HOW TO START AN INFLATABLE BOUNCE HOUSE RENTAL BUSINESS OR INDOOR JUMP CENTER
Just about every kid loves to bounce. That is why bouncy houses are so popular at birthday parties, corporate events and fundraisers. If you enjoy working with event and party planners, then consider starting a bounce house, moonwalk rental business. Start with one to three inflatables and add more as the business grows. Since most events occur in the evening or on weekends, it’s the perfect part-time business that can be parlayed into a full-time venture once the business is established.
Purchase an inflatable bounce house, castle, slide, waterslide, combo or inflatable games from Discount Bouncers. Most companies provide guidance in starting a business and direct you to financing sources. As the business grows, purchase additional models to provide a variety and to service multiple customers.
Buy or rent a truck or trailer to transport the inflatables to an event. Each inflatable can weigh more than 100 lbs. A dolly will be useful in moving the equipment at the destination.
Secure a storage facility for the bounce houses. Depending upon the number of inflatables owned, the space requirements will vary. The storage facility should keep equipment clean, dry and away from animals that might harm it.
Decide on a legal structure and name the business. Possibilities include sole proprietorship, partnership, corporation and limited liability company. The latter two afford protection from claims if anyone gets hurt. Check with the state secretary for registration requirements because they vary by state.
Obtain licenses and permits. The requirements vary by state and local jurisdiction. An occupational license is generally required. In addition, some states consider an inflatable rental business a type of amusement park. If so, additional filings and inspections of equipment may be required by the state.
Obtain liability insurance to cover accidents that may occur on the equipment. General business insurance will cover damage to the equipment. Consult an insurance agent to determine the amount of coverage necessary. Some states dictate the level of insurance coverage if the business is classified as a type of amusement park.
Prepare a rental agreement. A number of key provisions should be reviewed with an attorney. For example, the rentee must understand the proper use of the equipment and agree to hold the company harmless in the event of injury.
Advertise services. Send out a news release when the business opens. Place ads in the phone book, newspaper and local magazines that parents might read. Prepare business cards and fliers. Consider creating a website or Facebook page. Display the business name and phone number on the equipment used at parties. Provide business cards to party-goers for their next event. Ultimately, referrals will become a valuable source of ongoing business.
Below is a list that has been compiled to help you get your projections together. These are helpful if you are wanting to start a indoor facility or (FEC) family entertainment center.
- Business Overview
- Goals and Objectives
- Location and Facilities
- Ownership and Management
- Staff Requirements
- Industry Description and Outlook
- Industry Analysis
- Market Trends
- Target Market
- Indirect Competition
- Direct Competition
- Value Proposition
- Competitive Advantage
PRODUCTS AND SERVICES
- Products, i.e. bounce house, moonwalk, castle, slide combo, bouncer, inflatable games, water slide, table and chairs, accessories
- Prices/rental rates
- Market Segmentation Strategy
- Product Positioning
- Pricing Strategy
- Promotional Strategy
- Website and Social Media
- Growth Strategy
- Business Start-Up Costs
- Financial Assumptions
- Cash Flow Year 1
- Cash Flow Year 2 – 5
- Income Statements Year 1 – 2
- Return On Investment