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  • #995833
    mrscybertranz
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    I am wanting to open an indoor play centre for children 1-12 years old. The place I want to open it only has a population for 8000 people. Total kids under 14 is 1200. Anyone currently running a play centre with such little population? There is currently nothing like that there or even close by (its my home town)

    #1204170
    Dave Gillen – Former FS Concierge
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    Hello [USER=88728]@mrscybertranz[/USER] and welcome to the forums! Hopefully we have some members with some relevant experience to point you in the right direction. Sounds like a fun idea so good luck with it. :)

    Dave

    #1204171
    Silenkurii
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    I would really look into the costs of setting up an indoor play centre first and then you can decide if the demographics are going to be enough to sustain.

    An indoor play centre can be anywhere from 200k to 1mil with the general cost for a reasonable sized facility being at around 400-500k. There is a lot of money tied up in the kitchen & catering area and also the playground equipment can cost up to 100k and over.

    Then you also have to think about council permits for parking and how many people you’re expecting will come to the premises etc. Obviously, the location is very important and with that sometimes, comes a lot of red tape

    You sound like you live in a rural area, but in case you you’re not, don’t forget about surrounding suburbs and their demographics. People will travel to a good place if the name is worth it. Also think about locations where many people drive through to get somewhere else as they may pop in.

    GL.

    #1204172
    James Millar
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    1200 is getting to the light end. The tough thing is that not all rural areas are cheap in terms of commercial rents which means you effectively get less value. I’ve seen some country towns run empty stores because the landlords won’t budge on lease price.

    For example, at a guess it would still need to turnover over say $300k to cover costs, staff etc and working backwards that’s $5.7k a week. At an average spend of $ 20 per kid you would need in the order of 300 kids through a week. That’s one quarter of the towns kids coming back each week (assuming not dragging people from surrounding towns). How close are you to surrounding towns and could you attract some of their population (do their towns have solutions already)?

    I think the key with such a small population is to create a business activity that has very low fixed overhead. That may mean leveraging other premises for events. ie rent a local sports centre, pavilion, community centre, church and run regular temporary activities. Get some inflatable’s (they are relatively cheap) and you can easily setup and remove within a couple of hours.

    Good luck. It’s always great to hear people bringing new activities to kids in regional towns. They often miss out.

    Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900
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