If you plan to open an indoor playground, you are certainly wondering about financing.

How much does an indoor playground cost and how do you go about financing your project? Play In Business, a specialist in indoor playgrounds for over 30 years, will answer these two questions in this article.

Summary:

  • The Development Budget
  • The Importance of the Business Plan
  • The Composition of the Business Plan
  • Personal Contribution

The Development Budget: How to Evaluate It?

Calculating the budget related to the building is difficult to quantify as it depends on its condition and composition: whether the building is already fitted out or not, whether it needs to be constructed, etc.

Regarding furniture and fittings, everything depends on the surface area of the indoor playground. For example, you should budget approximately €100,000 excluding tax for a modular play structure on a surface area of 700 to 1,000 m², to which you can add an inflatable, trampolines, a climbing wall, a laser corridor, a kart track to optimize your indoor playground. Not to mention tables and chairs, furniture for birthday rooms, IT equipment, sound systems, decorations, offices, changing rooms, kitchen equipment, the mascot, outdoor signage, etc.

Of course, you must also account for ancillary costs such as a potential right to lease, notary fees, lawyer fees, architect fees, engineering fees, control laboratory fees, etc.

Once you have evaluated the necessary development budget, it will be time to start on the Business Plan, an essential document for obtaining your financing.

The Business Plan: What is its purpose?

The Business Plan is one of the mandatory steps for opening any play park.

It will allow you to clarify all your ideas. But above all, it is the essential document for your bank to agree to finance your indoor playground project. It defines your strategy and your objectives. It must answer the questions investors ask and be particularly explicit, as financiers are not necessarily familiar with the characteristics of an indoor playground.

Never lose sight of the fact that the ultimate goal of the Business Plan is to convince your bank or any other investor that your project is viable and will be profitable.

The Business Plan: What does it consist of?

A cornerstone for all business creations, the Business Plan differs in substance, as each company and each project is different, but shares a common form and content:

  • The presentation of the service offering: it will explain the concept of your project, the nature of the market, the need it addresses, the sources of revenue, etc.
  • The project’s development stage;
  • The market study: its estimation, its possible evolution, regulations, customer and competitor analysis;
  • Strategies: origin of the project, planned development, pricing policy applied, communication plan, equipment and installation needs from a physical and financial perspective, partnerships, suppliers, project progress status;
  • The development plan: operating schedule, market shares, forecast turnover, profitability;
  • Human resources: role and skills of team members;
  • Legal structure: chosen legal form, amount and distribution of capital, evolution of share capital;
  • Financing needs;
  • Financial data: calculation of forecast turnover, annual forecast income statement, monthly cash flow plan for the first 12 months;
  • The exit strategy for potential shareholders;
  • Appendices: to supplement or corroborate the information provided.

Personal Contribution: What initial capital is required?

The personal capital contribution depends on the chosen company structure. SARL, EURL, SNC, and SAS do not have a minimum capital, unlike SA for which it amounts to 37,000 euros.

However, even if 1 euro is sufficient for most of the mentioned company types, the initial capital must be consistent with the investments. It is therefore inevitable that the cash flow covers working capital needs. Consequently, a contribution of at least 25% seems necessary for financing your indoor playground.

Consider interest-free loans, honor loans, business creation loans, and subsidies granted by your region and department, as well as those offered by BPI France.

Do not hesitate to contact Play In Business for any information, particularly regarding the dedicated training we offer.