What do you need to know to start an educational children’s play area?
Well, firstly I’m going to side-step anything related to the experience itself for the kids – this is something you’ll need professional, qualified advice on (if you aren’t, yourself, qualified in this area), to ensure the play area is educational yet still fun and engaging.
After all, if the kids don’t want to come back, the business model won’t work, no matter how well you structure it.
Secondly, I’m also purposely avoiding any discussion around regulations and certification requirements when working with, and provided facilities for, children. This is Country/State/Area specific and should be researched thoroughly by yourself, to ensure you will meet all these requirements upon launch and thereafter.
But here’s some advice I’d give regarding the business infrastructure and establishment:
1. Don’t pay rent. Negotiate a 6 month (minimum) rent free term, with a 12 month break clause included on any lease agreement (landlords will want you to commit for a minimum of 5 years – but if it doesn’t work, you need to avoid that noose and cover your downside)
If you find all the commercial landlords to be too stubborn (most we’ve encountered, are), and if you’re lucky enough to find a unit of the size you’re after for sale, and if you can convince a bank to give you a commercial mortgage (lot of ‘ifs’ there) but IF you can do all these things – put the majority of your capital down as a deposit and buy the unit. Then test the idea in the leanest possible way.
And if it doesn’t work then – you have a valuable asset that (provided you have other means of paying the commercial rent during any void period whilst putting it up for let) you can let out and earn a return on your capital from.
2. Make sure whatever fixtures and fittings you put in there can be easily liquidised and/or returned. Request a guaranteed buy-back price from the supplier, so you know what the definite residual value of the assets will be in 6-12 months time, should you need to exit
3. Automate as many processes as you (legally) can. Automated entry systems, concession-based cafe arrangement (charge rent and get someone else to run this entire operation), basically, employ as few people as you possibly can. Money is far better spent on equipment (which has residual value and value on the books) than people (which can walk away after taking a year’s pay and leave you with zero residual value). Automation has worked far better than delegation in my experience, especially in roles that involve zero value adding processes (day-to-day maintenance and operational type roles)
4. Basically, the gist of the above 3 points are ultimately to reduce your initial risk and outlay. You don’t really want to start a project expecting it to fail, but if you build it with that expectation in-mind, you tend to cover off most downsides. Remove any frills, outsource and automate where you can, and go in to test the market with the most basic offering that you can, initially.
Then if it shows promise, take feedback from the visitors and enhance their experience with tweaks and modifications thereafter.
You’ll also probably need some form of unique angle – a USP (Unique Selling Point). To differentiate from any other kids play facility in the area. Visit these places, read reviews online, pick up on areas where they are significantly failing their audience, and use that as the focus for your USP.
The concept is ultimately to rig the entire thing in your favour. From the outside it should look like a big risk. But from the inside, it’s not all that risky.
I hope that answers your question ‘What Do I Need to Know to Start an Educational Children’s Play Area’.
Good luck!