In the 1960s and 1970s, roller skating was among the most widely practiced sports. The rink is still a popular daytime or nighttime activity for individuals of all ages today. Roller skating is a fantastic way to celebrate and socialize while getting in some good physical exercise, whether you’re throwing a kid’s birthday party or gathering coworkers for a team-building activity.
Rinks for roller skating are part of the $78 billion business of recreational sports facilities, which is predicted to increase steadily over the next several years.
Despite your eagerness to jump in and take control of a rink, it’s critical that you comprehend the pertinent processes and issues. Thankfully, this step-by-step manual offers the company startup foundation you require.
Step 1: Find Out if this is the Right Business for You?
Positives Vs Negatives
| Fun Environment – Create a positive customer experience and have fun doing it Good Money – Charge up to $500 for private events Room to Grow – Add an arcade or a full-service restaurant | Expensive Startup – High costs to rent and renovate a facility Potential Injuries – Skaters often slip and fall, creating liability issues |
Industry Trends
- Industry size and past growth – The worldwide market for fitness and recreational sports centers is expected to reach $78 billion in 2022. During the epidemic, the industry had a dip, but it is currently once again expanding.
- Forecast for Growth – Through 2028, 3.5% annual growth is predicted for the worldwide fitness and recreational sports centers market.
Cost of Roller Skating Rink
From $19,000 to $39,000 is needed to start a roller rink. The cost of renting the space, making improvements, buying skates and other equipment, developing a website, and advertising are all included.
For your roller skating rink to go well, you’ll need a few things, such as:
- Rink for inline skating
- Skating wheels
- Equipment
- Website
- Tools for upkeep
Is Roller Skating Rink Profitable?
Skate rentals typically cost $5, while roller skating admission costs $10 on average. Expect a profit margin of around 35% after labor and overhead expenses.
250 visitors every week might pay $10 for entrance during your first year or two and $5 for skate rentals. Additionally, for $450 per group, you may organize one private event each week. If we assume a 35% margin, this would provide annual sales of $218,000 and profit of $66,000. You may see sales rise to 400 clients and two private events each week as your roller rink gains in popularity. You’d earn a healthy profit of $126,000 on your $359,000 in yearly income.
Entry Barriers
- Finding a good location and a reasonable facility
- Equipment and refurbishment costs
Step 2: Create a Strategy
Identify a Gap
Examine the services offered, cost, and reviews of local and online roller skating rinks. Finding a market gap to fill is what you’re after. For instance, perhaps there is a need for a roller skating rink with a snack bar or gaming area in the neighborhood market.
Solutions
- Customers will be required to pay to use your rink’s skating area. A set fee might be charged to rent the space while simultaneously hosting private gatherings. In addition to hosting events akin to nightclubs for teenagers and young adults, some roller skating rinks teach beginners how to skate and provide workout programs. Having a bar or an arcade on site or serving food and drinks are additional options.
Pricing
A session of roller skating typically costs $10 and lasts three to four hours. It costs about $5 to rent skates. The typical cost per group for private events is $400. You should anticipate a 30% profit margin after labor and overhead costs.
The Step By Step Profit Margin Calculator may be used to calculate your markup and final price points once you have an understanding of your expenditures. Do not forget that the prices you employ at launch should be flexible if the market requires it.
Target Market
Kids and adolescents that wish to go roller skating for a good time during the day or evening will be your main target market. Adults who like this nostalgic activity will be another audience you can draw.
Promote your company on Facebook, Instagram, and TikTok to find your potential clients. Consider utilizing LinkedIn to entice business clients. Additionally, you may establish contacts with nearby universities and youth groups.
Location
Your roller skating rink’s location is crucial to its success and your customers’ overall satisfaction. Depending on your target demographic, you might want to take into account its closeness to family-friendly destinations or educational institutions.
Consider how you may provide your clients a special and lasting experience while selecting your site. A site with an outdoor skating rink during the warmer months, or one with nearby eateries or bars to provide a full night out, are a couple examples of the kind of spaces you may search for.
On websites like Craigslist, Crexi, and Instant Offices, you may locate business space for rent in your neighborhood.
You might wish to abide by these general guidelines while selecting a commercial space:
- Accessible by public transportation in a central location
- With plenty of natural light and ventilation
- As your firm expands, your lease might be made more accommodating.
- A facility that is ready to use and doesn’t require any substantial upgrades or repairs
Step 3: Write a Business Plan
Any business should have a plan. Keeping your focus on your primary objectives can help you steer your new firm through the launch process. Additionally, a business strategy aids potential partners and investors in better comprehending your company and its objectives:
- Executive Summary: A brief outline of the whole business plan that should be written after the plan is done.
- Business Overview: A summary of the company’s goals, vision, purpose, assets, and control structure.
- What we make and what we do: Explain in detail what you’re selling.
- Do a SWOT analysis and look at market trends like changes in demand and growth opportunities.
- Competitive Analysis: Look at your key rivals’ strengths and flaws and make a list of what makes your services better.
- Sales and Marketing: Look at the unique selling points (USPs) of your business and come up with sales, marketing, and promotion plans.
- Management Team: An overview of the team’s tasks and professional backgrounds, as well as a business structure.
- Operations Plan: Your company’s operational plan includes how it will get supplies, where it will put its office, what its most important assets and tools are, and other practical details.
- Financial Plan: A three-year plan for money, including start-up costs, a break-even analysis, predictions of profits and losses, cash flow, and a balance sheet.
- Appendix: Add any other papers related to money or business.
Step 3: Create a Marketing Plan
Even while some of your customers may come via word-of-mouth or random passersby, you should nonetheless engage in digital marketing! It’s crucial for new firms to spread the word since it will increase brand and client recognition.
Establish links between your social media accounts and your website once it is up. The ability to generate interesting posts that promote your items on social media makes it an excellent tool for company promotion:
- Facebook is a great place for paid ads because it lets you target specific groups, such as guys under 50 in the Cleveland area.
- Instagram has the same perks as Facebook, but it’s for a different crowd.
- Website: Search engine optimization (SEO) will help your website show up higher in appropriate search results, which is a key part of making more sales. Make sure your website has clear calls to action. Try changing the size, color, and placement of calls to action like “Book Now” This could bring in a lot more customers.
- Google and Yelp: Getting mentioned on Yelp and Google My Business can be very important for getting people to know about your business and buying from you.
- Signage – Adorn your business and online with eye-catching signage.
- Flyering – Post fliers in your area and at trade shows.
- Sponsor events – Events you may sponsor are those that pertain to your target market. You can do this by spending money to do so.
- Post a video — Share a video showcasing your roller skating rink. If you use comedy, it could become famous.
- Seek out referrals – To encourage consumer recommendations of new clients, consider offering incentives.
- Paid ads on social media – Choose platforms that will allow you to reach your target market and run targeted social media marketing.
- Influencer marketing – is the practice of paying users with sizable social media followings to advertise your roller rink. With smaller audiences and cheaper prices, micro-influencers are available.
- Testimonials –Share client endorsements of your roller skating rink’s enjoyable atmosphere in the form of testimonials.