Online Session Sales

Presale sessions can help everyone plan

Like movie tickets or concert tickets your skatepark can pre-sell tickets to sessions you sell, online or in the store.  Showing people that there are limited numbers of session entrances can also help sell more sessions ahead of time.  So if you have a lot of people coming in groups from out of town and they know their schedule, you can ensure these people that they will be able to get in and have the trip they were planning.  Similarly if skaters and bikers see that a session is almost selling out, they can elect to come at another time rather than trying to pack in to a crowded session.  Having a website that enables session sale and provide data in real-time can also help you plan on staffing needs.  By seeing that there are a lot of sales on afternoon sessions or on weekdays, you can staff the appropriate number of people to make sure that everyone is having fun, and all areas have enough people to keep lines down.  An additional benefit of adding online sales is that people won't show up despite having paid, or they will have bought too many tickets and will absorb the cost for a variety of reasons.  After your stated "no refunds after this date/time" it is reasonable to assume that giving a refund could have turned away others who would have paid, thereby losing you money.  While you could give a rain-check, this could be a way to increase sales and keep a steady flow of capital into your business even on non-weekend/busy time periods.  Adding functionality like this could go hand-in-hand with having a mobile ready and truly interactive site will help you and your customers get the information they need, to make their visit better.

Identifying Market Segment for Skateparks

Often times I hear of people who say things like, there are a ton of skaters in my town so I want to start a skatepark.  I think this is a great start but are there really a ton of skaters who will use your park is a question that needs to be asked.  In traditional business plan startups, people often look at an idea, figure out how much it will cost and look at the population as a whole and go from there.  But when your money and your sanity are on the line you want to make sure that there is a sustainable market for your business before you spend money.  Ok, so going from the premise of a "ton", who are they?  Teenagers? Little Kids? At a crappy free park?  What these people show are Market Potential, it doesn't mean that these kids will come to your park.  Sitting out and counting these people, noting their age and demographics can help to give you a better idea of the dedicated skaters.  Interview the skaters/bikers you find and see who they are, what they want, and what they are will to pay for.  Similarly making friends with the local skateshop can help you better understand the market potential by providing you with stats on patrons.  This is vital information.  You have a theory, and until you go out and test your theory you'll never know for certain what is reality.  After you have gathered some data, go back to your idea and see if the market potential fits the reality.  You are trying to create a better understanding of the market by understanding your clients better. To do this you need to get out and talk with the end users.  If you have a drawing of your park, share this with your potential clients, if you have a cost structure, share this with your clients as well.  Their feedback will help you understand what you have in terms of a product, and what your market will bare in terms of price.  At some point soon you can start looking for the archetype of a typical patron.  These conversations with parents and kids can help you understand who will come to your park, how often, and at what cost.  If you have a website you can also use that to gather information.  Put a survey on the front page and try promoting it.  Another way of gathering this info would be to do a Facebook ad campaign targeting a very select group of users in a small demographic area.  You need data to make a good decision, and it won't just come to you in a dream.  So you need to go get it.  When you have a market archetype you can then figure out how to cater your park to meet their needs.  Lets just say that Junior High aged skaters and bikers were the best respondents to your survey and interviews.  These kids have a desire to come to the park 2x a month at 12$ a pop.  They expressed they skate all the time and their parents said they have very few options for entertainment.  So these end up being the core market archetype, with other groups like teens, young adults, little kids fill in your market.  Spending your time to cater your business to meet the basic needs of these skaters first is the best idea to ensure your success.

Check out the progress of a new park!

Greetings all, thought I would key you into a park that is in the making.  All Together Skatepark is being built in Seattle Washington and is going through many of the things that you all might be interested in.  Starting up a park in a city is expensive, starting one indoors even more so.  Check out their progress here: http://www.alltogetherskatepark.com .  Many of the people that helped me get going when I owned a park are working on this new iteration.  One thing that hopefully you all are learning is that it takes a lot of help and a lot of information to get all your services and setup together.  Chris is making it happen in Seattle now.  Do you have another project to help us all look at the process of making a park or advancing a park?  Let me know (contact info on right) and I will help you promote and plan.  Don't forget that I have a good book on opening a park and obviously this blog is a good resource too.   Good luck ATS.

Diversify your offerings

Beyond simply adding sessions or events to your day you can diversify your offerings in your space to help your business grow.  Who hasn't seen McDonald's playgrounds, or gone to an indoor soccer building with some climbing wall operation off in a corner?  These two ideas can be a way that your site could use some of it's space to help get people through the door.  Programming of events and services is always important, but having a large source of revenue is equally important.  Right now you might have your entrances, events, lessons, food, and as my last post pointed out - a party room, so where do you go from there?  I was reading an interesting article recently from wired.com about the Lumberyard indoor mountainbike park and thought that here was another offering that used many of the building and management skills you probably already have.  Take a look here: http://www.wired.com/design/2013/04/lumberyard-mountain-bike-course/  Finding revenue sources that fit with your space and your clientele is a double win.  Being able to attract people from a larger part of your area can help you make a strong and viable business.  While your heart may be in one aspect of the business like skateboarding or BMX biking, there are good reasons to consider offering more aspects of your business that are complimentary.  So say you have a really good indoor park with an outside area, perfect for a BMX racing course.  Or what about the massive ceiling hight you could put in a high ropes course over the track or a climbing wall.  Like I had said on my last post, an empty room is an opportunity, and an empty section of your park is also one.  What you will be doing is expanding your resources, taking advantage of your current systems and making the most of your existing skill sets.

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.

Business models for a skatepark

When considering how to make a business like a skatepark, one must look at other models to see how they run their business, and what a skatepark can use as their model.  The basic model used by many skateparks looks a lot like a roller rink, movie house, or amusement park.  In this model, patrons pay entrance and enjoy their time.  From many of these skatepark operations we see a reliance on entrances as the means of supporting the park.  Due to the fickle nature of skateboarders and often reliant on weather to drive people indoors, this model may not be the best one for every environment.  Unlike movies that change their show every week, skateparks are very static in their offerings.  Often change requires money and time, which is hard to come by sometimes especially if entrances are and have been down.   Similar to this model is the amusement park.  The largest parks rely on people traveling large distances to participate.   6 flags has an enormous budget and spends extensive money on innovation and novelty.  This model requires a lot of funds, advertising, and less change, but is similar in operations as a skatepark.  Both of these businesses have high prices, often have one to two visits per person per year, caters to older children and adults, and uses a captive audience and high food mark ups to make most of their money.  They also have the advantage of not offering a specialized skill sport as their only draw, which makes them more capable of appealing to a larger audience.  The point of these two operations that I feel could be emulated (copied) would be the easy to prepare and relatively profitable food choices, and the layout of amusement parks as a way to offer different experiences in a park within the confines of your building's space.  Food, if possible, needs to be a part of a park that relies on entrances as a means of income.  Offering something for the fans, friends, and parents of the patrons allows you to maximize the market and profit from visitors to your park.  Everyone gets hungry and thirsty but not everyone can ride your ramps.  Providing and monopolizing on every visitor can make your business profitable.  Similarly you can offer a different experience in your park's confines by laying out your park into different skate areas.  You could have a street course, a tricks area, and some miniramps, all typical parts of a skatepark.  But if they are crammed one on top of another, then the idea of "park" is gone.  What if you had areas that were designed for these types of skaters separated with walkways, seating areas, concession carts and the like, to provide "park" to your skatepark.  While some could argue that these areas don't maximize the skating which is what these parks are selling, I would counter that you are actually offering more than just some ramps pushed up against the wall.  You are offering a skate scene, and this is crafted and manipulated by you.  While a movie house is offering the latest flicks, it is also offering a movie experience that differs from your home.  Similarly, an amusement park understands that quality attractions do bring the customers in, and getting them to stay, relax, and have fun requires spaces  where they can relax, meet up, and eat food.  Looking to these aspects of other similar businesses can help you create a skatepark that is interesting, unique, and profitable.  I will blog soon with other examples of business models that could work for different types of skateparks.