Tumble Town

Where Learning is an Adventure!

BUSINESS PLAN REPORT by Group 61

Prasuk Jain
Siddham Jain
Meghna Agarwal
Riddhima Karkera
Vedant Rathi
Ritisha Gill
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ACKNOWLEDGEMENT

A business plan is the development of a business idea in its raw form to a full proof blueprint.
It is a great opportunity not only to develop entrepreneurship skills, but also to get exposure
through practical application of all the theoretical knowledge gained in our course. For
providing such a beautiful opportunity, we would firstly like to thank our Dean, Mrs. Sangita
Kher.

Making a business plan can be a tedious task with a lot of complications. Such complications
vary from legalities to financials. For the same, we would like to thank our professor and
mentor Mr. Neelesh Kumar

He has been a constant help and have provided us with all the guidance one could ask for at
every stage of the business plan. We would also like to thank our faculty in general, for their
constant support of our plan. The journey right from conception to conclusion was one that
would not have been possible but for his support and guidance

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CONTENTS

I. Executive Summary
i. Who we are
ii. What we sell
iii. Who we sell to
iv. Business Model Canvas
II. Industry Analysis
i. Industry Overview
ii. Pestle Analysis
iii. Five force analysis
III. Company
i. Logo & Name of Company
ii. Company Overview
iii. Vision Statement
iv. Mission Statement
v. Management Team
IV. Product/ Service
i. Our Offerings / Features
ii. RATER Model
iii. VRIO analysis
iv. Website
V. Market Opportunity
i. Market Overview & Research
ii. Gap Model
VI. Competition Survey
i. Competitive Analysis
VII. Strategy & Implementation Tools
i. 5W1H
ii. SWOT
iii. Unique Selling Proposition (USP)
iv. Goals and Strategies
VIII. Marketing Plan
i. Customer decision making process
ii. Marketing Mix (4 Ps / 7 Ps)
iii. Advertising & Promotion
iv. Customer Relationship Management
IX. Financial Plan
X. Legalities
XI. Business Expansion plan
XII. Exit Strategy
XIII. Conclusion

Annexure

i. Excel sheets of financial calculations

ii. LOI (Letter of Intent)
iii. Consent Form

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I. Executive Summary
i. Who we are
Welcome to Tumble Town, where imagination knows no bounds and laughter echoes through
every corner! Tumble Town is poised to revolutionise the concept of play areas, offering a
vibrant and dynamic space designed to ignite the spark of joy and creativity in children of all
ages.

ii. What we sell

At Tumble Town, we believe that every child deserves a place where they can explore, learn,
and simply have fun. Our meticulously crafted play zones are not just about entertainment;
they are immersive environments that stimulate cognitive development, foster social
interaction, and encourage physical activity.

iii. Who we sell to

Gender: Both male and female parents or guardians.
Age: Typically between 25 to 45 years old.
Education Level: Varied, ranging from high school graduates to post-graduates.
Profession: Working professionals in diverse fields such as IT, finance, healthcare, education,
business, and homemakers
Income Level: Middle to upper-middle class with a comfortable disposable income.
Knowledge about Tumble Town: Moderate to high awareness about the concept and
offerings, particularly among parents actively seeking educational and recreational activities
for their children.

iv. Business Model Canvas

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Figure 1.1

1. Customer Segments:
● Families with children aged 3 to 12 years old.
● Parents and guardians seeking a safe, educational, and entertaining environment.
● Schools and educational institutions for field trips and extracurricular activities.
● Local communities looking for a hub for social interaction and events.
● Families interested in hosting birthday parties and special celebrations.
2. Value Propositions:
● Unique indoor 'learn and play' center fostering holistic development.
● Immersive and customized attractions revolving around various themes for
exposure.
● Highest standards of safety, quality, and commitment to enrichment.
● Integration of educational elements in a vibrant and safe environment.
● Community engagement, social impact, and continuous innovation.
3. Channels:
● Social Media Platforms: Utilize platforms like Facebook, Instagram, and Twitter
for marketing and engagement.
● Local Advertising: Advertise in local newspapers, community bulletins, and on
radio stations.
● Partnerships: Collaborate with schools, childcare centers, and local businesses
for joint promotions.
● Online Presence: Maintain a user-friendly website for information, bookings,
and updates.
● Referral Programs: Encourage word-of-mouth marketing through referral
incentives.
4. Customer Relationships:
● Personal Assistance: Provide customer service for inquiries, bookings, and
assistance during visits.
● Community Engagement: Interact with the community through events,
workshops, and outreach programs.

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● Feedback Mechanism: Collect feedback to understand customer satisfaction and

areas for improvement.
● Membership Programs: Develop loyalty programs to enhance relationships with
regular visitors.
5. Revenue Streams:
● Admission Fees: Generate revenue through entry fees for children and
accompanying adults.
● Membership Subscriptions: Offer subscription plans for frequent visitors with
added benefits.
● Event Bookings: Host themed events, workshops, and birthday parties for
additional income.
● Merchandise Sales: Sell branded merchandise, educational materials, and snacks.
6. Key Resources:
● Qualified Staff: Trained in childcare, safety protocols, and customer service.
● Play Equipment: Quality and innovative play equipment to ensure a diverse
range of activities.
● Facilities: Well-maintained indoor spaces in strategic locations.
● Educational Content: Develop and update educational materials and interactive
exhibits.
● Marketing Team: Staff dedicated to promoting the center and engaging with the
community.
7. Key Activities:
● Facility Operations: Day-to-day management of play areas, workshops, and
events.
● Educational Program Development: Create and update educational content and
interactive exhibits.
● Marketing and Promotion: Strategize and execute marketing campaigns and
community engagement.
● Safety and Quality Assurance: Ensure adherence to safety standards and quality in
all aspects.
8. Key Partnerships:
● Schools and Educational Institutions: Collaborate for field trips and educational
programs.
● Global Toy Retailer: Form a strategic partnership for access to a wide range of
toys.
● Local Businesses: Partner for joint promotions, events, and cross-marketing
opportunities.
● Educational Experts: Collaborate to enhance the educational content of the center.
9. Cost Structure:
● Staff Salaries: Allocate budget for qualified staff in childcare, safety, and
customer service.
● Facility Maintenance: Regular upkeep of indoor spaces and play equipment.
● Marketing Expenses: Budget for advertising, promotions, and community
engagement.
● Educational Content Development: Invest in creating and updating learning
materials.
● Partnership Agreements: Costs associated with collaborations and partnerships.

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II. Industry Analysis

i. Industry Overview
The Indian pre-school/childcare market size reached US$ 3.8 Billion in 2022. Looking
forward, IMARC Group expects the market to reach US$ 7.3 Billion by 2028, exhibiting a
growth rate (CAGR) of 11.2% during 2023-2028. The rising number of nuclear families and
working women in the country, the growing demand for preschool and childcare services,
and the increasing disposable income are among the key factors driving the market growth.

Report Attribute Key Statistics

Base Year 2022

Forecast Years 2023-2028

Historical Years 2017-2022

Market Size in 2022 US$ 3.8 Billion

Market Forecast in 2028 US$ 7.3 Billion

Market Growth Rate (2023-2028) 11.2%

Source: Imarc, Figure 2.1

ii. Pestle Analysis

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Figure 2.2

iii. Five Forces Analysis

Figure 2.3

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1- Threat of New Entrants:

●Barrier to Entry: The child care industry may have moderate to high barriers to entry due to
regulatory requirements, licensing, and the need for specialized facilities and trained staff.
Compliance with safety and health standards can be a significant barrier.
● Economies of Scale: Larger child care centers may benefit from economies of scale,
making it more challenging for smaller entrants to compete on cost.

2-Bargaining Power of Buyers (Parents):

●Number of Buyers: The increasing demand for quality child care services can give parents
considerable bargaining power.
●Price Sensitivity: Parents may be sensitive to price, but the perceived quality of care and
reputation of the child care center can also influence their choices.
●Availability of Alternatives: The availability of alternative child care options, such as in-
home care, relatives, or other facilities, may impact buyer power.

3-Bargaining Power of Suppliers (Child Care Workers, Facilities):

●Number of Child Care Workers: The availability of qualified child care workers can
influence supplier power. Shortages of skilled workers can give them more bargaining power.
●Facility Requirements: Suppliers of child care facilities, including real estate developers,
can have some influence, especially in areas where suitable locations are limited.

4-Threat of Substitute Services:

●In-Home Care: Services like in-home care or care provided by relatives can be substitutes,
particularly for parents looking for a more personalized or flexible child care arrangement.
● Educational Programs: Educational programs or preschools that combine learning with
child care can also be substitutes, especially for parents focused on early childhood
education.

5- Intensity of Competitive Rivalry:

●Number of Competitors: The number of child care centers in an area influences competitive
rivalry. Urban areas may have higher competition.
●Service Differentiation: Centers offering additional services such as early education,
extended hours, or specialized programs may have a competitive advantage.
●Regulatory Environment: Compliance with regulations and licensing standards can be a
common ground for competition, as centers strive to meet or exceed these standards.

III. Company
i. Logo and Name of Company
The company is named “Tumble Town” and the logo is as shown below. The name "Tumble
Town" was carefully chosen to reflect the lively and dynamic environment we aim to create
within our indoor 'learn and play' center. The word "Tumble" evokes images of joyful
movement, playfulness, and exploration, aligning perfectly with the active and engaging

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experiences children will encounter at our facility. It suggests the idea of tumbling, rolling,
and having fun, capturing the essence of childhood excitement and energy. The addition of
"Town" conveys a sense of community and belonging, emphasizing that Tumble Town is not
just a place, but a vibrant destination where families come together to learn, play, and make
lasting memories. The name Tumble Town embodies our commitment to providing a
welcoming and enriching space for children to thrive, encouraging curiosity, creativity, and
holistic development in a safe and supportive environment.

Figure 3.1

ii. Company Overview

Creating Unforgettable Experiences: Our foremost objective at Tumble Town is to create an
enchanting environment where children can immerse themselves in play, exploration, and
imagination. We strive to design experiences that leave a lasting impression, fostering fond
memories that children and families will cherish for years to come.
Promoting Active Play and Learning: We aim to encourage physical activity and cognitive
development through our diverse range of play activities. By offering interactive and
engaging experiences, we seek to inspire children to learn through play, honing their motor
skills, creativity, and problem-solving abilities in a fun and supportive setting.
This encapsulates our vision for Tumble Town—a place where joy, learning, and growth
converge to create magical moments that inspire and uplift all who visit.

iii. Vision Statement

“To ignite the spirit of exploration and discovery in every child, shaping future leaders and
innovators through immersive 'learn and play' experiences.”

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iv. Mission Statement

Our mission is to provide a unique and enriching indoor 'learn and play' experience for
children, fostering holistic development while offering parents peace of mind in a safe and
vibrant environment. Guided by our commitment to excellence, we strive to create centers in
major cities, malls, residential areas, and other high-traffic locations, where every child feels
welcomed, supported, and encouraged to explore their potential.

v. Management Team

Figure 3.2

Prasuk Jain (CEO): An innovative and optimistic leader, his out of the box thinking gives a structure
to our company. His leadership skills and his visionary mind will help us move forward to achieve
greater heights. He looks after the overall running of Tumble Town as a whole.
Siddham Jain (CFO): A smart and hardworking person, his knowledge of Finance is a great asset to
the company. His understanding of the Company's working and management of financial resources
will give rise to exponential growth.
Ritisha Gill (COO): A level headed and down to earth person, she is the most capable to handle the
management of the workflow and operations ofTumble Town. She is the backbone of the company,
and her ability to tackle the toughest of situations with a skilled expertise while remaining calm will
always help us manage the Company's operations.
Vedant Rathi (CTO): He has a strong understanding of the technicalities of the process. His tech
savviness and his knack for maintaining the team's cohesive bond and handling the work environment
are a few of the many responsibilities he will have to fulfill.
Meghna Agarwal (CBDO): A smart and calm person, Meghna is the perfect individual to help in
Tumble Town’s expansion, bringing it to new levels. Her convincing skills aid in the development of
the Company, and her ability to handle pressure makes her the most adept person at handling the
business development.

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Riddhima Karkera (CMO): Our creative and responsible member for overseeing the planning,
development and execution of Tumble Town’s marketing and advertising initiatives. She will
play a vital role in a company's growth and have important responsibilities that range from
creative influence to business strategy.

IV. Product/ Service

i. Our Offerings/Features
Our flagship product is our indoor 'learn and play' centre, distinguished by its vibrant
ambiance with a color palette of yellow, orange and green, interactive learning stations, and
meticulously curated activities.
Science and Sensory Exploration:
● Water Play: To investigate ideas like volume and buoyancy, set up stations for
pouring, scooping, and combining water with safe objects.
● Sensory bins: To promote tactile exploration, fill bins with various textures, such as
sand, beans, or playdough.
● Nature walk to discover more about the local flora, fauna, and meteorological
patterns.
● Simple experiments: Basic experiments Carry out age-appropriate experiments, such
as dissolving objects in water or creating volcanoes with vinegar and baking soda.
Social-Emotional Learning:
● Dramatic play: To promote role-playing and social interaction, set up pretend play
spaces such as kitchens, grocery stores, or doctor's offices.
● Emotional identification: Talk about emotions and constructive methods to express
them through role-playing, picture books, and stories.
● Turn-taking and sharing: Provide opportunities for cooperative play and use games
and activities to teach turn-taking.

Imagination and Creativity:

● Crafts and the arts: To promote artistic expression, provide a range of supplies
including paints, crayons, playdough, and construction paper.
● Include dance and music in your everyday activities to inspire singing, instrument
playing, and physical movement.
● Open-ended play: Provide opportunities for unstructured play with minimal adult
intervention to allow children's imaginations to flourish.
● Storytelling prompts: Offer prompts or start a story together, encouraging children to
continue the narrative using their imagination.

Engaging Education for 8-12 Year Olds

This age group presents exciting opportunities to bridge the gap between play and
curriculum-based learning.
STEM (science, technology, engineering, maths):

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● Science Experiments That Are Interactive: Go beyond simple test runs. Create age-
appropriate projects such as simple circuits (physics), exploding volcanoes
(chemistry), and toothpick bridges (engineering).
● Coding & Robotics: Use kid-friendly coding environments like Scratch or Blockly to
introduce fundamental coding concepts. To experiment with automation and problem-
solving, use programmable robots or construct your own basic robotics.
● Arithmetic Games & Challenges: Arrange games that require players to use critical
thinking and problem-solving techniques, such as board games or escape rooms filled
with arithmetic puzzles.
● Financial Literacy as a Life Skill and Personal Development Area Workshops:
Introduce fundamental financial ideas with interactive games or simulations, such as
saving and prudent spending.
● Organize team-building exercises that call for cooperation, communication, and
problem-solving in order to accomplish a shared objective.

ii. Rater Model

Reliability: In Tumble Town, reliableness will be guaranteed by delivering a consistent

quality of educational and entertainment experiences for children. It also includes
maintaining safe, well maintained facilities and complying with scheduled hours of operation
as well as providing reliable customer services which meet or exceed expectations.

Assurance: By demonstrating expertise in child development, security protocols and

customer service, Tumble Town will be able to raise the confidence of customers. Staff will
receive intensive training on how to effectively communicate Tumble Town's offering,
address customers' concerns and provide reassurance for parents about the well being of
children.

Tangibles: In particular, Tumble Town will focus on improving the concrete aspects of its
service, such as facility design, cleanliness and amenities. Children's imagination and
creativity will be stimulated in the indoor play centres, while maintaining a clean and inviting
atmosphere. In addition, Tumble Town will invest in state of the art equipment and
technology to improve customer experiences.

Empathy: Empathy will be a priority for Tumble Town, by understanding and dealing with
the unique needs and preferences of children and their families. The staff members will show
empathy and compassion for customers, taking the time to listen intently, understand what
they have to say in an effective manner. In order to ensure that families feel valued and cared
for, Tumble Town will also offer their own experiences and support.

Responsiveness: Tumble Town will respond promptly to customer needs and enquiries, as
well as provide prompt assistance and support where required. Staff will be trained to deal
with customer enquiries as quickly as possible, resolve problems and adapt to changes in
customers' preferences. In addition, Tumble Town will introduce feedback mechanisms to

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collect customer input and continuously enhance its services on the basis of their needs and
preferences.

iii. VRIO analysis

Figure 4.1

Valuable:
● Engaging Activities and Programs: Tumble Town offers valuable experiences through
its engaging and educational activities designed to promote holistic child
development.
● Safety and Quality Standards: Tumble Town's commitment to high safety and quality
standards provides value to customers, reassuring parents and caregivers about the
well-being of their children.
Rare:
● Specialized Curriculum: Tumble Town has developed a unique and proprietary
curriculum that integrates educational content with play-based activities, tailored
specifically for different age groups and developmental stages
● Unique Offering: Tumble Town's focus on blending education with play in an indoor
setting is relatively rare in the market, distinguishing it from traditional play centers or
educational institutions.
Imitable:
● Brand Reputation and Trust: Competitors may find it challenging to replicate the level
of trust and positive sentiment that Tumble Town establishes among its customer
base.
● Staff Expertise and Training: Tumble Town will invest in continuous professional
development and ensure its staff are well-equipped to deliver exceptional experiences.

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● Unique Facility Design and Layout: Tumble Town's thematic rotations contribute to a
distinctive and immersive experience for visitors. Competitors may struggle to
replicate the same level of creativity and attention to detail in their own
establishments.
Organized:
● Effective Operations: Tumble Town's efficient operations, including scheduling,
staffing, and maintenance of facilities, contribute to its overall success.
● Customer Engagement: The organized approach to customer engagement, such as
through customer service, and feedback management, helps maximize customer
satisfaction and retention.

iv. Website: https://tumbletown.odoo.com/

Figure 4.2

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Figure 4.3

Figure 4.4

V. Market Opportunity

i. Market Overview and Research:

We conducted a survey and collected 50 responses to understand the market preferences.

Figure 5.1

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Figure 5.2

Figure 5.3

Figure 5.4

Gap model

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The Knowledge Gap: In the indoor learning and play center industry, Tumble Town may lack
a comprehensive understanding of children's developmental needs, parents' expectations, and
trends in the market. In order to gain a better understanding of the evolving needs and
preferences of families with young children, we can solve this problem by carrying out
extensive market research, including surveys, focus groups and observation of competitors'
products.This will inform its service offerings, facility design, and customer engagement
strategies.

The Delivery Gap: There may be inconsistencies in the delivery of services, such as long
waiting times, hygiene problems or inadequate staffing during peak hours. By implementing
rigorous operating procedures such as staff training programmes, quality control measures
and appropriate staffing levels, we shall ensure that the service is delivered consistently. In
order to identify areas of improvement and retain service quality standards, regular
performance evaluations as well as customer feedback mechanisms will be used.

The Communication Gap: The actual service experience provided to customers may not be
accurately represented in Tumble Town's marketing messages and external communications.
By aligning its marketing messages with the real service offering and customer experience,
Tumble Town seeks to bridge this communication gap. In order to manage expectations and
build trust with customers, transparency and honesty in all external communications, as well
as the promotion of open communication channels between management, staff and
customers, will be helpful.

The Perception Gap: It is possible for customers to perceive differences in their expectations
from the actual service they receive, resulting in dissatisfaction or indifference. By providing
personal and memorable experiences that delight and surprise the families, we strive to
exceed customer expectations. In order to bridge the perception gap and increase customer
satisfaction and loyalty, it will be necessary to collect feedback from customers on a regular
basis and use their input for improving and enhancing its products and services.

VI. Competition Survey

i. Competitive Analysis:
Several major companies are focusing on expanding their network by opening new centers in
different cities and regions. This expansion allowed them to reach a broader customer base and
cater to the growing demand for their services. Additionally, several companies adopted
franchise models, allowing entrepreneurs to open and operate pre-schools or childcare centers
under their brand. This approach enabled companies to establish a wider footprint without
significant capital investment. Moreover, key players are constantly updating and enhancing
their educational curriculum to provide a more holistic and modern learning experience for
children. Incorporating interactive and technology-based teaching methods helped keep
children engaged and encouraged active participation. Also, companies recognized the
importance of involving parents in their child's learning journey. They implemented regular

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parent-teacher interactions, progress updates, and workshops to keep parents informed and
engaged in their child's development.
The report has provided a comprehensive analysis of the competitive landscape in the market.
Detailed profiles of all major companies have also been provided. Some of the key players in
the market include:
● Kidzee
● Bachpan Global
● EuroKids
● Tree House Education and Accessories Ltd.
● Shemrock Play School
● Kangaroo Kids

Podar Jumbo Kids:

● Overview: Podar Jumbo Kids is a well-known preschool chain in India that
focuses on providing a stimulating and engaging environment for early childhood
education. They emphasize a holistic approach to learning through play and
various activities.
● Locations: Podar Jumbo Kids has multiple centers across India.
EuroKids:
● Overview: EuroKids is one of India's largest chains of preschools and play
schools. It aims to provide a foundation for a child's future by focusing on the
overall development of the child through age-appropriate learning experiences.
● Locations: EuroKids has a widespread presence across India.
Shankar's Academy of Arts and Animation:
● Overview: Shankar's Academy of Arts and Animation offers creative and art-
based learning experiences for children. The academy focuses on enhancing
artistic skills and creativity in a fun and interactive way.
● Locations: Various locations in cities like Chennai.
Toddlers Nursery and Kindergarten:
● Overview: Toddlers Nursery and Kindergarten is a play and learn center that
emphasizes a nurturing environment for young children. It focuses on early
childhood education through play-based learning activities.
● Locations: Multiple centers in cities like Pune.
Shemrock Group of Preschools:
● Overview: Shemrock is a renowned preschool chain in India, providing a
preschool and kindergarten education for young children. The curriculum is
designed to promote all-round development through various activities.
● Locations: Shemrock has a wide presence across India.
I Play I Learn:
● Overview: I Play I Learn is a preschool and day-care chain in India that
incorporates a blend of play and learning activities. The focus is on providing a
conducive environment for early childhood development.
● Locations: Multiple centers in cities like Bangalore, Delhi, and others.

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VII. Strategy & Implementation Tools

i. 5W1H

Figure 7.1

1. Who:
- Target Audience: The primary target audience includes parents with children aged 1 to 12
years old who are seeking a safe, educational, and entertaining environment for their children.
These parents are typically urban dwellers residing in major cities.
- Customer Segments: The business caters to various customer segments within the target
audience, including working parents, stay-at-home parents, and caregivers responsible for
childcare.

2. What:
- Business Concept: The business concept revolves around establishing an indoor 'learn and
play' center that provides a vibrant and safe environment for children to engage in enriching
activities. These activities are designed to ignite imagination, foster holistic development, and
promote learning through play.
- Offerings: The center offers a wide range of educational and recreational opportunities,
including interactive learning stations, creative play areas, thematic workshops, and

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supervised play sessions. The center's offerings are curated to cater to the diverse interests
and developmental needs of children aged 1 to 12 years old.

3. Where:
- Locations: The indoor 'learn and play' centers are strategically located in major cities
within high-traffic areas such as malls, residential neighborhoods, and commercial districts.
These locations are chosen to maximize accessibility and convenience for families, ensuring
ease of transportation and ample parking facilities.
- Accessibility: The centers are easily accessible to families from diverse socio-economic
backgrounds, with proximity to schools, residential areas, and other family-friendly
destinations. This accessibility factor ensures that families can conveniently visit the center
during their leisure time.

4. When:
- Operating Hours: The centers operate during peak times when families are available,
including weekends, school holidays, and after-school hours. The flexible operating hours
accommodate the varying schedules of parents and children, allowing families to visit the
center at their convenience.
- Special Events: The centers host themed events, workshops, and birthday parties during
specific occasions to enhance the overall experience for children and families. These special
events offer unique opportunities for children to engage in immersive learning experiences
and celebrate special milestones in a fun and interactive setting.

5. Why:
- Value Proposition: The indoor 'learn and play' center offers a compelling value
proposition to parents by providing a vibrant and safe environment where children can
engage in enriching activities while parents enjoy peace of mind. The center's emphasis on
holistic development, highest standards of safety and quality, and commitment to providing
both fun and enrichment distinguishes it from traditional play centers.
- Differentiation: The center differentiates itself from competitors by offering a unique
concept that focuses on holistic development through play-based learning. The center's
vibrant and entertainment-filled spaces, coupled with its commitment to safety and quality,
create a distinctive value proposition that resonates with parents seeking a well-rounded
experience for their children.

6. How:
- Business Model: The business generates revenue through various streams, including
admission fees, membership subscriptions, event bookings, merchandise sales, and
partnerships. The diversified revenue streams contribute to the financial sustainability of the
center and support its growth and expansion efforts.
- Marketing Strategy: The center utilizes a multi-channel marketing strategy to promote its
offerings, including social media marketing, local advertising, community engagement, and
partnerships with schools and childcare centers. The targeted marketing approach ensures

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effective reach and engagement with the target audience, driving customer acquisition and
retention.
- Operations: The center's operations are guided by rigorous safety protocols, cleanliness
standards, and customer service excellence. Qualified staff members trained in childcare,
safety procedures, and customer interaction oversee the day-to-day operations of the center,
ensuring a seamless and enjoyable experience for children and families.
- Customer Experience: The center prioritizes the customer experience by maintaining high
standards of cleanliness, safety, and hygiene throughout its facilities. Feedback mechanisms
are implemented to gather insights from customers and continuously improve the center's
services and offerings based on customer preferences and needs.
- Expansion: The center's expansion strategy focuses on scaling the business by opening
additional locations in other major cities based on market demand and the success of existing
centers. Strategic expansion plans are informed by thorough market research and analysis,
ensuring the sustainable growth and profitability of the business.
In summary, the indoor 'learn and play' center is poised to deliver a unique and enriching
experience for children while providing peace of mind to parents. Through its strategic
location, diverse offerings, commitment to safety and quality, and customer-centric approach,
the center aims to become a trusted destination for families seeking both fun and enrichment
in a vibrant and safe environment.

ii. SWOT

Strengths Weaknesses

1. Unique Offering: One-of-a-kind in the market, 1. High Operating Costs: Maintaining a

offering a blend of entertainment and education. vibrant environment may lead to high
expenses.

2. Convenient Locations: Strategically located in 2. Dependence on Foot Traffic: Success relies

major cities, malls, and high-traffic areas. heavily on location and foot traffic.

3. Safe and Secure Environment: Emphasizes top 3. Competition: Faces competition from other
safety and quality standards, fostering trust. play centers, schools, and childcare options.

4. Diverse Offerings: Wide range of activities

caters to varied interests and age groups.

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Opportunities Threats

1. Expansion and Growth: Opportunity to 1. Regulatory Compliance: Strict regulations

expand to new locations and emerging markets. may pose challenges and increase costs.

2. Partnerships and Collaborations: 2. Economic Downturns: Reduced spending

Collaborating with schools and local during downturns can impact revenue.
businesses.

3. Innovative Technology Integration: 3. Changing Consumer Preferences: Shifts

Incorporating AR or interactive learning towards outdoor activities or digital
platforms. entertainment.

Figure 7.2

iii. Unique Selling Proposition (USP)

In order to include our unique selling proposition (USP), we have established a plan. Our
suggestion is to introduce theme-based rotational setups, in which the design and activities in
our indoor "learn and play" center will be changed approximately every three to four months,
or in accordance with seasonal patterns. This strategy makes the most of our available space
while also offering our clients novel and engaging experiences that boost customer
satisfaction and promote return visits. Our facility's layout and activities are changed on a
regular basis with the goal of encouraging children's curiosity, creativity, and learning.
Themes that complement our USP and appeal to our target market will be carefully chosen.
Seasons, holidays, science, wildlife, and popular children's interests are a few examples of
themes.

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Figure 7.3

iv. Goals and Strategies

Segment 1: Parents of Preschoolers (3-6 years old):

● Goal 1: School readiness: Organize early childhood learning programs focusing
on literacy, numeracy and social-emotional competencies.
● Goal 2: Spark Creativity and Imagination: Provide art workshops with a variety of
mediums, e.g. painting, clay or music classes that promote the expression of one's
personality.
● Goal 3: Build confidence: organize "confidence building" workshops that focus on
public speaking, teamwork and overcoming shyness.
Marketing Strategies:
● Develop blogs and infographics highlighting the benefits of Tumble Town's
programmes for school readiness.
● To offer introductory classes or workshops in Tumble Town, partner with local
schools or childcare centres.
● Host "open house" events to show your creative and educational activities for
children.
● Develop content on social media, including photos and videos of children
participating in social play and learning activities.
Segment 2: Parents of School-Aged Children (7-12 years old):
● Goal 1: Provide After-School Enrichment: Offer STEM workshops like robotics
or coding classes, or creative writing programs led by qualified instructors.
● Goal 2: Facilitate social integration and collaboration: organize team building
games, escape rooms or collaborative art projects.
● Goal 3: Cater to Specific Interests: Develop programs based on current trends, like
animation workshops, game design classes, or 3D printing workshops.
Marketing Strategies:

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● Develop targeted email campaigns to highlight after school programs that are in
line with children's interests.
● Support your after school enrichment programs through partnerships with schools
or community centers.
● To introduce these groups to your programs, you may provide a trial class for
some age groups.
Overall Strategies:
● Develop a strong brand identity: Ensure your marketing materials consistently
communicate Tumble Town's focus on learning, play, and a fun environment.
● Use a multichannel marketing approach to ensure that your target audience is
reached efficiently through an effective combination of internet and offline
strategies.
● Develop cross promotion relationships with local businesses and organisations:
cooperate with other companies like schools, childcare centres or mommy blogs
for promoting.
● Track and measure results: Monitor the effectiveness of your marketing
campaigns and adjust your strategies as needed.

VIII. Marketing Plan

i. Consumer Decision Making Process

Figure 8.1

1. Need Recognition:
The decision-making process begins when parents or caregivers recognize a need for a
recreational and educational activity for their children. This need could arise from a desire to
provide children with engaging experiences that promote learning, social interaction, and
physical activity.

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2. Information Search:
Once the need is identified, families may gather information about indoor play centers like
Tumble Town. This could involve researching online, reading reviews and testimonials,
seeking recommendations from other parents, or visiting Tumble Town's website and social
media pages to learn about the available activities, facilities, and pricing.
3. Evaluation of Alternatives:
During this stage, families compare Tumble Town with other options available in the market,
such as competing indoor play centers, educational programs, or outdoor activities. They
assess factors like location, safety measures, variety of activities, cleanliness, pricing, and
overall value proposition to determine which option best meets their needs and preferences.
4. Purchase Decision:
Based on the information gathered and the evaluation of alternatives, families make a
purchase decision to visit Tumble Town. Factors influencing this decision include the
perceived benefits of Tumble Town's offerings, affordability, convenience of location, and
alignment with their values and expectations for their children's enrichment.
5. Post-Purchase Evaluation:
After visiting Tumble Town, families assess their experience based on their expectations and
the actual outcome. Positive experiences, such as enjoyable activities, friendly staff, and a
safe environment, reinforce their decision and may lead to repeat visits and positive word-of-
mouth recommendations. Negative experiences, such as issues with cleanliness or customer
service, could result in dissatisfaction and impact future decisions.

ii. Marketing Mix (4 Ps / 7 Ps)

Pricing:
We are choosing to go ahead with Value Based Pricing. This strategy involves setting prices
based on the perceived value of Tumble Town's services to customers. By focusing on the
benefits and outcomes that families derive from our offerings, we can justify premium pricing
while ensuring customers feel they are receiving excellent value for their money.

People:
Employees: Tumble Town's workforce is essential to providing consumers with outstanding
service experiences.
Ensuring a great and memorable customer experience requires hiring and training the proper
people, from front-line workers who deal directly with children and parents to management
professionals who supervise operations.
Tumble Town will give top priority to hiring people who are amiable, vivacious, and
enthusiastic about dealing with kids. They will also offer extensive training courses to
improve employees' abilities in customer service, child development, safety procedures, and
communication.

Customer Interaction: Tumble Town employees will receive training on how to interact
politely, hospitably, and helpfully with customers. Their goal is to establish a welcoming
environment that makes both parents and kids feel at ease and appreciated. Tumble Town's

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staff will be essential in determining the general customer experience and building enduring
relationships with clients, whether they are helping families with questions, escorting kids
through activities, or handling problems.

Procedures:
Service Delivery: To guarantee seamless service delivery and operational excellence, Tumble
Town will put in place effective and efficient procedures. This entails setting up precise
protocols for customer service, facility upkeep, activity scheduling, and admittance. Tumble
Town seeks to maximize resource efficiency and improve customer satisfaction by
optimizing procedures and reducing wait times.

Safety and Quality Assurance: Tumble Town will prioritize safety and quality assurance
processes to provide a secure and enjoyable environment for children and families. This
includes regular inspections, maintenance checks, and adherence to safety regulations and
industry standards. Additionally, Tumble Town will implement quality control measures to
monitor service delivery and address any issues or concerns promptly.

Physical Evidence:
The physical surroundings of Tumble Town will be created to pique kids' curiosity, awaken
their senses, and support learning via play. Tumble Town provides a variety of tangible
components that enhance the general consumer experience and bolster its distinct value
proposition. These include sensory bins containing a variety of textures, such playdough and
sand, and water play stations that promote tactile exploration and the learning of concepts
like buoyancy and volume. The site also includes areas for nature walks, which offer chances
to explore and learn about various flora, animals, and fundamental weather patterns. Simple
experiments with vinegar and baking soda encourage scientific investigation and curiosity
even more. Prop-filled dramatic play spaces promote children's socialization and imaginative
role-playing. Social-emotional development is facilitated by conversations about feelings and
sharing, while cooperative games and activities foster teamwork and communication abilities.
The physical manifestation of Tumble Town consists of the layout, order, and operation of
these components within its building, all of which are essential in determining the general
customer experience and supporting the company's commitment to providing families with
enjoyable and comprehensive learning experiences. To create a unified and unforgettable
brand experience, we will also make use of décor, signage, and branding elements. To
strengthen brand identity and values, this involves using the Tumble Town logo, color
scheme, and messaging throughout the building. Furthermore, care will be taken to create a
warm and inviting atmosphere with lighting, music, and décor that will make kids and
families feel happy, excited, and at ease.

iii. Advertising & Promotion

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Figure 8.2

1. Advertising

- Online Advertising: Utilizing targeted digital ads on platforms like Facebook, Instagram,
and Google Ads to reach parents and caregivers.

- Outdoor Advertising: We will be placing eye-catching billboards and posters in high-traffic

areas around malls, residential neighborhoods, to increase brand visibility and attract
attention from families.

2. Personal Selling

- Our major focus will be on training knowledgeable staff members to act as brand
ambassadors and engage with potential customers during outreach events, school
partnerships, and community gatherings.

- Offering personalized tours of Tumble Town centers to prospective customers, allowing

them to experience the facilities firsthand and ask any questions they may have.

3. Sales Promotion

- Launch a "First Visit Free" promotion to encourage trial and introduce new customers to
Tumble Town's offerings.

- Implement a referral program where existing customers receive discounts or rewards for
referring new families to Tumble Town, incentivizing repeat business and word-of-mouth
marketing.

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4. Public Relations (PR)

- Host a grand opening event for each Tumble Town center, inviting local media outlets,
influencers, and community leaders to generate buzz and coverage in newspapers, blogs, and
social media.

- Partner with parenting bloggers, influencers, and local celebrities to share their experiences
at Tumble Town and reach a wider audience of potential customers through sponsored
content and social media posts.

iv. Customer Relationship Management

Lead Follow-Up:
Leads are swiftly followed up with by email, phone calls, and customized follow-up
messages, among other means. Every lead is given a prompt, personalized response by a
committed sales or customer support team, who also handles their questions, offers more
details, and helps them with the booking process.CRM (Customer Relationship Management)
software and email sequences are examples of automated follow-up systems that are used to
keep in touch with leads and guide them through the sales funnel.

Acquisition of New Business:

A variety of marketing strategies are used to bring in new business, such as social media
promotion, digital advertising, and search engine optimization (SEO) to draw in online
prospects In order to contact families in the target market and promote Tumble Town's
services through referrals and cooperative marketing campaigns, partnerships are formed
with local companies, childcare providers, and schools. Engaging in neighbourhood events,
parenting expos, and family-friendly get-togethers presents a chance to interact directly with
prospective clients, exhibit Tumble Town's products, and spark interest in the brand.

Generation of Repeat Business:

Sending out email newsletters, exclusive offers, and invites to events on a regular basis to
current clients puts Tumble Town at the forefront of their minds and promotes return
business. Hosting special events, themed parties, and seasonal promotions creates excitement
and incentivizes repeat business among families looking for fun and memorable experiences
for their children. Implementing referral programs that reward existing customers for
referring new families to Tumble Town fosters a sense of community and encourages word-
of-mouth recommendations, driving repeat business and expanding the customer base
organically Repeat business is encouraged through exceptional customer service,
personalized experiences, and loyalty programs designed to reward returning customers.

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IX. Financial Plan

i. Project Cost

Both the businesses are capital intensive as it requires high investment for construction of set
ups as well as the required assets for the business. We estimate capital expenditure of over
Rs. 1 crore and other expenditure to be around Rs 50 lakhs. An extra amount of investment is
desired for contingencies or unexpected cost hikes in the near future as part of inflation. The
initial investment comes from the promoters contributing equal amount and long-term debt
from friends and relatives who serve as angel investors to suffice for the initial marketing
expenses and other short-term expenditure such as promotions and sales.

ii. Fund raising

The initial investment comes from the promoters contributing equal amount and long-term
debt from friends and relatives who serve as angel investors to suffice for the initial
marketing expenses and other short-term expenditure such as promotions and sales.

iii. Shareholding Pattern

Each of the four partners invest an equal amount of Rs 21,14,391 for a 16.67% stake of the
business. The total invested amount in the business is Rs. 1,76,86,349 with Rs. 50,00,000
coming in from debt.

iv. Revenue Model

The average cost of day care per month in India can vary significantly depending on factors
such as the location, facilities provided, quality of care, and the age of the child. In urban
areas, day care costs can range from approximately 500 to 900 per hour in tier 1 cities
according to existing research and studies. Tumble Town being situated in Mumbai is a tier 1
city category and hence we have priced the per hour basis on that scale keeping in mind
competitive pricing in line with our competitors. We have further priced the 2, 3 and 4 hour
packages with a specialised scheme to attract parents for a longer duration. The offer still
serves as profitable as the marginal cost per hour is negligible per child. The cost per hour is
set to increase per year due to inflation which we have accounted for at 5%.

Being a hybrid model of a day care and café several packages will be offered. Individual
packages will be flexible in pricing and duration for the day care. Additional revenue comes
in from birthday parties held at the facility throughout the year.

Revenue from Day Care:

There are four timing options under the daycare facility.

- 1 hour package priced at Rs.599

- 2 hours package priced at Rs.1099

- 3 hours package priced at Rs.1599

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- 4 hours package priced at Rs.1999

According to “Market Research News Publication” surveys predict that the Day Care Market
size is expected to be worth around USD 25.9 Bn by 2032 from USD 14.0 Bn in 2022,
growing at a CAGR of 6.5% during the forecast period from 2023 to 2032.

The Day Care Market plays a pivotal role in the lives of families and working parents,
providing essential childcare services for infants and young children. It encompasses a range
of facilities, including daycare centers, preschools, and in-home care providers. The market's
growth is driven by factors such as increasing workforce participation, changing family
dynamics, and the recognition of early childhood education's importance.

Driving Factors of Day Care Market:

● Rising Workforce Participation: Growing employment rates among parents

necessitate reliable childcare options.
● Changing Family Structures: Evolving family dynamics with single-parent
households and dual-income families increase the demand for daycare services.
● Early Childhood Education: The recognition of the importance of early childhood
education encourages parents to enrol children in quality daycare programs.
● Government Support: Subsidies, tax benefits, and regulations promote the
accessibility and quality of daycare services.
● Educational Focus: Day care centres offering educational programs align with parents'
desires for well-rounded child development.
● Convenience: Busy lifestyles and long work hours’ drive the need for flexible and
convenient day care options.
● Quality of Care: Parents prioritize the safety, health, and emotional well-being of their
children, boosting the demand for reputable day care providers.
● Urbanisation: Concentrated urban populations lead to higher demand for day care
services in metropolitan areas.

Revenue from birthdays:

The average cost for each birthday comes upto Rs.30,000 with a maximum capacity of 50
adults and 25 children. The cost includes a period of 4 hours of rented space along with
access to a custom buffet of meals served which include lunch/dinner facilities along with
snacks served directly from the café. Basic decorations of balloons and hangers are included
in the cost. Any specialised requests can be done at an additional charge. Birthday serves to
be a good source of revenue as there are not many infant friendly birthday spaces available.

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The number of birthdays are taken from an estimate of customers per year. The increment per
year is due to the expected increase in the number of customers per year.

Number of Customers Per Year:

Forecasting the number of customers per year is vital for our business since per day
calculations differ with respect to weekdays and weekends. Taking a balanced approach of

Figure 9.1

pessimism and the life cycle of a business, the number of customers grow in an increasing
magnitude for the forecasted years which would be expected to move to a more stable growth
rate in the future after the forecasted period. The ratio of customers for weekends and
weekdays stands at approximately 1:2. This is as a result of parents being more available on
the weekends as compared to the weekdays.

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Figure 9.2

Figure 9.3

Revenue Model for Food and Beverages:

Our business model includes in house food and beverage services. A small kitchen with
minimal staff will be in operation to cook dishes such as pizza, pasta, burgers etc which
would appeal to the parents and increase their potential duration of stay at our facilities.

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Average order value per customer would be ₹207 against the making cost of ₹80-90 per dish.
This increases our revenue as well as the chances of a repeat visit as well as organic
marketing by way of good word of mouth increases.

In the future potential collaborations with food brands is also a medium we would consider
however for the first 6 years, these services will be in house.

Birthday Parties and Events: Rent out the play area for birthday parties, playdates, or other
special events. Offer packages that include playtime, food and beverages, decorations, and
optional add-ons like entertainment or party favours.

Cafe Sales: Offer a selection of food and beverages for parents and caregivers to purchase
while their children play. This could include coffee, tea, snacks, sandwiches, salads, and kid-
friendly meals. Consider offering healthy options and catering to dietary restrictions or
preferences.

Assumption – 50% of the parents and customers that visit the café

Figure 9.4

v. Salary

Salary is an essential component of the employee value proposition for startups. It not only
helps attract and retain top talent but also contributes to employee satisfaction, motivation,
and overall organisational success. While it is important for us as a startup to limit our costs
and cover the majority of the work amongst the founders, we expect to hire certain people for
specific roles at our establishments.

Tumbletown requires personnel to handle set up, cleaning and safety checks. Operating a
daycare play area for kids requires a team of personnel to ensure the safety, supervision, and

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well-being of the children. The specific roles and their numbers may vary depending on the
size of the daycare, the age range of the children, and any regulations or standards imposed
by local authorities.

A chef and utilities personnel are needed at the beginning. Salaries have been allotted to each
role as per real life scenarios with a 10% hike every year to build up a strong and loyal team
for the future.

Hiring is expected to increase over the years while our revenue, traffic of customers and
workload increases therefore hiring in new roles such as accountants, receptionists, general
managers will take place down the line which In the beginning would be taken care of by the
founders.

vi. Profit & Loss

Overall the business is set to start of slow making an approximate estimated loss of 50 lakhs
in the first year of operations. This is because of initial set up expenditure along with lower
brand awareness amongst consumers. This trend is set to continue in FY 2025 too but with a
lower loss amount of 11 lakhs due to increased revenue that should occur due to investment
in marketing and word of mouth. From FY 2026 onwards we expect a profit building income
due to even greater consumer base and increase in revenue. This is further supported by
decrease in set up, training and hiring costs as we estimate smooth running of operations from
our third year of operations.

vii. Income Statement

Figure 9.5

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The above bar chart shows the forecasted profit after taxes for our business. Initially in year 1
and 2 there is loss due to start-up costs and initial investments, from the third year onwards
there is accelerated growth in the profits with significant jumps seen in each subsequent year.

This will be because our variable cost will lower down our overall cos and an increase in
customers, lesser cost and growth will all add up as per our estimates.

The major expenses for the business are rent for premises, salaries and marketing expenses.
The rented premises has an area of 3000-3500 square ft and it is inflated at the expected real
estate inflation rate.

The marketing expenses mainly accounts for- advertisements and paying brand ambassadors
which would be important to reach more target customers as a good word of mouth is
created.

viii. Balance Sheet

Figure 9.6.

Growth and Debt:

● The company's total assets and liabilities have grown significantly from 2024 to 2028.
This could indicate expansion, increased investment in property or equipment, or
taking on more debt to finance operations.
● The decrease in non-current assets (property, plant, equipment) might suggest the
company is selling off assets or depreciating them heavily. Conversely, the substantial
increase in current assets (cash and equivalents) could be a sign of improved sales.

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While the total liabilities are increasing, the decrease in non-current liabilities (long-
term debt) suggests the company may be paying down some long-term loans.

Assets:

There has been a significant increase in total assets from 2024 to 2028. This could be due to
several factors:

Increased Investment: The company might have invested in property, plant, and equipment
(non-current assets) for expansion or upgrades.

Improved Cash Flow: An increase in cash and equivalents (current assets) might suggest
better cash flow management or higher profits.

ix. Cash Flow Statement

In the first year our cash flow from operations is negative due to EBITDA being negative.
Further our cash flow from investing is negative plus one crore cause of the added initial
investment required by the project. Total net cash flow is positive for the initial year.
The major part of the cash flow in the first year comes from the investment of the promoters
and the long term debt taken from friends and relatives. From second year onwards expenses
from investing activity has been reduced considerably and there is an increase in net cash
flow. Cash received from financing activity is negative due to repayment of debt taken from
friends and family.
The trend is being followed and their is a healthy increase of cashflow from 2nd year
onwards due to increase in profits each year.

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x. Break Even Analysis

While the company turns profitable right from the third year, it’s important to know the per
year break even points as well the overall payback period with respect to the original capital
invested.

Figure 9.7

xi. Ratios

Liquidity Ratios:

Current Ratio and Quick Ratio: The current ratio is consistently high, starting at 3.92 in 2024
and reaching 25.86 by 2028. Similarly to the current ratio, the quick ratio is strong throughout
the period, beginning at 3.92 in 2024 and reaching 25.86 by 2030. This means it has enough
current assets to cover its current liabilities. This is because it is a revenue generating
business without the need of much working capital.

Cash Ratio: The cash ratio is increasing steadily from 2.89 in 2024 to 24.80 by 2028. A cash
ratio greater than 1 indicates the company has sufficient very liquid assets, specifically cash
and cash equivalents, to cover its current liabilities. In this case, the company has much more
than enough cash to cover its short-term debts.

Working Capital Ratio: The working capital ratio is also increasing steadily from 0.33 in
2024 to 9.89 by 2028. A working capital ratio greater than 1 indicates the company has
enough current assets to cover its current liabilities. An increasing ratio like this suggests the

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company is increasingly better positioned to meet its short-term debt obligations using its
current assets.

Solvency Ratios:

Debt to Equity Ratio: This ratio measures the relationship between a company's total
liabilities (debt) and its shareholders' equity. It is consistently decreasing throughout the
period. A lower debt to equity ratio indicates a less risky financial structure, because the
company relies less on debt financing.

Debt-Total Fund Ratio: It shows the proportion of a company's total capital financed by debt.
This ratio is also low and trending downward, which is another sign of low reliance on debt
and a strong solvency position.

Debt-to-Assets Ratio: This ratio shows what proportion of the company's total assets are
financed by debt. A lower ratio indicates a less risky financial structure, as the company
relies more on equity financing than debt financing. The debt-to-assets ratio is consistently
decreasing which is a very positive sign.

Proprietary Ratios:

This ratio, also known as the equity ratio, shows what proportion of the company's assets are
financed by shareholders' equity. A higher ratio indicates a stronger financial position, as the
company is relying less on debt financing. The proprietary ratio is consistently high, above
0.7 throughout the period. This is another positive sign, reinforcing the finding that the
company is mainly financed by equity and reinforces a strong sense of trust and vision held
by the shareholders.

Activity Ratios:

Total Assets Turnover Ratio: This ratio measures how efficiently the company generates
sales from its total assets. A higher ratio indicates that the company is generating more sales
per rupee invested in assets, which is generally considered positive. The total assets turnover
ratio is increasing from 1.63 in 2024 to 2.34 in 2027. This means that the company is
becoming more efficient at generating sales from its assets over time.

Fixed Assets Turnover Ratio: This ratio measures how efficiently a company generates sales
from its fixed assets. A higher ratio indicates that the company is generating more sales per
rupee invested in fixed assets, which can be a sign of good asset management. The fixed
assets turnover ratio is increasing from 2.34 in 2025 to 20.72 in 2027. This means the
company is getting better at generating sales from its fixed assets over time.

Working Capital Turnover Ratio: This ratio measures how effectively a company uses its
working capital to generate sales. We are holding more working capital on a year on year
basis. This increment is higher than the expected increment in sales as a result the working
capital ratio is decreasing but the net working capital amount is increasing.

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Capital Employed Turnover Ratio: This ratio is similar to the total assets-turnover ratio, but it
focuses on the capital employed by the business. Capital employed is the funds used to
finance the company's operations, typically calculated by subtracting current liabilities from
total assets. A higher ratio indicates that the company is generating more sales per rupee of

capital employed. The capital employed turnover ratio is increasing from 1.63 in 2024 to 2.34
in 2027 and has a slight decline in 2028 to 1.87. While a decrease might seem negative on the
surface, it is majorly due to debt repaid.

Profitability Ratios:

Gross Profit Margin: This ratio indicates the percentage of revenue remaining after
accounting for the cost of goods sold (COGS). The gross profit margin is consistently above
90% throughout the period, and is showing a consistent increase throughout the years. This is
a positive sign, indicating that the business is efficient at controlling its COGS relative to
sales.

Net Profit Margin: This ratio shows the percentage of revenue remaining after accounting for
all expenses, operating and non-operating. Although negative in the first year the net profit
margin increases significantly from -23.54% in 2024 to 22.50% by 2028. This is a very
positive trend, indicating that the business is becoming increasingly profitable over time.

Return on Assets (ROA): This ratio measures how much profit the company generates per
rupee of total assets. A higher ROA indicates better utilization of assets to generate profits.
The ROA becomes positive and increases significantly over the years, reaching 41.30% by
2028. This is a strong positive trend, indicating the company is efficiently using its assets to
generate profits.

Return on Capital Employed (ROCE): This ratio is similar to ROA but focuses on the capital
employed by the business. A higher ROCE indicates better utilization of capital to generate
profits. The ROCE follows a similar trend to ROA, starting negative in 2024 (-33.79%) and
increasing significantly to 55.61% in 2028. This is another positive sign, indicating efficient
use of capital.

Return on Net Worth (RONW): This ratio measures how much profit the company generates
per rupee of shareholders' equity. A higher RONW indicates a better return on investment for
shareholders. The RONW follows a similar trend to ROA and ROCE, being negative in 2025
(-63.54%) and increasing significantly to 42.8% by 2028. This is a strong sign for investors,
indicating the company is generating good returns on their investment.

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X. Legalities

Laws and Regulation

i) Partnership Legal Framework

1. Legal Framework: All partnership firms in India are formed under the Indian
Partnership Act, 1932.

2. Essential Elements of a Partnership Firm:

○ Contract for Partnership: The foundation of any partnership.
○ Membership: Limited to 20 people.
○ Pursuit of Business: Must be for a business objective.
○ Sharing of Profits: Profits must be shared among partners.
○ Mutual Agency: Each partner acts as an agent for the other partners.

3. Partnership Deed:

A crucial document in the formation of a partnership firm, detailing the capital

contribution, profit sharing ratio, details of partners, nature of business, working of
the firm, and terms of dissolution or liquidation.

Registration Process:
Partnership Deed: a partnership deed that outlines the terms and conditions of the
partnership, including details about partners, profit sharing ratio, capital contribution,
rights, and responsibilities of partners, etc. The partnership deed must be printed on a
non-judicial stamp paper of prescribed value, signed by all partners, and notarized.
After this, the partnership deed needs to be registered with the Registrar of Firms in
the area where the business is located.

4. Registrar of Firms Contact Details: The office responsible for partnership firm
registration in Maharashtra is located in Mumbai.

The provisions and sections form the backbone of the Indian Partnership Act, 1932, providing a legal
framework for the establishment, operation, and dissolution of partnerships in India.

1. Definition of Partnership (Section 4): Partnership is defined as the relation between persons
who have agreed to share profits of a business carried on by all or any of them acting for all.

2. Essential Elements of Partnership (Section 5): To constitute a partnership, there must be:
● An agreement between the partners.

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● The purpose of carrying on a business.

● Sharing of Profits
3. Mutual Rights and Liabilities of Partners (Sections 9-21):
● Every partner is an agent of the firm and other partners for the purpose of the
business.
● Partners have mutual rights and duties concerning the conduct of the partnership
business.
● Liability of partners can be unlimited or limited, as specified in the partnership deed.
4. Property of the Firm (Sections 14-16):
● All property originally brought into the partnership or acquired for the purposes of the
partnership is considered as the property of the firm.
● Partners cannot use the partnership property for personal use.
5. Relation of Partners to Third Parties (Sections 19-27):
● The acts of every partner bind the firm, provided they are done in the ordinary course
of business.
● A partner's liability is joint and several with other partners.
6. Rights of Partners (Sections 28-42):
● Partners are entitled to share equally in the profits and losses of the firm.
● Every partner has a right to take part in the conduct of the business.
7. Dissolution of Partnership (Sections 39-44):
● Partnership can be dissolved with the consent of all partners or in accordance with the
partnership agreement.
● Certain events like death, insolvency, or illegality can lead to dissolution.
8. Registration of Partnership (Section 58):
● Registration of the partnership is optional but recommended.
● Registration provides legal benefits and is necessary for filing suits against third
parties.

ii) Occupational Safety, Health, and Working Conditions Code, 2020 (OSH Code):
● The OSH Code is a comprehensive legislation aimed at ensuring the safety, health,
and working conditions of employees across various sectors. It applies to
establishments with ten or more employees and encompasses provisions for creating a
safe and healthy work environment.
● Compliance involves conducting regular risk assessments to identify workplace
hazards, implementing measures to prevent accidents and occupational diseases, and
providing necessary safety training and equipment to employees.
● The code mandates the provision of welfare facilities such as restrooms, canteens, and
first aid kits at the workplace to ensure the well-being of employees.
● Employers are required to comply with specific regulations regarding working hours,
overtime, leave entitlements, and conditions of employment to safeguard the rights of
workers.
● Enforcement mechanisms include the appointment of inspectors empowered to
conduct inspections, inquire into complaints, and impose penalties for violations of
the code.

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iii) National Building Code of India (Fire and Safety):

● The National Building Code (NBC) sets out comprehensive guidelines for ensuring
fire safety in buildings, including commercial establishments, residential complexes,
and public spaces.
● Compliance with the NBC involves adhering to specific requirements for fire
prevention, detection, and evacuation. This includes provisions for fire exits,
emergency lighting, fire extinguishers, and smoke detection systems.
● The code outlines standards for the construction and maintenance of buildings to
minimize fire risks and facilitate safe evacuation in case of emergencies.
● Regular inspections and audits are essential to ensure ongoing compliance with fire
safety regulations, with non-compliance potentially resulting in severe penalties.
● Local fire departments play a crucial role in enforcing the NBC, conducting
inspections, and issuing fire safety certificates to compliant establishments.

iv) Protection of Children from Sexual Offences Act (POCSO Act):

● The POCSO Act is a dedicated legislation aimed at protecting children from sexual
offenses and providing a robust legal framework for addressing such crimes.
● Compliance involves creating a safe and secure environment for children within the
premises, including thorough background checks for staff involved in child care or
supervision.
● Establishments catering to children must have stringent policies and procedures in
place to prevent sexual offenses, including guidelines for maintaining proper
supervision and surveillance.
● The act mandates reporting mechanisms for suspected cases of abuse and requires
cooperation with law enforcement authorities for the investigation and prosecution of
offenders.
● Non-compliance with the POCSO Act can lead to severe legal consequences,
including fines and imprisonment, highlighting the importance of strict adherence to
child protection laws.

v)Food Safety and Standards Act (FSSAI), 2006:

● The FSSAI is aimed at ensuring the safety and quality of food products to protect
public health. Compliance with this act is essential for establishments serving food
and beverages, including indoor play centers.
● Requirements under the FSSAI include obtaining necessary licenses and permits for
food handling, storage, and preparation, as well as adhering to hygiene standards and
food safety practices.
● Indoor play centers must implement measures to prevent contamination, maintain
cleanliness in food preparation areas, and ensure proper storage and handling of food
products.
● Regular inspections and audits by food safety authorities are conducted to ensure
compliance with FSSAI regulations, with non-compliance resulting in penalties and
legal consequences.

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XI. Business Expansion plan

As part of our growth strategy, we prioritise market penetration in Tier 1 cities in India,
followed by expansion into other cities. Our objective is to increase our market share within
existing markets by targeting new demographics, enhancing brand awareness, and
maximizing sales of our existing services.

1. Target Market Analysis:

- Conduct in-depth market research to identify target demographics and segments within
Tier 1 cities in India.
- Analyze demographic data, such as population density, income levels, family structures,
and childcare needs, to pinpoint areas with high demand for daycare services.

2. Marketing and Branding Initiatives:

- Develop targeted marketing campaigns to raise awareness of Tumble Town's services and
benefits among parents and caregivers.
- Utilise various channels, including digital marketing, social media, local advertising, and
community outreach programs, to reach our target audience effectively.
- Highlight the unique features and value proposition of Tumble Town, such as experienced
staff, stimulating learning environments, safety protocols, and flexible scheduling options.

3. Promotional Offers and Incentives:

- Offer promotional discounts, referral programs, and incentives to encourage new
enrollments and retain existing customers.
- Provide value-added services or special events, such as parent workshops, themed parties,
or holiday programs, to enhance the overall customer experience and loyalty.

4. Partnerships and Collaborations:

- Establish partnerships with local businesses, schools, paediatricians, and community
organisations to increase visibility and referrals.
- Collaborate with corporate clients to offer employee childcare benefits and corporate
daycare solutions, tapping into a new source of revenue and clientele.

5. Enhanced Customer Service and Feedback:

- Focus on delivering exceptional customer service and building strong relationships with
parents and children.
- Solicit feedback from customers through surveys, reviews, and parent advisory boards to
identify areas for improvement and address concerns proactively.

Franchising Opportunities:

While our primary focus is on market penetration in Tier 1 cities, we recognize the potential
for franchising as a long-term expansion strategy. Franchising offers an opportunity to scale

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our business rapidly and extend our brand presence into new markets. Here are some
considerations for franchising:

1. Franchise Development Plan:

- Develop a comprehensive franchise development plan outlining the criteria for potential
franchisees, territory selection, training programs, operational guidelines, and ongoing
support.

2. Franchisee Recruitment and Training:

- Identify qualified franchise candidates who share our vision, values, and commitment to
providing high-quality childcare services.
- Provide comprehensive training and support programs to ensure franchisees are equipped
with the knowledge, skills, and resources to operate a successful Tumble Town daycare
centre.

3. Brand Standards and Quality Control:

- Establish strict brand standards, operating procedures, and quality control measures to
maintain consistency and uphold the Tumble Town brand reputation across all franchise
locations.
- Conduct regular inspections, audits, and performance reviews to monitor compliance and
address any issues promptly.

4. Legal and Financial Considerations:

- Seek legal counsel to develop franchise agreements, disclosure documents, and other
necessary legal documentation to protect the interests of both franchisor and franchisee.
- Determine the financial requirements, fees, and royalty structures for franchisees,
ensuring a fair and mutually beneficial partnership.

By implementing a targeted market penetration strategy in Tier 1 cities in India and laying
the groundwork for future franchising opportunities, Tumble Town aims to expand its
footprint and establish itself as a leading provider of learn and play daycare services. Through
a combination of strategic marketing initiatives, enhanced customer service, and potential
franchising partnerships, we are confident in our ability to achieve sustainable growth and
success in the childcare industry.

XII. Exit Strategy

Our future exit strategy is centered around an initial public offering (IPO) for TumbleTown.
The strategy aims to provide shareholders with liquidity, unlock value, and position the
company for continued growth and success in the public markets. TumbleTown aims to
become a leading destination for family entertainment, offering a diverse range of play
experiences, educational activities, and events. By fostering a culture of creativity, fun, and

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inclusivity, the company seeks to create memorable experiences for children and families
while driving sustainable growth and shareholder value.

Exit Strategy Rationale:

An IPO represents a strategic exit strategy for the stakeholders at TumbleTown, with the
following benefits:

Liquidity for Shareholders: An IPO will provide shareholders with the opportunity to realize
returns on their investments and monetize their equity stakes.

Access to Capital: Proceeds from the IPO can be utilized for fund expansion initiatives,
enhance infrastructure, and invest in marketing and branding efforts to drive growth and
market penetration.

Brand Recognition: A public listing may enhance TumbleTown's brand visibility, credibility,
and market recognition, positioning the company for increased customer acquisition and
market share expansion.

XIII. Implementation Plan:

To execute the IPO exit strategy effectively, the following key actions may have to be
undertaken:

Engage Advisors: Retain legal counsel, investment bankers, auditors, and regulatory advisors
to facilitate the IPO process, conduct due diligence, and ensure compliance with regulatory
requirements.

Prepare Offering Documents: Develop prospectuses, registration statements, and other

offering documents detailing TumbleTown's business model, financial performance, growth
strategy, and risk factors for potential investors.

Market Roadshows: Organize investor roadshows, presentations, and meetings to promote

TumbleTown's investment proposition, communicate the company's vision and strategy, and
generate interest among institutional and retail investors.

Securities Offering: Determine the offering size, pricing, and timing of the IPO in
consultation with underwriters, investment banks, and legal advisors. File offering documents
with regulatory authorities and coordinate the securities offering process.

Post-IPO Transition: Prepare for the transition to a public company by establishing investor
relations programs, complying with ongoing reporting and disclosure requirements, and
adapting corporate governance practices to meet public market standards.

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XIV. Conclusion

In conclusion, the comprehensive analysis of Tumble Town reveals a promising opportunity

to establish a standout indoor 'learn and play' center that caters to the needs of families in
urban settings. Tumble Town's unique proposition, combining educational enrichment with
engaging play experiences in a safe and vibrant environment, sets it apart within the market.
The strategic placement of Tumble Town in major cities and high-traffic areas enhances
accessibility and visibility to our target demographic, ensuring optimal reach and potential
customer engagement. A customer-centric approach lies at the heart of Tumble Town's
vision, with a focus on delivering personalized experiences, diverse programming, and
continuous improvements based on customer feedback. The introduction of themed rotations
and seasonal setups adds a dynamic element to the offerings, fostering repeat
visits and customer loyalty. Looking ahead, the implementation of a robust marketing
strategy, operational enhancements, and strategic partnerships will further elevate Tumble
Town's brand presence and attractiveness to families seeking enriching experiences for their
children. With a clear vision and strong foundation, Tumble Town is poised to emerge as a
leading destination, offering unparalleled fun and educational value for families in our target
market. We are excited about the journey ahead and confident in Tumble Town's potential to
become a cherished part of the community.

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XV. Annexure
i. Excel sheets of financial calculations

Project Cost

Shareholding Pattern

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Inputs

Salary

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Cost Sheet

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Revenue Model

Income Statement

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Cash Flow Statement

Balance Sheet

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ii) LOI (Letter of Intent)

Goregaon West, Mumbai

AK Estate,
Off Veer Savarkar Flyover, Swami Vivekananda Rd, Goregaon West, Mumbai, Maharashtra
- 400062

Dear Mr Ajit Talati,

We would like to present this letter of intent, signifying our company's interest in leasing a
commercial space in Goregaon West

We are a company providing a learn and play centre for kids.

In line with this, we believe that our business is in line with yours, as we both cater to similar
interests in this area.

We would highly appreciate it if you could contact us during office hours so that we may set
up a meeting to discuss this business opportunity further, and possibly come up with a formal
business agreement.

Thank you very much and we hope to hear from you soon.
Sincerely,
Siddham Jain
Partner
Tumble Town
Contact: +91 9971550965
Email: [email protected]

ii. Consent Form

Dear Parent,,

Consent for Participation of Your Child at Tumble Town

As a valued member of the Tumble Town community, we appreciate the trust you have
placed in us to provide a safe, nurturing, and enriching environment for your child.

At Tumble Town, we are committed to fostering the growth and development of each child
through engaging and interactive indoor learning and play experiences. Our dedicated team
of educators and staff members work tirelessly to create a stimulating and supportive
atmosphere where children can explore, learn, and thrive.

We understand that the well-being and safety of your child are of paramount importance to
you, and we want to assure you that we prioritize safety measures and protocols at all times.
Our facility adheres to strict health and safety guidelines, including regular sanitization,

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cleaning, and maintenance procedures to create a hygienic and secure environment for all
children.

By signing this letter of consent, you acknowledge and agree to the following:

Participation: You consent to your child's participation in the indoor learning and play
activities offered at Tumble Town during the designated operating hours.

Supervision: You understand that trained staff members will supervise children at all times
while they are in our care, ensuring their safety and well-being.

Emergency Contact Information: You agree to provide accurate and up-to-date emergency
contact information, including names, phone numbers, and medical information, to Tumble
Town for use in case of emergencies.

Photo and Video Release: You authorize Tumble Town to capture and use photographs or
videos of your child for promotional or marketing purposes, such as on our website, social
media channels, or marketing materials. Please notify us if you prefer to opt out of this
release.

Health and Safety Guidelines: You agree to comply with Tumble Town's health and safety
guidelines, including any COVID-19 protocols, such as mask-wearing requirements,
temperature checks, and social distancing measures.

Please review the terms outlined above carefully, and if you have any questions or concerns,
feel free to contact us at [Your Contact Information]. Your continued support and partnership
are invaluable to us as we strive to create a positive and enriching experience for your child at
Tumble Town.

Thank you for entrusting us with the care and education of your child. We look forward to
welcoming them to Tumble Town and providing them with a memorable and enjoyable
experience.

Sincerely,

Tumble Town

—----------------
(Signature of Parent)

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