Families from all over the world visit amusement parks during their vacation. The thrill of riding the rides, laughing and screaming as you reach the bottom, is unlike anything else. Combined with water, that makes for a great family adventure. Get insights on starting a Waterpark and whether it’s right for you to start this business.
Let us discuss what this business costs and how can you make it profitable
You have found the perfect business idea, and now the next step is to take the next step. Registering a business with the state isn’t everything you need to do. Getting started with your waterpark is easy with this guide. Following these steps will ensure that your new business is well planned, properly registered, and legally compliant.
Planning is the first step to success
As an entrepreneur, you need a clear plan. Your business will become more clear and you will discover some unknowns. The following are some important topics to consider:
What are the costs associated with opening a waterpark?
You will have to consider both short- and long-term costs when you take on such an endeavor. Land will be your first and most important investment. Research the areas you’re considering carefully when choosing your location. Consider a well-populated area with easy access for your customers. If your vision is to operate a tourism attraction of large scale, choose a city with an airport. Arriving visitors from other areas, cities, and countries will be ready to begin their experience. It is possible that they would decide to make other arrangements if they had to travel further to reach their final destination. Depending on what type of waterpark you plan to build, experienced owners recommend purchasing 8 to 15 acres of land:
The average size of indoor parks is 8-10 acres, with almost 25,000 square feet of space per building.
The area needed for an outdoor park is between 13 and 15 acres
A 9-12-acre indoor-outdoor facility would need a 23,000-square-foot building on average.
Consult a consultant and contractor after you purchase the land to begin the planning process.
Depending on the size of the facility and the location, construction costs will range between $250 and $600 per square foot. According to reports, an indoor park with 2720 square feet would cost almost $690,000. These costs include: construction, heating, cooling, mechanical equipment, snack bar, supporting areas, theming, and water slides. Startup costs for parks that exclusively cater to the outdoors are estimated at $1.5 million.
The numbers above should not dissuade you. Most park owners purchase enough land to satisfy their vision at a time when their budget allows them to focus on the essentials. In time, they add attractions as business picks up, investing some profits back into their business. This will save your startup budget as well as help you retain customers.
How much does it cost to run a waterpark?
There are numerous factors that directly affect a park’s ongoing expenses. it is difficult to estimate the expense. A monthly budget should include:
- Preventative and predictive maintenance of attractions, facilities, and equipment can save you tens of thousands of dollars.
- The cost of utilities, chemicals, and maintenance generally makes up 8-13% of your total operating costs.
- Building new attractions
- Three to five percent of the budget should go to operational supplies
- Keeping the house clean
- Train the staff on a regular basis
- An insurance policy
- Payroll Cost – the cost of paying your staff will amount to 50-80% of your operational budget depending on the size of your business and the number of hours you operate.
Who is your target market?
There are many parks that cater to customers of all ages. Some businesses rely heavily on tourists as a source of revenue. Others concentrate their marketing efforts on local families, teens, and young adults.
How does a waterpark make money?
Waterparks charge an entry fee for each visitor. There are many resorts that offer additional activities and services, like food and equipment rentals, to increase visitor satisfaction and profitability.
Is it possible to charge customers a certain amount?
In some parks, admission is flat rate based on age (2 and under free), while in others, age and height are taken into account. It is cost-effective to do the latter when you have several rides whose height requirements would exclude a large chunk of customers.
Entrance fees include unlimited rides on the water slides. There is an additional charge for extra services and attractions.
Are waterparks profitable?
Over the last decade, this industry has grown significantly and is expected to continue growing at approximately 3.5% per year. It is unknown how much profit these establishments can earn, but research indicates over 375 million people visit them in the United States each year. Similar growth has been seen in Canada as well. Vortex Canada is helping many new businesses with smart rides construction to attract more customers.Start ups can earn millions of dollars in profits from this industry if they have a meticulous operating strategy in place.
What are some ways to increase the profitability of your business?
Water parks offer more than just water slides and rides. Take some of these steps to increase your business’ profitability:
- As part of the water park, build a hotel.
- The park can display signage, for a nominal fee, from local businesses.
- Invest in water recycling and energy efficiency programs from the beginning. The initial costs will be higher, but you will save a lot of money over time.
- Discounts for state residents, as well as annual passes for groups
- You can also provide cabanas, lockers, food, souvenirs, and private party rooms for additional fees.
- Add mini-golf, go-carts, climbing walls, bumper boats, a gaming section, and other entertainment.
- Lease retail space to tenants. This will help reduce your overhead expenses as you support other businesses within the community.
- Organize special events during your “off” season. Haunted houses are built in many parks around Halloween, drawing large crowds of people every day.
- Mother Nature your park instead of building a concrete one. In addition to rafting, rope swinging, sliding, jumping off a platform, log rolling, water volleyball, grilling, and picnicking, entrepreneurs have founded successful establishments .
- Using natural resources to your advantage, you’ll be able to cut costs to a fraction.
Final Word: Are there any growth prospects for waterparks?
Waterparks in the United States and Canada tend to start off small, but many entrepreneurs have now realized the financial gain comes with constant expansion. A well-rounded experience attracts customers from all over the world. International markets have become more important to park owners over the course of the last five years. Asiatic regions remain virtually untapped, despite a high demand. As long as the park is well-managed and maintained, business owners may be able to realize long-term growth and success, regardless of how modest or grandiose their vision for the park may be.