Planning Guide for a Bounce House Rental Business

What is Your Target Market?

The best market for a new bounce house rental business will be home or park birthday parties. School and church carnivals, day-care and pre-school functions, store promotions, picnics and fairs are also a good area to target. You should determine how far you are willing to travel to make your deliveries. If you start with fewer inflatables you may be willing to travel greater distances. However, with more inflatables to deliver, the time involved in traveling limits the amount you will be able to accomplish.

What are Your Start-Up Costs and Other Expenses?

Start-Up costs will include business licenses, transportation, insurance, contract with liability waiver, business cards, website, advertising and your inflatables with the accessories needed for setting them up. Yearly costs include liability insurance, income taxes, business license renewal and equipment replacement if needed. Monthly costs are phone, advertising, website hosting and storage for your inflatables. Your garage can be used for storage if you have the space. Your weekly costs will include extra help if needed, fuel and cleaning supplies.

Who is Your Competition?

Search the internet and phone book to find your competition. What products and services do they offer? What is their delivery area and do they charge for delivery? How much are they charging for inflatable rentals? Knowing these things will benefit you in developing your business plan. Think of ways to make your business stand out from the competition. Maybe offer unique products or have a better level of customer service.

What are Your Rental Prices?

Setting your prices comparable to your competition will benefit you. It is better to add incentives or offer discounts than to drastically undercut the competition. The more people that undercut the more the prices will go down in your area. Offer discounts and sales from your prices. Everyone likes a discount. As your clientele grows and your business increases you will want those higher rental prices. It is always harder to raise prices than it is to lower them so start comparable.

Calculate Your Break Even Point.

You will need to factor in the number of available weeks for rentals. The bounce house rental business is a seasonal business. On average you will slow down in the winter months. Factor in these slower months as you do your calculations. Ask yourself, 'How many rentals do I need a month to cover my monthly expenses?'. 'How many additional rentals per month do I need to help pay down my start-up costs?'. When your income has reached a total equaling your start-up costs, and you have covered all your expenses up to that point, then you have reached your break even point. Let the profits begin!

Fine Tuning Your Plan.

Be sure to make your plan flexible so you may make adjustments. As your business grows portions your plan will need changes.