How to Start an Inflatable Bounce House Business

Part 1 - How to start an Inflatable Bounce House business - Background

Rarely do we attend an event, whether it be a birthday party or a fundraiser, where an inflatable bounce house isn’t present. In fact, it’s become so popular that children are hosting birthday parties centering around bounce houses and adults are including bounce houses in their adults-only parties, as well.

Bounce house businesses are generally set up in two different ways. Some people choose to rent bounce houses to customers for a party. Other bounce house businesses are set up to operate out of storefronts, where they fill the space with different inflatables and charge an entrance fee for children.

Our guide is in 3 parts:

• Part 1 - How to start a Bounce House business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening an inflatable bounce house business?

Opening an inflatable bounce house rental company requires very little overhead. Each bounce house averages approximately $1,500 in cost and $200 for shipping. Consider investing in at least one combo unit, which will cost you approximately $2,800. You’ll also need to budget for a reliable vehicle, large enough to deliver multiple bounce houses at a time, as well as a trailer, for busier delivery days.

For a storefront location, your costs will be significantly higher. You’ll need a large, open building and an architect to help properly plan the space. The building should be equipped with multiple different types of bounce houses, as well as small rooms for hosting birthday parties. Total investment for franchising opportunities indicate a budget of $166,000 to upwards of $250,000 to open an indoor bounce house establishment.

Once you’ve acquired your space, you can begin stocking your inventory:

• Multiple bounce houses of various sizes – $1,500 to $2,800 each

• Food and drink – tables, chairs, soda machines, kitchen equipment

• Party rooms – equipped with tables, chairs, and decorations

Regardless of which path you take, you’ll need the following items:

• Insurance policy – Speak with a trusted insurance professional, regarding the type of liability coverage your business requires.

• Marketing materials

• Website

What are the ongoing expenses for an inflatable bounce house business?

Again, these costs will vary depending upon how you decide to set up your business. Experienced storefront business owners recommend budgeting for the following items:

• Cleaning supplies

• Labor/payroll costs

• Energy costs

• Marketing

• General Liability insurance

• Business insurance

• Repair and replacement of damaged equipment

As a rental business, you’ll incur the above expenses as well as the following:

• Maintenance and repair of your vehicle

• Fuel

Regardless of which way you decide to structure your business, insurance and payroll costs will represent the largest portion of your budget.

Who is the target market?

While many adults are now hosting parties that include bounce houses, a majority of your business will cater to children who are having birthday parties, graduations, family reunions, other big life events. Churches, businesses, and fundraising events are also a great audience to target in your marketing efforts.

How does an inflatable bounce house business make money?

Inflatable bounce house rental companies generate revenue from each event they deliver a bounce house to. Storefronts charge an entry fee for each child and often host birthday parties for younger children for a group rate.

How much can you charge customers?

Prices vary by region and upon goods and services delivered. Regular inflatables average $125 for a four hour rental, toddler houses average $80 to $250, depending upon your needs, and combo bouncers average $250.

Admission to inflatable storefront locations is $7 to $10 per child, while private parties start at $250 for twenty children. Before setting your prices, research the average prices of similar businesses in the area.

How much profit can an inflatable bounce house business make?

Industry research indicates an average of 1.5 rentals per week, which comes out to $188 per week per bounce house. If you invest in 4 bounce houses, your business will draw in about $750 per week.

How can you make your business more profitable?

Consider some of the below strategies for maximizing your inflatable bounce house profits:

• Offer additional party services, such as slides, interactive games, dunk tanks, carnival attractions, face painting, tents, tables, chairs, sounds equipment, and concessions.

• Indoor establishments could include arcades, laser tag, food, and drinks.

• Indoor establishments can run special events, such as day camps, during summer, Spring break, and Christmas break.

Day-to-Day and Growth

What happens during a typical day at an inflatable bounce house business?

It’s a common misconception that your only role as an inflatable bounce house rental company is delivering bounce houses at the agreed upon time. There’s considerably more that goes into this business.

Your weekends will be filled with delivering and picking up bounce houses. During the week, your days will be filled with the following activities:

• Clean, sanitize, and maintain your inflatables.

• If it was a particularly wet weekend, you’ll need to dry out the inflatables to prevent mildew, mold, and odors.

• Repair damaged inflatables and ship ones out that you’re unable to repair yourself.

• Answering phone calls, scheduling reservations, and fielding questions.

• Invoicing and related paperwork.

• Marketing, networking, and administrative duties.

If your vision includes a storefront, you’ll also need to do the following:

• Work with vendors to ensure food and drinks arrive on time and your shelves are fully stocked.

• Oversee staff and ensure they’re properly trained.

• Schedule safety courses for staff.

What are some skills and experiences that will help you build a successful inflatable bounce house business?

Due to the significant growth potential, there are a number of individuals seeking business opportunities in this industry. Therefore, strong networking and marketing skills would prove beneficial. It’s important that you understand the demographic you’re catering to and invest in the type of inflatables that best meets their needs. Additionally, strong interpersonal skills, a love of children, and a dedication to the business are also critical to your company’s long-term success.

What is the growth potential for an inflatable bounce house business?

This industry has experienced significant growth over the last decade, with inflatables present at almost every event catering to children. While gaining popularity everywhere, areas with harsh weather offer the most growth potential for storefronts with inflatables. For those interested in significant long-term growth, franchising with well-known organizations such as Monkey Joe’s might offer the greatest potential.

What are some insider tips for jump starting an inflatable bounce house business?

Successful bounce house business owners offer the following advice:

• Draw up a contract for each customer, ensuring they understand you assume no liability for injury.

• Follow up with each client to ensure they had a positive experience with your company.

• Start out with two to four inflatable houses for your rental company.

• Consider investing in used inflatables to reduce start-up expenses.

• Think carefully before investing in bounce houses that include cartoon characters or other current trends. How long will these characters really be popular? The last thing you want is to be stuck with an unused or unpopular item after only one season.

• To save on initial costs, store inflatables in your garage or rent a small storage space.

• For storefronts, include other activities in addition to bounce houses, like arcade games, table hockey, etc.

• Require a deposit before when your client reserves an inflatable or birthday party room.

How and when to build a team

In this industry, your staff will have a significant impact on your business. For a storefront, you’ll need a fairly large team to ensure everything is safe and secure at all times. Since your guests will all be children, try to build a team of reliable teenagers. Your guests will relate to them better and are more apt to listen to their instructions.

For an inflatable rental business, your staff should include reliable and strong individuals. Each inflatable is heavy and awkward to set up. Customers often need advice regarding where it should be set up, accounting for Mother Nature and ensuring there’s enough space for everyone to safely bounce.

Part 2 - Is an Inflatable Bounce House business the right fit for you?

Part 3 - Action plan to launch your Inflatable Bounce House business in 90 days