The document outlines a seminar designed for individuals interested in setting up an indoor play center, detailing practical advice and insights from experienced operators and industry suppliers. It covers essential topics such as market research, financing, location planning, design, safety standards, and ongoing operational considerations. The seminar aims to provide comprehensive knowledge to help attendees make informed decisions about starting and successfully running an indoor play facility.

1. Practical Advice to …
Setting Up An Indoor Playcentre
Play Providers Association (PPA) Seminar
13th March 2012

2. Welcome and Introductions
Tracey Bancroft
PPA Exec Member + Ezeeeplay

3. Aims:
• Provide an insight into the realities of operating an indoor play centre
• Learn from existing operators and leading industry suppliers
• Cover standards, guidelines, statistics and best practice
• Discuss future industry trends and innovations
• Opportunity to ask questions to the panel and speakers
• Information to allow your to make an informed decision on your start up

4. Seminar Outline:
3. Introductions (Tracey Bancroft) - 11am
4. Researching the Market: (Neil Scott and Kate Costin)
5. Location and Planning (Neil Scott)
6. Raising finance in the current climate (Mark Johnson) – 12:15
Networking Lunch at 12-30
10. Case Study – Indoor High Ropes (Sarah Ansell) at 1pm
11. Play Standard’s & choosing a manufacturer (Graham Robinson)
12. Creating your brand and marketing your site (Kate Costin)
13. Ongoing considerations of operating a Play Centre (Tracey Bancroft)
14. PANEL - Question and Answer Session -1:45 pm

5. Researching the Market
Is there an opportunity??
Neil Scott and Kate Costin

6. What does the market look like?
• Highly fragmented supply structure (700~ Private Operators)
• A new breed of operator creating higher customers expectations
• However MANY business failures
• Current sites having to diversify to survive
• Tough economic conditions for both existing
operators & potential start ups raising finance
• Increased competition and costs for operators

7. Why might you want to open a play centre?
• The centre near me is always heaving “they must be making loads of money”??
• I want to start my own business to spend more time with my young family??
• A local play centre closed- there is a gap in the market??
• There are no play facilities here and so no competition??
• Running a play centre looks easy and I can do better than what’s already there!?

8. BUT the realities are…

9. Many sites closing or changing hands …
UK’s largest multi-site
operator into liquidation
September 2011
“CASH FLOW IS KING”

10. The economy hitting spend per head

11. Others are seeing potential!
Party / leisure spend competition in all forms …

12. Any cause for optimism ??
“We are seeing a lot of entrepreneurs recognizing that they need to start working
on their projects now, even though we are still in the tail end of the recession, so
they can have the projects open when economic conditions improve.”
“The Great Recession resulted in many previously marginally performing projects
going into the red. Owners are now calling us in to audit and analyze the projects,
determine the root cause of their poor performance and develop strategies to
improve performance with everything from management and marketing to
renovations and rebranding. “

13. Still some great new sites opening

14. Industry Trends

15. Are play centres profitable ?
• Only 54% reporting a profit in 2009
• 192 play centres “for sale” on Dalton’s
• Opportunity for failing sites to be purchased

16. Industry Benchmarks ?
• 33% Benchmark
• Admissions and F+B up
• Parties down
• 2011/12 Spend per Head
reduced

17. Don’t be just another play centre …
“DIFFERENT IS GOOD”
• Product, be unique
• Create a visitor experience with extended dwell times
• Business Model – what’s yours?
• Branding
• Food and Beverage, Party, Secondary Spend
• Customer Service

18. Location, Location, Location
and Planning
Neil Scott
Play Concepts

19. Where are play centres located?
20
15
10
5
Frequency
0
Retail/ Industrial Town Other
Leisure Centre
Type of Location

20. What size of site’s are currently trading?
35
30
25
20
15
10
Percenta ge 5
0
0-7,500 7,500-10,00 10,000- 12,500- 15,000- 20,000+
12,500 15,000 20,000
Si ze

21. Industrial Estate Retail/ Leisure
Churches!!
Town Centre Shopping Centre

22. The Bubbles Factory: Case Study
The Bubbles Factory opened on the 3rd November 2010 in Carluke, Scotland
A 500sqm - community based indoor soft play and cafe
The £1.1million delivered a very high quality, sensitively designed, environmentally
considerate building including a Scottish government grant of £550,370.00
Local regeneration to drive footfall to other businesses in the town centre

23. What makes a good location?
• High Footfall = Large Catchment Area
• Lack of Competition
• Height of unit
• Car Park
Don’t settle for anything less than perfect!!

24. Invest in Good Design
The design of the physical facility has a profound impact on not only the cost
of the facility, but just as, if not more important, the quality of the guest
experience which directly impacts on revenues and the cost efficiency of
operating the business. Design directly affects:
•Development cost
•How much your guests enjoy the experience of visiting
•How much they spend
•Whether and how often they return
•What it costs to operate the business

25. Invest in Good Design
Most design decisions are permanent, or at the least, very costly to correct if they
can be corrected. In most cases, the cost of developing a center with a flawed
design is the same as developing one with a good design. So getting the design right
in the beginning is very important to long-term success.

26. Planning
• Policy … Town Centres
• Employment
• Highways… Access
• Car Parking
• Public Transport
• Sequential Approach
Do you need professional help?
Change of Use?
How long does it take?
How much will it cost?

27. Planning Recommendations…
• Have a robust approach
• Take early pre-planning advice
• Discuss your proposal with highways
• Establish the availability of Public Transport links
• Demonstrate a need for your proposal
• Understand previous planning approval / refusals

28. Financing Business Growth
Presenter
Mark Johnson

30. Bamboo Tree
Fastest growing woody plant in the world grows very little until year 4
In the 5th year, the tree can grow 80 feet
BUT they don’t grow up every year – but continue growing under ground.
Build your foundations!!

31. Key points for today
•Bank funds, equipment leasing & EFG loans (replaced the old DTI) and
other local grants or just use your own cash
•Information required from all lenders
•Recession has severely impacted on niche sectors like Soft play but with
good housekeeping, funding is out there
•Market conditions – UK recovery stuttering, rates are set to be on hold
for the foreseeable future.
•But this creates opportunities

32. Cash Flow ?
• Most small businesses that fail within the first 3 years do so because of lack
of cash-flow, not because of a bad product.
• Up to 50% of businesses fail in the first 12 months & 70% within 5 years
• Know your numbers ‘Dragons Den’ type questions, T/O, P&L, GP, net
profit, margins
• Key is; planning, planning & planning!

33. Information Required?
• Business plan; directors background & CV, SWOT analysis,
location details, (serviceability security ability)
• Financial projections; be realistic with accurate assumptions, ask
your accountant for help
• Personal net worth statements for all directors - none home
owners will not get finance without a suitable guarantor
• Common sense underwriting

34. Information Required?
• Personal bank statements for all directors - not including any unpaid
items or missed mortgage repayments
• Investment, clarity ref bank and personal, (often lenders look for
match funding)
• Clean credit search
• Other commitments e.g. cards, HP, should be limited
• NO CCJ’s or x bankrupt

35. Bank V’s Leasing
• Bank normally take security on your property
• Bank normally used for working cap and refurbishment work
• Leasing is secured on the asset only with a personal guarantee
• Leasing for equipment only
• Repayment periods; Bank loans 5-7 yrs, equipment leasing over 3 yrs
normal for a new business up to 5 for established
• Lenders like to see match funding i.e 100k loan with either 100k cash
contribution / 100k equity in the back ground

36. Types of equipment one can lease
QURIKY KIT FINANCE!
• The Play Structure
• Catering Equipment
• Furniture
• EPOS
• CCTV
• Air con

37. A good advisor
• Able to provide a mix of bank and equipment finance
• Package your file professionally to both bank and leasing houses
• Have access to a number of funding institutes
• A good business may have a healthy mix of bank funds, equipment
leasing & personal cash, with head room on each.

38. Summary
• Common-sense underwriting
• Do not over borrow
• Be committed from the start & once open that's just the start!
• Clearly the market is still challenged but this also creates opportunities
• Recent case studies; The play factory / Yellow Sub, Play arena, The Zone,
Treasure chest
• Look up enterprise funding magazine
• Find a trusted advisor

39. Presenter
Mark Johnson
Johnson Reed
www.johnsonreed.co.uk/softplay

40. Networking Lunch
12-30 until 1pm

41. PPA Supplier Member’s

42. Case Study- Indoor High Ropes

43. A journey to
"Kaos"
a case study

44. Aims
• Highlight some areas and unexpected issues
that we experienced as a new start up
business.
• Encourage information sharing among new
starters. It can work......
• Provoke a lively discussion........particularly
when I get to health and safety !

45. From the beginning........
• The idea
• The drawing
• The research and development
• The Business Plan and Finance

46. • The Building
• The Planning Department
• The Lease and Legal
• Fit out, general building, toilets, cafe, seating
area, office
• staff recruitment, policies
• Construction Health and Safety

47. The marketing

48. • Marketing strategy
• FREE !!!!!!Press and radio coverage
• SOCIAL MEDIA
• Community interest

49. • Staff ropes course training, general induction
• E. R. C. A inaugural inspection, accreditation
• Local government Health and Safety

50. One week following signing of lease

52. Eight weeks later . . .
Anything is possible !!

53. What is kaos?
• An indoor ropes course
based in Lytham,
Lancashire
• Innovative whole family
activity and experience from
the age of six
• Cafe and seating area
• Birthday parties, Leavers
proms
• Corporate Events

54. Some of our clients to date ?
• General Public, families,
• Youth football and rugby teams
• Schools
• Youth groups, Guides, Scouts, 6-24
• Companies
• Charitable youth organisations, government
funded.
• Adult groups
• Primary Care Trust.

55. What is the best
advice I could give?
Research
Plan
Revisit
Be different

56. How do I feel ?
Knackered!

57. Would I do it again?
Absolutely

58. Indoor Play
Setting the Standard
Graham Robinson

59. BS 8409: 2009 - Code of Practice
• Fully enclosed play areas that offer children attractive opportunities are
generally those presenting different levels of challenge and difficulty.
• Children can explore solutions to these challenges and practise their newly
acquired abilities in competently designed and managed settings, where the levels
of risk have been assessed and, through supervision or design, are managed.
• Precautions need to be taken by play providers to reduce the severity
of injuries if children make the wrong judgement but the possibility
of harm cannot be completely removed.
• This British Standard aims to help play providers develop facilities
that children find enjoyable and reduce the risk of serious or disabling
injury.

60. Why do Play Areas need inspections?
• Risk Assessment is clear legal requirement…
Health & Safety at Work Act 1994 & Management of H&S at Work Regs 1999
• Systematic safety inspections are recommended as Best Practice in the
accepted standard
• BS EN 1176 and HASAW Act (playground equipment)
• Note: BS EN 1177 (is the test method for safer surfacing)
• Insurers prefer Safety Inspection & Risk Assessment
• Parents, carers & play providers want safe playgrounds
• Play providers also want to avoid litigation.

61. Why do Play Providers need inspections?
• For peace of mind
• To ensure compliance with HSE requirements for best practice
• To avoid risk of injury to children & young people
• To operate legally regarding H&S & DDA (Disability Discrimination Act)
• To have valid insurance against risk
• To avoid litigation

62. BECAUSE they want:
• To determine priorities for routine inspections and confirm compliance with
changing standards
B. Help with preventative maintenance
C. Identify worn parts needing replacement or refurbishment to maintain
required levels of safety
D. Provide a written record and/or evidence of continuous safety checks and
maintenance.
E. Provide defence and/or evidence in legal cases/insurance claims

63. There are Benefits
• Achieve good value from capital costs of equipment
• Keep down costs of preventative maintenance
• Maintenance to extend working life
• Improve safety
Why do they need RPII Inspectors?

64. BECAUSE: -
The H&S Act & Regulations specify ‘Competent’
The BS EN Standards specify ‘Competent’
RPII Annual Inspectors are: -
• Examined/Certificated Competent
• Re-examined every three years
• Independent Third Parties
• Experienced Professional Inspectors

65. BECAUSE: -
• RPII Examinations:
• Are rigorous & to BS EN Standards
•RPII Inspectors:
• Are kept up-to-date & exchange info.
• Are bound by RPII Code of Conduct
• Hold all relevant insurances
• Write comprehensive reports
• Using RPII inspectors aids consistent interpretation
• Insurers / Risk Managers prefer & may specify ‘Competent Certificated
Inspectors’ and CRB Checked

66. Types of Inspections:
Routine Visual Inspection
• Looking at the equipment’s basic condition, especially faults due to recent
vandalism, breakages and also cleanliness of the playframe.
• These inspections can be carried out by the manager or his/her staff and
should be recorded on a simple sheet or book.
• The equipment supplier should provide a checklist.
• Dependant on usage, these inspections should be carried out either daily or
weekly as a minimum.

67. Operational Inspection
• Looking in more detail at the condition of the equipment, providing a
quality control check on the more regular inspections and identifying wear
and tear on the equipment.
• Such inspections should be carried out by an appropriately trained member
of staff, or alternatively by a suitably qualified specialist and should be
recorded.
• These inspections should be carried out at least on a monthly or quarterly
basis.

68. Annual Main Inspection
• To be carried out by an RPII (Register of Play Inspectors) Indoor Annual
Inspector not connected with the playground operator or manager.
• Essentially looking at vandalism, wear and tear, long-term structural
problems, standards compliance and design, along with risk assessment etc.
• This report essentially covers the overall safety of the playground.
• Inspection should also include an annual oversight of the internal procedures
and documentation to ensure that the correct procedures are in place.

69. Choosing a Manufacturer

70. Key Considerations
• At what stage do you need to speak to a manufacturer ??
• What is your budget??
• Equipment : Building Ratio … maximise your profit per square foot
• New Trends
Issues with funding play centres
• Current economic climate means banks are not keen to lend
• Presenting the business case
• Proving demand

71. Establish that the Play Provider can…
• Provide product information and assistance
• Demonstrate a quality control system for design, manufacture, installation,
maintenance and repair
• Offer an independent post installation inspection service, to be carried out
before the facility is first open for public use
• Provide documented confirmation that the play equipment has been
installed in accordance both with relevant standards and manufacturers
instructions
• Provide an after-sales inspection, repair and maintenance service, including
an emergency response and a warranty covering defects in design,
manufacture and installation
• Demonstrate that they are covered by appropriate and adequate
professional and product indemnity insurance
• Take new clients to existing facilities and/ or provide a list of reference sites

72. Why use an API Member?
API membership signifies professional competence and performance
• Strict admission criteria : Ensures that all members have the necessary
experience, financial status and quality of workmanship.
• Professional code of conduct : Members are committed to high standards of
customer service and business practice.
• Standards: Delivering to clearly defined EN, BS standards, guidelines and
DDA requirements to maximise play value and accessibility and minimize risk
to users. Buyers can also rely on API members being at the forefront of new
thinking on play value, accessibility, risk and challenge.
• Technical mediation service: Impartial assistance in the resolution of
complaints and disputes, if necessary, between Members and their customers.

73. How much will it cost?
• Industry average is 10k per 1,000sqft of play centre for soft play… So normally
soft play will cost you 90K for 9,000 Sq Ft
• 3 months landlord rent as a deposit upfront? + service charge plus solicitors fees.
EG= £6 per Sq ft x 9000=54k year. Stamp Duty on lease
• Building reg’s / engineer, planning permission (EG- Plan 10k inc complications),
design drawings for the whole centre to pass planning & building reg’s. Fire Risk
assessment as required by law. DDA, labour.
• Doing the actual building works (??£$), Building materials, electrical (equipment,
plus installing plus testing), plumber, gas engineer, fire alarm , security systems
(alarm, cctv), disabled toilet. Fire marshall , Food Hygiene training

74. How much will it cost? Continued
• Extractor (~3K), cooker / oven, griddles, microwaves.... Fridge& freezer (~ 1K)
• Toilets, hand wash, hand dry, DDA toilet equipment
• Carpet & flooring commercial non slip
• Tables, chairs and sofas.... EG -9,000 Sq Ft centre ~10k also high chairs, nappy
changing ? lockers?
• 1st aid equipment, 1st aid training. CRB checks. PRS license, PPL License, TV
License, Entrainment License?
• Advertise for staff, T-shirts, clothing, Chef clothes. General kitchen tools.
vending machines / rides / Arcade machines.
• Hoovers, Cleaning Equipment
• Menu's, Print and Design
•EPOS Systems, Online Party Booking software?

75. • Party room set up, Disco lights, music system. Large PA system.
Coffee machine EG ~2k
• Hot water machine, hot choc machine, reserve coffee machine for
when the main on breaks Heating ?? Again thousands of pounds, my
recent air conditioning additional cost EG ~£28 K
• Decoration (labour & materials), Cherry picker lift hire, PC systems, BT
install / connection,
• Insurance? Staff opening cost? Business rates? Your wages while
building? Sage accounts system? Accountant ?
• Interest payments & repayments on loans ?
•Opening day stock & materials…
All needs paying before opening & money come rolling in

76. API, PPA, RPII – A New Partnership …
• Play Providers Association (PPA)
• Association of Play Industries (API)
• Register of Play Inspectors International (RPII)

77. Marketing and Creating
your Brand
Kate Costin

78. Creating your Brand
• The face of your business
• Brand Values – what do you stand for?
• What is your target market?
• What do you want customers to
think about your business?
• Be consistent throughout
• Invest in professionalism
• TOOLS … Ie- SWOT analysis,
Marketing Plan, Briefing external
companies

79. Key Challenges of Brand Management
Brand Map
You and your competitors
Not just play centres!

80. Great Brands in the Indoor Play Sector
Belper, Derbyshire Putney, Wimbledon, Newbury Edinburgh
www.chucklebutties.co.uk www.eddie-catz.com www.timetwisters.co.uk

81. Pre Launch
• Website
• Literature
• Staff and Uniform
• Signage
• VIP Event- Golden Ticket
•Where will people be looking to find you?
Have a budget and stick to it…

82. Best forms of Marketing
• WORD OF MOUTH
• Good PR (and bad!)
• Mascots
• Local Events
• Group Marketing
• Local Parenting Magazines / Websites
– eg Primary Times,
• Less Effective : Radio, Buses, Flyers
• Stick to budget
• Have a Marketing Plan and MEASURE

83. Social Media
• 2,013 Facebook Fans
• 1,757 Twitter Followers

84. Operating your Centre
Tracey Bancroft

85. Playcentre Usage Factors
Setting up your play centre is the easy bit!! Continuing the journey…
• THE WEATHER!!!
• Competition … All forms
Market Saturation
• Repeat Business …
Customer Service
• Marketing your centre
• The economy
• Time of Year …
Peak – Off Peak and Holidays

86. Turnover vs Size of Site
•Capacity
Maximising secondary spend
•Effective use of space
Off peak
•Play Value VS turnover
•3 'R's
Review, Reinvent, Review

87. Ongoing Considerations
• Tight management of all your overheads - utilities , suppliers , resources
• Maximise opportunities to negotiate with suppliers to drive down costs
• PEOPLE = 20 - 30% OVERALL COSTS - but also most beneficial resource!!
• Rota structures /controls - match anticipated demand -
• Policies/procedures - legislative and business
• 3 'R's - Review, Review, Review
• NETWORK - PPA - organisations, associations, local authority members, MP’s
• Educate yourself, staff - understand the industry/understand your customers
• Partnerships with other organisations, business
• BE PROUD - SELL YOUR BUSINESS - SELL YOU !!

89. Legal Requirements vs Best Practice
•UNCRC - Rights Of The Child - includes right to PLAY, leisure & rest
•Responsibility for PLAY - devolved to Local Government - constant review in
each member country
•Health & Safety at Work Act 1994 & Management of H&S at Work Regs 1999
•Anticipated change to legislative demands
•PPA members best placed to absorb changes - e.g CRBs, annual safety checks,
operational checks
•Peace of mind - professional /conscientious PLAY PROVISION PROVIDER
•Robust against litigation
•Able to meet customers expectations and allay 'fears'
•Best placed to meet future opportunities

90. Re-invest to survive and grow
• Party package offering ie- Laser Guns, Build a Bear
• Add new attractions ie- Playbus, Climbing Wall, GO OUTDOORS
• Diversifying
• Again having a USP and focusing on
your key market’s ie- Toddlers
• Keep customers returning by adding
something new
When to Reinvest??
How often to Reinvest??
Doesn’t need to be expensive!!

91. About the Play Providers Association
• Background
• Code of Practice and Standards
• Cost Saving Benefits
• Campaigns
• Networking Events
• How to join …

92. The PPA - Pushing the Industry forward!

93. The PPA- Associate Membership
Cost Saving Benefits
JOIN TODAY ONLY FOR £50 +VAT FOR THE REST OF 2012
Network Support
Industry News and Events
How to join … and upgrading

94. Session 7- Question and Answer Panel:
Kate Costin Sarah Ansell
PPA Association Kaos
Manger New Operator
Tracey Bancroft Neil Scott Mark Johnson
Ezeeeplay Play Concepts Johnson Reed
PPA Vice Chair Consultant
Ex PPA Chair

95. Conclusions
• Invest in market research - speak to existing play operators, industry experts
and reputable suppliers
• Ensure you are able to invest at the right level without undue risk
• Be different, Be unique and Be professional
• Be knowledgeable on industry standards and know your responsibilities
• Bring your site to life with a consistent engaging branding and marketing
activities. Opening a play centre is just the start…
• Join the PPA !!