3 Ways to Fund your Indoor Playground Business
After helping dozens of indoor playground owners and prospective owners get their businesses up and running, I have noticed that the funding phase can be the most difficult part of the process. In fact, of the prospective owners I have worked with that did NOT end up making it to the finish line, most have cited insufficient funding as their reason for halting progress on their plans.
While insufficient funding can certainly be a very real issue you face on this journey, I would like to encourage you to think outside the box when planning your efforts. Also, remember that the funding process can take years depending on your savings.
Something I NEVER recommend is starting a business with the bare-minimum capital required because unforeseen issues WILL occur and will need financial attention. You also want to be sure your buildout is substantial and detailed enough to allow your customers to have an outstanding experience every visit. So, don’t skimp here, and be realistic.
The amount you will need to secure will be determined by the factors you came up with in your business plan, which should be as detailed and thought-out as possible to ensure you don’t underestimate the costs required to open, which is a major trap many indoor playground owners fall into.
There are 3 main ways to get funded. Each of these methods has pros and cons. Choose one-- or a combination of methods, which I recommend-- that works best for your needs and circumstances.
To note, these are three ways to get OUTSIDE funding. Your personal savings should always be your MAIN funding source. If you do not have a significant amount of money to contribute to your startup efforts- find a way to get some. Becoming a virtual assistant, flipping items on eBay, and selling handmade goods are all great side hustles to get started with to save the money you need over time.
Banks and Financial Institutions
With a great business plan and solid credit, you can get a large sum of money to fund your indoor playground business (upwards of $100,000+)
A bank will NOT give you a break if you miss payments or cannot come up with the funds. They can and will seize your assets. If you’ve ever seen the movie “Sing”, you know what I mean.
Family and Friends
More flexibility and likely more forgiving of missed payments
Low or no interest rates
Fewer consequences if you default
Can cause a lot of strain in your personal life
This option has the unfortunate potential of ruining your relationships with family members or friends, particularly if you become late on payments
It’s easy to get between $1,000 and $5,000 with the tips inside Play Cafe Academy
If there is anyone in your life excited about your journey, this is a great way for them to get involved without forking over a large loan- they can donate as little as $1
It’s low risk, especially if you’re asking for donations
It can build a sense of community and generate excitement prior to opening
If you don’t reach your crowdfunding goal, you may get nothing
It will be difficult to raise any more than $5,000
It will likely be MORE work than you think when you take into account the dispersing of prizes, the writing of the campaign itself, social media promotion, writing updates to your contributors, etc.
Kickstarter and other crowdfunding sites will take a % of your money as their fee
For ALL of the information on getting your Play Cafe Funded and to hear exactly how we did it using a large variety of sources, sign-up for our FREE training coming up March 6 & 7 here!