Trampoline parks have become immensely popular in recent years. Children love these parks, and for the accompanying adults, they are a great place to fit in some extra physical exercise. Additionally, trampoline parks are gaining popularity as event venues for group and party bookings, further boosting demand.
So, if you want to open a trampoline park business, it could be the perfect time! Considering the latest industry trends and best practices, this guide will walk you through the essential steps to open a trampoline park. We will also answer some FAQs at the end.
Why consider opening a trampoline park?
The trampoline park market is currently booming. The market is expected to grow at a CAGR of 8.5% from 2023 to 2032. The market was valued at USD $837.8 million in 2022 and is projected to reach USD $3,570 million by 2032! The largest market for trampoline parks is North America, accounting for approximately 40% of the global market share.
Following North America in market share are Europe and the Asia-Pacific. Specifically, the Asia-Pacific region is on the verge of rapid growth, driven by the surging popularity of trampoline parks in nations like India, China, and Japan. In short, everyone loves a trampoline park!
Also, trampoline park profit margins are strong. The industry standards suggest an average of a 15-25% profit margin. And finally, trampoline parks are a great family-friendly venue to run because they offer a unique and exhilarating recreational experience that appeals to a broad demographic, from children and teenagers to adults. And this versatility attracts a steady stream of guests throughout the year.
Step-by-step guide to starting a trampoline park
Step 1: Conduct market research
Market research involves collecting data about your target market and guests to validate the success of a new product/idea/venture, refine existing ideas, or gain insights into brand perception. Market research ensures your concept is product-market-fit, aligns with your guests' preferences, and will be a success.
Conducting a comprehensive feasibility study is also essential. Such a study thoroughly examines various factors, including market demand, location analysis, financial projections, and regulatory requirements. A well-executed feasibility study can provide valuable insights and mitigate risks, setting the foundation for a prosperous venture. You can find more information on how to conduct a feasibility study here.
When conducting market research, consider the following.
1. Who is your target demographic?
What is their average age range? From this ROLLER study, we found that the most frequent age of a jumper was nine, with the 6-10 age group representing 35% of all jumpers.
Also, consider the average household income of your target demographic, as it will help better inform how you price your products. It will also influence your marketing and promotions, packaging, and more.
2. What does your target demographic predominantly want from you?
Do they just want to come and have some fun? Enjoy some family bonding time? Are they coming to improve their fitness? Or is it a combination of a few things?
Do children come predominantly for birthday parties, together with their families, or just leisurely on the weekends?
Is there any corporate interest, like groups from workplaces coming for team-building exercises?
Knowing this information will help you better tailor your attractions to your guests.
3. Who are your main competitors?
First, look into who your competitors actually are. Are there other trampoline parks in the area? Is it also near other attractions venues? Remember that other general attraction venues, such as indoor playgrounds, also count as indirect competitors.
Next, research them and gather comprehensive information about them. Look for information about their company profile, descriptions of their products or services, their market share and positioning, customer feedback and reviews, and more. You can conduct this research by researching them online, secret shopping, and even asking around.
Doing this analysis will streamline your strategy development, help you steer clear of competitors’ past errors, and accelerate your ability to meet guest expectations, ultimately leading to increased profitability.
4. How much profit can you expect?
Begin by projecting your potential profit. Estimate your costs and revenues to understand your park's financial needs clearly. Remember that it may take several months to realize returns on your initial investment and generate profit.
Gathering all this information will help you make more informed decisions on the kind of trampoline park you want to run, how you would like to do so, and which ways will be more profitable. Ensure you thoroughly examine your research to ensure your idea is feasible and that your business endeavor will be enjoyable and thriving for years.
Step 2: Secure your location
This rule is valid for every kind of real estate: location is key. Likewise, in the attractions industry, choosing the right site is paramount to the success of your trampoline park. Ensure you’re in an area where your target demographic already visits, and if your venue was there too, they would love to visit even more.
A few things to consider include:
- Population density: Having a dense population near the park is a significant advantage. Ideally, within a 10-minute drive of your park's location, there should be a minimum of 250,000 residents. If we expand that radius to a half-hour drive, there should be at least 500,000 inhabitants. While successful parks can thrive in smaller towns and remote areas, proximity to a large population is undeniably advantageous.
- Easy accessibility: Your parks’ accessibility is critical. Ensure that your venue is ADA compliant. The location should feature well-maintained road infrastructure, facilitating guests’ access by car. Additionally, it is ideal if your venue is reachable via public transport, as this ensures accessibility for those without vehicles.
- Size of your park: Your space should possess ample size and sufficient ceiling height to accommodate all essential elements and meet legal requirements. Refer to the FAQ section for more information on standard trampoline park space requirements. Additionally, confirming that your location complies with safety and zoning regulations specific to your area is vital.
Step 3: Investigate your legal and regulatory requirements
Before opening, you must know your venue's legal and regulatory requirements.
It is best to retain a lawyer for this purpose to ensure that nothing is overlooked. They can help you understand which permits and licenses you must obtain. They can also help you understand the safety regulations your venue must adhere to and how you can do so.
The following are the general legal documents required for operating a trampoline park:
- Business license: Obtaining a business license from local government authorities is a mandatory legal requirement to operate a business within the boundaries of the law.
- Liability waiver: A liability waiver is a crucial document that guests must sign before participating in any activities. The document acknowledges that guests are aware of associated risks and absolves your venue from liability in case of injuries.
- Employment agreement: An employment agreement is a contractual arrangement between the employer and employees, specifying terms such as wages, benefits, and job responsibilities.
- Insurance: Liability insurance is indispensable for safeguarding businesses against potential legal liabilities that may arise. Generally, the average trampoline park in America spends between $300-$800 per year for $1 million in general liability coverage.
- Lease agreement: If your park operates in a leased space, you and the landlord must sign a lease agreement.
- Safety guidelines: Your venue should establish and prominently display clear safety guidelines within the facility to ensure all guests know safety protocols.
These documents are essential for legally operating your trampoline park and protecting your business, guests, and staff.
Step 4: Anticipate your software and design needs
With the help of a contractor, you can design your park! However, before anything, you must thoroughly evaluate your available space. Understand the dimensions, volume, and characteristics of the area you've acquired, and then shape your expectations around maximizing its utilization.
Your trampoline park design should cater to the preferences of your target guests. Dive into the demographics and preferences of your prospective guests and tailor your layout to meet their specific entertainment needs. Remember, your park need not be all-encompassing; some of the most successful trampoline park designs specialize in niche markets, such as adult trampolining, family-oriented activities, or fitness programs.
Once you fully grasp your available resources and target audience, you can start brainstorming ideas for your trampoline park design. Ensuring that each zone within your layout caters to a diverse range of age groups and fitness levels is crucial. The uniqueness of each zone will play a pivotal role in attracting guests to your facility, so aim for inventive and engaging concepts. Some examples include a sports zone, a sensory zone just for toddlers, a VR zone, etc.
Finally, invest in high-quality trampolines, padding, and safety nets to ensure the well-being of your guests.
Next, you’ll need venue management systems to run your park. All-in-one cloud-based technology is the way to go. Cloud-based systems allow you to check in on your venue and make any adjustments to your operations in real-time and from anywhere. And when you’re using all-in-one management systems, it makes it much easier, less stressful, and less costly to run your venue.
Ensure that the system you use offers you online and in-store ticketing, fast and powerful POS, guest feedback tools, digital waivers, group and party booking capabilities, multi-venue management tools, reporting and reconciliation features, and anything else that is important to you, and helps your venue run smoother and grow better.
Step 5: Consider staffing
Your staff are your representatives, so they must represent you well. Hire enthusiastic staff members who prioritize customer safety and satisfaction. Training programs should cover safety protocols, customer service, and emergency procedures.
It is also important to note that for your staff to be impressive representatives who enhance the guest experience, they must feel good in their roles. Ensure you check in with your staff regularly and support them.
A few tips on hiring capable and impressive employees are:
- Clearly define what skills and experiences your ideal candidate must have in the job advertisement so there’s no ambiguity.
- Formulate your job description to attract high-quality applicants, and be deliberate about diversity and inclusion. Viewing your job descriptions as a marketing tool is a good idea.
- Get your job post in front of your ideal applicants. Aside from the usual employment websites, consider using specialized job boards, searching LinkedIn, networking, and reaching out directly.
- Read applications analytically. Consider the quality of applicants' cover letters and look for people who have paid close attention to your job ad and responded impressively.
- Have your best applicants complete a test project. Providing candidates with tasks closely related to the job is a valuable chance to assess their performance, offering insights beyond what an interview can reveal. You can provide compensation for this assessment if you would like.
Read this next: 10 Tips To Help Retain & Hire Seasonal Workers
Overcoming challenges in the trampoline park business
Much like the activity it offers, trampoline parks have ups and downs. Things like seasonal variations, capacity management issues, booking and ticket problems, overbooking, etc., can bog you down if you don’t plan ahead.
To mitigate these risks, ensure you set time aside to forecast and prepare for busy seasons and peak periods like school holidays, and consider promotions you might run on lesser busy periods.
A central thing you can do to ensure that your park runs smoothly is to adopt venue management systems that help you. ROLLER offers ticketing, booking, capacity management tools, and more to help take some of the hard work and worry out of these tasks by streamlining their operation at your venue. You can learn more here.
How much does it cost to open a trampoline park?
The initial cost to build an average-sized trampoline park ranges between $100,000 to $200,000. But this depends on your space. In the U.S., an average trampoline park is between 25,000 and 35,000 square feet.
How much space do you need to open a trampoline park?
According to the International Association of Trampoline Parks, business owners must acquire a building with a minimum of 18,000 square feet. The ceiling height must be 17 feet measured from the floor to the lowest obstruction in the building.
Remember that your trampolines, other activities, and areas like the lounge and food and beverage area must be appropriately and safely spaced out. Generally, the trampoline court should occupy an average of 45 to 50 percent of the total square footage of your venue.
Jump into the trampoline park space
Opening a trampoline park can be rewarding and profitable if planned correctly. Following these steps, you can build a successful trampoline park business that provides your guests a safe and enjoyable experience for years.
Remember, plan thoroughly, research, develop a strong business plan and team, invest in robust equipment, venue management, and guest feedback collection tools, put safety first, stay up-to-date with industry trends, and continually innovate to enjoy long-lasting success in this exciting industry. We wish you well!
At ROLLER, we work with over 700 trampoline parks (including Sky Zone, Altitude, Elevate, and Defy just to name a few!) and would love to help you in your trampoline park business journey. For any of your ticketing, booking, POS, payments, CRM, memberships, waivers, reporting and reconciliation, and more business management needs, click here to get a free trial of our system, and get started with us today!