Mission We aim to provide a state of the art and fully equipped play area for children to enjoy their

time happily. Our professional personnel will ensure a safe and secured environment for the children hence making their visit a memorable experience and creating a piece of mind the families. Vision We aspire to be world leaders in providing excellent experiences in an indoor play space environment by having outlets in over 30 cities in Europe and creating opportunities for recreational enjoyment and education for children. Market analysis and marketing strategies According to the latest UK census reports there are currently 560,000 children (under age 16) living in Cardiff and the numbers are supposed to increase by 5% by 2023. The total childcare industry has also recorded a growth of 30.1% between March 2004 and 2008 amounting to 4.79 billion pounds. The population of 0-9 year olds however declined despite an overall increase in UK birth rate. The Childcare Act 2006 and the creation of the Department for Children, Schools and Families (DCSF) in 2007 show clearly that the issues of childcare and safety is of utmost importance in the minds of UK parents. As the number of working parents has continued to rise (80% of women whose youngest child was under the age of 16 worked part time) the demand in this sector is rising irrespective of population rates per se. Finally the Government of Wales itself has set up the Childcare Task Force in 2001 to address the needs of children and acknowledged that one of the ways of doing this was the development of integrated childrens centers. Key Note forecasts that the total UK childcare market will increased by 23.2% between the years ending March 2009 and 2012, to reach 6.32bn. In Wales, it is seen that the typical weekly cost of all-day out-of-school care in the school holidays was 76.35 in 2007 and costs for the whole summer holiday period in Wales ranged from a minimum of 90 to a huge 840. If we forgo the fact that the best care is provided by the parent, it is seen in terms of the type of childcare that respondents would opt for themselves, there was a clear preference for nurseries/day care centers (31% in 2005 and 58.5% in 2008) rather than childminders (17% in 2005 and 40% in 2008) or nannies (8% in 2005 and 22.1% in 2008) Further there is a continuing rise in concern about obesity in children and 81% of all UK adults feel that children now do not get sufficient quality play time which they attribute as the major cause of obese children. Also adults like to have a part of their leisure time all to themselves, be it when they are hopping or just going to a pub. However, as is the recent trend in workplaces which are childcare friendly, there is also a growing demand (and thus supply) for play areas and centers wherein the parents can leave their child
1

for a while in safe hands and have their own recreational time. The success of the Wacky Warehouse concept in the UK which incorporates child play areas in pubs and the presence of play areas in IKEA and McDonalds bears testimony to the fact. Finally Cardiff is the principal financial center in Wales and was placed 7th out of all European cities in the fDI magazine as being a city which attracts investment. Recession notwithstanding, there is some disposable income of the families which is seen by the growth in spending in consumables over the past 5 years. Also the 14.6 million tourists who visit the city will make up a considerable portion of our target market. The UK population tends to be geographically mobile and, in turn, grandparents are often not in a position to help care for their grandchildren. In general, the extended family has long since given way to the primacy of the nuclear family in British life. Thus there is an existing imperative to have a safe caretaker for the children in the family. Now we came up with the concept of establishing such a play area replete with the latest arcades and soft toys in the heart of the city of Cardiffin the City Center. Cardiff has been judged the 6th best city in shopping in the UK surpassing others like Bristol and Leeds and the city center holds the maximum number of shopping malls. We saw an opportunity in that there is a large population of families with young children who go to shop in the city center but there is no suitable place for them to keep their children in a safe and secure environment to shop in peace. Our play area will be situated in St Davids center which reports a footfall of 36 million a year. Thus we will benefit from the prime location and will be able to provide a very viable alternative to parents to keep their children safe and happy with us. There are other play areas in the city such as in the Red Dragon Center but most of them are unsupervised and none are located in or near the city center. There is no doubt that there is room in the market for a high-quality facility. We also came up with the idea of establishing a small but hygienic and operational beauty salon only for kids to be located alongside our play area. It will work to complement our play space as well as a standalone operation. The salon business has been growing slowly but steadily over the years in the UK and currently enjoys a RSP of 128.7 mn. There is seen a continuing emphasis on looking good even for children and though this business will not be our primary focus we hope to be a part of Guild of Professional Beauty Therapists and employ sufficiently trained staff to take care of the special safety needs of children. We notice a market present for safe and special haircuts for children who would otherwise need to be serviced in general salons and thus we target solely at them and the atmosphere of our salon will be vibrant and colourful and will reflect our aim to cater for kids. Our last product will be specially designed stroller carts whereby parents can carry their children while shopping. This will also be
2

a secondary business but we foresee a demand here which we hope to meet. The cafeteria will be outsourced as it is not part of our core business ideals but we will make sure that the food served is fresh and maintains hygienic quality concerns. Target market : With current fears of outdoor play due to higher crime rates and the rather inclement Welsh weather we believe that our facilities will find use with a wide range of the local community.

In terms of families we are mostly looking to target double income families as they are the ones who will be needing the service most and will also be able to afford it. Trends suggest that children spend more time on average with their parents, an average of 1.5 hours per day, more than any other generation of children. Thus there will be incentives for parents to stay if they wish and a cafeteria plus newspapers/magazines as well as a sitting area where parents can socialize and mingle should particularly interest them. Children aged 5-10 will be our most important segment. They usually have the most amount of discretionary spend and also utilize their pocket money based upon their own likes. Finally we are having the most number of equipment and facilities targeted at them such as arcades and physical play spaces such as rock climbing and jumping castles. We appreciate the fact that children will be spending most of their time in school and thus we will have particular schemes to attract school groups such as special educational programs and themes. Our last but not least important target will be toddlers where most of the specially trained staff attention will be concentrated. We also encourage mother child bonding and there will be opportunity for the mother to engage in play with her children. The toys and blocks for them will be specially made with blunt edges and meeting safety regulations. A SWOT analysis will better project our capabilities and shortcomings.

Finally we also include a PEST analysis to further our claims as to how we expect the external market to behave. Political : The provision and funding of childcare has been a central element of government policy since the introduction of the National Childcare Strategy in 1998 and the December 2004 publication of Choice for Parents, the best start for children: a Ten Year Strategy for Childcare indicates that childcare is set to remain high on the agenda for at least the next 10 years. In the private sector, private play areas and care centers need to position themselves to face the increasing state competition, as well as potential competition from child minders and nannies. Economic : An increase in per capita spending as well as an increase in spending for child recreation is seen. A revival from recession is also on
4

the cards and in general the economic landscape of UK is improving. The childcare sector is itself expected to grow by 23% from 2009-12. Social: Women are increasingly opting to return to work while their children are still young. Over the past decade, this has tended to apply particularly to women in the higher socio-economic groups, who tend to have more invested in their careers, and who are also more likely to be able to afford childcare. However, as a result of government initiatives which offer free provision of education for 3 and 4 year-olds, and open up opportunities for flexible working patterns, this trend is extending further into other socio-economic groups. This is creating greater demand for more child care and play areas. Technological :The internet is playing a vital role in spreading information and giving more choice to potential customers in this sector. Payments are increasingly made by credit cards and demands for online payment schemes have risen. Finally speedy technical advances mean that even the latest equipment have a higher rate towards obsolescence. Marketing plan : A detailed and well maintained website will serve to educate our customers about our services. We aim to have it listed in local community directories and with the tourist board. Further we will have a variety of click it ads present in other websites catered to childrens products such as kids toys and clothes. A budget of 2500 will be allocated to this.

We will enjoy some surrogate advertising through the mall wherein we will be enlisted as one of the providers of entertainment and hope to be a source of prime attraction of footfall there as well. Regular weekly promotions such as themed parties based on pirates or painting competitions will ensure that there is always something new and innovative we have to offer. We will advertise with full color ads in the regional newspapers such as The Daily Post in order to inform our consumers. This will be discontinued after the 1st year as we presume that an impact will have already been made. A budget of 10000 has been allocated to this.

Professionally designed brochures and leaflets will be used to provide details of the children's parties and themed or special events on offer, as well as details about the play area. A budget of 2500 will be allocated to this.

We hope to enjoy word of mouth advertising after the 1st 6 months of being in service due to our dedicated and professional staff as well as general customer satisfaction.
5

We will send promotional leaflets to relevant community groups such as Brownies, Cubs, and childrens after school clubs.

Adverts will be placed with other shops catering for children like toy shops and clothing stands. We expect to provide some form of advertising for them as well in our store and we do not expect to be spending our money on this. A loyalty card with discounts or gifts for higher levels of return will be provided. This will encourage repeat business and help to build customer loyalty and a closer relationship.

Our last marketing strategy will be running special occasions for our different target groups. We will also do our bit for the under privileged children by running charities and events for them whereby we should benefit from positive image and fame.

Sales strategies will involve having tours of the facility for both parents and children and several freebies on start up to attract more customers.

Service personnel and HRM :

We as company founders will ensure that the venture is a success. We

have a varied experience as a team as we have worked in diverse areas of marketing, finance and HR for industries related to both service and manufacturing. Some of us are parents already and all of us would like to be one, one day so we can see the needs of the industry and would be keenly observing trends and future needs integral to running our business smoothly. While we will not be actively working in the business ourselves, we might take care of some managerial responsibilities in the interest of the business.
A team of 6 child care specialists will be employed initially which will

be incrementally increased according to our prediction in the number of children coming in to enjoy our services. Further there will be a full and a part time manager to start up with, both of whose numbers will rise as the business expands. They will handle the essential managerial roles of organizing, leading and communicating decisions to all employees as well as looking for new business opportunities and areas to improve or focus more. Finally a team of 2 specialist hair dressers will be employed in the salon. The important bases for selection of candidates will be some experience in child care and first aid. Further empathy and care in dealing with both children (they have to enjoy the play experience if we want them to return) and parents (if they are not happy with the
6

quality of service they will be unlikely to return) is required. Finally an interest in children and an ability to learn the operation of new equipment is an added characteristic which we would desire. Recruitment and selection will be done keeping all legalities in mind and we will not discriminate with regards to age, sex etc. We would in fact want heterogeneity in our workforce especially after we have expanded a bit and would want to include a high proportion of women in our team since most young children have a positive predisposition to them.
CPD courses and continuous employee development will be our

objective. We want our employees to be happy and thus we will provide them a range of fringe benefits and flexible reward schemes. As it is rather hard to judge intangibles in a service sector like ours we will not have an IPRP scheme but will have a continuous assessment of standards by means of customer feedback and managerial assessments to prevent dilution of quality.
As services call for strong interpersonal relationships between the service provider and the customer, we will invest more in improving the interpersonal skills of our employees. Other ingredients of training will include technical job skills and cultural values and norms. We want the transformation of motivation in our employees into a competency. Our employees will have knowledge of Royal Society for the Prevention

of Accidents' (RoSPA) guide to soft play standards. They will also have undergone a disclosure check by the Criminal Records Bureau so that parents are satisfied their children are in safe hands. Employees in the cafeteria, though outsourced will have to maintain the same safety and performance standards.
We will comply with the Health and Safety at Work Act, which covers

all work activities and their associated hazards as well as the Management of Health and Safety at Work Regulations.
The average national salary for a childcare worker is 11,554 - 17,140

with 5-9 years of experience. In 2010, the average salary for Childcare Worker jobs is 15000 and for Wales it was 12180. We will pay an annual salary of 17000 which is near the higher end of the pay scale. It will consist of a base pay of 13000 and a flexible pay consisting of the rest which the worker can obtain in any form he wishes such as medical insurance etc. We will increment the salary at 5-6% per annum depending on performance levels over the year and we are paying on the higher end since we would demand professional and skilled service.
7

 In 2010, the average salary for Hairdresser jobs is 13,955. We will pay

16000 and we will be looking for personnel with experience in this sector who also have an experience in handling children.
Our office caretaker and manager will be paid 24000 which is about the median pay scale in UK. Our general/operations manager will only be employed part time and will be paid 20000 for his efforts. We will opt for mediated external recruitment channels and will put up ads in various job sites to this effect. We are not looking for really particular skills except general managerial ones but any relevant experience as well as a positive past record will be a bonus. Finally we will have a part time accountant as well who will be paid 15000 as remuneration. We expect an increase in rush during the holidays ie. The months of June, July and December. We will recruit some contingency staff in order to meet surges in demand and we might keep them as full time if we are impressed by their performance, which should also serve as an incentive to motivate them. We will mostly follow a policy of soft HR and we want our employees to be satisfied with us as that will show in their attitude towards customers. However, our manager will be dealing with disputes and if they are of concern the original investors will have a look in to the matter.

Products, services and operations: Fundae Indoor Play Area will offer services for ages from 2 year old kids to 6 years old. Hours of operation are from 10 A.M. to 5:30 P.M., Monday through Friday and 10:30 A.M. to 7:30 P.M. on weekends. We will be located in Cardiff in the heart of the city-the city centre and will be placed inside the Morgan arcade in the St. Davids area which also sports other fashion, eating and retail outlets. The main play area will consist of approximately 2200 sq feet of space and 500 sq. feet will be for the salon plus 300 sq. ft. for the cafeteria. The play area will be temperature controlled for the comfort of our customers. As it is inside the mall space security should not be of concern and parents will have the option of either leaving their kids to play knowing that they will be under safe supervision from our trained personnel and can browse or shop in the city center at their own leisure, or they can even enjoy having fresh food and beverages while their kids are enjoying their time from our own cafeteria which we will lease out to Greggs. Our area will be themed on the basis of a garden and there will be colored fences separating the different areas. We will price our general entry at 5 for kids aged more than five years and 3 for kids below five. Toddlers and younger children will not have to pay anything for playing with soft toys or Lego bricks. Jumping castles are great for any play or celebration and they are safe and lots of fun. We will also sport a large jumping castle in our play space for children of all ages above
8

4.Entry into the jumping castle will be priced at 2 and all other arcade games will cost 1 for a single play. Kids activity bags will be one components of the indoor play area, including simple craft and coloring items, such as stencils, crayons, tickers, paper and puzzles. Play areas will be regularly inspected to make sure they are up to code and in good shape. All bars and outer surfaces are covered with a durable and heavy rubber cover so no child gets hurt during play time. The area for toddlers will be supervised by our personnel at all times and parents shall be encouraged to join their wards in play in order to ensure their complete safety. We will also have a mock rock climbing area for children from 8 to 12. Both the castle and rock climbing have been set up keeping in mind that we desire both physical and mental development of the child. We will facilitate holding events and functions as well as exhibitions in the play area space most of which will be held bi-weekly. We will also be having costume parties, themed days and special occasions such as Halloween nights for the children to enjoy to the fullest. The cafeteria will be small but functional and will have some variety of eating options. It will be outsourced to a major bakery in the UK---Greggs since their commitment to serving fresh, quality, affordable bakery food is synchronous with our purpose. Further we will have some vending machines of our own which will serve soft drinks and chocolates etc. The salon will have the latest child friendly equipment and 2 plasma screen TVs where free to air child themed shows will be shown. The entire dcor of the salon will be vibrant and colorful and we will invest in different themes for the salon in different times to engage the children to re-visit. Haircuts will have range from the traditional crop to trendy and funky styles but no special treatment of hair will be provided keeping in mind the possible deleterious effects of some of these treatments. We will price our salon haircuts at 15 irrespective of gender which is in keeping with industry standard for specialized hair care services. There are certain key problems which might arise in the process and we have identified them and figured out solutions on how to approach. Firstly there might arise issues in trying to determine the correct age of play. We hope to circumvent this by having bars based on average heights of children (for eg. 2-4 year olds have an average height of 100cms.) to prevent the inappropriate age groups from accessing all areas. Secondly we come with the process of payment. We aim to have a magnetic card system which is quite cheap to install and which can be used to access all arcades and games. The card will read the total cost incurred by his/her ward and the parent can pay for it later upon returning to collect the child. The parent/s will also have the option to pre decide the amount of money (in suitable multiples) he/she wishes his/her child to spend as a maximum on that day and the card will be blocked if the child exceeds the amount. Finally any
9

money left over on the RFID card may be re used on a later date or refunded. Arrangements for both electronic and cash payments will be present. The simple process diagram for payment is presented below:
Parent s do own work. Pick child up

Enter play area

Obtain RFID card

Decide whether to impose price control

Leave child to play

Travel back.

We will consider safety as the most important aspect of our service. Although you can't stop all accidents, by watching the children directly at all times, you can stop them from jumping from high places, running too fast, or getting hurt when they don't pay attention to their surroundings by careful supervision and our staff will be trained to manage crises as well as unruly or boisterous behavior in the child. We feel it is best to keep the food in the eating areas rather than taking a chance that it can harm the child and thus food or drink while playing will not be allowed. For the salon, a parent must be present for the child to obtain a haircut not just for safety reasons but also since we feel it is hard for a child to decide such things. There will be certain rules to abide by and when the child first walks into the play area he/she will see a sign or list of rules to follow. In our service and organization we will try to incorporate elements of TQM.
We will maintain a customer focus by effectively addressing customers' needs and demands, and anticipate and respond to their evolving interests and wants. Benchmarking will be employed to meet our goal of continuous improvement. Because of the very puzzling nature of services and the consequent organizational contingencies that it warrants for its design, production, delivery and consumption, there is a need to focus on benchmarking not only hard data, but also certain behavioral features such as customer satisfaction and employee satisfaction, apart from comparing the services and processes through which they are delivered.

Pay for expen

Company ownership We are a team of 5 people who will provide the initial equity for the business and the business will be wholly owned and privately with no market listing. As the operation grows, we will consider re-registering the company as a limited liability company or as a corporation, whichever will better suit the future business needs. We are
10

desirous of private and public investment which will help further our service and also enable us to meet our expansion goals. Information strategy: 1. The internet will play an important role in educating the consumers about our product offerings and location, timings etc. We will have a dedicated website to that effect. Further our website will be interactive and will contain fun elements for children to play with each other while at home or with the computer. The website will be comprehensive and our vision as a company as well as a description of services on offer will be present. Finally there will be some internet only special offers which will ensure that people will want to look at our website regularly. Our website will be updated regularly and will be clean of too many ads.
2. We are having a loyalty program wherein we provide certain freebies and benefits for

repeat consumers. Customers will be asked to undergo a very basic registration process where they will also have to state whether the child needs any special considerations. They will then be provided with a magnetic card which they should keep. This card will help to determine the expenses incurred in that day (as explained in the operations part) and money may also be deposited in the card so as meet future anticipated spending. This card will not only simplify the buying process but will help in identifying potential customer preferences for us as well as usage and spending patterns of the children. We aim to target some consumers with specific new attractions or services and the data obtained will help in segmenting different groups. We however want to keep such ads to a minimum as we respect the privacy of our consumers.
3. Our financial and customer data, in fact all the data we will have will be stored using MIS

systems. With computers being as ubiquitous as they are today, we will rely
extensively on their IT systems. MIS systems are extremely useful in generating statistical reports and data analysis and we will also use them as a Management by Objectives (MBO) tool. Objectives are set using the SMART ratio by which managers and subordinates agree upon a series of objectives for the subordinate to attempt to achieve within a set time frame. Finally we wish to achieve maximum accuracy in our forecasts using the latest IT support.

4. We will employ TNS or Ipsos MORI to help us in our market research when we wish to expand organically. We will also carry out our own research via both hard and IT systems where customers will be invited to provide feedback. There will also be schemes where the kids will be asked what they liked best in return for a freebie like a candy or a small toy. Aims and Objectives: 1) We aim for 5% of the 36 million foot-fall to step and look and notice our positioning and 15% to have a passing glance. According to the latest UK census reports there are 560,000 kids in Cardiff and population will increase by ~5% by 2023. We have a modest expectation of 25 kids to visit our facility per day on average in year 1 and we expect the numbers to show a steady increase per year through superior customer service and word of mouth referrals.
11

2) We hope to become an established name in Cardiff by the end of the 1st year and hope to

educate and inform the local community of what we will be offering.

3) We expect to have a customer retain rate of 85% by the end of 1st year by means of our

dedicated and superior customer oriented service.

4) With a ticket entry price of 5 pounds per kid we expect about 35 families to make use of

our facilities and for us to break even by 5th year.

5) We wish to give back something to the community after our first year by holding free

entertainment events for schools.

6) We hope to expand our business to Bristol and Bath as well as refurbish our area and

introduce an IMAX screen in a separate area by the end of our 5th year in business.

Legal requirements:
Under the Protection of Children Act, adults working in close contact

with children must be vetted and we will follow this procedure.

The health and safety of the children using the play area is of utmost

importance and our materials and service will comply with the British Standards Institute BS 8409:2002 Soft Indoor Play Areas - Code of Practice. The safety of toys will be ensured since we will adhere to standards set by BS EN71-1.
Greggs who will supply our food abide by the Food Standards Agency

norms and also informs customers of the % GDA (Guideline Daily Allowance) for each product, so that it as easy as possible for the customers to understand what they are eating.
We will comply with the Health and Safety at Work Act which covers all

work activities and their associated hazards. We will report all injuries, diseases and dangerous occurrences sustained by the children or staff members while playing or working inside our play area, thus meeting Health and Safety Executive's (HSE) norms.
Under the Disability Discrimination Act, business premises must not

obstruct access for disabled customers or employees. We will not only comply but will also be pro active in allowing special access for disabled children and children with special needs and will have special games and play spaces designed for them. All bathrooms in the mall already have facilities for disabled access.

Critical success factors:

12

The industry has recorded an annual growth rate of 6.2% from 06-11 and generates a revenue of 2 bn. through 7699 businesses, employing 122,434 people (according to IBIS market research report). The industry has very low capital
intensity. Unlike a manufacturing industry, a service industry such as this one does not require machinery. The only depreciable assets include equipment used by the children, or staff. The level of capital intensity for the industry is unlikely to alter significantly over the forecast period. Wages, meanwhile, account for an average 72.9% of revenue and expenditure on wages accounts for a larger proportion of revenue than depreciation does, with a typical organisation in the industry using approximately 32.9 units of labour for each unit of capital. As a start up we feel we are well suited to enter this industry but since barriers to entry are low and there are no definite market leaders in the day care/play area sector, competition and other factors may deter our success. Herein we delineate the critical success factors on which our company will depend.

Marketing: Differentiating Fundae's care giving and educational services from traditional day care offerings, crches and nanny services will be essential. We are employing a variety of marketing resources and we have to make sure they make a cohesive impact on the consumer. We have to educate people before and immediately after our opening and we must be patient of slow sales in the beginning. An advantage is that we will be situated inside the mall so there will be some automatic publicity and interest generated. Service quality: We are a part of the service sector and since we are targeted at children every part of our service-scape will create an indelible impact on our consumers. It is imperative that we provide the friendliest and most efficient service. While the equipment we carry is important in its own right and we must aim for the most updated and safe & engaging equipment, the quality of service and care will no doubt create as much as if not more of an impact in the minds of our consumers. Reputation: Maintaining a highly regarded reputation for excellence in care giving and being the employer of choice in our market for child care is integral to our success. The better reputation we have, more will be word of mouth advertising as well as return rate. Also if we look to expand this reputation, or even if we can build a brand image, will help in this regard. Profitability: Controlling costs and managing budgets in accordance with company goals, adhering to strategic business plans for growth and expansion and reinvesting in the business and its employees is important to our success. Since we are a start up, its important that our financial projections are accurate. We have to revise our financials according to changing economic climates and consumer preferences and we will employ multi variate analyses and employ external help as well. We have some amongst ourselves (ie. Partners) who have specialized in finance and we will put their knowledge to full use. We will try to opt for minimum waste and leaner management but will not be willing to compromise on quality of service or of equipment for the sake of cutting costs. Finally we have a number of stand alone operations such as the salon and the shopping carts and we will contemplate on the profitability of each individually and as a group. Financial projections and strategies:
13

14

Products/Services We wish to provide an indoor play area for children which will provide a safe and secure environment for kids to enjoy. The play area is located centrally in the city of Cardiff, the capital of Wales near to the booming mall of St. Davids. We will sport a plush temperature controlled play space for children approximately 2500 sq. ft in area. The parents will have the option of either leaving their kids to play knowing that they will be under safe supervision from our trained personnel and can browse or shop in the city center at their own leisure, or they can enjoy having fresh food and beverages while their kids are enjoying their time. We will sport the latest arcades and a jumping castle inside our play area. We will also have a separate space for toddlers to play with Lego bricks and soft toys. We will also have a mock rock climbing area for children from 8 to 12. Our area will be themed on the basis of a garden and there will be colored fences separating the different areas. Keeping in mind that both children and adults might feel hungry from time to time, we will have a small cafeteria which we will lease out to Greggs providing the option of nutritious and healthy food. This will be supplemented by several vending machines including one for popcorn and candy. We will facilitate holding events and functions as well as exhibitions most of which will be held bi-weekly. We will be having costume parties, themed days and special occasions such as Halloween nights for the children to enjoy to the fullest. We will also be keeping a bunch of kids shopping carts for rent wherein parents can keep their children while they go around the mall. Last but not the least we will have a saloon only for kids where they can go for trendy or cool haircuts. We will have equipment made for kids that will have blunt edges and colorful designs. Also there will be screens in the saloon showing cartoons and documentaries. Our staff will also be having training related to working safely and interactively with kids. We will be in service 7 days a week from 10AM to 6PM. The facilities will also be friendly for children with special abilities taking into consideration that the play area is designed to meet the health and safety requirements. Company ownership We are a team of 5 people who will provide the initial equity for the business and the business will be wholly owned and privately with no market listing. Location and facilities We will be located in Cardiff in the heart of the city-the city centre. We will be placed inside the Morgan arcade which also sports other fashion and retail outlets. The St. Davids area which is adjacent to the arcade sports a footfall of 36 million per year. Considering there are no options specifically targeted at recreation for children we will provide a safe and exciting option for them. Also since we are based indoor we will not be subject to the whims of the weather in
15

Cardiff which can be especially rainy at times. Finally the city centre area is a safe and friendly place for families and is an attraction for tourists both within the UK and outside and is considered a prime location for shopping, both of which should be beneficial for our business. The arcade itself has been renovated recently and boasts of a plush shopping experience with excellent dining options. It also has a long history which is seemingly integrated with the history of modern Cardiff itself.

Objectives
7) We aim for 5% of the 36 million foot-fall to step and look and notice our positioning and

15% to have a passing glance. According to the latest UK census reports there are 560,000 kids in Cardiff and population will increase by ~5% by 2023. We have a modest expectation of 25 kids to visit our facility per day on average in year 1 and we expect the numbers to show a steady increase per year through superior customer service and word of mouth referrals.
8) We hope to become an established name in Cardiff by the end of the 1st year and hope to

educate and inform the local community of what we will be offering.

9) We expect to have a customer retain rate of 85% by the end of 1st year. 10)

With a ticket entry price of 5 pounds per kid we expect about 35 families to make use of our facilities and for us to break even by 5th year. We wish to give back something to the community after our first year by holding free entertainment events for schools. We hope to expand our business to Bristol and Bath as well as refurbish our area and introduce an IMAX screen in a separate area by the end of our 5th year in business.

11)

12)

Target market We are basically targeting all families with children in Cardiff who visit the city centre for various purposes. We are specifically focused on the younger kids and we aim to provide a viable option for parents who want their kids to have a great fun time while they can busy themselves with work or shopping. Marketing We have a marketing budget of 15000 pounds which we will primarily spend on internet advertising through click it ads as well as dedicated page in the first 2 years of our business. Another substantial chunk of that will be spent on distribution of leaflets both throughout the neighboring city centre area and in the mall space itself as well as occupying radio space in week-end mornings. This budget is increasing during the 3rd year to reach 20000 pounds for the sake of gaining more market share and more customers. Finally we will have a form of indirect advertising through positive word of mouth and events carried out on our floor space.
16

Competitive advantage We are centrally located in the heart of the city centre which typically has the highest foot fall with respect to whole city of Cardiff. We will be the only business of our kind there and the main competition we will face on starting will be mostly indirect or direct through some other competitors who are based far from the city center. Both our size and cost will work to our advantage. We are not too big so as to command an entire day devoted to us while we dont charge premiums but provide quality service without aspirations of becoming cost leaders. We have variety in our entertainment and even have a saloon specifically targeted for kids which may provide a stand alone selling point in its own right. A safe and secure environment as well as courteous and trained staff will be our forte. Finally we will be having a very different alternative to the many crches and day care centers in and near the city center wherein we are actually offering actual entertainment as well as keeping the children safe and not just offering a space to stay. Financials
Income Statement For The Year Ended 31-1231-1231-1231-122012 2013 2014 2015 Credit Sales Cash Sales (cost of Sales) Purchases 38500 154000 7600 58800 12610 0 49350 197400 7700 0 23905 0 81480 325920 7800 0 39960 0

31-122016 10731 96530 0 42924 386120 0 7900 0 47475 0 8000 0 52855 0

Gross Profit

Operating Expenses Licensing Utility bill Wages and salary Rent Miscellaneous Depreciation Advert 1986 12000 125475 100000 5250 10600 15000 25971 1 0 12000 125475 104000 5250 10600 15000 26172 5 0 12000 151550 108000 5250 10600 20000 29680 0 0 12000 151550 112000 5250 10600 20000 30080 0 0 12000 15155 0 11600 0 5250 10600 20000 30480 0

(Total Expense)

17

Net Profit / Loss

132250

-22675

102800

173950

22375 0

Other Income(Lease)

20000 11361 1

21000

22000

23000

24000

Profit before Tax

-1675

12480 0

19695 0

24775 0

(Tax 20%)

0 11225 0 112250

24960

39390

49550

Operating Profit Cumulative Profit/Loss

-1675 113925

99840

15756 0

19820 0 34167 5

-14085

143475

Cash Flow Statement for the Year Ended

Cash Flow from Operating Cost Cash from sales (Cash paid to suppliers) (Total Expense) Other Incomes (lease) Cash Flow from Operations Inventory Machinery Van Vending Machine Saloon Cart Total cash flow from purchasing inventory Cash Flow from Finance Capital(60000*5) 30000 0 15400 0 0 24911 1 20000 23750 45000 5000 3000 5000 800 58800 0 19740 0 0 25112 5 20000 33725 32592 0 0 28620 0 20000 59720 38612 0 0 29020 0 20000 11592 0 42924 0 0 29420 0 20000 15504 0

400 400 0 0

18

Net Cash Flow Accumulated Cash flow

30000 0 21745 0

0 33725

0 59320

0 11592 0

0 15504 0

Cash Flow Vs Years

Balance Sheet for the Year Ended

31-122012 Asset Credit Sales Cash Sales (Cost of Sales) Purchases 38500 15400 0 -7600 58800 31-122013 49350 19740 0 -7700 0 31-122014 81480 32592 0 7800 0

Depreciation Miscellaneous Other Income(Lease) Lease Total asset liabilities Licensing Utility bill Wages and salary Rent miscellaneous Advert Total Liabilities

- 10600 10600 5250 5250 20000 25525 0 1986 12000 12547 5 10000 0 5250 15000 2597 11 21000 34635 0 0 12000 12547 5 10400 0 5250 15000 26172 5

-10600 5250 22000 53150 0 0 12000 12547 5 10800 0 5250 20000 17352 5 19

Equity

20228

10422 5

35797 5

20