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How to Start an Indoor Dog Park

A s leash laws have become more restrictive and cities are becoming more and more crowded, many concerned dog owners are using indoor dog parks as a place to spend quality time with their pets. But just what is an “indoor dog park,” and what benefits can one bring to your city or town?

Outdoor dog parks are great if the weather is good, but what if it’s not? Indoor dog parks allow dogs and their owners to socialize in a climate-controlled, safe, indoor environment. Many of them also offer general educational classes, dog-training classes, doggy daycare, and special events.

Indoor dog parks have become increasingly popular. Pet owners are realizing the importance of socializing their dogs, and they are searching for dog-friendly environments that encourage such activities.

Indoor dog parks provide space for the off-leash exercise dogs' needs — space for them to run freely, rain or shine. If you are a dog lover and have thought about opening your own business , learning how to start an indoor dog park may be perfect for you.

Running your own business is certainly not an easy task. In fact, most small business owners work much more than 40 hours each week and they all wear many different hats.

If you open your own indoor dog park you will not only be responsible for the day to day business operations, but you'll also be the janitor, bookkeeper, social media manager and office assistant, along with a laundry list of other duties I'm sure.

How to Start an Indoor Dog Park

If you are prepared for the responsibilities of being a business owner, an indoor dog park is a great business to choose. No matter what region you live in, an indoor dog park will be of interest to the dog owners in your city. If you live in a colder climate or somewhere that gets a lot of rain, your establishment will probably be happily welcomed!

Research Your Market

Research what other indoor dog park owners are charging and what additional services they offer. Use this as a base to develop your rates. Visit indoor dog parks in other areas and ask about the day-to-day operation of the parks. If possible, speak with the owner to obtain business tips and advice that can assist with the planning of your indoor dog park.

RELATED: 10 Great Dog Business Ideas for Petreneurs

Investigate the level of interest for an indoor dog park in your proposed area. You could do this by visiting local pet supply stores, contact local veterinarians, and attend local pet expos . Speak with store customers, management, and personnel.

Learn as much as possible about the indoor dog park industry. Scope out indoor dog parks in other areas, research online informational websites, and browse through dog magazines and periodicals.

How to Start an Indoor Dog Park

Research the Legalities

Contact your city’s municipal parks office or the local town hall to inquire about regulations for running an indoor dog park. Ask about any necessary permits or licenses required by the town. Look into any ordinances in your prospective town for noise restrictions that apply to barking dogs .

You should also consult with state or regional veterinary authorities regarding appropriate vaccinations and other measures that should be required for use in an indoor dog park. But whether required or not, you must make sure that all dogs who use your park are up to date on their vaccinations.

Some states require that a veterinarian provide a dog owner with proof of vaccinations for distemper, hepatitis, parainfluenza, parvovirus, bordetella, and leptospirosis. If you live in one of these states or regions, you will need to ask each customer for a copy for each dog and keep it on file.

If hybrid canines, dogs bred with other members of the Canidae family ( wolf-dog and coyote-dog being two of the more common), are legal in your state, you must decide if they will be permitted in your indoor dog park. Your state or local government may have a vaccination requirement for these animals as well.

However, at present there is no approved vaccination against rabies for the wild side of these hybrids. Off-label use, the use of a drug for conditions for which it has not been officially approved, of the rabies vaccine for dogs may not provide effective coverage.

It is very important to research liability laws in your area and the insurance you will need to protect you and your indoor dog park from a lawsuit. For instance, what if one dog injures another dog while both are in your care and the owner of the injured dog sues you and your business? Paying one court verdict taken against you for an occurrence not covered by insurance could break you and your business.

RELATED: How to Start a Pet Business With Dogs

It is a good idea to consult an attorney about ways to separate you from your business in the legal sense so that if you lose a court case, you don’t have to pay from your personal funds to cover the verdict against you. An attorney can also help you choose insurance coverage that offers the most protection from liability issues for you and your business.

Establish Rules

Think in advance about the rules you will establish for your indoor dog park and be alert to conditions that might require you to modify them. Your initial rules could include things such as “no female in heat is allowed into the dog park to avoid fights among male dogs and unwanted pregnancies.”

The same goes for unneutered males as not only is there a risk of siring puppies accidentally, unneutered dogs can have social and behavioral problems. The high testosterone level of an unneutered dog can make him the target of aggression and harassment from other male dogs. Neutering can reduce the risk of marking, roaming, aggression, and mounting.

Another situation that begs for a rule is what you will do when one dog is aggressive with another. You will probably need a rule about bringing food or drink (for humans) or treats for dogs into the park. Try to think ahead of the situations you may encounter and what you can do in advance to defuse them.

How to Start an Indoor Dog Park

Find a Location

Research the area in which you would like to construct your indoor dog park. Search for a location that includes a large, open, indoor space with a separate room that can serve as the office .

Locate property that is away from high traffic areas, industrial buildings, and busy roads if possible. Also, be sure your site is not located too close to any of your competitors.

Construct a Business Plan

The most important part in learning how to start an indoor dog park is developing a business plan that includes all aspects of your indoor dog park.

RELATED: How to Write a Dog Walking Business Plan

You need to include health regulations and guidelines, marketing strategies, turnaround time for profits, proposed rates, length of time necessary to prepare the grounds, startup costs, and day-to-day operating costs.

Develop a Marketing Strategy

Create business materials to distribute to the community. Include fliers, pamphlets, and business cards. Distribute informational materials to animal hospitals, pet supply stores, pet photographers, dog groomers , local veterinarians — any place you can think of that might have dog owners as clientele.

Advertise in doctor's offices, restaurants, stores, churches, schools, libraries, community centers, pet periodicals, local newspapers — any place you can reach dog owners. Use every way possible to get your indoor dog park info out into the community.

Become a member of local, real-world, and online pet associations and visit online message boards. Check to see if they will allow you to advertise your dog park business on their webpages.

Design a professional website for your dog park that includes the opening date, photos of the park, rates and fees for services, hours of operation, what your park will offer, and contact information.

How to Start an Indoor Dog Park

Hire Employees

Hire employees to help run the indoor dog park. Depending on the size of the park, you may require anywhere from two to six employees at first. Hire enough staff to help with office work, waste removal , clean up, grounds maintenance, fee collection, speaking with dog owners, and generally overseeing the dogs.

What qualifications should you look for in an employee? Are there any certification requirements in your area for employees who work with animals? What do you need to require from an employee in order to limit your liability should anything happen?

This is another area in which you might want to consult an attorney. He should be able to help you develop a list of basic requirements for your employees or tell you that there is nothing in particular you need to look for in terms of legal or liability issues.

Learning how to start an indoor dog park could pay off well in the future and it would certainly be a fun job. Just make sure you know all the ins and outs, and be sure that you're responsible for any issues that may come up with clients, canines, or employees. Once you've got all your ducks, or dogs in this case, in a row you can begin creating your business plan.

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How to Start a Dog Park Business

A dog daycare or indoor dog park is an ideal business like a pet hotel for anyone who loves to spend time with dogs, Indoor dog parks and pet daycare facilities in las vegas are now more popular than ever, partly due to clients’ inability to utilize outdoor parks in times of inclement weather.

Wise Business Plans is partnering with owners and operators of indoor dog parks in Austin to assist with funding and expansion options through consumer trends tracking and market research that leads to long-term business sustainability.

Turning Dog Park Ideas into a Profitable Indoor Dog Park Business

There are different ways to turn a dog park into a business idea. You can charge a fee for using your own park (either indoor or outdoor).

Going with a dog-walking service would be the better decision on the off chance that you are lacking in the capital yet have heaps of time. There are many people who are making enough money doing this.

If you have the desire to start your own private dog park, you will have to purchase or rent a building or a plot of land. This is a great idea if there aren’t a lot of places locally where people can bring their dogs. You can also promote it as an indoor dog daycare where people can leave their dogs while they’re at work for the day.

How to start a Dog Park Business

If you love spending time with dogs, a dog daycare or a dog park can be the perfect business for you. Dog parks are just like regular recreational parks for people, especially kids, but for dogs to play and have fun. Nearly half of American households have pets, which makes dog parks an attractive option. One of the easiest and least expensive businesses to start is a dog park.

8 Steps to Start a Dog Park Business

Steps to Start a Dog Park Business Plan

1. Create Your Dog Park Business Plan

A solid business plan is a key to success as an entrepreneur. A business plan will help you plan out your operations. With a business plan, you can run your business more efficiently. With a business plan, you can learn how to start, run, and grow your new business. Business plans are the foundation of any business.

Do You Need Help In Creating a Dog Park Business Plan?

Business plan writing has never been easier for our clients. Our MBA-qualified business plan writers have written more than 15000 business plans for over 400 industries in over a decade.

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2. Research Your Market First

You should do your research before starting your business . This includes looking at what other pet services such as dog walkers, daycares, and private parks are charging. Research whether a private dog park would be popular in your area.

3. Create a Budget

Analyze the cost of constructing and maintaining the park, including grass, fences, garbage removal, lawn maintenance, drinking water, field drainage, lighting, benches, and a pooper-scooper station. You will need to decide how you will generate revenue for your budget depending on your situation.

4. Hold a Public Meeting

A larger community meeting will help you reach out to supporters and solicit feedback and ideas. To gather interest and support, speak to other dog owners, dog clubs, veterinarians, and animal control officials.

5. Form a Legal Entity

When your company is registered in the region, you will reap the benefits of being a regional business. The government has agencies that register new businesses like LLC or corporations, while in some areas, people can register online. Make sure you do all that is required to register your business.

Need to Register a Dog Park Business?

We at Wise Business Plans provide you with a wide range of  business formation services  for incorporating a company in a way that makes the process easy and allows you to stay focused on other important tasks.

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6. Obtain Business License and Permits

You need a license in order to open a dog park due to the implications it can have on the dogs, their owners, you, and the environment. Permits are what allow you to start your business legally. Those who will grant you a license will want to ensure that you can protect every life in the park and not pose any threat to society.

Do you need a License for a Dog Park Business?

Business licenses can be difficult to obtain. A wise business plan makes it effortless for you to acquire a Dog Park business license.

Let Wise Business Plans help you to Get your License for Dog Park Business

7. Open a Business Bank and 30 Accounts and Get Credit Card

Personal asset protection is enhanced when you open specialized business banking and credit accounts. When your personal and professional accounts are mixed, your personal assets (your home, automobile, and other valuables) are vulnerable if your dog park business is sued.

Furthermore, learning how to establish business credit may assist you in receiving credit cards and other financial resources in your dag park company’s name (rather than yours), improved interest rates, greater lines of credit, and

Set up a business bank account.

Apart from being a requirement when applying for business loans, establishing a business bank account has several benefits.

  • Separates your personal belongings from your dog park business’s assets, which is critical for personal asset protection.
  • Makes tax preparation and accounting simple.
  • It makes tracking expenses easier and more organized.

Recommended: To discover the greatest bank or credit union, read our Best Banks for Small Business review.

Open net 30 accounts

In order to establish and grow business credit, as well as improve company cash flow, net 30 payment terms are utilized. Businesses purchase products and pay off the whole amount within a 30-day period using a net 30 account.

Recommended: Read our list of the top net 30 vendors guide to start getting business credit or simply open your net 30 accounts with wise business plans in seconds.

Get a business credit card

It’s exciting to open a business credit card for your dog park business. A business credit card can assist you to establish credit, safeguard your company financially, access rewards (such as cashback), and simplify cash flow. It can also assist you to manage your expenditures.

Recommended: Take a look at our list of the 11 best business credit cards and decide which one is the right fit for you.

8. Set Park Rules

Generally, people don’t like rules because of the restrictions and inconveniences they cause, but you need to set them. Your rules will not be intended to show who’s the boss, but to ensure safety for people and pets.

Check out these simple and easy steps to start an indoor dog business

What is the Cost to Start a Dog Daycare Business?

The average startup cost to start an indoor dog park usually ranges between $8000 and $20,000 in addition to the expense of renting a property,

Indoor Dog Park Business Plan by Wise Business Plans

“Our pets are an important part of our lives and most of us consider them a member of the family,” said Joseph Ferriolo, Director of Wise Business Plans. “Getting pet center owners the quality information and largest indoor dog park business plan that is required to achieve success is one way that Wise makes sure that dog park is coming to Austin and our clients are well prepared for healthy, long-term business life.”

Indoor dog park business plan las vegas

Don’t miss out to look at this simple dog park business plan sample to get an idea of what a business plan looks like.

Design experts give dog-friendly indoor dog park business plans for Los vegas and Denver, a professional look, including training courses, and each client is entitled to a free revision to ensure that the plan is done right.

Wise Business Plans, staffed with MBA professional business plan writers , researchers, and financial experts, is a trusted partner for businesses across a broad spectrum of products and services. Our mission is to empower our clients to make the best possible business decisions, boost company performance and facilitate their funding success by laying the groundwork for strong businesses that excite, inspire and retain talented and exceptional employees.

Additional Business Services for Dog Park Business

Do you want to start a dog park business? With wisdom business plans, you’ll get a quick and easy 10-step guide to starting a dog park business , as well as assistance in every step along the way, from funding to registering or licensing a business entity, branding, and marketing. Following are our main services

  • LLC, S Corporation and NonProfit Business Formation
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Wise business plans also offer a  net 30 account application . If you buy products on a Net-30 account, you have 30 days after the purchase date to pay the full bill. Having a Net 30 account can also make managing your business finances easier.  Apply for your net 30 business accounts now

The steps to start a dog park business typically include conducting market research, identifying a suitable location, obtaining necessary permits and licenses, securing funding, designing the park layout, and ensuring the park meets safety and sanitation standards.

Important factors to consider when selecting a location for a dog park include proximity to residential areas, accessibility, available parking, zoning regulations, space requirements, and the presence of amenities such as water sources and waste disposal facilities.

The specific permits and licenses required may vary by location, but common requirements may include business licenses, permits for land use or construction, zoning approvals, animal control permits, liability insurance, and compliance with health and safety regulations.

Funding for a dog park business can be obtained through various sources, including personal savings, loans from banks or other financial institutions, crowdfunding, sponsorships or partnerships with local businesses, or seeking grants from government or nonprofit organizations that support community projects.

To ensure the safety and cleanliness of a dog park, it is important to have appropriate fencing and gating, separate areas for small and large dogs, regular maintenance and cleaning of the park, proper waste disposal systems, clear rules and signage, and monitoring to prevent aggressive or unsafe behavior among dogs.

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How to Start an Indoor Dog Park: 11 Steps to Follow

Adam Mann

By Adam Mann

Updated on Aug 15, 2024

Golden retriever dog running on the playground

Starting your own business can be a great way to make a little money and introduce something unique and interesting to your community. With an indoor dog park, you also get the added benefit of spending more time around dogs, and for dog lovers like us, that’s a real win-win!

But before you jump in headfirst, there are a few things you need to know and understand, and that’s why we came up with this guide that breaks down everything you should do when you’re looking at starting an indoor dog park franchise!

11 Steps to Starting an Indoor Dog Park

If you’re looking to start an indoor dog park, there are quite a few things you need to do. But if you start at the top of our list and work your way down, you’ll be well on your way to opening your business!

1. Develop a Business Plan

Every successful business starts with a business plan. This isn’t the step where you do everything, but it is where you lay out everything you need to do. Doing your research here is a great start, but you need to take this list and come up with a step-by-step guide on how you’re going to accomplish everything.

Coming up with a business plan ensures you’ve thought everything through and come up with a viable business without making many missteps. Don’t think that you can’t change things in your business plan as you go, but having everything laid out a bit will ensure you don’t miss any steps and that you have realistic expectations before you start.

2. Do Your Research

Before you start spending money, you need to research everything. A lot goes into starting a new business, and the fewer surprises you encounter, the better. During the research stage, you need to figure out who the competition is in the area, how much interest there is in an indoor dog park, fair pricing, expected profit margins, rules and laws in your area, and so much more.

This step will take quite a bit of time, but the more time you spend researching, the more likely it is that your business will succeed in the future!

3. Look at the Money

Money matters. In the end, you can set up a really neat community, but if you can’t run your business at a loss forever. Ensure the profit margins for your business work, and ensure you have enough capital upfront to start your business and keep you going if you don’t start making money in the first few months.

The exact amount of money you’ll need will vary depending on your lifestyle and the area, but the more you have on hand, the better!

4. Build a Community

Networking is a critical part of building and running a successful business. Reach out to the local community to get support, reach out to other local business owners and learn from them, and get connected with other local dog groups.

The more connections you can build, the better, so get out and start building your own community to help support your dog park!

5. Develop a Marketing Strategy

If you want your business to succeed, you need everyone around to know about it! Marketing is how you can do this, but there are tons of ways you can market your business. You can focus your time and money on social media, a website, Google ads, radio ads, or so much more.

The important thing is that you come up with a marketing strategy that works for the audience you’re trying to target.

6. Find Your Location

Indoor dog parks don’t work just anywhere. When it comes to having a successful business, location is everything. You need to find the perfect location for your business at the right price, so shop around until you find exactly what you’re looking for.

7. Form an LLC

There are tons of advantages to starting an LLC. Not only does it give you tax breaks, but it also helps with insurance and other requirements that come with running a business. The exact requirement to form and register a business will vary depending on where you live, so check out the local laws and regulations and follow them.

We highly recommend reaching out to a lawyer during this stage, as they can advise you on everything you should do, including all the necessary licenses, permits, and insurance you need to get to operate an indoor dog park in your area .

8. Get Licenses, Permits, and Insurance

You can’t just claim any building or area is open for pets. You need to get all the necessary permits to run a business, be around so many pets, and get the necessary insurance so that if something happens at your facility, you don’t go broke.

9. Create a Business Bank Account

Trying to run your business out of your personal bank account is a recipe for disaster. Create a completely separate bank account for your business. That way, you can better track income and expenses and save yourself a ton of headaches during tax season.

10. Set Park Rules

Not every indoor dog park has the same rules, but it’s important to have clear and enforceable rules that everyone needs to follow when they’re at your facility. Rules like cleaning up after your dog, when they need to remove rowdy or aggressive dogs, and what vaccines dogs need to attend are a few things you should establish rules about.

11. Start Your Business/Hire Employees

Now that you have all this figured out, it’s time to start your business! You may or may not need employees when you’re first getting started, but if you need a little extra help, this would be the time to hire an employee or two.

Final Thoughts

Starting your own indoor dog park can be an extremely rewarding experience, but it’s also going to be a bit stressful. But doing your homework and coming up with a solid business plan can help you avoid some of the worst struggles that sometimes come with running a new business.

Just know that there are going to be ups and down with starting a business, and try to enjoy the process, even during the more stressful days!

  • 5 Backyard Dog Playground Ideas You Can Build (With Pictures)
  • How to Build a Dog Park in Your Community: Tips & Recommendations
  • https://topdogtips.com/how-to-start-an-indoor-dog-park/
  • https://wisebusinessplans.com/dog-park-business/
  • https://barxparx.com/indoor-dog-park-franchise/

Featured Image Credit: Raywoo, Shutterstock

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  • Awesome - Customized Financial Projections for your Industry ($300 value)
  • Even MORE Awesome - Template Written by Paul Borosky, MBA.
  • Plus... - Fill-in-the-highlighted-areas Format
  • Plus... - Completed Pricing Strategy
  • Plus... - SWOT Analysis Completed
  • Plus... - Organizational Chart... Done!
  • Plus... - Funding Request Section... Yes!
  • Plus... - Step-by-Step Tutorial for Business Plan Doc.
  • Plus... - Step-by-Step Tutorial for Financial Projections Model

Dog Park Business Plan Templates Includes:

  • Executive Summary
  • Company Description
  • Pet Industry Analysis INCLUDED!
  • Organizational Structure.
  • Funding Request
  • 12-month profit and loss statement
  • 5 year pro forma income statement
  • Basic customizable Excel File
  • Ability to change revenues, costs, and labor.
  • 12 Profit and Loss
  • 5 Yr Annual Projections.

Instructional Video:

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For Questions about my template BEFORE PURCHASING or having difficulty downloading it, feel free to call me at:

321-948-9588

Available Monday - Friday from 8 AM to 9 PM EST. (Usually)

IMPORTANT NOTE - I DO NOT OFFER FREE PHONE CONSULTATIONS AFTER PURCHASING THE TEMPLATE.

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Unleash Your Business Potential with Quality Business Plan's Dog Park Template

Introduction to quality business plan's dog park template..

In today's dynamic business environment, having a well-crafted business plan is crucial for success, especially in niche industries like dog parks. Quality Business Plan understands this need and offers a comprehensive Dog Park Business Plan Template. Our template, designed by expert business plan writer Paul Borosky, MBA., is a perfect blend of professionalism and ease, making it ideal for budding entrepreneurs and established businesses in the dog park sector.

Comprehensive and Customizable: A Template for Every Need.

Our Dog Park Business Plan Template is not just a document; it's a roadmap to success. It comes in a versatile Word Document format, allowing you to customize every aspect to fit your unique vision. From the executive summary to the company description, every section is crafted to guide you in articulating your business idea compellingly and coherently. With this customizable framework, you can tweak, add, or modify content to align perfectly with your business goals and strategies.

In-depth Industry Analysis: Stay Ahead of the Competition.

The dog park industry is evolving, and staying informed is critical. Our template includes an exhaustive industry analysis specific to dog parks. This section provides valuable insights into market trends, consumer behavior, and competitive landscapes. With this information, you can make informed decisions and strategies to help your competitors and appeal to your target market.

Financial Mastery: Excel in Projections.

The most daunting aspect of a business plan is the financial projections. Our Dog Park Business Plan Template simplifies this complexity. It includes a comprehensive Excel Financial Model tailored for the dog park industry. This model features a 12-month profit and loss statement, a 5-year pro forma income statement, and annual projections. It allows you to easily modify revenues, costs, and labor estimates, clearly showing your financial trajectory.

Marketing and Organizational Structure: Blueprint for Growth

A successful business is not just about a great idea but execution. Our template guides you through developing effective marketing strategies and an efficient organizational structure. These sections help you map out the path to market your services and build a team aligning with your business's vision and operational needs.

Funding Request Made Simple.

Seeking funding can be challenging. Our template eases this process with a dedicated section for funding requests. This part helps you articulate your financial needs clearly and professionally, increasing your chances of securing investments or loans.

Conclusion: A Tool for Success

Quality Business Plan's Dog Park Business Plan Template is more than just a document; it's a tool that equips you with the knowledge, structure, and confidence to turn your vision into reality. Whether you plan to start a new dog park business or expand an existing one, our template is designed to cater to your needs. Embrace this opportunity to plan effectively and pave your way to success in the dog park industry. Visit Quality Business Plan today and take the first step towards unleashing the full potential of your business idea.

Date: 12/23

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Dog Park Business Plan Template

Written by Dave Lavinsky

Dog Park Business Plan Template

If you’re looking to create a dog park business plan, you’ve come to the right place!

Over the past 25 years, the PlanPros team has helped over 1 million entrepreneurs and business owners write business plans….and many of them have started and grown successful dog park businesses.

Dog Park Business Plan Example

Below is our dog park business plan template and sample plan created using our ai business plan generator . This is just one of the many business plan examples we have created using PlanPros.

I. Executive Summary

Company overview.

As a beacon of community and canine companionship in Perth Amboy, NJ, Newton’s Dog Park introduces itself as a premier destination for dog lovers and their furry friends. Our establishment is crafted to fill the existing gap in the market for high-quality dog parks, offering an array of services including an off-leash area, exclusive membership perks, pet-friendly events, and professional grooming services. With our central location, we are poised to attract dog owners from the local area and beyond, providing a safe and engaging environment for pets to play and socialize. Our dedication to the well-being and enjoyment of dogs and their owners is at the core of our mission, making us a valued addition to the Perth Amboy community.

Success Factors

Our confidence in the success of Newton’s Dog Park stems from several key factors. The invaluable experience of our founder in operating a previous dog park has equipped us with the knowledge to create a thriving community space. Our focus on safety and a controlled environment sets us apart from competitors, ensuring peace of mind for our customers. The range of training classes, events, and activities we offer not only enriches the pet ownership experience but also fosters a strong sense of community. Since our inception on January 8, 2024, we’ve made significant strides, including the development of a distinctive logo, careful selection of our company name, and securing a prime location. These accomplishments underscore our commitment to our vision and the promising journey ahead.

Industry Analysis

The Dog Park industry in the United States is experiencing robust growth, with a current market size exceeding $1 billion. This sector, encompassing a variety of dog-related services and products, is poised for continued expansion, driven by an increasing number of pet-owning households and a rising demand for pet well-being services. Newton’s Dog Park is strategically positioned to capitalize on this growth within the Perth Amboy, NJ area. The industry’s upward trajectory is supported by consumer trends favoring unique pet experiences and the need for convenient pet care solutions, highlighting a bright future for our business as we cater to these evolving market dynamics.

Customer Analysis

Our primary target market includes local residents who are dog owners, seeking a secure and stimulating space for their pets. Newton’s Dog Park is designed to cater to their needs, offering a valuable community resource. We also aim to attract new residents in search of a welcoming community of fellow dog enthusiasts, thus positioning our park as a cornerstone for integration into Perth Amboy. Our diverse range of structured activities and events is tailored to enhance the community feel, appealing to a broad audience interested in enriching their pets’ lives and their own social experience.

Competitive Analysis

Our competitors, such as Metuchen-Edison Community Dog Park, Linden Dog Park, and Donaldson Park, offer various amenities from spacious off-leash areas to agility equipment. However, Newton’s Dog Park distinguishes itself by providing a more controlled environment ensuring the safety and well-being of pets. Our extensive range of training classes and community events further set us apart, offering more than just a play space but a holistic experience for dogs and their owners. Our commitment to quality, safety, and community engagement provides us with a competitive edge in the thriving dog park industry.

Marketing Plan

At the heart of Newton’s Dog Park’s offerings are services designed for the ultimate enjoyment and convenience of dogs and their owners, including affordable off-leash area access, valuable dog park memberships, and engaging pet-friendly events. Our grooming services and the option to rent the park for private events further enhance our comprehensive service portfolio. To promote these offerings, we will embark on a dynamic marketing campaign, leveraging online platforms, local community involvement, and attractive promotional offers. Through a mix of digital marketing, community events participation, and strategic partnerships, we aim to build a strong brand presence and foster a loyal customer base. Our promotional strategies, including a referral program and special discounts, are crafted to attract a wide audience and establish Newton’s Dog Park as a beloved community hub.

Operations Plan

Newton’s Dog Park is committed to excellence in daily operations, emphasizing facility maintenance, cleanliness, customer service, and security. Our operational plan includes rigorous maintenance routines, strict safety protocols, and dynamic event management to ensure a top-tier experience for our patrons. Key milestones in our journey include securing an ideal location, obtaining necessary permits, and building a dedicated team. By focusing on continuous improvement and customer feedback, we aim to achieve operational efficiency and reach our financial goal of $15,000 per month in revenue, setting the stage for future growth and expansion.

Management Team

Under the visionary leadership of CEO Grace Rodriguez, Newton’s Dog Park boasts a management team with the experience and passion to realize our ambitious goals. Grace’s prior success in dog park management, combined with her dedication to community and animal welfare, positions us for success. Her strategic approach to operations and long-term planning, supported by a team equally committed to excellence, ensures that Newton’s Dog Park will provide a safe, enjoyable, and enriching environment for our canine guests and their owners.

Financial Plan

To meet our growth objectives, Newton’s Dog Park requires $240,000 in funding. This investment will be allocated across capital and non-capital needs, including location buildout, equipment, initial operating expenses, and marketing efforts. With this financial foundation, we are poised to establish a premier dog park that serves the needs of the Perth Amboy community and achieves sustainable profitability and growth.

Below is an overview of our expected financial performance over the next five years:

FY 1 FY 2 FY 3 FY 4 FY 5
Revenues $1,236,655 $1,339,088 $1,450,004 $1,570,109 $1,700,161
Direct Expenses $489,075 $513,991 $540,176 $567,696 $596,617
Gross Profit (%) 60.5% 61.6% 62.7% 63.8% 64.9%
Other Expenses $97,085 $100,030 $103,065 $106,192 $109,414
Depreciation $27,600 $27,600 $27,600 $27,600 $27,600
Amortization $0 $0 $0 $0 $0
Interest Expense $24,000 $24,000 $24,000 $24,000 $24,000
Income Tax Expense $209,613 $235,713 $264,306 $295,617 $329,885

II. Company Overview

Newton’s Dog Park is a fresh addition to the Perth Amboy, NJ, community. As a new dog park, we pride ourselves on being a local establishment dedicated to serving our fellow dog lovers and their furry friends. We’ve noticed a gap in the market for high-quality local dog parks in the area, and we’re here to fill that void with our exceptional services and commitment to our canine companions.

At Newton’s Dog Park, we offer a range of products and services designed to meet the needs of both dogs and their owners. Our offerings include access to an off-leash area where dogs can frolic and play in a safe, controlled environment. For those looking for more exclusive services, we offer dog park memberships that provide additional benefits and perks. We also host pet-friendly events and activities, creating a vibrant community for pet lovers. Additionally, we provide dog grooming services to keep your pets looking their best. For those special occasions, our dog park is available for rental for private events, making it the perfect venue for a memorable celebration.

Located in Perth Amboy, NJ, Newton’s Dog Park is perfectly positioned to serve customers from the local area and beyond. Our location is central, making it convenient for our customers to access our facilities and enjoy everything we have to offer.

We believe that Newton’s Dog Park is uniquely qualified to succeed for several reasons. Firstly, our founder brings valuable experience from successfully running a previous dog park, ensuring that we understand what it takes to create a thriving community space for dogs and their owners. Additionally, we offer a more controlled environment for dogs compared to our competition, ensuring the safety and well-being of all our furry visitors. Our extensive range of training classes, events, and activities also sets us apart, providing an engaging and enriching experience for pets and their owners alike.

Since our founding on January 8, 2024, as a S Corporation, we have achieved several milestones. We’ve developed a distinctive logo that represents our brand and mission. Our company name was thoughtfully chosen to reflect our values and the community we serve. Additionally, we found a great location that meets our needs and the needs of our customers, laying the foundation for our success. These accomplishments mark the beginning of our journey, and we are excited to see where the future takes us.

III. Industry Analysis

The Dog Park industry in the United States is currently thriving, with an estimated market size of over $1 billion. This industry includes a wide range of services and products catered towards dogs and their owners, such as dog parks, dog walking services, grooming products, and more. The market has seen steady growth over the past few years, with more and more Americans choosing to invest in their pets’ well-being.

Market research projects that the Dog Park industry in the United States is expected to continue growing at a rapid pace in the coming years. With an increasing number of households owning pets, the demand for dog-related services and products is only expected to rise. This presents a great opportunity for businesses like Newton’s Dog Park in Perth Amboy, NJ, as they cater to this growing market segment.

The trends in the Dog Park industry also bode well for Newton’s Dog Park. Consumers are increasingly looking for unique and engaging experiences for their pets, and dog parks provide the perfect opportunity for dogs to socialize and exercise in a safe environment. Additionally, with more Americans working longer hours, there is a growing need for convenient and reliable pet care services, such as dog parks, to help meet the needs of busy pet owners. Overall, the future looks bright for Newton’s Dog Park as they tap into these industry trends and cater to the evolving needs of pet owners in the area.

IV. Customer Analysis

Below is a description of our target customers and their core needs.

Target Customers

We will target local residents who are dog owners, recognizing that they represent our primary customer base. These individuals are seeking a safe and engaging environment where their pets can exercise and socialize. Our services and facilities are designed to meet the specific needs of this community, offering them a valuable resource within their locality.

We will also cater to dog owners who are new to the area, as they are often in search of places where they can connect with fellow dog lovers and integrate into the community. By providing a welcoming and inclusive atmosphere, we will become a go-to destination for these new residents, helping them to feel at home in Perth Amboy.

Additionally, we will tailor our offerings to accommodate pet owners who are looking for structured activities and events. This includes themed playdates, training sessions, and social events for dogs and their owners. Such activities will not only benefit the pets but will also foster a sense of community among participants, thus broadening our appeal to a wider audience.

Customer Needs

Newton’s Dog Park fulfills the essential need for a high-quality, safe space where dogs can exercise, socialize, and play off-leash. This offering caters to pet owners who understand the importance of physical activity and social interaction for their canine companions. The park provides an environment where dogs can freely run and engage with other dogs, which is crucial for their physical health and social development.

In addition to meeting the basic exercise and socialization needs, the park also addresses the demand for a community-centric space where dog owners can connect with fellow pet enthusiasts. This aspect of Newton’s Dog Park encourages the formation of a supportive community of dog lovers who share advice, experiences, and friendship. Such a setting not only benefits the pets but also adds value to the owners’ social lives, creating a sense of belonging and mutual support among the local dog-owning population.

Moreover, Newton’s Dog Park is attentive to the convenience and accessibility needs of its customers. The park is designed to ensure easy access for all dog owners, including those with mobility issues, and offers amenities like water stations, waste disposal facilities, and shaded areas to ensure a comfortable experience for both pets and their owners. By addressing these practical concerns, the park ensures that the focus remains on enjoyment and health, making visits hassle-free and enjoyable for everyone involved.

V. Competitive Analysis

Direct competitors.

Newton’s Dog Park’s competitors include the following companies.

Metuchen-Edison Community Dog Park offers a spacious area where dogs can play off-leash in a safe, fenced environment. This park features separate areas for large and small dogs, water fountains, and waste stations. The park operates on a free-entry basis, making it accessible to a wide range of customers. Metuchen-Edison Community Dog Park primarily serves the residents of Metuchen and Edison, appealing to dog owners looking for a cost-free option to exercise and socialize their pets.

A key strength of this park is its strong community feel, with regulars and newcomers alike praising its friendly atmosphere. However, its reliance on community donations and volunteer maintenance can sometimes lead to inconsistency in the upkeep of the park facilities.

Linden Dog Park is another major competitor, offering a well-maintained space for dogs to play. It features agility equipment, making it stand out for owners interested in more than just a run-around space for their pets. Like Metuchen-Edison Community Dog Park, it is free to use, attracting a broad customer base from Linden and surrounding areas.

The park’s emphasis on cleanliness and safety, with double-gated entries and exits, positions it as a reliable choice for pet owners. However, its smaller size compared to some competitors can become a drawback during peak hours, leading to overcrowding.

Donaldson Park provides a comprehensive recreational experience not only for dogs but also for their owners. Alongside the dog park area, it offers walking paths, sports facilities, and picnic areas. This park does not charge an entrance fee, making it an attractive destination for families seeking diverse activities in one location.

Located in Highland Park, it serves a wide geographic area, drawing visitors from multiple communities. The combination of amenities for both pets and people is a significant strength. Yet, the broad focus can sometimes result in less attention to specialized needs of the dog park section, such as regular updates to agility equipment or dog-specific facilities.

Competitive Advantages

At Newton’s Dog Park, our top priority is offering a controlled environment that ensures the safety and comfort of every canine guest. We understand that dogs, much like their owners, have unique personalities and needs. This understanding drives us to maintain a space where dogs can socialize, play, and relax under careful supervision. Our dedicated team is trained to manage all types of dog behavior, ensuring that every pet enjoys their time while minimizing the stress often associated with less controlled environments. This commitment to a high-quality, secure experience sets us apart and provides peace of mind to our valued customers.

In addition to a safe and nurturing environment, we pride ourselves on our extensive range of training classes, events, and activities designed to enhance the physical and mental well-being of dogs. From basic obedience classes to more advanced training sessions, we cater to all levels of skill and areas of interest. Our calendar is filled with a variety of events and activities, ensuring that there’s something for every dog and owner to enjoy. This emphasis on engagement and education not only strengthens the bond between pets and their owners but also fosters a sense of community among our patrons. Our comprehensive approach to dog care and community building is what truly differentiates us within the competitive landscape.

VI. Marketing Plan

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products, Services & Pricing

Newton’s Dog Park offers a variety of services catered to the needs of dog owners looking for a safe and enjoyable environment for their pets. At the core of its offerings is the Off-Leash Area Access, a space where dogs can run, play, and socialize without the constraints of a leash. This service is priced at an average of $15 per visit, providing an affordable option for pet owners to ensure their dogs get ample exercise and social interaction.

In addition to the off-leash area, the park offers a Dog Park Membership. This membership is ideal for regular visitors, offering unlimited access to the park for a monthly fee of $50. Members enjoy the convenience of frequent park visits without the need to pay per entry, making it a cost-effective choice for those who plan to visit often.

Pet-Friendly Events and Activities are another highlight of Newton’s Dog Park. From themed playdates to educational workshops for pet owners, the park organizes a range of events priced around $20 per event. These activities not only provide entertainment and learning opportunities but also foster a community among pet owners and enthusiasts in the area.

Understanding the need for pet care, Newton’s Dog Park also provides Dog Grooming Services. With prices starting at $30, depending on the size and breed of the dog, these services ensure that pets not only have fun but leave looking their best. From baths to haircuts, the grooming services are handled by professional groomers committed to the well-being of each pet.

Lastly, the park offers Dog Park Rental for Private Events. Starting at $100 per hour, this service allows individuals to host private gatherings or celebrations in a dedicated space within the park. Whether it’s a dog birthday party or a meet-up for dog lovers, the park provides a unique venue for special occasions.

Newton’s Dog Park is dedicated to creating a safe, fun, and inclusive environment for dogs and their owners. Through its range of services and competitive pricing, it aims to meet the diverse needs of the pet community in a welcoming setting.

Promotions Plan

To attract customers, we at Newton’s Dog Park will implement a comprehensive promotional strategy that leverages both traditional and digital marketing techniques. Understanding the importance of online visibility in today’s market, we will focus significantly on online marketing while also exploring other creative avenues to engage with our target audience.

Online marketing will form the cornerstone of our promotional efforts. We will develop a user-friendly website that not only highlights the features and amenities of Newton’s Dog Park but also offers valuable content for dog owners, such as tips for dog care and training. Additionally, we will maintain an active presence on social media platforms such as Facebook, Instagram, and Twitter. By sharing engaging content, including photos and videos of the park, customer testimonials, and special events, we expect to build a community of dog lovers who are enthusiastic about what we offer.

Email marketing will also play a crucial role in our promotional strategy. We will encourage visitors to subscribe to our newsletter for updates on events, promotions, and helpful information for pet owners. This direct line of communication will allow us to foster a closer relationship with our customers and keep them informed about all the latest happenings at the park.

In addition to digital marketing, we will engage in local community events to raise awareness about Newton’s Dog Park. Participating in local pet expos, sponsoring dog-related events, and partnering with local pet stores and veterinary clinics will enable us to reach potential customers in a meaningful way. These partnerships will not only provide us with additional visibility but also establish us as a committed member of the local pet community.

Furthermore, we will implement a referral program that rewards our existing customers for bringing new visitors to the park. Word-of-mouth is a powerful tool, especially in tight-knit communities, and we expect this program to generate positive buzz and attract more dog owners to our park.

Lastly, attractive promotional offers such as discounts for first-time visitors or loyalty programs for regular customers will play a significant role in our promotional strategy. These offers will not only entice potential customers to visit but also encourage them to become regular patrons of Newton’s Dog Park.

By combining online marketing with community engagement and attractive promotional offers, we are confident in our ability to attract and retain customers at Newton’s Dog Park. Our aim is to create a welcoming and vibrant community of dog lovers who see our park as the go-to destination for their pets to play, socialize, and enjoy the outdoors.

VII. Operations Plan

Our Operations Plan details:

  • The key day-to-day processes that our business performs to serve our customers
  • The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of Newton’s Dog Park, there are several key day-to-day operational processes that we will perform.

  • Maintenance of Facilities: We will conduct daily inspections and maintenance of all areas within the park to ensure a safe, clean, and welcoming environment for both dogs and their owners. This includes repairing any damaged fences, maintaining lawn and garden areas, and ensuring all amenities are in good working condition.
  • Cleanliness: We will implement a rigorous cleaning schedule, focusing on waste disposal stations, restrooms, and common areas to maintain high hygiene standards. Staff members are tasked with regular patrols to clean up after pets and dispose of waste appropriately.
  • Customer Service: Our staff will provide exceptional customer service, assisting with inquiries, managing memberships, and ensuring all visitors adhere to park rules for the safety and enjoyment of all patrons.
  • Security and Safety: We will enforce strict entry and exit procedures to ensure only registered dogs and their owners can access the park. Regular patrols and surveillance will be conducted to maintain security and to promptly address any incidents or emergencies.
  • Event Planning and Management: We will organize and host various events to engage the community, such as dog training classes, adoption days, and themed playdates. Planning involves coordinating with vendors, marketing events, and managing registrations.
  • Inventory Management: We will manage inventory for all necessary supplies, including waste bags, cleaning materials, and any products for sale, such as treats and toys. Regular inventory checks will ensure that we are always well-stocked.
  • Financial Management: Daily financial activities, including sales tracking, expense monitoring, and budgeting, will be conducted to ensure the park’s profitability and sustainability.
  • Feedback Collection and Analysis: We will actively collect feedback from our customers through various channels, such as online surveys, suggestion boxes, and direct conversations. This feedback will be analyzed to identify areas for improvement and to make informed decisions about future services and amenities.
  • Marketing and Social Media: We will maintain an active presence on social media and other marketing platforms to engage with our community, provide updates about the park, and promote upcoming events. This also includes managing our website for information dissemination and online registrations.
  • Staff Training and Development: Continuous training programs will be implemented to ensure that all staff members are knowledgeable about dog behavior, park policies, and customer service excellence. This includes emergency response training and first aid for both humans and pets.

Newton’s Dog Park expects to complete the following milestones in the coming months in order to ensure its success:

  • Securing a Prime Location: Identify and secure a lease or purchase agreement for a location that is accessible, safe, and desirable for dog owners in Perth Amboy, NJ. This will involve negotiating terms that are favorable and sustainable for the business.
  • Obtaining Necessary Permits and Licenses: Successfully navigate local regulations to obtain all necessary permits and licenses required to operate a dog park. This includes health and safety certifications, as well as any specific permits related to animals and public spaces.
  • Building and Preparing the Park: Complete the construction or conversion of the space into a dog park that meets the needs of dogs and their owners. This includes installing fences, gates, waste disposal facilities, water stations, sheltered areas, and possibly agility equipment, ensuring the park is both functional and appealing.
  • Launching Marketing and Community Engagement Initiatives: Before and after the launch, implement a marketing strategy that targets local dog owners through social media, local partnerships, events, and community engagement efforts to build awareness and anticipation for the opening.
  • Hiring and Training Staff: Recruit, hire, and train a team that will manage the park, ensure safety, provide customer service, and maintain the facilities. Staff should be knowledgeable about dogs and trained in first aid and emergency response.
  • Launch Our Dog Park: Officially open Newton’s Dog Park to the public with a launch event that encourages registrations, memberships, or frequent visitor passes. The launch should create buzz and draw the attention of the target market.
  • Implementing a Feedback Loop with Customers: Establish channels for customer feedback early on to gather insights on park features, services, and overall experience. Use this feedback to make necessary adjustments and improvements to the park and its operations.
  • Reaching Operational Efficiency: Streamline operations to minimize costs and maximize the quality of the customer experience. This includes efficient scheduling of staff, maintenance routines, and managing supply chains for any products sold or used in the park.
  • Achieving $15,000/Month in Revenue: Develop and execute strategies to grow revenue streams, including entry fees, memberships, events, and possibly ancillary services such as dog grooming, training sessions, or a cafe. The goal is to reach a steady revenue of $15,000 per month to support profitability and sustainability.
  • Evaluating Expansion or Additional Services: After stabilizing the business and achieving initial financial goals, evaluate the feasibility of expanding the park or adding new services based on customer demand and market opportunities, ensuring long-term growth and success.

VIII. Management Team

Our management team has the experience and expertise to successfully execute on our business plan.

Management Team Members

Newton’s Dog Park management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Grace Rodriguez, CEO

With a proven track record of leading successful ventures, Grace Rodriguez stands at the helm of Newton’s Dog Park as its esteemed CEO. Her experience is not just limited to managing operations; she has a deep-rooted passion for creating spaces that foster community and animal welfare. Previously, Grace has demonstrated her capability by successfully running a dog park, where she excelled in operations, customer satisfaction, and business growth. Her entrepreneurial spirit coupled with her love for dogs makes her the perfect leader to steer Newton’s Dog Park towards achieving its mission of offering a safe, enjoyable, and engaging environment for dogs and their owners. Grace’s strategic vision and hands-on approach in dealing with both day-to-day operations and long-term planning are invaluable assets to the team.

IX. Financial Plan

Funding requirements/use of funds.

To accomplish our growth goals, Newton’s Dog Park needs $240,000 in funding. Key uses of this funding will be as follows:

Capital Investments
Location Buildout $100,000
Furniture $10,000
Equipment $20,000
Machines $5,000
Computers and Software $3,000
Non Capital Investments
Working Capital $50,000
Initial Rent/Lease $5,000
Staff Salaries for the First 3 Months $30,000
Initial Marketing and Advertising $10,000
Supplies $2,000
Insurance $5,000

Financial Projections

financial projection dog park business plan

5 Year Annual Income Statement

FY 1 FY 2 FY 3 FY 4 FY 5
Revenues
Revenues $1,236,655 $1,339,088 $1,450,004 $1,570,109 $1,700,161
Direct Costs
Direct Costs $489,075 $513,991 $540,176 $567,696 $596,617
Salaries $72,814 $75,023 $77,299 $79,644 $82,060
Marketing Expenses $6,067 $6,251 $6,441 $6,637 $6,838
Rent/Utility Expenses $6,067 $6,251 $6,441 $6,637 $6,838
Other Expenses $12,135 $12,503 $12,883 $13,274 $13,676
Depreciation $27,600 $27,600 $27,600 $27,600 $27,600
Amortization $0 $0 $0 $0 $0
Interest Expense $24,000 $24,000 $24,000 $24,000 $24,000
Net Operating Loss $0 $0 $0 $0 $0
Use of Net Operating Loss $0 $0 $0 $0 $0
Taxable Income $598,895 $673,465 $755,162 $844,620 $942,529
Income Tax Expense $209,613 $235,713 $264,306 $295,617 $329,885
Net Profit Margin (%) 31.5% 32.7% 33.9% 35% 36%

5 Year Annual Balance Sheet

FY 1 FY 2 FY 3 FY 4 FY 5
Cash $462,431 $921,355 $1,432,769 $2,004,608 $2,396,693
Other Current Assets $106,150 $114,942 $124,463 $130,842 $141,680
Intangible Assets $0 $0 $0 $0 $0
Acc Amortization $0 $0 $0 $0 $0
Fixed Assets $138,000 $138,000 $138,000 $138,000 $138,000
Accum Depreciation $27,600 $55,200 $82,800 $110,400 $138,000
Preliminary Exp $0 $0 $0 $0 $0
Current Liabilities $49,700 $52,063 $54,542 $56,157 $58,836
Debt outstanding $240,000 $240,000 $240,000 $240,000 $0
Share Capital $0 $0 $0 $0 $0
Retained earnings $389,281 $827,034 $1,317,890 $1,866,893 $2,479,537

5 Year Annual Cash Flow Statement

FY 1 FY 2 FY 3 FY 4 FY 5
Net Income (Loss) $389,281 $437,752 $490,855 $549,003 $612,644
Change in Working Capital ($56,449) ($6,429) ($7,042) ($4,764) ($8,159)
Plus Depreciation $27,600 $27,600 $27,600 $27,600 $27,600
Plus Amortization $0 $0 $0 $0 $0
Fixed Assets ($138,000) $0 $0 $0 $0
Intangible Assets $0 $0 $0 $0 $0
Cash from Equity $0 $0 $0 $0 $0
Cash from Debt financing $240,000 $0 $0 $0 ($240,000)
Cash at Beginning of Period $0 $462,431 $921,355 $1,432,769 $2,004,608

What Is a Dog Park Business Plan?

A dog park business plan is a document that outlines the strategies you have developed to start and/or grow your dog park business. Among other things, it details information about your industry, customers and competitors to help ensure your company is positioned properly to succeed. Your dog park business plan also assesses how much funding you will need to grow your business and proves, via your financial forecasts, why the business is viable.  

Why You Need a Business Plan for your Dog Park Business

A business plan is required if you are seeking funding for your dog park business. Investors and lenders will review your plan to ensure it meets their criteria before providing you with capital. In addition, a dog park business plan helps you and your team stay focused. It documents the strategies you must follow and gives you financial projections you should strive to achieve and against which you can judge your performance.  

Dog Park Business Plan Template PDF

Download our Dog Park Business Plan PDF to help guide you as you create your business plan for your own dog park business.  

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Table of contents, how to launch a lucrative dog park business.

  • 4 June, 2024

how to start a dog park business

Planning Your Dog Park Business

Before embarking on the journey of starting a dog park business, it’s essential to engage in thorough planning. This involves conducting research and familiarizing yourself with the regulations surrounding dog parks in your area, as well as developing a comprehensive business plan.

Research and Regulations

Researching local regulations and guidelines is the first step in establishing a successful dog park business. Each region may have specific rules and requirements, such as zoning restrictions, permits, and licensing. It is crucial to understand and comply with these regulations to ensure legal operation and avoid any potential issues. For more information on dog park rules and regulations, refer to our article on dog park rules and regulations.

Business Plan Development

Developing a well-structured business plan is essential for the success of your dog park venture. A comprehensive business plan outlines the key aspects of your park, including its features, target market, membership fees, and operating hours. It serves as a roadmap for your business, guiding decision-making and attracting potential investors or lenders. To learn more about creating a robust business plan for your dog park, refer to our article on dog park business plan .

When developing your business plan, consider the following key elements:

Market Analysis: Conduct market research to identify the demand for a dog park in your area. Analyze the demographics, competition, and potential target audience to determine the viability and profitability of your business.

Financial Projections: Create financial projections that include startup costs, operating expenses, revenue forecasts, and a break-even analysis. This will help you understand the financial feasibility of your dog park business and guide your financial planning.

Marketing Strategy: Develop a marketing strategy to attract dog owners to your park. Consider online and offline advertising, community outreach programs, partnerships with local businesses, and social media presence. Engage with the community to build awareness and generate interest in your dog park.

Operations and Management: Outline the day-to-day operations of your dog park, including staffing requirements, maintenance protocols, and safety measures. Create a plan for acquiring necessary equipment and supplies from reliable dog park equipment suppliers.

By conducting thorough research and developing a detailed business plan, you lay the foundation for a successful dog park business. This preparation ensures that you are equipped with the necessary knowledge and strategies to move forward with confidence.

Location Selection

Choosing the right location for your dog park business is a crucial step in ensuring its success. Several factors should be considered when selecting the ideal location for your dog park.

Factors to Consider

When evaluating potential locations for your dog park, it’s important to take into account the following factors:

Proximity to Residential Areas: Look for a location that is easily accessible to dog owners in nearby residential areas. This will increase the convenience and likelihood of people visiting your dog park.

Accessibility: Ensure that the location is easily accessible by both car and foot. Ample parking space should be available to accommodate visitors.

Zoning Regulations: Check the local zoning regulations to ensure that the chosen location is suitable for a dog park business. Some areas may have specific restrictions or requirements that need to be met.

Space Requirements: Consider the size of the property and ensure that it provides enough space to accommodate the desired amenities and play areas for dogs.

Presence of Amenities: Look for a location that has access to amenities such as water sources, waste disposal facilities, and shaded areas. These amenities are essential for the comfort and convenience of both dogs and their owners.

For more information on dog park rules and regulations, visit our article on dog park rules and regulations.

Amenities and Accessibility

In addition to the factors mentioned above, the presence of amenities and the overall accessibility of the location are crucial considerations for a successful dog park business.

Water Sources: Having a reliable water source within the dog park is essential to keep dogs hydrated during their playtime. Consider installing water fountains or providing easily accessible water stations for both dogs and their owners.

Waste Disposal Facilities: Proper waste disposal is vital to maintain a clean and hygienic environment. Ensure that the location has appropriate waste disposal systems and sufficient trash bins strategically placed throughout the park.

Separate Areas for Small and Large Dogs: To cater to dogs of various sizes and temperaments, consider designating separate areas within the park for small and large dogs. This allows for safe and enjoyable playtime for all dogs.

Dog Park Equipment: Enhance the dog park experience by incorporating dog park equipment, such as agility obstacles or dog fire hydrants with misting features. These features can provide additional entertainment and stimulation for the dogs.

For a list of potential dog park equipment suppliers, refer to our article on dog park equipment suppliers.

By carefully considering these factors and ensuring the availability of amenities and accessibility, you can select the perfect location for your dog park business. Remember to comply with all necessary permits and licenses required for operating a dog park in your area. For more information on legal requirements and funding, refer to our article on dog park business plan .

Legal Requirements and Funding

When starting a dog park business, it’s essential to understand the legal requirements and secure proper funding to ensure a successful venture. This section will cover the permits and licenses needed and explore various funding sources.

Permits and Licenses

The specific permits and licenses required for a dog park business may vary depending on your location. However, common requirements typically include:

  • Business licenses: Obtain the necessary licenses at the local or municipal level to legally operate your dog park business.
  • Land use and construction permits: If you are building a new dog park or making substantial modifications to an existing one, you may need permits for land use and construction.
  • Zoning approvals: Ensure that your dog park is compliant with local zoning regulations and obtain any necessary zoning approvals.
  • Animal control permits: Some jurisdictions may require you to obtain animal control permits to ensure the safety and well-being of the dogs visiting your park.
  • Liability insurance: Protect your business and customers by obtaining liability insurance coverage to mitigate potential risks.
  • Health and safety compliance: Comply with health and safety regulations to ensure the well-being of the dogs and visitors to your dog park.

It’s crucial to research and understand the dog park rules and regulations specific to your location. Consult with local authorities, such as the city or county planning department, to ensure that you meet all the necessary legal requirements. For more detailed information on the legal aspects of starting a dog park business, consult our article on dog park rules and regulations.

Funding Sources

Securing funding for your dog park business is an important step in its launch and sustainability. Consider the following funding sources:

  • Personal savings: Utilize your own savings or investments to finance the initial costs of establishing the dog park.
  • Bank loans: Explore loan options from banks or other financial institutions that specialize in small business loans.
  • Crowdfunding: Engage the community and dog lovers by launching a crowdfunding campaign to gather financial support for your dog park.
  • Sponsorships and partnerships: Seek partnerships with local businesses or obtain sponsorships to secure funds or in-kind contributions for your dog park.
  • Grants: Research government or nonprofit organizations that support community projects and offer grants for the development of dog parks.

By blending private investment with community support, you can ensure that funding for your dog park business does not become a hindrance to its progress. For additional insights into funding strategies, consult our article on dog park business plan .

Remember, the success of your dog park business depends on complying with legal requirements and securing the necessary permits and licenses. Additionally, exploring various funding sources will help you finance the development and ongoing operation of your dog park. By following these steps, you can lay a solid foundation for a thriving dog park business.

Ensuring Park Safety

Creating a safe environment is paramount when starting a dog park business. Implementing measures to ensure the safety of both dogs and their owners will contribute to a positive experience for all park visitors. Two essential aspects of park safety are fencing and gating, as well as waste disposal and maintenance.

Fencing and Gating

Proper fencing and gating are crucial components of a dog park to prevent dogs from wandering off and ensure a secure environment. The fence should be sturdy and tall enough to contain even the most active and agile dogs. Additionally, it’s beneficial to have separate areas within the park for small and large dogs to prevent potential conflicts and ensure the safety of smaller breeds.

Clear signage should be placed near the entrance of the park to communicate rules and regulations, such as leash requirements and dog park etiquette. This helps set expectations for park visitors and promotes a safe and respectful environment. Providing contact information for emergency services or park management can be helpful in case of any incidents or emergencies.

Waste Disposal and Maintenance

Maintaining cleanliness and hygiene within the dog park is essential for the health and well-being of both dogs and their owners. Implementing proper waste disposal systems is crucial to keep the park free from droppings and reduce the risk of transmitting parasites or illnesses between animals.

Dog waste stations should be strategically placed throughout the park, equipped with waste bags, disposal areas, and hand sanitizer for owners. Encourage park visitors to clean up after their dogs by placing clear signage and providing easily accessible waste disposal options. Regular maintenance and cleaning of the park, including picking up litter and emptying trash receptacles, are also necessary to ensure a pleasant and safe environment.

By prioritizing fencing and gating as well as waste disposal and maintenance, you can create a dog park that is safe, clean, and enjoyable for all visitors. Remember to consult local dog park rules and regulations to ensure compliance and consider seeking guidance from experienced dog park equipment suppliers to ensure the installation of appropriate safety measures. Implementing these measures will contribute to the success and long-term sustainability of your dog park business.

Overcoming Challenges

Starting a dog park business comes with its fair share of challenges. Overcoming these challenges is essential to successfully launch and operate your dog park. Two key challenges to consider are land acquisition and community engagement.

Land Acquisition

Finding suitable land for your dog park is often one of the most significant challenges. It involves navigating bureaucratic processes and ensuring compliance with zoning requirements and regulations. The land you choose should provide ample space for dogs to play and interact safely ( Desygner ).

To overcome this challenge, it’s important to thoroughly research local regulations and dog park rules and regulations (/dog-park-rules-and-regulations). Identify potential locations that meet the necessary criteria, such as size, accessibility, and proximity to residential areas. Engaging with local government officials and community organizations can help you navigate the process and gain support for your venture.

Community Engagement

Engaging with the community is crucial for the success of your dog park business. Building a strong relationship with the local community creates advocates who will support and promote your dog park. It also helps create a sense of ownership and encourages community members to respect and care for the park.

To engage with the community, consider organizing events and activities that involve dog owners and pet lovers. These can include dog training sessions, adoption drives, and community clean-up days. Utilize social platforms and local media to spread enthusiasm for your dog park business. Engage with community groups, such as dog owner associations and pet-related organizations, to gain their support and involvement in your venture.

By actively involving the community in the planning and development process, you can create a sense of excitement and anticipation. This will not only help overcome initial skepticism but also ensure a strong customer base once the dog park is operational.

Remember, community engagement is an ongoing process. Continuously seek feedback, address concerns, and maintain open lines of communication with the community. This will help foster a positive relationship and ensure the long-term success of your dog park.

By overcoming challenges such as land acquisition and community engagement, you can lay a solid foundation for your dog park business. These efforts will contribute to the overall success of your venture and create a thriving and enjoyable space for dogs and their owners.

Designing a Successful Dog Park

When it comes to starting a dog park business, designing a well-planned and inviting dog park is essential. The design of the park plays a crucial role in creating a community-oriented and engaging environment for both dogs and their owners. In this section, we will explore the key elements to include in the design of a successful dog park and the importance of fostering a community-oriented environment.

Elements to Include

To create an enjoyable and safe space for dogs and their owners, there are several key elements to consider including in the design of your dog park:

Pathways and Rest Areas : Design pathways throughout the park to provide easy access for dog walkers and pet sitters. Include rest areas with benches or shaded spots where owners can take a break while their dogs socialize and play.

Canine Agility Equipment : Incorporating canine agility equipment can enhance the park experience for both dogs and owners. Agility equipment encourages dogs to be physically active and use their natural skills to navigate obstacles. It is particularly appreciated by high-activity breeds such as Shepherds and Beagles, as well as dogs needing encouragement to be active.

Hydration Stations : Hydration stations are essential in dog parks to provide dogs and humans with access to water. Dogs need about an ounce of water per pound of their body weight daily, so it’s important to have easily accessible water fountains throughout the park. Consider installing multiple fountains in larger parks to ensure accessibility.

Dog Socializing Areas : Many dogs enjoy interacting with other canines, so incorporating designated socializing areas can be a great feature of your dog park. These areas can be enhanced with dog park equipment such as dog fire hydrants, which can even include misting features to provide a cool spray of water for dogs to enjoy.

Dog Waste Stations : Maintaining cleanliness and sanitation is crucial in a dog park. Including dog waste stations throughout the park helps to keep the area free from droppings and reduces the risk of transmitting parasites or illnesses between animals. These stations should provide waste bags, disposal areas, and hand sanitizer for owners.

Community-Oriented Environment

In addition to the physical elements, creating a community-oriented environment in your dog park is important for fostering a sense of belonging and engagement. Encourage community involvement by organizing events or meetups for dog owners to connect and share experiences. Consider partnering with local businesses or organizations that offer pet-related services to provide additional resources and opportunities for park visitors.

Building a strong sense of community within the dog park can also involve establishing clear dog park rules and regulations that promote safety and respect among all park users. Effective signage throughout the park can help communicate these rules and guidelines to visitors, ensuring a positive and harmonious experience for everyone.

By incorporating these elements and fostering a community-oriented environment, you can design a successful dog park that attracts dog walkers and pet sitters, and provides a safe and enjoyable space for dogs to play and socialize. Remember to also consider the maintenance and ongoing upkeep of the park to ensure its continued success. For more information on starting a dog park business, refer to our dog park business plan guide.

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indoor dog park business plan

How to Start a Dog Park Business

by David Weedmark

Published on 21 Feb 2020

For anyone who loves to spend time with dogs, a dog day care or dog park can be an ideal business. The cost to start an indoor dog park can range between $10,000 and $20,000 in addition to the cost of leasing a property, so it's not a business you should jump into without first doing some market research.

Profitable Dog Park Ideas

There are essentially three ways to turn a dog park into a business idea. You can walk dogs for a fee, charge a fee for using your own park (either indoor or outdoor) or combine the two by walking dogs in a private park for a fee.

Starting off with a dog-walking service would be the better choice if you are short on capital but have lots of time. There are many people who make a good living doing this. Find out how many dogs you are limited to walking at the same time in your city and then charge an appropriate fee for a daily walk for each dog.

If you want to set up your own private dog park , you will need to buy or lease a building or a plot of land. This could be ideal if there aren't a lot of places in your community where people can bring their dogs. You can also promote it as a dog day care where customers can leave their dogs while they're at work for the day.

Research Your Market First

Before you can start your business, find out what others are charging for services like the ones you plan to offer, including dog walkers, dog day cares and private parks. Ideally, there shouldn't be too many dog day cares or parks in your immediate vicinity already. If there are, you will need to find a way to make your business stand out from them.

Research what level of interest there may be for a private dog park in your area. Stop by the local veterinary clinics, public dog parks and pet stores to talk to people. Look for dog-oriented groups in your city on Facebook and ask people there what they might think of your ideas.

Finally, take a look at what dog-related businesses are doing in other cities . Examine their websites, look at the layouts in pictures and videos they post and jot down the ideas that you can use for your business.

Business Registration and Licensing

You will need to register your business and select a business structure. In most cases, a limited liability company should suffice. It gives you some personal protection from your company in the event that you have debts or get involved in a lawsuit, with less paperwork than what is needed for a corporation. However, you will still need to look into business insurance, including liability insurance.

Make sure you understand the registration and licensing requirements for your business from the state and local government. You will also need to ensure that zoning laws make your dog park permissible at your desired location. In most cases, dogs are allowed indoors provided that food is not being served. However, local laws can vary.

Setting Up Your Dog Park

If your dog park has an outdoor element to it, you will need to ensure it is fenced properly. If a dog should escape from the park, you could be held liable. For an indoor park, you will want to stock it with equipment to keep the dogs and their owners satisfied, including dog park necessities like:

  • Teeter totters
  • Dog waste bags and bins

You will need to make sure that you can charge enough people for the services you offer to legitimize the startup costs and property lease, not to mention your time. This is another reason that researching your local market is vital before making any investments in your dog park business.

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Indoor Dog Park Startup Kit - Business in a Box (BIB)

Fido's Indoor Dog Park offers a Business in a Box (BIB) package to help you open your own indoor dog park with boarding, daycare, pool, grooming, and retail services. Save yourself time, money, and stress by learning from our experience.  Unlike a franchise, you don't pay ongoing royalty fees.  This is a one-time purchase that provides everything you need to plan, setup, market and manage your indoor dog park business. 

Click here to download our brochure.

The Business in a Box was finalized August, 2015.  Since this time, entrepreneurs from six states have purchased the BIB and started their indoor dog park business journey.

Nebraska (2015)

New Jersey (2015)

Connecticut (2016)

Indiana (2016)

Washington (2016)

Arizona (2016)

Wisconsin (2017)

Nevada (2017)

Idaho (2017)

For more information, call 503-927-6898 or send an email to [email protected]

OPEN EVERY DAY, 6:30am-8pm, 4949 SE 25th Avenue • Portland, OR 97202 • PH 503 927-6898 • FX 503 477 6318 • Email • Copyright © 2010, Fido's Indoor Dog Park. All rights reserved.

ProfitableVenture

How to Design a Dog Park [Floor Plan, Bar Layout Included]

By: Author Solomon O'Chucks

Home » Business ideas » Pet Industry » Dog Park

Although housing developments in the United States are steadily witnessing good expansions, industry reports have it that lot sizes are reducing drastically and this comes with numerous negative effects.

Communities are looking to build and sustain good neighborhoods with higher population density and smaller yards, but we quickly forget that dog parks are very valuable because of the relative lack of green space for dogs to enjoy.

Dog parks are vital for dogs who require off-leash areas to play and exercise. These parks make it possible for dogs to embrace their instincts, ensure that they can stay calm and comfortable around other dogs and people, and enjoy the freedom to run and burn off excess energy.

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Steps to Design a Dog Park

Just like every other construction project, you need to consider a whole lot of factors when looking to design a viable dog park. Although these factors are pertinent and will most often vary, below are notable steps to guide you through the design process.

1. Research and Planning

To ensure you come up with a valuable design that will suit the needs of your visitors and their canine buddies, you will first want to carry out extensive research, particularly on existing dog parks in your area. Don’t forget to take into account the size of the park as related to the community’s population and dog ownership.

2. Site Selection

Do not underestimate the importance of the right site for your dog park. You must opt for a location that has ample space, most ideally away from residential areas to limit noise.

You will also want to ensure that the location you choose has the right accessibility for all community members, especially those with disabilities.

3. Legal and Regulatory Compliance

It is recommended that you understand all you can regarding your local regulations while also acquiring every relevant permit needed to design and develop a dog park . It is also essential you adhere to all safety standards, zoning laws, as well dog park-related environmental regulations.

4. Designing the Layout

This is where you come up with the actual layout for your dog park. It is recommended you share the park into specific areas for varying dog sizes or play styles.

In this modern age, it is recommended you inculcate features such as agility courses, open spaces, and shaded areas. Don’t forget to plan for separate entrances as well as exit gates to limit congestion.

5. Fencing and Security

Regardless of how beautiful they are, dogs are known to be adventurous and daring. Owing to that, ensure to put in place well-secured fencing to be certain that dogs won’t escape and to guarantee the safety of park users. You might want to install double-gated entry points to make sure dogs won’t bolt when entering or exiting.

6. Surfacing

Nothing speaks volumes for your park like the right features and proper surfacing. To save on future unnecessary expenses, you should go with a durable and comfortable surface, such as grass , turf, or specialized dog-friendly flooring. Don’t forget the need for the right drainage to avoid waterlogging and mud issues.

7. Amenities and Furnishings

You will want to install benches, waste disposal stations, as well as water fountains for dog owners. Consider putting in place agility equipment such as tunnels, ramps, and jumps for dogs’ physical stimulation.

Don’t also forget to plant dog-friendly vegetation that is safe for pets and boosts the aesthetics of the park. Also, establish shaded areas leveraging trees or structures to shield dogs and owners from the scorching heat.

8. Signage and Information

This is a very important feature of any dog park. You will want to install easy-to-read signage with park rules, safety guidelines, as well as contact information. You should also include a map of the park layout for visitors’ convenience.

It is also recommended you leverage the opportunity to come up with a regular maintenance schedule for cleaning, repairing, and inspecting the park.

Tips for Dog Park Floor Plan and Bar Layout

Choose the right location.

Just as it was noted above, you cannot afford to underestimate the importance of the right site for your dog park. Normally, it is recommended you opt for an area situated off to the side or better still towards the back of the community.

Aside from that, you will also want your park to be easily accessible to all residents. Don’t forget that dog parks do not necessarily have to be situated in perfectly flat areas.

Most often, the areas in your community that are not ideal for other uses due to a slope or rough terrain can prove useful or the best choice for your park because it ensures you can make more use of available land.

Fencing the park and a properly designed entrance

While dog parks are known to vary in their designs, all of them tend to possess two basic structures: fencing around the perimeter and a staged entrance area.

In the United States, fences of dog parks are known to be around five feet or higher to ensure that dogs won’t scale over it. If the resources are available, you should opt for a double gate system.

Keep in mind that this area will ensure anyone coming to the park will have some breathing room as they enter and exit with their pet. Aside from that, it also ensures that dogs won’t run off or escape.

Gate placement

Keep in mind that corners of the dog park are not ideal, as it makes it easier for new dogs coming into the park to be cornered by other dogs as they get into the park or greet each other.

Among dogs, this can be quite disastrous and can easily lead to dog fights. Most often, it is recommended you mount the gate along the side of the park to ensure that dogs have a full 180 degrees to enter.

Small dogs and large dogs

A good number of dog parks tend to possess two separate sections. One side can be for small dogs (usually less than 35 pounds) and the other for the bigger ones.

Keep in mind that these areas are entirely separate enclosures to ensure that the dogs cannot mix. It is also recommended you erect a double gate that can be used to enter either section of the dog park, saving you money on building costs.

Same as with every other park, your dog park will need to have specific rules and regulations, including contact information for authorities and management appended on a permanent sign on the entry gate to the park. Some of the dog park rules and regulations you will want to consider include:

  • This park is for the use of residents and their pets only
  • Dogs in heat are not permitted inside the park.
  • No food, beverages, glass, sharp objects, or weapons are allowed to be brought into the park.
  • Owners are expected to carry a leash at all times. Dogs will also need to be leashed before entering and before leaving the park.
  • Owners are always responsible for their dogs and any injuries caused by them.
  • Animals with a history of aggressive behavior are not allowed.
  • Puppies will need to be at least four months old to be allowed into the park
  • Owners shouldn’t for any reason leave their dogs unattended or allowed out of sight.
  • Children under the age of 16 are not allowed into the park unless actively supervised by a parent.
  • Puppies and dogs will have to be properly licensed, inoculated, and healthy to use the park.
  • Animals should don a collar and ID tags at all times.
  • Owners are expected to clean up after their dogs.
  • Dogs that exhibit aggression towards people or other animals will immediately be removed from the park.
  • Violators will be immediately removed from the park and suspended from park privileges.

Park seating

You cannot have a dog park without the right seating and benches. Note that dog parks for decades have proven to be one of the best places to meet fellow residents and socialize.

As such, you will find that the benches are most often placed together. Don’t also forget to take into consideration the seating material. Aluminum is an ideal choice as it is less affected by weather and doesn’t absorb odor like wood will.

Factors to Consider When Designing a Dog Park

Location and accessibility.

Don’t underestimate the importance of accessibility for pet owners. Ensure that the park is conveniently located within the community and can be reached easily by foot or car.

Take into account other factors like its closeness to residential areas, parking facilities, as well as public transportation options. Aside from that, the park will also need to be located away from busy roads to limit noise and safety concerns.

Size and Layout

Keep in mind that a properly designed park needs to feature separate areas for small, medium, and large dogs, especially since it will limit or entirely avoid potential conflicts and guarantee a safe environment for all furry visitors.

You will also want ample space to ensure that dogs can run, play, and socialize. Don’t forget the need for good landscaping as it will provide shade, agility elements, as well as seating for pet owners.

Safety Measures

Install secure fencing all around the perimeter to ensure that dogs won’t escape, and be certain to go for materials that are durable and resistant to chewing.

Just as was noted above, you might want to leverage or install double-gated entry points to reduce the possibility of dogs bolting when getting into or exiting the park.

Be sure to sample your park rules and regulations to ensure that pet owners understand what they are expected to do, like cleaning up after their pets and making sure vaccinations are up-to-date.

Amenities and Enrichment

To design a dog park that attracts the right crowd, you will have to offer more than just the basics. Keep in mind that putting in place amenities and enrichment features further boosts the overall experience for both the dogs and their owners.

Consider enrichment elements like agility courses, dog-friendly structures, as well as designated digging areas, since they all work to stimulate dogs mentally and physically.

Maintenance and Sustainability

To guarantee the longevity and success of a dog park, you will want to come out with a well-detailed maintenance plan. You need to steadily inspect fencing, amenities, and grounds for wear and tear and quickly deal with any issues. Put in place efficient waste management systems to ensure that the park is always clean and odor-free.

In addition, take into account sustainable design practices that can include using eco-friendly materials, leveraging drought-resistant landscaping, as well as installing energy-efficient lighting to limit environmental impact.

Moscow, Idaho

This fenced, off-leash dog park is located next to the Humane Society of the Palouse on White Avenue. Originally a “landfill” area, the City decided to clean out the site and develop it into a great place to bring your dog for some off-leash fun! 1 Acre.

2019 White Ave., Moscow, ID 83843

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Indoor Playground

Indoor Playground 304

BUSINESS PLAN

KID'S WORLD

5568 Inkster Rd. Livonia, MI 48150

This plan is for a franchised indoor children's playground. The plan provides a good description of possible competitors and the methods that will be used to achieve a competitive advantage in this industry.

EXECUTIVE SUMMARY

Mission and strategy, competitive analysis, pricing, profitability, and break even, management and staffing, contingency planning, financial projections.

A market opportunity exists in the Western Detroit area to service children aged 13 and under with a supervised indoor exercise and recreation facility. Market research shows that children often do not get the required amount of exercise to maintain a healthy lifestyle. Indoor playgrounds provide an outlet for active children during inclement weather or when the temperature is too hot or cold for outdoor play. Furthermore, parents want an environment for their children to play without harsh language and an arcade atmosphere.

Proposed Business

Kid's World will provide a safe, clean, and stimulating environment for physically active children aged 13 and under to play in and explore. Kid's World's supervised, visually open play area will ensure children's safety, while challenging them to reach, think, interact, explore, and have fun. The store will require approximately 14,000 square feet, consisting of a giant 5,000 square foot play structure for children over the age of 4, a smaller play area for toddlers under the age of 4, an area with several interactive skill games, a snack bar with seating to accommodate 100 to 125 persons at a time, and a merchandise and souvenir stand. Both play areas have soft indoor playpark equipment with extensive padding and no sharp edges. Furthermore, the game area will not offer video games, pinball-type games or games with a violent theme. For family celebrations, such as birthdays and special occasions, Kid's World will offer private party rooms hosted by trained staff to provide a child everything he/she would want in a birthday - several hours of supervised fun on the play structures, cake and ice cream, prizes, food and beverage, and game tokens. Kid's World desires playtime to be as rewarding for the parents as it is for the children, as they spend time together.

Kid's World will be located in a strip shopping center on the west side of Livonia. Within a twenty-five mile drive from this location, there are at least 49,000 children at or under the age of 14, living in a household with average annual income exceeding $45,000. Furthermore, the Census Bureau expects the communities of Canton, Plymouth and South Lyon to be the fastest growing regions of Wayne and Washtenaw Counties over the next decade.

The business will be operated on a full-time basis by a manager, Alice Cushaw, who has had over 3 years of restaurant management experience. In addition, all member-managers will actively assist in the management of the business on a part-time basis.

Loan Request

The owners are requesting a loan to fund a portion of the start-up costs and inventory. They are also requesting a line of credit in the amount of $500,000. The owners are contributing $35,000 to the business venture and various investors are contributing another $40,000. The money will be needed in equal monthly installments commencing three months prior to opening and will be repaid in a steady manner from available operating cash flows. The loan will be entirely repaid within five years after opening with payments beginning three months after opening.

Kid's World is a diversified destination family entertainment center combining recreation, entertainment, and restaurant facilities that creates substantial drawing power. Kid's World's basic focus is children's play and fitness for 1 to 13 year old children. At Kid's World, these activities have been packaged into a safe, clean, climate-controlled, supervised environment for children aged 13 and under to exercise and have fun while stimulating their imagination and challenging them physically. The indoor playpark is based on the premise that if you set a large number of children inside a safe, yet challenging, imaginative soft playground area, they are going to have fun. They are also going to develop basic motor skills, social skills, muscle tone, and self-confidence. Furthermore, the parents can enjoy hours of close interaction with their children in a safe, secure, and stimulating environment.

Currently, there are no other indoor children playgrounds in the Western Detroit area. In addition, there are relatively few alternatives for children's birthday parties. Kid's World will be able to immediately fill this void in the market by providing extensive recreation, entertainment, and restaurant facilities for children to play in and explore. Within 1 year, Kid's World will be known as the primary recreation facility for children aged 1 to 13 and the destination of choice for children to enjoy birthday parties with friends. Kid's World's safe, secure, and clean environment will assure parents while providing opportunities for their children to have fun in a stimulating environment.

Kid's World will base its appeal on providing a stimulating indoor environment for children to play in, while adhering to the strictest quality control standards emphasizing excellence in service, safety, security, food quality and value, sanitation, cleanliness, and creativity. Furthermore, Kid's World is dedicated to the continual development of creative themes and interactive designs that have entertainment and educational value that will ensure Kid's World's competitiveness and success in the family entertainment market years into the future.

Indoor playgrounds serve an increasing need in our society. Studies show that American children are less active and less fit than they were even five years ago, probably due to increasing time in front of television sets and high calorie-high fat diets. Studies have also shown that less active children are more likely to be overweight, and overweight children have a greater propensity to become overweight adults. As people have become more aware of the healthy aspects of their lifestyles, enrollment in adult health clubs, aerobic exercise, recreational activities, and attention to nutrition has increased dramatically. This trend will continue as parents attempt to provide a healthier lifestyle for their children. Another area of parental concern is their children's safety. Nationally, as well as locally, concern for the physical well-being of children has created a further need for a safe play environment. This concern shows no sign of diminishing.

While it is difficult to determine the size of the indoor playground industry, there are currently about 49 million children 12 years old or younger in the United States and this figure is expected to rise to 51 million by the year 2000, according to the Bureau of Census. There are approximately 26 million households with children younger than 18 years of age, who spend about $1,800 per year on family entertainment or $46 billion annually. Per-capita expenditures on children's activities are likely to rise as families with children spend a larger percentage of their income on recreation. Children aged 4-12 spent, from their own income, $6 billion in 1989, up 41% from 1984. This increase in discretionary income is coming from several factors. First, the increase in dual income families has provided for more discretionary income to be spent on children. Second, women are having children later as evidenced by the rising birth rate among women in their thirties. Third, per-capita family income is increasing and families are choosing to take wealth increases in the form of leisure. Last, grandparents are living longer and spending more on their grandchildren. Based on these demographics, industry analysts believe that there is room for about 600 store locations in primary markets throughout the United States and an additional 200-300 in secondary markets.

The Customer Need and the Target Customer

With the recent concerns over child safety on outdoor playground equipment, many schools have elected to remove their playground equipment entirely. Parents are more aware than ever before over the safety and security of their children's play areas. Consequently, a safe, supervised indoor play area will enable parents to relax while their children enjoy playing in and exploring the soft indoor playpark.

Kid's World will target children aged 13 and under within a 25 minute drive of Western Livonia, comprising about 250,000 people of which at least 49,000 are under the age of 13. Within a five-mile radius of Livonia, census information indicates there are approximately 23,000 children aged 13 and under, living in a household with an average annual income exceeding $55,000. These customers will form Kid's World's primary market base. Kid's World will also target children in the outlying regions of Oakland County.

Product Description

Kid's World is geared for children 13 years old or younger who desire an imaginative, challenging, and fun environment in which to exercise, play, and explore. For safety, children must be accompanied by an adult in order to be admitted and adults are not permitted to enter without a child. Furthermore, each person admitted to the playpark will receive a color-coded wristband identifying him/her with rest of the party. To further promote security, each person's wristband will only be removed when the entire party is present together at the exit desk. Trained staff will supervise the play areas at all times to ensure adherence to the playpark rules while assisting the children to maximize their enjoyment of the facilities.

There will be several play areas within Kid's World; the largest, a 5,000 square foot structure targeting children aged 4 and over, will be comprised of a series of colorful tubes, slides, ball baths, climbing structures, air and water trampolines, obstacle courses, ramps, and stairs. A smaller play area will cater to toddlers and consist of cushions, ramps, a small ball bin, and toys. To encourage active participation by parents, all play areas will have a visually open design with comfortable rest areas in full view of the play structures.

Kid's World will also be equipped with a smaller area of interactive games designed to promote eye and hand coordination. This area will include the "Magic Keyboard", a unique piece of musical play equipment specifically designed for Kid's World. Parents and children can also play several games of skill to win tickets redeemable for prizes. There will also be a snack bar with seating for 100 to 125 customers at a time. It will serve food and beverages that appeal to children and parents such as pizza, hot dogs, salads, sandwiches, popcorn, pop, fruit juice, cappuccino, cake, and ice cream. In addition, Kid's World will have a merchandise counter with small souvenirs emblazoned with the Kid's World logo such as T-shirts, sweaters, and hats.

Kid's World will have six private party rooms and will offer packages for birthdays and other special occasions hosted by staff members, significantly reducing the hassle and mess for parents. The design of the rooms will allow for groups as large as 30 children at a time. For family celebrations, Kid's World will offer three birthday packages for parties of 8 of more, consisting of a two hour limited time of play, birthday cake and ice cream, free game tokens, and, depending on the type of package, pizza or hot dogs, party favors for the guests, and a special gift for the birthday child.

Strategy and Approach to the Market

Kid's World will strive to appeal to value-oriented customers who desire hours of entertainment for their children at reasonable prices. Kid's World will be competitively priced at $4.95 for unlimited play which is comparable to other forms of entertainment. However, the distinguishing feature of Kid's World will be its clean, safe, secure environment for children to play in while parents can either relax or participate in their child's activities.

Advertising

Kid's World will reach its target customers through such advertising media as local newspapers, local television, and direct mail campaigns. Local television advertising has been found to be very effective in reaching the target market segment of children 13 and under, so we will focus our efforts here. The advertising and promotion campaign will be funded through operating cash flows and will build upon the close proximity of the store to the corporate location. In addition, the franchisor will assist its franchisees through regional advertising programs to obtain synergy among all franchisees within the region. Kid's World will initially promote its concept through a Grand Opening advertisement campaign employing an invitation-only free evening for local business and government leaders and their children as well as local radio coverage. The franchisor will assist in the preparation of initial advertising and scheduling of promotions.

Location Characteristics

The nature and location of Kid World's business will support both destination and walk-in shopping. Since the majority of birthday parties are pre-planned events, the exact location of Kid's World with respect to major shopping centers is not as critical as it is in other retail businesses. However, parents shopping with their children may desire an outlet for their children in the form of indoor exercise and recreation. Once customers are aware of Kid's World's location, they will return again and again. Figures from the corporate store indicate an average return rate of seven times per child per year. Our financial forecasts conservatively project 1/3 less. The awareness of our location will develop over several months due to advertising, word of mouth, and simple observation by shoppers in the area.

Kid's World will locate in Livonia on Inkster Road in the Heights Shopping Center. This shopping center consists of two separate buildings totaling 73,480 square feet of rental space and contains both destination and walk-by businesses. The center is primarily focused on providing family related services to the local community. Within three miles of this location, census data indicates there are 9,854 children under the age of 14. Within five miles of this location, census data indicates there are 23,061 children under the age of 14. In addition, there are several elementary schools located in the proximity, a day care center directly behind the shopping center, and many other child-related businesses within a few blocks along Inkster Rd. in either direction.

To better ensure Kid's World's success, the franchisor, Kid's World, Inc., must approve the final location and subject it to their proprietary location requirements.

Unique Market Characteristics

Weekly usage patterns.

With 60 to 65% of the costs fixed and only 35 to 40% variable, even small increases in capacity utilization can have a major impact on profitability. With a projected 60% of revenue coming from Friday through Sunday, it will be important to effectively utilize capacity on weekdays. Kid's World will provide the following services to increase customer usage during this period: group discounts to day care centers, churches, community groups, schools, etc., a frequent user card to encourage repeat customer visits, nutritious food to attract health-conscious families, and promoting birthday parties during the week.

Seasonality

The winter months are usually the strongest, and the beginning of spring and the beginning of the school year are usually the weakest periods. On a quarterly basis, Kid's World's best quarter should be the first, followed by the third, second, and fourth quarters. To manage this seasonal variation in customer demand, management will actively monitor weekly sales volume and maintain a flexible staffing arrangement.

Threat of a Fad Product

There is a risk that children may tire of the concept of indoor padded playgrounds. To keep the concept fresh, Kid's World will strive to introduce new play equipment, skill games, and/or new marketing concepts annually. In addition, the franchisor is committed to ongoing research and development in the area of child interaction and stimulation through consultation with staff child psychologists.

Safety/Liability Concerns

To reduce the potential for injuries and lawsuits, Kid's World will employ every means possible to protect children from hurting themselves on the play equipment. Kid's World will only utilize the softest and most extensively-padded equipment in the industry. Furthermore, Kid's World will employ trained staff to continuously monitor each play area and enforce the rules of the playpark. The playpark will be designed to provide parental viewing on all sides and at all times. Parents will also be encouraged to play in the equipment with their children (knee pads will be available for a nominal charge.) In addition, security wristbands will be issued to each person upon entering to ensure the child's safety and prohibit stranger abduction of children. Strict security measures will be observed at all times. Kid's World will carry a $1 million per occurrence liability insurance policy in the event of lawsuit.

Nature of Competition

Competition in the children's recreation and entertainment industry consists of a highly diverse group of children's activities, including television, libraries, YMCA's, health clubs, parks and other recreation centers, movies, the zoo, and related activities. All of these activities provide for enjoyment by both the parents and the children. However, an indoor playground offers a safe, clean indoor environment for physical activity that is specifically designed for children. It provides children with the security and the skill development opportunities that parents desire.

The indoor playground industry is relatively new. Among the existing players in the indoor playground industry, competition is fragmented. The only company with a strong national presence is Surprise Land, possessing over 250 store locations across the United States, Canada, Mexico, and Europe. A significant threat also exists from Connell Corporation, which has started an indoor playground concept of its own, Jungle Play. Although Jungle Play is still in a testing phase, Connell's has the resources and experience to expand its concept rapidly. In addition, there are numerous regional players with fewer than 10 stores across the nation, although relatively few of them are actively seeking franchisees.

Presently, there are no indoor children's playgrounds operating in the Livonia area. Within a 25 minute drive from Livonia are the following primary competitors to Kid's World:

Indoor Playground: Kid's World

Competitor Major Strength Major Weakness
Captain Sam's Pizza Videogames Restaurant focus
Surprise Land Large play structure Congested/chaotic
Jungle Play Name recognition
Kidville Separate toddler area

Competitive Advantage

After reviewing the characteristics and environment of each of the above competitors, we believe that Kid's World offers several advantages over the existing competitors. First, Kid's World offers the lowest admission price, charging $4.95 per child, of any establishment dedicated to providing an extensive indoor playground. Second, Kid's World encourages parents to participate in their children's recreational activities through a careful layout of the playpark which ensures high visibility of the play areas and close proximity for the parents. Third, Kid's World is the only indoor playground operator that provides such unique play equipment as the Magic Keyboard, an air mattress, and games of skill that are specifically designed to promote child development. Fourth, Kid's World goes to extra lengths to ensure the safety and security of the environment by providing such extras as CPR certification for all employees of a certain level, video monitors of the entire playpark, and strictly controlling the entrances and exits to Kid's World. Last, with the corporate Kid's World location being so close to Michigan, name recognition should be high, as many of the potential customers have already been to the existing Kid's World location.

Analysis of Competitors

The following section briefly discusses each competitor's market position, strategy, and unique operating characteristics.

Captain Sam's

Captain Sam's primary focus is on an extensive array of video games, mini-rides, interactive skill games, a puppet show, and food. Although it has a small playpark area for toddlers, Captain Sam's is primarily dedicated to food service and games. Consequently, it serves as a destination business for pre-planned visits, centered around its food service for family outings and birthday parties. It is an open layout with more windows than other children's entertainment centers and has the atmosphere of a large noisy cafeteria. It charges no entry fee, but maintains high prices for its pizza, ice cream, and beverages. Catering more to parents, the Ypsilanti location allows smoking and serves alcoholic beverages along with pizza, hot dogs, and nachos. It does not instill a sense of security for the parents, nor does it provide the challenging and stimulating environment that children desire.

Surprise Land

With over 250 fun centers in operation as of April 1994, Surprise Land is the largest operator of indoor playgrounds for children. The company was founded in 1990 and began its early growth through franchising. In 1993, Reeves Entertainment acquired 20.1% of Surprise Land's shares with an option to purchase additional shares up to a 51% interest in the company. In order to sustain market leadership and pre-empt competitive threats, Surprise Land has adopted an aggressive expansion campaign with the goal of securing what they feel are the best locations across the country. Specifically, Surprise Land plans on opening 90-100 domestic fun centers a year and franchisees are expected to open another 100 in 1994, the majority of which will be opened by Reeves Entertainment. At this rate, they will have an estimated 360-400 stores by the end of this year and 600 by 1996. This rapid expansion is evidence of the acceptance of this concept by both children and adults. To complete this aggressive plan, Surprise Land has adopted a regional organizational structure and invested in systems to operate and maintain a chain with hundreds of stores in many markets.

In October, 1993, Surprise Land entered the Detroit market by opening its first store location in Warren (east side of Detroit), followed by additional locations in Taylor (downriver area), Plymouth (western suburb), Farmington Hills (northern suburb). Surprise Land has future plans for an additional locations in the metro-Detroit area, including Troy, Novi, and Ann Arbor. In addition, Surprise Land is planning to locate in such outstate areas as Flint, Lansing, Traverse City and Saginaw.

Surprise Land is similar in concept to Kid's World in that it provides a controlled environment for children to play in and explore with their parents. It consists of the Menster-Zone, a 3,000 to 4,000 square foot play area for children aged 4 to 12, the Tiny-Zone, a smaller play area for toddlers, an area of interactive skill games, five or six party rooms, and a snack bar serving foods such as pizza, hot dogs, popcorn, and ice cream. In addition, Surprise Land provides a quiet room for parents who wish to let their children enjoy the play areas unattended.

The primary difference between Surprise Land and Kid's World is the emphasis on a safe, clean, secure atmosphere as well as the level of encouraged interaction between child and parent. While Surprise Land promotes the safety and security aspects of its play areas, it's easier for children to leave the premises unnoticed and it allows adults to tour the facilities unescorted. Furthermore, the snack bar seating is usually located in the center of the play space, leading to sticky floors, congested walkways, and visible food wrappers next to trash dispensers in every interior corner of the playpark. The play structure at Surprise Land is contained in a smaller area than Kid's World and is typically placed in a corner of the facility. This can lead to heavy congestion in the play area during peak hours, a restriction of airflow throughout the playpark, and a general lack of incentive for parents to interact with their children. Kid's World's play structure is located in the center of the room with benches provided on the walls surrounding the structure, promoting visibility at all times by the parents and staff monitors and encouraging parent/child interaction.

Jungle Play

A subsidiary of Connell Corporation, Jungle Play started in 1991 and has since grown to approximately 40 locations nationwide. Connell's plans for Jungle Play include a steady but cautious introduction of new stores located primarily in major market areas. In the Detroit area, Jungle Play outlets are located in Southfield, Dearborn Heights, and Redford Township. Connell's usually builds free-standing structures on land located adjacent to major shopping malls. Therefore, it is likely that Jungle Play may be looking at the available real estate on the exterior of Novi Mall for future expansion. If Jungle Play were to locate in Novi they could represent formidable competition for Kid's World. However, the strong demographics of this area suggest that it could support 3 or more children's indoor play facilities.

Jungle Play is similar in concept to Kid's World and Surprise Land in that it provides a safe, secure, clean, and stimulating environment for children to play in. Jungle Play is somewhat larger in size than Kid's World. Unlike Surprise Land, Jungle Play's play structure is designed to promote parent/child interaction. Jungle Play is particularly adept at providing birthday services by including such extras as a name board to alert all customers of the day's birthday children, a cart for transporting birthday gifts, and extremely friendly and courteous staff. Jungle Play obtains additional business by giving discounts during non-peak hours, allowing groups to rent the facility after-hours, and promoting such activities as overnight lock-ins, fund raisers, and school fieldtrips.

Kidville opened its first and only location this past March in Garden City and has since expressed interest in franchising its concept. Similar in size and appearance to Surprise Land, Kidville offers a multi-level play-park complete with treeforts and slides for children over 4 and a separate play area for children under the age of 4. It is similar in concept to Surprise Land, Jungle Play, and Kid's World, but it does not represent a formidable threat since it has not yet decided to expand via franchising or additional corporate locations.

Kid's World will derive its sales revenues from admissions, games of skill, restaurant/snack bar operations, birthday party packages, and gift shop and souvenir sales. A detailed description of each component of revenue is provided below.

Admissions/Games

Admission fees will be $4.95 per child (ages 1-17) which includes unlimited play in all of the play areas. Adults will be admitted free of charge and encouraged to play in the play areas with their children. This price compares favorably to other forms of family entertainment such as movies where both adults and children must pay admission. The goal of Kid's World is for a visit to the playpark to become a regular family event. Reflecting this goal, a frequent user card will enable a customer to receive discounts off future admissions to Kid's World after a specified number of paid admissions to the playpark. Statistics from the corporate location show the average child returning seven times per year. In addition, Kid's World will offer group discounts for groups of 12 or more at $3.95 per person to encourage day care centers, youth group activities, and summer camps to visit the playpark. For larger groups of 30 or more children, Kid's World offers a special package at $5.00 per child that includes unlimited play in the playpark, two game tokens per child, a slice of pizza or a hot dog, and a beverage.

The 125 person capacity snack bar will offer food products that appeal to both children and parents alike. It will offer traditional children's favorites such as pizza, hot dogs, and popcorn as shown below on a sample menu:

Indoor Playground: Kid's World

10" Small Pizza with 1 Item $4.99
14" Large Pizza with 1 Item $7.99
18" by 12" Pan Pizza with 1 Item $9.99
#1:2 Small 10" Pizzas with 1 Item and 2 Large Beverages $10.99
#2: 1 18" by 12" Party Pan Pizza with 1 Item and 2 Large Beverages $11.49
#3: 2 Large 14" Pizzas with 1 Item and 4 Large Beverages $16.99
Garden Salad $2.50
Chef Salad $3.00
Hot Dogs $1.30
Popcorn $0.50
Chips $0.70
Ice Cream Bars $0.70
Pepsi Products, Root Beer, Fruit Punch, Lemonade, Milk, Juice, Coffee, Cappuccino

Birthday Party Packages

For family celebrations Kid Kingdom will offer three birthday packages for parties of 8 of more, consisting of a two hour limited time of play, birthday cake and ice cream, free game tokens, and, depending on the type of package, pizza or hot dogs and a special gift for the birthday child. The three birthday packages offered include the following:

έ Regal Celebration $7.95 per child Three game tokens per child Invitations/Balloons Nine-inch double layer cake Pop/punch Ice cream

έ Supreme Celebration $8.95 per child Three game tokens per child Invitations/Balloons Half-sheet cake Pop/punch Ice cream Pizza or hot dogs Special Kid Kingdom gift for the birthday child

"Supreme "Theme" Celebration $10.95-$12.95 per child Includes all items in Supreme Celebration, plus: Special theme gifts for all children in the party Custom decorated half-sheet cake

Gift Shop/Souvenirs

The gift shop will contain various souvenir merchandise available for sale such as T-shirts, hats, sweaters, and wristbands with the Kid Kingdom logo. The gift shop will also provide various prizes and gifts for children to redeem with tickets received from completing the games of skill.

Indoor Playground: Kid's World

Source Revenue % of Total
Admissions 279,002 28%
Games 225,456 23%
Snack Bar 300,608 30%
Birthday Parties 131,240 14%
Gifts/Souvenirs 39,455 4%
Misc. 10,800 1%
$986,561
or $82,213/month
100%

Break-Even Analysis

Projected fixed costs for an average month include the following:

Indoor Playground: Kid's World

Rent 8,750
Utilities 2,083
Insurance 1,400
Maintenance 2,060
Taxes 1,458
Depreciation 6,700
Advertising 3,335
Interest 1,000
Salaries 24,133
$50,919

Hence, at a projected gross margin of 78% (contribution margin of 83% less franchise fees of 5% of sales) monthly break-even volume is:

$50,919/.78 = $65,281 or 4,340 visits per month

Per the attached financial projections, break-even is projected to be achieved at a monthly revenue level of $65,281. Given our revenue forecasts of $82,213 per month, it appears that we will be able to exceed break-even revenue levels at significantly less volume. Competitive assessment suggests that indoor playgrounds of comparable size and scope typically exceed the break-even monthly sales level within the first month after opening.

Hours of Operation

Initially, store operating hours will be from 10 AM to 9 PM Monday through Thursday, 10 AM to 10 PM Friday and Saturday, and 12 PM to 6 PM on Sunday.

Sources of Inputs

Indoor Playground: Kid's World

ParkPlay, Inc. Playpark equipment/toddler equipment
Simmons, Inc. Playpark equipment
Nisco, Inc. Gaming equipment
Liveball, Inc. Gaming equipment
Springwall, Inc. Gaming equipment
Lyons & Associates Magic Keyboard
Okemos Food Equipment Co. Restaurant equipment, furniture, party rooms
Symtec Restaurant supplies (includes pizza ingredients)
Best Cola Soft drinks, punches, juices
Livewire Computers Computer software package
TNB Computer hardware

Indoor Playground: Kid's World

Equipment 397,000
Leasehold Improvements 30,000
Lease—first month's rent 8,750
Lease—security deposit 8,750
Insurance (6 mos.) 7,500
Legal/accounting fees 2,000
Licenses and permits 1,500
Training 2,500
Architect 3,500
Uniforms 1,500
Misc. (unanticipated) 14,000
$475,000
Franchise fee 30,000
Inventory 7,500
Working Capital 50,000
$564,500

Description of Cost Items

We have identified a prospective rental location of 14,000 square feet and have negotiated a ten-year lease with one ten-year optional extension. The rental payment schedule is as follows:

Indoor Playground: Kid's World

$7.50/sq.ft. $8.00/sq.ft.
$8.50/sq.ft. $9.00/sq.ft.
$9.50/sq.ft. $10.00/sq.ft.

The terms of this lease call for a one month's rent security deposit. Per agreement with the prospective landlord, our first ninety days of occupancy will be free of rent. We anticipate the first thirty days of that period will be devoted to equipment set-up and staff training, hence we estimate approximately sixty days after opening as the date the first rental payment will be due. The lease does not contain a percentage rent clause based on achievement of certain sales levels.

Leasehold Improvements

The majority of leasehold improvements will be completed by the landlord prior to our occupancy. These include painted outer walls, carpeted and/or tiled flooring, acoustical tile drop ceiling with recessed flourescent lighting, two restrooms, and a manager's office. Items we have budgeted for include: party room construction (estimated by landlord at $10,000), signage - an exterior facade sign, an interior neon sign, and an exterior sign for the shopping center's pylon sign [estimated at $15,000), front entry desk and counter-tops (estimated by franchisor at $9,000), and wall decorations, decorative lighting, party room decoration, storage room shelving and lockers, workshop/game repair room, and miscellaneous items (total budget of $11,000).

Fixtures and Equipment

In addition to the leasehold improvements, we have budgeted $50,000 for restaurant fixtures and furnishings. These include pizza ovens, refrigeration units, beverage dispensers, sinks, countertops, tables and bench seats, and storage shelving. The two most significant equipment expenditures are the main playpark structure (including the toddler play structure) and the various games of skill. The total cost of the playpark structure has been budgeted at $220,000 and depends on many factors, including its overall size, configuration, and complexity. The franchisor has developed several playpark layouts to accomodate the unique characteristics of our rental space. Preliminary estimates from two indoor playground manufacturers have been in the range of $175,000 - $200,000 for the entire playpark structure. Typically, 50% of the total purchase price is due upon ordering the equipment and the remaining 50% is due upon shipment. Lead-time for playpark equipment has been estimated at 7-8 weeks. The total cost of the games of skill has been budgeted at $75,000. The franchisor has developed an extensive list of pre-approved games of skill to select from, most individual games priced between $2,000 and $5,000 each. Most game equipment companies also require 50% down when ordering and the remaining 50% upon shipment with an estimated lead-time of 4-6 weeks. We have also budgeted $15,000 for computer hardware, $5,000 for the franchisor's software programs, and $5,000 for miscellaneous office equipment, such as a copy machine, fax machine, public address system, and telephones.

Depreciable Total and Method

The depreciable costs listed above are summarized as follows:

Indoor Playground: Kid's World

Play Equipment 220,000 5 years
Restaurant Equipment 50,000 7 years
Leasehold Improvements 30,000 31 ½ years
Office/Computer Equipment 27,000 5 years
Games 75,000 7 years
Furniture/Signs/Misc. 25.000 7 years
$427,000

These capital expenditures will be depreciated using the Modified Accelerated Costs Recovery System (MACRS) over various lengths depending on the useful lifes of the assets as mentioned above.

Utilities include electricity, gas, and water/sewer. Our estimates of electricity, gas, and water/sewer costs (based on franchisor estimates and contact with Detroit Edison, MichCon, and the City water department), suggest annual utilities will cost approximately $25,000.

Kids World will carry extensive insurance policies protecting it in the event of lawsuit. The insurance policies carried include: $1,000,000 per incident premises liability insurance covering bodily injury, property damage, and non-owned autos; $1,000,000 product liability insurance coverage; 100% replacement coverage on building contents and leasehold improvements; three month business interruption insurance, and worker's compensation insurance as required by law. These insurance policies have been estimated at $15,000 on an annual basis.

Inventory will consist of redemption items, game tokens, tickets, identification bracelets, paper products, food ingredients, restaurant supplies, and gift shop sale items. The budgeted initial investment in inventory is $7,500 based on franchisor estimates.

Working Capital

Based on franchisor estimates, Kid's World will require $50,000 of available cash, line of credit, or other liquid reserves to cover operating expenses for wages, utilities, rent, and similar expenses.

Business Organization

The business will be organized as a partnership under the name of Kid's World. Thomas Jones and Alice Cushaw will serve as Registered Agents.

Staffing Plan

Indoor Playground: Kid's World

Monday-Thursday Friday Saturday Sunday
Mgr-owner as needed 1 as needed 1 1 1 1
Mgr-employee 1 1 1 1
Ass't Mgr 1 1 1 1 1 1 1
Party Coord 1 1 1 1 1 1 1
Restaurant Staff 2 2 2 4 4 4 4
Play Monitors 2 2 2 3 3 3 3
Front Desk 1 2 2 2 3 3 3
Misc. 0 0 0 1 1 1 1

In the event Kid's World's acceptance is slower than anticipated, expenses can be reduced as follows:

Certain games and planned playpark additions can be leased, reducing up-front cash expenditures by $20,000 - $50,000.

The Secretary position can be eliminated and its job responsibilities performed by the two Assistant Managers. This can reduce salary expenditures by $20,000 annually.

Since the majority of Kid's World's employees are part-time and only scheduled to work up to two weeks in advance, the employment level can quickly and easily be adjusted to operating conditions.

Management fees can be reduced or eliminated entirely, as the member-managers do not depend on the business as their main source of income. This can reduce expenditures by up to 5.0% of sales, or up to $50,000.

These savings can significantly reduce operating expenses in the event of unforseen circumstances, lowering the break-even volume of the store.

Projected Revenue Buildup

Indoor Playground: Kid's World

Region Miles from store Population aged 0-13 Avg household income
A 5 23,061 $55,000
B 10 38,869 $52,748
C 25 49,121 $45,861

Indoor Playground: Kid's World

Miles from
store
Market
penetration
No. of initial
visits
Percentage
returning
No. of return trips
(7× per child)
0-5 30% 6,918 67% 32,447
5-10 25% 3,952 67% 18,535
10-25 15% 1,538 50% 5,382

Projected Revenues by Source

Indoor Playground: Kid's World

Number of visits per year 56364
Average admission revenue per visitor $4.95
Total admission revenue $279,002 28%
Number of visits per year 56,364
Average game revenue per visitor $4.00
Total game revenue $225,456 23%
Food
Number of visits (children) per year 56,364
Average number of children per parent 3
Percentage of total visitors purchasing food 80%
Total number of visitors purchasing food 60,122
Average food revenue per visitor $5.00
Total food revenue $300,608 30%
Number of parties per year 800
Average number of children per party 12
Average revenue per party $95.40
Total Regal Celebration revenues $76,320
Number of parties per year 400
Average number of children per party 10
Average revenue per party $89.50
Total Supreme Celebration revenues $35,800
Number of parties per year 200
Average number of children per party 8
Average revenue per party $95.60
Total Supreme Theme revenues $19,120
Total party revenue $131,240 13%

Indoor Playground: Kid's World

Number of visits per year 56,364
Percentage of visitors purchasing souveniers 5%
Average souvenier revenue per visitor $14.00
Total gift/souvenier revenue $39,455 4%
Number of events per year 36
Average number of children per event 30
Average revenue per visitor $10.00
Total special events revenue $10,800 1%

Projected Start-up Costs

Indoor Playground: Kid's World

$30,000
(two months free) $8,750
Square footage 14,000
Cost/sq.ft. $7.50
$8,750
Play structure $220,000
Games $75,000
Furniture and fixtures $10,000
Restaurant equipment $50,000
Signs $15,000
Computer hardware $15,000
Computer software $5,000
Telephone system $2,000
Misc. office equipment $5,000
Total Equipment $397,000
Franchise fee $30,000
Insurance (6 mos.) $7,500
Licenses and permits $1,500
Training costs $2,500
Architect $3,500
Legal and accounting fees $2,000
Uniforms $1,500
Inventory $7,500
Working Capital $50,000
Misc. (unanticipated costs) $14,000

Projected Salary and Wage Expense

Indoor Playground: Kid's World

Number Annual Salary Total
Manager 1 $32,000 $32,000
Assistant Managers 2 $20,000 $40,000
Secretary 1 $20,000 $20,000
Total fall-time 4 $92,000

Indoor Playground: Kid's World

Number Average
Rate/hr
Average Hrs/wk Total
Restaurant workers 12 $5.00 20 $62,400
Monitors 12 $5.00 20 $62,400
Front desk 10 $5.00 20 $52,000
Misc. 4 $5.00 20 $20,800
Total part-time 34 $197,600

Management Fee Schedule

Indoor Playground: Kid's World

Net Income before Management Fee Management Fee as% of Sales
$0 $50,000 0.0%
$50,000 $100,000 2.0%
$100,000 $150,000 4.0%
$150,000 + 5.0%

Projected Capital Contributions by Source

Indoor Playground: Kid's World

Amount Percentage
Contribution of Owners $200,000
Contribution of Investors $200,000
Total Equity $400,000 70.9%
Bank Loan - 5 yr. term $114,500
Line of Credit $50,000
Total Debt $164,500 29.1%
Total Initial Investment $564,500

Indoor Playground: Kid's World

Net Sales $986,561 $1,035,889 $1,087,683 $1,142,067 $1,199,171 5.0% sales growth
Cost of goods sold 137,033 143,885 151,079 158,633 166,565 13.9% of sales
Gross Profit $849,527 $892,004 $936,604 $983,434 $1,032,606
Rent 87,500 105,000 112,000 119,000 119,000 per lease
Utilities 25,000 25,750 26,523 27,318 28,138 3.0% inflation
Repairs and maintenance 20,833 22,660 23,340 24,040 24,761 3.0% inflation
General taxes 17,500 21,630 22,279 22,947 23,636 3.0% inflation
Telephone expense 10,000 10,300 10,609 10,927 11,255 3.0% inflation
Salaries and wages 289,600 298,288 307,237 316,454 325,947 3.0% wage growth
Insurance - general 17,333 18,334 18,884 19,451 20,034 3.0% inflation
Insurance - health 1,800 1,800 1,800 1,800 1,800 manager only
Permits and licenses 1,500 0 0 0 0 one-time expense
Bank service charge 1,424 1,424 1,424 1,424 1,424 ongoing
Legal and accounting 8,000 4,000 4,000 4,000 4,000 ongoing
Depreciation 85,400 85,400 95,400 95,400 109,400 SL 5 yrs
Amortization 3,000 3,000 3,000 3,000 3,000 amort 10 yrs
Office expense 9,866 10,359 10,877 11,421 11,992 1.0% of sales
Supplies 58,207 61,117 64,173 67,382 70,751 5.9% of sales
Franchise fees 49,328 51,794 54,384 57,103 59,959 5.0% of sales
Training 2,500 2,500 2,500 2,500 2,500 ongoing
Security and alarm expense 280 280 280 280 280 ongoing
Bad checks 1,000 1,000 1,000 1,000 1,000 $1,000 allowance
Payroll taxes 28,960 29,829 30,724 31,645 32,595 10.0% of salary
Sales tax expense 20,404 21,424 22,495 23,620 24,801 food sales
Operating supplies 19,731 20,718 21,754 22,841 23,983 2.0% of sales
Advertising 39,731 40,718 41,754 42,841 43,983 2.0% of sales + regional
Entertainment, promotion and meals 400 0 0 0 0 one-time expense
Michigan single business tax 392 392 392 392 392 provision
Interest expense 7,312 8,214 6,309 4,225 1,946 9.0% interest rate
Management fees 0 0 21,754 22,841 23,983 per schedule
Total Operating Expense $807,001 $845,931 $904,890 $933,853 $970,560

Indoor Playground: Kid's World

Cash $50,000 $154,577 $206,196 $301,580 $342,784 $478,224
Prepaid insurance 0 0 0 0 0 0
Prepaid taxes 0 0 0 0 0 0
Inventories 7,500 7,500 7,500 7,500 7,500 7,500
Other 0 0 0 0 0 0
Total current assets 57,500 162,077 213,6% 309,080 350,284 485,724
Furniture and fixtures 10,000 10,000 10,000 10,000 15,000 15,000
Playground equipment 220,000 220,000 260,000 260,000 290,000 290,000
Games 75,000 75,000 85,000 85,000 95,000 95,000
Leasehold improvements 30,000 30,000 30,000 30,000 50,000 50,000
Office equipment 7,000 7,000 7,000 7,000 7,000 7,000
Signs 15,000 15,000 15,000 15,000 15,000 15,000
Computer equipment 20,000 20,000 20,000 20,000 20,000 20,000
Kitchen equipment 50,000 50,000 50,000 50,000 55,000 55,000
Total PPE 427,000 427,000 477,000 477,000 547,000 547,000
Less: Accumulated Depreciation 0 85,400 170,800 266,200 361,600 471,000 SL Depr
Total Property, Plant and Equipment 427,000 341,600 306,200 210,800 185,400 76,000
Franchise cost - net 30,000 27,000 24,000 21,000 18,000 15,000 10-yr amort
Total Assets $514,500 $530,677 $543,896 $540,880 $553,684 $576,724
Accounts payable 0 0 0 0 0 0
Notes payable 0 0 0 0 0 0
Total Current Liabilities 0 0 0 0 0 0
Intermediate-term Debt 114,500 100,151 79,297 56,566 31,790 4,783 5-yr payback
Paid-in Capital 400,000 400,000 400,000 400,000 400,000 400,000
Accumulated Adjustments Account
Opening Balance 0 0 30,526 64,599 84,314 121,895
Net income 0 42,526 46,073 31,714 49,581 62,046
Distributions 0 12,000 12,000 12,000 12,000 12,000 3% payout
Closing Balance 0 30,526 64,599 84,314 121,895 171,941
Total Stockholder's Equity 400,000 430,526 464,599 484,314 521,895 571,941
Total Liabilities and Stock Equity $514,500 $530,677 $543,896 $540,880 $553,684 $576,724

Indoor Playground: Kid's World

Net income $42,526 $46,073 $31,714 $49,581 $62,046
Depreciation 85,400 85,400 95,400 95,400 109,400
Amortization 3,000 3,000 3,000 3,000 3,000
Increase in current liabilities 0 0 0 0 0
Decrease in current assets 0 0 0 0 0
Net Cash Provided by Operations 130,926 134,473 130,114 147,981 174,446
Purchase of equipment 0 50,000 0 50,000 0
Addition to leasehold improvements 0 0 0 20,000 0
Net Cash Used by Investing Activities 0 50,000 0 70,000 0
Loan Proceeds 0 0 0 0 0
Repayment of Debt 14,349 20,854 22,731 24,777 27,007
Distributions to shareholders 12,000 12,000 12,000 12,000 12,000
Net Cash Provided by Financing Activities (26,349) (32,854) (34,731) (36,777) (39,007)
Net Increase (Deer) in cash 104,577 51,619 95,384 41,204 135,440
Cash at beginning of year 50,000 154,577 206,196 301,580 342,784
Cash at end of year $154,577 $206,196 $301,580 $342,784 $478,224

Proforma Income Statement - Year 1

Indoor Playground: Kid's World

Net Sales $73,992 $90,435 $98,656 $106,877 $98,656
Cost of goods sold 10,277 12,561 13,703 14,845 13,703
Gross Profit $63,715 $77,873 $84,953 $92,032 $84,953
Rent 0 0 8,750 8,750 8,750
Utilities 2,083 2,083 2,083 2,083 2,083
Repairs and maintenance 1,250 1,250 1,833 1,833 1,833
General taxes 0 0 1,750 1,750 1,750
Telephone expense 833 833 833 833 833
Salaries and wages 21,720 26,547 28,960 31,373 28,960
Insurance - general 1,444 1,444 1,444 1,444 1,444
Insurance - health 150 150 150 150 150
Permits and licenses 1,500 0 0 0 0
Bank service charge 119 119 119 119 119
Legal and accounting 4,333 333 333 333 333
Depreciation 7,117 7,117 7,117 7,117 7,117
Amortization 250 250 250 250 250
Office expense 740 904 987 1,069 987
Supplies 4,366 5,336 5,821 6,306 5,821
Franchise fees 3,700 4,522 4,933 5,344 4,933
Training 2,500 0 0 0 0
Security and alarm expense 280 0 0 0 0
Bad checks 83 83 83 83 83
Payroll taxes 2,172 2,655 2,896 3,137 2,896
Sales tax expense 1,530 1,870 2,040 2,210 2,040
Operating supplies 1,480 1,809 1,973 2,138 1,973
Advertising 3,147 3,475 3,640 3,804 3,640
Entertainment, promotion and meals 400 0 0 0 0
Michigan single business tax 0 0 0 0 0
Interest expense 0 0 0 859 847
Management fees 0 0 0 0 0
Total Operating Expense $61,196 $60,781 $75,996 $80,986 $76,843
Net Income $2,518 $17,093 $8,957 $11,046 $8,110

Indoor Playground: Kid's World

$90,435 $61,660 $57,549 $61,660 $78,103 $73,992 $94,545 $986,561
12,561 8,565 7,994 8,565 10,848 10,277 13,132 137,033
$77,873 $53,095 $49,556 $53,095 $67,254 $63,715 $81,413 $849,527
8,750 8,750 8,750 8,750 8,750 8,750 8,750 87,500
2,083 2,083 2,083 2,083 2,083 2,083 2,083 25,000
1,833 1,833 1,833 1,833 1,833 1,833 1,833 20,833
1,750 1,750 1,750 1,750 1,750 1,750 1,750 17,500
833 833 833 833 833 833 833 10,000
26,547 18,100 16,893 18,100 22,927 21,720 27,753 289,600
1,444 1,444 1,444 1,444 1,444 1,444 1,444 17,333
150 150 150 150 150 150 150 1,800
0 0 0 0 0 0 0 1,500
119 119 119 119 119 119 119 1,424
333 333 333 333 333 333 333 8,000
7,117 7,117 7,117 7,117 7,117 7,117 7,117 85,400
250 250 250 250 250 250 250 3,000
904 617 575 617 781 740 945 9,866
5,336 3,638 3,395 3,638 4,608 4,366 5,578 58,207
4,522 3,083 2,877 3,083 3,905 3,700 4,727 49,328
0 0 0 0 0 0 0 2,500
0 0 0 0 0 0 0 280
83 83 83 83 83 83 83 1,000
2,655 1,810 1,689 1,810 2,293 2,172 2,775 28,960
1,870 1,275 1,190 1,275 1,615 1,530 1,955 20,404
1,809 1,233 1,151 1,233 1,562 1,480 1,891 19,731
3,475 2,900 2,818 2,900 3,229 3,147 3,558 39,731
0 0 0 0 0 0 0 400
0 0 0 0 0 0 392 392
836 824 813 801 789 777 765 7,312
0 0 0 0 0 0 0 0
$72,700 $58,227 $56,149 $58,203 $66,455 $64,377 $75,087 $807,001
$5,174 ($5,131) ($6,593) ($5,108) $799 ($663) $6,326 $42,527

Proforma Balance Sheet - Year 1

Indoor Playground: Kid's World

Cash $50,000 $59,885 $84,344 $100,668 $117,486
Prepaid insurance 0 0 0 0 0
Prepaid taxes 0 0 0 0 0
Inventories 7,500 7,500 7,500 7,500 7,500
Other 0 0 0 0 0
Total current assets 57,500 67,385 91,844 108,168 124,986
Furniture and fixtures 10,000 10,000 10,000 10,000 10,000
Playground equipment 220,000 220,000 220,000 220,000 220,000
Games 75,000 75,000 75,000 75,000 75,000
Leasehold improvements 30,000 30,000 30,000 30,000 30,000
Office equipment 7,000 7,000 7,000 7,000 7,000
Signs 15,000 15,000 15,000 15,000 15,000
Computer equipment 20,000 20,000 20,000 20,000 20,000
Kitchen equipment 50,000 50,000 50,000 50,000 50,000
Total PPE 427,000 427,000 427,000 427,000 427,000
Less: Accum. Depreciation 0 7,117 14,233 21,350 28,467
Total PPE 427,000 419,883 412,767 405,650 398,533
Franchise cost - net 30,000 29,750 29,500 29,250 29,000
Total Assets $514,500 $517,018 $534,111 $543,068 $552,519
Accounts payable 0 0 0 0 0
Notes payable 0 0 0 0 0
Total Current Liabilities 0 0 0 0 0
Intermediate-term Debt 114,500 114,500 114,500 114,500 112,906
Paid-in Capital 400,000 400,000 400,000 400,000 400,000
Accumulated Adjustments Account
Opening Balance 0 0 2,518 19,611 28,568
Net income 0 2,518 17,093 8,957 11,046
Distributions 0 0 0 0 0
Closing Balance 0 2,518 19,611 28,568 39,613
Total Stockholder's Equity 400,000 402,518 419,611 428,568 439,613
Total Liabilities & Stock, Equity $514,500 $517,018 $534,111 $543,068 $552,519

Indoor Playground: Kid's World

$131,368 $142,314 $142,955 $142,134 $142,798 $149,370 $154,479 $154,577
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500
0 0 0 0 0 0 0 0
138,868 149,814 150,455 149,634 150,298 156,870 161,979 162,077
10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000
75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000
30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000
7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000
15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000
20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
427,000 427,000 427,000 427,000 427,000 427,000 427,000 427,000
35,583 42,700 49,817 56,933 64,050 71,167 78,283 85,400
391,417 384,300 377,183 370,067 362,950 355,833 348,717 341,600
28,750 28,500 28,250 28,000 27,750 27,500 27,250 27,000
$559,034 $562,614 $555,888 $547,700 $540,998 $540,203 $537,946 $530,677
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
111,311 109,717 108,123 106,528 104,934 103,340 101,745 100,151
400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000
39,613 47,723 52,897 47,765 41,172 36,064 36,863 36,201
8,110 5,174 (5,131) (6,593) (5,108) 799 (663) 6,326
0 0 0 0 0 0 0 12,000
47,723 52,897 47,765 41,172 36,064 36,863 36,201 30,527
447,723 452,897 447,765 441,172 436,064 436,863 436,201 430,527
$559,034 $562,614 $555,888 $547,700 $540,998 $540,203 $537,946 $530,677

Proforma Statement of Cash Flows - Year 1

Indoor Playground: Kid's World

Net income $2,518 $17,093 $8,957 $11,046 $8,110
Depreciation 7,117 7,117 7,117 7,117 7,117
Amortization 250 250 250 250 250
Increase in current liabilities 0 0 0 0 0
Decrease in current assets 0 0 0 0 0
Net Cash Provided by Operations 9,885 24,459 16,324 18,412 15,476
Purchase of equipment 0 0 0 0 0
Addition to leasehold improvements 0 0 0 0 0
Net Cash Used by Investing Activities 0 0 0 0 0
Loan Proceeds 0 0 0 0 0
Repayment of Debt 0 0 0 1,594 1,594
Distributions to shareholders 0 0 0 0 0
Net Cash Provided by Financing Activities 0 0 0 (1,594) (1,594)
Net Increase (Decr) in cash 9,885 24,459 16324 16,818 13,882
Cash at beginning of month 50,000 59,885 84,344 100,668 117,486
Cash at end of month 59,885 84,344 100,668 117,486 131,368

Indoor Playground: Kid's World

$5,174 ($5,131) ($6,593) ($5,108) $799 ($663) $6326 $42,527
7,117 7,117 7,117 7,117 7,117 7,117 7,117 85,400
250 250 250 250 250 250 250 3,000
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
12,540 2,236 773 2,259 8,166 6,704 13,693 130,927
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
1,594 1,594 1,594 1,594 1,594 1,594 1,594 14,349
0 0 0 0 0 0 12,000 12,000
(1,594) (1,594) (1,594) (1,594) (1,594) (1,594) (13,594) (26,349)
10,946 641 (821) 665 6,571 5,110 98 104,577
131,368 142,314 142,955 142,134 142,798 149,370 154,479
142,314 142,955 142,134 142,798 149,370 154,479 154,577

Proforma Income Statement - Year 2

Indoor Playground: Kid's World

Net Sales $77,692 $94,956 $103,589 $112,221 $103,589
Cost of goods sold 10,791 13,189 14,388 15,588 14,388
Gross Profit $66,900 $81,767 $89,200 $96,634 $89,200
Rent 8,750 8,750 8,750 8,750 8,750
Utilities 2,146 2,146 2,146 2,146 2,146
Repairs and maintenance 1,888 1,888 1,888 1,888 1,888
General taxes 1,803 1,803 1,803 1,803 1,803
Telephone expense 858 858 858 858 858
Salaries and wages 22,372 27,343 29,829 32,315 29,829
Insurance - general 1,528 1,528 1,528 1,528 1,528
Insurance - health 150 150 150 150 150
Permits and licenses 0 0 0 0 0
Bank service charge 119 119 119 119 119
Legal and accounting 333 333 333 333 333
Depreciation 7,117 7,117 7,117 7,117 7,117
Amortization 250 250 250 250 250
Office expense 777 950 1,036 1,122 1,036
Supplies 4,584 5,602 6,112 6,621 6,112
Franchise fees 3,885 4,748 5,179 5,611 5,179
Training 2,500 0 0 0 0
Security and alarm expense 280 0 0 0 0
Bad checks 83 83 83 83 83
Payroll taxes 2,237 2,734 2,983 3,231 2,983
Sales tax expense 1,607 1,964 2,142 2,321 2,142
Operating supplies 1,554 1,899 2,072 2,244 2,072
Advertising 3,220 3,566 3,738 3,911 3,738
Entertainment, promotion and meals 0 0 0 0 0
Michigan single business tax 0 0 0 0 0
Interest expense 753 741 729 716 704
Management fees 0 0 0 0 0
Total Operating Expense $68,793 $74,572 $78,845 $83,118 $78,820
Net Income (1,893) 7,195 10,355 13,516 10,380

Indoor Playground: Kid's World

$94,956 $64,743 $60,427 $64,743 $82,008 $77,692 $99,273 $1,035,889
13,189 8,993 8,393 8,993 11,391 10,791 13,789 143,885
$81,767 $55,750 $52,034 $55,750 $70,617 $66,900 $85,484 $892,004
8,750 8,750 8,750 8,750 8,750 8,750 8,750 105,000
2,146 2,146 2,146 2,146 2,146 2,146 2,146 25,750
1,888 1,888 1,888 1,888 1,888 1,888 1,888 22,660
1,803 1,803 1,803 1,803 1,803 1,803 1,803 21,630
858 858 858 858 858 858 858 10,300
27,343 18,643 17,400 18,643 23,614 22,372 28,586 298,288
1,528 1,528 1,528 1,528 1,528 1,528 1,528 18,334
150 150 150 150 150 150 150 1,800
0 0 0 0 0 0 0 0
119 119 119 119 119 119 119 1,424
333 333 333 333 333 333 333 4,000
7,117 7,117 7,117 7,117 7,117 7,117 7,117 85,400
250 250 250 250 250 250 250 3,000
950 647 604 647 820 777 993 10,359
5,602 3,820 3,565 3,820 4,838 4,584 5,857 61,117
4,748 3,237 3,021 3,237 4,100 3,885 4,964 51,794
0 0 0 0 0 0 0 2,500
0 0 0 0 0 0 0 280
83 83 83 83 83 83 83 1,000
2,734 1,864 1,740 1,864 2,361 2,237 2,859 29,829
1,964 1,339 1,250 1,339 1,696 1,607 2,053 21,424
1,899 1,295 1,209 1,295 1,640 1,554 1,985 20,718
3,566 2,962 2,875 2,962 3,307 3,220 3,652 40,718
0 0 0 0 0 0 0 0
0 0 0 0 0 0 392 392
691 679 666 653 640 627 614 8,214
0 0 0 0 0 0 0 0
$74,522 $59,511 $57,355 $59,485 $68,043 $65,887 $76,980 $845,931
7,245 (3,760) (5,322) (3,735) 2,574 1,013 8,504 $46,073

Proforma Balance Sheet - Year 2

Indoor Playground: Kid's World

Cash $158,313 $171,137 $187,122 $206,266 $222,276
Prepaid insurance 0 0 0 0 0
Prepaid taxes 0 0 0 0 0
Inventories 7,500 7,500 7,500 7,500 7,500
Other 0 0 0 0 0
Total current assets 165,813 178,637 194,622 213,766 229,776
Furniture and fixtures 10,000 10,000 10,000 10,000 10,000
Playground equipment 220,000 220,000 220,000 220,000 220,000
Games 75,000 75,000 75,000 75,000 75,000
Leasehold improvements 30,000 30,000 30,000 30,000 30,000
Office equipment 7,000 7,000 7,000 7,000 7,000
Signs 15,000 15,000 15,000 15,000 15,000
Computer equipment 20,000 20,000 20,000 20,000 20,000
Kitchen equipment 50,000 50,000 50,000 50,000 50,000
Total PPE 427,000 427,000 427,000 427,000 427,000
Less: Accum. Depreciation 92,517 99,633 106,750 113,867 120,983
Total PPE 334,483 327,367 320,250 313,133 306,017
Franchise cost - net 26,750 26,500 26,250 26,000 25,750
Total Assets $527,047 $532,504 $541,122 $552,900 $561,542
Accounts payable 0 0 0 0 0
Notes payable 0 0 0 0 0
Total Current Liabilities 0 0 0 0 0
Intermediate-term Debt 98,413 96,675 94,937 93,200 91,462
Paid-in Capital 400,000 400,000 400,000 400,000 400,000
Accumulated Adjustments Account
Opening Balance 30,527 28,634 35,829 46,184 59,700
Net income (1,893) 7,195 10,355 13,516 10,380
Distributions 0 0 0 0 0
Closing Balance 28,634 35,829 46,184 59,700 70,080
Total Stockholder's Equity 428,634 435,829 446,184 459,700 470,080
Total Liabilities & Stock. Equity $527,047 $532,504 $541,122 $552,900 $561,542

Indoor Playground: Kid's World

$235,149 $237,018 $237,325 $239,219 $247,422 $254,064 $206,197
0 0 0 0 0 0 0
0 0 0 0 0 0 0
7,500 7,500 7,500 7,500 7,500 7,500 7,500
0 0 0 0 0 0 0
242,649 244,518 244,825 246,719 254,922 261,564 213,697
10,000 10,000 10,000 10,000 10,000 10,000 10,000
220,000 220,000 220,000 220,000 220,000 220,000 260,000
75,000 75,000 75,000 75,000 75,000 75,000 85,000
30,000 30,000 30,000 30,000 30,000 30,000 30,000
7,000 7,000 7,000 7,000 7,000 7,000 7,000
15,000 15,000 15,000 15,000 15,000 15,000 15,000
20,000 20,000 20,000 20,000 20,000 20,000 20,000
50,000 50,000 50,000 50,000 50,000 50,000 50,000
427,000 427,000 427,000 427,000 427,000 427,000 477,000
128,100 135,217 142,333 149,450 156,567 163,683 170,800
298,900 291,783 284,667 277,550 270,433 263,317 306,200
25,500 25,250 25,000 24,750 24,500 24,250 24,000
$567,049 $561,551 $554,492 $549,019 $549,855 $549,130 $543,897
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
89,724 87,986 86,248 84,510 82,773 81,035 79,297
400,000 400,000 400,000 400,000 400,000 400,000 400,000
70,080 77,325 73,565 68,243 64,508 67,082 68,095
7,245 (3,760) (5,322) (3,735) 2,574 1,013 8,504
0 0 0 0 0 0 12,000
77,325 73,565 68,243 64,508 67,082 68,095 64,600
477,325 473,565 468,243 464,508 467,082 468,095 464,600
$567,049 $561,551 $554,492 $549,019 $549,855 $549,130 $543,897

Proforma Statement of Cash Flows - Year 2

Indoor Playground: Kid's World

Net income ($1,893) $7,195 $10,355 $13,516 $10,380
Depreciation 7,117 7,117 7,117 7,117 7,117
Amortization 250 250 250 250 250
Increase in current liabilities 0 0 0 0 0
Decrease in current assets 0 0 0 0 0
Net Cash Provided by Operations 5,474 14,562 17,722 20,882 17,747
Purchase of equipment 0 0 0 0 0
Addition to leasehold improvements 0 0 0 0 0
Net Cash Used by Investing Activities
Loan Proceeds 0 0 0 0 0
Repayment of Debt 1,738 1,738 1,738 1,738 1,738
Distributions to shareholders 0 0 0 0 0
Net Cash from Financing Activities (1,738) (1,738) (1,738) (1,738) (1,738)
Net Increase (Decr) in cash 3,736 12,824 15,984 19,145 16,009
Cash at beginning of month 154,577 158,313 171,137 187,122 206,266
Cash at end of month 158,313 171,137 187,122 206,266 222,276

Indoor Playground: Kid's World

$7,245 ($3,760) ($5,322) ($3,735) $2,574 $1,013 $8,504 $46,073
7,117 7,117 7,117 7,117 7,117 7,117 7,117 85,400
250 250 250 250 250 250 250 3,000
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
14,612 3,606 2,045 3,632 9,941 8,380 15,871 134,473
0 0 0 0 0 0 50,000 50,000
0 0 0 0 0 0 0 0
0 0 0 0 0 0 50,000 50,000
0 0 0 0 0 0 0 0
1,738 1,738 1,738 1,738 1,738 1,738 1,738 20,854
0 0 0 0 0 0 12,000 12,000
(1,738) (1,738) (1,738) (1,738) (1,738) (1,738) (13,738) (32,854)
12,874 1,868 307 1,894 8,203 6,642 (47,867) 51,619
222,276 235,149 237,018 237,325 239,219 247,422 254,064
235,149 237,018 237,325 239,219 247,422 254,064 206,197

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indoor dog park business plan

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Moscow Dog Park

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Or call (208) 883-7084 or email [email protected] for more information.

Moscow Dog Park has received a rating of 3.5 out of 5 bones by 2 canine critics on BringFido.

I have two Danes and they love bein with the other dogs.

It is nice to have a dog park. However, the park is small and very quite. It is also not conveniently located (on the side of town next to the humane society).

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  1. How to Start a Dog Park Business

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  3. What’s in our UDPATED DOG PARK Business Plan Template by Paul Borosky

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  5. Pet Resort Business Plan Template in 2021

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  6. Park Layout

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COMMENTS

  1. How to Start an Indoor Dog Park

    The most important part in learning how to start an indoor dog park is developing a business plan that includes all aspects of your indoor dog park. RELATED: How to Write a Dog Walking Business Plan.

  2. Indoor Dog Park Bar Business Plan [Sample Template]

    Jack Collins® Dog Park, Inc. is a premier dog park business located in Seattle, Washington, dedicated to providing a safe and enjoyable space for dogs to exercise, play, and socialize. Jack Collins® Dog Park spans over 2 acres of the fenced area, providing separate sections for small and large dogs. The park's design prioritizes safety ...

  3. How to Start a Dog Park Business

    8 Steps to Start a Dog Park Business. 1. Create Your Dog Park Business Plan. A solid business plan is a key to success as an entrepreneur. A business plan will help you plan out your operations. With a business plan, you can run your business more efficiently. With a business plan, you can learn how to start, run, and grow your new business.

  4. How to Start an Indoor Dog Park: 11 Steps to Follow

    4. Build a Community. Networking is a critical part of building and running a successful business. Reach out to the local community to get support, reach out to other local business owners and learn from them, and get connected with other local dog groups. The more connections you can build, the better, so get out and start building your own ...

  5. How to Write a Dog Park Business Plan

    The funding request section of a dog park business plan or template should begin by clearly stating the total funding required to launch the business successfully. To determine this amount, it is recommended to outline specific categories in an Excel spreadsheet. The first category to consider is startup costs.

  6. Key Elements of a Winning Dog Park Business Plan

    Funding: Evaluate the startup costs involved in establishing your dog park business. The average startup cost for an indoor dog park typically ranges between $8,000 and $20,000, excluding the expense of renting a property (Wise Business Plans). Consider various funding options such as personal savings, bank loans, crowdfunding, sponsorships ...

  7. Dog Park Business Plan Template

    Unlock the potential of your dog park venture with our ultimate Dog Park Business Plan Template. It's more than just a document; it's a journey through the strategic planning and execution required for a thriving Dog Park business. Tailored for industry-specific needs, this comprehensive guide and template combo is your blueprint to success.

  8. PDF Indoor Dog Park Business In a Box (BIB)

    "Soon after opening Fido's Indoor Dog Park, a new community was created. The dogs became buddies, dog owners created friendships, and employees bonded with the dogs. Since the beginning, Fido's Indoor Dog Park has been an environment of fun, friendship and trust. Every day is play day" Josephine Cetta Owner/Founder Fido's Indoor Dog Park

  9. 2024 Dog Park Business Plan Example & Template

    III. Industry Analysis. The Dog Park industry in the United States is currently thriving, with an estimated market size of over $1 billion. This industry includes a wide range of services and products catered towards dogs and their owners, such as dog parks, dog walking services, grooming products, and more.

  10. How to Write Dog Park Business Plan? Guide & Template

    How to Write a Dog Park Business Plan. Executive Summary: A concise overview of your business concept, goals, and strategies. Business Description: Detailed information about your dog park ...

  11. How to Launch a Lucrative Dog Park Business

    To learn more about creating a robust business plan for your dog park, refer to our article on dog park business plan. When developing your business plan, consider the following key elements: Market Analysis: Conduct market research to identify the demand for a dog park in your area. Analyze the demographics, competition, and potential target ...

  12. Embark on the Innovative Journey of Starting a Dog Parks Business

    Embarking on your dog park venture calls for meticulous attention to detail and a relentless pursuit of perfection, much like crafting a piece of technology that reshapes the world. Consider these elements with the gravity they deserve: Innovative design and layout planning. Robust safety features for all canine guests.

  13. How to Start a Dog Park Business

    When it comes to starting a dog park business, the startup costs vary, and it could range from as low as $250,000 to $1 million or more. b. What are the Costs Involved in Starting a Dog Park Business. Business Registration Fees - $750. Legal expenses for obtaining licenses and permits - $7,800.

  14. How to Start a Dog Park Business

    There are essentially three ways to turn a dog park into a business idea. You can walk dogs for a fee, charge a fee for using your own park (either indoor or outdoor) or combine the two by walking dogs in a private park for a fee. Starting off with a dog-walking service would be the better choice if you are short on capital but have lots of ...

  15. How to write a Dog Park Business Plan by Paul Borosky, MBA.

    In "How to write a Dog Park business plan" by Paul Borosky, MBA., which will be published soon, I discuss how to write a Dog Park business plan, step by step...

  16. Fido's Indoor Dog Park

    This is a one-time purchase that provides everything you need to plan, setup, market and manage your indoor dog park business. Click here to download our brochure. The Business in a Box was finalized August, 2015. Since this time, entrepreneurs from six states have purchased the BIB and started their indoor dog park business journey. Nebraska ...

  17. Pet & Dog Franchise Opportunities

    The initial franchise fee is $35,000* with an overall estimated initial investment between $470,300 - $1,145,900. You investment includes licensing, training, support, and resources to launch your dog franchise location. The royalty fee for Wagbar will be 6% of adjusted gross sales.

  18. PDF EVERYTHING YOU NEED TO CREATE A SUCCESSFUL DOG PARK

    Most communities find their small dog park won't handle all of their visitors and they have to build another one very quickly. Small dog parks are like potato chips - you can't have just one. The minimum size for a dog park, a small dog park, is one-half of an acre. Ideally, a dog park should be one acre or more in size.

  19. How to Design a Dog Park [Floor Plan, Bar Layout Included]

    Steps to Design a Dog Park. Just like every other construction project, you need to consider a whole lot of factors when looking to design a viable dog park. Although these factors are pertinent and will most often vary, below are notable steps to guide you through the design process. 1. Research and Planning.

  20. Dog Park

    Join The Chamber. About the Chamber. News Releases. Purchase the Moscow Gift Card. 411 S. Main St., Moscow, ID 83843 [email protected]. Visit the Dog Park in Moscow Idaho and discover more of area's local businesses and the services and amenities in the local Moscow area.

  21. Indoor Playground Business Plan

    Encyclopedia of Business, 2nd ed. Indoor Playground Business Plan: Business Plans - Volume 03. Toggle navigation. Encyclopedia . Encyclopedia of Small Business ... Kidville offers a multi-level play-park complete with treeforts and slides for children over 4 and a separate play area for children under the age of 4. It is similar in concept to ...

  22. Moscow Dog Park

    Moscow Dog Park. Moscow Dog Park in Moscow, ID, is a neighborhood off-leash dog park that attracts a crowd of regulars. The park is fully fenced and features a water spout, waste bags and scoopers, a restroom and picnic tables for your convenience. Visit Website. Or call (208) 883-7084 or email [email protected] for more information.

  23. Moscow Parks Recreation

    directed to our online registration site. Park picnic shelters may also be reserved online. For information on facility reservations, please contact Moscow Parks and Recreation weekdays between 8:00 am - 5:00 pm. Facilities Hamilton Indoor Recreation Center 1724 East F Street (208) 883-7084 Eggan Youth Center 1515 East D Street (208) 883-7084