Hello my fellow business owners. I am planning to open a small to medium size indoor soft play area concentrating on pretend play, one big structure with slides (for kids) , toddler area. My target audience are under 7 . As per the census, total population in my area is around 100K with around 7K under 5. This is the first time I am thinking about getting into a business and planning alone is making me nervous. I would love to get your advice on few things and if I have missed anything please feel free to add :
- I am concerned about generating enough profit from the play area alone, so I am considering offering daycare or some kind of classes like arts and dance classes during the day . Which one do you think makes more sense ?
- What are the expected one-time and regular costs(insurance, cleaning etc) for a 2,000 square foot indoor soft play area?
- Do you think having variety of vending machines , free wifi, TV will keep Adults occupied or should I go for proper cafe, pizza set up.
- Where can I buy good and reliable play structures, and how do I choose the best vendor?
- What kind of license or permits do I need ?
- What is the approximate investment for starting an indoor soft play area for a 2,000 square foot
Developers and investors typically prepare a feasibility study to determine if a business concept or idea is commercially viable.
First element of feasibility study is market viability. Viable refers to market size, potential value, target market, and sustainability.
For example, target market isn’t kids. It’s the parents. How many you capture will depend on the need for your services and parents ability and willingness to pay your prices.
Another element is technical viability. This refers to capacity, resources, process, and intellectual property.
Plan is 2,000 SF, say 40’ X 50’. Minus SF for small café space, bathrooms, storage, and office, maybe there is 1,000 SF left for play area.
Assume “maximum” capacity is 50 kids (crowded).
Besides suitable building is land to put it on plus an adequate number of off-street parking spaces. Depending on zoning requirements such as building setbacks, you may need at least ¼ acre of commercial property.
With this information, the amount of resources can be determined (start up expenses).
Other elements of feasibility study are business model, management, economic and financial, and exit strategy viability.
There is plenty of information online on how to work through these elements.
Feasibility study is proven method to determine if a proposed business concept or idea makes financial sense.