How to Start a Balloon Decorating Business (with Checklist)

Here are the most important aspects of starting your balloon business:

1. Location — Choose a location near shopping centers, busy streets, party venues, or event spaces to attract more customers.
2. Niche — Think about your niche market and increase profitability by choosing one of many options such as eco-friendly balloons, custom-printed balloons, educational workshops, seasonal or thematic balloons, etc.
3. Supplies — You will need different types of balloons like latex, foil, or specialty ones. Also, consider investing in helium tanks, electric air inflators, and balloon accessories such as ribbons, weights, and adhesives.
4. Creative staff — Hire balloon artists and decorators with experience.
5. Legal business aspects — Register for taxes, open a business bank account, and get an EIN.
6. Online store — Take your balloon business online, showcase your products on the website, and consider balloon delivery and online ordering.
7. Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
8. Learn from real entrepreneurs who started a balloon decorating business.

How Golden Balloons NYC Thrives in the Event Decoration Industry

Step 1: Decide if the Business Is Right for You

Pros and Cons

Starting a balloon business has pros and cons to consider before deciding if it’s right for you. 

Balloon Industry Trends

Industry Size and Growth

• Industry size and past growth — The global party balloons market was worth $1,482.8 million in 2021.
• Growth forecast — The global party balloons market is projected to grow by 4.8% annually through 2028 and reach more than $1,964.4 million.((https://www.globenewswire.com/en/news-release/2022/08/04/2492688/0/en/At-4-8-CAGR-Global-Party-Balloon-Market-Size-Share-to-Hit-USD-1-964-4-Million-by-2028-Comprehensive-Research-Industry-Trends-Demand-Forecast-Report-by-Facts-Factors.html))

Trends and Challenges

Trends

• The latest balloon trend is latex instead of foil or plastic balloons, as latex materials are cheaper and more resilient. 
• Balloons as wedding décor are coming back, with demand for balloon garlands, balloon arches, and balloon hoops on the rise.

Challenges

• Helium shortages are presenting a challenge for many balloon businesses in the US companies rely on imported helium to stock their supplies. 
• Rising concerns about stray balloons damaging power lines and endangering wildlife have left some consumers questioning their use. 

How Much Does It Cost to Start a Balloon Business?

Startup costs for a balloon business range from $6,000 to $12,000. Costs include a balloon inventory, a helium tank, and a down payment on a van to transport balloons. 

You can become a certified balloon artist through Qualatex by signing up for a membership, participating in their online classes, and taking an exam. It only takes a few weeks. 

You’ll need a handful of items to successfully launch your balloon business, including: 

• Helium tank
• Strings, weights, glue
• Decorating supplies

Start-up Costs	Ballpark Range	Average
Setting up a business name and corporation	$150–$200	$175
Business licenses and permits	$100–$300	$200
Insurance	$100–$300	$200
Business cards and brochures	$200–$300	$250
Website setup	$1,000–$3,000	$2,000
Inventory of balloons and decorating supplies	$1,000–$3,000	$2,000
Helium tank	$300–$400	$350
Van to transport balloons — down payment	$3,000–$5,000	$4,000
Total	$5,850–$12,500	$9,175

How Much Can You Earn From a Balloon Business?

Average prices for balloon décor are about $20 per foot of balloons. A custom balloon bouquet costs about $30. These calculations will assume that your average sale will be about $50. Your profit margin after your cost of the balloons should be about 40%. 

In your first year or two, you could work from home and do 30 sales a week, bringing in $78,000 in annual revenue. This would mean more than $31,000 in profit, assuming that 40% margin. As your website gains traction, sales could climb to 150 per week. At this stage, you’d rent a commercial space and hire staff, reducing your profit margin to around 20%. With annual revenue of $390,000, you’d make a healthy profit of $78,000.

What Barriers to Entry Are There?

There are a few barriers to entry for a balloon business. Your biggest challenges will be:

• The creative skills needed to come up with great balloon designs
• Breaking into a competitive market

Step 2: Hone Your Idea

Now that you know what’s involved in starting a balloon business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an Opportunity

Research balloon businesses in your area to examine their products, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a balloon decoration business or a rainbow balloon business.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine Your Services (Balloon Decoration and Designs)

You can offer balloons in all sorts of ways. You can sell balloon bouquets or do balloon decorating for parties and weddings. You could also set up a stand to do balloon animals for kids. 

How Much Should You Charge for Balloons?

Prices for balloons vary based on how you sell them. Like we mentioned, balloon decorating costs about $20 per foot. Balloon bouquets are about $30. After your cost to make them, you should aim for a profit margin of about 40%. 

Once you know your costs, you can use our profit margin calculator to determine your markup and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify Your Target Market

Your target market will be broad. You should spread out your marketing to include sites like TikTok, YouTube, Instagram, and Facebook. 

Where? Choose Your Business Premises

In the early stages, you may want to run your business from home to keep costs low but as your business grows, you’ll likely need to hire workers for various roles and may need to rent a production facility. You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Balloon Business Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “balloons” or “party balloons,” boosts SEO
• Name should allow for expansion, for example, “Aerial Amusement” or “The Balloon Bazaar” over “Balloon Arches & Installations”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Balloon Business Plan

Here are the key components of a business plan:

• Executive summary — A brief summary outlining the business’s mission, vision, and key goals
• Business overview — A concise description of the balloon business, including its structure, location, and primary activities
• Product and services — Details about the specific types of balloons and related services the business will offer, such as balloon bouquets, event decoration, and customization options
• Market analysis — Examination of the target market, including demographics, trends, and potential customer needs and preferences
• Competitive analysis — Evaluation of competitors in the balloon industry, highlighting strengths, weaknesses, and unique selling points
• Sales and marketing — Strategies for promoting and selling the balloon products, encompassing advertising, promotions, and customer engagement
• Management team — Introduction of key personnel and their roles, emphasizing relevant skills and experience in the balloon business
• Operations plan — Outline of day-to-day activities, logistics, and processes involved in running the balloon business efficiently
• Financial plan — A comprehensive financial projection, including startup costs, revenue forecasts, and profit margins
• Appendix — Additional supporting documents, such as market research data, resumes of key team members, and any other relevant information that enhances the business plan

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose Where to Register Your Company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to balloon businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind that it’s relatively easy to transfer your business to another state. 

Choose Your Business Structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your balloon business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole proprietorship — The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General partnership — Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) — Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corporation — Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corporation — This refers to the tax classification of the business but is not a business entity. An S Corp can be either a corporation or an LLC, which just needs to elect this structure for tax status. In an S Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online, or by mail/fax. Visit the IRS website to learn more. Keep in mind that, if you’ve chosen to be a sole proprietorship, you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund Your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans — This is the most common method but getting approved requires a rock-solid business plan and a strong credit history.
• SBA-guaranteed loans — The Small Business Administration can act as a guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
• Government grants — A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and family — Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding — Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal — Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a balloon business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Business Licenses and Permits

Starting a balloon business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your balloon business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability — The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business property — Provides coverage for your equipment and supplies.
• Equipment breakdown insurance — Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation — Provides compensation to employees injured on the job.
• Property — Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto — Protection for your company-owned vehicle.
• Professional liability — Protects against claims from clients who say they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) — This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential Software and Tools

Being an entrepreneur often means wearing many hats — from marketing to sales to accounting — which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as MyBizzHive, to manage your bookings, inventory, invoicing, and payments. 

Accounting

• Popular web-based accounting programs for smaller businesses include Quickbooks, FreshBooks, and Xero. 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences of filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop Your Website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech savvy, you can hire a web designer or developer to create a custom website for your business.

However, people are unlikely to find your website, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Marketing

Here are some powerful marketing strategies for your future business:

• Local SEO — Regularly update your Google My Business and Yelp profiles to strengthen your local search presence.
• Social media highlights — Regularly post eye-catching balloon arrangements on visually-driven platforms like Instagram and Pinterest to captivate your audience.
• Online listings — Keep your profiles up-to-date on local business directories and event planning websites to maintain visibility.
• Email campaigns — Send newsletters featuring balloon decoration ideas, special promotions, and event highlights to keep subscribers engaged.
• Balloon decor blog — Start a blog to share balloon decoration tips, trends, and insights into your creative process.
• Interactive online contests — Run contests encouraging followers to suggest new designs or themes, rewarding the best ideas with prizes.
• Balloon workshops — Conduct workshops or classes on balloon artistry and decoration techniques, enhancing customer engagement and skill development.
• Pop-up events — Create eye-catching pop-up installations at local events or public spaces to demonstrate your work and attract attention.
• Seasonal promotions — Offer themed decorations aligned with holidays and local festivities to tap into seasonal demand.
• Local business partnerships — Collaborate with event venues, florists, and party planners to create referral networks and package deals.
• Loyalty discounts — Implement a rewards program that offers discounts to repeat customers, encouraging ongoing business.
• Targeted ad campaigns — Utilize targeted online advertising to reach individuals planning specific events such as weddings, birthdays, or corporate functions.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Today, customers are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your balloon business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your balloon business could be: 

• Creative custom balloons for your next corporate event
• Brilliant balloon decor for your wedding, graduation, and more! 
• Balloon animals to delight and surprise!

Networking

You may not like to network or use personal connections for business gain but your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a balloon business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in balloons for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in balloons. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a balloon business include:

• Balloon fillers — filling balloons for orders
• Delivery drivers — delivering balloon orders
• General manager — scheduling, ordering, accounting
• Marketing lead — SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Balloon Business — Start Making Money!

Balloons are fun for all ages. They bring smiles and make for a festive atmosphere. What’s more, the market is set to expand more than a third in the coming years. So if you have a passion for balloons and a creative touch, you could start out small from home and slowly build a booming balloon empire. 

You’ve learned about the business now so it’s time to start blowing up those balloons and get your successful business off the ground!

FAQs

Is a balloon business profitable?

Yes, a balloon business can be profitable. The key is to come up with creative designs that help your balloons stand out.

Do I need a license to start a balloon business?

You may need various business licenses and permits at the state and local levels. Check with your local governments for requirements or visit MyCorporation’s Business License Compliance page.

What are the most common uses of balloons?

The most common uses of balloons include decoration for parties and events, balloon twisting or sculpting for entertainment, promotional purposes, and as toys for children.

What is the best material to make balloon?

Latex is one of the best materials to make balloons. It is flexible, stretchable, and biodegradable, making it a popular choice for environmentally friendly options.

Which balloon is best for decoration?

The best type of balloon for decoration depends on the desired effect and aesthetic. Generally, helium-filled latex balloons or foil balloons with vibrant colors or decorative prints are commonly used for decorative purposes. Balloon arches, balloon bouquets, and balloon centerpieces are popular choices for event decorations.

What type of balloons last the longest?

Foil balloons tend to last longer than latex balloons. They are made of a metallic polyester film that retains helium for a longer duration, allowing them to stay inflated for several days or even weeks. However, it’s important to note that the exact longevity of balloons can vary depending on factors like quality, handling, and environmental conditions.

How do I get customers for my balloon business?

Create a website or social media account dedicated to showcasing your balloon creations and services. Share high-quality photos, videos, and client testimonials to attract potential customers. Form partnerships with event planners, wedding venues, party rental companies, and other businesses involved in event organization.