Looking forward to starting an amusement park business? If so, find here a stepwise guide on starting an amusement park for beginners covering the various steps associated with it.
The amusement park business is perfect for the fun-loving, passionate individuals who want to establish a profitable self-rewarding business. We are all aware of the success stories of Disney Land, Knoebels, and Cedar Point.
Establishing an amusement park business requires substantial capital investment and proper strategic planning. Also, it requires plenty of vacant land and water resources depending upon the size of the park.
The Amusement Parks industry has grown strongly over the past five years, driven by a rise in international and domestic visitor numbers and rising consumer spending.
In the coming years, the growth of this entertainment business is expected to continue as a number of drivers continue to have a positive influence on the industry. For example, travel spending is anticipated to increase as the economy improves over the next five years.
In starting an amusement park preparing a business feasibility report is a must. It provides important physical planning guidance and physical parameters, such as total land size needed, building space required, etc.
Furthermore, it also recommends the attraction mix and major components. Engaging the right experts for these tasks is a must. You will need to consult with experts like project consultants, architects, civil engineers to prepare the plan and to execute it properly.
Here are the 9 Steps to Start a Profitable Amusement Park Business
1. Create an Amusement Park Business Plan
Financial planning should include the total capital investment, means of finance, expected revenue return, and break even. You will need to decide the size of the park, equipment, staffing, and also working capital investment.
Some of the basic topics that must be addressed in your business plan are the following:
- Initial and recurring costs
- Target customers
- Pricing plan
- Hiring manpower
- How much profit do you expect?
- How and where to find customers
2. Amusement Park Business Legalities
First, you must register the business. Amusement park business attracts several permissions and safety rules that vary from state to state. You also need to obtain permission from the Government to operate the amusement park. It is advisable to consult with an attorney to check the amusement park business legalities.
For example, in the United States, many small business owners prefer to register their companies as an LLC as it protects personal assets among other extra benefits.
3. Name your Business
Select a catchy name for your amusement park business. A properly thought-out name not only fetch extra customers but also enhance the brand image of your business.
4. Financing Options For Amusement Park
The major fixed capital investment requires land and equipment. You can apply for a term loan or hire purchase leasing from any bank. Angel investment or venture capitalist is also a very good option for finance.
5. Acquire Land For Amusement Park
The land is the primary resource that you must have. The land size will depend on your business plan. Select a large size of the land on the road-side that meets up the requirement of entire equipment accommodation.
You can either purchase the land or can have a long-term lease. If short in budget, you can also think about a small indoor amusement park idea. In that case, you will need to find a small property in a good location in the city.
6. Hire Manpower
In establishing an amusement park, you must engage expert professionals to implement the idea rightfully. Hire experienced skilled operational employees. Proper training about the operation, safety, and customer dealing is important.
7. Purchase Equipment
Select the equipment carefully. Select the kid’s specific rides and also keep the equipment for the teenage and young crowd.
Purchase equipment from reliable suppliers. Check the warranty period, installation charges, and after-sale service commitments.
You must make arrangements for food and beverages inside the park. It is also an alternate option to generate extra income. You can establish your own food court or you can lease out some spaces to the reputed food chain retails.
Always remember; you are not offering a product, you are offering a memorable fun experience to your clients at your amusement park.
8. Pricing Plan
Fix pricing carefully. You can offer discounted pricing for groups or school visitors. Apart from ride specific tariff, you can also offer tickets for a full day or for all ride
9. Promote Your Amusement Park
There are several ways, you can promote an amusement park. Rather than advertising, you must make it known to your audiences. You can publish advertisements in kid’s magazines and kid’s channels.
Create your own website. Upload exciting videos there. You can offer an online ticket buying process also. Establish business tie-ups with tour operators. Promote your amusement park on social media also.
Frequently Asked Questions on Amusement Park Business
How much does it cost to start an amusement park?
The amount of investment will largely depend on the type and area of the amusement park. However, to construct a small waterpark in the United States, the cost will be roughly in the range of $50,0000 t0 $1,00,0000. The cost can increase to $50 million for bigger waterparks. For Indoor parks, an approximate investment will be around $10 million to $20million.
How much money do amusement parks make a year?
As per the latest report from Statista, the total revenue generated from amusement and theme parks is expected to be over 22 billion U.S. dollars in 2019. The industry experts predict higher growth of CAGR of 5.8% in the coming 5 years.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.