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How to Start a Bounce House Business: Complete Startup Guide

by Backyard Marketplace on February 17, 2020

Kids love to play on bounce houses, don’t they?

The rising popularity of bounce houses and a wide variety of them already making space in the market show that people are profiting from running businesses that provide bounce houses!

So, it’s not surprising to find you here, wanting to know how to start a bounce house business.

We are thankful that you took out time to research about this business opportunity and realize its complete potential.

To help you out, we have created a quick guide that will provide you with all the relevant information you require to know before you set out to start your own bounce house business!

This guide will help you figure out all the right equipment required to run the business, which bounce house to buy, profit margin your bounce house rental business can enjoy, the process of market research, and lastly, ways to advertise your business online.

So, let’s cut to the chase and right into the content!

Getting the Right Equipment for the Business

To run a successful bounce house business, you will have to invest in employing the best equipment to serve your clients.

While doing that, you will also have to look out for unforeseen costs – to ensure you are profiting from the business.

Let’s answer a few questions that will help you figure that out.

Should I buy Commercial or Residential Bounce House for Business?

In the present market, it is quite obvious that Residential Bounce Houses come cheaper when compared to their Commercial counterparts.

Some of the most popular bounce houses for residence can be bought in a range of $500 - $700 while on the other hand, commercial bounce houses start selling at a whopping cost of $1500!

Therefore, it is not surprising to see new business owners getting tempted the Residential Bounce Houses. 

No matter how logical buying a residential bounce house may seem for your business, making a decision to buy one will always get you in trouble. 

Let’s understand why.

The difference in Build-Quality

Commercial bounce houses are built using materials that are stronger and can cope with the havoc wrecked by hundreds of children every weekend. Due to such strength, the commercial bounce houses tend to last as long as five years!

The difference in Manufacturer’s Warranty

Want to use a residential bounce house for commercial purposes? Well, be prepared to miss the chance of getting a manufacturer’s warranty.  Manufacturers are smart people and provide a minimum warranty of one year only if you buy commercial bounce houses.

Therefore, we highly recommend employing commercial bounce houses for your business. It will save you money and also a huge amount of trouble getting your bounce house fixed in the future.

What are the additional materials required for running a Bounce House Business?

Here are the additional items you will require to have a smooth functioning of your bounce houses:

  • Air blower
  • Power Extension Cable
  • Emergency Power Generator
  • Hand Truck
  • Cleaning Solutions and Sanitizers
  • Sand Bags
  • Stakes
  • Cones
  • Duct tape

Investment Cost and Profit Margins Involved

To give you a clear picture of how the projected expenses and annual profit margin will look like, here we have everything in a tabular form:

Build a Bounce House Business: Complete Startup Guide

Annual Expenses

Bounce House Purchased Rent Price/Day Total Annual Rentals Total Annual Income Bounce House Purchase Cost Insurance Costs Advertising Costs Annual Net Profit
1 unit $75 78 (1.5/week) $5,850 $1,895 $500 $500 $2,955
3 units $75 234 (4.5/week) $17,550 $5,685 $1,500 $1,000 $9,365
10 units $75 780 (15/week) $58,500 $18,950 $3,500 $3,000 $33,450

Interesting, isn’t it?

Well, now that we have talked about the great possibilities of making a profit from the business, let’s understand how can we take our bounce house business to the market and dominate. Before that take a look at our bounce house insurance guide. Because insurance is mandatory, and the right insurance will help you to survive your business if anything bad happens.

How to Research the Market for Bounce House Business?

To make your bounce house business a grand success, you will first have to find the right market.

You will want to start your bounce house business in a geographical location where the local market is underserved.

It’s majorly because having a low competition will allow you to conquer a large share of the market and establish your brand as an authority for bounce house rental services.

Firstly, you will want to know the number of bounce house rental services there are in the location you have picked. This can be easily done on a local search over the internet using Google or Yelp.

Once you have the list of all the businesses that can be your potential competitors, make sure you figure out the following:

  • Total number of businesses providing bounce house rental services
  • Price plans of all your competitors
  • Level of customer service and professionalism shown
  • Opportunity to advertise
  • Ideas you can use to beat the competition

There will be instances where you will find bounce house rental businesses that are offering more than just bounce houses. It is important to take a note of the extra services these businesses are providing.

You will want to know how competitive the prices are in the market; if will you be able to make a good profit of the location.

You will also want to consider looking at the professionalism of your competitors. Check out their social media profiles, websites, and Google My Business listings to have a sneak peek at that.

It is very important to know everything about the market you are going to enter. We highly recommend taking market research seriously as it will determine the course of action you will take to build your bounce house rental business and create your own space in the market.

How to Promote Your Bounce House Business?

Here are a few key ideas you should execute on to promote your business:

Build a Professional Website

We recommend building a professional website that is highly informative and reflects your personality. The website should be simple and have clear Call-to-Actions to help your customers navigate through it easily.

Leverage Social Media

Consumer attention has moved online. Your tech-savvy customers will definitely research about you before they make a purchasing decision. If they happen to be on social media, they’ll look for you on the social media networks. Therefore, it is important to invest in social media marketing as well.

Invest in Local SEO

Local SEO is important for helping people find your business easily on the Internet. Make sure you enlist your business on Google My Business and Yelp so that local customers can find you at the touch of a button.

Get Involved in the Community

Get professional and build all the important business collaterals like business cards and product brochures. Participate in local events and provide value to the people attending the events. Collaborate with local business owners and build trust in the market.

Over to You

A bounce house business is truly a great opportunity to build upon.

Since it is not a very complicated business model and provides adequate opportunities to make serious profits, we highly recommend you take on the challenge.

However, make sure you follow our guide and make all the right decisions before launching your business in the market.

Here we are at the end of this quick guide. We hope this piece of content brought great value to you.

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