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Do you want to start a Water Park business plan?
Do you want to start a water park business? If you are thinking about it, it is a great idea. The need for water parks is never limited. And you don’t require any special technical education or degree. You can start it at a small scale and then develop it as you go along.
Even though this business is relatively straightforward to start, your life can still be made easier if you follow a water park business plan pdf document like the one here. When you’re learning about how to start a water park business or any other business like starting a paintball business, you will find that a business plan is an essential document to have. This also includes a presentation for potential investors.
Below, we have provided a sample business plan for ‘Grizzly Parks’ water park.
Executive Summary
2.1 The Business
Grizzly Parks will be a water park business initiative started by Hailey Benton. The initiative’s primary goal will be to provide a place where families can come to relax and where kids can have fun. It will offer a wide range of services in Rockland County throughout the year, with water-based activities for summer and winter.
2.2 Management of Water Park
When starting a water park business, you need to ensure that the endeavor is successful. You can do this by developing a water park business plan. In the business plan for you water park franchise, you need to take account of all the resources you possess. These include human resources, financial as well as technical. It would be best if you then created a marketing strategy business that will utilize these resources to the fullest.
In the business plan below, we have presented how to make a water park so that you can follow a strong lead.
2.3 Customers of Water Park
The customer base of our water park will mainly be focused on families and the young generation. The main customers of our water park business will include:
- Local Families
- Teens
- Young Adults
- Tourists
2.4 Business Target
The main target of our water park will be to provide a space for relaxation to our customers. We aim to become a place that people can trust to be fun after some hard workdays.
The financial targets that we want to achieve within the first two years of our inauguration are mentioned below:
Company Summary
3.1 Company Owner
Hailey Benton will be the owner of Grizzly Parks. Hailey completed her MBA about three years back. Afterward, she worked for a management firm for two years before she ventured out to fulfill her dream to run and design business park with her co-worker.
3.2 Why the Water Park is being started
Hailey noticed that the amusement and recreation businesses around her town were becoming obsolete with old services like Merry Go Rounds, Carousels, and Ships. She realized that she could utilize the water body around town to offer more enthralling activities to the people. Therefore, she did some research and set out to start a water park.
3.3 How the Water Park will be started
Step1: Plan Everything
The primary step of starting an aerial tourism business is to read aerial tourism business plan. Similarly, the first step of starting a water park is to read a water park business plan sample.
This water park business plan template will give you answers to many fundamental questions. For example, how much does it cost to open a water park. Of course, it is up to you whether you take advice directly from business plan experts or choose to go through business plans on your own to learn. But if you choose the latter, you can get help from this document.
Step2: Define the Brand
The second step to starting a water park is to highlight the core values of your business. Doing this is called developing a brand. The brand should show your customer your competitive advantage over other recreation businesses around you.
Step3: Establish Your Corporate Office
Hailey and her designer decided to rent out a space of land near Hackensack River in Rockland County. She will procure all the water and safety equipment needed to start the park.
Step4: Establish a Web Presence
Online marketing is an essential aspect of every business. Realizing the necessity, Hailey decided to start a website and social media pages to market her water park.
Step5: Promote and Market
You need to develop and implement a marketing plan as the final step to start your business.
| Start-up Expenses | |
| Legal | $202,200 |
| Consultants | $0 |
| Insurance | $23,000 |
| Rent | $33,000 |
| Research and Development | $10,000 |
| Expensed Equipment | $56,000 |
| Signs | $3,400 |
| TOTAL START-UP EXPENSES | $327,600 |
| Start-up Assets | $266,000 |
| Cash Required | $369,000 |
| Start-up Inventory | $39,000 |
| Other Current Assets | $240,000 |
| Long-term Assets | $287,000 |
| TOTAL ASSETS | $1,201,000 |
| Total Requirements | $1,528,600 |
| START-UP FUNDING | |
| Start-up Expenses to Fund | $327,600 |
| Start-up Assets to Fund | $1,201,000 |
| TOTAL FUNDING REQUIRED | $1,528,600 |
| Assets | |
| Non-cash Assets from Start-up | $1,506,000 |
| Cash Requirements from Start-up | $162,000 |
| Additional Cash Raised | $50,000 |
| Cash Balance on Starting Date | $35,000 |
| TOTAL ASSETS | $1,753,000 |
| Liabilities and Capital | |
| Liabilities | $18,000 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $48,000 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $66,000 |
| Capital | |
| Planned Investment | $1,528,600 |
| Investor 1 | $0 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $1,528,600 |
| Loss at Start-up (Start-up Expenses) | $158,400 |
| TOTAL CAPITAL | $1,687,000 |
| TOTAL CAPITAL AND LIABILITIES | $1,753,000 |
| Total Funding | $1,528,600 |
Services
Before you think of how to make a water park, you need to decide the services you intend on providing to your customers.
The business plan for opening a water park will be different from perhaps, internet radio business plan. This is because the services offered are different. And so details such as water park financing will be different.
Since Hailey decided to open a commercial water park, you can use this water park business plan example to create a business plan template for summer camp too.
The primary services of Grizzly Parks will include:
- Waterslides
We will provide different level waterslides. This way, both young children and well adults can have a fun splash. Our water slide levels will include:
- Beginner (5-10yrs)
- Intermediate (11-20yrs)
- Expert (20yrs +)
Customers will be allowed in the water slides considering their swimming level and age.
- Varied Depth Pools
We will also have pools of various depths present at the park where customers can take a leisurely swim. In this regard, the different categories will include:
- Zero-Depth Pools
- Tapered Pools
- Open water pools
Here, parents can teach their children to swim or just go for a swim themselves.
- Water Sports
The unique service provided by our water park management will be water sports, including:
- Surfing
- Jet Skiing
- Water Boarding
- Canoeing
- Paddle Boarding
- Camping Services
Our customers can also enroll their children in seasonal camps that may last 1-2 weeks.
- Recreation Services
We will also provide recreation services like spas, sun decks, and lazy rivers for our older customers so they can have a pampered and relaxing day.
Marketing Analysis of Water Park
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To learn how to open a water park, you will need to have a thorough knowledge of your customer to make the water park profitable business. The best way to understand your customer base is to undergo a marketing analysis for your water parks business plan. The business plan should include the past, present, and future market trends for reference. It should also include an analysis of current market prices with your financial goals to assess the costs of your services.
If you don’t know how to conduct marketing analysis, you can take help from this water park business plan sample. You will find a lot of examples of water park business plan pdf on the internet that you can refer to.
Below, we have presented a detailed marketing analysis of Grizzly Parks Water Park:
5.1 Market Trends
According to the International Association of Amusement Parks and Attractions (IAAPA), waterparks attract around 400,000 guests a year with an average stay of about 2.7 hours. And according to IBIS, the market size for the water park industry is valued at $2 billion. Overall, the demand for amusement and recreation services is ever-increasing with the stressful work and school hours all over the US.
5.2 Marketing Segmentation
The possible customers of Grizzly Parks are divided into the following categories:
Business plan for investors
5.2.1 Local Families
Our primary customers will be families in the New York area. They are expected to be our recurring customers as they will avail services for both kids and adults, including camps, spas, and pools.
5.2.2 Teens
Our second target customer will be teens. They are expected to utilize our more exciting activities such as water sports and camps.
5.2.3 Young Adults
This will be our third group of customers. They are expected to avail both exciting and relaxing services on a semi-regular basis.
5.2.4 Tourists
Our last batch of customers will be tourists. As New York and surrounding areas attract many tourists, they are expected to avail our day-bases activities.
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Local Families | 35% | 35,000 | 42,000 | 50,400 | 60,480 | 72,576 | 10.00% |
| Teens | 25% | 24,000 | 28,800 | 34,560 | 41,472 | 49,766 | 10.00% |
| Young Adults | 21% | 18,700 | 22,440 | 26,928 | 32,314 | 38,776 | 10.00% |
| Tourists | 19% | 14,000 | 16,800 | 20,160 | 24,192 | 29,030 | 11.00% |
| Total | 100% | 91,700 | 110,040 | 132,048 | 158,458 | 190,149 | 10% |
5.3 Business Target
- To become the number one recreation service throughout New York and the surrounding area
- To expand our services every year
- To earn a net profit margin of $80k per month by the end of our second year
- To keep a customer satisfaction rate of >95%.
5.4 Product Pricing
Our prices for specialized services (like water sports) will be a little higher than traditional services like pools and spas. But we will offer experts to guide our customers and keep them safe.
Marketing Strategy
To stand out amongst the huge competition in the market, you need to display your advantages to the customers. You can do this through a project report on water park. Thorough research for this will answer many questions for you, such as how much does it cost to build a waterpark.
In this business plan, we present the marketing analysis of Grizzly Parks that will also highlight how to make a water park.
6.1 Competitive Analysis
- Our customer support is top-notch. We will ask customers for feedback as well to improve our services.
- Our customers can reach out to us through our website, social media pages, or direct call. We will try to respond as soon as possible.
- We provide new exciting features like water sports that are not widely available.
6.2 Sales Strategy
- Our advertisements will be done through local as well as google ads, posters, and social media.
- We will offer family packages with fun discounts
- We will offer coupons that our recurring customers can use for free rides or lessons.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Waterslides | 9,870 | 10,462 | 11,090 |
| Varied Depth Pools | 8,760 | 9,286 | 9,843 |
| Water Sports | 5,680 | 6,021 | 6,382 |
| Camping & Recreation | 2,320 | 2,459 | 2,607 |
| TOTAL UNIT SALES | 26,630 | 28,228 | 29,921 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Waterslides | $50.00 | $58.00 | $67.28 |
| Varied Depth Pools | $45.00 | $52.20 | $60.55 |
| Water Sports | $75.00 | $87.00 | $100.92 |
| Camping & Recreation | $100.00 | $116.00 | $134.56 |
| Sales | |||
| Waterslides | $493,500.00 | $606,807.60 | $746,130.62 |
| Varied Depth Pools | $394,200.00 | $484,708.32 | $595,997.35 |
| Water Sports | $426,000.00 | $523,809.60 | $644,076.28 |
| Camping & Recreation | $232,000.00 | $285,267.20 | $350,764.55 |
| TOTAL SALES | $1,545,700.00 | $1,900,592.72 | $2,336,968.81 |
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Waterslides | $30.00 | $33.00 | $34.65 |
| Varied Depth Pools | $20.00 | $22.00 | $23.10 |
| Water Sports | $45.00 | $49.50 | $51.98 |
| Camping & Recreation | $50.00 | $55.00 | $57.75 |
| Direct Cost of Sales | |||
| Waterslides | $296,100.00 | $345,252.60 | $384,266.14 |
| Varied Depth Pools | $175,200.00 | $204,283.20 | $227,367.20 |
| Water Sports | $255,600.00 | $298,029.60 | $331,706.94 |
| Camping & Recreation | $116,000.00 | $135,256.00 | $150,539.93 |
| Subtotal Direct Cost of Sales | $842,900.00 | $982,821.40 | $1,093,880.22 |
Personnel plan
Note
The behavior of employees is of the utmost importance in building water parks. Understanding this importance in the process of how to start a water park, Hailey decided to implement rigorous selection criteria for employees. Under this criteria, the list of employees is mentioned below.
7.1 Company Staff
- 1 Co-Manager to help in overall design and operations
- 6 Certified Lifeguards
- 5 Certified Swimming Instructors
- 8 General Cleaners
- 2 Technician to upkeep the equipment
- 1 Web Developer/ Mobile App Developer to manage online sites
- 1 Social Media Manager
- 2 Sales Executives to organize and promote sales
- 1 Accountant
- 2 Receptionists
7.2 Average Salary of Employees
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Manager | $40,000 | $44,000 | $48,400 |
| Certified Lifeguards | $182,000 | $200,200 | $220,220 |
| Certified Swimming Instructors | $120,000 | $132,000 | $145,200 |
| General Cleaners | $150,000 | $165,000 | $181,500 |
| Technician | $40,000 | $44,000 | $48,400 |
| Web Developer | $15,000 | $16,500 | $18,150 |
| Social Media Manager | $15,000 | $16,500 | $18,150 |
| Sales Executives | $30,000 | $33,000 | $36,300 |
| Accountant | $15,000 | $16,500 | $18,150 |
| Receptionist | $30,000 | $33,000 | $36,300 |
| Total Salaries | $637,000 | $700,700 | $770,770 |
Financial Plan
Increasing your return on investment requires that you develop an adequate financial plan for your business. Therefore, it should be included as a part of your business plan.
So whether you are developing a business plan for video production or a water park business plan sample like this one, a financial plan is a must. It will help you find the cost to build a waterpark and will also aid you in achieving your small and long-term financial goals.
Just increasing sales doesn’t ensure that your business has become successful and is yielding profits. To earn profits, it is essential to manage your operations timely and efficiently. To ensure that your business is not getting into a loss, you must carry out a detailed financial analysis while you create business plan cleaning service.
In your financial plan, e.g., business plan movie selection, you have to identify how you will earn profits and cover development and maintenance costs for the business.
Here we’re providing the detailed financial plan made for Grizzly Parks. It will give you an idea of the finances involved in a business.
8.1 Important Assumptions
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 8.12% | 8.20% | 8.26% |
| Long-term Interest Rate | 8.40% | 8.44% | 8.47% |
| Tax Rate | 24.03% | 24.21% | 24.60% |
| Other | 0 | 0 | 0 |
8.2 Break-even Analysis
| Break-Even Analysis | |
| Monthly Units Break-even | 5340 |
| Monthly Revenue Break-even | $132,500 |
| Assumptions: | |
| Average Per-Unit Revenue | $231.00 |
| Average Per-Unit Variable Cost | $0.62 |
| Estimated Monthly Fixed Cost | $163,800 |
8.3 Projected Profit and Loss
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $1,545,700 | $1,900,593 | $2,336,969 |
| Direct Cost of Sales | $842,900 | $982,821 | $1,093,880 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $842,900 | $982,821 | $1,093,880 |
| Gross Margin | $702,800 | $917,771 | $1,243,089 |
| Gross Margin % | 45.47% | 48.29% | 53.19% |
| Expenses | |||
| Payroll | $637,000 | $700,700 | $770,770 |
| Sales and Marketing and Other Expenses | $145,000 | $148,000 | $156,000 |
| Depreciation | $2,300 | $2,350 | $2,500 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $2,900 | $3,000 | $3,100 |
| Insurance | $2,100 | $2,100 | $2,100 |
| Rent | $2,900 | $3,000 | $3,200 |
| Payroll Taxes | $24,000 | $25,000 | $27,000 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $816,200 | $884,150 | $964,670 |
| Profit Before Interest and Taxes | ($113,400) | $33,621 | $278,419 |
| EBITDA | ($113,400) | $33,621 | $278,419 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | ($22,680) | $6,724 | $55,684 |
| Net Profit | ($90,720) | $26,897 | $222,735 |
| Net Profit/Sales | -5.87% | 1.42% | 9.53% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $51,000 | $55,080 | $59,486 |
| Cash from Receivables | $22,000 | $23,760 | $25,661 |
| SUBTOTAL CASH FROM OPERATIONS | $73,000 | $79,570 | $85,936 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $74,000 | $79,000 | $85,000 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $42,000 | $42,000 | $45,000 |
| Bill Payments | $27,000 | $28,000 | $31,000 |
| SUBTOTAL SPENT ON OPERATIONS | $69,000 | $70,000 | $76,000 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $69,000 | $74,520 | $80,482 |
| Net Cash Flow | $21,000 | $23,000 | $25,000 |
| Cash Balance | $27,000 | $30,000 | $33,000 |
8.5 Projected Balance Sheet
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $275,000 | $308,000 | $338,800 |
| Accounts Receivable | $24,000 | $26,880 | $30,213 |
| Inventory | $4,300 | $4,816 | $4,900 |
| Other Current Assets | $1,000 | $1,000 | $1,000 |
| TOTAL CURRENT ASSETS | $282,000 | $315,840 | $355,004 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $19,400 | $21,728 | $24,444 |
| TOTAL LONG-TERM ASSETS | $24,400 | $27,328 | $30,744 |
| TOTAL ASSETS | $294,000 | $329,280 | $370,440 |
| Liabilities and Capital | Year 4 | Year 5 | Year 6 |
| Current Liabilities | |||
| Accounts Payable | $18,700 | $20,944 | $23,541 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $19,000 | $21,280 | $23,919 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $15,000 | $16,800 | $18,883 |
| Paid-in Capital | $30,000 | $30,000 | $31,000 |
| Retained Earnings | $53,000 | $57,770 | $63,547 |
| Earnings | $193,400 | $210,806 | $231,887 |
| TOTAL CAPITAL | $285,000 | $310,650 | $341,715 |
| TOTAL LIABILITIES AND CAPITAL | $300,000 | $329,280 | $370,440 |
| Net Worth | $293,400 | $319,806 | $351,787 |
8.6 Business Ratios
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 7.25% | 8.03% | 8.90% | 3.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 9.21% | 10.20% | 11.31% | 9.80% |
| Inventory | 5.39% | 5.97% | 6.62% | 9.90% |
| Other Current Assets | 2.11% | 2.34% | 2.59% | 2.40% |
| Total Current Assets | 149.80% | 151.00% | 152.00% | 158.00% |
| Long-term Assets | 11.55% | 11.60% | 11.64% | 12.00% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.90% | 4.94% | 4.98% | 4.34% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Total Liabilities | 7.59% | 7.65% | 7.72% | 7.38% |
| NET WORTH | 100.45% | 101.25% | 102.19% | 110.00% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 94.60% | 97.15% | 99.87% | 99.00% |
| Selling, General & Administrative Expenses | 93.56% | 96.09% | 98.78% | 97.80% |
| Advertising Expenses | 1.52% | 1.56% | 1.60% | 1.40% |
| Profit Before Interest and Taxes | 41.50% | 42.62% | 43.81% | 33.90% |
| Main Ratios | ||||
| Current | 34 | 35 | 36 | 32 |
| Quick | 33 | 33.8 | 34.645 | 33 |
| Total Debt to Total Assets | 0.18% | 0.18% | 0.17% | 0.40% |
| Pre-tax Return on Net Worth | 74.08% | 74.89% | 75.00% | 75.00% |
| Pre-tax Return on Assets | 96.30% | 101.12% | 106.17% | 111.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 33.56% | 34.60% | 35.67% | N.A. |
| Return on Equity | 55.80% | 57.53% | 59.31% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7.7 | 7.8 | 7.8 | N.A. |
| Collection Days | 100 | 100 | 100 | N.A. |
| Inventory Turnover | 32.4 | 34.02 | 35 | N.A. |
| Accounts Payable Turnover | 15.6 | 16 | 16.3 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 2.5 | 2.5 | 2.6 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | -0.04 | -0.03 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $244,000 | $257,664 | $272,093 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.85 | 0.87 | 0.89 | N.A. |
| Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
| Acid Test | 29 | 29.12 | 29.16 | N.A. |
| Sales/Net Worth | 2.1 | 2.2 | 2.2 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
FAQ
- Are water parks profitable?
Water parks are very profitable because they have a short development period. They also return the investment by the end of the first two or three years.
- How do I start a water park business?
You can start a water park business by doing research and developing a strong water park business plan. You can follow this water park business plan example to get started.
- How much is a water park worth?
The worth and water park project cost for development depends on many factors such as area, equipment, and range of services. But according to TRUiC, it costs around $250-$600 per square foot.
- What makes a water park successful?
Like any other business, the success of a water park depends on how well managed the business idea and implementation is. You can ensure this by following a solid business park plan water.
Download Water Park Business Plan Sample in pdf
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