Starting a bounce house rental business is exciting and rewarding. With demand growing for inflatable fun at events, there are many opportunities to earn a steady income. Bounce house rentals don't involve a lot of overhead, which means good profit margins.
This guide helps you understand what it costs to start a bounce house rental business. We'll outline start-up expenses and ongoing costs and provide tips for budgeting. Whether you're starting small or aiming big, knowing your expenses will help you secure the necessary funding for a successful launch.
Start-up costs refer to the one-time expenses necessary to establish your business before it starts generating revenue. These costs are critical to consider since they set the foundation for your company’s operations. Below, we’ll break down the key categories of start-up costs involved in launching a bounce house rental business.
Your main investment will be all about the bounce houses and the gear you need to make them work:
Bounce Houses: Bounce houses come in all sorts of models, sizes, and themes, like obstacle courses, slides, bouncy castles, etc. You can set them up as permanent attractions in inflatable parks or bring them out for special occasions like festivals, fairs, and private parties.
Each commercial-grade bouncer runs from $1,000 to $2,000, depending on the details, while an inflatable park setup with multiple parts might go for tens of thousands. For example, a 16x12ft (192ft²) bounce house with a blower costs around $1,400.
To keep things simple, budgeting about $10 per square foot is a good starting point, as there are endless models, sizes, and accessories to consider.
Blowers and Air Pumps: Every bounce house needs a blower to keep it puffed up during events. If you’re not getting an all-in-one package, remember to add blowers to your budget. They usually range from $100 to $300 each, based on their power and quality.
Tarps, Sandbags, and other accessories: Often, the basic packing, safety, and setup tools come with your bounce house. If not, plan to spend about $50 to $100 per unit for these extras.
You’ll need reliable transportation to deliver and pick up the bounce houses from event locations. A van or truck is essential for transporting bounce houses. You may already have a vehicle that can be used, but if not, expect to spend $10,000 to $20,000 on a used truck or van. If your vehicle isn’t large enough, you may need a trailer to haul multiple units. A trailer costs around $2,000, depending on the size and quality.
When your bounce houses aren’t in use, you’ll need a secure place to store them. Renting a small storage unit or warehouse space will cost between $100 to $500 per month, depending on the size and location.
To legally operate your business, you’ll need to secure licenses and insurance:
Effective marketing will help you attract customers and build a brand. The essential investments include:
Modern businesses rely on technology to streamline operations. You will quickly learn that time is your most precious resource, and you can never have enough of it. That's why efficient processes that save you time are extremely valuable — even if they do cost a little money.
It's highly recommended to seek expert guidance to ensure your business is set up correctly and protect you from legal claims.
You'll want to have a bit of cash set aside to cover your expenses until your business starts bringing in regular income. This means having funds ready for things like rent, utility bills, loan installments, etc., in those early months. It's usually a good idea to aim for a working capital of around $5,000 to $10,000.
If you have an office, you may need to invest at least in some furniture. A desk and chair for ergonomic office work, a shelf or drawer for document storage, some decor and plants for added comfort, and every office must-have: a coffee machine. Since you'll spend many hours in your office, it's worth investing a little in its comfort. Budget at least $1,000 for furniture and decoration, depending on the space.
If you have leased an office and warehouse space, you’ll also need to cover utilities. Setting up electricity, water, and internet may require deposits of $100 to $300. Then, expect to pay about $300 monthly in utility bills for a small office or warehouse. In addition to electricity, water, and internet, you might have to pay for heating, trash removal, a phone line, and security systems.
The table below lists each type of expense. In the example calculation, the company initially invests in three medium-sized (200ft²) bounce houses. Otherwise, the listed costs are fairly universal for any business. Many costs are highly dependent on the location of the company and other factors, such as size and quality, so this calculation is not completely accurate. However, we can conclude that it takes about $40,000 to start a small bounce house rental business.
Once your business is up and running, you’ll face ongoing operational costs that need to be budgeted for. These include:
Starting a bounce house rental business can be a profitable and enjoyable endeavor, but it’s important to fully understand the start-up costs involved to avoid surprises down the road.
Getting your bounce house rental business off the ground requires a fairly significant initial investment, but that's what entrepreneurship is. Financial risk and returns go hand in hand. Once the groundwork is done properly, you are guaranteed to make a return on your investment while creating a living for yourself.
And most importantly, growing your own business is guaranteed to be more rewarding than a draining office job.