Break and Thrive: How to Start a Rage Room

Important elements to think about when starting your rage room:

1. Choose a strategic location — Select a location with high foot traffic and easy accessibility. Consider areas near entertainment districts, shopping centers, or other recreational facilities to attract a steady flow of visitors.
2. Obtain necessary licenses and permits — Ensure you have all the required licenses and permits to operate legally. This includes business licenses, zoning permits, and any other local or state-specific requirements.
3. Develop a unique theme — Create a compelling theme for your rage room to make it stand out. This could include different types of rooms, such as office-themed, household-themed, or futuristic-themed rooms, to offer varied experiences to visitors.
4. Invest in high-quality equipment — Purchase durable equipment that can withstand repeated use, such as breakable objects (e.g., plates, electronics), protective gear (e.g., helmets, gloves), and smashing tools (e.g., bats, hammers). Ensure all equipment is safe and appropriate for the rage room environment.
5. Implement strict safety measures and ensure a safe environment — Develop and enforce comprehensive safety protocols to ensure the well-being of your visitors and staff. This includes using personal protective equipment (PPE) such as helmets, gloves, and protective clothing, as well as safety guidelines for participants. Continuously monitor and improve the safety and engagement aspects of your rage room by collecting feedback from visitors and making necessary adjustments.
6. Maintenance and cleaning — Establish regular maintenance and cleaning routines to keep your rage rooms in good condition. This includes inspecting equipment for damage, replacing broken items, and thoroughly cleaning the rooms after each use to ensure a safe and enjoyable experience for visitors.
7. Staffing and training — Hire and train staff to manage the rage room operations, including welcoming guests, explaining safety procedures, and supervising sessions. Ensure your staff is well-versed in handling emergency situations and providing excellent customer service.
8. Register your business — A limited liability company (LLC) is a good 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.
9. Legal business aspects — Register for taxes, open a business bank account, and get an EIN. Ensure you comply with all legal requirements and industry regulations.
10. Marketing and promotion — Use a mix of online marketing, local advertising, and partnerships with other entertainment venues to promote your rage room. Highlight your unique themes, safety measures, and the exciting experience you offer to attract visitors.

Step 1: Decide if the Business Is Right for You

Pros and cons

Rage room industry trends

Industry size and growth

Very little rage room industry information is available since it’s relatively new. However, it’s projected that the global rage room industry will grow an impressive 7.12% annually through 2023.((https://dataintelo.com/report/anger-room-market/#:~:text=The%20global%20Anger%20room%20market,contributes%20to%20this%20market’s%20growth.))

Trends and challenges

Trends

• Some experts are saying that rage rooms can actually improve your mental health due to the stress relief they provide.
• Rage rooms have been in practice globally for some years, and are now growing in popularity in the U.S.

Challenges

• Some evidence exists that smashing items like old TVs or computers may release hazardous waste.
• As rage room popularity in the U.S. grows, it’s becoming a more competitive industry.

How much does it cost to start a rage room business?

Startup costs for a rage room range from $13,000 to $27,000. Costs include space rental and preparation, safety equipment, and smashable items, which you should be able to get cheap from garage sales or junk yards.

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

• Baseball bats, golf clubs, or tire irons for smashing items
• Protective equipment
• Items that can be destroyed

Start-up Costs	Ballpark Range	Average
Setting up a business name and corporation	$100 - $500	$300
Business licenses and permits	$100 - $300	$200
Insurance	$100-$500	$300
Website	$500 - $1,000	$750
Space rental	$5,000 - $10,000	$7,500
Space preparation	$5,000 - $10,000	$7,500
Safety equipment	$2,000 - $4,000	$3,000
Smashable items	$500 - $1,000	$750
Total	$13,300 - $27,300	$20,300

How much can you earn from a rage room business?

Rage room prices vary based on the number of items provided and the allotted time. Most customers will probably pay about $50 on average. Your profit margin should be about 50%.

In your first year or two, you might have 30 customers a week, bringing in $78,000 in revenue. This would mean $39.000 in profit, assuming that 50% margin. 

As you gain traction, you might have 60 customers a week. At this stage, you might hire staff, reducing your margin to around 40%. With annual revenue of $156,000, you’d make a tidy profit of $62,400.

What barriers to entry are there?

There are essentially no barriers to entry for a rage room, as it’s a very simple business model and not expensive to start. 

Step 2: Hone Your Idea

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

Market research could give you the upper hand even if you’ve got the perfect product. Conducting robust market research is crucial, as it will help you better understand your customers, your competitors, and the broader business landscape.

Why? Identify an opportunity

Research rage rooms in your area to examine their services, price points, and customer reviews.

• Make a list of rage rooms that offer similar services. 
• Review your competitors’ services – their features, pricing, – and marketing strategies
• Check out their online reviews and ratings on Google, Yelp, and Facebook to get an idea of what their customers like and dislike.
• Identify your competitors’ strengths and weaknesses. 

This should identify areas where you can strengthen your business and gain a competitive edge to make better business decisions.

You’re looking for a market gap to fill. For instance, maybe the local market is missing a rage room that allows group smash sessions. 

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

What? Determine your services

You’ll probably want to have different levels of rage room options. For example, you might charge $30 for 15 minutes to smash a computer and throw 20 plates against the wall, and up to $100 for an hour to smash 50 items. You could also offer a “couples therapy” package or a company package for a company team.

How much should you charge for rage room rental?

Your prices should be based on market prices in your area, but also on your ongoing costs.

Once you know your costs, use this Step By Step profit margin calculator to determine your mark-up 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

Rage rooms can appeal to anyone who wants to blow off steam, so you should spread out your marketing to include TikTok, Instagram, and Facebook. You also might want to target business owners who may want to use a rage room as a team building exercise. You can find business owners on LinkedIn.

Where? Choose a rage room location

The location should be easily accessible to your target audience. This might be in a commercial or business district, close to universities, or easily reachable by public transportation. Adequate parking is also a factor to consider.

Due to the nature of a rage room (or smash room) business, it’s crucial to be in a location that can meet all necessary safety regulations. This includes having adequate space for safety gear and barriers, proper ventilation, and convenient access to emergency exits.

The size of the location will determine how many customers you can accommodate at a time. A larger location could allow for more rooms or larger group sessions.

If you plan to expand your business in the future, you might want to choose a location that can accommodate that growth.

Check with your local government to make sure the location you’re considering is zoned for your type of business. Some areas may have restrictions on this type of activity.

You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.

Step 3: Brainstorm a Rage Room 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 “rage room” or “anger room”, boosts SEO
• Name should allow for expansion, for ex: “Rage Realm” and “BreakPoint Universe” over “Smash Therapy” and “Office Obliterate”
• 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 and reserve your business name with your state, start the trademark registration process, and complete your domain registration and social media account creation. 

Your business name is one of the key differentiators that sets your business apart. Once you pick a name, reserve it and start with the branding, it’s hard to switch to a new name. So be sure to carefully consider your choice before moving forward. 

Step 4: Create a Rage Room Business Plan

Here are the key components of a business plan:

• Executive Summary: A quick overview of your business, highlighting its unique concept of stress relief through destruction in a safe environment.
• Business Overview: Introduction to your business, focusing on providing a controlled space for customers to vent frustration by breaking objects.
• Product and Services: Description of your services, including various packages for room sessions, a selection of breakable items, and safety gear.
• Market Analysis: Analysis of the target market, including demographic studies and the growing demand for alternative stress relief methods.
• Competitive Analysis: Assessment of similar businesses or alternative stress-relief services in your area, their offerings, and pricing.
• Sales and Marketing: Strategy for promoting your business through social media, local partnerships, and unique marketing campaigns.
• Management Team: Information on the team’s background, emphasizing experience in business management and customer service.
• Operations Plan: Outline of day-to-day operations, including inventory management, customer booking processes, and safety procedures.
• Financial Plan: Financial projections with details on startup costs, pricing strategy, revenue streams, and break-even analysis.
• Appendix: Supplementary materials such as sample customer waivers, promotional materials, and potential room layouts.

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 are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to rage rooms. 

If you’re willing to move, you could really maximize your business! Keep in mind, 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 rage room 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. Here’s how to form an LLC.
• C Corp – 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. Read how to start a corporation here.
• S Corp – An S-Corporation 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 need to elect to be an S-Corp 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 or fax: visit the IRS website to learn more. Keep in mind, 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 are 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 strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as 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 option, other than friends and family, for funding a rage room business. You might also try crowdfunding if you have an innovative concept.  

Step 8: Apply for Rage Room Business Licenses/Permits

Starting a rage room 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 rage room 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 a client who says 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.  

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 for filing incorrect tax documents can be harsh, so accuracy is crucial.

Create a 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 services like WordPress, Wix, or Squarespace. 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.

Your customers are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. SEO will help your website appear closer to the top in relevant search results, a crucial element for increasing sales. 

Make sure that you optimize calls to action on your website. Experiment with text, color, size, and position of calls to action such as “Book Now”. This can sharply increase purchases.

Marketing

Here are some powerful marketing strategies for your future business:

• Social Media Challenges: Leverage social media platforms by creating and promoting rage-release challenges, encouraging users to share their experiences and tag friends for a chance to win free sessions, fostering engagement and organic reach.
• Corporate Team-Building Packages: Develop tailored packages for corporate team-building events, emphasizing stress relief and camaraderie, and offer discounts for bulk bookings to attract businesses looking for unconventional team-building activities.
• Themed Nights or Events: Host themed nights or events targeting specific demographics, such as “Student Stress Relief Night” or “Monday Madness,” offering discounted rates during off-peak hours to attract diverse customer groups.
• Collaborate with Local Businesses: Partner with local businesses like gyms, spa centers, or wellness studios to cross-promote services, offering package deals or joint promotions that appeal to a shared customer base.
• Video Content Marketing: Create engaging and shareable video content showcasing the Rage Room experience, testimonials, and the therapeutic benefits, utilizing platforms like YouTube and TikTok to reach a wider audience and build anticipation.
• Student Discounts and Campus Outreach: Offer special discounts for students and collaborate with nearby universities or colleges to promote the Rage Room experience as a stress-relief outlet, tapping into the student demographic.
• Local Press and Influencer Partnerships: Reach out to local newspapers, magazines, and influencers to arrange reviews or coverage of your Rage Room, leveraging their audiences to increase visibility and credibility in the community.
• Local SEO — Regularly update your Google My Business and Yelp profiles to strengthen your local search presence.
• Online Reviews and Testimonials: Encourage satisfied customers to leave reviews on popular review platforms, showcasing the positive impact of your Rage Room, and address any concerns promptly to build a positive online reputation.
• Holiday and Special Occasion Promotions: Design promotions tied to holidays or special occasions, offering discounts for events like birthdays, anniversaries, or post-breakup celebrations, creating additional reasons for customers to choose your Rage Room.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your rage room 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 rage room business could be:

• Let it all out and you’ll feel better
• Smash your heart out
• A fun and unique way to de-stress and have fun

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 rage room business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in rage rooms 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 rage rooms. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

You will likely need workers to fill various roles. Potential positions for a rage room business include:

• Room Workers – stock and cleanup rage rooms
• Counter Clerk – greet customers, take payments
• Marketing Lead – create and implement marketing strategies
• General Manager – scheduling, accounting

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 Rage Room – Start Making Money!

Rage rooms are growing in popularity every day, spreading across the U.S. like wildfire. They’re fun and good for your mental health, attracting all sorts of people. By starting a rage room, you could provide a great experience to people in your community and make a healthy living at the same time.

You understand the business now, so you’re ready to collect some old smashables and get your rage room going!

Reader Questions

Is a rage room profitable?

A rage room can be profitable, but it depends on several factors such as the location, competition, marketing strategies, pricing, and overall demand for the service. With the right marketing and pricing strategy, a rage room can generate a good amount of revenue and profits.

What happens during a typical day at a rage room?

During a typical day at a rage room, customers are provided with safety gear and are given a selection of items such as glassware, electronics, and furniture to smash and destroy using various tools such as baseball bats, crowbars, and sledgehammers. The sessions usually last for a set amount of time, and customers can either book in advance or walk in.

What is the growth potential of a rage room?

The growth potential of a rage room can be significant, as it is a relatively new and unique concept that appeals to a wide range of customers looking for a fun and unconventional way to relieve stress. The demand for such experiences is likely to continue growing, especially as more people become aware of the benefits of this type of activity.

What type of business is a rage room?

A rage room is a type of experiential entertainment business that offers customers the opportunity to break and destroy items in a safe and controlled environment. It falls under the category of leisure and entertainment businesses and is similar to other experiences like escape rooms and virtual reality gaming centers.