Do you want to start a rage room and need to write a plan? If YES, here is a detailed sample rage room business plan template & FREE feasibility report.
If you are passionate about solving anger problems among young adults and even older people, you should think towards starting your own rage room business. The basic aim of starting this business is usually to take the stress off people, getting them to vent their anger in a healthy way.
Since the advent of the first rage room, tons of unique and interesting rage rooms have been designed and more would still be designed to fit into the concept of creating the business. It can’t be overemphasized that opening a rage room is not an easy task, and you still need to be creative if you intend making money from the business.
One of the ways you can make money from your rage room is to ensure that you also add counseling and anger management services to your business proposition. Here is a sample rage room business plan template that can give you the needed guide to write yours.
A Sample Rage Room Business Plan Template
1. Industry Overview
A rage room, which also known as a smash room or anger room, is where people can vent their rage by destroying objects within a room. Clients can break items by throwing them against hard surfaces, throwing other items at them or smashing them with tools such as sledgehammer.
Rage rooms may consist of make-believe sitting rooms and kitchens with replicas of furniture and electronic gadgets such as televisions, DVD, chairs, tables and desks. In some cases, a rage room operator may allow a client to bring their own possessions to destroy if they so wish.
It is important to state that rage room safety is very important to rage room operators, which is why it is mandatory for clients to sign waivers, wear a protective body suit, mask, Kevlar gloves, and close toed shoes et al.
A report published by Wikipedia shows that the first rage rooms to open were likely in Japan in 2008 or earlier. The concept spread to other countries like Serbia, England, and Argentina. Today, there are hundreds of rage rooms in the united states.
The top players in the Global Anger Room industry are Today, Smash Therapy, SimplySmashing, Thundrdome Amusements, EXIT Holdings, Rage Room of Maryland, Smash Room, Rage Room Madison Heights and Battle Sports.
Rage rooms and other related businesses have come to stay and as a matter of fact, it is indeed solving problems for people who have anger issues. Hence it is an industry that is very much open for new participants to come and establish their own business.
2. Executive Summary
Calamity Calmer® Rage Room, LLC is a standard, licensed and well – equipped rage room facility that will be located at 1955 First St., #112 Highland Park, IL 60035.
This is one of the entertainment hubs of Highland Park – Illinois. We have been able to secure a standard facility in a central and easy to locate area in Highland Park. We are well equipped to service the whole of the community as well as visitors.
Calamity Calmer® Rage Room, LLC is going to become the number one destination for people with anger and stress problems in the whole of Highland Park – Illinois. Our facility is a safe place where clients can go to let their frustrations out.
We provide the items for smashing, the tools, and the Bluetooth speakers for clients to rock out to their favorite tunes. So also, clients can also bring their own approved objects for smashing if they so desire. Our rage room facility has enough parking space to accommodate about 15 cars per time.
We conducted a thorough market research and feasibility studies and we were able to come to the conclusion that Highland Park – Illinois is the right place to start our rage room business. Our client’s best interest would always come first, and everything we do is guided by our values and professional ethics.
We will ensure that we hire professionals who are experienced in anger and stress management. Calamity Calmer® Rage Room, LLC will be open 24 hours in a day during weekends (Fridays to Sundays) and from 6:00 am to 12 midnight from Mondays to Thursdays in order for us to accommodate people with different time preference.
This is why we have made provisions for effective floodlight system and also to recruit enough staff and to run shift amongst our workforce.
Calamity Calmer® Rage Room, LLC will at all times demonstrate her commitment to sustainability, both individually and as a business, by actively participating in our communities and integrating sustainable business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Calamity Calmer® Rage Room, LLC is a family owned anger management business; owned by Gregory Williams. The business will be managed by Gregory Williams and his son Knox Williams. Gregory Williams has over 15 years’ experience working as a stress and anger management professional.
3. Our Products and Services
Calamity Calmer® Rage Room, LLC is in the Global Anger Room industry to provide standard rage rooms for residents of Highland Park – Illinois which is why we have been able to put up a facility that can help us achieve the goal. We are optimistic that everyone who makes use of our rage room will definitely derive huge value for their money. These are the type of things that will be made available to our clients;
- We provide the items for smashing, the tools, and the Bluetooth speakers for clients to rock out to their favorite tunes.
- Offering anger management counselling session
- Sale of protective body suit, mask, Kevlar gloves, and close toed shoes et al.
- Sale of stress and anger management resource materials
- Sale of food and beverages
4. Our Mission and Vision Statement
- Our Vision of starting Calamity Calmer® Rage Room, LLC is to build a world – class rage room that can favorably compete with leading brands in the Global Anger Room industry.
- Our mission for establishing Calamity Calmer® Rage Room, LLC is to contribute our quota in helping people vent and manage their anger in Highland Park – Illinois and also to make profits from the Industry; we want to become the leading rage room – brand in the whole of the United States of America.
Our Business Structure
Calamity Calmer® Rage Room, LLC is in business to become the leading rage room company in the whole of Highland Park – Illinois and we are fully aware that it will take the right facility, management and organizational structure to achieve our goal.
We will ensure that we recruit only the best hands that can help us achieve all that we are set to achieve. The kind of the rage room business we intend building and the business goals we want to achieve are what informed the amount we are ready to pay for the best hands available in and around Highland Park – Illinois as long as they are willing and ready to work with us.
Our business will not be built only for the purpose of giving our customers value for their money, but also to make our rage room cum work environment highly conducive for all our employees. We will provide them with facilities that will help them stay motivated and deliver on their various tasks and goals et al.
In view of that, we have made provisions for the following positions to be occupied by highly qualified and experienced staff;
- Chief Executive Office – CEO
- Manager
- Accountant/Cashier
- Marketing and Sales Officer
- Rage Room Instructor/Assistant (5)
- Customer Care Executive/Front Desk Officer
- Cleaners
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creates, communicates, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of furniture and other equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment and managing interviewing process
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily activities in the rage room.
Rage Room Instructors/Assistant (5)
- Responsible for giving out the needed instructions as it relates to what is obtainable in our rage room
- Provide the items for smashing, the tools, and the Bluetooth speakers for clients to rock to their favorite tunes.
- Sale of protective body suit, mask, Kevlar gloves, and close toed shoes et al.
- Responsible for selling food, alcoholic beverages and nonalcoholic beverages
- Ensures that the room / facility is well arranged for another playing session after every session
- Responsible for recommending the replacement of worn out or damaged furniture and other accessories
Marketing and Sales Officer (2)
- Identifies, prioritizes, and reaches out to new clients, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Documents all customer contact and information
- Represents Calamity Calmer® Rage Room, LLC in strategic meetings
- Helps to increase sales and growth for Calamity Calmer® Rage Room, LLC.
Accountant/Cashier:
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting report
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for the organization
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for Calamity Calmer® Rage Room, LLC
- Serves as internal auditor for Calamity Calmer® Rage Room, LLC.
Client Service Executive
- Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the organization’s products and services
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
Cleaners (3):
- Responsible for cleaning in and around the rage room
- Cleanses up after customers and clean work area.
- Clears damaged electronics and furniture when required.
- Ensures that toiletries and supplies don’t run out of stock
- Handles any other duty as assigned by the manager.
6. SWOT Analysis
We are aware that there are competitions in the Global Anger Room industry which is why we took out time to conduct an effective SWOT Analysis before investing our hard – earned money into the business. We know that if we get things right before starting our rage room, we will not have to struggle before attract loyal clients and build our customer base to a level where we can easily breakeven in record time.
We hired the services of a HR and Business consultant with bias in business structuring to help us conduct SWOT analysis for our organization and he did a pretty good job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of Calamity Calmer® Rage Room, LLC;
- Strength:
One of the obvious strong points that will definitely stand as a plus for Calamity Calmer® Rage Room, LLC is the fact that our facility is centrally located in a densely populated – residential area in Highland Park – Illinois; our location is in fact one of our major strengths coupled with the support from stakeholders in the industry.
We equally have a team of highly qualified professionals who will work with our clients and lastly our facility is amongst the best that anybody living in Highland Park – Illinois can get.
- Weakness:
We critically looked into our Business model and we were able to identify two major weakness. One is the fact that we are a new business and the second is the fact that we may not have the financial resources required to match up with existing rage rooms in Illinois when it comes to employing experts in the industry and generating the needed hype that can drive traffic towards our rage room.
- Opportunities:
We are centrally located in one of the busiest and densely populated areas in Highland Park – Illinois and we are open to all the available opportunities that the city has to offer. We will be open 24 hours in a day during weekends (Fridays to Sundays) and from 6:00 am to 12 midnight from Mondays to Thursdays giving us the advantage to leverage on any available opportunity.
- Threat:
A major threat that we are likely going to face is the fact that rage room is a Green business and people have not fully embraced the concept in the United States of America hence it is likely going to affect patronage.
7. MARKET ANALYSIS
- Market Trends
If you are conversant with the Global Anger Room industry trend, you will realize that the increase in search for solutions for people with anger problems has propelled industry profit margins and that is good outlook for the industry.
By tradition, individuals with anger management issues, represent the primary demographic for rage room. However, as more individuals choose outdoor recreational activities and sports, they are less likely to spend time in rage room facilities.
Lastly, it is a common trend that as rage rooms grow, it becomes necessary for them to develop new service offerings or install new facilities that will help them attract more people.
Little wonder some rage rooms now have fresh juice and smoothie bar, retail food, alcoholic and non – alcoholic drinks et al within their facility to encourage people to relax and socialize. In order words, it is very important for rage rooms to continue to improvise if they want to grow their business and generate their target revenues.
8. Our Target Market
Adults below the age of 45 represent the industry’s fastest-growing consumer segment. Aside from this demography of people, the target market for rage rooms cuts across people of different walks of life especially adults and parents of toddlers and teenagers.
The fact that people visit rage rooms to just vent their anger makes marketing the business interesting. Calamity Calmer® Rage Room, LLC will work towards providing services, facilities and environment that will help us reach out to our target market. These are the category of people that we intend marketing our business to;
- Adults
- High school students
- Parents of toddlers and teenagers
- Sports Men and Women
- College Students
- Tourists
Our competitive advantage
The Global Anger Room industry is indeed a green and less competitive industry. Clients will only patronize your rage room if they are comfortable with the term and conditions or if you can provide the enabling environment and facility for them to freely vent their anger.
Calamity Calmer® Rage Room, LLC is centrally located in a densely populated – residential area in Highland Park – Illinois; this is obviously going to give us an edge amongst our competition especially from other related businesses that compete for clients with us.
We equally have a team of highly qualified professionals who will work with our clients and make it easier and comfortable when they patronize our rage room. So also, our facilities are amongst the best that anybody living in Highland Park – Illinois can get.
We will be open 24 hours in a day during weekends (Fridays to Sundays) and from 6:00 am to 12 midnight from Mondays to Thursdays in order for us to accommodate people with different time preference.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Calamity Calmer® Rage Room, LLC is established with the aim of maximizing profits in the Global Anger Room industry and we are going to go ensure that we do all it takes to attract both individuals, groups and corporate clients on a regular basis. Calamity Calmer® Rage Room, LLC will generate income by offering the following services;
- We provide the items for smashing, the tools, and the Bluetooth speakers for clients to rock out to their favorite tunes.
- Offering anger management counselling session
- Sale of protective body suit, mask, Kevlar gloves, and close toed shoes et al.
- Sale of stress and anger management resource materials
- Sale of food and beverages
10. Sales Forecast
We are quite aware that there are several business opportunities available for businesses like rage rooms; it is a line of business that attracts loads of young and matured adults who are looking for avenues to vent out their anger.
We are well positioned to take on the available market in Highland Park – Illinois and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six months of operation and grow the business and our clientele base.
We have been able to critically examine the Global Anger Room industry – market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projection for Calamity Calmer® Rage Room, LLC, it is based on the location of our rage room facility and the wide range of related services that we will be offering;
- First Fiscal Year: $180,000
- Second Fiscal Year: $350,000
- Third Fiscal Year: $450,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. There won’t be any major competitor (rage room) offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Our marketing strategies will be directed towards achieving specific objectives that support the strategic goals of the organization. The truth is that all that we do will be geared towards creating new market channels, increasing sales and our market share.
We will leverage on improving on our services and facility to ensure that we win new clients and retain old clients as well. As part of our sales and marketing strategies, we will pay attention to the promotion of our rage room so as to attract people to our facility.
Our unique selling proposition is that we are well positioned and people can easily access our facility. Part of the marketing and sales strategies that we will adopt are;
- Open our rage room with a big party in other to attract residents who are our first target
- Advertise our rage room on national dailies, local TV station and radio stations
- Promote our rage room online via our official website and all available social media platforms
- Introduce our rage room by sending introductory letters alongside our brochure to sports clubs, schools, corporate organization, households and key stakeholders in Highland Park – Illinois
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
- Deliver consistent customer experience to all our customers; making our first impression count positively to those making use of our rage room for the first time
- Make use of attractive handbills to create awareness and also to give direction to our rage room
- Adopt direct mailing coupon marketing approach
- Position our signage / flexi banners at strategic places in and around Highland Park – Illinois
- Create a loyalty plan that will enable us reward our consistent clients especially those that registered as a family or as a group
11. Publicity and Advertising Strategy
We have been able to work with our branding and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.
We are set to become the number one choice for both corporate and individual clients in the whole of Highland Park – Illinois which is why we have made provisions for effective publicity and advertisement of our rage room. Below are the platforms we intend to leverage on to promote and advertise Calamity Calmer® Rage Room, LLC;
- Place adverts on both print (community – based newspapers and magazines) and electronic media platforms
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
- Install our billboards in strategic locations all around Highland Park – Illinois
- Distribute our fliers and handbills in target areas all around Highland Park – Illinois
- List Calamity Calmer® Rage Room, LLC on local directories / yellow pages
- Advertise our rage rooms in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our corporate logo.
12. Our Pricing Strategy
The cost typically depends on how much time you spend in the room – as little as $10 for five minutes in some places,or $50 for 30 minutes in others. The most expensive package is at The Rage Room in Hackensack, it costs $195 and you get to break as many as 40 items, according to NJ.com. Rates start at $10 for 15 items, and escalate to $75 for 50 targets.
In view of that, our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than what our competitors are charging their clients in Highland Park – Illinois.
Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us or when they register as a family or a group. The prices of our services will be same as what is obtainable in the United States’ rage rooms open market.
- Payment Options
The payment policy adopted by Calamity Calmer® Rage Room, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Calamity Calmer® Rage Room, LLC will make available to her clients;
- Payment with cash
- Payment via online bank transfer
- Payment via mobile money
- Payment via Point of Sales Machines (POS Machines)
- Payment via check
In view of the above, we have chosen banking platforms that will enable our client make payment to access our rage room and purchase of food and beverages without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
Depending on the location, the cost of rent, and the complexity of the rage room design, opening a rage room business can cost above $30,000. A business license and insurance are among opening costs. Interior décor and furnishings are another.
From our market survey and feasibility studies, we have been able to come up with a detailed budget on achieving our aim of establishing a standard rage room in Highland Park – Illinois and here are the key areas where we will spend our startup capital on;
- The Total Fee for Registering the Business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits – $1,500.
- Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of – $1,000.
- The total cost for hiring Business Consultant – $2,000.
- The amount needed for the purchase of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $3,800.
- The total cost for the purchase of accounting software, CRM software and Payroll Software – $850
- The total cost for leasing facility for the rage room – $50,000.
- The total cost for facility remodeling – $15,000.
- Other start-up expenses including stationery – $5,000
- Phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $50,000
- The cost for start-up inventory (protective body suit, mask, Kevlar gloves, and close toed shoes et al) including stationery and accessories – $10,000
- The cost for acquiring LED TVs, computers, comfortable chairs, tables, Air conditions, and accessories amongst others. – $25,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, snooker board, tables and chairs et al) – $10,000.
- The cost of launching a Website – $600
- The cost for our grand opening party – $3,000
- Miscellaneous – $1,000
We would need an estimate of one hundred and fifty thousand dollars ($150,000) to successfully launch a medium but standard and well – equipped rage room in the United States of America.
Generating Funds/Startup Capital for Calamity Calmer® Rage Room, LLC
Calamity Calmer® Rage Room, LLC is a family business that will be owned and managed by Mr. Gregory Williams and his immediate family members. They are the sole financiers of the business which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $50,000 (Personal savings $35,000 and soft loan from family members $15,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business closes shop.
One of our major goals of starting Calamity Calmer® Rage Room, LLC is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over in our rage room is to equip our facility and to make our facility highly secured and accessible.
Calamity Calmer® Rage Room, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of ten years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Acquiring facility and remodeling the facility to fit into a standard rage room: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed furniture, electronic appliances, office appliances and suppliers: In progress
- Creating Official Website for the Company: Completed
- Creating Awareness for the business both online and in the neighborhood: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party/launching party planning: In Progress