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Investment Analysis For Your Business Plan

Children need to play, this simple joy will stimulate imagination and exercise their body, which also provide an opportunity for parent-child interaction. Children all over the world need a funny indoor playground park. As an investor, besides witnessing the joy of children, also hope to make a profit. All investment follows risk, if you are new in this business, we strongly suggest you to check below information first.


1.Risk Analysis

Before investing, take a local market survey as per to our reference data, then decide weather to start investment based on your business plan and budget.

Client-Type


Business-Model


Profit-Source



Analysis Of Each Model

Play Center ScaleSqmKids CapacityPopulationCompetitors
Daycare & Restaurant30-100㎡30No EffectNo Effect
Small Indoor Play Park100-200㎡905,000+No Similar Park Within 2km Around
Middle Indoor Play Park200-500㎡18020,000+No Large Park Within 10km  Around
Large Indoor Play Park500-1000㎡30050,000+No Super Park Within 100km  Around
Super Indoor Play Park over 1000㎡50050,000+No Effect

Note: the sqm mentioned is for indoor playground equipment only, exclude rest area, office area, etc. For example, venue is 500㎡, area for play equipment is about 200-300㎡.


2.Business Model

There are different type of indoor playground park, some focus on indoor soft play equipment, some focus on indoor adventure, some focus on arcade game, some focus on birthday party, etc.

Business model greatly affect revenue, different business model require different venue,design and budget.

Tip: as per to our experience, a indoor playground park with variety kind of games, such as indoor soft play, trampoline, ninja course,climbing wall, arcade area,party room, vendor area, will attract more clients in different age group.


3.Venue Lease

The venue is crucial for indoor playground park, it not only affects the number of customers but also investment cost. During regular operations, rent is the largest expense. Since location is not easily changed, we suggest you to negotiating a long-term lease with landlord to obtain a favorable rent after location confirmed.

In order to maximum use space and build a amazing indoor playground park for you, we need below information after venue rented.

a) floor plan in auto CAD, usually it is issued by architect

b) the clear height, if any ventilation duct or pendant

c) is there any pillar or wall or other obstacle in the venue

d) location of entrance and exit

e) photo and video of venue

Tips: we suggest you to take a venue higher than 5m, close to shopping mall or residential area.

Ceiling Height Measurement



Original Venue

Floor Plan

Final Design

1400

Project Finished

4.Investment Cost

In general, investment cost consists of three parts: Rent, Product, Operation

● Cost For Rent

Rent in different country and location is different, please refer to local rental standard. Usually investor will take the venue for 3-5 years at least, so we suggest you to discuss a long-term lease with landlord to obtain a favorable price.

● Cost For Products

Usually indoor playground equipment is customized as per to particular project, so price depends on final design. Take a 500㎡(5382sqft) project in California,USA for example.

Products is about $22,500 to $75,000, take $45,000

Local tax (15%) is about $6750

Shipping cost is about $8260

Installation by us is about $9600 (3 person for 20 days)

Total: $45,000+$6750+$8260+ $9600=$69,610

Shipping Cost Reference

Destination40HQ FreightVoyageDestination40HQ FreightVoyage
Amercia$3,500.0035 daysAzerbaijan$2,600.0040 days
Canada$3,200.0030 daysJamaica$3,000.0037 days
Austrila$1,800.0016 daysPolynesia$6,500.0046 days
Mexico$2,800.0020 daysLithuania$1,500.0043 days
Peru$1,950.0035 daysSouth Africa$6,000.0033 days
Italy$2,500.0030 daysSingapore$300.007 days
Dubai$1,500.0022 daysPhilippines$250.005 days

Note: sea freight is changeable, contact us to get updated freight

● Cost For Management

It’s great if you are experienced in management, otherwise you need to hire a professional management team and timely take some promotional activities to attract more customers, such as annual cards, Christmas celebration, etc. Usually these cost are fixed and won’t account for a significant proportion.

We  Know  Product  Well,  We  Know  Market  Well

How  To  Start  Indoor  Playground  Business


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