Do you want to start an escape room and need to write a plan? If YES, here is a sample escape room business plan template & feasibility report. If you are passionate about solving boredom among young adults and even older people, you should think towards starting your own escape room business. Your aim of starting this business should be geared towards taking the stress off people, getting them to socialize and make them happy.
Since the escape rooms, tons of unique and interesting games have been designed and more would still be designed. In case you don’t know, most escape rooms cum gaming centers start making profits within few months of establishment.
Opening an escape room is not an easy task, so you need to be creative if you intend to make money from the business. One of the ways you can make money from your escape room is to ensure that the location is a complete entertainment spot and a melting pot for people who want to meet new people and have fun. Here is a sample escape room business plan that can give you the needed guide to write yours.
A Sample Escape Room Business Plan Template
Table of Content
- 1. Industry Overview
- 2. Executive Summary
- 3. Our Products and Services
- 4. Our Mission and Vision Statement
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 8. Our Target Market
- 9. SALES AND MARKETING STRATEGY
- 10. Sales Forecast
- 11. Publicity and Advertising Strategy
- 12. Our Pricing Strategy
- 13. Startup Expenditure (Budget)
- 14. Sustainability and Expansion Strategy
1. Industry Overview
An Escape Room which can also be called an Exit Game, Escape Game or Room Escape Game is a game that involves engaging a team of player(s) inside a closed space or room which they have to resolve by finding clues, solving puzzles and taking part in some activities within a specific time, usually 60 minutes.
Notwithstanding the name, it is not cast in stone for the theme to be escape-based. Participants may be called upon to solve a crime/murder or save a fictional character or find something. An escape room is a mental and physical adventure – based game and a good number of Escape Rooms do not actually ‘lock’ the participants inside a space as participants are free to leave the game, any time they want.
Escape rooms fall under the Social Network Game Development industry in the united states and this industry is made up of businesses that carry out puzzle games, role-playing games, gambling games and other related activities for adults.
According to a report published by IBISWorld, since its inception, the Social Network Game Development industry has grown rapidly. Revenue is anticipated to grow at an annualized rate of 16.7 percent to $3.9 billion over the five years to 2018.
The surging adoption of the internet and the popularity of social networks, including social networking websites and mobile apps, have driven revenue growth during the period. Industry revenue is anticipated to rise by 14.3 percent in 2018 alone.
The industry’s growth has been stimulated by the emergence of new markets that have embraced social gaming. Social networks and their accompanying technology have placed gaming within reach of the average computer or mobile phone user. As a result, consumers who have not previously played video games are beginning to participate.
The report further reveals that over the past five years, the Social Network Game Development industry has grown by 16.0 percent to reach revenue of $4 billion in 2019. In the same timeframe, the number of businesses has grown by 19.9 percent and the number of employees has grown by 16.2 percent.
The Social Network Game Development Industry is indeed a very large industry and pretty much thriving in some countries of the world especially in developed countries.
Statistics has it that in the United States of America alone, there are about 6,532 licensed and registered Social Network Game Development centers (Escape Rooms) responsible for employing about 14,498 employees and the industry rakes in a whooping sum of $4 billion annually with an annual growth rate projected at 16.0 percent between 2013 and 2019.
It is important to state that the companies holding the largest market share in the Social Network Game Development industry include Zynga Inc. and King Digital Entertainment PLC.
Escape room and other social networking game development centers have come to stay and it is indeed solving problems for people who have difficulties with socializing and working as a team.
2. Executive Summary
Quadratic® Escape Room, LLC is a licensed social networking game development center that will be located at 2122 W Adams street, Santa Ana, CA 93603 and that is one of the entertainment hubs of Santa Ana – California. We have been able to secure a standard facility in a central location in Santa Ana. We are well equipped to service the whole of the community as well as visitors and tourists.
Quadratic® Escape Room, LLC is going to become the number one destination for socialites, gamers and gamblers in the whole of Santa Ana – California. We are positioned to operate a licensed escape room with a wide range of social networking games (mental and physical adventure – based game). Our escape room facility has enough parking space to accommodate the number of people we will accommodate per time.
We conducted a thorough market research and feasibility studies and we were able to come to the conclusion that Santa Ana – California is the right place to start our business. Our client’s best interest would always come first, and everything we do is guided by our values and professional ethics.
Quadratic® Escape Room, LLC will be open 24 hours in a day during weekends (Fridays to Sundays) and from 6:00 am to 12 midnight from Mondays to Thursdays in order for us to accommodate people with different time preferences. This is why we have made provisions for effective floodlight system and also recruit enough staff and to run shift amongst our workforce.
Quadratic® Escape Room, LLC will at all times demonstrate her commitment to sustainability, both individually and as a business, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Quadratic® Escape Room, LLC is a family owned social networking game development center that is owned by Martins De Silva and his immediate family members. The business will be managed by Martins De Silva and his son Jerry Hamilton. Martins De Silva has over 15 years’ experience in the social networking game development industry working for some of the leading escape room facilities in Santa Ana – California.
3. Our Products and Services
Quadratic® Escape Room, LLC is in the social networking game development centers industry to provide standard escape rooms for residents of Santa Ana – California which is why we have been able to put up a facility that can help us achieve the goal.
We are optimistic that everyone who makes use of our escape room will definitely derive huge value for their money. These are the type of games that will be made available to our clients;
- Puzzle games
- Role-playing games
- Gambling games
- Creating/finding something like a cure, a potion and so on.
- Conducting military operations, freeing a person or animal and abstract missions
- Other genres that fall within the Reality Gaming Industry, such as Questing, Scavenger Hunts, Treasure Hunts, Augmented Reality Gaming and Virtual Reality Gaming.
- Sale of food and beverages
4. Our Mission and Vision Statement
Our Vision of starting Quadratic® Escape Room, LLC is to build a world – class escape room that can favorably compete with leading brands in the social networking game development industry.
Our mission for establishing Quadratic® Escape Room, LLC is to contribute our quota in promoting social networking game activities in Santa Ana – California and also to make profits from the Industry; we want to become the leading escape room – brand in the whole of the United States of America.
Our Business Structure
Quadratic® Escape Room, LLC is poised to become the leading escape room in the whole of Santa Ana – California and we are fully aware that it will take the right facility, social networking game activities, management and organizational structure to achieve our goal.
We will ensure that we recruit only the best hands that can help us achieve all that we are set to achieve. The kind of the escape room business we intend building and the business goals we want to achieve is what informed the amount we are ready to pay for the best hands available in and around Santa Ana – California.
Our business will not be built only for the purpose of giving our customers value for their money, but also, we will ensure that we make our escape room cum work environment highly conducive for all our employees. We will provide them with facilities that will help them stay motivated and deliver on their various tasks and goals.
In view of that, we have made provisions for the following positions to be occupied by highly qualified and experienced staff;
- Chief Executive Office – CEO
- Accountant / Cashier
- Marketing and Sales Officer
- Social Networking Games Instructor / Assistant (5)
- Customer Care Executive / Front Desk Officer
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of games and other equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment and managing interviewing process
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily activities in the escape room.
Social Networking Game Instructors/Assistant (5)
- Responsible for operating licensed escape room
- Responsible for teaching newbies how to play various social networking games available in our escape room
- Responsible for selling food, alcoholic and nonalcoholic beverages
- Ensures that the game machines are well arranged for another playing session after every session
- Responsible for recommending the replacement of worn out or damaged game boards, pads, consoles and other video game accessories
Marketing and Sales Officer (2)
- Identifies, prioritizes, and reaches out to new clients, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding increase sales
- Documents all customer contact and information
- Represents Quadratic® Escape Room, LLC in strategic meetings
- Helps to increase sales and growth for Quadratic® Escape Room, LLC.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for the organization
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for Quadratic® Escape Room, LLC
- Serves as internal auditor for Quadratic® Escape Room, LLC.
Client Service Executive
- Welcomes members and potential members/clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the organization’s products and services
- Manages administrative duties assigned by the management in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
- Responsible for cleaning in and around the escape room
- Clears ashtrays as and when required.
- Washes glassware and utensils after each use.
- Maintains a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
- Ensures that toiletries and supplies don’t run out of stock
- Handles any other duty as assigned by the manager.
6. SWOT Analysis
Quadratic® Escape Room, LLC is in business to provide social networking game development facility for gamers in Santa Ana – California and at the same time to make profits. We are aware that there are competitions in the social networking game development industry which is why we took out time to conduct an effective SWOT Analysis before investing our hard – earned money into the business.
We know that if we get things right before starting our escape room, we will not have to struggle before attract loyal clients and building our customer base to a level where we can easily break-even in record time. We hired the services of a HR and Business consultant with bias in business structuring to help us conduct SWOT analysis for our organization and he did a pretty good job for us.
Here is a of the result we got from the SWOT analysis that was conducted on behalf of Quadratic® Escape Room, LLC;
One of the obvious strengths that will definitely stand as a plus for Quadratic® Escape Room, LLC is the fact that our facility is located in a densely populated residential area in Santa Ana – California; our location is in fact one of our major strengths couple with the support from stakeholders in the industry.
We equally have a team of professionals who will work with our clients, and lastly our wide range of social networking games are amongst the best that anybody living in Santa Ana – California can get; they are all mental and physical adventure – based games.
We looked into our Business model and we were able to identify two major weaknesses. One is the fact that we are a new business and the second is the fact that we may not have the financial resources required to match up with existing escape rooms, video games centers, casinos and gaming centers in California when it comes to employing experts in the industry and generating the needed hype that can drive traffic towards our business.
We are centrally located in one of the busiest and densely populated areas in Santa Ana – California and we are open to all the available opportunities the city has to offer. We will be open 24 hours in a day during weekends (Fridays to Sundays) and from 6:00 am to 12 midnight from Mondays to Thursdays giving us the advantage to leverage on any available opportunity.
Recent statistics shows that the number of mobile internet connections is expected to rise over 2019, but it is quickly approaching saturation, which indicates a potential threat to the strong revenue growth of our business. Lastly, the emergence of new competitors within the same location where our escape room is located will also pose a threat to us.
7. MARKET ANALYSIS
- Market Trends
If you are conversant with the social networking game development centers industry trends, you will realize that the increase in virtual purchases has propelled industry profit margins and that is a good outlook for the industry.
By tradition, individuals with abundant leisure time represent the primary demographic for escape rooms. However, as more individuals choose outdoor recreational activities and sports, they are less likely to spend time playing social networking games.
Another trend shows that users must have internet access to join social networks and play games. Increased broadband coverage translates to more potential industry customers and higher revenue. The number of broadband connections is also a good proxy for the number of households that join social networking websites.
A higher number of people connected to the internet drives increase in social network adoption. The number of broadband connections is expected to increase in 2018, representing a potential opportunity for the industry.
Lastly, it is a common trend that as escape rooms grow, it becomes necessary for them to develop new service offerings or install new facilities that will help them attract more people. Little wonder some escape rooms now have fresh juice and smoothie bar, retail food, alcoholic and non-alcoholic drinks et al within their facility to encourage people to relax and socialize. In order words, it is very important for escape rooms to continue to improvise if they want to grow their business.
8. Our Target Market
Women over the age of 45 represent the industry’s fastest-growing consumer segment. Aside from this demography of people, the target market for escape rooms cut across people of different walks of life especially adults that are single.
The fact that people visit escape rooms for various reasons makes marketing the business interesting. These are the category of people that we intend marketing our business to;
- Adults (Bachelors and Spinsters)
- High school students
- Applicants / School Leavers
- Sports Men and Women
- College Students
The social networking game development centers industry is indeed a prolific and highly competitive industry. Clients will only patronize your escape room facility if they are comfortable with the games you have or if you can provide the enabling environment for them to socialize.
Quadratic® Escape Room, LLC is centrally located in a densely populated – residential area in Santa Ana – California; this is obviously going to give us an edge amongst our competitors. We equally have a team of highly qualified professionals who will work with all our clients and make it easier and comfortable when they patronize our escape room.
So also, our social networking games are amongst the best that anybody living in Santa Ana – California can get; they are all mental and physical adventure – based games. We will be open 24 hours in a day during weekends (Fridays to Sundays) and from 6:00 am to 12 midnight from Mondays to Thursdays in order for us to be able to accommodate people with different time preference.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.
9. SALES AND MARKETING STRATEGY
- Marketing Strategy and Sales Strategy
Our marketing strategies will be directed towards achieving specific objectives that support the strategic goals of the organization. The truth is that all that we do will be geared towards creating new market channels, increasing sales and our market share. We will leverage on improving on our services to ensure that we win new clients and retain old clients as well.
As part of our sales and marketing strategies, we will pay attention to the promotion of our escape room so as to attract people to make use of our facility. Our unique selling proposition is that we are well positioned, people can easily access our facility, and our payment platforms are highly reliable.
Part of the marketing and sales strategies that we will adopt are;
- Open our escape room with a big party in other to attract residents who are our first target
- Advertise our escape room on national dailies, local TV and radio stations
- Promote our escape room online via our official website and all available social media platforms
- Introduce our escape room by sending introductory letters alongside our brochure to sports clubs, schools, households and key stake holders in Santa Ana – California
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
- Delivering consistent customer experiences to all our customers; making our first impression count positively to those making use of our escape room for the first time
- Make use of attractive hand bills to create awareness and also to give direction to our escape room
- Adopt direct mailing coupon marketing approach
- Position our signage/flexi banners at strategic places in and around Santa Ana – California
- Create a loyalty plan that will enable us reward our clients especially those that registered as a family or as a group
- Engage on roadshows within our neighborhood to create awareness for our escape room.
Sources of Income
Quadratic® Escape Room, LLC is established with the aim of maximizing profits in the social networking game development centers industry and we are going to ensure that we do all it takes to attract individuals, groups and corporate clients on a regular basis.
Quadratic® Escape Room, LLC will generate income by offering the following services;
- Puzzle games
- Role-playing games
- Gambling games
- Creating/finding something like a cure, a potion and so on.
- Conducting military operations, freeing a person or animal and abstract missions brought up the rear
- Other genres that fall within the Reality Gaming Industry, such as Questing, Scavenger Hunts, Treasure Hunts, Augmented Reality Gaming and Virtual Reality Gaming.
- Sale of food and beverages
10. Sales Forecast
We are quite aware that there are several business opportunities available for businesses like escape rooms; it is a line of business that attracts young and matured adults who love social networking games.
We are well positioned to take on the available market in Santa Ana – California and on our online platforms and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operation and grow the business and our clientele base.
We have been able to examine the social networking game development centers industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.
Below are the sales projection for Quadratic® Escape Room, LLC, it is based on the location of our escape room facility and the wide range of video games that we will be offering;
- First Fiscal Year: $180,000
- Second Fiscal Year: $350,000
- Third Fiscal Year: $450,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. There won’t be any major competitor (escape room) offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
11. Publicity and Advertising Strategy
We have been able to work with our branding and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for people in the whole of Santa Ana – California which is why we have made provisions for effective publicity and advertisement.
Below are the platforms we intend to leverage on to promote and advertise Quadratic® Escape Room, LLC;
- Place adverts on both print (community – based newspapers and magazines) and electronic media platforms
- Sponsor relevant community – based gaming or reality show events and competitions
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
- Install our Billboards in strategic locations all around Santa Ana – California
- Engage in roadshows from time to time in targeted neighborhoods all around Santa Ana – California
- Distribute our fliers and handbills in target areas all around Santa Ana – California
- List Quadratic® Escape Room, LLC on local directories/yellow pages
- Advertise our escape rooms in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our corporate logo et al.
12. Our Pricing Strategy
For the average escape room in the United States, admission usually ranges from $20 to $45 per person in smaller cities but escape rooms in bigger cities usually charge more. Since the bulk of our customers comes from the middle class, it is advisable to set our prices on the moderate side. We will not allow the drive to recoup our money fast tempt us to set prices that can scare our customers off.
In view of that, our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than what our competitors are charging their clients in Santa Ana – California.
Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us or when they register as a family or a group.
- Payment Options
The payment policy adopted by Quadratic® Escape Room, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulations of the United States of America.
Here are the payment options that Quadratic® Escape Room, LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via online bank transfer
- Payment via mobile money
- Payment via Point of Sales Machines (POS Machines)
- Payment via check
In view of the above, we have chosen banking platforms that will enable our clients make payment for playing our social networking games and purchase of food and beverages without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
Depending on the location, the cost of rent, and the complexity of the escape room design, opening an escape room business can cost between $7,000 and $30,000. A business license and insurance are among opening costs. Interior décor and furnishings are another.
From our market survey and feasibility studies, we have been able to come up with a detailed budget for establishing a standard escape room in Santa Ana – California and here are the key areas where we will spend our startup capital;
- The Total Fee for Registering the Business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits – $1,500.
- Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of – $1,000.
- The total cost for hiring Business Consultant – $2,000.
- The amount needed for the purchase of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $3,800.
- The total cost for the purchase of accounting software, CRM software and Payroll Software – $850
- The total cost for leasing facility for the escape room – $20,000.
- The total cost for facility remodeling – $5,000.
- Other start-up expenses including stationery – $1000
- Phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $10,000
- The cost for start-up inventory including stationery and accessories – $1000
- The cost for acquiring LED TVs, computers, comfortable chairs, tables, Air conditions, Shelve for stocking board games, video games and video games accessories amongst others. – $5,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, snooker board, tables and chairs et al) – $4,000.
- The cost of Launching a Website – $600
- The cost for our grand opening party – $3,000
- Miscellaneous – $1,000
We would need an estimate of $70,000 to successfully launch a medium but standard escape room in the United States of America.
Generating Funds/Startup Capital for Quadratic® Escape Room, LLC
Quadratic® Escape Room, LLC is a family business that will be owned and managed by Mr. Martins De Silva and his immediate family members. They decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the start-up capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $20,000 (Personal savings $15,000 and soft loan from family members $5,000) and we are at the final stages of obtaining a loan facility of $50,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Quadratic® Escape Room, LLC is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over in our escape room is to equip our facility with state of the art social networking games and to make our facility highly secured.
Quadratic® Escape Room, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of ten years or more. We know that if that is put in place, we will be able to retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Acquiring facility and remodeling the facility to fit into a standard escape room: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of games and accessories, electronic appliances, office appliances and suppliers: In progress
- Creating Official Website for the Company: Completed
- Creating Awareness for the business both online and in the neighborhood: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party planning: In Progress
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