Business Opportunity
Laburinthos Ltd decided to add an income generating second venture to their escape rooms business . In 2021, they had moved premises and invested heavily in three new escape rooms on the ground floor of a two storey building in Cheltenham, UK. This left the first floor, roughly 180m2, available for other opportunities. However, with three new escape rooms to focus on, the Laburinthos directors wanted to outsource the new venture.
I helped them to develop a low risk separate axe throwing activity, which was then merged back into the business at the end of 2023. The axe throwing activity has increased Laburinthos’ turnover by over 40% annually.
Summary of Requirements
Laburinthos’ requirements for the new opportunity were:
- Compatible with the escape room customers
- Utilise no more than half the first floor space
- No additional cost to Laburinthos
- Create a consistent additional income for Laburinthos
- Minimal disruption to the building
- Easily turn the first floor space back into escape rooms in future if required
- No involvement from the escape rooms management or other staff
Laburinthos Ltd Background
Laburinthos Ltd is a small Cheltenham based company formed in 2019 to develop a fledgling escape room business, under the brand name Escape Rooms Cheltenham. Growing out of a community project, it had been very successful by 2020. In a bid to speed up recovery post-Covid, the escape room business was moved to the new larger town centre location in 2021.
Solution
Setting up an axe throwing range in the first floor space was potentially a good option for Laburinthos. Another entertainment activity was very compatible with the escape rooms, attracting similar customers. Also, the installation of an axe throwing range didn’t require a great deal of change to the building. It would be relatively easy to convert the space to more escape rooms, or other activities, if the axe throwing activity didn’t take.
The plan was that I would establish a separate, independent axe throwing business, which would contribute a fixed monthly ‘rent’ to Laburinthos for the first floor space. Any additional profits would be reinvested in to growing the new business. This was a low risk option for Laburinthos, allowing them to focus on the existing escape room activity, while receiving a regular supplementary income.
In order to reduce the risk of spending a great deal on a business that might not succeed, I approached it in a series of customer development “experiments”. Initially assessing whether there was sufficient interest with a basic axe throwing range, before then developing it further in response to customers. Finally, when the business proved to be sustainable, I managed the handover back to Laburinthos to run it alongside the escape room activity.
Axe Throwing Business Proposition Summary
To build a separate, low risk, income generating axe throwing business to utilise the surplus space available in the new premises, complementing the existing escape room business
Initial Startup (Aug 2021 – Dec 2021)
Overview
Axe throwing is rapidly gaining in popularity in the UK, but it was still a novel activity in 2021. To reduce the risk of investing heavily into a venture that was not financially viable, the first evolution of the axe throwing business was kept as simple as possible. The fit out was completed quickly in August 2021 and the new business launched in September, with advertising through existing marketing channels. The focus was on establishing whether the business was sustainable by the end of 2021.
Brand Development & Marketing
I created a new distinct brand for the new axe throwing venture. It was called Eat Sleep Axe. The idea being to emphasise an enthusiastic passion for axe throwing, in a fun way, using the well-worn meme. There’s nothing else in life but the basic priorities of eating, sleeping and, of course, throwing axes.
It was important to emphasise that axe throwing was a passion, rather than just another activity tacked on to the escape room business. The separate branding was then reinforced by the marketing of this eat- sleep-axe ethos.
Eat Sleep Axe expressed the image of a fun, new, slightly edgy, but very accessible activity for all types of people. I designed a logo to reinforce this, using a graffiti style to tie in with the “urban’ axe throwing, but in a friendly rounded font. I wanted to appeal to the broad customer base that the escape rooms attracted. This was not simply marketing ‘hype’ though. My intention was to create a business that was attractive to axe throwing enthusiasts, as well as those new to the sport. Consequently, 90% of the budget was spent on building the new business, with less than 10% on marketing.
The main focus was creating a great experience that people would tell their friends about. Throwers were encouraged to take photo’s and videos, and were more than happy to share them on social media. This proved to be more than sufficient. I didn’t buy any additional paid ads, although I did expend a fair amount of effort on building the Instagram and Google profiles. I was also able to make use of various marketing channels established by Escape Rooms Cheltenham.
A key foundation of the marketing approach was the eatsleepaxe.com website, which I designed and built. The website’s look and content emphasised the novelty of axe throwing, and provided multiple links to the booking system. I implemented a free booking tool initially, but, as the number of customers increased, moved to a commercial booking system, which I integrated into the website. I used appropriate SEO and performance tools to ensure that the website became the first result for anyone searching for axe throwing locally.
Project Management of the Fit Out
The fit out included building the axe throwing targets and safety fencing. It also involved creating an inviting space for throwers, in line with the overall business strategy. I managed the initial fit and then the ongoing maintenance.
The total budget for the start up was £5000, with the bulk of that going on the fit out. It was not an insignificant figure for a speculative venture that could have failed, but not a huge amount for a whole fit. The space available hadn’t been used for many years and was very ramshackle.
I decided to play up the abandoned building look for the new space. This suited the ‘urban’ axe throwing theme well. I paid a local street artist to spray paint a street art style interior. Although this was costly, it did create a ‘wow’ response for customers, and enabled me to spend less money on other decor.
I installed a stud wall to partition off an area of about 70m2 from the escape rooms work area. I stripped out this area back to bare floors, ceiling and walls, making it safe, but still fairly rough. This suited the urban look, which was further enhanced by a caged area of roughly 40m2, I created from scaffolding poles and deer fencing. This housed three axe throwing lanes, with targets painted onto end-grain wooden boards.
I spent more money where it was necessary. For example, on safety features like the fencing, and also rubber chippings below the boards to reduce the chances of axes bouncing. I bought good mid-range throwing axes to suit more experienced throwers and beginners alike. A large portion of the budget went on the end-grain blocks that made up the targets. End-grain targets are far superior to wooden planks for axe throwing, but more expensive up front (in the long term planks are extremely expensive as they wear much quicker).
Staffing
Laburinthos didn’t want to share staff for axe throwing, as they were busy enough with the escape rooms, so I recruited two new people to deliver axe throwing sessions. They both had good customer service skills, but no previous axe throwing experience. They shadowed me as I delivered the axe throwing to customers and, with additional coaching as necessary, they were soon able to lead the axe throwing sessions by themselves.
I handled the various administrative tasks (managing bookings, responding to emails, et al), alongside marketing tasks. I was responsible for the financial management, but contracted a part time bookkeeper for the payroll and bookkeeping.
Summary of Services Provided
- Created the Eat Sleep Axe brand identity
- Designed the website and logo
- Built the eatsleepaxe.com website
- Optimised website for performance and search engines
- Organised marketing events
- Produced social media content and other advertising
- Managed the fit out of the axe throwing space
- Designed and built axe throwing targets
- Sourced materials and equipment
- Trained the axe coaches
- Managed the finances
- Defined and implemented administrative procedures
Investment for Growth (Jan 2022 – June 20222)
Overview
Eat Sleep Axe successfully beat the targets I set for the initial startup period, and so I spent the next six months developing it further. My approach was to reinvest any profits back into new ideas. I tested out these new ideas with customers, and kept the best ones.
Investment in Technology
A significant new innovation was the addition of digital targets projected on to the boards. I created a bespoke system using a microcomputer and projector (commercial digital target systems are available, but cost far more than I wanted to spend on an experiment). The targets consisted of a series of slides projected on to the boards for throwers to hit. Each slide was a different axe throwing game, for example a competition target, noughts and crosses or even a zombie.
I set the projector system up on one lane initially. It proved very popular and I converted all three lanes to the system by the end of January 2022. Apart from installing projectors, this also involved shading the throwing lanes and reducing the light to enable the projected targets to be seen.
A further popular addition was the ability for customers to send in their own targets or messages, eg for birthdays. This was one of the benefits of having our own flexible in-house projection system.
Building Expansion Project Management
A number of changes were made to the axe throwing space to improve it for customers. Some were simple tweaks, eg sun shades to shield the projections. Other changes were more impactful and required a great deal of planning to ensure that the business was able to continue with little loss.
As a result of greater numbers taking part in the axe throwing, more soundproofing was needed to reduce the noise for the escape rooms on the floor below. I also decided to increase the axe throwing space to create a larger reception area, to cater better for large groups.
The amount of change to the building was actually more than the initial fit out (now that the business had proved to be viable). It included dismantling the targets and fencing in order to install a new floor above soundproof insulation, them moving the existing stud wall back two metres, before replacing everything.
The work was completed in about one week (to avoid loss of business), but the main project management task was in the months beforehand, planning the work to fit in the time available. I also spent a lot of this time researching and experimenting with the best options, eg for soundproofing.
Summary of Services Provided
- Analysed and responded to customer behaviour
- Built bespoke digital target projection system
- Managed building expansion project
- Researched and experimented with new materials
Developing More Features (Jul 2022 – Aug 2023)
Overview
Although there was some innovation, the strategy for the second year was to develop new features to delight customers further (in contrast to the first year’s focus on general growth). This was encouraged by increased, targeted marketing, including some paid advertising.
Developing Group Bookings
A number of changes were introduced to encourage group bookings (building on the back of the enlargement of the axe throwing space). In particular, I targeted work groups and hen/stag parties.
I changed the bookings to a per lane/venue model, rather than per person as it was initially. This ensured a minimum price for smaller groups, but also gave generous incentives for larger groups. I also discounted for groups and couples in the week, concentrating the larger groups on the weekend, the busiest time.
I also introduced a number of addons for groups over ten people. These included options such as a tournament and refreshments. There was an additional cost for some of them, but most were free for large groups.
Escape Room Collaboration
The escape rooms and axe throwing activities were separate from the start, by design, but people often booked both activities. To strengthen this, I created a streamlined booking process for a combined package with both businesses. The two activities were still separate, but I coordinated the bookings so that people doing both activities had a seamless experience.
Event Management & Marketing
Throughout the second year, I organised a series of events to use as a focus for advertising. These were geared around regular calendar events, Christmas, Halloween, Easter etc, and also more ad hoc, eg a Summer AxeFest.
The digital targets could easily be modified to include new games to add particular themes, eg games for Halloween. They could also display appropriate decorations to add to the theme.
Although there were few minor changes to the fabric of the space in the second year, I did experiment with lighting and UV decorations. The space was obviously kept dark for the projecters, and different lighting helped create new moods for different themes, with little effort.
The different events provided plenty of opportunity for advertising locally (generally free). I also gave away prizes for competitions at these events, typically discounts for future booking. These were fun for people to compete for, but also encouraged them to return again.
Summary of Services Provided
- Targeted advertising for groups and combined bookings
- Developed group addon features and pricing
- Streamlined booking processes
- Organised events throughout the year
- Promoted events on social media and other media
Handover to Laburinthos (Sep 2023 – Present)
Overview
The axe throwing activity was clearly profitable after two years, and it was now time to merge the activity into the Laburinthos company, alongside the escape rooms. As the initial risks had been dealt with, it made sense to combine the staff and booking systems, although the Eat Sleep Axe branding persisted.
Axe Coach Training
I had previously recruited and trained separate axe throwing staff, who were integrated into Laburinthos, and provided the core axe coaching going forward.
In addition, I provided training for the escape room game masters, so that they could also cover both activities. This involved an initial training session and then they shadowed me as I delivered sessions over a few months. I provided axe throwing training material, including videos, for reference and future training, as needed.
Management Handover
Over the course of four months, I transitioned the management of Eat Sleep Axe over to the Laburinthos managers.
The handover date was set for December 31 2023, which required planning to ensure that the transition was transparent to customers. This included integrating the business systems, eg booking and payroll. I streamlined the processes at the same time, for example creating new session times to improve the integrated experience or customers.
I also created comprehensive reference documentation for all aspects of the axe throwing business. This was stored online for future use, and I also walked through the content with the Laburinthos managers. This included guidance for customer facing activities, such as safety talks, as well as management of background activities, such as target maintenance.
Remote Support
From January 1 2024, I reduced support for Eat Sleep Axe to remote consultancy. I continued to host and provide technical support for the website. I was also available on a regular basis for advice and problem solving axe throwing queries.
Summary of Services Provided
- Trained escape room staff to deliver axe throwing
- Provided axe throwing training material
- Organised handover of Eat Sleep Axe to Laburinthos management
- Managed/optimised transition of business processes
- Provided management documentation
- Provided website technical support
- Provided remote support following handover