Common Financial Mistakes Escape Room Owners Make (And How to Avoid Them)
Hello there, escape room enthusiasts and owners!
Running an escape room business is no walk in the park (though, wouldn’t that be an interesting theme?). Between crafting mind-bending puzzles and creating immersive experiences, managing your finances can often feel like the real-life escape room — one that you didn’t sign up to play!
But don’t worry, I’ve got your back. As someone who’s been in the trenches of escape room ownership and bookkeeping, I’ve seen it all. To save you time, money, and headaches, here are some of the most common financial mistakes escape room owners make — and, more importantly, how to avoid them.
Mistake 1: Ignoring profitability by game or room
Not all escape rooms are created equal. Some games might be bringing in the big bucks, while others struggle to cover their costs. The mistake? Grouping all your financials together without understanding how each individual room performs.
How to Avoid It:
Track profitability at the room level. Analyse sales, payroll, repairs, marketing costs, and even the time it takes to reset each room. Tools like Xero or Syft Analytics can help, or you can lean on someone like me to do the heavy lifting. This clarity will help you focus on what’s working and improve what isn’t.
Mistake 2: Mismanaging cash flow
Escape rooms often experience seasonal peaks and troughs. While the busy months can be exciting, the quieter ones can leave you scrambling to pay bills or staff. Poor cash flow planning is one of the biggest threats to small businesses.
How to Avoid It:
Create a cash flow forecast that accounts for seasonal fluctuations. Keep a financial buffer for emergencies and consider using funding options like grants or loans during lean periods (I can help you find the right ones).
Mistake 3: Underestimating tax requirements
Taxes: the one puzzle none of us enjoy solving. Whether it’s VAT or Corporation Tax, failing to plan for your tax obligations can lead to unwelcome surprises — and penalties.
How to Avoid It:
Stay on top of your tax responsibilities throughout the year. File your VAT returns accurately (in line with Making Tax Digital rules) and set aside a percentage of your revenue for tax payments. Better yet, hand it all over to someone who knows the ropes (hello, that’s me!).
Mistake 4: Overlooking employee costs
Escape room teams often include a mix of full-time, part-time, and zero-hour workers. With varied pay rates, schedules, and pension contributions, payroll can get complicated quickly.
How to Avoid It:
Invest in a payroll system that handles these complexities, or let a bookkeeper take it off your hands. Ensuring your team is paid accurately and on time keeps morale high and avoids costly errors.
Mistake 5: Not using data to drive decisions
Your booking data, customer feedback, and revenue reports are treasure troves of information. Yet, many owners don’t use this data to refine their pricing strategies, marketing efforts, or operational decisions.
How to Avoid It:
Regularly review key performance indicators (KPIs) like occupancy rates, average booking sizes, and customer types. This can help you tweak your marketing campaigns or adjust your pricing for maximum profitability. And if that sounds overwhelming, let me guide you through it — analysing escape room data is one of my favourite things to do.
Let’s escape these mistakes together
Running an escape room business is a creative dream, but navigating the financial side doesn’t have to feel like a nightmare. By tackling these common mistakes, you’ll not only save money but also free up more time to focus on what you love — designing unforgettable experiences for your players.
Need help sorting out your finances or making sense of your numbers? Let’s have a chat. Whether you’re just starting out or ready to level up your business, I’m here to help you unlock your escape room’s full potential.
Here’s to your success!
Chi / Sam
Your Escape Room Bookkeeper
