Children's Recreation Center Business Plan

Executive Summary

This plan provides detailed information on the initial establishment and operation of Cabin Fever - Child Fun Center. The plan outlines the plans for business growth, methods, procedures for operation, and infrastructure.

Cabin Fever will offer young families in Bemidji, MN and the surrounding area a quality family recreation center, with jungle gyms, soft contained play structures, slides, and imagination-inspiring play areas for children ages 2 to 5. All equipment is safety-tested and approved, employees are trained in child safety and first aid. Parents will have special seating areas where they can watch their children play actively and safely, even in the coldest, darkest months of winter, and can purchase snacks and drinks from a limited selection while they wait.

Brian Solum (owner) and Derek Giesbrecht (advisor) are responsible for the design, building, and development of the daily operations outlined in this plan. Derek is the President of Soft Play, LLC, a leading indoor playground manufacturer, and has been in the Active Play industry for many years. He has established Soft Play as the leader in the Family Entertainment Industry. Brian is a former real estate agent, a father of four, and has over seven years of experience in the child care industry. Brian will be supported by a team-oriented and customer-focused staff. Cabin Fever will retain the services of a CPA firm to perform professional company audits, prepare taxes and payroll, and serve as a business consultant to assist in setting achievable long-range strategic goals.

Based on the current prices in the child recreation market, Cabin Fever has the potential to make sales of $158,000 the first year. With good management, we expect a revenue growth of five percent annually. The following ratios apply in the first year:

• Gross Margin above 95%
• Net Profit Margin above 12%
• Pre-tax Return on Assets over 20%
• Net Worth over $76,000 by year three

We will minimize risk factors to Cabin Fever's success by:

1. Obtaining sufficient capital to build and cover expenses of initial operation. All investor capital will be held in escrow until the project is totally funded.

2. Minimizing overhead costs, which increases the bottom line profit.

3. Building a sufficient customer base. We have determined an excellent location using demographics, and our aggressive marketing program will ensure the desired results.

4. Establishing community involvement to demonstrate how the business will contribute to a better quality of life.

5. All payments will be cash or check, which eliminates the need for invoicing and collections.

1.1 Mission

1. To provide the greater Bemidji area with a safe, fun, exciting (and profitable) child entertainment facility for children ages 2-5, and their parents, which will help children grow physically, emotionally and mentally through interactive play with their parents, peers and the facility itself.
2. To listen intently to customer needs regarding the entertainment, activities and facilities relating to safety, environment and services and act accordingly with respect to those needs.
3. Develop a system of safety, security and accountability on the property between the staff, paying clientele and the general public.

1.2 Keys to Success

1. Location
2. Service
3. Safety
4. Cash

1.3 Objectives

1. Attract 30% of my target market to use "Cabin Fever" 1.5 times per month in the 1st year. Based upon the most recent census and demographic statistics available for this region, achieving this objective would mean attracting 3,600 paying children and 1,080 adults through the door the 1st year.
2. Gain market share of 40% by 3rd year.
3. Reduce debt load 37% by end of 3rd year.