When you’ve decided to open your own trampoline park, it can be easy to want to jump in, literally. You’re so excited about getting started that you want to rent or purchase space and immediately start measuring it for the size of your trampolines. There is so much to do and you just can’t wait to start crossing things off your list.
Your first page should be a clean cover page. It should list your name, phone number and other critical contact information. You should have a title that makes it clear what your business is about.
The important thing to remember with your cover page is that it needs to be clean and easy to read. Your prospective investors might make up their mind and form a general impression just based on how professional your cover page looks, so it’s important.
At a minimum, your cover page should include your most basic information in a template that looks something like the following:
Proposed Business Plan – Richmond Heights Trampoline Park and Fun Center
Richmond Heights, TX 75205
Prepared: May 15, 2017
Again, we can’t stress how important it is to make a cover page that is neat and clean. You only get one first impression, so make it a good one. It’s also critical that investors have a way to get a hold of you. They might have more questions and they might also want to enthusiastically sign up to invest in your business. Either way, you want to make sure that they can reach you quickly.
This section is also called an executive summary. If the cover page is the most important for making a first impression, the executive summary is your make or break moment. If your potential investors aren’t impressed with your executive summary, they’re going to stop reading and turn you down right away, so it’s important that you get this one right.
Think of a way to describe the purpose of the business in very clear terms. This should include a statement of why the trampoline park is going to succeed. Why is there a need in the market for your business? Why do you think your business stands apart from what’s already available in the market?
You also need to write what your financial estimations are for expenses and profits. Also, include a statement of how much money you intend to raise. All of this needs to be done in a concise way.
This proposal is to open a trampoline park in Richmond Heights, Texas. Currently, Richmond Heights has no businesses where families can drop in for entertainment and exercise. The trampoline park will feature multiple jump zones for all ages, as well as an arcade. A similar park in Bluewater, Texas, a similar sized city, has been wildly successful, with nearly a half million dollars in profit this year alone. Investors are hoping to raise $2 million for the opening of the Richmond Heights Trampoline Park and Fun Center. We anticipate being able to recoup initial investments in as little as five years.
This is the section where you give an overview of your business. Talk about where you plan to locate, when you formed your business entity, and whether you have any partners to date. Make sure you also talk about your formal legal entity. Have you incorporated, or is that still something you need to do? Do you intend to be a limited liability company or something else? These are all great questions that your investors want to know.
If you’ve already been in business for a while, what success have you already realized? Have you grown in size? Have your profits grown, and if so, over what period of time? Why are you looking for new investors now?
This can all be written in a narrative form. Make it factual and truthful, but paint yourself and your venture in the best possible light. Tell the reader what your business is, how you got to where you are today, and where you’re hoping to go.
Analysis of the Industry
The next section in your trampoline park business plan is your industry analysis. This part should be pretty detailed, and you’re going to have to do your research. Here, you need to touch on why you think customers are going to be interested in what you have to offer, based on what the market looks like and how other trampoline parks have done in similar locations. Here are some things that you should cover:
- What other recreation options exist for people in the area? What other choices to people have for spending their free time and entertainment dollars? Why do you feel that you’re going to be successful?
- Are there other trampoline parks in the area? If the answer is yes, why do you feel you’re going to be able to compete with them?
- How have other trampoline parks done? Are there any in markets with similar local populations that you can examine? Have these other parks made profits? How much profit have they made and in what period of time?
- Is the market changing? Are trampoline parks growing? Are more teenagers and young families spending in this area where they weren’t before?
Analysis of Potential Customers
The next section of your trampoline park business plan needs to focus on what kinds of customers you hope will walk in your door. Think about their needs and wants, and why they might choose to go to your trampoline park. How old are they? Are they in families or groups? What are they thinking about when they make decisions for their families about what to do together on an evening or weekend?
A list of things you might include in this section is:
- What age groups do you think want to use you trampoline park? Are they toddlers, tweens, teens or adults?
- Are children going to come in with their parents? Is this going to be a family activity, a friends activity or both?
- What might make a person make a decision to use a trampoline park? Are the decision makers children, adults or both?
- What thought process might a person go through to arrive at the decision to come to your trampoline park?
- Are you going to target special events such as birthday parties, field trips or church groups?
No good business idea goes without other competitors looking to get in on the action. You’re going to have to convince your investors that you can withstand the competition. You need to call out your competitors. That means that you actually need to identify who they are. You can list them by name.
When you’re thinking this through, don’t just think about other trampoline parks in the area. Your competitors are any other business that wants your customer dollars. Make sure that you think about other sports facilities for sure. That includes gymnastics facilities and other sports options, such as the YMCA or other family-friendly gyms. You’re also competing against other non-fitness entertainment options, such as fun parks with go karts, bowling and the like.
Ask yourself where your customers might be if they weren’t coming to your trampoline park. Would they go to the arcade? Would they go to a movie? These places are all your competitors.
You might also be competing against non-commercial opportunities. For example, your customers might choose to go to a park to play soccer with their families or even play in the yard, rather than go spend money on entertainment. Your competition might vary based on the season. If you live in the north, you might compete against ski resorts in the winter and sailing lessons in the summer. Anything else that people might choose to do rather than patronize your business can be considered your competition.
In this section, make sure you talk about the strengths and weaknesses of your competitors. Be honest and offer facts to back up your analysis whenever possible. Finally, identify why your business has a competitive advantage over your competitors. Talk about what sets you apart from these competitors. Close this section by talking about how you plan to compete with these competitors.
Once you’ve identified your target audience, you need a plan to get your customers in the door. Telling people you’re in business and convincing then that they should come to your business is called marketing. It’s one of the most important parts of your business until you generate a steady stream of loyal customers. This section is fun to work through and it’s also very important.
Think about how you want to brand yourself in the market. Do you want to brand yourself as a place for family activity and exercise? Are you going to be a place for teenagers to burn off extra energy? Are you a place for school and church groups to bring the whole gang? What you choose to make your brand identity determines how you look for customers.
Write a detailed plan for promotions. How are you going to tell customers that you’re in business? How are you going to make your business memorable in a sea of businesses competing for attention? Make sure you include social media, because that’s where young people are, as well as young parents. The great thing about social media is that you have direct control over how much you spend on it as an advertising venture. You can do social media without spending a dime. You can also buy ads on Facebook and other social media sites, at a budget you determine. Most sites allow you to change your advertising budget at any time, even by the day.
There are lots of other ways to advertise. Make sure you plan to send out press releases to the media. There are also business organizations that you can join that can help spread the word that you’re up and running. A grand opening is another great way to announce your new trampoline park.
For marketing, your limits are your own imagination. You can buy a billboard. Television and radio commercials are another great idea. Newspapers are a great place to advertise, too, and you can even include coupons. You can even give early customers bring a friend passes for return visits to the trampoline park. These are all great ways to find new customers.
Make sure that your marketing includes information about how people can use your park. Do they drop in or do they need to sign up online? Include website information and a phone number on any promotional materials.
Daily Operations Plan
Now it’s time to think through how the day to day business is going to work. What do you need to do in order to successfully open your doors each day? How are sign ups going to work?
How are you going to accept payments? How many employees do you need based on the numbers of jumpers you plan to have? How do you address things like maintenance and janitorial services? Who is going to maintain your website?
Also, address how many customers you plan to have each month. Then, address where that leaves your bottom line. Where do you plan to be in a year? What about in three or five years?
Prospective investors want to know that you have people in place that are going to do an excellent job leading the business venture. It doesn’t do any good to have a great business plan if your leadership team can’t execute it well. You need to convince your prospective investors that your leadership team is highly qualified for the task.
This is also a good place to address employment needs. You can have a section that discusses how many people you need to hire. You can think through what hiring criteria are going to be and your plan to conduct background checks on new hires. Address how you’re going to deal with employee discipline and termination.
Business investors and banks are number crunchers, and they want to make sure that your venture literally measures up. How does the trampoline park generate revenue? What do you protect for user fees? Are there group packages? Is there a discount for signing up online in advance?
Address how many customers you expect to have and what the bottom line is for revenue projection. From there, what expenses do you have that you need to pay? What are your building and utility costs? Employees costs are usually substantial. What does it cost to maintain equipment and purchase new equipment as equipment suffers from wear and tear? Make sure that you address janitorial costs, business supplies and even technology needs such as website expenses and computer replacement.
Use an appendix to attach documentation that supports your business plan. This is where you can put complete financial records, income statements, accounting reports and projected cash flow reports. Any place in your business plan where it’s helpful to have a table or report, you can put it in the appendix. It’s also a great place to put proposed marketing materials.
Use this template as a way to detail your trampoline park business plan in a way that your potential investors can follow. This is the information that they’re looking for. Also, practice explaining your business plan in person. That way you’re all set when eager investors ask to meet face to face.
Your investors are about to make a big decision. Make sure they have all of the information they’re looking for in a format that they can understand. Finally, proofread your plan for errors. Make sure your font is easy to read and your margins and spacing are clear and standard. Have fun planning your trampoline park.
Other Things to Consider
You might have heard the saying that a failure to plan is a great plan for failure. It’s certainly true in the context of opening a trampoline park. There are a lot of things that you need to do, and the first thing that you need to do is make a plan of all of those things.
When you’re organized, you can get more done in a shorter period of time. You can also avoid the pitfalls that stand between you and success. Potential investors might also want to see your business plan, too. If they’re confident you’ve thought it through, they might be more willing to lend you needed capital.
Where do you begin?
Once you’re in agreement that you need a solid business plan, the thought can be overwhelming. You might not have any idea where to start or what to include in a trampoline park business plan. There’s a lot that goes into it, but there’s nothing that you can’t handle with a little bit of thought.
What do you want to accomplish?
When you’re thinking on things to include in business plan for your trampoline park, you can think about your goals. Think about why you’re opening your business and how you define success. Then think about how you can measure your goals and progress as your business proceeds. You can also evaluate the market to see if there’s a likelihood that you’ll reach your goals. Here are some things to include in business plan as you think about your trampoline park:
Compare the competition
You’re not competing against yourself. You have a lot of different businesses around you that want the same attention and money from your potential customers. You’ve got to compete with these businesses if you want to see the foot traffic coming through your doors. Start by identifying who these businesses are and what similar services they provide. Next, think about how you can distinguish yourself from these businesses.
Think about how you’re different than the companies you want to compete with. Perhaps they’re traditional gymnastics facilities while you provide trampolines that are easier for most people to use. Perhaps they’re located far away from a city while you’re closer to bigger groups of people. Maybe you plan to be bigger or offer longer hours or more equipment. Perhaps you can offer a cleaner, bigger facility or better pricing.
Your competitors also might not always be sports related, either. On cold, winter days your competition might be a museum or a movie theater. Perhaps your selling point is that you offer physical activity that’s always rated G.
Nobody likes a copycat, and that’s true in the business world, too. If you’re trying to do the same thing as the person down the street, you’re not going to do as well as you might do if you innovate something of your own. Think of ways that your new trampoline park can be different than what exists today in your market.
Maybe there’s nothing even like it close by. Maybe you’re going to offer better equipment than the next guy. You could offer attractive waiting spaces for parents with coffee for sale or even a play place for younger siblings. There are a lot of ways to make your business stand out in this regard.
Innovation is attractive to customers, too. They want to try something new. Your business becomes purposeful and a novelty when you offer something that doesn’t currently exist in the local marketplace.
A backup plan
Nothing in life goes exactly like we plan it. You should have a back-up model for your trampoline park business plan so that you can make changes when you need to tweak things around. There are a few ways that you can address this.
One thing to do is to think of what you’re going to do if you don’t get as many customers as you expect right away. You could say that if you don’t get 100 people per day in your park within three months, you can spend more on marketing. Alternatively, you can adjust business hours to cut down on employee costs when you don’t have the numbers that you’re looking for.
You should also think about what to do if your business is more successful than you anticipated. Can you expand your hours to accommodate these guests? Can you add more equipment or expand to a second location? It’s important to plan for success just as much as you plan for failure.
A market analysis
What types of people do you plan to attract to your trampoline park? What ages are they? Do they come alone or with their families? Are they teenagers hanging out with their friends?
You should also evaluate the income level of your potential customers. What is their typical lifestyle? What else do they do for fun besides frequent trampoline parks? What are they coming to your business to do?
When you take the time to understand your customers, you can better meet their needs. You can also think about where to find these customers. Identifying who you’re looking for can make advertising to these customers much easier.
You need to reach your audience. No matter who your audience is, they’re on social media. You should dedicate part of your business plan to addressing how you plan to reach your customers on social media. This helps you reach potential customers for a low fee.
Employees – Hiring and Engaging
Employees are the face of your trampoline park. You need to address how you plan to hire them and how to keep them working well on the job. You need to talk about how you plan to evaluate employees as well as employee policies. It’s important to create these policies before you hire anyone.
While we hope your business lasts forever, it might not. Sometimes that can be a great thing. You might get bought out by a larger company or you might decide to franchise the business. Having a plan for how these big things can happen can make you more attractive to lucrative investors.
A commitment to the plan
Finally, you need a plan to work your plan. Plans are great on paper, but they don’t mean much if you don’t put them into practice. Once you’ve decided what to do, don’t just go out and do whatever you might have done before, as though you never made the plan in the first place. When you make a plan, stick with it.
Everyone in your leadership team should sign the plan. That shows your commitment to the plan. Develop good communication with all of the people that you work with as you set out to put your trampoline park business plan into action.