Note: This resource is for informational purposes only, and shall not be considered legal advice. 

How to start an Inflatable Business

Looking to ditch the boss, and break into the realm of an entrepreneur?  The inflatable business may be the perfect home business; the land of freedom and opportunity, but there are some very serious considerations to take into account before starting your bounce house business!  These considerations fall into six categories: operations, equipment, compliance, insurance, safety and advertising.

Operations

Don't quit your day job - you don't have to!  Bounce houses usually rent on weekends, so you can start your business in your spare time.  You don't have to quit your job and go full-speed ahead.  Just start with a small investment, and work in your spare time, building incrementally as demand for your products and services increase. 

For years I had a high-pressure corporate job with a fortune 50 behemoth.  The pay was huge, but the stress was extraordinary.  One of my co-workers was an anomaly - he never stressed about anything, and seemed happy with his job and life.  I never knew his secret until he quit out of the blue.  What was his secret?  He had been successfully investing in inflatables, and renting them out , making deliveries in the evenings and on the weekends. He had steadily built himself a business in the course of 12 months that exceeded his fortune 50 income in his spare time!   One of the main characteristics of an entrepreneur is risk, but this guy had taken very little risk, investing only his time and a few thousand dollars, and building a scalable business, that was only equivalent to the demand for his product in his area.  By the time he quit his job, he had quite a few bounce houses, but he had paid for them, and the return was huge.  All he paid out was gas and time, and he was raking in the cash.

Once your income from your business is acceptable to you, then consider becoming a full-time Bounce House entrepreneur.  What will you be doing?  Quite simply you'll be renting bounce houses to people throwing parties.  This usually entails delivering and picking up the bounce house,  setting up and anchoring the inflatable,  training and/or manning the inflatable during use, and cleaning the bounce house after use. 

So you'll need a vehicle big enough to deliver your inflatables (some people use trailers), as well as enough manpower to move inflatable that can range from 100 - 400 lbs.  You'll need bounce houses, and most likely a generator, since power is required, but not always available.  If you're renting water items, you'll need a constant source of water (a hose).  Most testing and governing bodies require you to follow all listed directions, as well as training your customers, so keep those handy as well.  Remember, safety and using instructions may seem like common sense to you, but when dealing with your patrons... well, you're dealing with children.

Keep in mind, the bounce house industry is seasonal.  You'll be renting to birthday parties, festivals, etc.  People like to party outdoors when the sun is out, so business will be strongest from around May (depending on your area and weather) until kids go back to school.  You may want to also consider additional "tag along" rentals like popcorn machines, margarita machines, chocolate fountains, and many other possibilities.  While you're at it, make friends with a clown, and rent him out too.  If they want it for their party, rent it to them!

In this industry, make sure you have important paperwork, such as a rental agreement and release of liability forms.  Dotting your "I's" and crossing your "T's" will keep you in business milking your cash cow!

Equipment

There are some very inexpensive inflatable bounce houses out there.  These are usually made from oxford cloth, and while they are excellent for home use, they are not suited for rentals.  In fact, they may be illegal to rent in some cases!  There are really only two major assets to your fledgling business: YOU and your EQUIPMENT.  YOU need to be honest and ethical, and your EQUIPMENT needs to be attractive, safe and durable.  Plan on spending around $1,000 - $2,000 for small inflatables suited for birthday parties, etc.  Larger amusement attractions will run $4,000 and more.  These will require more education, more insurance, and someone to monitor the safety and operation of the ride.  You might employ a high school student for the perfect high school job: weekends standing there making sure kids don't hurt themselves.

When evaluating your equipment, make sure to buy inflatables made of commercial grade PVC material.  This will keep your patrons happy and safe, and that small extra investment will pay off shortly, because the durability of these items will put money in your bank quickly, and continue to pay off for a long time.  Commercial grade bouncers are springier, as well, due to the nature of the materials used.  Bonus:  YOUR BOUNCER IS MORE FUN!

Compliance

Always check your state requirements.  You will need to follow laws pertaining to business ownership in general (ie business permits, sales tax laws...), as well as the rules of the industry.  You may be considered an "Amusement attraction owner/operator."  Each state has its own requirements, which you will need to investigate and comply with.   Currently, NJ and PA are the strictest.

Remember, following the rules protects you, as well as your clients.  You will be providing amusement attractions for children, so you must comply with safety and insurance regulations.  Also be aware that your competitors will be watching you.  If they find that you are not in compliance with codes and regulations, this may lead to fines or your business being closed down.  It's easy to take shortcuts, but these won't do you any good if you get closed down, or slapped with a lawsuit. Nobody likes a rat, but the owners of inflatable businesses need to protect the safety reputation of their industry, to keep demand high and insurance costs down.

Different states have different levels of certification and inspection standards, but currently only two states, Pennsylvania and New Jersey require inflatables to pass engineering and safety standards before allowing the equipment to be rented out.

Insurance

You may or may not find that your state requires insurance.  NO ONE will recommend you operate without insurance.  First, it is unethical to operate without insurance.  If a patron were to be injured on an uninsured attraction, 2 problems arise: first, the patron may not receive proper medical coverage.  Second, the business owner will likely be sued and shut down without protection from the insurance company.

Safety

Bounce houses are safe.  In fact, many believe bounce houses are safer than trampolines and jungle gyms, but again there are serious considerations.  Always use common sense practices, and ask your customers to do the same.   An adult should monitor play at all times, because injuries occur when kids don't play safely.  This is true of all play, not just inflatable play, but the difference is now you're liable because the kids are playing in equipment owned by you!  Bounce houses should never be used in the wind or rain.  In one case, 2 people were killed and 13 injured when an inflatable was carried off by a strong gust of wind (story).  In another case,  a girl died and 15 were injured.  Again the culprit was wind (story).  Needless to say, all inflatables should be anchored at all times!  And remember, the blowers are electric, so they should never be exposed to water.

Advertising

Yellow pages, and word of mouth!  These two should get your business up and running.  Also consider tagging all of your inflatables with a sign advertising your business, with your contact info.  Anyone driving by will automatically stare at a bounce house in a neighbor's yard, so take advantage of that opportunity to gain exposure!  If your bouncer isn't being used, take opportunities to donate it (for use) to little league events, etc., this can give you tax write offs, as well as ton's of exposure!  Just be creative, because people love inflatables!  Be safe and follow the rules and your job is easy.

Resources

Moonwalk Forum

One of the Internet's Top Resources for Inflatable Business Owners

Insurance

http://www.chaseagency.com/bouncyquote.asp?gclid=CPy-xdmo2o8CFShsGgodDHU09A

http://www.insurefun.com/?src=g

Organizations:

Association of Inflatable Rental Company Operators (AIRCO)(Link)
Largest trade group for companies who rent inflatable amusements.

Safe Inflatables Operators Training Organization (SIOTO) (Link)
Developed to fill a void in the training of operators of inflatable games.

Moonwalk Forum (Link)

PIPA(Link) (UK)
Voluntary manufacturer and reseller's organization, which has been endorsed by the government Health & Safety organisation. Despite government backing it is NOT compulsory for inflatables sold for hire purposes to be PIPA tested.
Hirers buying inflatables can ask for them to be "PIPA Tagged". This means the inflatable structure has been made to PIPA safety guidelines and has passed a PIPA test. If it passes a unique tag is put onto the inflatable specifying PIPA compliance.