This article will show you how to open a successful indoor playground step by step, include the methods, cost and profit.
How to open an indoor playground step by step？
Market Search
Once you make up your mind, you can begin market search.
1. Understand the overall environment of market.
2. Identity your target customers, collect data of the member of children, family spending level, the type of playground children prefer to.
3. Research your competitor’s style, business methods, advantages and disadvantages and price tag. Learn from their strength and try to create differentiation.
Build Plans
Once you’ve done your research, you can use the information to build your business plan. Also include the following:
1. Choose the right place by considering rent, location, supporting facilities and traffic.
2. Develop the style of your playground based on customer needs and competitors’ situation.
3. Make a budget to choose location, decoration, facilities.
4. Make a reasonable pricing system and add some promotional activities.
5. Refer to successful cases to set up suitable operating methods, staffing and safety regulations.
Choose Location
A good location will affect the revenue of your playground, and it requires considering multiple factors.
1 .It’s better to choose a location with high foot traffic and a large number of kids. Such as a place near schools, residential communities and shopping malls. The right target group will bring stable revenue.
2. When choosing a location, the area and height must meet the requirement. Otherwise, your playground may not able to operate or the cost of later renovations will be high.
3. Convenient traffic and supporting facilities will attract more customers. Parents prefer convenient locations, after all.
4. It’s recommended that choose the location based on your budget, make sure the rent is under control.
Prepare Licenses and Permits
Get the necessary licenses and permits is good for the smooth operation of your indoor playground. Here are some common licenses and permits you may need:
1. Business License: Required in all countries, make sure the license is consistent with your true operations.
2. Building and Fire Permits: Building Permit is required for renovations, and Fire Safety Permit ensures safety in case of emergencies.
3. Equipment Safety Certification: The equipment used in playground must have the relevant safety certifications. It’s crucial to users’ safety and the long-term operation of your playground.
4. Public Liability Insurance: This is required. Otherwise, your playground may not be allowed to open.
5. Food Business License: You should take this license if0 your playground will sold food and drinks.
Choose and Buy Equipment
After prepare licenses and permits, you need to choose and buy the equipment. Pay attention to the followings:
1. Types of Equipment: common indoor playground equipment includes slides, ball pits, jungle gyms and soft play. You can choose the equipment based on your budget, audience, and the style of your playground.
2. Safety: The equipment must meet local or international regulations and be able to provide certification.
3. Space Suitability: The equipment must suitable the space’s area and height, make sure it can be used.
4 .Materials and Quality: When choosing equipment, choose reliable manufacturers, make sure the materials are non-toxic and harmless, and no safety hazards.
5. Cost Control: When choosing equipment, don't just focus on the price. Consider transportation, installation and water fees，etc.
Opening Preparations
After choose and buy the equipment, you can begin preparing for the opening.
1. Check all the licenses and permits, make sure your insurance is legal and valid.
2. The playground must have complete safety rules, has first-aid kit, post clear safety signs on the wall.
3. Decide the ticket prices, age or height limits, entry procedures, etc.
4. Staff the playground with trained person.
5. Attract customers through online/offline marketing, offer special package and ready for opening.
How much does it cost to open an indoor playground?
As mentioned earlier, indoor playground is a business opportunity with long-term profit potential, but also requires a certain amount of cost. The cost usually ranges from $60,000 to $750,000 or more, depending on rent, design, and equipment.
For a small indoor playground, the costs include the following:
1. Equipment costs, transportation and installation: $20,000–$35,000
2. Rent: US$5,000-15,000
3. Style and flow design: $3,000–$8,000
4. Renovation, refurbishment, or expansion: $15,000–$30,000
5. Licenses and permits: $5,000–$10,000
6. Basic operational equipment: $2,000–$4,000
7. Staff, utilities, and operating: $8,000–$15,000
The cost of a small amusement park may between US$58,000 and US$120,000.
The profit of an indoor playground
The revenue streams of indoor playground is not single but divided into several parts.
Tickets: This is the main source of income for the playground, accounting for about 50-70%.
Membership Programs: Some operators offer monthly, quarterly, or annual passes, accounting for about 10-25%.
Parties: This is probably the most profitable part, the profit from one party is about $300-$800, accounting for about 10-30%.
Food and Drinks: Accounting for about 5-15%, this part has a very high profit.
Retail: Such as grip socks, branded merchandise, etc., accounting for about 3-10%;
Solutions for a lack of funding
Considering some people may not have enough money to open an indoor playground, we have also provided some solutions for you:
1. Start with a small indoor playground, keeping the area under 200 square meters.
2. For equipment, which is usually accounts for a large part of your budget, you can buying secondhand equipment, leasing, or using installment payments.
3. If the rent is over-control, you can communicate with the landlord to start with a lowrent + profitsharing model.
4. When looking for the location, you can cooperate with cafes and educational institutions to share space. This not only ensures you have a target audience but also control costs.
Opening an indoor playground isn’t very difficult, and it doesn’t need as much money as many people think. By following the suggestions of this article, your successful indoor playground business will bring generous profits for you.
If you are interested, we can help you open an indoor playground more smoothly by providing reliable equipment or create custom 2D layouts and 3D renderings based on your space size, theme, target age group, and budget.
