Given its growing popularity, a lot of people are seeking to understand how to start a bounce house business. We decided to provide a comprehensive guide to help you get started on some key aspects that you should consider before moving forward.
This article will help to understand a complete guide with 7 sequential steps to start an inflatable bounce house business.
According to the market research of PRNewswire,
“The global market for inflatable toys, which was previously anticipated to be worth $4.8 billion in 2020 but is now expected to expand almost $6.7 billion by 2026 at a CAGR of 5.7% throughout the observation period.”
In this case, you can start with one inflatable and gradually add more as your company expands.
The majority of events take place in the evenings or on weekends, making it the ideal part-time business that, if a following is built, can be converted into a full-time endeavor.
7 Steps to Start a Bounce House Business
Step 1: Create a Bounce House Business Plan
An entrepreneur needs a clear plan in order to succeed. It can be used to outline the specifics of your business and pinpoint certain unknowns.
In this stage, you need to consider the following aspects.
- Startup and ongoing cost
- Target market and audience
- Business name
- Price list
Conduct Market Research
Even while many adults are now holding events using bounce houses, the majority of your customers will be kids who are celebrating birthdays, graduations, family reunions, and other significant life milestones.
Therefore, you should focus your marketing efforts on reaching out to businesses, churches, and fundraising events.
Wondering if the bounce house business is profitable?
According to market data, a bounce house receives an average of 1.5 rents every week, or $188 per week. Your company will make roughly $750 each week if you invest in 4 bounce houses.
Related For You: Is A Bounce House Business Profitable?
Choose Bounce House Business Name
Choosing the ideal name is difficult and crucial. If you’re having trouble coming up with a name for your business, you can consult with us or use the Inflatable Bounce House Business Name Generator for assistance.
You might choose to use a business name other than your own name if you run a sole proprietorship.
Step 2: Choose Your Preferred Legal Structure
The four primary types of business structures are sole proprietorship, partnership, limited liability company (LLC), and corporation.
If your inflatable bouncy house business is sued, creating a legal business entity, such as an LLC or corporation, shields you from being held personally liable.
You can either engage one of the Best LLC Services for a modest, additional fee or you can form an LLC yourself while simply incurring the minimal state LLC costs.
Step 3: Register Your Bounce House Business
You need to sign up for a variety of state and federal taxes before beginning a business.
Moreover, you must apply for an EIN in order to register for taxes. Really simple and cost-free. You can obtain your EIN without charge by mail, fax, or on the IRS website.
Small Business Taxes
Depending on the business structure you choose, you may have different options for how your company will be taxed. For instance, some LLCs might benefit from S company tax treatment (S corp).
There are particular state taxes that can be applicable to your company. Learn more about franchise taxes and state sales taxes.
Open a Separate Business Bank Account
For the protection of personal assets, it is crucial to use special business banking and credit accounts.
Your personal assets like your home, vehicle, and other valuables are in danger if your firm is sued when your personal and business accounts are combined. This is known as “piercing your corporation veil” in business law.
For that reason, it is crucial to open a separate business bank account, including
- Personal asset protection necessitates keeping your personal assets separate from those of your company.
- Simplifies bookkeeping and tax filing.
Step 4: Obtain All Required Licenses & Permits
In this step, you need to obtain licenses and permits. The demands differ according to state and local laws. Additionally, several states classify inflatable rental companies as a specific kind of amusement park.
In most cases, an occupational license is necessary. If so, the state can call for further paperwork and equipment inspections.
To run a bounce house business, you might need to obtain specific state permits and licenses. By going to the SBA’s reference to state licenses and permits, you can find out more about the licensing requirements in your state.
Step 5: Get Bounce House Business Insurance
Now, it is time to get insurance for your rental business. Similar to how a business needs licenses and permits to function legally and safely, insurance is also necessary. The financial stability of your business is safeguarded by business insurance in the case of a covered loss.
For various businesses kinds with various risks, there are many insurance policy types. Start with general liability insurance if you are unsure of the risks your business may face.
A common insurance policy that many businesses need is workers’ compensation insurance. There’s a significant likelihood that your state will require you to carry workers’ compensation coverage if your business employs people.
Step 6: Integrate Website & Other Software Tools
A website has replaced a business card as the norm. Make sure you appear when customers conduct online searches for bounce house companies. You want to leave a good initial impression, which is very crucial.
Nothing is more annoying than visiting a website with a lousy design. It conveys that you are not taking your company seriously, and potential clients are likely to seek out your rivals who have executed their strategies more successfully.
To resolve these kinds of issues, you need to design, develop, and integrate a responsive website for your bounce house rental business.
Most significantly, you can also integrate a complete bounce house rental software that will provide dynamic management as well as automated maintenance of your bounce house rental business.
Related For You: Launching An Equipment Rental Business Website
Step 7: Advertise & Promote Your Bounce House Business
You must inform them of your existence if you want to attract your first clients. The Internet has significantly affected local marketing. In this regard, you can conduct the following marketing strategies to advertise and promote your bounce house rental business.
Ensure Online Presence
Making a website should be your first priority. Here, you can share images of your bounce houses, list your prices, and even share some blogs about birthday celebrations and other events where bounce houses are used.
Social Media Marketing
Following the creation of your website, you should post about it on social media. Create coupon codes for Facebook, Twitter, Instagram, and other places to see how effective social media advertising is.
By doing so, you may monitor how many people saw your social media advertisement and its success. Use a separate code for every site, then evaluate the outcomes.
A lot of businesses publish articles and blogs on other websites to position themselves as authorities and promote their brands. This kind of content may be related to bouncy houses or picnics, birthday celebrations, or business events where bounce houses may be employed.
Advertise your services in the newspaper, phone book, and even by distributing fliers across the neighborhood. To get things going, give discounts to the first 100 or so consumers.
Additionally, you can advertise in restaurants on paper placemats, community boards, and receipts. You can promote your bouncy house rental company in a variety of ways.
These are just a few methods for spreading the word about what you have to offer and for advertising. You’ll discover chances everywhere if you’re imaginative.
Unlock Your Opportunity
Reshape Your Bounce House Business with a Smart Framework
Starting a bounce house business, whether as a side gig or a full-time project, can be a terrific entrepreneurial venture.
Recent years have seen a huge increase in the use of bounce house rentals, which are now virtually ubiquitous at events like birthday parties, community gatherings, and company outings.
However, that does not imply that it will be simple. Before launching your bounce house rental business, you have to ensure the technological favor.
In this regard, you can go for RentMy which will serve you a dynamic solution to manage your bounce house rental business automatically.
With this software, you can operate your bounce house business from real-time booking, order management, POS system, barcode tracking, asset management, financial management, and so on.
So, it is the best time to grab this automation and reshape the internal mechanism of your bounce house rental business.
Related For You: Starting a equipment rental business
You are welcome to the closing part of this article. Wondering how to start an inflatable bounce house business? Hopefully, you have understood how you can start an inflatable bounce house business with a step-by-step direction.
Many individuals are searching for business chances in this area because of its tremendous growth potential. Strong networking and marketing abilities would therefore be advantageous.
So, today is the best time to start an inflatable bounce house business and ensure technological favor to boost the revenue of your business.