Return on Investment
Kids need to play. A market opportunity exists all over the world to service children with a supervised indoor exercise and recreation facility. Market research shows that children need to 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. While parents explore your “grown-up” environment, their children can explore the fun play events to stimulate their imagination and challenge their bodies. So happy children make happy parents.
How to make your indoor playground a profitable business?
One of the most common questions from those prospective indoor playground owners is: How can I make money? Sure, making money always comes the first in our mind. Also, the question like this includes: What is the revenue stream? How can they compare to others?
Actually, there is no standardized answer, because it depends on your staple business goal. For example, if the parties make up of your main business, then, the majority of your indoor playground business revenue will come from those birthday parties. The high-margin and high-end party packages often add more to the revenue. In such a business model, you can build a very profitable revenue stream for your indoor playground business. By creating the best party packages, you will have a months-long waiting and booked-out list only if you put in your energy and time.
To make your indoor playground more profitable, you should avoid the “dead time” at your facility. That means it is bad for you to spend most of your time on paying insurance, utilities, and rent. However, you just have a single way to operate your indoor playground or play café. As long as you have chosen one main focus for your business, you just have to insist on your way with some guidelines. Then, your business will thrive all the way. While running your own park, you should try to make all other revenue streams happen like operating open-play business models, providing birthday parties, having toy shops, selling food and drink,providing the drop-in care service,incorporating the classes and education...
Please draw attention to the cost of the lease and the hidden expenses that can arise if you aren’t careful in negotiating your lease. High expenses are the NUMBER ONE reason retail businesses fail, so don’t skimp on the details. The cost of rent is the most concerned thing when running the business. Since rent and payroll will likely be your biggest business expenses and the largest checks you write each month, you must first consider the price of street-visibility and how that factors into the cost of your rent.
THE OWNER’S UNIQUE EXPERIENCE
If you have experience either teaching or working with children, this is a wonderful background to have in this business. If you do not have a business background, you can hire these services out.
Having all of this information ahead of time will allow you to more accurately predict your costs and set your revenue goals around these expenses so you don’t find yourself under a mountain of piling bills.
THE INTERIOR DESIGN CHOICES
The interior design of your play area will play a crucial role in your businesses’ success. Hiring a skilled local architect that specializes in entertainment or retail space will boost your sales and streamline your customer’s experience.
At TopKidsPlay, we understand how to design play spaces that attract customers to your destination and keep them there long and busy. DRIVE YOUR BUSINESS. INVEST IN PLAY.