the guide yet, or maybe you fancy a re-read you can download this here .

P.S. If you haven’t already become a member of ICAP, see what all the fuss is about here and join our fast growing community of providers today.

By becoming a member of ICAP you’re joining a community of like-minded professionals and business owners in the children’s activity sector working towards excellence

[email protected]

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Gayle Berry

Founder of global parent & baby wellness business, mentor & philanthropist.

Gayle Berry-Founder of Blossom & Berry, BA, Dip. Law, PGCE, IAIM, Birthlight, Dip Hypno, Clinical Hypnotherapist, Life Coach ITEC Massage, Author, Pregnancy and Post Natal Yoga Teacher, Children’s Yoga Teacher, Doula & Sleep Consultant.)

Gayle is a love activist, community architect, the founder of Blossom & Berry, an expert on baby massage, baby yoga and nurturing care for babies and the world’s leading mentor for parent and baby businesses.

Gayle is the mother of three amazing humans who have inspired her journey to teach love to millions of babies through her connected community to create a more peaceful and joyful life for all.

Gayle has over 20 years of experience empowering others to share the power of nurture and nature for families across the globe.

Gayle is an advocate for nurturing touch for babies, a multiple publisher author, and speaker on “Nurturing The Future-1001 days to save the world’

She is also very proud to be an ambassador for a number of mother and baby wellness brands and she is Channel Mums’ Baby Massage Expert.

In more recent years Gayle has mentored the world’s leading birth and baby schools to expand and scale their impact to create even more connection. Everything she does comes from a place of love, connection and community

Contribution is also a huge part of her why. She is the co founder of the charity Love Support Unite where she has enabled a safe motherhood project for mothers and babies in poverty in Malawi impacting hundreds of vulnerable babies.

“All babies deserve to be seen, heard and express their needs. When we respond to babies with love, we teach that the world is a safe and loving place and help children reach their full potential.”

Sarah Booth

Xero - partner consultant.

My passion has always been to help business owners understand the numbers and how a great Accountant, along with cloud software, can provide the financial data they need to make the best business decisions. Prior to joining Xero I worked as a qualified Accountant and specialised in supporting my clients to understand their business financials in real-time. Working with Xero has given me the opportunity to support Accountants across the country in adapting to the cloud, improving their processes and ability to provide insights for their clients business.

Lou Willis-Keeler

Ceo of psych-logical (safeguarding and behavioural consultancy).

David Batch

Premier education group.

Natalia Shvarts

Franchise lawyer.

Ellie Baker

Bilinguasing.

After 10 years in the UK education system, Ellie quit the classroom to set up her award-winning children’s language & music class company, BilinguaSing, which she franchised in 2014.

Today Ellie uses all of her teaching and business experience to coach educators to become business owners, writes about education and helps her network of BilinguaSing franchisees to thrive in their businesses. In 2023 she authored her first solo book, The 2 Hour Tutor; which reached the #1 spot in 3 educational categories.

She’s an ‘extroverted introvert’ who dreams of living a nomadic life, educating her 3 kids while travelling the world; but for now lives happily in sunny Maidenhead. 

Stacey Cann

Franchise marketing strategist.

Stacey Cann is an award winning franchise marketing strategist who specialises in helping franchisors create successful franchisees and make more money in their business. Stacey has 20 years marketing experience, working with global companies, including Chelsea FC, Jellyfish, BT, Sports Direct and The Telegraph. Marketing training and empowerment is at the heart of everything Stacey does. Her work has been featured in numerous press articles, including; The Sun, The Metro and iNews. Stacey is a franchisee and Franchise Development Coach for multi-award winning Daisy First Aid. She consistently helps new franchisees with no previous business or marketing experience to start making money immediately and hit their initial goals within 6 months. Her proud moments include Daisy First Aid being awarded the British Franchise Association 2023 Continuous Improvement award and helping numerous women successfully leave their previous jobs to become profitable franchisees to fulfil their dreams of independence and work-life balance. Stacey lives in Surrey, UK, with her partner and 3 children and is also a passionate advocate of parents’ mental health following her own experiences as a self-employed mum.

Franchise Support Director

David Pearce

Owner / director - rhythm time.

Book That In, CTO

Phillip Archer

Business planning & funding manager.

Frank Sahlein

Frank has been active in the Children’s Activity Center industry as an athlete, coach, business owner, consultant and business broker. He is a native of San Mateo, California and graduated from San Jose State University in California (USA). Frank was a pioneer of the Children’s Learning Opportunity Center concept from 1976 – 2016 at the Wings Center in Boise, Idaho (USA) – a blend of Sports Instruction, Arts, Education, Entertainment and Outreach programs. As a business management innovator, Frank has delivered over 1,000 presentations for a variety of Children’s Activity Center industries such as gymnastics, swimming, cheerleading, dance, martial arts/ninja and child care/education. 3rd Level Consulting is a Business Development and Service Provider Partner for private industry companies, associations, and organizations in the USA, Australia, Canada, New Zealand, Singapore, the United Kingdom, Mexico, and Panama. Two-time recipient of the National Business Leader Award from USA Gymnastics, Frank is the author of “Building Your Business Potential” and “Designing Your Empowered Life”. He is the creator of the SmartEDGE™ Business Applications and Management Certification Courses. He is the co-founder of LEAP Learning and the MetaSpheres Corp, and is the founder and Executive Director of the International Association of Child Development Programs. His passions include his beautiful wife Lourdes Gonzalez, family, friends, fitness training, transformational reading and travel.

How to Build a Childcare Business Plan

A step-by-step guide for childcare with tips and a detailed outline to help entrepreneurs start their childcare business.

Table of contents

• What Is Childcare and Why Should I Start One
• Types of Childcare Providers
• Essential Steps Before Starting Your Childcare Business
• Develop Your Buyer Personas
• Decision Journey Map Definitions
• Determine Your Competitors  
• How to Start Your Childcare Business
• Conduct an Opportunity Analysis

Problem and Solution

• Execution Plan

Strategic Alliances

• Financial Forecasts
• Consider Various Funding Sources

Form Your Childcare Business

• How to Gain Enrolment at Your Childcare
• Find the Right Childcare CRM Software to Manage Enrolment with Less Work

Check Out the Tips and Tricks

Changing parent expectations have created an environment where the old way of managing the parent experience from initial enquiry through family retention doesn’t work anymore. It’s inconvenient, time-consuming, and full of obstacles that cause families to choose another childcare centre altogether.

Childcare organisations that make the parent experience digital and convenient will grow enrolment, increase retention, and remain competitive in the childcare market. In this guide, you'll view the key takeaways from our research and provided recommendations to help you grow your business by optimising the parent experience .

What is childcare and why should I start one?

According to Forbes , childcare businesses were projected to have some of the fastest employment growth of all industries through 2020. Starting a childcare is a great opportunity for aspiring business owners who have a passion for early childhood education and child development.  

‘Childcare’ is an umbrella term for various options (such as Montessori, preschool, and many more) where parents and guardians drop their children off and leave them in your care to...  

• Socialise with other children in their age group  
• Learn basic fundamentals for future academic success  
• Reach important developmental milestones

Is starting a childcare business worth it?

Starting a childcare business or franchise is profitable, emotionally rewarding, and sustainable – the need for committed childcare entrepreneurs has never been greater.  

As of 2021, there were 13,370 childcare centres in Australia. The growing popularity of childcare centres comes from the demand. Parents will always need a form of care for their kids. Plus, there’s a necessity, especially beyond COVID-19, to socialise children in an environment that fosters development.  

Types of Childcare Providers 

• Family Daycare  
• Relative care  
• Preschool (only)
• Independently-owned daycare
• Childcare Groups  
• Before & After School/Vacation Care

The difference between individual centres and childcare groups.

An independently-owned daycare often has an individual owner, a centre director, and possibly a few other administrative staff members – along with teachers, cooks, bus drivers, etc. The owner is typically an individual who puts their own money and savings into opening the centre, so all business rights (name, branding, etc.) belong to them.  

Alternatively, a childcare group falls under a corporate brand who has acquired centres in multiple locations and either re-branding or keeping the current brand (to grow their portfolio). This type of business is usually controlled by a group of employees in a head office or headquarters facility. 

The centre directors, cooks, educators and teachers are then recruited by the childcare group itself and distributed to different locations to maintain similar or exactly the same policies, values and learning program. Ultimately each location is owned and operated by the larger corporate group.

Essential steps before starting your childcare business

1) conduct market research.

When it comes to starting your childcare centre, relying on assumptions about your customers and competitors leads to wasted time, money, and effort. In contrast, businesses that conduct regular market research improve customer retention and are 76% more likely to see an increase in revenue.  

Market research is a data collection process that evaluates both consumer behaviour, competitor habits, and industry trends to determine the viability of your centre and build a foundation for future business operations.  

Prepare for success upfront by conducting thorough market research to understand your competition, improve communication with your target audience, and identify new market opportunities. This research should result in actual data that you can use to drive your business and marketing strategies as you launch your centre.  

There are a variety of tools available to help you conduct market research - all from the comfort of your own office. Gone are the days of hiring team members with clipboards to approach consumers face-to-face. Survey Monkey, Typeform, Google Forms all offer digital market research tools to help guide you through the process of understanding your audience, your competitors, and your industry.  

 2) Determine Your Target Market

A market segment is a group of consumers that could potentially enrol at your childcare centre. First, identify your market segments and determine how big each segment is.  

Be careful not to fall into the trap of defining your market as “everyone in your community.” This often leads to a ‘spray and pray’ approach to your marketing and as we know, a message for everyone really speaks to no one. When you generalise your advertising in favour of not isolating a potential consumer, you aren’t able to effectively communicate with your ideal customers – forgetting to recognise how your family entertainment centre can appeal to them and their needs.  

A classic example is a shoe manufacturer. While it would be tempting for a shoe company to say that their target market is anyone who has feet, realistically they need to target a specific segment of the market in order to be successful. If they sell adult athletic shoes, they should be building their message to target athletes or individuals who enjoy staying active and exercising. Likewise, if you offer programs for children aged 6 months to 4 years old, you should prioritise advertising towards young adults in their 20’s and 30’s.  

A common strategy when identifying target markets is to use the TAM, SAM, and SOM approach to look at market sizes from a top-down approach as well as a bottom-up approach.  

Target Market Terms

• TAM: Your Total Available or Addressable Market  

This should include everyone you wish to reach.  

Example: Your entire local community.  

• SAM: Your Segmented Addressable Market or Served Available Market  

This is a portion of the TAM you will specifically target because they align with your offerings.  

Example: Families with young children.  

• SOM: Your Share of the Market  

This is the group of your SAM that you will realistically reach—particularly in the first few years of your centre’s opening, as you may expand and grow your service over time.  

Example: Families with young children who make at least $65,000 each year in household income.  

For childcare organisations with multiple brands, schools, or programs - increasing revenue and keeping families happy is vital for growth. Your Millennial parents need a uniform, high-quality experience, regardless of location.

Standardising business processes has a significant impact on time savings, costs, and most notably on quality. In fact, standardisation improves quality by   61.9%,  on average. Create consistent  enrolment processes across all your locations to ensure every family has a great experience and a positive association with your brand – leading to higher conversion success and profitability.  

To achieve consistency, your marketing approach and advertising material must follow all your corporate brand guidelines. Your organisation should have a lead management system that supports your childcare staff as they  guide families through   the decision-making journey  while also ensuring each location is delivering a consistent parent experience.  

3) Develop Your Buyer Personas

Before you begin writing your marketing plan, make sure you’ve defined your market and buyer personas. Without a deep understanding of who you’re speaking to, a marketing plan will have little value.    

Audience personas allow you to dive even deeper into your target market and help you understand more than just who your customer is. These identities inform you how to communicate with your customers in a way that relates to their pain points and needs.  

When you understand your customer’s motivations, you can uniquely address their concerns and questions in your marketing materials - leading to increased tours, enrolments, and revenue.  

Start by listing out the various kinds of programs and classes you’d like to offer at your centre.  

Then, determine who the primary decision-maker and who the primary influencers might be in each scenario.   

Primary decision-maker : typically the individual(s) taking financial responsibility and remitting payment at your centre.  

Primary influencer : also crucial in the purchasing process as they often have the ability to sway decision-makers.  

For example, imagine you’re promoting availability for Holiday program at your centre. In this instance, the primary decision-maker might be the parent(s) or guardian(s) whereas the primary influencer would likely be the child who’s deciding what kind of activities they want to do this Summer.  

Audience Overview

List the audiences, personas, or segments that you want your centre’s marketing and messaging efforts to reach.  

Select one audience from above and describe it to the best of your knowledge. Go beyond the traditional persona to consider motivations & behaviour.  

Identify the key stages in your audience’s enrolment journey from beginning to end, knowing there may be multi-dimensional steps within a stage. Complete the table for each journey at the individual stages from the specific audience’s point of view.  

Decision Journey Map Definitions 

Stage : This refers to each stage of the enrolment journey - awareness, consideration, action, and advocacy.  

Awareness : This is when a family is first learning of your centre and your brand. They are researching multiple childcare centres and eventually send an inquiry to tour your facility or learn more.  

Consideration : During this stage, a family is touring your centre and may be deciding between you and 1-2 other providers. Tip: Proactively equip your staff with key talking points so they can highlight your unique centre features.  

Action : This is when a parent decides to enrol their child for care, pay fees, and is either placed on your waitlist or already enrolled.  

Advocacy : After a successful, happy experience, this parent or guardian has become an advocate for your business. They’re telling friends and family about your centre. This is vital for your word-of-mouth marketing strategy.  

Emotion : Identify what the persona is feeling at each stage of the customer’s journey. They may be anxious, curious, excited, or satisfied at various points. Put yourself in their shoes.  

Key Actions : What actions would a consumer take at each stage? For example, during the awareness stage, they may see your ad on Facebook, look you up on Google, or visit your website. In a consideration stage, they may call your centre to get more information, look at your services online, or read reviews.  

Questions : What questions is the consumer asking in each stage? These are the questions you need to be answering for them in your advertising and marketing efforts.  

Determine your competitors.

Competitive research helps you understand why customers choose your centre over other alternative care options. This information provides you with insight about how your competition is marketing their services and over time, this can help you improve your own marketing campaigns and business offerings.  

Look up similar childcare centres in your area, see what programs they offer, the type of facilities, their capacity, and curriculum. Then, highlight the features that make your centre stand out. Showcase your selling points in all marketing and advertising efforts.  Get started with these key questions...

Who are my direct competitors and what services do they offer?

For example, other childcare centres, family daycare or school pre-schools.

Who are my indirect competitors?

For example, other childcare offerings that may lure potential families away such as relative care and babysitters, at home programs, etc.

What does my competitions pricing look like?

Do they offer promotional pricing or cheaper daily rates, what do they do best, what areas do they lack in, how to start your childcare business., construct a business plan.

A good business plan will guide you through each stage of starting and managing your childcare organisation- including how to structure, run, and grow your new business.  

There’s no correct or incorrect way to write your business plan. What’s most important is that you identify your business objectives and use this document as a roadmap for how to achieve these goals.  

A strong business plan can help you recruit business investors, gain funding, or find new partners. Prospective investors want to feel confident they’ll see a return on their investment and your centre’s business plan is the perfect tool to assure potentials that working with you — or investing in your business— is a smart and profitable decision.  

Write an Executive Summary

Although this section is the first thing people will read, it’s advised that you write it last, once you know the details of your business inside and out. At this stage, you will be able to articulate your business more clearly and summarise all the information in a succinct, concise manner.  

Ideally, your executive summary will be able to act as a stand-alone document that covers the key highlights of your detailed business plan. In fact, it’s common for investors or loan providers to ask for just the executive summary when they start evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation, and more in-depth financials.  

As your executive summary is such a critical component of your business plan, you’ll want to make sure that it’s as clear and concise as possible. Cover only the essential components of your daycare, ensuring your executive summary is one to two pages maximum. This section is intended to be a quick read that hooks your potential investors’ interest and excites them to learn more.  

The executive summary is a tell-all first paragraph that details...  

• The city and state of your centre (you can decide on the exact location later)  
• A potential open date  
• A projected enrolment count (number of children you can enrol)  
• Programs you plan to offer  
• Ages you hope to serve  
• A quick financial summary (based on grants, funding, and potential revenue from projected enrolments)  

This may seem like a lot of information upfront, but it’s simply a high-level overview of your plan.   

Conduct an Opportunity Analysis 

The opportunity section of your business plan includes information about:  

• The problem that you’re solving within your community  
• Your programs and classrooms  
• Who you plan to market your centre(s) to  
• hHw your daycare facility fits into the existing competitive landscape  

This portion of your business plan is also important for outlining what distinguishes your childcare centre from your direct and indirect competitors as well as how you may continue to expand and grow your centre in the future.  

Use your previous competitive research to determine your daycare business’s competitive advantage and position. Analyse potential strengths, weaknesses, opportunities, and threats. 

Describe the problem that you are solving for your customers. Childcare centres are need-oriented, meaning your consumers have tangible pain points that you must resolve to be successful.  

So, what is the primary pain point for them? Maybe it’s that busy, working parents need a caring, safe place for their child during the day, or perhaps families are seeking after-school care options for their elementary-aged children, or maybe parents need 24-hour childcare options when they’re traveling or working odd hours.   

Now, assess how they are solving their problems currently and where there’s room for improvement. If there's only one childcare centre in your community and it has no open seats, you could be the solution. Or maybe there are lots of existing care providers in your city but they’re expensive or have rigid pickup and drop-off times that working parents have trouble meeting. Or perhaps there aren’t any existing childcare businesses within a reasonable driving distance of where you’d like to place yours.  

Defining the problem you are solving for your customers is by far the most critical element of your business plan and is crucial for your daycare business’ success. If you can’t pinpoint a problem that your potential customers have, then you might not have a viable business concept.  

To ensure that you are solving a real problem, try conducting your own survey with potential customers to get a better understanding of their needs and validate that they have the problem you assume they have. Then, take the next step and pitch your potential solution to their problem.

Do they agree that it’s a good fit or does it seem to fall flat?  See how to come up with a strategic plan for your business.

Write an Execution Plan

The importance of an execution plan.

The execution chapter outlines how you’re actually going to make your childcare centre work . You’l l address your marketing and enrolment plans, operations, success metrics, and any key milestones that you expect to achieve.  

Execution Plan: Marketing and Sales  

The marketing and sales plan section of your business plan details how you propose to reach your target market segments, how you plan on converting those target markets, what your pricing model looks like, and what partnerships you may need to make your centre a success.  

Your Positioning Statement

Once you understand your audience, the first part of your marketing and sales plan is your positioning statement. Refer back to your value proposition to create a simple, straightforward sentiment, explaining where your company sits within the competitive landscape and what differentiates your venue from the alternatives that a customer might consider. This statement should be written for an investor or loan provider, rather than for your customer.  

For example, a positioning statement for a 24-hour childcare centre in Sydney, New South Wales may look like this:  

“For the Sydney-based family who is seeking childcare around the clock, Jenny’s 24-Hour Childcare Centre is a safe option for young children with nutritional meals, best-in-industry sleeping arrangements, a clean outdoor play area, and highly trained care teachers and educators. Jenny’s 24-Hour Childcare Centre is the first centre of its kind within 10 km of the Sydney city centre and offers competitive pricing and competitive daily rates.”  

Use this formula to develop a positioning statement for your centre:  

Your Mission Statement

Your mission statement is a scaled-down version of your positioning statement. This should be just one-two sentences that are geared toward your target consumer and describe what your business plans to accomplish. This statement usually includes company core values that explain your childcare’s purpose and how you serve your audience.  

For example, Busy Bees is a leading early childhood education provider with the mission of “ high quality childcare and exciting learning opportunities that give every child the best start in life .”  

Pricing 

Your positioning strategy will typically determine how you price your memberships and packages. There are some basic rules that you should follow when deciding on your price point:  

Cost-plus pricing: For the most part, you should be charging your customers more than it costs you to host them at your centre to ensure your venue is profitable and is appealing to investors.  

Market-based pricing: Look at what your competitors are charging and then price based on what your audience is expecting.  

As part of your marketing plan, you may wish to collaborate with other organisations such as local camps, after-school programs, pediatricians, or even other childcare centres that don’t offer the same activities that you do.  

This partnership should benefit both of you – it may help provide access to a target market segment for your venue while allowing your partner to offer a helpful recommendation to their customers. If you’ve already established an alliance, it’s important to detail that in your business plan.  

The operations section is all about how your business works. This portion details the essential logistics such as staffing and sourcing and fulfilment. But remember, your goal is to keep your business plan as short as possible, so too much detail here could easily make your plan much too long.  

Milestones and Metrics

It’s critical that you take the time to look forward and schedule the next critical steps for your business. Investors will want to see that you understand what needs to happen to make your plans a reality and that you are working on a realistic schedule.

Then, determine how you will measure the success of each milestone by listing out the key performance indicators and metrics needed to see progress. These will be the numbers you monitor on a regular basis to evaluate the trajectory of your business. For example, you may look at how many families tour your centre each week, how many children you enrol each month, or the amount of revenue you bring in per quarter.  

Company and Management Summary

The structure of your staff and teams sets your daycare up for success. In a new childcare centre, there’s typically an owner, a centre director, staff members, an enrolment or marketing team, accounting/administration, teachers, assistants, cooks, bus drivers, and janitorial staff. For example, the average small daycare business has 8-10 fully licensed and/or certified early education teachers.  

Financial Forecasts  

A typical financial plan will have monthly sales and revenue forecasts for the first 12 months, and then annual projections for the remaining three to five years. Break your sales forecast down into several rows, focusing on just high-level buckets at this point.   

Knowing how much your childcare will cost to open ahead of time can save you money, stress, and time. Childcare start-up expenses vary by size, enrolment capacity, and miscellaneous needs.  

Keep in mind that you can save on staffing costs and cut down on overhead with technology that helps to streamline your centre’s operations. After all, 40% of Millennials prefer self-service over human contact when interacting with businesses.   

It’s essential that you find ways to enable families to book tours and enrol online without ever having to make a phone call to the centre- reducing time spent on necessary-but-manual tasks for both your staff and inquiring families.  

Finally, articulate your profits and losses based on the data from your sales forecast and your personnel plan plus a list of all your other ongoing expenses associated with running your childcare centre.  

Step 1 : Average daily rate per child x your expected enrolments x 12 (annual revenue – assuming each family is still enrolled during the holiday periods).  

Step 2 : Childcare businesses make around 16% profit from their overall revenue, after Childcare expenses. Multiply your number from step 1 by .16 to get your predicted profit.  

Example : Let’s say you plan to charge families an average of $110 per day for childcare. With that, your goal is to enrol 60 students by the time your childcare centre opens. Multiply ($110 x5) 60 x 12 (annual revenue). This should come out to $396,000. Lastly, multiply your revenue of $396,000 by .16, which equals a net profit of $63,360 per year.  

Consider various funding sources.

Depending on your situation, there’s both loan and grant funding in childcare. Between state tax credits, loans, and grants – there are financing options for a variety of situations.  

Collect childcare grants for your business.

Often, startup costs for opening a childcare are high. Certain states and councils offer grants for new childcare businesses. There are several grant options, depending on your child and family details.  

For example, companies and associations such as Australian Grants or Early Childhood Association Australia can help you with more information or support towards applying for these grants and funding.

All legitimate businesses, including childcare will need to apply for an ABN (Australian Business Number) that identifies your business to the government and the community. 

Find the Right Vendors

Choosing the right suppliers for your business is essential. If your vendors aren’t reliable or don’t deliver quality products, your new centre will struggle to attract families. As a childcare provider, you will likely need the following vendors at one point or another:  

Electrician 

Plumber 

Food and Beverage Supplier 

Educational Materials Supplier 

Substitute Staffing Provider 

Accountant 

Cleaning & Maintenance 

Childcare Management System (CMS) 

Customer Relationship Management (CRM) Software 

Digital Payments Provider 

Online Forms Software 

Research Your Vendors

Check their most current reviews and current list of clients.

Review Your Options

Don't settle for the first vendor you see, research and receive quotes from at least 3 vendors.

How to gain enrolment at your childcare.

The next step after successfully starting your daycare business is to grow your centre and gain enrolments.  

Begin by building a string company culture, actively marketing your childcare centre, and finding the right childcare technology to optimise your enrolment process and save time.  

Create a culture where staff want to work.

A childcare centre that stands out from the rest has happy staff members that want to work hard. Create a diverse employee culture that feels comfortable openly talking about situations. Provide support, patience, and room for growth.  

Market your centre.

A childcare marketing strategy starts with an achievable goal. Do you want to fill your enrolment spots? Do you want to build a waitlist? Should you focus on scheduling more tours?  

Choose an objective and measurable results – so you can track and analyse your marketing performance.  

Market, promote, and advertise your childcare centre with...  

Social media (especially Facebook – 83% of Millennials have a Facebook account).  

Landing pages and contact forms on your website  

Listing directories  

Email and text marketing campaigns  

Referrals  

Digital advertisements  

Flyers  

Word of mouth marketing  

Tip: Childcare software that automates the reports you need helps you to saves time and improve your return on investment (ROI).  

For example, with a Source of Families report, you can see where your leads are coming from. It helps you enhance your marketing efforts and refine your spending. Invest in the channels that are popular and spend less on the ones that aren’t working to generate more high-quality leads.  

Find the right childcare CRM software to manage enrolment with less work.

ChildcareCRM is revolutionary childcare software that automates lead capture, follow-up, scheduling tours, and reports. With digital enrolment forms  – you and your staff will save hours of time. Plus, craft beautiful, personalised marketing campaigns to continually grow your business.  

Further, marketing is the growth engine for every new childcare centre. But missed leads, slow response times, a complex parent experience, and lack of reporting make marketing difficult. Busy and overworked staff often don’t have time to complete every manual-but-necessary marketing activity, so opportunities are lost.   

Get more from your marketing while saving educators and centre directors 10 hours every week with ChildcareCRM. Automate everything from lead capture to reporting—all from one place.

For Current Users

Visit our website to learn more.

For Interested Users

Schedule a demo to take the next step and effortlessly increase occupancy and gain enrolments from the get-go.  

Get started With LineLeader.

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• Business Plans Handbook
• Business Plans - Volume 03
• Indoor Playground Business Plan

Indoor Playground

BUSINESS PLAN

KID'S WORLD

5568 Inkster Rd. Livonia, MI 48150

This plan is for a franchised indoor children's playground. The plan provides a good description of possible competitors and the methods that will be used to achieve a competitive advantage in this industry.

EXECUTIVE SUMMARY

Mission and strategy, competitive analysis, pricing, profitability, and break even, management and staffing, contingency planning, financial projections.

A market opportunity exists in the Western Detroit area to service children aged 13 and under with a supervised indoor exercise and recreation facility. Market research shows that children often do not get the required amount of exercise to maintain a healthy lifestyle. Indoor playgrounds provide an outlet for active children during inclement weather or when the temperature is too hot or cold for outdoor play. Furthermore, parents want an environment for their children to play without harsh language and an arcade atmosphere.

Proposed Business

Kid's World will provide a safe, clean, and stimulating environment for physically active children aged 13 and under to play in and explore. Kid's World's supervised, visually open play area will ensure children's safety, while challenging them to reach, think, interact, explore, and have fun. The store will require approximately 14,000 square feet, consisting of a giant 5,000 square foot play structure for children over the age of 4, a smaller play area for toddlers under the age of 4, an area with several interactive skill games, a snack bar with seating to accommodate 100 to 125 persons at a time, and a merchandise and souvenir stand. Both play areas have soft indoor playpark equipment with extensive padding and no sharp edges. Furthermore, the game area will not offer video games, pinball-type games or games with a violent theme. For family celebrations, such as birthdays and special occasions, Kid's World will offer private party rooms hosted by trained staff to provide a child everything he/she would want in a birthday - several hours of supervised fun on the play structures, cake and ice cream, prizes, food and beverage, and game tokens. Kid's World desires playtime to be as rewarding for the parents as it is for the children, as they spend time together.

Kid's World will be located in a strip shopping center on the west side of Livonia. Within a twenty-five mile drive from this location, there are at least 49,000 children at or under the age of 14, living in a household with average annual income exceeding $45,000. Furthermore, the Census Bureau expects the communities of Canton, Plymouth and South Lyon to be the fastest growing regions of Wayne and Washtenaw Counties over the next decade.

The business will be operated on a full-time basis by a manager, Alice Cushaw, who has had over 3 years of restaurant management experience. In addition, all member-managers will actively assist in the management of the business on a part-time basis.

Loan Request

The owners are requesting a loan to fund a portion of the start-up costs and inventory. They are also requesting a line of credit in the amount of $500,000. The owners are contributing $35,000 to the business venture and various investors are contributing another $40,000. The money will be needed in equal monthly installments commencing three months prior to opening and will be repaid in a steady manner from available operating cash flows. The loan will be entirely repaid within five years after opening with payments beginning three months after opening.

Kid's World is a diversified destination family entertainment center combining recreation, entertainment, and restaurant facilities that creates substantial drawing power. Kid's World's basic focus is children's play and fitness for 1 to 13 year old children. At Kid's World, these activities have been packaged into a safe, clean, climate-controlled, supervised environment for children aged 13 and under to exercise and have fun while stimulating their imagination and challenging them physically. The indoor playpark is based on the premise that if you set a large number of children inside a safe, yet challenging, imaginative soft playground area, they are going to have fun. They are also going to develop basic motor skills, social skills, muscle tone, and self-confidence. Furthermore, the parents can enjoy hours of close interaction with their children in a safe, secure, and stimulating environment.

Currently, there are no other indoor children playgrounds in the Western Detroit area. In addition, there are relatively few alternatives for children's birthday parties. Kid's World will be able to immediately fill this void in the market by providing extensive recreation, entertainment, and restaurant facilities for children to play in and explore. Within 1 year, Kid's World will be known as the primary recreation facility for children aged 1 to 13 and the destination of choice for children to enjoy birthday parties with friends. Kid's World's safe, secure, and clean environment will assure parents while providing opportunities for their children to have fun in a stimulating environment.

Kid's World will base its appeal on providing a stimulating indoor environment for children to play in, while adhering to the strictest quality control standards emphasizing excellence in service, safety, security, food quality and value, sanitation, cleanliness, and creativity. Furthermore, Kid's World is dedicated to the continual development of creative themes and interactive designs that have entertainment and educational value that will ensure Kid's World's competitiveness and success in the family entertainment market years into the future.

Indoor playgrounds serve an increasing need in our society. Studies show that American children are less active and less fit than they were even five years ago, probably due to increasing time in front of television sets and high calorie-high fat diets. Studies have also shown that less active children are more likely to be overweight, and overweight children have a greater propensity to become overweight adults. As people have become more aware of the healthy aspects of their lifestyles, enrollment in adult health clubs, aerobic exercise, recreational activities, and attention to nutrition has increased dramatically. This trend will continue as parents attempt to provide a healthier lifestyle for their children. Another area of parental concern is their children's safety. Nationally, as well as locally, concern for the physical well-being of children has created a further need for a safe play environment. This concern shows no sign of diminishing.

While it is difficult to determine the size of the indoor playground industry, there are currently about 49 million children 12 years old or younger in the United States and this figure is expected to rise to 51 million by the year 2000, according to the Bureau of Census. There are approximately 26 million households with children younger than 18 years of age, who spend about $1,800 per year on family entertainment or $46 billion annually. Per-capita expenditures on children's activities are likely to rise as families with children spend a larger percentage of their income on recreation. Children aged 4-12 spent, from their own income, $6 billion in 1989, up 41% from 1984. This increase in discretionary income is coming from several factors. First, the increase in dual income families has provided for more discretionary income to be spent on children. Second, women are having children later as evidenced by the rising birth rate among women in their thirties. Third, per-capita family income is increasing and families are choosing to take wealth increases in the form of leisure. Last, grandparents are living longer and spending more on their grandchildren. Based on these demographics, industry analysts believe that there is room for about 600 store locations in primary markets throughout the United States and an additional 200-300 in secondary markets.

The Customer Need and the Target Customer

With the recent concerns over child safety on outdoor playground equipment, many schools have elected to remove their playground equipment entirely. Parents are more aware than ever before over the safety and security of their children's play areas. Consequently, a safe, supervised indoor play area will enable parents to relax while their children enjoy playing in and exploring the soft indoor playpark.

Kid's World will target children aged 13 and under within a 25 minute drive of Western Livonia, comprising about 250,000 people of which at least 49,000 are under the age of 13. Within a five-mile radius of Livonia, census information indicates there are approximately 23,000 children aged 13 and under, living in a household with an average annual income exceeding $55,000. These customers will form Kid's World's primary market base. Kid's World will also target children in the outlying regions of Oakland County.

Product Description

Kid's World is geared for children 13 years old or younger who desire an imaginative, challenging, and fun environment in which to exercise, play, and explore. For safety, children must be accompanied by an adult in order to be admitted and adults are not permitted to enter without a child. Furthermore, each person admitted to the playpark will receive a color-coded wristband identifying him/her with rest of the party. To further promote security, each person's wristband will only be removed when the entire party is present together at the exit desk. Trained staff will supervise the play areas at all times to ensure adherence to the playpark rules while assisting the children to maximize their enjoyment of the facilities.

There will be several play areas within Kid's World; the largest, a 5,000 square foot structure targeting children aged 4 and over, will be comprised of a series of colorful tubes, slides, ball baths, climbing structures, air and water trampolines, obstacle courses, ramps, and stairs. A smaller play area will cater to toddlers and consist of cushions, ramps, a small ball bin, and toys. To encourage active participation by parents, all play areas will have a visually open design with comfortable rest areas in full view of the play structures.

Kid's World will also be equipped with a smaller area of interactive games designed to promote eye and hand coordination. This area will include the "Magic Keyboard", a unique piece of musical play equipment specifically designed for Kid's World. Parents and children can also play several games of skill to win tickets redeemable for prizes. There will also be a snack bar with seating for 100 to 125 customers at a time. It will serve food and beverages that appeal to children and parents such as pizza, hot dogs, salads, sandwiches, popcorn, pop, fruit juice, cappuccino, cake, and ice cream. In addition, Kid's World will have a merchandise counter with small souvenirs emblazoned with the Kid's World logo such as T-shirts, sweaters, and hats.

Kid's World will have six private party rooms and will offer packages for birthdays and other special occasions hosted by staff members, significantly reducing the hassle and mess for parents. The design of the rooms will allow for groups as large as 30 children at a time. For family celebrations, Kid's World will offer three birthday packages for parties of 8 of more, consisting of a two hour limited time of play, birthday cake and ice cream, free game tokens, and, depending on the type of package, pizza or hot dogs, party favors for the guests, and a special gift for the birthday child.

Strategy and Approach to the Market

Kid's World will strive to appeal to value-oriented customers who desire hours of entertainment for their children at reasonable prices. Kid's World will be competitively priced at $4.95 for unlimited play which is comparable to other forms of entertainment. However, the distinguishing feature of Kid's World will be its clean, safe, secure environment for children to play in while parents can either relax or participate in their child's activities.

Advertising

Kid's World will reach its target customers through such advertising media as local newspapers, local television, and direct mail campaigns. Local television advertising has been found to be very effective in reaching the target market segment of children 13 and under, so we will focus our efforts here. The advertising and promotion campaign will be funded through operating cash flows and will build upon the close proximity of the store to the corporate location. In addition, the franchisor will assist its franchisees through regional advertising programs to obtain synergy among all franchisees within the region. Kid's World will initially promote its concept through a Grand Opening advertisement campaign employing an invitation-only free evening for local business and government leaders and their children as well as local radio coverage. The franchisor will assist in the preparation of initial advertising and scheduling of promotions.

Location Characteristics

The nature and location of Kid World's business will support both destination and walk-in shopping. Since the majority of birthday parties are pre-planned events, the exact location of Kid's World with respect to major shopping centers is not as critical as it is in other retail businesses. However, parents shopping with their children may desire an outlet for their children in the form of indoor exercise and recreation. Once customers are aware of Kid's World's location, they will return again and again. Figures from the corporate store indicate an average return rate of seven times per child per year. Our financial forecasts conservatively project 1/3 less. The awareness of our location will develop over several months due to advertising, word of mouth, and simple observation by shoppers in the area.

Kid's World will locate in Livonia on Inkster Road in the Heights Shopping Center. This shopping center consists of two separate buildings totaling 73,480 square feet of rental space and contains both destination and walk-by businesses. The center is primarily focused on providing family related services to the local community. Within three miles of this location, census data indicates there are 9,854 children under the age of 14. Within five miles of this location, census data indicates there are 23,061 children under the age of 14. In addition, there are several elementary schools located in the proximity, a day care center directly behind the shopping center, and many other child-related businesses within a few blocks along Inkster Rd. in either direction.

To better ensure Kid's World's success, the franchisor, Kid's World, Inc., must approve the final location and subject it to their proprietary location requirements.

Unique Market Characteristics

Weekly usage patterns.

With 60 to 65% of the costs fixed and only 35 to 40% variable, even small increases in capacity utilization can have a major impact on profitability. With a projected 60% of revenue coming from Friday through Sunday, it will be important to effectively utilize capacity on weekdays. Kid's World will provide the following services to increase customer usage during this period: group discounts to day care centers, churches, community groups, schools, etc., a frequent user card to encourage repeat customer visits, nutritious food to attract health-conscious families, and promoting birthday parties during the week.

Seasonality

The winter months are usually the strongest, and the beginning of spring and the beginning of the school year are usually the weakest periods. On a quarterly basis, Kid's World's best quarter should be the first, followed by the third, second, and fourth quarters. To manage this seasonal variation in customer demand, management will actively monitor weekly sales volume and maintain a flexible staffing arrangement.

Threat of a Fad Product

There is a risk that children may tire of the concept of indoor padded playgrounds. To keep the concept fresh, Kid's World will strive to introduce new play equipment, skill games, and/or new marketing concepts annually. In addition, the franchisor is committed to ongoing research and development in the area of child interaction and stimulation through consultation with staff child psychologists.

Safety/Liability Concerns

To reduce the potential for injuries and lawsuits, Kid's World will employ every means possible to protect children from hurting themselves on the play equipment. Kid's World will only utilize the softest and most extensively-padded equipment in the industry. Furthermore, Kid's World will employ trained staff to continuously monitor each play area and enforce the rules of the playpark. The playpark will be designed to provide parental viewing on all sides and at all times. Parents will also be encouraged to play in the equipment with their children (knee pads will be available for a nominal charge.) In addition, security wristbands will be issued to each person upon entering to ensure the child's safety and prohibit stranger abduction of children. Strict security measures will be observed at all times. Kid's World will carry a $1 million per occurrence liability insurance policy in the event of lawsuit.

Nature of Competition

Competition in the children's recreation and entertainment industry consists of a highly diverse group of children's activities, including television, libraries, YMCA's, health clubs, parks and other recreation centers, movies, the zoo, and related activities. All of these activities provide for enjoyment by both the parents and the children. However, an indoor playground offers a safe, clean indoor environment for physical activity that is specifically designed for children. It provides children with the security and the skill development opportunities that parents desire.

The indoor playground industry is relatively new. Among the existing players in the indoor playground industry, competition is fragmented. The only company with a strong national presence is Surprise Land, possessing over 250 store locations across the United States, Canada, Mexico, and Europe. A significant threat also exists from Connell Corporation, which has started an indoor playground concept of its own, Jungle Play. Although Jungle Play is still in a testing phase, Connell's has the resources and experience to expand its concept rapidly. In addition, there are numerous regional players with fewer than 10 stores across the nation, although relatively few of them are actively seeking franchisees.

Presently, there are no indoor children's playgrounds operating in the Livonia area. Within a 25 minute drive from Livonia are the following primary competitors to Kid's World:

Competitive Advantage

After reviewing the characteristics and environment of each of the above competitors, we believe that Kid's World offers several advantages over the existing competitors. First, Kid's World offers the lowest admission price, charging $4.95 per child, of any establishment dedicated to providing an extensive indoor playground. Second, Kid's World encourages parents to participate in their children's recreational activities through a careful layout of the playpark which ensures high visibility of the play areas and close proximity for the parents. Third, Kid's World is the only indoor playground operator that provides such unique play equipment as the Magic Keyboard, an air mattress, and games of skill that are specifically designed to promote child development. Fourth, Kid's World goes to extra lengths to ensure the safety and security of the environment by providing such extras as CPR certification for all employees of a certain level, video monitors of the entire playpark, and strictly controlling the entrances and exits to Kid's World. Last, with the corporate Kid's World location being so close to Michigan, name recognition should be high, as many of the potential customers have already been to the existing Kid's World location.

Analysis of Competitors

The following section briefly discusses each competitor's market position, strategy, and unique operating characteristics.

Captain Sam's

Captain Sam's primary focus is on an extensive array of video games, mini-rides, interactive skill games, a puppet show, and food. Although it has a small playpark area for toddlers, Captain Sam's is primarily dedicated to food service and games. Consequently, it serves as a destination business for pre-planned visits, centered around its food service for family outings and birthday parties. It is an open layout with more windows than other children's entertainment centers and has the atmosphere of a large noisy cafeteria. It charges no entry fee, but maintains high prices for its pizza, ice cream, and beverages. Catering more to parents, the Ypsilanti location allows smoking and serves alcoholic beverages along with pizza, hot dogs, and nachos. It does not instill a sense of security for the parents, nor does it provide the challenging and stimulating environment that children desire.

Surprise Land

With over 250 fun centers in operation as of April 1994, Surprise Land is the largest operator of indoor playgrounds for children. The company was founded in 1990 and began its early growth through franchising. In 1993, Reeves Entertainment acquired 20.1% of Surprise Land's shares with an option to purchase additional shares up to a 51% interest in the company. In order to sustain market leadership and pre-empt competitive threats, Surprise Land has adopted an aggressive expansion campaign with the goal of securing what they feel are the best locations across the country. Specifically, Surprise Land plans on opening 90-100 domestic fun centers a year and franchisees are expected to open another 100 in 1994, the majority of which will be opened by Reeves Entertainment. At this rate, they will have an estimated 360-400 stores by the end of this year and 600 by 1996. This rapid expansion is evidence of the acceptance of this concept by both children and adults. To complete this aggressive plan, Surprise Land has adopted a regional organizational structure and invested in systems to operate and maintain a chain with hundreds of stores in many markets.

In October, 1993, Surprise Land entered the Detroit market by opening its first store location in Warren (east side of Detroit), followed by additional locations in Taylor (downriver area), Plymouth (western suburb), Farmington Hills (northern suburb). Surprise Land has future plans for an additional locations in the metro-Detroit area, including Troy, Novi, and Ann Arbor. In addition, Surprise Land is planning to locate in such outstate areas as Flint, Lansing, Traverse City and Saginaw.

Surprise Land is similar in concept to Kid's World in that it provides a controlled environment for children to play in and explore with their parents. It consists of the Menster-Zone, a 3,000 to 4,000 square foot play area for children aged 4 to 12, the Tiny-Zone, a smaller play area for toddlers, an area of interactive skill games, five or six party rooms, and a snack bar serving foods such as pizza, hot dogs, popcorn, and ice cream. In addition, Surprise Land provides a quiet room for parents who wish to let their children enjoy the play areas unattended.

The primary difference between Surprise Land and Kid's World is the emphasis on a safe, clean, secure atmosphere as well as the level of encouraged interaction between child and parent. While Surprise Land promotes the safety and security aspects of its play areas, it's easier for children to leave the premises unnoticed and it allows adults to tour the facilities unescorted. Furthermore, the snack bar seating is usually located in the center of the play space, leading to sticky floors, congested walkways, and visible food wrappers next to trash dispensers in every interior corner of the playpark. The play structure at Surprise Land is contained in a smaller area than Kid's World and is typically placed in a corner of the facility. This can lead to heavy congestion in the play area during peak hours, a restriction of airflow throughout the playpark, and a general lack of incentive for parents to interact with their children. Kid's World's play structure is located in the center of the room with benches provided on the walls surrounding the structure, promoting visibility at all times by the parents and staff monitors and encouraging parent/child interaction.

Jungle Play

A subsidiary of Connell Corporation, Jungle Play started in 1991 and has since grown to approximately 40 locations nationwide. Connell's plans for Jungle Play include a steady but cautious introduction of new stores located primarily in major market areas. In the Detroit area, Jungle Play outlets are located in Southfield, Dearborn Heights, and Redford Township. Connell's usually builds free-standing structures on land located adjacent to major shopping malls. Therefore, it is likely that Jungle Play may be looking at the available real estate on the exterior of Novi Mall for future expansion. If Jungle Play were to locate in Novi they could represent formidable competition for Kid's World. However, the strong demographics of this area suggest that it could support 3 or more children's indoor play facilities.

Jungle Play is similar in concept to Kid's World and Surprise Land in that it provides a safe, secure, clean, and stimulating environment for children to play in. Jungle Play is somewhat larger in size than Kid's World. Unlike Surprise Land, Jungle Play's play structure is designed to promote parent/child interaction. Jungle Play is particularly adept at providing birthday services by including such extras as a name board to alert all customers of the day's birthday children, a cart for transporting birthday gifts, and extremely friendly and courteous staff. Jungle Play obtains additional business by giving discounts during non-peak hours, allowing groups to rent the facility after-hours, and promoting such activities as overnight lock-ins, fund raisers, and school fieldtrips.

Kidville opened its first and only location this past March in Garden City and has since expressed interest in franchising its concept. Similar in size and appearance to Surprise Land, Kidville offers a multi-level play-park complete with treeforts and slides for children over 4 and a separate play area for children under the age of 4. It is similar in concept to Surprise Land, Jungle Play, and Kid's World, but it does not represent a formidable threat since it has not yet decided to expand via franchising or additional corporate locations.

Kid's World will derive its sales revenues from admissions, games of skill, restaurant/snack bar operations, birthday party packages, and gift shop and souvenir sales. A detailed description of each component of revenue is provided below.

Admissions/Games

Admission fees will be $4.95 per child (ages 1-17) which includes unlimited play in all of the play areas. Adults will be admitted free of charge and encouraged to play in the play areas with their children. This price compares favorably to other forms of family entertainment such as movies where both adults and children must pay admission. The goal of Kid's World is for a visit to the playpark to become a regular family event. Reflecting this goal, a frequent user card will enable a customer to receive discounts off future admissions to Kid's World after a specified number of paid admissions to the playpark. Statistics from the corporate location show the average child returning seven times per year. In addition, Kid's World will offer group discounts for groups of 12 or more at $3.95 per person to encourage day care centers, youth group activities, and summer camps to visit the playpark. For larger groups of 30 or more children, Kid's World offers a special package at $5.00 per child that includes unlimited play in the playpark, two game tokens per child, a slice of pizza or a hot dog, and a beverage.

The 125 person capacity snack bar will offer food products that appeal to both children and parents alike. It will offer traditional children's favorites such as pizza, hot dogs, and popcorn as shown below on a sample menu:

Birthday Party Packages

For family celebrations Kid Kingdom will offer three birthday packages for parties of 8 of more, consisting of a two hour limited time of play, birthday cake and ice cream, free game tokens, and, depending on the type of package, pizza or hot dogs and a special gift for the birthday child. The three birthday packages offered include the following:

έ Regal Celebration $7.95 per child Three game tokens per child Invitations/Balloons Nine-inch double layer cake Pop/punch Ice cream

έ Supreme Celebration $8.95 per child Three game tokens per child Invitations/Balloons Half-sheet cake Pop/punch Ice cream Pizza or hot dogs Special Kid Kingdom gift for the birthday child

"Supreme "Theme" Celebration $10.95-$12.95 per child Includes all items in Supreme Celebration, plus: Special theme gifts for all children in the party Custom decorated half-sheet cake

Gift Shop/Souvenirs

The gift shop will contain various souvenir merchandise available for sale such as T-shirts, hats, sweaters, and wristbands with the Kid Kingdom logo. The gift shop will also provide various prizes and gifts for children to redeem with tickets received from completing the games of skill.

Break-Even Analysis

Projected fixed costs for an average month include the following:

Hence, at a projected gross margin of 78% (contribution margin of 83% less franchise fees of 5% of sales) monthly break-even volume is:

$50,919/.78 = $65,281 or 4,340 visits per month

Per the attached financial projections, break-even is projected to be achieved at a monthly revenue level of $65,281. Given our revenue forecasts of $82,213 per month, it appears that we will be able to exceed break-even revenue levels at significantly less volume. Competitive assessment suggests that indoor playgrounds of comparable size and scope typically exceed the break-even monthly sales level within the first month after opening.

Hours of Operation

Initially, store operating hours will be from 10 AM to 9 PM Monday through Thursday, 10 AM to 10 PM Friday and Saturday, and 12 PM to 6 PM on Sunday.

Sources of Inputs

Description of Cost Items

We have identified a prospective rental location of 14,000 square feet and have negotiated a ten-year lease with one ten-year optional extension. The rental payment schedule is as follows:

The terms of this lease call for a one month's rent security deposit. Per agreement with the prospective landlord, our first ninety days of occupancy will be free of rent. We anticipate the first thirty days of that period will be devoted to equipment set-up and staff training, hence we estimate approximately sixty days after opening as the date the first rental payment will be due. The lease does not contain a percentage rent clause based on achievement of certain sales levels.

Leasehold Improvements

The majority of leasehold improvements will be completed by the landlord prior to our occupancy. These include painted outer walls, carpeted and/or tiled flooring, acoustical tile drop ceiling with recessed flourescent lighting, two restrooms, and a manager's office. Items we have budgeted for include: party room construction (estimated by landlord at $10,000), signage - an exterior facade sign, an interior neon sign, and an exterior sign for the shopping center's pylon sign [estimated at $15,000), front entry desk and counter-tops (estimated by franchisor at $9,000), and wall decorations, decorative lighting, party room decoration, storage room shelving and lockers, workshop/game repair room, and miscellaneous items (total budget of $11,000).

Fixtures and Equipment

In addition to the leasehold improvements, we have budgeted $50,000 for restaurant fixtures and furnishings. These include pizza ovens, refrigeration units, beverage dispensers, sinks, countertops, tables and bench seats, and storage shelving. The two most significant equipment expenditures are the main playpark structure (including the toddler play structure) and the various games of skill. The total cost of the playpark structure has been budgeted at $220,000 and depends on many factors, including its overall size, configuration, and complexity. The franchisor has developed several playpark layouts to accomodate the unique characteristics of our rental space. Preliminary estimates from two indoor playground manufacturers have been in the range of $175,000 - $200,000 for the entire playpark structure. Typically, 50% of the total purchase price is due upon ordering the equipment and the remaining 50% is due upon shipment. Lead-time for playpark equipment has been estimated at 7-8 weeks. The total cost of the games of skill has been budgeted at $75,000. The franchisor has developed an extensive list of pre-approved games of skill to select from, most individual games priced between $2,000 and $5,000 each. Most game equipment companies also require 50% down when ordering and the remaining 50% upon shipment with an estimated lead-time of 4-6 weeks. We have also budgeted $15,000 for computer hardware, $5,000 for the franchisor's software programs, and $5,000 for miscellaneous office equipment, such as a copy machine, fax machine, public address system, and telephones.

Depreciable Total and Method

The depreciable costs listed above are summarized as follows:

These capital expenditures will be depreciated using the Modified Accelerated Costs Recovery System (MACRS) over various lengths depending on the useful lifes of the assets as mentioned above.

Utilities include electricity, gas, and water/sewer. Our estimates of electricity, gas, and water/sewer costs (based on franchisor estimates and contact with Detroit Edison, MichCon, and the City water department), suggest annual utilities will cost approximately $25,000.

Kids World will carry extensive insurance policies protecting it in the event of lawsuit. The insurance policies carried include: $1,000,000 per incident premises liability insurance covering bodily injury, property damage, and non-owned autos; $1,000,000 product liability insurance coverage; 100% replacement coverage on building contents and leasehold improvements; three month business interruption insurance, and worker's compensation insurance as required by law. These insurance policies have been estimated at $15,000 on an annual basis.

Inventory will consist of redemption items, game tokens, tickets, identification bracelets, paper products, food ingredients, restaurant supplies, and gift shop sale items. The budgeted initial investment in inventory is $7,500 based on franchisor estimates.

Working Capital

Based on franchisor estimates, Kid's World will require $50,000 of available cash, line of credit, or other liquid reserves to cover operating expenses for wages, utilities, rent, and similar expenses.

Business Organization

The business will be organized as a partnership under the name of Kid's World. Thomas Jones and Alice Cushaw will serve as Registered Agents.

Staffing Plan

In the event Kid's World's acceptance is slower than anticipated, expenses can be reduced as follows:

Certain games and planned playpark additions can be leased, reducing up-front cash expenditures by $20,000 - $50,000.

The Secretary position can be eliminated and its job responsibilities performed by the two Assistant Managers. This can reduce salary expenditures by $20,000 annually.

Since the majority of Kid's World's employees are part-time and only scheduled to work up to two weeks in advance, the employment level can quickly and easily be adjusted to operating conditions.

Management fees can be reduced or eliminated entirely, as the member-managers do not depend on the business as their main source of income. This can reduce expenditures by up to 5.0% of sales, or up to $50,000.

These savings can significantly reduce operating expenses in the event of unforseen circumstances, lowering the break-even volume of the store.

Projected Revenue Buildup

Projected Revenues by Source

Projected Start-up Costs

Projected Salary and Wage Expense

Management Fee Schedule

Projected Capital Contributions by Source

Proforma Income Statement - Year 1

Proforma Balance Sheet - Year 1

Proforma Statement of Cash Flows - Year 1

Proforma Income Statement - Year 2

Proforma Balance Sheet - Year 2

Proforma Statement of Cash Flows - Year 2

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Children’s Play Centre Business Plan

Looking for ideas to develop a powerful children’s play centre business plan?

A business plan is a vital document and outlines the purpose and goals of a business. It offers a complete idea about a business from the marketing, operational and financial perspective. It serves as a road map and lays the foundation of running a successful business. From enabling you to understand the feasibility of business to help secure investment, a convincing business plan is essential.

However, developing a comprehensive business plan requires skill and experience. It requires the consideration of several vital aspects of a business. If you are a new entrepreneur and daunted by the thought of creating a business plan, we are here to help you. At BusinessPlans, we are experts in crafting some of the best plans for our clients. Our wealth of experience has enabled us to have a thorough understanding of the needs of businesses. We can help you design plans that are concise, complete and robust.

With our well-researched plans , you have a complete understanding of the cost involved, gauge the potential risks and manage cash flow. Our solutions help you to plan your business in the most efficient way and tackle challenges effectively. You can also measure the success of your business over a period of time.

For all your business planning needs, look no further. Whatever be your requirement, we can help you craft powerful and convincing plans. Avoid the dreaded ‘Blank Page Syndrome’ and do the smart thing by starting your plan with one that’s almost complete. The children’s play centre business plan is a 16-page document written for an actual Australian business applying for bank finance. We have sensitised the plan and made it more generic to make it suit a wider range of businesses. All that is left to do is to follow what we have written and customise the content to reflect your business.

Why waste time trying to write a business plan from scratch, time is money. Get in touch with us today to discuss your requirement and create an effective children’s play centre business plan. We just don’t present what you tell us, if we think the matter can be improved we let you know and discuss it with you.

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7 Business Plan Templates for Kids (Free Printables!)

By: Author Amanda L. Grossman

Posted on Last updated: May 7, 2024

Download one of these (mostly) free business plan templates for kids to help your child focus on a business idea.

What do supersoakers, Apple computers, and Nike shoes all have in common?

They all started as a business plan.

A business plan template for kids is great for two reasons:

• Your child can play around with it and get familiar with what's required (even if they never start the business)
• It helps kids focus on just one business idea at a time, and to see if they should move forward with it

No matter which category your own child falls into – just playing with business plans, or they have an actual business idea – I’ve got just the free business plan template for you.

Honestly? I wish my own parents would’ve given me one of these when, as a kid, my childhood friend and I had come up with our first kid business idea: selling bean bags. So, good on you for getting your kids involved with business plans so early in life!

Best Business Plan Templates for Kids

Use one of the business plan templates for kids below with one of these 16 kid business ideas .

OR, help them to use one of their original ideas sending sparks in their brain. You can use these 3 kid business plan examples for help with filling it out.

1. Solid Gold Biz Plan

I’ve been in business for 7 years and I’ve made about every mistake in the book.

Probably one of the biggest? Was that I didn't sit down to write a proper business plan (or, ANY business plan) until I was several years into blogging. 

Because of this, I created a free business plan template for kids and teens (on Page 6 of this free printable), so that they practice how to do it right, from the beginning! 

What makes my free Solid Gold Biz Plan different is that it starts your child thinking about the problem that they want to solve – because ultimately, that is the purpose of creating a product or a service. To solve a specific problem for people.

It then goes on to ask them simple questions that will focus them in on what it takes to plan out a business idea.

For example, I raise the question of how much it will cost to not only create the product/service but to also deliver it and maintain it. These are sometimes costs forgotten costs when creating a business plan.

2. BizKids’ Guide to Writing a Business Plan

This free business plan guide for kids includes sections for your idea, your marketing (and what makes your product unique), your startup costs, and an area for pricing so that you can make sure you’ll make a profit.

At the end is a one-page summary where your child can write up their answers from the previous pages all in the same place. Great for tacking up on the wall!

3. Teen Entrepreneur Toolbox

Anthony ONeal partnered up with Dave Ramsey to create the  Teen Entrepreneur Toolbox , a kid’s entrepreneur kit and small business guide for teens.

In other words, it’s so much more than just a business template for kids!

The entrepreneur kit includes the following:

• Access to the Free Entrepreneur Toolbox app
• Teen Portfolio Book
• DVD of Anthony’s Training Video
• Parent’s Guide Book
• Pack of Thank You Cards
• Deck of Conversation Starter Cards about Starting a Business
• Goal Tracker Poster

Here's my full review of the Teen Entrepreneur Toolbox .

4. Proverbial Home Maker’s Family Business Plan Guide

This is such a fun guide that you can fill out with your child, teen, tween, or even the whole family. It includes family business ideas, a sales ledger, an inventory worksheet, and much more.

Business Plan Examples

You may be wondering where you can find business plan examples to show your kids or teens.

For starters, you should look right at home. Are you a small business owner?

Then you’ll definitely want my free Take Your Child to Work Day printables – it’s got a section for you to fill in about your own business, which is a perfect business plan example to discuss with your child.

You can also find two business plan examples on the Small Business Administration’s site (scroll down until you see red buttons for Rebecca’s example business plan, and Andrew’s plan).

They’re not entirely kid-friendly but can give lots of ideas for the kind of information and research to put into a business plan.

Business Plan Activity Worksheets

Check out these free PDF Shark Tank worksheets for students . Students or kids can work through coming up with their own business ideas, create an advertisement for it, and a scoring card to judge the business ideas.

You’ll find a free 30-minute Small Business Administration course for young entrepreneurs meant for teens that you can use with your students (or have your child go through).

Hint: In Objective 3, it goes over how to create a business plan.

Are you an educator? Great – you can get a free entrepreneur curriculum for Grades 1 – 12, with lots of worksheets, from the Venture Lab .

Further resources include:

• Teen Business Video Lessons
• EverFI’s Entrepreneurial Expedition
• FEE’s Course on the Entrepreneur’s Role in Creating Value
• Business Plan Note Taker (lots of great prompts to create a business plan with)

Grab 23 more entrepreneur lesson plans here.

I hope you've found some business templates for kid resources that interest you. Below, you'll find other related kid entrepreneurship articles that will help your kids, teens, and students learn about the entrepreneur's career path. 

Related Kid Entrepreneurship Resources

• 27 Youth Entrepreneur Awards and Scholarships
• 5 Kid Entrepreneur Kits
• 14 Kid Entrepreneur Books
• 11 Best Business Simulation Games for Kids
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A Mother's Place

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

A Mother’s Place is a new company targeted to open in downtown Santa Cruz. We will provide a family-friendly environment with high quality customer service to meet the daily emotional, physical and social well-being needs of mothers, young children and other family members.

The principal, Emili Willet, the proud mother of a nine-month-old son, wants to fulfill her passion to help and support other mothers in the community. Emili has a Master’s degree in Child Development from Harvard Graduate School and fifteen years of progressive management experience working with children and families. Most recently, she served as Chief of Operations of a childcare management company in the Silicon Valley, and as a Finance Account Manager for the largest corporate childcare center in California for Cisco Systems. The Cisco center was a start-up project to serve over 500 children, and employed 125 teachers and administrators. Emili wants to run a business that will provide a service to families, and that has a fun atmosphere, innovative and top of the line products, a supportive environment and high quality customer service. She feels that Santa Cruz lacks this service, and thus provides an excellent opportunity for her to utilize her skills, expertise and experience in child development and finance management, and at the same time, continue to exercise her passion for working with young children and families.

A Mother’s Place will provide a full range of services, including parenting and childbirthing classes, children’s play programs, “Mommy & Me” classes, fitness and yoga pre-natal classes and coordinated birthday parties.  In addition, it will have a retail store with high-end products for babies and young children.  All of these services and products will be provided by employees who are skilled and experienced with parenting and have child development knowledge.   This place will be the ONLY company in Santa Cruz county that provides all of these services in ONE location with easy access from a freeway, convenient parking and high quality customer service.

Sales projections for A Mother’s Place are estimated to begin at $513,000 in the first year of operation, increasing to $863,000 by the end of the third year. Our net profit will increase over the next three years.

1.1 Objectives

The objectives for A Mother’s Place are outlined below:

• To demonstrate how quality juvenile products will benefit new mothers and families.
• To create a family-friendly space that provides pregnancy resources, parenting classes, playgroups and fitness programs.
• to obtain revenue of $860,000 by the end of third year of operation.
• To increase sales by 20% per year through superior customer service and word-of-mouth referrals.
• In retail sales: to have a customer return rate of 60% by the end of first year.

In order to achieve these objectives, A Mother’s Place has the following goals:

• With a strong and viable business:
• The first year of operation will bring in total revenue of $510,000.
• Second year of operation will bring in total revenue of $665,000.
• Third year of operation will bring in total revenue of $860,000.
• The company will provide services and products that have been rated as “top of the line”, and highly recommended by experts in the child development field.
• The environment of A Mother’s Place will be inviting, professional, and adhere to the highest quality customer care, promoting a strong customer base in all services the company provides.
• Sales will increase by 20% from first year to second year, through superior customer service and effective marketing strategies.
• The return rate of participants in the classes and play programs will be 15% annually.

1.3 Keys to Success

The keys to success in our business are:

• Superior Customer Service: Each employee will have experience with our products, and in parenting.
• Environment: We will provide a clean, upscale, odor-free, enjoyable environment conducive to giving professional trusting service. 
• Feeding support:   We will provide a nursing room to allow mothers to breastfeed or bottle feed their child in a supportive environment, thus allowing them to continue shopping.
• Convenience: We will offer clients a wide range of services in one environment.
• Location: We will provide an easily accessible location and parking for customer convenience.
• Reputation: The principal’s expertise, credibility, integrity, and knowledge from 15+ years experience of working with young children, her Master’s degree in Child Development, and her experience as a mother will establish our high reputation from the beginning. 

1.4 Mission

For the community : A Mother’s Place will provide a family-friendly atmosphere in which customers will gain expertise, resources and emotional and social support through a wide range of services.

For the employees : The company will allow the staff to enjoy the satisfaction of providing quality services to young children and families.

For the business : A Mother’s Place will provide an economically viable business for the principal.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

A Mother’s Place is a new company that will provide high-level customer service and a family-friendly environment in the following categories:

• Juvenile Products (diapers, strollers, car seats, developmentally appropriate toys & books)
• Baby registering service
• Yoga Pregnancy and childbirthing classes
• StrollerFit Franchise (Exercise with baby program)
• “Mommy & Me” and parenting support programs
• Birthday parties for children coordinated by a child development specialist
• Infant/Child Car Seat Installation provided by AAA CPS Certified Employees
• All employees can provide expertise & knowledge on each baby product
• Full-service nursing room provided

What will set A Mother’s Place apart from the competition is our commitment to provide these services in one convenient location, with expertise in child development, experience with each product and high-quality customer service.

2.1 Company Location

A Mother’s Place will be conveniently located in downtown Santa Cruz at 504 Front Street. Unlike many of the stores downtown with limited metered parking, this location has free on-site parking with a new outside lighting system. There is additional free public parking directly across the street with a stop light to provide safety for families who may need to cross the street. A Mother’s Place is one block from the Pacific Garden Mall that includes BabyGap, Cottontales (children clothing store) and Borders Books, all stores that are frequented by families. Down the street, two blocks away on Front Street, is a Long’s Drug Store, and a new Trader Joe’s is scheduled to open by November 2004. All of these stores draw families to this location.

This location is 4,000 square feet, providing ample room for retail space, a tumbling and gym room, a nursing room, inventory storage, and two restroom facilities. It’s currently being renovated by the building owner, and upon completion, the front of the building will have an inviting and upscale appearance.  It’s scheduled to be completed by June 30, 2004 after which A Mother’s Place will begin to prepare the space for opening in September.

2.2 Start-up Summary

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The Start-up table, below, shows our start-up expenses and assets, including the following necessary current assets:

• (Gym Room): Mats, Tumbling Equipment and Mirror
• (Nursing Room): Chairs, Tables, Changing Table

2.3 Company Ownership

A Mother’s Place will be a privately held S corporation owned by Emili Willet, M.Ed.

Products and Services

A Mother’s Place will provide upscale baby products, parenting resources, children’s play programs, and fitness classes.

• Baby/Gift Registering: Families can register items for baby showers, birthday parties and other events.
• Girlfriends Buddy Program:   Pregnant women can obtain an appointment with an experienced Child Specialist (employee of the company) to provide support and recommendations on the baby registration process. Many new moms are overwhelmed with the process, and this can be an inviting opportunity to help new moms make decisions on the needs of her new baby.
• Nursing Room:   Moms can shop with peace of mind knowing that they can nurse their baby when needed without leaving the store. This room will be a full-service program with comfortable seating, soft instrumental music, changing facilities and drinking water available.
• Car Seat Installation:   A Mother’s Place employees will be AAA CPS (Child Passenger Safety) Certified, and available to install car seats properly.
• Childbirthing Classes:   We will offer classes for pregnant women (and a support person) in preparation for the birth of her child.  Each session will include six weekly classes.
• Yoga Pregnancy Classes: Yoga classes for pregnant women will be taught by a certified Yoga instructor (specialized in pregnancy fitness). 
• Mommy & Me Classes: New moms can bring their infants to classes that will offer support, guidance and parenting resources. Topics in the classes can include “Songs to sing to your little one”, “How to interact with your 2 week old infant,” “What can my baby see & hear?” and “What to expect from your 6 month old.” Each class will be guided by a trained Child Specialist Instructor.
• StrollerFit: A Mother’s Place will franchise this established program that is growing across the nation. This program provides a fitness class that allows both mom and the baby (4 weeks – 2 1/2 years of age) to exercise together, and have fun with other moms in the community. Currently there is no program that allows babies to exercise with their moms in Santa Cruz county. Franchising this program will allow A Mother’s Place to offer this program at other locations. As part of this plan, StrollerFit will be offered at A Mother’s Place, West Cliff Drive, Westlake Elementary School gymnasium (approval already obtained), and Seacliff Beach during the first year of operation.
• Winter Playgroups:
• Infant Playgroup (4 weeks old – 12 months old)
• Young Walkers Playgroup (12 months – 23 months old)
• Older Walkers Playgroup (24 months – 36 months old):  During the winter months (November to March), moms can sign up for a weekly playgroup at a low monthly cost.This will allow moms to bring their infants or young children to an environment that will be set up appropriately with mats, tumbling equipment, soft toys, mirrors, and other soft indoor equipment. Frequently during the winter months, cold and wet weather prevents mothers from going to outdoor parks, and this provides an alternative option. In addition, it provides an opportunity for mothers to meet other moms in the community.
• Children’s Classes:
• Jr. Jumpers: This will provide toddlers (12 months – 20 months of age) an opportunity to build physical coordination through an educational program.  This will be an instructed class that will provide fun with tunnels, slides, balance beams, obstacle courses, parachutes and bubbles to excite children of this age group.
• Jumper Time:  This provides older toddlers (21 months – 36 months of age) a developmentally-appropriate educational program for older, more stable toddlers.  In addition to building physical coordination through movement play, it will provide opportunities for children to explore through language with songs, finger plays and body movement games.
• Art Time:  This will provide preschool aged children (3 – 5 years of age) opportunities for creative exploration through art play, projects and group art activities.
• Birthday Parties:   Families can arrange birthday parties for their children at A Mother’s Place.  A variety of packages and themes will be available, including choices of event type, (Magician, Balloon Maker, Face Painter, Animal Show etc), party bag type, dessert (cake, cupcakes, cookies, ice cream, popsicles etc), setup (gymnasium set up, art project set up, bubbles machine set up etc) and extent of service (set up & clean up service).
• Room available to contract out: A Mother’s Place will provide the room on a contractual basis for programs and/or events that are supported by this company.

Each product must receive high ratings from reviewers (parenting magazines, internet reviews, Baby Products books) in order to be sold at A Mother’s Place.

• Juvenile Equipment:   Car seats, strollers, swings, joggers, exersaucers and high chairs will be among the selection of juvenile equipment available.
• Juvenile Feeding & Bathing Products: Bottles, diapers, sippy cups, bathing toys, stain removers and other feeding related products will be sold.
• Breastfeeding Products: Breast pumps, nursing pads, nursing creams, nursing bras and nursing pillows will be available.
• Young Infant Toys & Mobiles: A selection of developmentally appropriate infant toys and hanging mobiles will be available. In addition to meeting the highly rated criteria, toys will be selected by the owner, who has a Masters degree specialized in Infant/Child Development, for their ability to serve the growing intellectual needs of infants and young children.
• Books: A selection of board books will be provided. This will also help promote the importance of early reading for young infants and children.
• Layette clothing and blankets: A small selection of layette sets will be available for customers who would like to purchase layettes for baby shower gifts, or other gifts.
• Baby Gift Baskets: A variety of baskets will be available, filled with an assortment of baby products.
• Gift Items: A selection of photo albums, picture frames, handprint kits, and art prints will be available.

Market Analysis Summary how to do a market analysis for your business plan.">

Overall, there has been a steady increase in the population of families with young children, and a steadily rising median income in Santa Cruz county. In addition, with more residents employed in Santa Cruz County and not commuting to Silicon Valley, more families are opting to shop for their household needs in Santa Cruz County.

It was reported at the Juvenile Products Manufacturing Association (JPMA) trade show in Dallas (May 2004) that there is growing interest in juvenile products, with an increase in sales of 5% to 6% percent annually. The president of a large juvenile product organization stated, “the industry is very healthy and birth rates are strong,” and “parents also are spending more than ever.”  2

1 Comprehensive Economic Development Strategy , Prepared for the County of Santa Cruz County December 2002.  Applied Survey Research, Watsonville, December 2003.

2 “License! Where Concepts Come to Market,” April 2004  One Park Avenue, New York, New York 10016, made available at JPMA Trade Show, Dallas May 2004.

Strategy and Implementation Summary

In all areas of marketing, A Mother’s Place will implement consistent marketing and sales strategies from the beginning (prior to opening). The following sections outline our strategies for sales and marketing.

5.1 Competitive Edge

The advantages A Mother’s Place has over the competition are numerous:

• Toys ‘R Us and K-Mart are the only two places within a 10 mile radius from Santa Cruz city that carry juvenile products, and both are limited in their selection.  Neither of these stores offers the small and family-friendly atmosphere or high quality customer service of A Mother’s Place.
• A Mother’s Place has a multitude of parenting resources:  there are parenting classes, pregnancy support programs, children’s play programs and winter playgroups, as well as the wealth of child development knowledge that will be delivered by the principal and the employees of the company.
• A Mother’s Place offers a baby registering program with consulting at free of cost that is not available in Santa Cruz or Santa Clara County.
• A Mother’s Place will offer parents the convenience of purchasing multiple baby products (diapers, bottles, car seats, toys, books) in the same location where they can take parenting and/or fitness classes.
• A Mother’s Place will provide Installation of Car Seats by AAA CPS Certified(Child Passenger Safety) employees.  The only place that provides this program currently is the local California Highway Patrol office, which has limited hours.

5.2 Marketing Strategy

A Mother’s Place will market the company in the following ways:

Giving brochures with a promotional discount offer to:

• Birthing Classes at Sutter Medical Center
• Childbirthing Classes at Dominican Hospital
• Breastfeeding Support Group at Dominican Hospital
• Mom’s Support Group at Dominican Hospital

Posting flyers at:

• OB/Gyn Examination rooms
• Area childcare centers
• Local children’s clothing stores (i.e. Lollipops, Cottontales, Hopscotch)
• Local stores that carry children’s items (i.e. Aptos Shoes & Apparel, Toy Chest, Farmer Exchange)
• Local children’s programs (Harvey West swimming classes, Simpson Swim Center, Loudon Nelson’s Center, Santa Cruz Gymnastics)
• Libraries ~ children’s books section
• Local bookstores ~ children’s book section (i.e. Santa Cruz Bookshop, Book Cafe Capitola)
• Fitness Centers ~ childcare area

Getting articles promoting A Mother’s Place grand opening printed in:

• Santa Cruz Sentinel Newspaper
• Growing Up in Santa Cruz:  A newsletter serving families of Santa Cruz County
• San Jose Mercury News

All brochures, flyers and other marketing tools will promote our website, which will list the products and services this company can provide to the community.  It will also have all schedules of classes, and a registration form for class enrollment can be printed from the website, as well.

5.3 Employee Incentive Program

Our employees will play a vital part in the success of the company. A Mother’s Place will allow the employees to be part of the company in the following ways:

• Each employee will have a job description and orientation that will provide clear expectations for their performances, and the company’s mission and goals. This will benefit both the employees and the principal as everyone will be working towards the same goal.
• Included in the job description and training, each employee will be given responsibility for moving us toward one of our company objectives, to develop a feeling of ownership in the company’s success.  This will promote better work performances, as each employee will feel responsible for his/her actions, and will thus help to increase sales.
• Each month, if the company meets the sales forecast goal, each employee will be eligible for a bonus card that will provide cash towards any purchases at A Mother’s Place. The amount will be determined based on the performance of the employee.
• The company will introduce an “Star Employee” system based on reviews from customers, sales performance and employee performance. The employee of the month will earn a choice of an afternoon paid time off, or a bonus card (the bonuses/rewards can be modified to make it more suitable for the employee group).
• Each of the employees will have the satisfaction of providing quality products and services to families and children.  They will be recognized for their high quality services, customer relations and “going beyond their job descriptions.”

5.4 Sales Strategy

The sales strategy of A Mother’s Place will be threefold:

• “Shop for convenience” Products such as diapers, baby wipes, and bottlefeeding accessories will draw mothers to A Mother’s Place as they can shop “at one place” for all their needs, and may purchase other items at the retail store, and/or enroll in classes.
• Competitive Prices: Diapers and baby wipes will be offered at the lowest price among all competitors (including local supermarkets, drug stores, Costco, Target, and KMart). These items are not intended to make large profit, only as a marketing strategy to draw customers to the store.
• “Review & Save Program”:  This program will allow customers to “rate” the products they have purchased, and receive a promotional coupon towards their next shopping trip at A Mother’s Place. All of the reviews will be posted, to help provide customers with additional information on the products, and to promote sales.
• Classes:   The classes (Yoga Pregnancy, Parenting classes, StrollerFit, Playgroups) will also be an incentive to draw mothers into the store and enroll in additional classes.
• Environment:
• Nursing Room:  The nurturing and comforting environment of this room will contribute to our family-friendly atmosphere, and the resultant high return rate of our customers.
• Upscale and inviting presentation:  All products will be displayed in an organized and inviting fashion (i.e. there will be a “nursery room set up” with cribs fitted with coordinated beddings, pillows, art prints, mobiles and rugs), that will provide ideas for the customers, thus increasing sales.

5.5 Sales Forecast

Note: The financial assumptions can be found in section 8.0 of this plan, below.

5.6 Stepping Stones

The JPMA (Juvenile Products Manufacturing Association) Trade Show is one of the largest trade shows in the industry of baby products, offered annually in May. The principal will attend to gain information on the products (current and new lines for 2005), meet the company representatives, and establish the strong relationships that will be vital to the success of A Mother’s Place.

The next step will be completion of the business plan, through the grand opening of the company, and the beginning of profitability in January 2005.

Web Plan Summary

A Mother’s Place will provide an informational website that will serve primarily as a resource for mothers, families and the community. The website will be developed by Erik Gundersen at EDesigns. The website will provide the following resources:

Class Schedules & Registration Form:  The website will provide a current schedule, detailed class descriptions and a registration form for each of the classes provided:

• Yoga Prenatal Classes
• StrollerFitâ Classes
• Children’s Play Classes (Jr. Jumpers, Jumper Time, Art Time)
• Winter Play Groups (Infant, Young Walkers, Older Walkers)
• Childbirthing Classes
• “Mommy & Me” Classes

Birthday Party Packages: The website will provide detailed information on the packages available for the birthday parties.  It will include the different themes, party bags, events and other birthday party options that families can choose.

Car Seat Installation Program: We will provide information on our car seat installation program intended to promote safety for the children, and convenience for their families.

Baby Shower/Gift Registering: Families and friends will be able to access baby shower/gift registering directly from our website.

General Information: In addition to providing information about all of our services, the website will provide directions on how to get to A Mother’s Place, post the hours of the company, and also provide an email link to allow customers to ask any questions regarding our services, our products or our company.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Emili graduated from Harvard with a Master’s Degree in Education & Child Development. She has 15 years experience as an administrator in the child development field. Most recently, she was Chief of Operations for a local, family owned childcare management company in the Silicon Valley. In this role, she was responsible for the day to day operations, including finance management, employee relations and customer service, for each of the 15 childcare centers.

Prior to this position, Emili had the opportunity to gain valuable fiscal management experience as the Director of Finance/Account Manager for the Cisco Systems corporate sponsored childcare center. This center was a start-up project to serve over 500 children, and employed 125 teachers and administrators. At this largest childcare center of California, Emili was responsible for the fiscal management, fiscal reporting, human resources and payroll and overseeing the day to day operations of the services the center provided. In addition, she has been a child development instructor at San Jose State University. She is also the proud mother of a young infant, which has taught her a great deal about purchasing juvenile products and parenting services.

7.1 Personnel Plan

A Mother’s Place will be looking for candidates who currently have young children, and want part-time hours. This team of parents will make our customers, who are also parents, feel more comfortable, and serve as a resource for many of our products and services. 

The following personnel plan will be implemented completely when total sales exceeds $53,000 monthly at A Mother’s Place:

Start-Up Personnel:

• The principal, Emili Willet will be onsite full-time, responsible for day-to-day operations, all accounting/administrative tasks, and providing customer service.
• One full-time manager to oversee and fill in for all areas.  In addition, due to the principal’s deafness, it’s vital to have an employee onsite at all hours to provide high quality customer service communications on the phone.
• One part-time manager to oversee and fill in all areas during the weekend hours (each manager will have additional responsibilities that will be specific to each manager to establish ownership of their jobs). (16 hrs/wk)
• One part-time StrollerFitâ instructor to teach the StrollerFitâ fitness classes (6 hrs/wk).
• One part-time class instructor and party coordinator to teach classes, and plan and organize birthday parties.  Classes and birthday parties will start in October, and the hours for this position will be determined by the number of classes and parties that are served. (3 – 15 hrs/wk)

Long Term:

• One part-time retail specialist will be hired when total monthly sales have exceeded $45,000 in March, primarily to help on weekends to greet customers, provide expertise in products, inventory, keeping floor space organized and presentable, run cash register, answer phones and perform any other customer service related tasks.  (16 hrs/wk)
• One full-time retail specialist will be hired when total monthly sales have exceeded $53,000 in May, to greet customers, provide expertise in products, inventory, keeping floor space organized and presentable, run cash register, answer phones and perform any other customer service related tasks.

The growth of the company will be determined by how accurately and efficiently the company is able to implement the facets of this business plan.

Financial Plan investor-ready personnel plan .">

The following sections will outline the important information on the financial aspects of A Mother’s Place.

8.1 Break-even Analysis

The following table and chart show our Break-even Analysis.

8.2 Important Assumptions

Retail sales based on the following assumptions:

• Start-up growth
• Slow steady growth from September – December.
• The marketing strategies in this plan will be implemented prior to grand opening to build customer base for this period.
• Growth will slow down slightly post holiday season during the month of January.
• Steady growth will begins to pick up from February – August with the implementation of new class. sessions, and more marketing tools.
• Each time a new class begins each month, it’s assumed that the class participants will bring in additional sales revenue (see additional details below).
• StrollerFit® will begin in September.
• Children’s classes and birthday parties will begin in October.
• Holiday children’s parties will begin during the holiday season (Nov – Dec).
• These starting projections are based on the actual sales of opening month of a woman-owned shoe store in Capitola, and recent sales of a church/religious store in Santa Cruz. The starting projections are estimated lower than these two stores.

Classes sales  based on the following assumptions:

• StrollerFit®
• StrollerFit® will begin in September at two locations (Westlake Elementary, and at Lighthouse, WestCliff Drive) and continue through December.
• During the holidays, there is no projection of increased enrollment.
• It’s a common trend that enrollment for exercise programs increases in January, and one more class will be added at A Mother’s Place.
• As the weather warms up again in March, we project increased enrollment will begin and stay steady throughout the summer months.
• One class revenue is based on $7.50 fee per person, 8 participants per class, and 3 sessions per week which equals $780/month.  StrollerFitâ requires a 15% royalty fee of all sales which brings A Mother’s Place a total sales of $662/month.
• There is no direct cost of sales involved for StrollerFitâ
• Each children’s class is a 10-week session (Sept – mid Nov).
• One session will begin in September, restart every 10 weeks continuously.
• Another session will begin in October, restart every 10 weeks continuously.
• A total of 3 sessions will be offered starting in January.
• A total of 4 sessions will be offered starting in March.
• Each children’s class revenue is based on $9.00 per class, 11 participants, one class per week which is a total of $467/month. 
• In addition, a Winter Playgroup will be offered each month from November – March (during the cold weather months). We project that each month will bring in an additional $200/month. This is based on $10 per month per child, 10 children each Playgroup session which equals $100/month. Each month will have 2 groups.
• Cost of all children’s classes combined is projected at $50/per class per month to maintain play and activity equipment.
• Pregnancy Classes:
• One childbirthing/pregnancy class will begin a 6-week session in October and restart continuously every 6 weeks. A second session will begin in November, and restart continuously every 6 weeks.

Birthday Parties sales based on the following assumptions:

• Several packages will be offered for Birthday parties, ranging from $500 – $800 per party.
• No birthday parties will be offered during the month of September.
• Two birthday parties will be offered during the month of October, and three parties in November.
• Holiday parties will be offered during the month of December, and a total of 5 parties is projected.
• We project that a total of 6 parties per month will be held from January – May. During summer months, a maximum of 7 per month will be offered.

Payroll  is based on the following assumptions:

• In addition to the principal owner, a full-time manager (40hr/wk) and part-time manager (16hr/wk) will begin employment in September to cover a 7 day work week schedule.   Due to the owner’s deafness, it’s vital for a manager to be on-staff at all times to provide customer service on the telephone.
• A part-time retail employee will be hired in March, when total gross sales reach $45,000, to work during busiest hours.
• A full-time employee will not be hired until total gross sales exceed $50,000, projected to occur in May.
• All instructors for StrollerFitâ are part-time, and work one hour per class at $20/hr.
• All instructors and party coordinators are part-time, and work per class/party at $12.75/hr. The party coordinator will be employed additional hour per party for set-up/clean-up, and planning. The additional hours in October are for training. 

Expenses are based on the following assumptions:

• Loan repayment is estimated at $163,000 total borrowing, at 8.5% with 6 year term, equaling payments of $2897 per month (principal repayment listed in the Cash Flow, and interest expenses in the Profit and Loss, below).
• POS System, insurance, payroll processing fees, website, StrollerFit manual, shelving, tumbling equipment and all other equipment are based on actual bids from vendors.
• We do not expect to hire janitorial services during the first year of operation.  The retail employee will assume the janitorial responsibilities to minimize cost.
• Rent is estimated at $5,000 per month for a 3,550 square foot space at $1.40 NNN.
• Space is estimated to provide 1600 sq ft for retail, 1150 sq ft for class/gym room, 400 sq ft for inventory storage and 400 sq ft for office, nursing room and bathroom. 

8.3 Projected Profit and Loss

The following table and chart show the profit and loss projections for the first three years of operation.

8.4 Projected Cash Flow

The following table and chart show the projected cash flow for the first three years of operation. Please note that A Mother’s Place will receive cash for all purchases and services. All classes and birthday parties will be paid in advance upon registration.

8.5 Projected Balance Sheet

The following table indicates the Projected Balance for the first three years of operation.

8.6 Business Ratios

A Mother’s Place does not fit neatly into any one existing industry. We are a fitness and educational center; we offer children’s entertainment (birthday parties, playgroups), and social space for mothers; and we have a retail component, in our gift store. It is, therefore, difficult to compare our projected overall business ratios to any one industry standard, because our revenue stream and costs are mixed.

The following table lists our business ratios, and includes a comparison with standard ratios from the “Children’s Goods,” Industry (SIC Code 5137.05). These industry ratios obviously reflect only the retail side of our operations.

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