Do you want to start a trampoline park? If YES, here is a 20-step guide on how to start an indoor trampoline park business with no money and no experience.
Please note that if you intend starting this type of business, it is advisable to first look at the existing laws and zonal regulations in the country or state you reside in to know what is expected of you. The bottom line is that you would need to pay a visit to the regulatory body in your country to get all the information on what you need to do before you can legally open your own indoor trampoline park – business in your city.
You can start your indoor trampoline business from a small town in the United States and if you are good at what you do when it comes to keeping children entertained, it won’t be too long before your brand becomes nationally recognized.
Steps to Starting an Indoor Trampoline Park Business
1. Understand The Industry
Indoor trampoline park business is under the amusement and theme park industry and businesses in this industry basically operate mechanical rides, trampoline parks, water rides, games, shows, themed exhibits, refreshment stands and other attractions.
It is important to state that companies in this industry may also lease space for parties and other shows on a contract basis. A close watch on happenings in the Amusement and Theme Parks industry shows that the industry has grown strongly over the years, and this is driven by a rise in international and domestic visitors and rising consumer spending.
Even though the industry is highly competitive, the major amusement park operators in the United States have used their intellectual property rights to major film franchises and entertainment to their advantage, pivoting beloved films and characters into exciting new features and rides to propel revenue and increase their profit margins.
It is worthy of mentioning that the industry is dominated by a small number of massive entertainment companies, which have pursued both domestic and international expansion opportunities, including China and the Middle East.
Interesting Statistics About the Industry
Statistics has it that in the United States of America alone, there are about 624 licensed and registered Amusement Parks, and they are responsible for employing about 139,041 employees. The industry rakes in a whooping sum of $18 billion annually with an annual growth rate projected at 5.4 percent between 2011 and 2016.
It is important to state that Cedar Fair LP, NBC Universal, SeaWorld Parks & Entertainment, Six Flags Inc. and The Walt Disney Company has lion shares of the available market in this industry. A recent report published by
IBISWORLD shows that the Amusement and Theme Parks industry has high barriers to entry, particularly for theme parks with major roller coasters and other attractions. The industry has a high level of concentration, with the four largest players expected to account for more than 80 percent of total industry revenue in 2017.
This can pose a significant barrier to entry for new players, since the sheer cost of constructing worthwhile rides and attractions represent an enormous initial investment. The report also stated that significant opportunities exist for smaller and niche players operating in local or regional markets.
In recent time, the Amusement and Theme Parks industry has experienced revenue growth, despite many families being time – strapped. While the industry contended with mounting competition from alternative leisure activities, such as bouncing castle, gym and fitness centers and cinemas, many operators generated industry revenue growth on the basis of convenience.
In the coming years, the industry revenue is forecast to grow as family entertainment centers such as amusement parks will continue to enhance their product portfolios to attract families, despite their reduced leisure time.
Starting a trampoline park 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.
2. Conduct Market Research and Feasibility Studies
- Demographics and Psychographics
The demographic and psychographics composition of those who visit indoor trampoline parks are not restricted to children who love outdoor activities and games but also adults and families. There is a wide range of clienteles who visit indoor trampoline parks for different purposes.
In essence, the demographic composition cum target market for an indoor trampoline park is all encompassing; it is not restricted to any age group, gender, race, tribe or group of people.
So, if you are looking towards defining the demographics for your indoor trampoline park facility business, then you should make it far reaching.
3. Decide What Niche to Concentrate On
It is important to state that there are no niche ideas when it comes to indoor trampoline park because the business is a niche idea in the Amusement and Theme Parks industry.
But players in this line of business may decide to go beyond entertaining children and keeping them physically and mentally fit, to going ahead to make available video game house, bowling alley, BBQ joint, food and drinks court, ice cream shop and enough parking space so as to get parents and guardians occupied when they bring their wards to the facility.
The Level of Competition in the Industry
Irrespective of the line of business you decide to invest in, you are still going to compete with others who are into same area of business and indoor trampoline park facility business is not an exemption.
The level of competition in the industry to some extent depends largely on the location of the business, your niche area of operation and of course the capacity of your indoor trampoline park facility. If you can successfully create a unique niche for your indoor trampoline park business, you are likely going to experience little or no competition.
For instance, if you are the only facility in your location that is operating 24 hours 7 days a – week and also have state-of-the-art family entertainment center with multiple attractions, you can successfully monopolize the market for a long time before you start having competitions.
It is important to also state that the competition in the Amusement and Theme Parks Industry is not restricted to competitions amongst indoor trampoline parks but you will be competing against all players in the entertainment and recreational industry.
4. Know the Major Competitors in the Industry
Here are some of the most popular Trampoline Parks in the United States of America;
- Launch Trampoline Park
- Sky Zone Indoor Trampoline Park
- Urban Air Adventure Park
- Bounce! Trampoline Sports
- AirTime Trampoline & Game Park
- Altitude Trampoline Park
- Flight Trampoline Park
- Helium Trampoline
- Rockin’ Jump
- Big Air Trampoline Park.
Economic Analysis
When it comes to starting an indoor trampoline park facility, you just have to get your costing cum economic analysis right if your intention of building the business is to generate profits, grow and perhaps expand the business and start competing at the national level while attracting clients from all across the globe.
When conducting costing and economic analysis for your indoor trampoline park facility, you just have to critically examine these key factors; place, pricing, and promotion. You would have to continue to review these key factors at regular intervals while running your business. As an indoor trampoline park facility business owner, you just have to have a proper grasp of your competitive landscape if indeed you want to maximize profits and be in the frontline of the industry.
It is important to note that security and facility maintenance cost is one of the most important factors contributing to the overall cost of running an indoor trampoline park facility business and should be considered as a major factor when carrying out your costing and economic analysis.
5. Decide Whether to Buy a Franchise or Start from Scratch
There is no hard and fast rule when it comes to choosing how you intend starting a business. Basically, you should be guided by your overall business vision and mission statement.
Although there are some indoor trampoline parks that are into franchising, but if you are looking towards starting an indoor trampoline park facility business, it will pay you to start from the scratch because you can hardly get the franchise of an indoor trampoline park business at affordable price to buy.
Starting an indoor trampoline park facility business from the scratch might be stressful but it is profitable and can run on auto – pilot when compared to other similar businesses. With indoor trampoline park facility business, you should just try as much as possible to secure a good location and then leverage on every marketing tool within your disposal especially the internet when it comes to marketing your indoor trampoline park facility.
Please note that most of the successful indoor trampoline parks around started from the scratch and they were able to build a solid business brand. It takes dedication, hard work and determination to achieve business success.
6. Know the Possible Threats and Challenges You Will Face
A common challenge is that many indoor trampoline parks are subject to extreme revenue volatility throughout the year. If you decide to open your own indoor trampoline park today, one of the major challenges you are likely going to face is the presence of well- established indoor trampoline parks, amusement, theme park facilities and other players in the family entertainment and recreational industry in your target market location.
The only way to avoid this challenge is to create your own market. Some other threats and challenges that you are likely going to face are mature markets, bad economy (economy downturn), and stiff competition.
So also, unfavorable government policies, seasonal fluctuations, demographic/social factors, downturn in the economy which is likely going to affect consumers spending for leisure services and of course emergence of new competitors within the same location where yours is located. There is hardly anything you can do as regards these threats and challenges other than to be optimistic that things will continue to work for your good.
7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)
You either choose a general partnership, or Limited Liability Company which is commonly called an LLC for your amusement and theme park facility.
But if your intention is to grow the business and welcome visitors (children) from all across the United States of America, then you should choose Limited Liability Company, LLC or even general partnership. That is the most suitable legal entity that will cut it for you.
8. Choose a Catchy Business Name
Normally, when it comes to choosing a name for your business, you should be creative because whatever name you choose for your business will go a long way to create a perception of what the business represents. Typically, it is the norm for people to follow the trend in the industry they intend operating from when naming their business.
9. Discuss With an Agent to Know the Best Insurance Policies for You
In the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance policies that are required by the industry you want to operate from. Thus, it is imperative to create a budget for insurance and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your business.
Here is some of the basic insurance policies that you should consider purchasing if you want to start your own indoor trampoline park in the United States of America;
- General insurance
- Health insurance
- Liability insurance
- Risk Insurance
- Workers Compensation
- Building/Property insurance
- Overhead expense disability insurance
- Business owner’s policy group insurance
- Payment protection insurance
10. Protect your Intellectual Property With Trademark, Copyrights, Patents
If you are considering starting your own indoor trampoline park business, usually you may not have any need to file for intellectual property protection/trademark. This is because the nature of the business makes it possible for you to run the business without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
On the other hand, if you want to leverage on this business opportunities within the industry and also to protect your company’s logo and other documents or software that are unique to you or even operation concepts, then you can go ahead to file for intellectual property protection.
If you want to register your trademark, you are expected to begin the process by filing an application with the USPTO. The final approval of your trademark is subjected to the review of attorneys as required by USPTO.
11. Get the Necessary Professional Certification
When it comes to operating an indoor trampoline park business, you do not need to have any formal training or special certification before you can be allowed to open and operate such facility business in the United States of America. All you need is informal training that will expose you to the in and out of managing an indoor trampoline park facility.
On the other hand, if you come across any form of certification that can aid you to conduct your indoor trampoline park business better, then by all means try and pursue such certification.
12. Get the Necessary Legal Documents You Need to Operate
It is a fact that you cannot successfully run any business in the United States without the proper documentations. If you do, it won’t be too long before the long hands of the law catch up with you. These are some of the basic legal documents that you are expected to have in place if you want to legally run your own business in the United States of America;
- DBA
- EIN
- Business and liability insurance
- Federal Tax Payer’s ID
- State Permit
- Certificate of Incorporation
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Online Terms of Use (if you have a website)
- Online Privacy Policy Document (basically for online payment portal)
- Company Bylaws
- Memorandum of Understanding (MoU)
13. Raise the Needed Startup Capital
Starting a standard, secured and well-equipped indoor trampoline park business is capital intensive even if you choose to launch the business on a small scale and you only have a handful of employees on your payroll. Leasing of a standard facility that can accommodate your customers and staff members and of course equipping the facility are part of what will consume a large chunk of your startup capital.
So if you choose to start the business on a small scale, you will still have to source for fund to finance the business. No doubt when it comes to financing a business, one of the first things and perhaps the major factors that you should consider is to write a good business plan.
If you have a good and workable business plan document in place, you may not have to labor yourself before convincing your bank, investors and your friends to invest in your business. Here are some of the options you can explore when sourcing for start-up capital for your amusement and theme park facility business;
- Raise money from personal savings and sale of personal stocks and properties
- Raise money from investors and business partners
- Sell shares to interested investors
- Apply for loan from your bank
- Pitch your business idea and applying for business grants and seed funding from, government, donor organizations and angel investors
- Source for soft loans from your family members and your friends.
14. Choose a Suitable Location for your Business
Starting an indoor trampoline park facility business comes with its own challenges, as it is a business that cannot be started in any location. As a matter of fact, you will need approval from the local council and other regulating authorities in the city you intend opening your business.
It cannot be overemphasized that the location you choose to start your business is key to the success of the business, hence entrepreneurs are willing to rent or lease a facility in a visible location; a location where the demography consists of children and parents (people) with the require purchasing power, and lifestyle.
If you make the mistake of renting or leasing a facility for your indoor trampoline park facility business in a not too visible or hidden location simply because it is cheap, then you must be prepared to spend more in promoting the business.
Most importantly, before choosing a location for your indoor trampoline park business, ensure that you first conduct a thorough feasibility studies and market survey. The possibility of you coming across similar business that just closed shop in the location you want to open yours can’t be ruled out.
These are some of the key factors that you should consider before choosing a location for your indoor trampoline park business;
- The demography of the location especially as it relates to children and families
- The demand for the services of indoor trampoline parks and other recreational related facilities in the location
- The purchasing power of the residents of the location
- Accessibility of the location
- The number of indoor trampoline park facilities and other recreational related services that are in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
15. Hire Employees for your Technical and Manpower Needs
When starting opening an indoor trampoline park, you will need a trampoline-lined playing court where customers can come for walk-in “open jump” times as well as parties and other events. In setting up a small office for your indoor trampoline, you will need a computer, printer, software apps, telephones, pager, photocopier, scanner, and fax machine. These machines, equipment, tools and instrument can be purchased as fairly used especially if you have limited finance to meet your budget.
When it comes to choosing between renting and leasing a facility for your indoor trampoline park facility, the size of the facility you want to own, and your entire budget for the business should influence your choice. Besides, you will need a facility that is in serene environment and big enough to accommodate the number of visitors and staff member working for you.
As regards the number of employees that you are expected to kick start the business with, you would need to consider your finance before making the decision. Averagely, when it comes to starting a standard indoor trampoline park on a large scale, you would need the services of the following professionals;
Chief Operating Officer (you can occupy this position), Marketing and Sales Executive (Business Developer), Accountant, Park Safety Instructor/Assistant, Human Resources and Admin Manager, Facility Manager, Customer Services Executive, Ticketers/Front Desk Officer, Security Guards and Cleaners.
You would need a minimum of 15 to 50 key staff members to effectively run a medium scale but standard indoor trampoline park facility
The Service Delivery Process of the Business
The service delivery as it relates to indoor trampoline park facility to a large extent depends on the organization and what they stand to achieve.
An indoor trampoline park facility that is ready to welcome visitors, primarily children, places gate fees and perhaps ticket fees. Before visitors are allowed to come in, they are expected to pay gate fee and, in most cases, they also pay to access the trampoline-lined playing court.
It is important to state that an indoor trampoline park facility may decide to improvise or adopt any business process and structure that will guarantee them efficiency and flexibility; the above stated indoor trampoline park facility business process is not cast on stone.
16. Write a Marketing Plan Packed With ideas & Strategies
The fact that the entry barrier for starting a small – scale indoor trampoline park facility services business is not too high means that there is bound to be more players in the industry no matter the location you choose to start yours. In essence, you must come up with unique and fun filled trampoline-lined playing court where customers can come for walk-in “open jump” times as well as parties and other events if you must carve out a market for yourself.
So, when you are drafting your marketing plans, make sure that you create a compelling company profile. Aside from your qualifications and experience, it is important to clearly state what you have been able to achieve in time past. This will help boost your chances in the market place when marketing your park.
Here are some of the platforms you can utilize to market your indoor trampoline park;
- Introduce your indoor trampoline park facility by sending introductory letters alongside your brochure to religious organizations, sport clubs, children clubs, schools, corporate organizations, households and key stake holders in and around the location where your indoor trampoline park facility is located
- Open your indoor trampoline park services with a party so as to capture the attention of residents who are your first targets
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
- Making your first impression count positively to those making use of your indoor trampoline park facility for the first time
- Make use of attractive hand bills to create awareness and also to give direction to your indoor trampoline park facility
- Engage in roadshow in targeted communities from time to time to market your indoor trampoline park facility
- Advertise your services in community based newspapers, local TV and radio stations
- List your business and products on yellow pages ads (local directories)
- Leverage on the internet to promote your indoor trampoline park facility
- Engage in direct marketing and sales
- Encourage the use of word of mouth marketing (referrals)
- Leverage on the internet to promote your indoor trampoline park facility (when you blog regularly on key issues as it relates to your business, people who consider you an expert in the field)
- Join local chambers of commerce and industries around you with the main aim of networking and marketing your indoor trampoline park facility; you are likely going to get referrals from such networks.
Engage the services of marketing executives and business developers to carry out direct marketing for you
17. Work Out a Reasonable Pricing for your Services & Products
One key factor that will help you offer your services at the right price is to ensure that you cut operational cost to the barest minimum and channel your efforts towards marketing and promoting your brand name.
You can also try as much as possible to work with independent contractors and marketers; it will help you save cost for paying sales and marketing executives. So also, if you are able to secure business partnership as it relates to getting referrals, then you will be able to get the right pricing and of course maximize profits from your business.
18. Develop an Iron-clad Competitive Strategies to Help You Win
The indoor trampoline park line of business is not a competitive industry, but you must come up with a unique and highly creative strategy to be able to outsmart your competitors in the industry.
Part of what you need to do in order to stay competitive in the industry is to ensure that your facility is a state-of-the-art family entertainment center with multiple attractions based around trampolines, games and music; providing families, individuals and groups with a fun physical type of experience in a safe, clean, monitored environment.
In other to stay competitive in this industry, you must ensure that your clients are always comfortable, secured and always ensure that you pay attention to details when carrying out your job. The truth is that if there are fluctuations in the services you provide, customers can choose to shift allegiance and settle for other options available.
19. Brainstorm Possible Ways to Retain Clients & Customers
When it comes to business, no matter the industry that you choose to pitch your tent in, one of the easiest ways to increase customer retention and perhaps attract new customers is to produce results and satisfy your customers always. If your customers are satisfied with your facility and service delivery, they can hardly source for alternative service providers.
One of the strategies that you would need to employ in order to generate repeated sales from your customers and also to retain them is to ensure that you always ensure that your facility is on point and your customer services does not fluctuate.
If your services and customer service fluctuate, you are likely going to struggle to get your customers coming back. Ensure that you offer your customers incentives if you want to retain them and of course continue to generate repeated sales from them and also to attract new customers.
Part of what you need to do to achieve this is to track progress, results or outputs with the aim of improving on them quickly as the case demands. When it comes to managing your customers and building a loyal clientele base, you should purchase a customized CRM software.
With a customized CRM system, you can easily stay in touch with your clients (you can carry out quick surveys, you can introduce new products and prices to them without any hitch, you can felicitate with them on their birthdays and other anniversaries, you can keep track of their progress, you can send bulk sms and customized e – mails and above all, you can easily receive compliant and feedback from them).
20. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity
If you are in business and you are not conscious about boosting you brand awareness and communicating your corporate identity, then you should be ready to take on whatever the society portrays your business to be. One of the secrets of larger corporations is that they are willing to spend fortunes to boost their brand awareness and to continue to communicate their corporate identity the way they want people to perceive them to be.
No matter the industry you belong to, the truth is that the market is dynamic and it requires consistent brand awareness and brand boosting cum promotion to continue to appeal to your target market. Here are the platforms you can leverage on to boost your brand and create a corporate identity for your indoor trampoline park facility;
- Place adverts on both print (newspapers and magazines) and electronic media platforms
- Sponsor relevant community – based events
- Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote your indoor trampoline park
- Install your billboards in strategic locations all around your city or state
- Engage in roadshows from time to time in targeted neighborhoods to create awareness of your indoor trampoline park
- Distribute your fliers and handbills in target areas
- List your indoor trampoline park business in local directories / yellow pages
- Advertise your indoor trampoline park in your official website and employ strategies that will help you pull traffic to the site
- Position our Flexi Banners at strategic positions in the location where your indoor trampoline park facility is located.
- Ensure that all your staff members wear your branded shirts and all your vehicles are branded with your company logo.