Business Plan: Happy Hours

The Project
Happy Hours will be a new company offering Indoor Playground/Soft play recreation center for Kids along with a Restaurant. Happy Hours will be designed to offer parents the full range of services and activities necessary to host successful private parties at our facility. It will allow parents to relieve of the time, expense, and stress normally associated with organizing childrens parties. They will just need to select party options best suited to their needs and can sit back and enjoy themselves as we will take responsibility for all party accommodations and last minute developments. The Company will set itself apart from other child entertainment facilities that may offer only one or two types of services. Parents desire these services and are frustrated because they must go to several different businesses or travel long distances to find these types of activities. The focus of the company will be Play Care and Party Place. The services provided will be exemplary. The business atmosphere will be clean, friendly and upscale where customers will be comfortable leaving their children. We will offer a personal touch, fun innovative learning through play, and a memorable hassle-free Birthday party. The company will also offer a cafe and comfortable seating area so that parents can relax over a coffee while their children enjoy themselves. The business will offer event photos of children's birthday parties (taken by a professional photographer), a unique concept in this type of industry. The company will strive to become a one stop destination for Kids Birthday Parties & play area. Happy Hours for Kids will offer: Large Playscape, Small Movie Theatre, Playhouse area, Staff-led Group activities, Theme Nights, Art and crafts, Karaoke stage, Playstation2, Xbox, GameCube, Separate Toddler area, Educational toys, Birthday parties & caf for parents.

Keys to Success
The keys to success in the business will be: Superior Customer Service: High-quality hourly care and service. Environment: Provide a clean, upscale, enjoyable environment conducive to giving professional trusting service. Convenience: Offer clients a wide range of services in one environment. Location: Provide an easily accessible location for customer convenience. Reputation: Credibility, integrity, and 100% dedication. Indoor activities for year-round entertainment. Facility designed to curb overcrowding. Seasoned management team.

Location
Out of all the factors mentioned above, location is the most important factor in this business as the success of the business will depend a lot on it. The company can start its operation by opening a center in sector 17 or sector 35 as these are the main shopping & commercial center of Chandigarh. Sector 17, a vast commercial complex is a pedestrian's paradise. It provides something for everyone, from hectic business activity to unhurried window shopping and even crowd gazing in the vicinity of the fountain. Air-conditioned showrooms and departmental stores cater to the needs of shoppers but what it is missing is a Kids play area, where Parents can drop in their kids for an hour or two & shop around carefree.

The Operational Plan

The Operational Plan explains the normal operating procedures of the play area including, the type and number of staff involved, the opening hours and general health and safety / security systems that will be in place. This section provides a complete understanding of how this indoor play centre will operate on a day to day basis. Happy Hours will be open 7 days a week & 365 days a year. As researched, a major share of income is generated on Saturday & Sunday & also during after school hours particularly on Fridays. Opening hours for the center will be from 10:30 am till 8:30 Pm, with extended hours on weekend & during festivals (adjustments to the working hours can be made once we get started). The Staffing levels are difficult to predict since it depends upon number of factors like size of the center, operation hours etc. The basic outline of the staffing is mentioned below. 1. 2. 3. 4. 5. Center Manager 3 executives for play area, 3 for caf area. 2 Chefs 2 Security Guards 2 Cleaning staff

Of great concern when operating or investing in an indoor play centre is the health and safety of the children and parents using the facility. The play area has to be operated with the correct health and safety systems and security measures in place. The signing in and out systems, fire evacuation procedures and health, hygiene and safety need to be in order; they will also constantly require amending so as not to become outdated.

Expansion Plans
It is important to consider where the business will be beyond its first year of operation, and as such we will need to consider how we intend to expand the business in the years that follow. This could include setting up further soft play centers (within Chandigarh & in other cities in Punjab like Ludhiana, Jallandhar & Amritsar), expanding the activities within the existing centre such as adding a ceramic studio, an interactive area or coin operated machines; increasing the party rooms to offer a wider range of parties. The possibilities are almost endless so it is important to be realistic with our plans. The reasons for wanting to expand in a particular direction, the level of investment that may be involved and how long it will take to implement the changes must be well researched and justified.

Market Research
Before entering into any business it is vitally important to conduct comprehensive market research to understand all the factors that could contribute to the businesss success or failure. There are many forms of market research that can be undertaken in relation to setting up a soft play centre. Undertaking comprehensive market research will give vital information on which to base the business.

Local Area Demographics

Research indicates that the prime market for a Kids Play area is near urban neighborhoods comprised of middle- to upper- income families. These families search for ways to engage their children that are more than just activities their children passively enjoy. Sector 17 appears to be an ideal location to start off the operations for Happy Hours because of the following reasons: 1. It is centrally located. 2. As researched, total no of people visiting sector 17 ranges between 2500-3000 on weekdays, whereas the number gets doubled or more than that on weekends & Festivals. 3. It is very famous among locals & tourists. Another place which seems appropriate to start the operations is Sector 35-C Market because of the following reasons: 1. Rents are on lower side in comparison to Sector 17. 2. Being an upcoming market, new showrooms are opening up in the category of apparels, Food joints etc.

3. Total no of people visiting sector 35 market on weekdays are 1500-2000 & the same gets doubled on weekends & Festivals. 4. Sector 35 caters to population of south Chandigarh & Mohali.

Pricing
Pricing will be one of the most important factors in determining the long term success of any business. Although there are many other aspects that will have as big an impact, if not more, such as the quality of service from staff, the level of cleanliness and the overall offering provided, it is important for us to set our pricing at the right level for the market that we are targeting.

Pricing for Happy Hours:

1Hour: Rs 150.00 1Hour 30mins: Rs 175.00 2Hours: Rs 200.00 Extended play time @ Rs. 50 per hour (After 1st hour)

Party & Group Packages Prices (Tentative)

Weekend Birthday Package: Rs 4000.00 - Friday, Saturday and Sunday only! Weekday Birthday Package: Rs 3500.00 - Monday through Thursday only! (Add RS 1000.00 if you would like a "themed" party) Package includes: Free admission for the party child! Unlimited playtime on our unique playground for all guests on the day of the party Use of a private party room for one and a half hours Up to 10 kids are included in the package. There is a charge of Rs 300/child if you have more than 10 kids. Free party supplies--cups, plates, utensils, tablecloths, napkins and candles. A Party Coordinator Party set-up, clean up, and help with your party 20 balloons in the color of your choice Free printable invitations Special gift for the birthday child

Direct competition

This includes any other soft play centre(s) within the local area. It is very wise to understand their pricing levels in relation to their proposition. This will give us an idea of what the market is prepared to pay and therefore what is an acceptable level for us to charge. It is very dangerous to get into a price war with local indoor play centre competitors, as this normally leads to prices being dropped dramatically by all concerned, and means everyone but the consumer loses. In addition, consider how Happy Hours can offer something different and yet valuable to prospective customers. Differentiation can be achieved in many ways including a varied soft play experience, after-school clubs, ceramic cafes and our own ideas of what is missing from Indoor Play Centre(s) that already exist. Presently, in Sector 17, there is one play area, Kidsown, spread across approximately 5000 sq. ft. of indoor space. Kidsown is set up on the first and the second floor of a building adjoining the parking space (photographs attached). Following are the details of the pricing, timings, birthday and school packages being offered by Kidsown Timings : During School Vacations(Summer, Winter, Dusshera & Diwali) and public days a week, the timings are 10 am to 8 pm. holidays, 7

During school days, Monday closed and for the rest of the week the timings are 12 pm to 8 pm Pricing : Price Rs. 200 Rs.250 Rs. 350 Playtime 1 hour visit 1 hour 30 minute visit 2 hours 30 minute visit

Kidsown also offers membership passes of 10 tickets each. Cool pass(10 visits each) Rs. 1 hour visit

Super cool pass(10 visits each) Mega cool pass(10 visits each)

Rs. Rs.

1 hour 30 minute visit 2 hours 30 minute visit

These passes are valid for 3 months. Birthday Packages : The birthday packages being offered include Admission to the premises Invitations Laid table Party themes and decorations Play and Food (charged separately) Free return pass for the Birthday child Party timings (1 hr, 30 min/2 hrs. 30 min) depending on the package taken Return Gift (Charged extra)

School Packages and Summer Camps : Kidsown offers special packages to schools and for summer camp, as per the requirements. The Sector 35 market does not have any playarea currently but has a few food giants that offer birthday party celebration at very competitive rates. McDonalds, KFC, Pizza Hut are a few of them.

Non-direct competition This includes any other activity a parent and child could be doing instead of visiting a soft play centre. These include the organisations such as sport clubs, swimming pools, through to often less considered activities such as the local school offering extra curricular activities(music & dance, martial arts etc.). We can link up with some prestigious local school to offer special price sessions throughout the year in return for having a stall promoting our soft play centre at the school fete. Also, short duration workshops (pottery, clay crafting, painting, etc.) can be organized during the festival season in such schools.

Marketing Plans

Success will be based on the ability to become known within the community. Happy Hours for Kids must focus on the specific market segments whose needs match its offerings. Focusing on targeted segments is the key to the company's future. Therefore, marketing messages will be focused on the services offered. We will develop our message, communicate it, and fulfill our commitment to excellence. Logo & Identity Development: A professional logo will be developed. Happy Hours will be promoted through a broad mix of identity pieces including business cards, stationery, car signage, and other communications. Brochures: A brochure will be designed to communicate our presence, the services we offer, and the clients we serve in the city. Flyers: Flyers will be designed for posting at city locations that attract high traffic volumes of consumers within our target market, such as: Local grocery stores and dry cleaners OB/Gyn offices Local child care centers Local children's clothing stores (i.e. Kapsons, Lilliput etc) Local stores that carry children's items (i.e. Stationary houses, Gift shops etc) Local bookstores ~ children's book section (i.e., Barnes and Noble, and Teachers Tools) Advertising: Ads will be placed in publications that cater to the demographics of our target market. Public Relations: As owners, we will promote our company and it's benefits to the community through efforts to have articles published in new media and efforts to gain coverage on local radio and television programming. Potential media outlets include: Local schools PTA newsletters

Direct Mail: Direct mail channels will be used to initially introduce our presence to the community and attract first time visitors. The need for this type of advertising will taper off as repeat and referral business increases. Website: All brochures, flyers and other marketing tools will promote our website, detailing our services that benefit the community. Our website will also provide all information about us, our operational hours, schedules of events. Email: Email will be used to connect with our clients frequently through monthly newsletters and updates on upcoming events and special offers. Events: Special events, including a grand opening and special holiday parties, will be promoted to increase visibility in the community and to attract first time or infrequent visitors. Elementary Schools: Elementary Schools in search of field trip alternatives can select the Happy Hours for Kids as a destination that combines playtime with learning interactions. While this revenue would not be the company's primary focus, its potential could increase revenue base by building strong community relations. Online Marketing: Your online presence can be just as effective as some of the off-line marketing, but can very often be a lot more cost effective, up to date and flexible. There are a host of social marketing applications that all soft play centres should be utilising to advertise their business, all of which are free to use. These include sites such as Twitter, Facebook and Blogger and can provide the operators with a direct and up to date line of communication with their customers, so they can begin to influence their decisions in a positive manner Financial requirements and forecasts The final section of your Business Plan will be the financial requirements and forecasts. This section will give the reader an overview of how much money you need to get the project set up, where you expect to get that money from, and how you are expecting your business to perform over the first 3 years of operation. As with the rest of the Business Plan, the details you submit need to be as accurate and realistic as possible, as they will also act as blueprint for you as you go through the process of setting up, as well as being of use to the reader. Set up costs Here you will outline every significant cost you are likely to incur when setting up your soft play centre, to provide the reader with a summary of the total project set up cost. Set up costs could include: Play Equipment 15 Lacs This includes not only the soft play equipment, but also items

such as interactive equipment, ceramic studios, battery go karts, free play areas, kids fitness equipment etc. it will take up a large part of your overall budget (anything from 20,000 to 200,000 depending on the size of your centre), but be careful to get the right mix of products and do not think that just by building the biggest soft play area, you will be offering the best solution for your customers. Building works 10 Lacs This includes any alterations, internal or external you will be making to the building, and having to pay for yourself. For a soft play centre it is quite likely this will include interior work such as building toilet blocks, reception areas, kitchen/caf area (link to kitchen article), party rooms and decoration. It should also include any external work related to signage or car parking. Marketing 10 Lacs This includes all marketing that you will be completing during your pre-launch stage, both on and offline, but should not include your ongoing marketing costs. Planning/Architect/Building Reg fees This includes everyone involved with submitting a change of useplanning application (see our guide on planning permission) and complying with local authority building regulations. Working Capital This includes money you will need to keep the business afloat, normally during the first 3 months of operation. This should be enough to cover your fixed and variable costs during this period to allow for the fact that the business may take time to build up. Fixture and fittings This includes all items that are required to get your soft play centre operational. For a soft play centre this could include; tables and chairs, party furniture, kitchen equipment (link to kitchen article), carpet/flooring, tills, heating systems and air conditioning systems. Security deposit This includes any deposit required by your landlord to secure your building. Quite often this can be the equivalent of 3 months rent, so it is important to allow for this significant cost when setting up.
Funding Required On this page you will outline to the reader exactly how you propose to fund the project. Here you should detail your reasons for needing the amount of money requested, how much of your own funds you are willing to invest and where you expect to get any additional funding required. It is highly unlikely that you will be able to secure funding for your project if you do not have any of your own funds to invest, and is properly not advisable to set up this type of business on that basis.

Ideally you will be borrowing no more than 50 to 60% of your total project set up cost, with the rest being provided by you, family and friends or other business partners/shareholders. The amount you actually borrow will have a dramatic affect on your monthly repayments, and as such the cashflow of your business. Any potential investor or bank manager will take this into consideration before investing in your business or lending money to you. In terms of borrowing money, the 2 most traditional methods are Asset Finance (compare sample financial forecast will provide you with a more in depth look at this section and the items to consider when compiling your forecasts. This section of the Business Plan should consist of a 3 year Cashflow Forecast and a 3 year Profit and Loss Account. As the titles indicate, the Cashflow Forecast is looking purely at the cash situation of the business at any given time, and the Profit and Loss Account provides details of the overall profit or loss of the business each year. It is often advisable to work with a professional organisation or person (compare Soft Play Consultants) when compiling forecasts to ensure every little detail is covered, and that the figures are above all realistic. This is possibly the most important section of your Business Plan, and you will need to have a good understanding of your figures when you meet with potential investors or Bank Managers. Strategy and Implementation Summary Happy Hours will succeed by offering its clients' children a safe and secure care environment, and close personal attention. The goals of the center are dual-sided: to help parents feel good about the care of their children, and to make it a safe, educational, and fun experience for the child. Competitive Edge Happy Hours for Kids' services will be positioned to provide customers with a premium amusement and entertainment experience Charge a premium price (per industry standards) but not exceed what the market can bear Obtain all appropriate licensing and certifications Thorough pre-hire background screenings performed on all individuals before hired for employment. Innovative, unique birthday parties The personal-touch in a family-friendly atmosphere that only Happy Hours for Kids can provide The convenience of drop-in play care, in the same location where parents can do shopping & other work.

STEP 5; Conclusion The aim of this document was to provide an overview of the process involved in compiling a Business Plan specifically for those looking to set up a soft play centre. As you can see there is a large amount of work involved in putting together such a Plan, but this should not deter those entrepreneurs with the drive, ambition and determination to establish a successful and profitable indoor play centre. The Business Plan should be seen as a very useful tool for all would be operators, as it provides a blueprint for your soft play centre and how it will function and operate to achieve the results you desire. It will help to provide a clear picture of areas in which you need to build upon and make improvements, and also highlight areas in which you are particularly strong and can use as a selling point for your business. We would strongly advise anyone looking to establish a soft play centre to compile a Business Plan, as not to do so could seriously impact the success and profitability of your play centre moving forward. Each individuals situation will be different during the set up process of a soft play centre, and as such there may be items that are not included in this document which may be important in your case, and equally we may have talked about certain aspects that will not apply which you may choose to ignore. This version of How to Write a Business Plan for a Soft Play centre will be updated as we receive feedback from our users as they use this document in real life situations, so we can help to increase the accuracy and relevance of its contents. Reference Websites
http://www.hopnplay.com/

Start-up Summary The company will obtain use of a rented structure. Start-up costs will cover a number of details to convert the structure to suit the company's concept both visually and functionally. Included in start-up costs are all the necessary expenditures to cover the preopening, hiring, staff training, addition and revision of equipment needs, supplying toys, soft play equipment, inventory, and other essentials. Start-up Requirements

Start-up Expenses (In Rs) Rent (Per Month) Computer - Administrative Marketing and marketing strategy Architect/Remodeling Equipment (i.e. toys) Projector & Screen Office Supplies Total Start-up Expenses Start-up Assets Cash Required Start-up Inventory Other Current Assets Long-term Assets Total Assets Total Requirements $65,000 $1,000 $2,500 $14,000 $82,500 $138,250 2,25,000 50,000 10,00,000 2,00,000 20,00,000 1,00,000 20,000 14,95,000