Amusement park business plan
Almost any entertainment business can be considered potentially successful if taken seriously and responsibly. Regardless of the target audience, leisure has always been a priority in people's lives. Setting up an amusement ride business is easier than it might seem at first glance. The main target audience is children and adolescents. But they always come accompanied by adults, 30% of whom visit one or another location. An amusement park business plan is based on an analysis of the market, competition and demand for services in a particular locality.
Description of the business project, relevance and goals
The amusement park is a limited area of 150 sq. m. (on average 700-1000), on which there are directly carousels, trampolines, trains and other locations for the pastime of children. A park, square, square and any other crowded place visited by townspeople are chosen as the location.
The project is relevant for medium and large cities with a population of at least 50,000 inhabitants. In smaller communities, revenue will not cover equipment, utilities, and wage costs, let alone a profit. Due to the low population density, there is simply no one to visit the amusement park on a regular basis. For such towns, business ideas based on the tour type are suitable, when a large number of settlements are visited in a short period of time and the maximum box office is collected everywhere.
The goal of the project is to organize an amusement park and gain profit during the current season. This is achieved by a good location, a marketing campaign to attract visitors, as well as affordable prices.
Advantages and Disadvantages
An amusement park as a business has positive and negative sides.
- Relevance - attractions have always been a popular business. Every year their popularity does not fade away, and new locations from manufacturers are released on a regular basis.
- Perspective - if the current business is successful, it can always be expanded by increasing the area of the park with the addition of new types of entertainment or opening a new outlet.
- Target audience - from early preschool age to adults 35-40 years old and even above. There are many attractions that are designed specifically for the adult category of people.
- Payback - given the high demand and wide target audience, the business brings a regular income, due to which the project pays off in the first season.
- No additional investments - the amusement park provides for investments only at the initial stage of business organization. Subsequently, expenses represent the minimum values in the form of wages to employees and the allocation of funds for equipment maintenance.
- The need for large investments - the cost of equipment depends on its type and volume. For example, a trampoline, aka "grasshopper", will cost an entrepreneur 150,000 rubles. The same applies to other small locations - mini-carousels, trains. The cost of larger entertainment starts from 750,000 rubles and more per piece of equipment. As a result, when installing at least 10 locations, it is necessary to invest at least 5 million rubles.
- Search for a place - small and medium-sized cities cannot boast of a large list of places for citizens to rest. Typically, this is a city garden in the city center and several parks in other areas. In most cases, points with attractions already operate in these places, which complicates the task for a novice entrepreneur.
- Competition - the situation is typical for large cities in which many branches of this business operate.
- Seasonality - the amusement park is located in the open air, which excludes its visit in rainy and even more cold weather. All points are open from spring to autumn, closing for the winter, and this negatively affects profits.
Influence of seasonality factor on profit
As already stated, an amusement park business is a seasonal summer activity, with a bit of spring and fall. Each year, the parks hold a season grand opening on May 1st. There is no specific closing date, so everyone works according to the weather and their own discretion.
Children's leisure is a voluminous field of activity for enterprising people who know how to interest a child at any age. There are few or no amusement parks in some localities. Parents are always in search of places where they can take their child for a pleasant pastime. If you are interested in how to open an amusement park from scratch in your region, then our step-by-step instructions will tell you where to start and how to develop a small business in the leisure segment.
The business idea for creating a playground with attractions has different options. The opening of the park is possible in the open air or indoors. The choice depends on the initial capital and the entrepreneur's desire to have a seasonal or constant income. First, you need to choose the concept of a children's institution and write a business plan in order to understand what funds are required for renting or buying premises, land, documents, equipping the park with attractions and other attributes of children's entertainment.
Is it profitable to open an entertainment complex? Or it is worth starting with a small room with only one-sided attractions, for example, a go-kart playground, a trampoline center for children and adults, a paintball club. An amusement park is not only a place with merry-go-rounds, locomotives, a Ferris wheel, but also grounds with sports equipment, slides, climbing frames, rooms with intellectual quests.
You can choose your direction and make money on it only if you can offer visitors new interesting children's attractions. Visitors should come to the park and not be disappointed. Positive emotions will become a guarantee of desire to come back here again.
The park should be located in a walkable place so that visitors can easily get to it. It is imperative to comply with the safety standards of attractions so that children do not get health problems. Materials of equipment, utensils, comfort attributes should not be toxic or untreated. Each item in the children's park must be checked independently to avoid problems.
There are no obstacles to launching an amusement park if you have enough money in your pocket and a suitable room or open area is chosen for it. Before starting preparations for the launch of the park, activities must be registered with the Federal Tax Service and registered with the funds. To do this, we select the regulatory form (IP, LLC) and collect the relevant documents for submission to the tax office.
- If it is planned to use a small area for attractions that is not designed for a large flow of people, then you can choose the form of IP. Investments may be within the reach of one owner.
- A large amusement park requires a solid investment. You can find like-minded people who will become the founders of the organization. In this case, we register the LLC.
The amusement park is a service sector. We select the type of activity according to OKVED and indicate in the application for registration: "Activities in the field of recreation and entertainment" (93.). This is a general section that includes theme parks, culture and recreation (93.1), indoor and outdoor entertainment and entertainment activities (93.9).
At any free time, people want to have fun and spectacular family vacations with children! As for megacities, there are no problems with the number of shows.
But in small towns with a variety of entertainment, things are not so good. Life in small towns is quiet and peaceful without much entertainment. That is why it is these settlements that are ideal and suitable for the attraction business. Make a business plan for the amusement park and construction can begin.
Every type of business has its pros and cons, and this one is no exception. According to statistics, more than 7 hundred amusement parks are located on the territory of the Russian Federation, more precisely, this figure cannot be called, since this type of activity does not imply licensing and industry technical regulations. Therefore, it remains not entirely clear what exactly is meant by the name "Amusement Park"? Let's take this question a little deeper.
Amusement Park Types Family Business
In order to figure out which one and where is the most profitable to build an amusement park, you will have to classify them into several types. How exactly?
In the summer (most often in the central part of the city) in parks and squares, private entrepreneurs put up a children's attraction, such as a trampoline or an air slide.
He usually stands alone, most often a family business. A slide or a trampoline costs no more than five thousand dollars. But keep in mind that this kind of earning work only works in late spring, summer and early fall before the rainy season.
Most of the income such attractions bring in the south in resort cities, where water attractions are also very popular. In the summer, children spend family holidays with their parents and love to visit such amusement parks.
Profitable Business Pros and Cons
The next type is already more expensive, but it also allows you to earn several times more. This is a mobile amusement park. One or two carousels are no longer enough to create such a park.
Hi, my name is Maya, just sharing my experience
Earnings on entertainment attractions are suitable for entrepreneurs with different investment volumes. For small-scale investments, two formats can be distinguished, each of which has its pros and cons.
Business at an amusement park can "go uphill" even in times of crisis. The reason for this is the never-ending desire of people to rest, but in difficult financial conditions it will have to be done within the city. At the same time, the entertainment sector is still in the development stage, especially in small towns, with free niches with different volumes of required capital investments.
For medium and small businesses, there are two different formats of entertainment zones with attractions, which are determined, first of all, by the scale:
- stationary amusement park - includes large-sized street attractions, can also combine indoor amusement areas;
- single-person amusement rides and small amusement theme zones - are concentrated either on one attraction, which is an "anchor", or one target group of visitors, for example, a children's playroom.
Stationary Classic Park
Relatively "large" format in this segment. This option is suitable for a small town that lacks entertainment.
The format is also being implemented as an indoor entertainment complex, but this option is more suitable for large business due to the need for significant investments in construction.
For medium-sized businesses, the most successful implementation of such a project can be done on the basis of an existing city park. This practically guarantees a suitable location, familiar to the rest of the townspeople.
The main difference between the format: the scale of the park will allow to implement the classic concept with the allocation of zones for children, families and extreme recreation - the selection of attractions is carried out taking into account the preferences of each target group. The zoning concept is considered to be the most advantageous since it will attract the maximum number of visitors.
According to the magazine Attractions & Entertainments, entertainment centers for families, children and adults are high-yielding businesses with operating margins of 25 - 35%.
In cities with different population sizes, there are mostly amusement parks of the old type, which are open during the warm season. The visitors are families with children, teenagers, young people. From year to year, the entertainment is repeated, which reduces the interest of regular guests. People want something new. Therefore, enterprising people can find a new direction in the leisure industry by developing a business plan for an amusement park. But before that, it is worth examining the situation in the selected locality so that your offer does not duplicate competitors. We offer for study our example, which will describe a business plan for an amusement park with calculations. Let's consider what investments are required for a particular type of entertainment and what can be expected in a year after the launch of the attractions.
An amusement park is an entertainment service for people of all ages. Our company offers trampoline activities for children from 2 to 18 years old.
Location of attractions: site in the central part of the city. District of the House of Culture and the park zone.
No room required because the trampolines will be located outside. It will be a trampoline town surrounded by a fence. The territory is drawn up under a lease agreement with the city administration.
Territory area: 600 sq. m.
All year round with adjustment of the types of attractions for the season.
Mon-Fri: from 12:00 to 19:00 in the winter season; from 12:00 to 21:00 in the summer season.
Sat-Sun: 10:00 to 19:00 in the winter season, from 10:00 to 21:00 in the summer season.
List of services
Other types of entertainment are also possible.