# Business Plan: Pro Haunters HELP!



## TheDarkestHour (Dec 5, 2014)

Hey, fellow freako's,

I am putting together a business plan for my Pro Haunt that I'm trying to get funding for, and I am just wondering if anyone can give me some insight.

First, does anyone have/know of a business plan template specifically for Haunts that is just amazing?

What do you guys think is a realistic starting capital amount? How much do I need to really make this awesome, from scratch? I'm thinking $500K is going to be minimum, but, am I totally way over or under? I just don't know exactly what to expect. There's a haunt in our city that spent over $4 Million to get started! Granted, they purchased an old Cement factory, So, I just have no clue!

For all the people who have created a Pro haunt, where did you start as far as funding goes? How much did you start with, and what type of equity/repayment program did you have for your investors? What type of investors did you look for, and how did you seek them out?

Also, how did you find your management team/construction team? Someone that has experience managing a haunt, did you do it yourself, or bring someone in?

Also, location seems to be a huge stumbling block right now too, I don't even really know where to start. Any ideas?

Thanks guys, hopefully some of you can help!


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## Abunai (Oct 28, 2007)

Not a pro haunter yet, so I can't give advice from experience. I can point you at some resources, though:

http://forum.hauntworld.com/ is a discussion forum for professional haunted attraction owners.





 is a book that a lot of haunters swear by. I recently bought a copy, but have not had the time to read it yet. It has a sample business plan inside.

I'd say you could have a fairly kick-ass haunt for $500K. I think you're way over, but, again, I can't speak from experience.


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## RoxyBlue (Oct 6, 2008)

If you've done a good chunk of your homework already in terms of estimating costs for the location where you plan to set up business (construction, props, insurance, salaries, payroll taxes, business taxes, rentals or leases, permits, to name a few), the best person to answer the question of starting capital is you. Another haunter's experience is likely not to match your vision.

Pro haunters that regularly visit this forum are in the minority, but a couple folks here have taken the plunge and I do know that they started from true scratch at the home haunt level. They built what they could afford in the beginning and expanded over time, and pretty much paid out of pocket as they went. It took time, but they were able to grow in both size and reputation, and that makes a difference when starting a new business.


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## elputas69 (Oct 27, 2014)

My advice is to attend the conferences, if possible. You'll get some theoretical knowledge. But most importantly, volunteer for a haunt next year and pay close attention to the whole operation. Give your time in exchange for real knowledge from someone who's already doing it. You'll see the good and the bad and you may even come up with some better ideas or improvements that you can implement when that time comes when you have your own haunt. Make sense?


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## RoxyBlue (Oct 6, 2008)

^Good advice from el and the book Abunai is suggesting appears to be a good place to start as well.

BTW, the Small Business Administration web site is a great source of information for anyone starting up a business. This link will take you to a page about developing a business plan and what needs to be included:

https://www.sba.gov/writing-business-plan


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## NemesisGenesis (Oct 4, 2011)

The first thing the bank is going to ask you is what kind of experience you have in this industry. Essentially they'll want to know you have proven skills to make their money back. If you do not have a significant amount of experience or training in this industry (regardless of an amazing business plan), I would consider partnering with someone who does or consider purchasing a haunt with proven success. 

Also, unless you can get an organization like your local Small Business Association to back your loan you will need to come up with 20% of your capital out of pocket. Financial institutions don't want to be the only ones taking the risk. $500k (even if it is the lowest possible budget) is still a lot of money. If this is your budget I would be prepared to show you have $100k in the bank or some other asset to secure such an amount (like equity in your home).

Also, have you done the math on what that payment will look like monthly? I just did some quick and dirty: $1,000,000 unsecured business loan at an amazing APR of 4% (you'd likely have to getting backing from the SBA for this or have an AMAZING credit history and/or wealth) would cost $3,333 a month in interest alone (wouldn't touch your principle) so be sure to budget $48-$50k in year one just to manage your debt. 

Not trying to be a downer, but I've considered options like this and realized quickly it was WAY to much risk. Start saving your money. You might also approach your bank about a credit line, typically they'll issue to new business for $10k pretty easily. 

Good luck!!


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## Lord Homicide (May 11, 2012)

My two cents... Put together a SWOT analysis just like any other business


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## NemesisGenesis (Oct 4, 2011)

Abunai said:


> Not a pro haunter yet, so I can't give advice from experience. I can point you at some resources, though:
> 
> http://forum.hauntworld.com/ is a discussion forum for professional haunted attraction owners.
> 
> ...


This is AWESOME, I purchased the Amazon digital copy yesterday and haven't been able to put it down. Thanks for the suggestion!

The author also recommends "The Complete Haunted House Book" by Tim Harkleroad. She explains that her book is more business focused and Tim's is more comprehensive in the sense that it covers actual construction of the haunt itself and other topics. "TCHHB" seems to only be available as a hard copy though, maybe I'll ask Santa for it (not that I've been very good this year :jol.


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## Abunai (Oct 28, 2007)

You're welcome NemesisGenesis.
Dang! I need to read my copy.


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## TheDarkestHour (Dec 5, 2014)

Yeah, I've been reading my copy for the past few days, and it's great so far! 

Thanks for all the feedback everyone. I know it seems like I'm just a chump with a dream, and that might be true, to be honest. But, this dream is big, and I am at the beginning stages here, I'm just trying to cover all my bases, and I'm being smart about it. I'm not just jumping in and taking out a $500K loan or anything. I know I might need to start smaller, but I have a hard time not dreaming big right off the bat.

I have basically decided I'm going to try and learn everything I can from the local pro haunt owners in our area, and ones I know personally, just to see realistically what can be done. I will also try to pursue potential partner opportunities by those who have done this before as well. I'm covering all my bases, and moving slowly, there's just A LOT of pieces to the puzzle.


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## RoxyBlue (Oct 6, 2008)

I think that's a wise approach, TDH. It's absolutely fine to have a dream, but the more you can learn from folks who are active in the industry, the better prepared you'll be for reality.

As far as teaming goes, start thinking now about what you can bring to the table in that arrangement. Business people will be looking for something tangible that will add value to the team.


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## Lord Homicide (May 11, 2012)

No such thing as a chump with big dreams... Most chumps don't dream at all. FedEx's business plan was written while the guy was in college if I remember correctly. That should inspire you. A good book to read on business leadership "From Good to Great" by Jim Collins. That should inspire you as well. I still read it about twice a year.

Plan to make $2 for every $1 invested.


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## NemesisGenesis (Oct 4, 2011)

At the end of the day, most folks don't get in to business for themselves because they never take the first step. 

It can't do any harm establishing your business entity, starting a business account with your bank, teaming up with your local Small Business Association, and to start building/planning.

I would only take caution to decisions with lasting impact like a big loan or a lease. 

Good luck with everything!!


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## TheDarkestHour (Dec 5, 2014)

NemesisGenesis said:


> At the end of the day, most folks don't get in to business for themselves because they never take the first step.
> 
> It can't do any harm establishing your business entity, starting a business account with your bank, teaming up with your local Small Business Association, and to start building/planning.
> 
> ...


Yeah, thanks for the encouraging words guys, and some words that just bring me back down from the clouds. I finally had a chance to talk to my potential investor last night, and he is totally open to potentially financially backing a haunt, if I can get an in with some of the local haunts here.

I'm considering approaching the successful haunts in our area with some kind of "Affiliate Partner" type proposal. I know you have all seen haunts that have 2 or 3 or more locations that are all "related", (One website, same marketing, pushing people to each other's haunts, etc...) I would just need to be able to learn everything there is to know about the local market here, and potentially get help with the management of the haunt from existing resources they have. Having a potential financial backer definitely gives me a lot more to bring to the table now; especially to a haunt that is looking to essentially expand their reach. I'll keep everyone posted on my progress!


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## Grimm Pickins (Nov 4, 2013)

I'm certainly following your progress, DarkestHour. You seem sincere, and very enthusiastic. 

This forum is a realm of good folks as well - and they are honest, but not demeaning. The professional Haunt world is a tough market as I understand it - requiring a lot of seed planting and successful cultivation (and if you have skills in sets/props - oh, the money you will save). You sound like you have a good basis in the acting arena, and conceptualization - but branching out your skills might prove very lucrative in your goals. 

Whereas I am embracing my home haunting side for the foreseeable future, I do entertain the idea of 'semi-professional' charity haunting (and, my personal pipedream, is retiring into being a Haunt owner - chefs have a hard time sitting still). 

Don't push it too fast, and don't regret your decisions along the way. Think it through - and exercise patience in working with others should you end up in the 'investor' route. 

The Haunt biz is still a business, with all the troubles and craptastic magic of a regular one. I wish you well in your endeavors - as I'm sure many folks here do.


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