How to Start a Bounce House Business

Bounce houses have gained popularity due to their appeal to children and the entertainment value they bring to events. The excitement, vibrant colors, and varieties of bounce houses make them a hit among children. If you want to be part of creating this happiness at special events, read on for a guide on how to start a bounce house business.

Why Start an Inflatable Bounce House Business?

The popularity of bounce houses, combined with high demand, relatively low startup costs, and potentially good profits, makes starting an inflatable bounce house business an appealing option for many entrepreneurs.

Starting a Bounce House Business: A Step-by-Step Guide

Before you can bring inflatable bounce house fun to the masses, you need to learn how to start a business. Here are some tips to help you plan your new venture.

Research the Inflatable Rental Business Market

Identify the demand and customer base for an inflatable bounce house business in the local area. Research competitors, target demographics, and pricing strategies to understand the market dynamics.

Planning and Budgeting for Your Bounce House Business

Develop a business plan for the bounce house business, outlining the business structure, operations plan, marketing strategy, and financial projections. Allocate the budget for purchasing bounce houses, insurance, marketing, and other operational costs.

Choosing the Right Bounce Houses

Select bounce houses based on quality, design, size, and safety. Consider purchasing houses that cater to different age groups and event types, depending on the demographic of your bounce house business. As your bounce house business grows, you’ll be able to get more specific about the needs of your customer base.

Legalities and Regulations in the Party Supply Rental Industry

Obtain the necessary licenses and permits for your bounce house business. Comply with local zoning laws and safety regulations to avoid legal complications.

The legal requirements and regulations for a bounce house business can be extensive and may vary depending on the country, state, and municipality in which you operate. Here are some of the key legal requirements and considerations:

Business Structure

Decide on a legal structure for your business. Common business structures include sole proprietorship, partnership, LLC, or corporation. Each structure has different legal, tax, and financial implications. Many bounce house businesses start as limited liability companies.

Business License and Permits

Bounce house companies need to obtain a business license from your local municipality or county. Additionally, secure any required permits for commercial bounce houses, such as a sales tax permit or health department permit if you also provide food.

Zoning Laws

Ensure that the location where you operate complies with local zoning laws, especially if you plan to operate the business from your home or have a physical location like a warehouse for storage of inflatable bounce houses.

Safety Regulations

Comply with safety standards and regulations to ensure the bounce houses are safe for use. This could include following manufacturer guidelines for setup and maintenance and adhering to any local or state regulations related to amusement rides or inflatable play equipment.

Inspections and Certifications

Some states or local jurisdictions might mandate regular inspections of your equipment and could have particular certification requirements for operating inflatable amusement devices.

Insurance

Carry sufficient insurance to cover potential liabilities, including general liability insurance, property insurance, and workers’ compensation insurance if you have employees.

Employee Regulations

If you hire employees, comply with employment laws, including wage and hour laws, anti-discrimination laws, and occupational safety and health regulations.

Tax Compliance

Register for tax identification numbers and ensure compliance with all relevant local, state, and federal tax laws, including income tax, sales tax, and employment taxes.

Waivers and Contracts

Develop waivers to limit liability and create clear, enforceable contracts outlining the terms and conditions of your services, including rental agreements with clients.

Trademark and Intellectual Property

If you plan to use specific brand names, logos, or themes, make sure you have the legal right to do so. Additionally, think about safeguarding your own brand names and logos by registering them as trademarks.

Environmental Regulations

Make sure to comply with applicable environmental laws and regulations, especially if your operations may have an environmental impact, such as noise or waste disposal.

State Specific Regulations

Check with your state’s Department of Labor or equivalent agency for additional requirements or regulations for operating a bounce house business.

Bounce House Business Insurance

There are several types of small business insurance you may need to protect your bounce house venture:

• General Liability Insurance
• Property Insurance
• Workers Compensation Insurance
• Commercial Vehicle Insurance
• BOP Insurance, also known as a Business Owners Policy – You can often save money by bundling general liability and commercial vehicle insurance.

Marketing and Promotion Strategies

So, what is marketing for a bounce house business? Here are several strategies to consider.

Leveraging Social Media

Social Media Presence: Leverage platforms such as Facebook, Instagram, and Twitter to expand your reach, share promotional materials, and interact with potential customers.

Building a Website for Your Bounce House Business

Create a professional and easy-to-navigate website that highlights your services, pricing, contact details, and customer testimonials. Check out our website startup guide to discover additional elements to incorporate.

Operational Tips for Success in Bounce House Rentals

Maintenance and Safety of The Bounce Houses

Anytime a business rents equipment of any sort, whether it’s scaffolding or bouncy houses, the equipment needs to be checked when it is picked up and again before it is re-rented. With an inflatable bounce house, you’ll be looking for any signs of wear and tear and checking for leaks.

Set Your Prices

Calculate the costs of bounce houses, transportation, and other expenses and set pricing accordingly to ensure a return on investment.

Customer Service Best Practices

A few days out from the rental, touch base with the customer to confirm the time. At delivery, you or your employee should stay on site until the bounce house is up and ready for use.

Set a policy for options to take in case of inclement weather.

How Profitable is a Bounce House Rental Business?

Let’s do an example based on cost and profit with one small bounce house:

The cost to rent a small bounce house can vary widely depending on your location, the specific bounce house model, and the rental duration. However, here’s a general idea of the rental costs you might expect:

Cost to Rent a Small Bounce House

• Hourly Rental: Some companies offer hourly rentals, typically ranging from $70 to $100 per hour.
• Daily Rental: Most companies prefer to rent out bounce houses on a daily basis, and prices can range from $100 to $250 per day for a small, basic bounce house.
• Weekend Rental: If you are renting for an entire weekend, costs could vary from $200 to $500, depending on the model and any extra services offered.

Additional Costs:

• Delivery and Setup Fee: Many companies charge an additional fee for delivering, setting up, and taking down the bounce house, which can range from $20 to $50 or more, depending on distance and complexity.
• Cleaning Fee: Certain companies might impose a cleaning fee if the bounce house is returned dirty.
• Damage Deposit: You may be required to pay a refundable damage deposit upfront, which can be around $50 to $100 or more.
• Additional Services: Costs can also vary if additional services or equipment are included, such as attendants, generators, or extension cords.

Considerations:

• Discounts: Some companies might offer discounts for multiple rentals or for renting for multiple days.
• Package Deals: You might get a better deal by renting a package that includes other party equipment or supplies along with the bounce house.
• Advanced Booking: Prices can also be influenced by how far in advance you book and the availability of the bounce houses, with potential price increases during peak season.

Initial Investment vs. Potential Returns

Calculate the costs of bounce houses, transportation, and other expenses and set pricing accordingly to ensure a return on investment.

Don’t overlook your marketing expenses and include both delivery and pickup in the transportation costs.

Operational Costs and Overhead

Factor in maintenance, staffing, fuel, and marketing costs. Don’t overlook any storage costs. If you add employees, factor in their salaries and insurance.

Set Your Prices

Calculate the costs of bounce houses, transportation, and other expenses and set pricing accordingly to ensure a return on investment.

Scaling and Expanding the Business

Initially, focus on the local market and gradually expand the service area or add more bounce houses to the inventory as the demand grows.

In addition to adding more bounce houses, you can add services such as party decorating. You can partner with related businesses, such as bakeries and caterers, to offer customers a package deal.

Of course, the more services you add, the more responsibilities you’ll have.

Factors Affecting Profitability

Seasonality, competition, operating costs, economic downturns, and market demand can all impact profitability.

Specializations in The Commercial Bounce House Business

Choosing a specialty should be part of your business startup checklist in the bounce house industry. Here are some options to consider:

• Birthday Parties: Bounce houses tailored for personal birthday celebrations, often featuring designs that are either universally appealing or themed for specific interests.
• Obstacle Courses: Larger structures featuring a series of obstacles for children to navigate, often used for competitive activities. Inflatable obstacle courses are rapidly growing in popularity in the bouncy house business.
• Themed Houses: Houses designed around specific themes, like movies or characters, catering to fans of those themes.
• Seasonal and Holiday Houses: Designs and themes that align with specific seasons or holidays, such as Halloween or Christmas.
• Corporate and Community Events: Bigger setups intended for corporate functions or community celebrations, typically offering a range of options to accommodate a broader audience.
• Weddings: Elegant designs aimed at entertaining children at wedding celebrations.
• Collaboration with Other Party Businesses: Partnerships with catering, event planning, or other party rental business service providers to offer comprehensive party packages. For example, you can partner with a tent rental business or caterer/baker.

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FAQs: How to Start a Bounce House Business

How long does a commercial inflatable bounce house last?

A bounce house can last several years in the rental industry, depending on usage, maintenance, and quality.

How much does an inflatable bounce house cost in the US?

The cost can range from $1,500 to over $5,000, depending on size, design, and features. Most entrepreneurs start the inflatable bounce house business with one bounce house and add more as the business grows and the type of customer base becomes clear.

How much electricity does an inflatable bounce house use?

A standard bounce house blower uses around 7 to 14 amps of electricity, equating to roughly 0.84 to 1.68 kWh for an hour of operation.

Image: Envato Elements

This article, "How to Start a Bounce House Business" was first published on Small Business Trends