If you’re looking to start an amusement parks business, then check out our step-by-step guide on how to start one.
Amusement parks are perfect for people who enjoy having fun and making money at the same time. We’re all familiar with the successes of Disneyland, Knott’s Berry Farm, and Cedar Point.
To start a successful amusement park business, you need to invest large amounts of cash and plan carefully. You may also need a lot of empty space and water for your new attraction.
The amusement parks business has been growing steadily for the last five years, due in large part to an increase in international and domestic visitors and rising consumer spending.
As the global population continues to grow, so too will the demand for leisure activities. As a result, we expect tourism spending to rise over the next five years as the world’s economies improve.
When starting an adventure theme parks business, you need to prepare a business viability report first. It helps you plan for the future by providing guidelines for physical planning and physical requirements, such as total land space needed, building space requirements, etc.
It also suggests that you hire an expert team to help you create the plan and execute it correctly. Consult with experts like project managers, architects, and civil engineering contractors to get the plan done.
Here are the 9 Steps to Start a Profitable Amusement Park Business
1. Create an Amusement Park Business Plan
If you want to start a new company, prepare a feasibility study first. Your objectives, vision, and mission statements should be included in the feasibility study. A detailed market analysis should be done before developing a proper strategy for your company.
Planning for financial success includes deciding on a budget, financing options, projected revenues, and expenses. You’ll need to determine the size of the park and its amenities, staff needs, and operating costs.
There are several important topics that need to be addressed in your business plans. Here are some of them:
- Initial and recurring costs
- Target customers
- Pricing plan
- Hiring manpower
- What’s your expected profit?
- How and where to find customers
2. Amusement Park Business Legalities
First, you should register your amusement park company. An amusement park company requires several licenses and permits, depending upon where it operates.
You should get these licenses before starting any operation. Also, you should seek advice from a lawyer if you are not certain about how to set up your amusement park company.
For example, in America, many small businesses choose to register their company as an LLC because they want to protect their personal properties from creditors and other liabilities.
3. Name your Business
Choose a good, catchy, memorable, and descriptive title for your business. It will help attract new customers and enhance your brand image.
Read more about naming your business here.
4. Financing Options For Amusement Park
To get started, you need to buy some equipment and pay off any loans you may already have. If you don’t have enough cash, you could ask an angel investor or VC to invest in your business.
5. Acquire Land For Amusement Park
To start an online store, you need a lot of lands. You should select a large sized piece of land on the roadside that meets up the requirements for entire equipment accommodations.
You can either purchase a piece of real estate or rent one for a longer period of time. If you’re strapped for cash, you can also consider an indoor amusement theme parkside idea. For that, you’ll first have to look for a small plot of real estate in a good location in town.
6. Hire Manpower
To establish an entertainment theme park, you need to hire experts who know how to operate, train staff properly, and deal with customers.
7. Purchase Equipment
Choose the right kind of ride for each age group. Also, choose the appropriate type of bike for each age group.
Make sure that you purchase quality products from reputable suppliers. Look for warranties, installation fees, and after-sales services.
Since you need to arrange for meals and drinks inside the parks, you could either set up your own restaurant or rent out space to restaurants that already exist.
Remember that you’re not selling anything, but rather providing an unforgettable fun time for your customers at your amusement park.
8. Pricing Plan
Pricing is an important part of any business. You may want to consider offering discounts for group visits or schools. Apart from ticket prices, you could also sell tickets for a full day (or even a week) at a discount.
9. Promote Your Amusement Park
There are several different methods you can use to advertise amusement parks. Instead of advertising, you can let people know by posting ads in kids’ magazines and children’s TV shows.
Create your own website! Upload exciting video clips there. You can provide an online ticket-purchasing system too. Set up business partnerships with travel agencies. Promote your amusement parks on social networking sites.
Frequently Asked Questions on Amusement Park Business
How much does it cost to open amusement parks?
The amount of money invested in a waterpark depends upon the size of the park. A smaller waterpark may require only $50,000 to $100,000 to build, whereas a larger one could cost upwards of $500,000. An indoor waterpark costs about $10 million to $15 million.
What is the annual revenue for an amusement park?
According to the latest survey by Statista, the global revenue from amusement and theme parks will reach $22 billion in 2019. Industry analysts expect a higher growth rate of 5.8% for the next five-year period.
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