Often times we come to the end of the year and things heat up in the skatepark. Lots of kids coming in with the bad weather, lots of vacation times, sales and park rentals. But make sure that with all the things going on you take the time to celebrate your people. A holiday party is a great way of letting your workers and your people whom you feel add so much value to your park know you appreciate them, their commitment, and their efforts. It's ok to close early one day during the holidays, many stores do. Celebrations can be at the park if you all like to skate, they can be at a restaurant, your home, the bowling alley, or a bar. Depending on who your workers are, you can set the event to be the type of celebration they'd enjoy. Make sure you get some unique gifts to give out, and something for everyone like a hoodie, special order hat, or something. There are many ways to celebrate the season and your people so take the time to show you care. It is ok to do your celebrations after the holidays especially if people you ask can't make it.
The holidays can also be a good time to celebrate your members. I have written often about how to make your memberships "value added". Having a member celebration day with lots of extras, a DJ, a raffle, some special food or other offering goes a long way to making those members feel a part of something special. While you could be monetizing the time, spending some money to make people feel like a part of something special can go a long way to making your park work financially. If you think about what it could mean to you, each member that talks you park up positively, whether they come down regularly or not is free advertising. Word of mouth is a "viral" loop you need to create to get people in the door and excited about springing for the extra membership cost. So a special holiday member party is a good way of helping create and keep the positive buzz about your park.
Happy Holidays. I hope you can make 2015 the best one yet!
Showing posts with label Skateparks. Show all posts
Showing posts with label Skateparks. Show all posts
Tuesday, December 16, 2014
Wednesday, June 27, 2012
How to start a skatepark with little to no money
So a lot of people are interested in starting a skatepark, but unfortunately they don't have much, if any money. I have been asked frequently about getting parks running without a substantial investment from the business originator. Honestly speaking, this is very hard to do. Imagine if you will, someone who has earned a bit of money in their life, and they are interested in your plan. When they hear that you won't be adding any funds yourself, they decide it is best to go elsewhere. Why? Because you have little to risk in the venture. Sure you have your time and you have the organization, but in the end, what would keep you from simply walking away because you haven't made any money and bills are piling up at home? What would the investor in this situation do? Sound like a good place to put money? When buying anything, people want assurances that they will get their money back and usually they want more than they put in. It is the money that you put in that helps them make this decision easier. If you are asking for no more than you are investing, or even less, then it is something people will consider. Even banks don't want to loan money to businesses that need it, unless they have the money in the bank to "secure it". This is why getting a morgage is easier than getting a personal loan, the property backs it up so if a person defaults on the loan, skips town so to speak, the bank still has a sellable house to recoup any loss. It is the same with a business like a skatepark.
So what is to be done? The only option that works is the Co-op model. A co-op is where a group of people with similar interests or needs get together as a group to create buying power. Here's a real world example: People in a community join together to buy power as a single entity. When one house buys power it has little wiggle room to get a better rate. But if a community of 100-500 houses get together, they can get a better rate. So if your town needs a skatepark, and the town won't build one, then you as a skater/biker will have little influence on your own. But if you all join together, you can either force the city into action (which is a typical tactic) or you can start one yourselves.
How can a skatepark be a Co-op? First of all let's make a few assumptions, that there are over 500 skaters in the surrounding community that needs a park, and there is little to no places a person can go to skate. (I will use skater as shorthand for bikers as well, I hope this is ok.) If each of these skaters were to scrape together $1000, and were willing to join together in a group to get their individual needs met, then a skatepark could gather $500,000 to start a park. If the park were to be smaller, the investment could be too. So if you know 10 skaters and they know 10 others, and they all know 5 others, you now have 500 people. By setting up an account (so people can see their money is safe), you have now gathered enough to start a park. Of course it will take organizing, but you have the investment, one of the hardest things to get. Lets say you want this to happen but getting $1,000 is to hard. What about $20 per week? Basically if a person were to put away $20 a week, they could have the investment together within a year. With automatic transfers, this would be easy enough for the average person.
So now that the investment end is dealt with, what would the business look like. 1. it could be totally private with only the investors/members allowed to use it or it could be part private with days of pay for skating, or, it could be all public, with the investors taking their money from the profits in the form a a dividend (when there is enough money in the bank, the extra is given back to the members. 2. It would be run by a board of directors who are voted on by the members. Once the people agree to start the Co-op and put the money up for it, a board is established (even a temporary one would do at the start), and the board then makes decisions for the park. 3. The membership is responsible, in the end, for keeping the skatepark going, so if it is totally private, the money that the park needs for the next year is paid by the members (if say the operating costs were $100,000 then each member would need to pay $100). 4. Members are usually required to work at the co-op in some fashion (office, desk, what ever).
Sound like a good idea? I think it is one of the few ways today to get a park going without really deep pockets. There are publications about co-ops on the web if you want more information on how to make one. I'd be willing to help, let me know if you are interested.
So what is to be done? The only option that works is the Co-op model. A co-op is where a group of people with similar interests or needs get together as a group to create buying power. Here's a real world example: People in a community join together to buy power as a single entity. When one house buys power it has little wiggle room to get a better rate. But if a community of 100-500 houses get together, they can get a better rate. So if your town needs a skatepark, and the town won't build one, then you as a skater/biker will have little influence on your own. But if you all join together, you can either force the city into action (which is a typical tactic) or you can start one yourselves.
How can a skatepark be a Co-op? First of all let's make a few assumptions, that there are over 500 skaters in the surrounding community that needs a park, and there is little to no places a person can go to skate. (I will use skater as shorthand for bikers as well, I hope this is ok.) If each of these skaters were to scrape together $1000, and were willing to join together in a group to get their individual needs met, then a skatepark could gather $500,000 to start a park. If the park were to be smaller, the investment could be too. So if you know 10 skaters and they know 10 others, and they all know 5 others, you now have 500 people. By setting up an account (so people can see their money is safe), you have now gathered enough to start a park. Of course it will take organizing, but you have the investment, one of the hardest things to get. Lets say you want this to happen but getting $1,000 is to hard. What about $20 per week? Basically if a person were to put away $20 a week, they could have the investment together within a year. With automatic transfers, this would be easy enough for the average person.
So now that the investment end is dealt with, what would the business look like. 1. it could be totally private with only the investors/members allowed to use it or it could be part private with days of pay for skating, or, it could be all public, with the investors taking their money from the profits in the form a a dividend (when there is enough money in the bank, the extra is given back to the members. 2. It would be run by a board of directors who are voted on by the members. Once the people agree to start the Co-op and put the money up for it, a board is established (even a temporary one would do at the start), and the board then makes decisions for the park. 3. The membership is responsible, in the end, for keeping the skatepark going, so if it is totally private, the money that the park needs for the next year is paid by the members (if say the operating costs were $100,000 then each member would need to pay $100). 4. Members are usually required to work at the co-op in some fashion (office, desk, what ever).
Sound like a good idea? I think it is one of the few ways today to get a park going without really deep pockets. There are publications about co-ops on the web if you want more information on how to make one. I'd be willing to help, let me know if you are interested.
Saturday, November 26, 2011
Skatepark Promotions, Holidays, Events
It's that time of year again. Hopefully the busiest time you will have, with many parks unskatable, kids with free time, its's cold outside and warm inside. How are you planning on taking advantage of these additional days events. Here are a few ideas-
1. Promotions, particularly during the holidays don't have to be extreme. You don't have to slash the price of money winners in order to move product. Many times, adults are looking for things for their kids. They don't have a clue about what to offer. Putting together packages that are attractive, cost conscious and trendy could be a good way of going after this market. Make certain that these promotions are "promoted" by fliers, mailers, email, and website. As I have said in past articles, put your promotion into a campaign. Have a contest with your staff to see who can move the most stuff.
Additionally you can lure in people with a money neutral item in order to sell other things. Having a "sale" deck could be a way of getting people into the shop to look at your items. many retailers have this item at a limited quantity say 5-10 items.
Another promotion type is the "additional 10% for members" or whatever. Instead of giving 35% off an item, offer 25% plus an additional 10% for members type sale. While in people's heads they think they are getting 35% off they are really only getting 32.5% off. So instead of discounting 35% or $35 on $100), you are offering $32.5 on $100. I would advise too that you make certain your discounts are within your costs, and that you offer reasonable discounts.
2. Events - Having holiday events is tradition in many parks. Putting on a good event takes time and planning. Having a person that can MC is vital, as well as a DJ, prizes, and trophies. Planning out your next year could put a culminating event around this time. Look to monetize a day that is not your busiest, or try to avoid Saturdays. Better to put these on a weekday evening, or during holiday break. Advertise these events too so that kids will know to come watch.
3. Parties - Everyone wants to have a holiday party. Why not market your park as a place for local shops, groups, and regular customers to have a private park party. Having space available for them to have cake and other foods is always a good idea too. Many of the kid oriented places like those inflatable bouncing businesses have several rooms and packages available for birthday parties. Spending time to create fliers and a plan for these types of event is a very good idea. Dedicate a staffer to deal with the party and make them feel like the cost is associated with service. These events could also be scheduled after hours, making down time for the park, a profitable time. Don't forget to offer a party for members and your staff. Noting the wonderful dedication and hard work of your staff goes a long way to getting more out of them.
4. Holiday camps - Many parents are looking for things for their kids to do during the days. Consider hosting a camp during the morning hours like you should be doing in the summer.
Good luck and Happy Holidays!
1. Promotions, particularly during the holidays don't have to be extreme. You don't have to slash the price of money winners in order to move product. Many times, adults are looking for things for their kids. They don't have a clue about what to offer. Putting together packages that are attractive, cost conscious and trendy could be a good way of going after this market. Make certain that these promotions are "promoted" by fliers, mailers, email, and website. As I have said in past articles, put your promotion into a campaign. Have a contest with your staff to see who can move the most stuff.
Additionally you can lure in people with a money neutral item in order to sell other things. Having a "sale" deck could be a way of getting people into the shop to look at your items. many retailers have this item at a limited quantity say 5-10 items.
Another promotion type is the "additional 10% for members" or whatever. Instead of giving 35% off an item, offer 25% plus an additional 10% for members type sale. While in people's heads they think they are getting 35% off they are really only getting 32.5% off. So instead of discounting 35% or $35 on $100), you are offering $32.5 on $100. I would advise too that you make certain your discounts are within your costs, and that you offer reasonable discounts.
2. Events - Having holiday events is tradition in many parks. Putting on a good event takes time and planning. Having a person that can MC is vital, as well as a DJ, prizes, and trophies. Planning out your next year could put a culminating event around this time. Look to monetize a day that is not your busiest, or try to avoid Saturdays. Better to put these on a weekday evening, or during holiday break. Advertise these events too so that kids will know to come watch.
3. Parties - Everyone wants to have a holiday party. Why not market your park as a place for local shops, groups, and regular customers to have a private park party. Having space available for them to have cake and other foods is always a good idea too. Many of the kid oriented places like those inflatable bouncing businesses have several rooms and packages available for birthday parties. Spending time to create fliers and a plan for these types of event is a very good idea. Dedicate a staffer to deal with the party and make them feel like the cost is associated with service. These events could also be scheduled after hours, making down time for the park, a profitable time. Don't forget to offer a party for members and your staff. Noting the wonderful dedication and hard work of your staff goes a long way to getting more out of them.
4. Holiday camps - Many parents are looking for things for their kids to do during the days. Consider hosting a camp during the morning hours like you should be doing in the summer.
Good luck and Happy Holidays!
Tuesday, November 1, 2011
Promote Skatepark Memberships by adding value, events!
Often we look at membership as either an exclusive way of dealing with people, such as in gym memberships, or as a price break mechanism like in grocery stores. In the gym membership model, people are necessarily excluded because of spacing issues and the rest are roped into constant fees. In the more often thought of structure for memberships skateparks offer discounts for members. Like loyalty cards at the grocery store, there is one cost for members, and another cost for others. Many of these programs offer rewards, which I have not seen offered by skateparks. Often the memberships allows the skatepark to send mail, email or other stuff to the members (don't forget the opt out option), and this is often in keeping with other loyalty programs. But if this is the model, then rewarding people for loyalty should also be in the making. Tracking visits, purchases, and the like should be a routine system designed into the memberships. Adding these tracking systems is likely part of most membership software reports and can be monitored through non-digital means with a punch card. This would be easy enough for visits and could be duplicated with skateshop purchases and justified at the end of the month by an employee relatively quickly. These incentives give the member a feeling of worth, identity, and "loyalty". Future purchases might not be made at the park because of personal circumstances, but when someone gets close to a "goal", this could be a decisive issue in a purchase decision. Similarly, a program like this allows the owner to keep memberships real, constant, and worthwhile. This topic reflects a desire to make the most of "member services" so that the additional costs of a membership provides real value beyond just cheaper entrance rates. Having so many benefits that you would need a brochure to list them makes a membership more valuable.
Adding events that are geared toward members really adds value to these memberships as well. These events can be as simple as member discount day, to more elaborate as member only contests or parties. While many of us would ask why a business would want to offer such a money losing event such as a free party at the park, I would suggest that there are more than one way to pay for these events such as exclusive product sponsorships, or the like. None the less, think of a member party as a way of invigorating your membership, promoting membership sales, and creating a good feeling about your park. A similar way to get members to feel like they matter to your business would be to invite them to an all member meeting. This meeting could be a way for members to add their ideas on the business, or a way for you to see if a new pricing for memberships could work. Those of you who read the last posting on memberships would know that if you are in business already, changing park policy could be tricky. Calling a meeting and seeing what the members could do, or would pay for such a privilege would help in selling the idea, getting feedback, and/or testing the waters. Don't forget that the way to most people's hearts is through their stomachs, so feed them.
Obviously there are many things that can be done with memberships that can help create good feelings with your members and their parks. Think of ways to make your memberships special. And as I have said always, if you have memberships, get your staff on board to selling them every visit and checking them every visit. Show that theses are important. Good Luck!
As a note, the spa-usa.org offers an insurance program for skateparks that involves personally insuring individual skaters. Memberships can offer this as part of their pricing. More on this at a later date.
Adding events that are geared toward members really adds value to these memberships as well. These events can be as simple as member discount day, to more elaborate as member only contests or parties. While many of us would ask why a business would want to offer such a money losing event such as a free party at the park, I would suggest that there are more than one way to pay for these events such as exclusive product sponsorships, or the like. None the less, think of a member party as a way of invigorating your membership, promoting membership sales, and creating a good feeling about your park. A similar way to get members to feel like they matter to your business would be to invite them to an all member meeting. This meeting could be a way for members to add their ideas on the business, or a way for you to see if a new pricing for memberships could work. Those of you who read the last posting on memberships would know that if you are in business already, changing park policy could be tricky. Calling a meeting and seeing what the members could do, or would pay for such a privilege would help in selling the idea, getting feedback, and/or testing the waters. Don't forget that the way to most people's hearts is through their stomachs, so feed them.
Obviously there are many things that can be done with memberships that can help create good feelings with your members and their parks. Think of ways to make your memberships special. And as I have said always, if you have memberships, get your staff on board to selling them every visit and checking them every visit. Show that theses are important. Good Luck!
As a note, the spa-usa.org offers an insurance program for skateparks that involves personally insuring individual skaters. Memberships can offer this as part of their pricing. More on this at a later date.
Tuesday, September 27, 2011
Dealing with a Disaster At Your Skatepark
Sometimes things happen in the world that negatively affect your skatepark. With the weather events of recent months, and all the fires and other things that are effecting different areas, I thought I would spend a little time going over what you should do to deal with a disaster.
1. Have a plan ahead of time. You need to know the numbers of your lawyer, insurance agent, and key staffers and investors. Keep a sheet at home and in the office of these numbers so that you can act without being inside the building if needs be. Having a calling tree so that you don't have to call everyone on your staff, you call one, and he/she calls the next etc.
2. Let your public know what is happening. Rumor control starts with you. If you didn't suffer any damage, if your place was ruined, let the people know. Sympathy can go a long way to getting help fixing, and to making a reopening an event.
3. Assess the damage, assess how you can recover. Sometimes things are ruined that you can't recover from financially as you were. You have two options at this time, call it quits or try to reopen. If money is the problem and insurance isn't covering it, you can raise money from your members, add investors, or look to the banks for a loan, have a disaster sale etc. There are also community resources available for small businesses (these are very competitive but you should try for them). But the main issue is what you need to do for your sanity. Restarting can be hard and take a lot of energy so you need to either go all in, or not.
4. If people were hurt you need to talk to your lawyer first. You can express to the people who were hurt concern, send a get well card, give them a call on the phone and hope that they are all right. Your lawyer will say "don't ever admit wrong doing". This is possible while at the same time expressing a human hope that the persons hurt will recover. You have to worry about lawsuits when people are hurt, often they will cast a wide net as a matter of practice to see if they can get money to help with their costs. So speaking with your lawyer is a good idea anytime there are "issues" with the park. You should have a working relationship with a lawyer anyway. I know it sucks to go in to the office, speak with this person for 1/2 an hour and get charged like $200. But protecting yourself and your business is important too, and these periodic meetings help ensure a good relationship and ensure that you are addressing your liability and risk issues. If you are concerned about the costs of these visits, have an agenda when you go in, limit non productive time, and get out quick.
5. Clean up and get back to work! With contests, events, and lessons, reschedule these events. Spend some money advertising to get the word out to those people who might not know that you are open yet. Plan a big re-opening event with music, contests, etc. to generate a buzz. Update all your media, website, twitter, facebook, google+, or other forums that you publish. Get the word to the parents that you are safe, clean, and ready to entertain! Getting the word out will take a little more than just opening your door, especially if there was a lot of damage in the area. Spend the time and money to let your constituents know your are doing business. You might have to cut back on some hours of staff at first if business continues to be slow. There is little predicting how the community will react to a disaster and you need to be flexible, proactive, and responsive.
1. Have a plan ahead of time. You need to know the numbers of your lawyer, insurance agent, and key staffers and investors. Keep a sheet at home and in the office of these numbers so that you can act without being inside the building if needs be. Having a calling tree so that you don't have to call everyone on your staff, you call one, and he/she calls the next etc.
2. Let your public know what is happening. Rumor control starts with you. If you didn't suffer any damage, if your place was ruined, let the people know. Sympathy can go a long way to getting help fixing, and to making a reopening an event.
3. Assess the damage, assess how you can recover. Sometimes things are ruined that you can't recover from financially as you were. You have two options at this time, call it quits or try to reopen. If money is the problem and insurance isn't covering it, you can raise money from your members, add investors, or look to the banks for a loan, have a disaster sale etc. There are also community resources available for small businesses (these are very competitive but you should try for them). But the main issue is what you need to do for your sanity. Restarting can be hard and take a lot of energy so you need to either go all in, or not.
4. If people were hurt you need to talk to your lawyer first. You can express to the people who were hurt concern, send a get well card, give them a call on the phone and hope that they are all right. Your lawyer will say "don't ever admit wrong doing". This is possible while at the same time expressing a human hope that the persons hurt will recover. You have to worry about lawsuits when people are hurt, often they will cast a wide net as a matter of practice to see if they can get money to help with their costs. So speaking with your lawyer is a good idea anytime there are "issues" with the park. You should have a working relationship with a lawyer anyway. I know it sucks to go in to the office, speak with this person for 1/2 an hour and get charged like $200. But protecting yourself and your business is important too, and these periodic meetings help ensure a good relationship and ensure that you are addressing your liability and risk issues. If you are concerned about the costs of these visits, have an agenda when you go in, limit non productive time, and get out quick.
5. Clean up and get back to work! With contests, events, and lessons, reschedule these events. Spend some money advertising to get the word out to those people who might not know that you are open yet. Plan a big re-opening event with music, contests, etc. to generate a buzz. Update all your media, website, twitter, facebook, google+, or other forums that you publish. Get the word to the parents that you are safe, clean, and ready to entertain! Getting the word out will take a little more than just opening your door, especially if there was a lot of damage in the area. Spend the time and money to let your constituents know your are doing business. You might have to cut back on some hours of staff at first if business continues to be slow. There is little predicting how the community will react to a disaster and you need to be flexible, proactive, and responsive.
Tuesday, April 12, 2011
How to start an indoor skatepark
As a guide I thought I would break down what a novice would need to do to start a skatepark from scratch.
1. Formulate a plan - how will it work, who will work it, how will you pay your bills, what business structure (tax and liability issues) will you have?
2. Do some research - Do you even know where you could put a park? What are the costs per month of the building? taxes? parking? how will people get there? How many skaters are there, and how many of these will pay to skate?
3. Get your finances in order. Do you have money? Do you have enough to exist for 6 months without earning a cent? How long will you be able to have expenses without making money before things will get stressful? The longer you can last, the longer you will last. You will need build up time with lots of expenses and no income. What happens too if people are slow to respond? Plan for the worst case scenario, and work for the best. Can you spread your own finacial liability out with other investors?
4. Market before you have anything going. Start the buzz early.
5. Plan for a media blitz for when you open, get all the free press you can. Invite web, print, tv to your place. Have an "event".
6. Maximize your revenue. Don't just rely on skateboarders to pay the bills. Sell food, stuff, lessons, rentals, private park hours, party rooms, party events, christian events, before and after school events, camps, demos, advertisements, group lessons, what every you can. There is no shame in making this business work by selling things, this is your business, you have to pay yourself, your taxes, lights, sewer, trash, etc.
7. Keep it clean, think of the parents. Parents want a safe place for their kids, they are the ones footing the cost of this place. Make them happy with a nice place to watch, use the rest room, read whatever. Sell them things while they are there.
8. Network - skateshops, other parks, parks departments, community service, police, whomever can help you get people in the door.
9. Keep good track of your expenses. This takes time and effort. Make sure you have a good system to record data for you, what sells, what doesn't, who comes, who doesn't. Use your data to improve your business.
10. Hire good people who are kind yet firm about helping you stay in business. Free only means you paid, not them. You aren't competing with free, free offers nothing but ramps and rails, you offer lights, food, supervision, air conditioning, heat, a phone, a pair of eyes that are ready to help if someone is hurt. This is worth money and people need to understand this.
11. Free yourself to do business things - If you are spending all your time at the park, hire someone to help you do the things you need to do. Spend some money. Is your money better spent hiring someone to man the front, or design an advertisement?
12. Celebrate your members! Make them want to belong!
1. Formulate a plan - how will it work, who will work it, how will you pay your bills, what business structure (tax and liability issues) will you have?
2. Do some research - Do you even know where you could put a park? What are the costs per month of the building? taxes? parking? how will people get there? How many skaters are there, and how many of these will pay to skate?
3. Get your finances in order. Do you have money? Do you have enough to exist for 6 months without earning a cent? How long will you be able to have expenses without making money before things will get stressful? The longer you can last, the longer you will last. You will need build up time with lots of expenses and no income. What happens too if people are slow to respond? Plan for the worst case scenario, and work for the best. Can you spread your own finacial liability out with other investors?
4. Market before you have anything going. Start the buzz early.
5. Plan for a media blitz for when you open, get all the free press you can. Invite web, print, tv to your place. Have an "event".
6. Maximize your revenue. Don't just rely on skateboarders to pay the bills. Sell food, stuff, lessons, rentals, private park hours, party rooms, party events, christian events, before and after school events, camps, demos, advertisements, group lessons, what every you can. There is no shame in making this business work by selling things, this is your business, you have to pay yourself, your taxes, lights, sewer, trash, etc.
7. Keep it clean, think of the parents. Parents want a safe place for their kids, they are the ones footing the cost of this place. Make them happy with a nice place to watch, use the rest room, read whatever. Sell them things while they are there.
8. Network - skateshops, other parks, parks departments, community service, police, whomever can help you get people in the door.
9. Keep good track of your expenses. This takes time and effort. Make sure you have a good system to record data for you, what sells, what doesn't, who comes, who doesn't. Use your data to improve your business.
10. Hire good people who are kind yet firm about helping you stay in business. Free only means you paid, not them. You aren't competing with free, free offers nothing but ramps and rails, you offer lights, food, supervision, air conditioning, heat, a phone, a pair of eyes that are ready to help if someone is hurt. This is worth money and people need to understand this.
11. Free yourself to do business things - If you are spending all your time at the park, hire someone to help you do the things you need to do. Spend some money. Is your money better spent hiring someone to man the front, or design an advertisement?
12. Celebrate your members! Make them want to belong!
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