Sample Business Plan on Inflatable Bounce House business plan

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EXECUTIVE SUMMARY                                                         


The Business Concept


Bounce House, Inc. (Bounce House or the Company) will be a Bounce House for all children. It will contain all types of indoor inflatable structures for the children to play and exercise their gross motor skills. The Company will provide an opportunity for children to play and exercise regardless of weather conditions. Parents will Gurnee, Illinois.


The proposed facility will house inflatable play structures that are safe and fun. It will be a structured and safe environment with age appropriate music and games at all times. Children will be able to run and jump and use their leg and arm muscles. This will help them develop their social and sports skills and help prevent some children from being overweight.


Bounce House will be a place where kids of all ages (even babies) will have something to do.  Each section will have age appropriate activities including indoor jumping inflatable structures, tunnels, slides, tumbling mats, basketball hoops, large parachutes, balance beams, punching bags and baby swings sets.


Excellent Market Opportunity

Bounce House will take advantage of several factors to drive its growth. The local area is in need of a facility like this because kids have no indoor place that provides everything that Bounce House will provide. Bounce House will be an environment that includes exercise and social exposure in a kid-friendly, clean, and safe environment. It will be priced reasonably.


The Company has a new and fresh idea. The market area is ready for a new product geared towards children. The Company’s services harkens back to the American idea of customer service where the owners work at the facility and care about the product and its’ presentation to the customers.  The Company will bring old fashioned customer service to children and their parents.





The only activity for kids in the area is a rink side and an ice skating rink. However, this has been taken over by many teenagers and now it is a hang out spot for older kids. Younger children have lots of energy to release from their body and they need activities like running and jumping climbing on things.


The Company will grow because of the need for this type of facility in area. It will be fun and will be a place to go when the outside weather is bad. All parents want their children to be healthy and the Bounce House will keep the children moving and exercising. The Company will help strengthen society and family fun.


Profitable Growth

Bounce House expects to gain a profitable market share within a very short period of time. Determinations have been made for the size of the market, amounts of budgeted advertising and promotional dollars, the number and kinds of distribution channels and the competitive landscape.


Projections call for the Company to generate revenues of $50,000 in its first twelve months. Bounce House will achieve strong growth over the next several years, reaching $90,000 in revenues and more than $18,000 of net income by the fifth year.


The Opportunity

Indoor Playground Industry Growth


In the children’s entertainment and recreation industry competition is highly diverse and includes many activities enjoyed by parents and children alike, such as:


w        Television

w        Libraries

w        YMCA's

w        Health clubs

w        Indoor and outdoor parks

w        Recreation centers

w        Movies

w        Zoos 

w        Other activities


Indoor playgrounds are designed specifically for children and families. They offer a safe, clean indoor environment for physical activity. Often these facilities provide children with the skill development opportunities that parents desire.


Competition in the indoor playground industry is fragmented because the market space is relatively new. Possessing over 250 business locations, the only company with a strong national presence is Surprise Land; the business has locations in the United States, Canada, Mexico, and Europe.


Youth Spending Power


By 2010, according to research studies reported in a MSN Money Central article, America's youth will command more than $21 billion in pocket money. Here's how they're dropping their cash as indicated from a 2004 TNS research firm study:


w        79% of boys from ages 10-to-14 spend their money on games, as compared to 42% of girls

w        Of all U.S. kids, spending breaks down as:

o       Games (63%)

o       Clothes (31%)

o       CDs (27%)


Keith Holzmueller, vice president of TNS' Research Insights Group said, "When shopping with their parents, kids are often allowed to make choices for themselves, increasing their overall spending power.


Estimates show that today's kids (even children 3 and under) have tremendous spending power. In a 2006 report, The Kids' Market in the U.S., from market-research publisher Packaged Facts, the following was stated, “Kids aged 3-to-11 comprise a U.S. population subgroup of 36 million that had a collective $18 billion in purchasing power in 2005.”


By 2010, children are predicted to command $21.4 billion in discretionary spending, with annual family expenditures on kids' products set to reach approximately $143 billion. 9


Inflatable Amusements


It wasn’t long ago that people had no concept of the word inflatable in respect to amusements and how they would literally change the party/event industry by leaps and bounds.  Inflatable devices provide a unique form of entertainment at:


Ø      Theme Parks

Ø      Birthday Parties

Ø      Exhibitions

Ø      Social Events


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