Do you want to start a skating rink and want to know the cost? If YES, here is a cost breakdown to build an ice skating rink and the profit margin / ROI.
Businesses that operate in the Ice – Skating Rinks industry basically manage ice rinks for recreational and professional use. These ice rinks offer ice skate rentals and ice – skating classes, and also provide other amenities including indoor sports and concessions.
If you have been following the Ice Rinks industry, you would have realized that the industry leveled out over the past five years after melting for a period during the recession. Demand for ice activities, which tend to be relatively more expensive than other forms of sports and exercise, took longer to rebound after the recession, as unemployment remained high and wages stagnated.
Starting an ice skating rink business in the united states of America can be stressful, it requires enough cash to acquire land large enough to accommodate the kind of facility that can comfortably attract families and also cash required to equip the facility to meet the standard expected by potential users.
The Estimated Cost Breakdown to Open an Ice Skating Rink Arena
The real deal when it comes to starting an ice skating rink is securing a facility that is large enough to contain not just the ice skating tracks and other fun – filled outdoor games for children and adults alike, but also a restaurant, a place where parents/guardians can hangout.
Ideally, ice skating rinks save money by buying or renting a location in a commercial real estate area. According to the Ice Skating Institute, the cost for a single surface ice skating arena is between $2 and $4 million, while a twin surface ice skating area costs between $5 and $7 million. These are the key areas where you are expected to spend your startup capital;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of the ice skating rink arena in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The total cost for hiring a business consultant including writing a business plan – $5,500.
- The total cost for the purchase of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $10,500.
- The cost for renting or leasing a space or property that will be converted into the ice skating rink and that can accommodate the number of guests that will come in per – time (Re – construction of the facility to feature a single surface ice skating arena, including a refrigeration system to freeze the rink surface (the refrigeration system pumps 9,000 gallons of freezing brinewater through the pipes and on top of the ice-bearing concrete slab), hangout areas and food courts et al) will cost – $5 million
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500) – $3,000
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $80,000
- The cost for store equipment (cash register, security, ventilation, signage) – $1,750
- The cost of purchase and installation of CCTVs: $2,000
- Equipping the ice skating rink (different sizes of skaters for rent, safety gadgets, sound system, DVD players, Flat Screen TVs, computers, video games, printers, projector, furniture, telephones, filing cabinets, and electronics) will cost – $40,000
- The cost of launching a website: $600
- The cost for our opening party: $3,000
- Miscellaneous: $2,000
From the rough estimate as listed above, you would need a minimum of five million, three hundred and forty – five thousand eight hundred and eighty USD ($5, 345,880) to establish a medium – scale but standard single surface ice skating arena in any city in the United States of America.
Please note that this amount includes the salaries of all the staff for the first three months of operation and while a twin surface ice skating area will cost you an additional $1 million to $3million
Please note that this is a rough estimate and we usually advise our readers who are interested in opening a ice skating rink business to have a clear picture of what they want to achieve, go to the market or directly contact contractors, wholesalers and suppliers of the types of ice skating rink supplies they want to have in their arena in order to get the real time prices of these items.
The truth is that, if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.
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