Table of Content

    Bounce house business plan for starting your own business

    If you are thinking to have a business that is orientated towards children, a bounce house business is something that you must consider. An indoor bounce house business plan is lucrative for areas with lots of children and fewer playgrounds, and one of the easiest ways for parents to get their children active while being indoors.

    Wondering how to start a bounce house business? Setting up a venture from scratch can be daunting and confusing. Here is a rental business plan for a company called “Go Inflatables.” Go Inflatables provides indoor bounce houses services on rent, and its business plan can provide you guidance on how to set up yours. It is the perfect guide if you are trying to set up a space that has to do anything with children, such as business for a babysitting business. Another example of such a business is to start a baby clothes business.

    Executive Summary

    2.1 The Business

    Go Inflatables is a start-up that provides indoor bounce house facilities, owned by Danial Humphrey. The business aims to provide services ranging from renting out spaces to setting up a bounce house, offering daycare facilities, and helping with starting a summer camp business. Go inflatables will be offering its services in Houston, Texas.

    Start your Business Plan Now

    Start My Business Plan

    2.2 Management of bounce house

    To establish a successful bounce house business startup, it is essential that all aspects of your business are looked after. It is important that you have a comprehensive bounce house rental business plan, as it would require you to consider financial, technical (including the safety precautions for kids), and available human capital aspects of the start-up.

    As professional business plan writers, here we are providing all the relevant details of Go Inflatables to assist you in devising a plan for your startup.

    2.3 Customers of bounce house

    Provided that opening a bounce house business will cater to customers of various types, our main customer groups will include:

    • Families with Children
    • Young Adults
    • Educational Facilities
    • Working Parents

    Go inflatables has a daycare business plan, which emphasizes the fact that the potential customers of bounce houses are children aged between 5-13 years. Having said that, while proposing a business plan indoor playground, it becomes more of a necessity to arrange for precautionary measures for children who play on the indoor bounce house.

    2.4 Business Target

    While setting up a inflatable bounce house business plan, we must define our business targets. The objective is to promote a healthy lifestyle amongst the younger generation while having fun at the bounce house. Safety is our utmost priority so that every child can have fun without compromising on their health.

    Bounce House Business Plan-3 Years Profit Forecast

    Franchise Business Plan
    Helps the franchisee get business case approval from the franchisor

    Company Summary

    3.1 Company Owner

    Danial Humphrey will be the owner of Go Inflatables. He graduated from the University of Houston in 2017, with an MBA degree. Later, Danial worked with numerous childcare facilities, through which he realized that there is a need for an indoor bounce house facility. As a result of his experiences, he learned how to run a bounce house business and started Go Inflatables in 2020.

    3.2 Why the bounce house is being started

    While taking up managerial roles in different start-ups, Danial realized that the existing childcare services failed to utilize indoor spaces properly. Therefore, he came up with the concept of indoor bounce houses where children could engage in multiple activities which help them remain active.

    3.3 How the bounce house will be started

    Step1: Plan Everything

    The key to a successful business is to efficiently plan everything beforehand, with proper contingency plans. If you are looking forward to having a Bounce House Business, here we provide a comprehensive childcare center business plan that was used by Danial Humphrey. It would help you understand how to start a bounce house business. Danial decided to offer both, renal bounce house facilities and childcare facilities while the parents are away for work.

    Step2: Define the Brand

    Once you answer the question how to open a bounce house business? the next thing you need to do is to define your brand. Provided that it is not easy to start a bounce house, it is crucial that you define your brands’ values and position it in the market accordingly. It will help you gain a competitive edge over other bounce house rental companies in the market. For instance, Go Inflatables values were set around a child-centered approach, and their unique selling point was that it also provided childcare facilities while renting out bounce houses. Similarly, you could devise your policies accordingly and attract customers.

    Step3: Establish Your Corporate Office

    To start the business, Daniel decided to rent out a space in a well-known commercial center of the city.

    Step4: Establish a Web Presence

    To order to make your indoor bounce house business plan a success, your business must have an online presence. Go Inflatables will make its own website for which it will put up Ads on Instagram and Facebook.

    Step5: Promote and Market

    Once you are all set to take your services to the market, your focus should shift towards devising effective marketing strategies so that the product reaches your targeted customer. When Danial Humphery thought of starting a bounce house rental company, he focused on having introductory pricing for the services, which were lower than his competitors to attract customers, and had designated a decent amount of budget towards advertising so that there’s an increase its market share.

    Bounce House Business Plan-Startup Cost

    Start-up Expenses  
    Legal $201,100
    Consultants $0
    Insurance $23,000
    Rent $35,000
    Research and Development $10,000
    Expensed Equipment $56,000
    Signs $3,400
    TOTAL START-UP EXPENSES $328,500
    Start-up Assets $266,000
    Cash Required $209,000
    Start-up Inventory $39,000
    Other Current Assets $240,000
    Long-term Assets $287,000
    TOTAL ASSETS $1,041,000
    Total Requirements $1,369,500
    START-UP FUNDING
    Start-up Expenses to Fund $328,500
    Start-up Assets to Fund $1,041,000
    TOTAL FUNDING REQUIRED $1,369,500
    Assets
    Non-cash Assets from Start-up $1,346,000
    Cash Requirements from Start-up $162,000
    Additional Cash Raised $50,000
    Cash Balance on Starting Date $35,000
    TOTAL ASSETS $1,593,000
    Liabilities and Capital
    Liabilities $18,000
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $58,000
    Other Current Liabilities (interest-free) $0
    TOTAL LIABILITIES $76,000
    Capital
    Planned Investment $1,369,500
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    TOTAL PLANNED INVESTMENT $1,369,500
    Loss at Start-up (Start-up Expenses) $147,500
    TOTAL CAPITAL $1,517,000
    TOTAL CAPITAL AND LIABILITIES $1,593,000
    Total Funding $1,369,500

    Any questions? Get in Touch!

    Services of bounce house

    Before setting up your business, you need to be clear about the services your bounce house start-up would provide. All of the services that you offer will be reflected in your indoor bounce house business plan. We realise that starting a bounce house rental business can be confusing. Hence, you can use the Go Inflatables business plan template for reference it offers multiple services, such as:

    • Bounce House Rentals

    Go inflatables will provide renting services of two types: 24-hour rental services and 12-hour rental services for all of its customers.

    • Childcare services

    In addition to basic bounce house services, Go Inflatables will also provide Day-Care services at Commercial Bounce Houses and Bounce Houses with slides, etc for activities.

    • Event Management

    The customers of Go Inflatables can book bounce houses and its other services for events such as Birthdays, Themed Parties, and Christmas.

    Once you figure out how to start your own bounce house business, you will realize how diverse the inflatable bounce house business is. Danial Humphrey’s Go inflatable business plan acts as an ideal guide for your bouncy castle business plan.

    Marketing Analysis of bounce house

    Market Analysis is the first and the most important step in the development of a marketing plan. Effective market analysis provides an overview of the competitors operating in the market, which would help you identify the unique selling point (USP) of your product. For instance, you can get an insight into how other bounce house companies are operating, and what else can you offer to attract customers.

    Valentin Marinov
    TrustPilot

    excellent work

    excellent work, competent advice.
    Alex is very friendly, great communication.
    100% I recommend CGS capital.
    Thank you so much for your hard work!

    ∙ Valentin Marinov

    If you are unsure about how to conduct a market analysis, you can refer to this indoor bounce house business plan, where we have conducted a market analysis for the market trends and target customers of Go Inflatables.

    5.1 Market Trends

    According to ProfitableVentures,  bounce house businesses make an average of $231,000 and above annually in the United States. The Family Entertainment and Recreation Facility industry has indeed benefited from recent marketing campaigns which are targeted towards encouraging people to participate in recreation activities and sports, as well as consumer trends toward healthy living.

    5.2 Marketing Segmentation

    The most prominent customer groups of Go Inflatables will include:

    Bounce House Business Plan-Marketing Segmentation

    Business Plan for Investors

    5.2.1 Families with Children

    Our primary customers will be the families living around our shop. They are expected to avail our services most regularly for general purpose as well for events like birthday parties and hangouts etc.

    5.2.2 Teens

    Our second target customers will be teens between the ages of 15-20. They are expected to utilize our services mainly for parties and other such events.

    5.2.3 Educational Facilities

    This will be our third group of main customer base. Since schools hold events such as parties and game competitions, they are expected to regularly obtain our services.

    5.2.4 Working Parents

    As Go Inflatables provides child-care services, therefore, working parents are expected to make use of our services quite often as well to make sure that their children are well taken care of.

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

    Market Analysis
    Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Families 32% 34,500 41,400 49,680 59,616 71,539 10.00%
    Teens 22% 22,500 27,000 32,400 38,880 46,656 10.00%
    Educational Facilities 25% 21,700 26,040 31,248 37,498 44,997 10.00%
    Working Parents 21% 19,000 22,800 27,360 32,832 39,398 11.00%
    Total 100% 97,700 117,240 140,688 168,826 202,591 10%

     

    5.3 Business Target

    The business targets of Go Inflatables are as follows:

    • To acquire at least 20% market share by the end of the second year
    • To expand our offerings to the outskirts of the city
    • To achieve and maintain a CSAT score above 95%

    5.4 Product Pricing

    To devise the pricing strategy for your indoor inflatable business plan, you may refer to the product pricing of Go Inflatables.

    Our pricing system will be based on what is achievable in the industry. We don’t intend to charge higher (except for premium and customized services) and we don’t intend to charge less than what our competitors are charging in Houston.

    Marketing Strategy of bounce house

    To remain competitive in the bounce house rental business, it is important to have a well-defined market strategy, so that your brand’s positioning is done correctly and hence, a strong client base is established.

    While Go Inflatables was evaluating how to build a bounce house, it was integral that they devise a realistic marketing and sales strategy. Here we have provided Go Inflatables indoor rental business plan which you can use as a reference for setting up a bounce house.

    6.1 Competitive Analysis

    Our unique selling proposition is that:

    • We are well-positioned
    • People can easily access our facility
    • Our prices are affordable
    • We have a different package for families, schools, and religious organizations.

    6.2 Sales Strategy

    Part of the marketing and sales strategies that we will adopt are:

    • Open our bounce house and recreation facility with a big party for children
    • Advertise our bounce house and recreation facility on national TV, local TV stations, and local radio station
    • Promote our bounce house and recreation facility online via our official website and all available social media platforms

    6.3 Sales Monthly

    Bounce House Business Plan-Sales Monthly

    6.4 Sales Yearly

    Bounce House Business Plan-Sales Yearly

    6.5 Sales Forecast

    Bounce House Business-Unit Sales

    Personnel plan of bounce house

    When Dan Humphery was figuring out how to start a bounce house company, he realized that it is a business that is very labor intensive. As per this  bounce house business plan template, you can evaluate the human resource needs for your business.

    Any questions? Get in Touch

    7.1 Company Staff

    • Facility Manager
    • 1 Technician to set up generators
    • 5 Bouncy Castles Safety Instructors / Assistants
    • 1 Accounts Officer
    • 3 Cleaners
    • 1 Web Manager
    • 1 Bus Driver

    7.2 Average Salary of Employees

     Personnel Plan      
    Year 1 Year 2 Year 3
    Facility Manager $60,000 $66,000 $72,600
    Technician $42,000 $46,200 $50,820
    Safety Instructors $182,000 $200,200 $220,220
    Accounts Officer $30,000 $33,000 $36,300
    Cleaners $50,000 $55,000 $60,500
    Web Manager $15,000 $16,500 $18,150
    Bus Driver $15,000 $16,500 $18,150
    Total Salaries $394,000 $433,400 $476,740

     

    Financial Plan of bounce house

    While setting up a business, it is quite natural to think how much does bounce house business make? You can get an idea for this by developing a financial plan that will guide you in efficiently managing the expenses of your business. It will also ensure that you are not losing more money than you are making and you don’t end up as a jump house business for sale.

    8.1 Important Assumptions

     General Assumptions      
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 8.12% 8.20% 8.26%
    Long-term Interest Rate 8.40% 8.44% 8.47%
    Tax Rate 24.03% 24.21% 24.60%
    Other 0 0 0

     

    8.2 Break-even Analysis

    Bounce House Business Plan-Break-even Analysis

     Break-Even Analysis  
    Monthly Units Break-even 5340
    Monthly Revenue Break-even $132,500
    Assumptions:
    Average Per-Unit Revenue $231.00
    Average Per-Unit Variable Cost $0.62
    Estimated Monthly Fixed Cost $163,800

     

    8.3 Projected Profit and Loss

     Pro Forma Profit And Loss    
    Year 1 Year 2 Year 3
    Sales $972,000 $1,121,395 $1,378,868
    Direct Cost of Sales $365,000 $390,610 $434,749
    Other $0 $0 $0
    TOTAL COST OF SALES $365,000 $390,610 $434,749
    Gross Margin $607,000 $730,785 $944,119
    Gross Margin % 62.45% 65.17% 68.47%
    Expenses
    Payroll $394,000 $433,400 $476,740
    Sales and Marketing and Other Expenses $145,000 $148,000 $156,000
    Depreciation $2,300 $2,350 $2,500
    Leased Equipment $0 $0 $0
    Utilities $2,900 $3,000 $3,100
    Insurance $2,100 $2,100 $2,100
    Rent $2,900 $3,000 $3,200
    Payroll Taxes $24,000 $25,000 $27,000
    Other $0 $0 $0
    Total Operating Expenses $573,200 $616,850 $670,640
    Profit Before Interest and Taxes $33,800 $113,935 $273,479
    EBITDA $33,800 $113,935 $273,479
    Interest Expense $0 $0 $0
    Taxes Incurred $6,760 $22,787 $54,696
    Net Profit $27,040 $91,148 $218,783
    Net Profit/Sales 2.78% 8.13% 15.87%
    Any questions? Get in Touch

    8.3.1 Profit Monthly

    Bounce House Business Plan-Profit Monthly

    8.3.2 Profit Yearly

    Bounce House Business Plan-Profit Yearly

    8.3.3 Gross Margin Monthly

    Bounce House Business Plan-Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Bounce House Business Plan-Gross Margin Yearly

    8.4 Projected Cash Flow

    Bounce House Business Plan-Projected Cash Flow

     Pro Forma Cash Flow      
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $51,000 $55,080 $59,486
    Cash from Receivables $22,000 $23,760 $25,661
    SUBTOTAL CASH FROM OPERATIONS $73,000 $79,570 $85,936
    Additional Cash Received
    Sales Tax, VAT, HST/GST Received $0 $0 $0
    New Current Borrowing $0 $0 $0
    New Other Liabilities (interest-free) $0 $0 $0
    New Long-term Liabilities $0 $0 $0
    Sales of Other Current Assets $0 $0 $0
    Sales of Long-term Assets $0 $0 $0
    New Investment Received $0 $0 $0
    SUBTOTAL CASH RECEIVED $74,000 $79,000 $85,000
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending $42,000 $42,000 $45,000
    Bill Payments $27,000 $28,000 $31,000
    SUBTOTAL SPENT ON OPERATIONS $69,000 $70,000 $76,000
    Additional Cash Spent
    Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
    Principal Repayment of Current Borrowing $0 $0 $0
    Other Liabilities Principal Repayment $0 $0 $0
    Long-term Liabilities Principal Repayment $0 $0 $0
    Purchase Other Current Assets $0 $0 $0
    Purchase Long-term Assets $0 $0 $0
    Dividends $0 $0 $0
    SUBTOTAL CASH SPENT $69,000 $74,520 $80,482
    Net Cash Flow $21,000 $23,000 $25,000
    Cash Balance $27,000 $30,000 $33,000

     

    8.5 Projected Balance Sheet

     Pro Forma Balance Sheet    
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $275,000 $308,000 $338,800
    Accounts Receivable $24,000 $26,880 $30,213
    Inventory $4,300 $4,816 $4,900
    Other Current Assets $1,000 $1,000 $1,000
    TOTAL CURRENT ASSETS $282,000 $315,840 $355,004
    Long-term Assets
    Long-term Assets $10,000 $10,000 $10,000
    Accumulated Depreciation $19,400 $21,728 $24,444
    TOTAL LONG-TERM ASSETS $24,400 $27,328 $30,744
    TOTAL ASSETS $294,000 $329,280 $370,440
    Liabilities and Capital Year 4 Year 5 Year 6
    Current Liabilities
    Accounts Payable $18,700 $20,944 $23,541
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $19,000 $21,280 $23,919
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $15,000 $16,800 $18,883
    Paid-in Capital $30,000 $30,000 $31,000
    Retained Earnings $53,000 $57,770 $63,547
    Earnings $193,400 $210,806 $231,887
    TOTAL CAPITAL $285,000 $310,650 $341,715
    TOTAL LIABILITIES AND CAPITAL $300,000 $329,280 $370,440
    Net Worth $293,400 $319,806 $351,787

     

    8.6 Business Ratios

     Ratio Analysis        
    Year 1 Year 2 Year 3 INDUSTRY PROFILE
    Sales Growth 7.25% 8.03% 8.90% 3.00%
    Percent of Total Assets
    Accounts Receivable 9.21% 10.20% 11.31% 9.80%
    Inventory 5.39% 5.97% 6.62% 9.90%
    Other Current Assets 2.11% 2.34% 2.59% 2.40%
    Total Current Assets 149.80% 151.00% 152.00% 158.00%
    Long-term Assets 11.55% 11.60% 11.64% 12.00%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.90% 4.94% 4.98% 4.34%
    Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
    Total Liabilities 7.59% 7.65% 7.72% 7.38%
    NET WORTH 100.45% 101.25% 102.19% 110.00%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 94.60% 97.15% 99.87% 99.00%
    Selling, General & Administrative Expenses 93.56% 96.09% 98.78% 97.80%
    Advertising Expenses 1.52% 1.56% 1.60% 1.40%
    Profit Before Interest and Taxes 41.50% 42.62% 43.81% 33.90%
    Main Ratios
    Current 34 35 36 32
    Quick 33 33.8 34.645 33
    Total Debt to Total Assets 0.18% 0.18% 0.17% 0.40%
    Pre-tax Return on Net Worth 74.08% 74.89% 75.00% 75.00%
    Pre-tax Return on Assets 96.30% 101.12% 106.17% 111.30%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 33.56% 34.60% 35.67% N.A.
    Return on Equity 55.80% 57.53% 59.31% N.A.
    Activity Ratios
    Accounts Receivable Turnover 7.7 7.8 7.8 N.A.
    Collection Days 100 100 100 N.A.
    Inventory Turnover 32.4 34.02 35 N.A.
    Accounts Payable Turnover 15.6 16 16.3 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 2.5 2.5 2.6 N.A.
    Debt Ratios
    Debt to Net Worth -0.04 -0.03 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $244,000 $257,664 $272,093 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.85 0.87 0.89 N.A.
    Current Debt/Total Assets 1% 0% 0% N.A.
    Acid Test 29 29.12 29.16 N.A.
    Sales/Net Worth 2.1 2.2 2.2 N.A.
    Dividend Payout 0 0 0 N.A.

    FAQ

    1. Is a bouncy castle business profitable?

    If you are wondering is a bounce house business profitable?, you should be assured that it is. However, you should wait for a year after starting a bounce house business to have a clearer idea of what profits to expect in the future.

    1. How much does it cost to run a bouncy castle?

    The costs of running a bouncy castle depend on many variable factors such as area of business, competitor rates and scale of services, etc. You can gain more insight into this through the business plan above.

    1. Is jumping castles a good business?

    Yes, this industry has experienced significant growth over the last decade, with inflatables present at almost every event catering to children.

    1. How do I start a jumping castle business?

    You can refer to this bounce house business plan for Go Inflatables. It gives an overview of what needs to be put together to write your own bouncy castle business plan and make your business a success

    Download IT Consulting Business Plan Sample in pdf