Most people mistakenly believe it takes millions of dollars to open and run their own business. While you certainly can spend as much money as you want building and operating a new organization, it’s just as easy to launch a business with low start-up costs and a fun operations model, like a synthetic ice rink rent business.
With hockey programming on the rise nation-wide, a portable synthetic ice rink in your community can offer a turn-key avenue to year-round hockey training and a reliable revenue stream.
Your business ownership adventure begins with an expertly crafted business plan. Let’s break down how to write one that helps you launch your synthetic ice rink rent service with confidence.
KwikRink Synthetic Ice offers a versatile, low-maintenance, all-weather ice product customized to any space and size. Visit our website today for a free rink analysis and quote. We’ll help you build a profitable rink rental business with superior products and support.
Start at the end and work your way backward
An effective business plan begins with a comprehensive executive summary. You’ll write a bird’s eye view of what your business will look like in the first few years of operation.
However, this section of your business plan is the last step to complete. There’s a bit of groundwork to tackle before you can “tell the story” of your business in a captivating way.
Instead, start with the following elements, and compile them as you go:
- Market research: What is the potential demand for synthetic ice rink rent in your community? You’ll want to check out existing family, youth, and adult programming at churches, community centers, schools, and other gathering places to determine if there’s a programming gap your synthetic ice rink can fill.
Other places to research include:
- local charities and businesses (for fundraising events), and
- the youth birthday party market where you live. A synthetic rink can be a unique event idea for more than just hockey programs.
Do your diligence to clarify all the places where your rink can service your local population.
- Competition: Are there any other skating programs in your area? This may be more of a concern if you live in snowy places where skating is the norm. If you live in a warmer climate, you may not have as many skating programs competing for a share of the local market.
- Start-up costs: your business plan should list every cost associated with launching your rink rental business, including:
- Capital purchase: the rink, fencing, and other equipment like skates, hockey sticks, protective gear, mats, and anything else you’ll be offering as part of your rink rental service. At KwikRink, we can kit you out like the pro you are so your service stands out as professional and comprehensive.
- Insurance: A small business owner needs a couple of policies in place for complete peace of mind. Consider getting a property policy which protects your rink and equipment from damages, disasters like weather or fire, and theft. You will also need a liability policy to protect you in the event of a lawsuit from someone getting hurt while on your rink or using your equipment.
- Monthly fixed and variable costs: If you rent a storage space for your rink tiles, that’s an example of a fixed monthly cost. If you hire other people to help you install and tear down your rink at different venues, those could be variable costs depending on how much labor you need for each rental gig. Brainstorm all the regular costs associated with running your rink rental service, and compile them in your business plan.
- Financing: How will you raise the money to start your rink rental business? There are several options for getting start-up cash:
- Personal savings
- Small business loans: Check your local Small Business Association or your bank for more information on financing for small businesses. Some cities and regions have additional financing resources for minority owners in many demographics.
- Business lines of credit: This is essentially a credit card dedicated for business expenses.
- Crowdfunding: Using a website like gofundme.com can help you create campaigns to raise money for specific projects related to your rink rental business. You can get super creative on your fundraising goals and how to ask for and incentivize various levels of giving. For example, if a donor gives several hundred dollars to your campaign, perhaps you reward them with a free ice skating party for their family and friends.
- Cash flow: Now we get to the good part, which is making money. What’s your plan for generating revenue once you have your rink? How much will you charge for your services? Your ability to generate rental gigs and profits will depend on several factors:
- Pricing your services wisely (making sure you charge enough to balance your costs and have a healthy profit margin while not being too expensive that customers can’t afford you.)
- Existing relationships
- Local marketing (offline strategies)
- Digital marketing (your website, social media, and online paid advertising)
You’ll need to have a solid strategy in place for at least 12 months of marketing and revenue forecasting. It’s a good idea to include a best- and worst-case scenario in your business plan and how you’ll manage each of them, knowing that your actual results will likely fall in the middle of the two.
Pull it all together
Now that you’ve done all your homework, you can compile your executive summary. Tell the story of your synthetic rink rental business.
Detail what it is, why you’re launching it, what your needs are financially and physically, as well as how you plan to finance your start-up and begin to generate revenue, and eventually, profit.
KwikRink Synthetic Ice is your partner in innovative small business operations. Our professional staff provides an expert resource as you gear up to offer expanded, all-weather skating in your community.
We’ll help you design your rental rink for the highest functionality and convenience, as well as years of low-maintenance reliability in our synthetic ice products. Call us today to help launch your, ahem, “leading-edge” rink rental service.