Last Updated on September 9, 2023 by
Who doesn’t love to have a good time with their friends and family in an amusement park? It is one of the most popular holiday spots for everyone. There are few things more thrilling than riding a rollercoaster and screaming your way to the bottom. The fun only doubles when you combine all of these with water!
Therefore, thinking of starting a water park is a smart business idea, but not the easiest one. There is more to it than just registering the name with the state. Water park businesses often require a lot more movement than other types of jobs. You will spend a larger portion of your days walking, running errands for your business, and completing a variety of chores. Like every other business, building a water park from scratch comes with a tonne of challenges.
But, worry not as in this article we will cover the top ten challenges that are faced by water park builders so that you can stay prepared and plan!
Table of Contents
Creating an action-plan
Every entrepreneur needs to have a crystal clear business plan to turn their venture into a successful one. Especially, when it comes to something like a water park business, it’s essential to have a full-proof plan. You’re investing a tonne of money and you’d naturally strive to get the maximum ROI too.
Lack of planning can cause serious troubles for your business. It is safe to say that creating a water park building plan is the first challenge every water park builder will face.
Overseeing Legalities
Partnership, sole proprietorship, corporation, and LLC (limited liability company) are the most prevalent business types. Every business involves a tonne of formalities and if anything goes wrong, you can land up in legal trouble. The legal troubles usually start when someone sues the water park or if you do not have a proper tax file.
Especially amusement park businesses such as water parks can get sued anytime over the tiniest thing. If you want to protect yourself in case such a situation arises, establish a legal business entity like a corporation or LLC. It will stop the government from holding you personally liable. Make sure to learn all the legal procedures before jumping into the business.
A park could use comparative negligence and acceptance of risk to defend itself. Guests at water parks are also required by law to behave in a sufficiently cautious manner. If they are injured due to their recklessness, the water park’s liability may be lessened or eliminated.
One helpful tool that can help you in certain situations is a liability waiver. Liability waivers should be crafted with simple language and terminologies so that the person reading them understands everything clearly.
Market Research
A water park business is different from a lot of other businesses. There’s a lot of risk involved, and you cannot put much at stake since it involves public safety. Before starting, make sure you do a lot of research and know your market thoroughly.
Managing Taxes
Before you start your business, you’ll need to register for some federal and state taxes. Registering for taxes and overseeing the entire process is one of the biggest hurdles faced by water park builders.
Applying for taxes is not that difficult. It is one of the easiest things to do. All you need to do is apply for EIN and it is completely free.
Depending on your business type, you will have different taxation alternatives. Make sure you do your homework on handling taxes before setting up your business.
Risk Management Issues
Water parks need to take the necessary precautions to protect their visitors and the staff. However, inefficient water park management gets the owners in a lot of trouble. It is the responsibility of management to create, publicise and enforce basic water play and safety guidelines.
You need to be very careful while choosing the equipment. Park managers and owners make the common mistake of not being thorough with the equipment they install in these parks.
The equipment’s safety should be a top priority, and it should be constructed of non-skid materials with low electrical conductivity and heat reflection.
For instance, if you want to install a water slide, you need to know the different types of water slides that exist like water slide tubes, adult water slides, giant water slides, etc.
You must choose the best out of all the water slide manufacturers available in your budget and area. If your rides are not safe and mess with public safety, your business will go down like anything.
- In case any accident occurs, make sure you record all the necessary details. It is also a good idea to ask the victim and the eyewitnesses a complete detail of the incident and what exactly happened.
Proper Treatment Of The Recirculated Water Supply
Although recirculation of the water reduces utility expenses to a large extent, adequate treatment of the recirculated water is required. Highly resistant bacteria like E.Coli require multiple runs through the treatment process to thoroughly clean the water, so water park owners should prioritise investing in good water treatment plants.
Training Staff Members
It is essential to train the ride operators and the lifeguards properly for helping customers to ride, analyse any problem, and deal with challenges when they come up.
There have been plenty of records that show injuries caused by accidents happening in water parks. Water slides are the major cause of accidents at water parks and that is why there are rules that need to be followed.
According to National data, water parks in the United States have been the leading cause of fatal and non-fatal drownings. Without proper instructions on all safe operating methods, employees will feel lost and might not be able to prevent injuries or accidents.
Finding The Right Manufacturers/Suppliers
A majority of companies in this industry choose to work as suppliers or manufacturers, which isn’t necessarily a bad thing. Finding the right supplier, on the other hand, might take a lot of time, effort, and trial error. This method, if done correctly, can help you save money and launch your business at the earliest.
Low-Profit Margins
Water park profit margins are generally around 43%, making it more difficult to incur new expenses while maintaining profitability.
When it comes to launching a water park business, there are costs associated with selling a real product. You need to strategically develop a budget for maintaining these expenses.
The Struggle Is Real
All in all, it can be financially exhausting if you kickstart your business or choose to not pay yourself or pay an even smaller amount than what you were previously making. It is crucial to implement certain lifestyle changes and create a plan for yourself so that you save up on wasting any time or resources in the beginning.
To wrap up,
although a water park business possesses a tonne of challenges and threats, they are a fun way to provide some recreation to people of all ages. At the end of the day, safety should be your ultimate priority. Give your employees the highest quality training about safety guidelines, basic operational practises, and CPR. Although the industry was negatively affected by the COVID-19 pandemic, it is still a dynamic one.
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