How to start a bounce house business in 2023

You've undoubtedly gone on an inflatable bounce house during a child's birthday celebration.

But have you ever wondered who owns such items?

If you start an inflatable bounce house business, it might be you.

You may hire bounce houses in a variety of locations, including:

Birthday celebrations for children

• Fairs in towns

• School functions

• Fundraisers

• Festivals

• and much more

For new company owners, running a bounce house rental is an exciting alternative.

If you're enthusiastic about sustainability, a rental firm can be a terrific business, but in other circumstances, renting just makes more sense.

That is exactly what happens with bounce houses.

Position your business in the correct location and establish a solid reputation, and you'll be busy all year.

Make a business strategy for renting out bounce houses.

Before you begin your new life as a rental business owner, you must first create a business strategy.

You can't start a bounce house rental business without first analyzing your market, competition, and the costs involved.

Competitive analysis and market research

The total revenue of the party supply rental market is $6 billion.

The industry had a minor setback during COVID-19, but it is now rebounding well as social distance has eased.

Bounce house rentals are simply one aspect of the leisure industry.

The beautiful thing about bounce house rentals from a business standpoint is that demand is consistent, and according to Google Trends, interest in the sector has somewhat grown over the previous five years.

Let's take a look at the target market for bounce house rentals as well as other business-related considerations to consider.

Who is your target market?

While children are the primary market for bounce house firms, you will actually be marketing to their parents.

It's worth mentioning, though, that in recent years, many people have also rented bounce houses for celebrations.

Of course, public events are another niche you may service.

Schools, churches, fairs, and festivals, among other sites, all require bounce house rentals on occasion.

However, private birthday parties and similar events will most likely account for the majority of your revenue.

The location of your business or service area might be the difference between success and failure.

If your company services a region with a large population of young families, you may find yourself quite busy, especially if you don't have many competition.

Who are your key rivals in your area?

Finding out who the other bounce house firms in your region are is one of the most significant pieces of industry research you can perform.

It may be difficult to make your business function if your local market is flooded with comparable companies.

Examine the other bounce house rental businesses in your neighborhood.

Learn about what they do, their prices, the kind of merchandise they have, and any other information you can locate.

This must be done before you commit to purchasing any shares.

You may be able to identify a market gap based on pricing, variety, service, or another criteria.

Potential areas for expansion.

Renting out bouncy houses might be just the beginning.

You may boost your income from inflatable bounce houses by expanding into other areas of the party rental market.

Inflatable interactive games, inflatable obstacle courses, and inflatable water slides are other similar enterprises to consider.

Furthermore, the general party rental market is thriving.

You might also provide rental seats and tables, tents, balloons, carnival games, face painting, and other services.

Basically, anything else that could aid in the organization of a better party.

Budgeting and financial management

Get your budgeting and business finances in order, and everything else should fall into place.

Here's a summary of the bounce house rental business's start-up costs, continuing expenses, and potential revenues.

What is the cost of starting a bounce house business?

One of the most appealing aspects of beginning a bounce house business is its low cost.

Bounce houses range in price from $1000 to $3000, depending on the size, style, and other amenities.

In addition, you will need to purchase a generator and an air blower to fill the bouncy castle in areas where there is no electricity.

Bounce house combinations that combine a regular bounce house with an inflatable slide are more costly, with prices ranging from $2000 to $6000.

WetDry bounce houses, for example, might be a popular product in locations with hotter conditions.

Next, you must pick a dependable vehicle to deliver your bounce house.

If you have numerous bounce houses, you may want to consider purchasing a van or vehicle that can accommodate a few homes in case your business grows.

As an aside, if you have a van to deliver your goods, it may be worthwhile to include your company name or emblem on the outside.

For starters, hiring a well marked van will put parents at rest and provide validity to your new firm.

Second, include your phone number, email address, or social network handles, and it may serve as free advertisement.

Other expenses are determined by how you set up your firm.

Some bounce house companies operate from a shop or other location.

However, it is not the type of business that will profit from foot traffic, so if you want to save money, you may simply run from home, providing you have a little amount of room to work with.

What are the continuing costs of running a bounce house business?

There are a number of outgoing expenditures to consider when planning for a bounce house business.

Some of these are connected to equipment upkeep, staffing, or regular company expenditures.

Here's a short breakdown of the recurring costs to consider.

Upkeep of equipment

• Cleaning materials

• Equipment Repair

Insurance

• Business Insurance

• Insurance for general liability

Costs of operations

• Gas

• Vehicle repair

• maintenance

Marketing

• Paid advertisements

• Marketing on social media

Some of these expenses are necessary, while others are something you may add to your business.

How much should you charge your customers?

Bounce houses are often rented in two-hour increments, such as 2, 4, 6, 8, and 10 hours.

However, the price is determined by the location in which you operate, the services you provide, and the product itself.

Standard hourly charges range from $30 to $50.

However, depending on the size and characteristics of each bounce house, this figure may be greater.

How much money can a bounce house company make?

The typical inflatable bounce house company will rent each home 1.5 times each week.

If the rate is $50 per hour for four hours, the total cost is $200 per party.

If you spend $2000 on a bounce house, it will take 10 rentals (or around seven weeks) to pay it off.

After that, it's all about profit minus expenditures.

So, if we calculate it that way, each bounce house makes about $300 every week.

A commercial bounce house should survive for around five years.

Once you've recovered your original investment, adding a second bounce house to your stable might result in monthly income of roughly $2,400.

Obviously, if more bounce houses are added, this can be scaled up.

Create a legal entity for your company.

You must take care of the administrative side of things if you want to manage a firm.

For a bounce house business, topics like business registration and taxes must be considered.

You'll also need company insurance if something goes wrong because you'll be working with people.

Choose a name for your company.

Choosing a business name is one of the first steps (or bounces) on your entrepreneurial path.

Finding a name that expresses your company's joyful attitude, on the other hand, might be difficult.

It's rather common for a bounce house company's name to include the words "bounce houses" or "party."

There are several valid explanations for this.

For starters, it clearly communicates to potential clients what your company is all about.

Second, having a website or social media presence aids in search engine optimization.

If you do decide to take this way, there are a few things you should be aware of.

For starters, if your company name is too similar to those of your rivals, it might be difficult to distinguish yourself.

Second, buyers who search for your company will also locate your rivals.

It's a tricky balancing act.

Once you've decided on a business name, check your state's business records, website names, social media handles, and trademarks.

To minimize misunderstanding, you must operate under a distinct name.

Form a business entity

Following that, you must decide which legal structure is ideal for your company.

You should not take this decision lightly because it will effect your liabilities, taxes, and other factors.

Here's a breakdown of your possibilities.

Sole proprietorship: This is the most prevalent business structure. It effectively means that you are the business, with no distinction between the firm and its owner. This arrangement makes you personally accountable for any obligations, liabilities, or losses. You also pay taxes on your business revenue or on your personal tax return.

General partnership: This structure is comparable to that of a sole proprietorship. It is utilized, however, when there are two or more business proprietors. Be cautious when choosing a business partner since you will be held accountable and responsible for whatever mistakes they make.

LLC: The proprietors of an LLC, or limited liability company, are protected from debts. The business and the business owner are legally distinct entities. You also get passed through taxes with an LLC structure. That implies you have to pay personal income tax on your part of the company.

C Corp: A C corp also distinguishes between the owner of the firm and the renting company. As a result, you are not accountable for any debts. The disadvantage is that both the owner and the business must pay taxes.

Overall, an LLC is most likely your best option here.

They are simple to set up, restrict your exposure for losses, and, unlike a C Corp, you may pass your taxes through.

Register for taxes

In terms of taxes, if you operate a rental business, you must register for taxes before you can begin operations.

Remember that you must pay both state and federal taxes.

Furthermore, most businesses are required to collect sales tax on the items and services they offer.

You'll need an EIN, or Employee Identification Number, to do so.

These numbers are issued by the IRS.

It's completely free and simple to do online.

If you want to organize your firm as a sole proprietorship, you can just utilize your SSN instead of an EIN.

Some of the taxes you must pay are determined by the form of your firm.

If you form an LLC, you should consider choosing the IRS designation known as S corporation.

Set up a business bank account

Next, you'll need a company bank account to keep all of your profits!

On a more serious note, this is a key stage.

Commingling finances, or combining your personal and corporate funds, is a bad idea.

For instance, if you are an LLC, you may lose liability protection.

If this occurs, your personal assets may be jeopardized if you are sued or lose money.

Second, it complicates tax calculations, company forecasts, analysis, and accounting.

Opening a business account provides additional advantages.

It enables you to begin developing credit, obtain business loans, and obtain a corporate credit card, which may aid with cash flow.

Permits and licenses required for bounce house enterprises

You must apply for the relevant permissions and licenses when launching an inflatable bounce house business.

Failure to do so may result in fines or the closure of your firm.

You'll need to obtain multiple licenses from federal, state, and local entities.

However, there is a lot of diversity across states.

State licensing

Some states do not require a license but have additional requirements.

Annual equipment inspections and verification of insurance are among the rules.

Other states may also need you to pass a criminal background check.

You should verify the laws in your state.

Virginia, for example, needs licenses for "inflatable entertainment equipment."

Local licensing

Local licensing is often more focused on bouncing houses located on public land, such as fairs and city parks.

If you wish to get engaged in that field, you must first confirm that you are legally compliant.

General business licenses and permits

Depending on your state, you may additionally require a more general business license.

In brief, before starting, double-check the rules in your state and local region.

Purchase business insurance tailored to bounce house operations

If you own a bounce house company, you must obtain business and liability insurance.

In fact, without insurance, you will not be operating legally.

General liability insurance: General liability insurance is a great all-purpose coverage. It protects your company from covered losses including as personal injuries and property damage.

Business property insurance: This form of insurance protects your equipment against harm.

Auto insurance: Auto insurance protects your vehicle in the

Worker's compensation: Protects your personnel from workplace injuries.

Decide what coverage you require and shop around until you locate the best insurance provider and policy for you.

Other policies you should consider

Insurance plans aren't the only ones to think about.

If you own an inflatable bounce house company, there are a few policies you can put in place to ensure the smooth operation of your company and protection against a variety of financial losses.

Waiver of Liability

It's a good idea to have your clients sign a liability disclaimer when they utilize your bounce house rentals.

A gathering with kids who are high on sugar is chaotic.

Anything is possible, including falls or crashes.

Even with the finest safety safeguards in place, it's simply the nature of the sport.

You must protect yourself from any accusations that may be made against your company.

Of course, you must also maintain the greatest safety standards on your end to avoid reputational harm.

Policy on safety

Another crucial component of any inflatable bounce house business is a safety policy.

So make some ground rules to guarantee a safe and enjoyable encounter.

Included items are:

• There is a limit to the number of individuals who can ride the bounce house at the same time.

• There are no shoes.

• No sharp items, glasses, or the like.

• Keep taller and shorter users apart, and so forth.

  Policy on Cancellation

  
  Consider the following scenario.

  You have two bounce houses, both of which are scheduled for the upcoming weekend.

  You receive an enquiry, but you must decline it.

  Then, on the scheduled delivery day, one of your customers cancels.

  You've lost money.

  It's a good idea to include a cancellation policy in your contract.

  It might be a proportion of the overall rental charge, or it can be as little as 24 or 48 hours notice.

  A cancellation policy is simple to establish and show with Rentle.

  You may also utilize the automated deposit tool, which pre-authorizes your customer's card and charges the price based on your cancellation policy.

  Purchase the proper equipment for your bounce house company.

  When establishing a bounce house business, you may be tempted to purchase a domestic bounce house rather than a commercial bounce house.

  That, however, would be a huge error.

  If you hire inflatable bounce houses, your equipment will most likely get a lot of use.

  Residential bounce houses are not designed to survive heavy use over time.

  Purchasing a home bounce house might be a waste of money.

  Sure, you'll save a few pounds up front, but you'll lose that (and more) if you have to replace it on a regular basis.

  Also, make sure you obtain a powerful enough generator and air blower for the

  Plan your everyday activities.

  If you want a successful inflatable bounce house company, you must plan how it will work on a daily basis.

  Storage

  Depending on the size of your bounce house business, you'll need to make sure you have enough storage room for your goods.

  A deflated bounce house will compress to a tiny size, but you'll also need to make room for other goods such as a blower, generator, cleaning supplies, a hand truck, and any other equipment you utilize for your business.

  If you have a garage, you will have adequate space for a modest enterprise.

  However, when your company expands and you acquire more bounce houses, you may need to consider alternative solutions, such as a lockup or hired storage space.

  While most bounce houses come with sturdy storage bags for transit, you should not store them outside.

  You'll want to keep your items in good condition so they appear beautiful and last a long time.

  Inventory control

  Inventory management is an essential component of every rental company.

  If your inflatable bounce house business is just getting started, keeping track of your appointments should be simple.

  However, having an inventory management system is an excellent idea.

  Order processing and scheduling

  If you run any form of party rental business, order fulfillment and scheduling are critical.

  While you may get by with phone calls and a journal, customer expectations have shifted in recent years.

  The contemporary customer dislikes making phone calls or sending emails.

  Self-service choices are more appealing to them.

  They anticipate being able to go online, peruse items, and view available dates.

  Your rental costs should also be clear and honest on your website.

  Of course, not every inflatable bounce house company will have a dedicated website.

  It takes time and knowledge, and it must be maintained.

  Using a rental platform or a social media account is a common solution.

  Delivery

  If you want to rent bounce houses in your neighborhood, you must have a dependable vehicle to move your items from one location to another.

  When you get a rental booking, you must account for the following:

• The duration of the bounce house reservation (i.e., 4 hours)

• Time to build up and time to build down (approx 30mins each)

• Driving to and from the venue

  When arranging appointments, keep all of these variables in mind.

  Build-up

  As previously said, the construction of your bounce house is an important aspect in your business.

  Once you get the hang of it, you should be able to put up a bounce house in around 20 minutes.

  When putting up a bounce house, there are a few measures that must be taken.

  1. Get Ready

  Safety is the most critical aspect of any bounce house rental.

  Check the weather forecast for high winds, heavy rain, or other inclement weather.

  Slipping or falling might result in serious harm if the conditions are sufficiently harsh.

  Check out the place next.

  A clean, level surface with a few meters on either side is ideal for setting up an inflatable bounce.

  You must avoid hazards such as low trees, surrounding pools, powerlines, and sudden inclines.

  So, before you put up your bounce house, check the weather and the site.

  2. Arrange the bounce house

  Lay out your bounce house and optional tarp on the ground.

  Make sure there is adequate access to the entryway and space on all sides.

  3. Connect the blower

  The majority of bounce houses have a blower to inflate the product.

  Connect it to the mains using an extension cable or to your generator.

  Connect the blower to the inlets of the bounce house and close any outlets.

  4. Fill the bounce house with air.

  This is the most enjoyable portion, aside from all the bouncing about.

  Inflate the bounce house and inspect it for any leaks or tears.

  Stop the blower and fix the bounce house if you see any.

  5. Secure it with a tie

  An important step is to secure your bounce house.

  The birthday celebration will be ruined if your bouncy house is taken by the wind or flips over.

  As a result, make certain that everything is securely fastened.

  Then, after a short examination of the house material and anchors, you're good to go.

  Break down
  

  No party can endure indefinitely.

  When you arrive to pick up your inflatable bounce house, there are a few measures you must follow to ensure the product's lifetime.

  1. Examination

  It's time for a short check once everyone has exited the bouncy house.

  Any rental firm should verify that their equipment has been properly handled so that you can deal with problems as soon as they arise.

  Some deterioration is unavoidable.

  In any case, make a note of any tears for future reference.

• 2. Clean up

  Even if you have a no-shoes and no-drinks policy, even modest use will necessitate cleaning of your bounce house.

  So clean the bounce house and then dry it.

  This is a must if you want to avoid mildew and mold.

  3. Switch off the blower.

  Unplug the inlets and turn off the blower.

  Wipe down the blower as well.

  4. Open the outlets

  Allow the air to escape by opening the vents.

  5. Remove the anchors and deflate the balloons

  The anchors must then be removed and packed away.

  Allow the home to totally deflate.

  6. Fold and store

  The bounce house should then be folded and packed away.

  Upkeep of equipment

  The majority of the maintenance work for your inflatable bounce houses may be done during the build-up and build-down stages.

  You shouldn't have too many problems if you follow the tips above and store your bounce house properly.

  A rip in a bounce house is quite simple to repair.

  The best technique to repair tears in commercial bounce houses is using a vinyl patch.

  Otherwise, you must guarantee that your blower is always operational.

  It's an important piece of equipment, so have a spare on hand in case of difficulties.

  Start building your brand

  Create a website

  If you want to manage a bounce house business, you must have a business website or, at the very least, a strong social media presence.

  There are various excellent website builders available for rental businesses.

  If you are not a developer and do not intend to become one, Squarespace is an excellent choice.

  If you have a website, search engines might be a consistent stream of revenue for your inflatable rental company.

  Because bounce house companies are inherently local, local search engine optimization (SEO) is critical.

  So, include keywords and the places in which you intend to operate when targeting local searches.

  "Bounce house rental in Insert Location>," for example.

  Market your company to get clients and establish a reputation

  Nowadays, digital marketing is everything.

  Many potential clients will search for and contact businesses via social media profiles.

  You must have a presence on social media platforms such as Facebook and Instagram.

  Social media marketing may be a wonderful approach to engage with local parents.

  Locally specialized message boards, as well as more traditional venues such as local publications or community message boards, might provide benefits.

  If you know individuals in your town, you may leverage your network to spread the word about your company.

  Otherwise, Facebook or Google Ads are excellent ways to get your firm off to a good start.

  While running sponsored advertisements can be costly, employing the correct keywords and audience targeting might result in a decent return on investment (ROI).

  The crucial word here is experimentation.

  So run a couple advertisements and watch what happens.

  Facebook and Google Ads need some trial and error, but when done correctly, they can be highly effective.

  Conclusion

  Operating a bouncy house business can be a fantastic concept.

  The sector is expanding, and it's a business that you can start with a modest investment.

  So, if you want to be your own boss while bringing joy and brightness into people's lives, an inflatable bounce house business might be ideal for you.

  In the appropriate area, party rentals may be a profitable company.

  With very little capital, an inflatable bounce house business may create a consistent revenue.

  You may even broaden your business by providing inflatable obstacle courses or water slides.

  Running your own business is fraught with ups and downs.

  However, few companies provide as much joy to the community as an inflatable bounce house.