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How Much Does It Cost to Start an Indoor Playground?

Indoor Playground Business

If you are planning to start an indoor playground, you should estimate $450,000 and above. Have in mind that the amount could be much if you choose to start the business in a city where real estate is on the high side.

Depending on your plans as regards the number of people you want to attract to your indoor playground, the type of facility, and the list of fun activities it will offer will determine the cost of starting the business. Most people that are planning to start an indoor playground usually come up with innovative ideas that will make them stand out, and this will always attract additional costs.

Factors That Influence the Cost of Starting an Indoor Playground

  1. The Size of the Indoor Playground

The size of the indoor playground is what will determine the cost required to open an indoor playground. For example, if you plan to build an indoor playground that is as big as 300 sq. ft, then you should be ready to budget approximately $300,000 for the construction. The bigger the indoor playground, the higher the expenditure.

  1. The Choice of Location

The choice of location will affect the overall cost of opening the business. For instance, the cost of living and the real estate market is more expensive in cities like Los Angeles, New York, Miami, and Dallas when compared to smaller cities in the United States.

If you choose to start an indoor playground in any of such cities, you will spend more, and that will to a large, extent affect the cost of your business start-up.

  1. The Required Licenses and Permits

Without first obtaining the necessary licenses and permits, it is illegal to operate a business like an indoor playground in the United States. You’d require a certificate of accreditation, a construction permit, a zoning permit, and a sign permit, among other things that might be peculiar to certain towns and states.

As to be expected, the cost of these licenses and permits will affect how much it will cost to open an indoor playground in the States. Have in mind that you may need to pass multiple inspections before you can get your licenses and permits to operate.

  1. The Type of Facility

The cost of opening an indoor playground in the United States will be influenced by the type of facilities you wish to operate with. Regarding the space, you can choose between renting a facility, leasing a space, or creating your own indoor playground space from the scratch.

Note that there is a limit to how far you can go when renting or leasing a facility, and it will depend on what the landlord wants.

You might have to spend extra money to modify the facility to fit into the vision of what you have in mind, and the number of fun rooms, waiting rooms, playing spaces, and dining halls you want to have in your indoor playground facility.

If you wish to build your indoor playground facility from the ground up. It implies that you will purchase the land or the property, develop your design, and also build and furnish the indoor playground facilities to fit into your vision.

  1. The Number of People They Wants to Admit

The number of people they plan to accommodate or admit at a given moment will play a great role in determining the cost of starting an indoor playground in the United States. There are normal indoor playgrounds that can accommodate more than 100 fun-seekers at once, and there are indoor playgrounds that can only host less than 50 fun-seekers at once.

It will cost you more to furnish and equip the indoor playground facility, with the cost of renting or leasing the space to accommodate the number of residents and staff members in it. The more residents the indoor playground can accommodate, the more money you are expected to spend to set it up.

  1. The Cost of Hiring and Paying a Business Consultant

It will be great to hire a qualified business consultant if you want to start an indoor playground. A business consultant may assist by creating a practical business plan document, a marketing plan and strategy, a thorough SWOT analysis of the company, and advice or other things you will need to launch and run the business in the United States.

  1. The Expense Of Branding The Indoor Playground And Marketing It

Another component that will influence the cost of opening an indoor playground in the United States is the expense of marketing, branding, and promotion of the park. You must be prepared to spend money on marketing, branding, and advertising your new indoor playground if you want to see good results in terms of competing for and taking a fair portion of the market in your community.

It usually costs much to hire a branding, promotion, and marketing specialist that will aid you in competing with brands that are already dictating the market direction of the business in your location.

  1. How Much It Will Cost to Equip and Furnish the Indoor playground

The cost of equipping and furnishing the indoor playground facility usually affects how much it will cost to start the business.

To enhance pleasure, safety, and accessibility, modern indoor playgrounds usually have various climbers, slides, swings, spring riders, spinners, sensory panels, video games, and even indoor games such as; batting cages, laser tag, bowling, or bumper cars.

This equipment will cost you more money, and the size and type of equipment you choose will influence the amount you will spend on each of this equipment. Aside from the major playing equipment stated above, you should also consider installing the following; big-screen television, sound system, furniture, CCTV, and other play and relaxation equipment.

  1. The Cost of Purchasing an Insurance Policy Covers

No matter how many entertaining elements it has, your indoor playground business could be in danger if you don’t have the necessary insurance to protect it against potential risks. Your company will be protected from different dangers with the appropriate indoor playground insurance package. You will need to budget for the following insurance coverage for your business:

  • Commercial general liability insurance. This can protect you from any property damage or personal injury that may be sustained while conducting business.
  • Property and content insurance. This will protect your company’s assets, such as machinery and equipment, up to replacement cost.

In the event that you or a member of your staff is involved in a collision, small business auto insurance will shield your company vehicles and the organization from liability for injuries to third parties.

For an indoor playground, umbrella liability insurance is a reasonable choice of coverage. As soon as the standard liability limits are reached, this insurance kicks in. A back or spinal injury is a good example of a catastrophic occurrence that you should prepare for.

You should also consider integrating crime insurance and cyber liability insurance in your indoor playground business plan in case it falls victim to theft like credit card fraud. Cyber Liability Insurance will safeguard your online assets from cyber exposures.

In order to choose the best insurance plans for your indoor playground, you should budget money for insurance policy coverage. To achieve this, you may want to consult with an insurance broker.

  1. The Cost of Registering the Business

If you want to operate an indoor playground as a business, you are required to register it as the law demands. The process of registering a business in the United States is easy, but it will cost you money. So you must have the budget for registering the business. Depending on the state, forming a business in the United States might cost anywhere from $600 and $1400.

  1. Cost of Recruiting and Training Your Staff

If you want to get it right with a new business, then you must make staff training a priority, hence there should be a budget for it.

The essence of training and re-training employees, especially when you want to stand out among your competitors cannot be overemphasized. If you want your team to always deliver over and above, then you must have a  budget for recruiting and training your staff members.

  1. The Cost for the Purchase and Customizing of Uniforms, Shoes, and Caps for Your Employees

If you have ever visited any indoor playground, you will notice that staff members of the organization wearing uniforms, and this is done for two different reasons: For proper identification and for branding the business. So if you want people to place a premium on your brand, then you must be willing to spend money on re-branding.

In essence, the money you will spend on the purchase and customizing of the uniforms, shoes, caps, etc, will to a large extent influence the cost of starting an indoor playground.

  1. The Cost for the Grand Opening of the Indoor Playground

For a business like an indoor playground to be successful, you must organize an opening party. This is because the children are your major target.

You may not have to spend much to pull out a memorable opening party for kids in your target location. All you need to do is to make snacks and drinks available and also give children the opportunity to play and have fun in your indoor playground for free.