Water parks can bring in large scale customers and incomes every year. It is close to $40 million Water Park spending on a global level, according to the International Association of Amusement Parks and Attractions (IAAPA). So, no doubt, opening a water park is a good idea for investment.
What is the water park target market?
The income of the customer is the driving force of the water park industry demand. So, check the income level of the resident before you choose the place for a water park. Usually, province capitals, tourist cities, and densely populated cities are the preferred cities to open a water park. Regularly, every age group can be the target customers of water parks. In tourist cities, tourists will occupy a large portion of the customer base. However, young people and local families, teenagers, will be an essential focus.
Then who will be right for this business? Any business requires an able mind to act smartly. So, entrepreneurs with managed experience or business experience would be the right one for the water park venture. Those who have money at hand and love the environment with adventure can also start this business.
How much does it cost to start a water park?
Before counting the cost of starting a water park, you should have a business plan first. What is your dream park? You had better be clear on all the critical elements of the park. Do you want an indoor one or an outdoor one? A proprietary brand or a franchised one? A seasonal park or a year-round open park? Then you need to think about which are your available financing options. You are a wealthy independent starter, or you need to depend on the investors? The options may include investment bankers, banks, wealthy individuals, and government business loans as well as grants. But lenders will usually require collateral and capital, and cash flow and other financial projections. All of these will impact your start-up costs.
What’s more, other primary costs, such as land purchase, rent, park design, equipment purchase and installation, operational energy cost, insurance, amenities, and staff salary, are also included. We would like to emphasize on the land purchase. Before you choose the location, do research carefully. Choose a place where it is easy for customer access. It is better to be well-populated and centrally located. The traveling time will be the first element that customers consider when going to visit. It is recommended by experience that outdoor water parks require 12-18 acres, and an indoor water park is approximately 8-12 acres. It is an essential investment when starting a water park. So make a clear decides, or you have to reconsider the killer whale aquarium and the extra water slide, as well as other water park equipment. To save costs, you can also buy enough land but start with the essential parts and fulfill the rest in a development period. Some starters would want to know where they can find a water park business mentor. In fact, a professional water park equipment supplier is an excellent teacher. For example, Dalang offers professional water park equipment and what you need by a one-step service.
How long can a water park investment break-even?
The water park industry has a rapid development in the past ten years. It is expected to have a more brilliant growth in the future. An approximately 3.5% annual increase is curtained according to the present data. Even though there has been not any published information that refers to the water park profit and break-even time taken, we know that fast operation and stronger management and practical sales skills match with the right indication. It will help you succeed and get the invested money back sooner.
Steps of opening a water park.
Step 1: Make a business plan.
A clear business plan can help you figure out why, what, when, where, and how. It helps you to avoid missing things and map out the specifics of the business. A feasible plan guarantees your business to be prepared on time and save costs. Below are essential and need to be considered:
- What are your start-up costs?
- Who is the target market?
- How long will you take to break even?
- What is your business’s name?
It is good for you that you can go and work with Dalang, which can give your advice base on our ten years’ experience data.
Step 2: Choose a suitable location for the water park
Choose an appropriate place for the water park is one of the most challenging things in this business. Water park requests a large scale because the location should be meet all the requirements. Firstly, the chosen location should meet the law of the zone and achieve your vision of the business. What your target customers are is another thing you should consider. You just want to entertain the local people or wish to attract tourists and visitors from other areas also. Then, it is better to choose a place near the airport or railway station. Traveling distance affects customers’ visiting decide. Long-distance would let customers change their minds and go to other places. Besides, you should consider picking up a site with other attractive activities for people, such as tourist spots, shopping malls, golf courses, and other entertaining centers. A complimentary place can bring you with customers. Finally, you can get help from the real estate agent. They find out the right place with your budget and vision and shorten your investing period.
Step 3: Define a business name suitable for a water park.
Before you go into the next step, you need to decide your business with a proper name. No matter you set up a company, apply for permits and license or buy insurance as well as you promote, you need to let others know who you are and remember you. So, you should ensure the name you decide to use is unique, memorable, and easily identifiable. You can apply for intellectual property protection to ensure that your company’s name, design, logo, and any concept to avoid plagiarism.
Step 4: Set up a legal entity.
A legal entity can help your water park protect privacy and stay compliant. When there is a problem, a licensed business company can protect you from being personally liable. You can consider using consulting. It is great to register for taxes and open a business bank account at the same time.
Step 5: Permits and license obtain
Water park operation is a unique business that requests a very high safety guarantee. The government requires specific permits and licenses to open a water park. It can bring with your hefty fines or even let your business shut down if you fail in obtaining necessary permits and licenses.
Step 6: Set up your business web
A business website is a place people can learn more about you and the services you offer. Media is a very stronger promotion power nowadays. Do make good use of it.
Step 7: Build a team
You cannot operate a water park alone. So, building a team is necessary when it is time. It is suggested that to hire members several months before opening day. Safety is the top priority. Train your team on safety standards and practice operational standards.
Step 8: Establish manage rulers.
You must have some business and leadership skills in the part. How do you want your customers to be serviced, and how you can let your teamwork as you wish? Set up the process of the service and establish advanced sales, performance appraisal, and career development systems. Then you can operate effectively. Any unplanned operation will lead to failure in the business.
What is the development potential of a water park?
Most water parks are starting small. It is no doubted that insist on creating hot and attractive activities, updating your price strategies and marketing ideas are the most useful ways to dig the development potential of a water park. However, park expansion is recognized as the real development potential of a water park. The extension allows customers a well-rounded experience besides the upgrading water park equipment, and park theme changed. Its all-in-one fun play supply will attract visitors all around the world. Some virtually untapped places such as Asia are in high demand for this business project where might be a wise choice for an entrepreneur.
Now that you have gained more knowledge of opening a water park, you should also consider the water park equipment manufacturer. A case in point is Dalang, who is specializing in “Feasibility Studying, Master Planning. Manufacturing Installation, After Service and Management Water Park”. Until now, it had typical projects covered in Asian, Africa, Europe, North America, South America and Oceania.
Dalang had been the most authoritative and reliant water park equipment manufacturer all over the world. Thus, when considering choosing a reliable water park equipment manufacturer, Dalang would be your top pick!