Water park business plan: from idea to profit
In recent years, we can observe the following situation: in the UAE, the demand for water park services never decreases; rather, it grows in tandem with the increase in tourist traffic. This is an excellent activity for people who enjoy swimming and experiencing intense attractions, as well as for families. We may conclude that water parks are a profitable company based on the strong demand and occupancy rate of water parks in the United Arab Emirates. Everyone wins: the investor receives a profitable project with a quick payback period, and customers get to enjoy a high-quality holiday and diversify their free time. However, there are some nuances.
A significant and consistent flow of consumers is the only way to ensure a strong income from the water park. To assure it, the entrepreneur must consider a variety of critical issues, such as the target audience's interest, tourist safety, comfort, pricing policy, and so on. Furthermore, because it is a complicated and massive technical construction, the water park necessitates a considerable start-up capital. As a result, responsibility for budgeting is required. Everything contributes to the development of a well-thought-out business plan. Among its duties are determining the water park's level of financial efficiency, strategies to secure loans or attract investors, establishing prospects, business hazards, and the algorithm for opening a water park. Simply defined, a business plan is a document that explains everything, absolutely everything: from the smallest details to the most fundamental features of the water park.
Obviously, preparing such a paper is a very responsible task. You will acquire a loan and attract an investor if you have a clear business plan that is based on trustworthy data and real research. The entrepreneur should have a comprehensive understanding of the market into which he is venturing, as well as future goals and elements that could jeopardize the operation of the water park.
Let's take a look at the most important aspects of a water park business plan.
Summarizing a brief plan
The entrepreneur briefly outlines his idea, the concept of the future water park, in this section.It is vital to provide a general overview of the projected enterprise. A master plan for the water park, architectural solutions to be implemented, project completion timeline, and estimated cost should all be included.
Risks and guarantees
This item should contain the most important information - a forecast of attendance. It should be based on actual research and figures. There are variables in the assurances section that should have a good impact on the water park, such as a lack of competition in the market, the uniqueness of the plan, and consistent demand for water fun in a certain region. It considers the target audience, such as local inhabitants or tourists in the case of a popular resort town. The entrepreneur must specify which groups he is most reliant on, such as students, adults, children, and so on. It is vital to examine the hazards objectively, without concealing anything. Some of the hazards associated with water parks include consumer damage to equipment, reliance on weather conditions, seasonality of the business, and a delayed return period due to large initial investments.
Description of the Product and Service
This section describes the technological and economic elements of the planned water park, as well as the corporate development strategy.
Market research and marketing strategy for water parks
It is vital at this point to investigate the available supply and demand. The ideal alternative is to demonstrate that the current product is insufficient to suit the needs of the target demographic, and that the proposed water park will be the ideal solution. The marketing plan is the way by which the company will grow and acquire new clients. Consider initiatives geared at boosting your consumer base, for example. The water park may include additional areas such as an SPA-salon, cafe or restaurant, sauna or bath complex. It's fantastic if you can outfit a water park with features that your competitors don't have. This will be a compelling case for the bank or investors.
A market analysis is an in-depth examination of a specific area. The analysis results demonstrate what opportunities a company has to establish itself in a specific market niche.
Analysis of competitors
This material could be included in the preceding section or handled individually. The second choice appears to be preferable because it delivers more information.
We investigate water parks both locally and distant from the potential development site. The study's subject matter comprises the estimated number of visitors, the equipment used, the layout, the list of services, promotion methods, advertising campaign elements, and the estimated profitability. The disadvantages are considered separately.
Technical strategy
This is one of the most important aspects of the water park business strategy. The fact that this part deals with large-scale construction planning explains the significance. There includes information regarding the proposed capacity, layout, and logistics elements. It is required to include subcontractors, the cost of the work, a list of the work, the materials utilized, and the human resources.
When completing this section, the entrepreneur assigns himself the responsibility of calculating the actual scale of development while accounting for the available budget, including planned loans and investments. Provide information about equipment providers as well. This is critical since the equipment is a significant aspect of the water park as an entertainment venue. It has an impact on the range of entertainment available to guests, the quality of the water, the microclimate in the building, and, in general, the project's rate of return and payback period. You should compare the various market offers in order to select the most profitable option while maintaining the quality of the installed equipment.
Organisational Strategy
There is a need to ground the organisational structure regardless of whether we are talking about a private water park or a municipal one. The major items to consider in this part are: the personnel management system, the facility supply, and the project's organisational and staffing structure. The major topics to consider in this part are the human resource management system, the facility supply, and the project's organisational and staffing structure.
Timeline
Essentially, this is a to-do list with due dates. Everything begins with an investment decision and prepares for construction, commissioning, and loan payback schedules.The timeline also includes the amounts required to complete specific works to keep the water park operational and modern. These elements should be based on acceptable calculations.
Plan for Investing in a Water Park
We examine all costs and specify the amount of investment required to complete the project on schedule. Costs are capital expenditures and net capital of turnover. By capital expenses, we indicate the resources required to create and equip the facility, and by turnover capital, we mean the funds required to operate the finished water park. This point takes practically all of the effort and attention because it is critical for those considering investing in the project.
Some company plans comprises the following items:
- Water Park corporate identity
- A list of events to be held when the facility opens
- PR tools to be used in project promotion.
ExpertFun's water park business plan is a document that covers all of the information about the economic and financial performance, as well as the timing and complexity of work, as well as the feasibility study. The document will provide justifications for the project's financial attractiveness to an investor or credit institution.
When we create a plan, we maintain it systematic, flexible, exact, and detailed. A reader of the document will have no questions about your project.
