Owning an indoor playground can be a rewarding business. On average, you can expect to get your initial investment back within 6 months after opening your doors (payback period is 6 month), the annual return on investment is between 70% to 100% in the following years.
However, like any other type of business, the actual profit and return of individual indoor playground may vary, because no two business are the same, you should make your own financial analysis. Need some help on your financial analysis? This very informative tutorial in our Resource area will help you complete the job. Besides, you can join our conversation on Facebook and get immediate help and answer from our playground experts.
Below are some defining factors that will affect the profit and payback period of your play center business:
Starting an indoor playground is a considerable investment, but there are ways to greatly reduce your cost such as buying your play equipment directly from the manufacturer. Funlandia helps you conserve greatly your startup capital, which leads to a quicker return on your investment, and of course, much higher profit. The other major costs are rent and labor, by reading through Funlandia’s article about financial analysis, you will have a good understanding of your cost structure, and enter the business with confidence.
Areas experiencing rapid economic growth have more volume and less competition, which gives you the opportunity for better profitability. Your chances of having a rapid and sustainable return greatly increase when you enter fast growing markets such as Santiago, Chile and Kiev, Ukraine. Completing a market analysis in the area you want to do business in beforehand can show you what profits and return to expect in your market.
Competition in business is expected, but knowing how to differentiate yourself from your competition will lead to greater profitability. Having the latest playground equipment and a diversified revenue source help you stand out. By working with Funlandia, China’s turn-key indoor playground manufacturer, you will gain these competitive edge over competitors and lead your market area in playground business.
The first rule of retail business is location, location, location. It is essential that your indoor playground have a good location. Setting up your small business where there is a lot of foot traffic, high visibility and of course, lots of children is vital to your play center’s revenue, profit, and return on investment. You may find these location selection advices useful when you look for your location.
Small businesses require motivation and hard work. The return on investment of each business will be different depending on how the owner operates the business. This is one of the biggest variables in all startup business. However, having access to the best playground equipment at the factory price, coupled with Funlandia’s superior support can make the difference between success and failure.