Amusement business

The amusement park is a relatively free business niche in Russia. According to the Russian Association of Parks and Amusements, there are about 700 amusement parks in the country, which is much fewer than similar complexes in Europe and America. A little competition in the industry can contribute to the profitability and successful development of the business. The main thing is to organize it correctly.

Step-by-step instructions for starting an amusement ride business

Analyze the market

Organization of business begins with market analysis. It implies a detailed study of potential consumers, demand for specific services, and the presence of competitors. The analysis is carried out with the help of feasibility studies. You can use the results of your own research (surveys, communication with the population) or ready-made studies.

Select attraction(s)

If you choose the wrong equipment, you can face high costs and low income due to lack of demand. Therefore, you should choose devices as responsibly as possible. It is necessary to take into account:

• CA features. Most parks are family-oriented (parents under 40, children under 12). This category of consumers is more interested in quiet entertainment available to both age groups. An example is a Ferris wheel.
• Equipment ratio. In parks, it is recommended to use 30-40% for extreme rides, 40-50% for family rides, and 10-15% for children. This will satisfy the needs of most of the target audience.
• The popularity of attractions. It is necessary to take into account the demand for devices in a particular market. If the city already has an amusement park, it is necessary to install other (more popular) equipment or complexes in the new one, which is already very popular (can be determined by the queues that form).

Be sure to ask the seller/manufacturer about the terms of equipment delivery, delivery conditions, installation costs, and service conditions.

Don’t forget to ask about the reputation of the chosen seller. To do this, you can communicate with your customers, compare his rides in real life with rides from other manufacturers, and also search for information on the Internet.

You need to start with a small number of attractions. It is not worth installing 12-15 devices at once. It is better to assess the demand for various devices (family, extreme, children’s) and, based on the collected data, replenish the fleet with new equipment of the segment that is very popular.

Start searching for a site for equipment installation

After solving organizational issues, you can proceed to the search for a suitable place. In this case, several options are relevant. The most optimal, but at the same time expensive, is a full-fledged park with its own infrastructure. In this case, the entrepreneur rents a large separate area for its further arrangement with attractions. The territory must be within the city limits.

In Europe, the so-called “parks at the crossroads” are actively developing. They are scattered between major cities. In Russia, such a variant of the organization of the complex does not occur at all: consumers are not ready to spend several hours on the road just to have fun.

The area of ​​the rented territory is calculated taking into account the expected number of attractions. On average, about 1 hectare is required for every 10-12 entertainment installations.

The second option for placing attractions is a little simpler – using ready-made parks. In this case, you do not have to develop your own infrastructure, to improve the territory. It is enough to install the equipment. The disadvantage of this option is that the parkland is municipal. This means that all issues of its use will have to be resolved through the Administration. At the same time, government agencies often refuse to lease municipal land to businessmen.

The third way is to rent land assigned to a large shopping center. Many shopping centers rent out space not only inside the building but also outside (if any). This is an extremely relevant option for small entertainment complexes: the constant flow of people to the shopping center creates an increased demand for amusement services.

In any case, the land for attractions is drawn up under a lease agreement. At the same time, it is important that it complies with the basic rules for placing attractions: a flat surface, the absence of roads or power lines nearby.

Create a business plan

The planning horizon may vary, the minimum bar is two years. It is needed not only by the entrepreneur himself but also for presentation to potential investors: partners, banks, and government agencies (based on benefits and subsidies).

The final result depends on:

• Park locations (outdoors or indoors, in the city or outside the city);
• Planned earnings (seasonal or permanent);
• Type of complex (stationary park, complex with mobile attractions, single attractions, etc.).

Therefore, it is necessary to prepare a business plan independently, taking into account the characteristics of the planned business.

Complete business registration

For you, an individual entrepreneur or LLC is suitable. When registering a business, it is necessary to determine OKVED. Amusement complexes belong to the service sector. Code examples:

• 93.2 – Activities in the field of recreation and entertainment;
• 93.21 – Activities of recreational parks and theme parks;
• 93.29 – Other entertainment and entertainment activities.

Draw up the necessary lease agreements

If this is a costly project or you are confident in the success of your attraction(s), then the site is taken only for a long-term period.

Order the equipment of your choice

Conclude an agreement with the selected seller/manufacturer.

settle down

Before putting the rides into operation, you must obtain official permission from the administration. From 2020, each device (from a carousel to a free-fall tower) must be registered with the state technical supervision authorities. At the same time, an attraction is registered at a specific place. This means that if you need to change its position, you will have to re-register.

“For registration, the owner of the attraction must submit a whole package of documents – from a passport to civil liability insurance for causing harm to users. If everything is in order, the representative of the state technical supervision will inspect the attraction: are there any rules for use, means of evacuation, first aid kits, fences, and so on. After successfully completing all the procedures, the owner of the attraction will receive a state registration plate, which will have to be placed in a conspicuous place at the entrance. All information about the registration of attractions or refusal to register them will be entered into the regional information system.

If you decide to open a whole entertainment complex, then in addition to direct attractions, the following should be placed:

• Resting places (benches, gazebos);
• Kiosks (for controllers);
• Decorative objects for photos (fountains, photo zones, alleys).

The walking area will not be superfluous. It can be arranged in the form of a labyrinth or a theme mini-park. Also on the territory of the complex, there should be small shops/shops where visitors can have a bite to eat, and drink coffee. You can also organize them yourself (thus securing a second business for yourself). And you can provide part of the land for a network already known in the city (pizzerias, coffee houses, etc.).

Launch an advertising campaign

Before the official opening of the park, it is necessary to develop and launch an advertising campaign. Potential customers can be reached through:

• Television (it is necessary to shoot a commercial and buy airtime on a local television channel);
• Outdoor advertising (you can place signs informing about the opening of a new complex in all districts of a small city; in megacities, only the areas closest to the complex should be used);
• Internet (it is necessary to launch targeted advertising on social networks, as well as purchase advertising from local well-known bloggers).

Spend the opening

Solemnly open should be on weekends. It is desirable that this process be timed to coincide with any holiday. The opening should be bright, and memorable. This can be done by attracting star guests, organizing various entertainment programs, etc.

Amusement examples

A selection of extreme rides

• The Roller coaster is one of the most popular rides in amusement parks around the world. Prices for children’s roller coasters range from $70,000 to $200,000, for adults they start at about $700,000, and the limit, like any other ride, depends on the customer’s imagination.

• “Pendulum”. The second name is “The Fifth Element”. It is a high-altitude pendulum, rotating on its axis and moving from side to side. The standard capacity is 24 people.

• “Seventh heaven”. One of the most famous attractions, which is an extreme version of the classic “Chain”. The height of the device reaches 50 meters (on it rotation is performed with acceleration). The maximum capacity is 32 people.

• “Free fall”. The tower is the height of a 12-15-storey building. The rise of visitors to the top point is done slowly and smoothly. The fall is unexpected and abrupt, which makes you feel like you are in free fall. Standard capacity is 16 people.

Also popular extreme models include: “Rocket”, “Catapult”, “Storm”.

A selection of family attractions

Family rides have lower age restrictions. They allow parents and children to spend time together. These include:

• “Ferris wheel”. An obligatory component of large entertainment complexes. Allows visitors to enjoy the beauties of the city. Depending on the type, it can have open or closed cabins. Their maximum number is 36 pcs.

• “Autodrom”. The most favorite entertainment for children and parents. It is a small race track with cars that are powered from the ceiling or floor. The number of machines is regulated independently. The capacity of each is 1-2 people.

• “Chain”. A calmer alternative to 7th Heaven. Differs in a lower speed of rotation, and height. The standard capacity of the attraction is 12-15 seats.

Among the family ones, one can also single out Flamenco, Cars Around the World, and Roller Coaster. Various types of recreational vehicles are in demand among family visitors. For example pedal cars and catamarans.

A selection of children’s attractions

Children’s devices are many times smaller than adults. This allows you to install them in larger numbers. In many parks, separate zones are formed for the entertainment of children. Here you can set:

• Carousels. Modern carousels have gone far from the classic version with horses. Modern example:
  • “Octopus”. A classic carousel in the shape of an octopus. Slow rotation along the axis is accompanied by a slight rise of the “tentacles”, on which the children are placed. At the same time, the octopus can ride up to 10 visitors (in most cases).

• “Aviator”. Another version of the carousel. In this case, the children are located in small planes. The rotation occurs along the axis. There may be some movement in height. Aviators can accommodate 10-12 children at the same time.

Also, popular devices include the classic “Carousel”, “Miracles on bends”, and “Merry spring”. In addition, on the children’s territory of the complex, there must be a classic playground (with traditional slides, swings, and a sandbox), as well as trampolines, various labyrinths, pedals and electronic cars. Also among younger visitors, castles in the air and climbing complexes are popular.

Costs and payback

The costs of starting an amusement ride business are individual in each case. They depend on the selected devices, their number, rent, and other criteria.

Calculation example:

*The table shows the average data

In total, petty expenses will amount to 820 thousand rubles. And they are small because this table does not take into account the cost of the rides themselves. For example, the average price of a Ferris wheel from a Russian manufacturer is 30 million rubles, a downhill skiing wheel is 4 million rubles. At the same time, it is not necessary to purchase attractions for cash immediately. Many manufacturers provide the opportunity to buy in installments.

Monthly income also depends on the features of the rides. For example, let’s calculate the profit from the attraction “Lavka” (such an entertainment) per month worth 4 million rubles:

• Capacity – 16 people;
• The minimum percentage of loading is 30% or 4 people (to launch the attraction);
• Ticket price – 100 rubles;
• Session time – 5 minutes;
• Working day – 8 hours;
• The number of working days in a month is 20;
• Renting a place for an attraction: – 15 thousand rubles;
• Controller salary – 25 thousand rubles.

Thus, this attraction will bring a little more than 700 thousand (under the most favorable conditions) net rubles per month. At a cost of 4 million rubles, its payback will be about 6 months. The average payback of the entire amusement park is usually 4-6 years.