Starting an Indoor Playground Business – Profitable Business Plan Sample

Starting any business requires quite an amount of hard work and patience. You need to do thorough market research and then make your leap of faith in terms of any business. You need to consider a few steps before you launch your business for the market.

If you are planning to start an indoor playground business, you need to be extra cautious while you set it up. Some of the things to keep in mind when you start an indoor playground business are as follows:


Step 1: Take a look at the market

Setting up an indoor playground is not as easy as it might sound. There are many individuals and companies in the market who already have sets of loyal customers. To be able to make it to the market, you need to have a closer look.

You must be able to understand the problem statement and see what exactly the customers are looking for and how you can make their experience better. Find out the problem statement or the reasons for setting up an indoor playground and understand the different ways of solving it, keeping in mind the best interest of the customers and the business.

Step 2: Analyze the competition

As already mentioned, there would be many players in the market who already have their business established. You need to analyze the market and understand it deeper, understand what kind of service each of these businesses provides and what you can provide us a business to your customer that would be competitive with their product or service.

Only when you can understand what additional service you would provide to your customers, can you make a better pitch to the investors or even be able to pitch your services to your customers for that matter.

Step 3: Decide on what you want?

There are several models for an indoor playground. Understand what you wish to cater to your customers. Large play areas tend to occupy more space and also requires large motor and equipment. So, you need to decide which kind of play area you are willing to invest in.

What range of customers are you planning to cater to, what are the play equipment you are planning to have, how many kids are you willing to accommodate at any point, and so on? If you have your purpose in mind defined, you can easily fix a budget for opening your indoor play area business.

Step 4: Fix a budget

There are quite a few things to buy and organize before you start your indoor play area business. All of which can cost you a truckload of money if you are unable to fix a budget beforehand. For example, the equipment you would like to have in your play area.

If you do no decide the budget for your play area and individually for other aspects of your business, you might not be able to make ends meet. Understanding what exactly you would require this business will help you plan wisely and optimally use your budget. 

Step 5: Select a location

The selection of the right location is extremely essential for any business. You would not want to start a business where the footfall is low. That would only hamper your business and not generate enough revenue.

Selecting a location for the indoor play area is crucial. You need to select an area that is neither too crowded nor too deserted. It is preferable if there are not many play areas around the location as it would help you get an added advantage in the business. Even if there are a couple of indoor play areas near you, it should not be an issue if you know your business model is good enough to handle the competition.

Step 6: Purchase the assets to get to the market

You already have your business plan ready, purchase the location, or get it on rent at the best price and make sure you have it exactly in the way you want it. It is a great idea to purchase the location beforehand so that you can plan the rest of your business based on the location and the area you have in hand.

The space you purchase or rent is as essential as the selection of the location. The floor area you have will help you decide the kind of arrangement you would like.

Step 7: Decide on the brand and the brand logo

Once you have set the location and made a business plan for your indoor play area, you need to decide on a brand name and a logo for your company. You can talk to experts for this, and they will guide you with a catchy name and the logos too.

The logo need not be too glamorous, a simple logo with some vibrant colors may do the trick. The logo has to be such that people can recognize it at once from a distance. It needs to be relevant to the business as well. The color palette has to be selected judiciously as well.

Step 8: Pitch to sponsors

Next, if you think you might require some outside financial help for the business to grow deeper into the markets, you need to find sponsors who would be willing to join you in the venture. You can seek people from similar backgrounds or companies that are willing to fund startups like you.

You might be clear on your vision and mission for the business and pitch to the sponsors confidently. You need to give them an overall idea about what kind of business you are looking at and what is the revenue you plan to generate from the business. 

Step 9: Get the paperwork ready

Paperwork is very crucial in the case of any business. You will need a proper business license or DBA (Doing business as) license, whichever is suitable for you. Get your brand, and the logo registered so that no one claims that you have copied their idea. For getting the paperwork for your business done correctly, you can hire a lawyer who will take care of the legal side of things for you.

All kinds of documents, bills, purchase details, rental agreements need to be arranged so that it is easy for auditors. There should be no flaw in the paperwork and, you as the business owner should ensure this at all times.

Step 10: Plan the play area thoroughly

Now that you have everything ready, you need to plan the play area thoroughly. Keeping in mind the assets you have, including the equipment, furniture, etc., you need to design the interior space so that it can be optimized for the purpose.

There should be a flow of movement in your play area and, everything should be well-organized, ensuring that you can draw the attention of your customers in the first instance. Your decorations should be kept to a minimum, yet attractive.

You can hire an interior decorator to help you sort out the placement of the equipment and organization of your indoor play area.

Step 11: Get insurance for your business

You should get your business insured so that you are protected against huge financial losses in case anything goes astray. You should also get liability insurance that ensures that you get covered against any accident or malpractice.

It could include compensation for workers and equipment liability as well. Liability insurance does not only protect your business, but it also has a protective approach towards you and the other employees you might have for the company.

There might be quite a few insurance providers in the market. You must check and compare each policy with professional aid before you decide to choose one for your business. The terms and policies of the insurances should be read and understood before taking a call.

Step 12: Take professional experience into account

If you are not sure of any particular aspect of the business, seek professional support. You can hire professionals to get your business into place, or you can talk to people with experience and learn from them.

When it comes to setting new business, such as the indoor play area, it would be a good idea to learn from the masters in the field and even hire people for jobs you think you might not be able to handle yourself. It would ensure that you cover all the loopholes in your business and help you grow as a business.

Step 13: Get the best manufacturers

If you are willing to purchase some of the customized equipment for your indoor play area, you need to find the right manufacturer. Talk to people, see what they have to offer and, make sure you get the best out of the lot. It is about kids and, that is something you should never take chances with.

Get the best equipment that would ensure that you can get a cutting edge over your peers in terms of the indoor play area business. Understand what you need and pursue the manufacturers accordingly. Your budget must be kept in mind as well. Try and find people who are willing to provide you with the products you need at the budget you have. Negotiate to get the best deal possible for your business.

Step 14: Market your business to the mass

Once all this is done, it is time for you to market your business. Use social media, traditional marketing methods to let people know about your business and what you have to offer. Be precise and clear when you market your play area to the probable customers.

Let parents know the benefits of your play area, and how you plan to make their life easy and give their wards a better playing experience. Your marketing strategy can help in the growth of your business. Ensure that you market your business right.

Step 15: Analyze your margins and grow your business

In the first few months, analyze your growth and the footfall in your indoor play area. Take feedback from customers and see what they have to say about your service. Appreciate positive feedback and take the negatives in your stride.

Try to understand where you went wrong and what you could have done better. Improve your business strategy based on the analysis and backed up by the feedback from customers. It would help you to grow your business far and wide. Regular analysis of the business is essential in the case of an indoor play area business.

Benefits of indoor playground business

The indoor playground business is not just a random idea, can fetch you good revenue. Some of the benefits of an indoor playground business are as follows:

  • It can help you stay ahead of the competition. If you can cater to something that gives an added benefit to the customers, such as, if there is a play area close to a supermarket, parents might want to leave their wards there while they shop the dailies. 
  • It is a place where families can make positive memories.
  • Each time the customers have a different activity to participate in and, this ensures that the customers stay loyal to your brand.
  • Being a completely safe environment and a zero injury location, parents can leave their kids for long hours without any worries.
  • There is a minimum amount of supervision required from the parents’-end while their kids have a gala time.


Opening an indoor play area is not an easy task. As it concerns kids, special care needs to be taken to make sure that everything gets done properly, and that the kids have a great time while their parents are away or even when they are with them. The safety of the kids should be a priority in the case of these indoor play areas.


1. How much money is needed to start an indoor playground business?

Estimated capital investments can vary considerably depending on the type of playground, the size, and the location. Generally, investments can range from $30,000 to over $200,000.

2. Is there help available for financing an indoor playground business?

Yes. Many banks offer small business and/or franchise loans for playground businesses. Some regional and/or local and state organizations may also provide funds.

3. What type of space is necessary for an indoor playground business?

Depending on the size of the playground, an indoor space of 5,000 square feet or larger is recommended.

4. What safety considerations should I keep in mind when starting an indoor playground business?

Safety is paramount when operating an indoor playground business. All equipment should be checked regularly to make sure that it meets safety guidelines. Staff should also be trained and knowledgeable about playground safety protocols.

5. What types of activities will be available for children at an indoor playground?

The types of activities available vary widely depending on the size and type of playground. Typically, indoor playgrounds feature slides, trampolines, obstacle courses, and other activities that provide physical, social, and intellectual stimulation for children.

6. How often should I change the activities at my indoor playground?

It is recommended that the activities and equipment at any indoor playground should be evaluated and updated on a quarterly basis.

7. What kind of staff do I need to run an indoor playground?

A typical indoor playground business will need employees to staff the facility and manage operations. Employees should be qualified and knowledgeable about playground safety as well as customer service and sales.

8. What kind of regulations and/or standards will I need to comply with when running an indoor playground business?

Indoor playground businesses must adhere to all relevant state, local, and federal safety regulations and standards.

9. How can I attract customers to my indoor playground business?

Some effective ways to attract customers to an indoor playground include offering membership programs and discounts, advertising through social media, and engaging in partnerships with local schools and businesses.

10. Is it important to have liability insurance for an indoor playground business?

Yes. It is highly recommended to purchase liability insurance for an indoor playground business in order to protect the business from any potential lawsuits.

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