This plan details the creation and operation of CabinFever Child Fun Center. This plan describes the business plans, operations methods, 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. Safety-tested equipment has been approved and employees have received training in first aid and child safety. Parents will have access to special seating areas that allow them to watch their children in action and safety, even in the darkest and coldest months of winter. While they wait, they can also buy snacks and drinks from a limited number.
Derek Giesbrecht (advisor), Brian Solum (owner), is responsible for the design, construction, and development the daily operations as outlined in this plan. Soft Play, LLC is a leader in indoor playground manufacturing. Derek has been involved in Active Play for many years. Soft Play is now the market leader in Family Entertainment. Brian is a former estate agent and father of four. He also has more than seven year experience in child care. Brian will be supported with a customer-focused and team-oriented staff. Cabin Fever will retain a CPA firm for professional company audits, preparation of taxes and payroll, as well as to serve as a business consultant in order to help with setting achievable long-term strategic goals.
Cabin Fever’s potential sales growth is estimated at $158,000 based on current prices in the market for child recreation. With good management, we expect a revenue growth of five percent annually. These ratios are applicable for the first one year.
- Gross Margin above 95%
- Net Profit Margin above 12%
- Pre-tax Return of Assets above 20%
- The net worth of the United States is more than $76,000 in year three
We will take all measures to minimize the risk factors for Cabin Fever’’s success:
- The ability to obtain sufficient capital for building and covering the costs of initial operation. All investor capital will remain in escrow till the project is fully funded.
- Lower overhead costs will increase bottom-line profit.
- Building a sufficient customer base. We have found the perfect location by using demographics. The aggressive marketing program we use will guarantee the desired results.
- It is essential to involve the community in order to show how the business contributes to a better standard of living.
- All payments can be made in cash or by check. This eliminates the need to invoice and collect.
- 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.
- Listen to customers’ needs and provide entertainment and activities that are safe, fun, and enjoyable.
- Establish a safety, security, and accountability system for the property between staff, clients and the general public.
1.2 Keys to Success
- Attract 30% of my target market to use “Cabin Fever” 1.5 times per month in the 1st year. Based on demographic and census statistics, this objective would allow me to bring 3,600 children and 1,080 adults into my office in the 1st-year.
- Gain 40% market share in 3 years.
- At the end of the 3rd year, reduce debt load by 37%