Starting an Inflatable Business in the North-East

Party Rental and Inflatable businesses can be a very lucrative low cost business to start.

Many party rental businesses do the majority of their sales during a short period each year. The challenges faced by seasonal businesses are unique, especially in the Inflatable rental categories

It is particularly important to understand that these types of businesses often have to use a short burst of revenue to cover their liabilities for an entire year. Irregular cash flow patterns are a common problem faced by seasonal businesses. If most of your activity and revenue is concentrated in a short number of months, you may have difficulty organizing your finances so that you can meet those outgoings you face all year round – such as wages, rent and taxes.

If you are planning to start a new party rental business in the North East of the united states, here are a few pros and cons to consider:

Pros & Cons:

  • Rental RatesPro: Rental rates are usually 50% higher in the Northeastern states of the US. For Example, when comparing rental rates amongst different companies in different states you can almost immediately notice that rental rates in California will be a lot cheaper than rental rates in New York.
  • Rental VolumeCon: Rental volume can be great in the months of operation (Mar-Nov), however, there will be an inevitable decline of business during the cod months.
  • Competition - Pro: many people will think twice about starting a business once they learn they have to shut down the operation for 3 or 4 months. This actually gives you an advantage because you will have a better chance of positioning your company and achieve popularity faster.

Before starting and inflatable rentals business, 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.