Children’s Entertainment Center Business Plan and SWOT Analysis

Children’s Entertainment Center Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Children’s Entertainment Center Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Children’s Entertainment Center business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Children’s entertainment centers are always popular in any economic climate given that parents are always going to want to find ways to entertain their children on an ongoing basis. These businesses typically face a modest amount of competition in most major metropolitan areas as well as suburban areas. The startup costs associated with the new children’s entertainment center typically runs anywhere from $75,000 to $200,000 depending on the amount of furniture, fixtures, and equipment that will be featured inside the facility. These businesses are able to generate numerous revenue streams including from facility usage, usage of specific equipment like arcade games, as well as food and beverage revenues. Most children’s entertainment centers also have a number of event hosting capabilities and allows them to host children’s birthday parties.

The gross margins generated from each revenue center is extremely high including food and beverage service which typically carries gross profits of 80% of revenue. Most financial institutions as well as private investors are generally happy to put up the necessary money to start children’s entertainment center given the highly predictable streams of revenue on an ongoing basis. One of these ways that many children’s entertainment centers further the revenue streams is by implementing a membership program that allows for unlimited usage of the facility as well as selected games. This can create a very highly recurring revenue for the business, which will substantially boost the valuation of the company.

Children’s entertainment center SWOT analysis is typically produced as well. This document outlines the strengths, weaknesses, opportunities, and threats that are faced by these types of businesses. As it relates to strengths, the demand among parents for quality entertainment for their children is substantial. In fact, studies have shown the parents now spend 500% more on their children and they did 30 years ago. As such, by maintaining a high visibility retail location and providing a number of entertaining and educational experience since for children – these businesses are always able to remain profitable and cash flow positive.

For weaknesses, these businesses typically have very high operating expenses as they must acquire a large-scale retail center from which to conduct their operations. Additionally, there are a number of rules and regulations that must be here to as relates to having children on site. Employee vetting is absolutely necessary for these types of businesses. Additionally, insurance policies also have to be acquired in the event of an on-site injury.

For opportunities, these businesses can expand by simply establishing additional locations as well as implementing a membership program as discussed above. There are numerous other ways in which these businesses can expand their visibility including through the use of social media marketing.

For threats, outside of a major economic recession and ongoing competition from area vendors there’s very little that is can impact the way that these companies do business moving forward. Parents continually demand have their children entertained especially during busy weekend.

Most financial institutions are willing to provide a necessary bank loan in order to commence operations. Of course, a children’s entertainment center business plan is going to be required. This business plan should feature a three year profit and loss statement, cash analysis, balance sheet, breakeven analysis, and business ratios page. As it relates to industry research, there are approximately 28,000 children’s entertainment centers within the United States and each year they arrogantly generate about $3 billion revenue. The industry employs 150,000 people. Of utmost importance within the business plan is the demographic analysis which should showcase the population size, population density, annual household income, percentage of families with children under the age of 12, percentage of families with children under the age of 18, and the amount of money that is spent each year on children’s entertainment. A competitive analysis should also be included which should also examine arcades, franchised children’s entertainment centers, gymnastic centers, and any other business that could be construed as a competitor to the children’s entertainment center.

A large-scale marketing plan is also needed in order to drive traffic to the location. Foremost, most entrepreneurs that start children’s entertainment centers typically seek to source a highly visible retail location from which to conduct operations. This location should be visible from all major roads within any given suburban or metropolitan area market. At the onset of operations, many children’s entertainment centers will offer completely for usage of the facility in order to familiarize with parents and children with the offerings. Typically, these free offerings last about a month after the grand opening is complete. It is important to note that many of these businesses will seek to do their grand opening during a month in which school is open or nearer the start of summer vacation. This will ensure continued usage from the onset of operations.

Beyond traditional marketing strategies that are used, an online presence is also important. A company’s website should feature information about the location, types of entertainment offered, whether or not their videogames on site, membership information, pricing information, and hours of operation. Many entrepreneurs will have a search engine optimization firm as well as a pay per click marketing management firm work with the company in order to ensure that people can find the business very quickly from their mobile phones as well as their desktops. It is very important that the company’s website is mobile phones friendly.

An additional presence on social media is almost always necessary for these types of businesses given the fact that many people will seek to arrange play dates and can specifically mark the children’s entertainment center as their place of meeting. Additionally, almost all platforms such as FaceBook and Twitter as well as Yelp allow for reviews to be placed directly on these pages. A number of strong reviews will entice parents you want to bring their children to the facilities on an ongoing basis. Additionally, specialized deals and discounts can be disseminated through social media pages very quickly. Over time, the usage of a social media platform can greatly assist the entrepreneur with continuing to promote the business on an ongoing basis. This is a very low cost for marketing once a social media pages established.

Children’s entertainment centers are very popular businesses and they will remain so for the  foreseeable future. Although more and more technologies being brought in home in order to entertain children, there still a demand among parents to go to specific locations outside of the home. The high gross margins generated from admission, gain usage, food and beverage service, and event hosting allows these businesses to produce a number of different types of revenue all of which carry very high gross profits. For an entrepreneur that has extensive experience with the development of retail entertainment facilities, a children’s entertainment center can be a highly lucrative small business opportunity with unlimited room for growth.