During the summer time you can’t ride anywhere without seeing an inflatable bounce house (also called moonwalks) setup in someone’s yard. Kids love them, and they provide a great and easy way to keep kids occupied during picnics, family reunions, or even for a kid’s birthday party. Two people can easily setup them up, and then take them down after the party is over. Not only are they easy to handle, but they are big money makers.
How they produce passive income: Moonwalks are typically rented for about $150.00 per hour, and $25.00 per hour after the first. They cost about $4,000.00 each, so they pay for themselves with just a few rentals. You pay employees to setup and take down the moonwalks, and you’ll also pay someone to answer phone calls and make appointments. Your employees will do most of the work and you’ll get most of the profits.
How to create this asset: Before starting a moonwalk business, lots of research needs to be completed. There are different rules and regulations in each state about how a moonwalk business can be operated. Some states require someone to operate the moonwalk during the rental, and others don’t. Here are some items that should be researched before starting a moonwalk rental business:
Where am I going to buy the moonwalks? – Would it be better to buy used moonwalks off of Ebay.com, or buy brand-spanking new ones from a respected manufacturer?
How am I going to pay for the moonwalks? – Do you plan to finance the moonwalks yourself, or seek financing from a bank or local investors?
Who is the target market? – Find out what the most common type of people who will be using your business. A target market could be stay-at-home moms with an average annual household income of $70,000.00 or less and are planning a birthday for her child.
Who is the competition? – Is the moonwalk rental business saturated where you live? States like California and Florida contain many well-established moonwalk companies, and it may be hard to compete. Other states like Delaware and New York don’t have much competition in the moonwalk rental business.
What should I charge? – A typical strategy to win over the competition is to find out what they are charging, and charge less. Would it be easier to charge a one-time rental fee for the day, or charge a rental fee per hour?
Do I need to have insurance? – Some states do not require having insurance for moonwalks. However, there is always a risk of lawsuits because children can get hurt inside of moonwalks. It’s best to purchase liability insurance for your own protection.
How many employees would I need? – A business that has three moonwalks can be operated just by yourself and one other person. The more moonwalks that are owned, the more employees are needed.
After doing all of the necessary research, A few different forms need to be created to legally protect yourself and your business. A link to examples of those types of forms is provided in the “For more information” part of this section. Also, it is wise to contact a lawyer before opening for business, just to make sure all of the necessary legal precautions are in place.
After purchasing your moonwalks, practicing how to set them up and take them down, it is time to open for business. Advertising with mail out fliers and in local newspapers is very effective.
