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Written by: Carolyn Young
Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Updated on September 11, 2023
Investment range
$181,300 - $303,300
Revenue potential
$312,00 - $624,000 p.a.
Time to build
6 – 12 months
Profit potential
$62,400 - $124,800 p.a.
Industry trend
Growing
Commitment
Full-time
Trampoline parks have become more and more popular since trampoline became an Olympic sport in 2000. They’re popular for kids’ birthday parties, or just as a fun activity for families. They’ve actually become a growing industry that’s worth more than $650 million, so by starting your own trampoline park, you could get a share of that market.
But first, you need to understand the business side of things. Luckily this step-by-step guide details all the information you need to jump into the trampoline park business.
Looking to 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.
Trends
Challenges
Startup costs for a trampoline park range from $180,000 to $300,000. Costs include the space rental and preparation, trampolines and safety equipment, and an operating budget.
Alternatively, you could purchase a trampoline park franchise like Urban Air Trampoline or Big Air Trampoline.
You’ll need a handful of items to successfully launch your trampoline park business, including:
| 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 and preparation | $100,000 - $150,000 | $125,000 |
| Trampolines and safety equipment | $50,000 - $100,000 | $75,000 |
| Labor and operating budget | $30,000 - $50,000 | $40,000 |
| Sales and marketing budget | $500 - $1,000 | $750 |
| Total | $181,300 - $303,300 | $242,300 |
You should be able to charge about $20 per hour per person. Your profit margin after all costs should be about 20%.
In your first year or two, you could have 50 customers a day, 6 days a week, bringing in $312,000 in revenue. This would mean $62,400 in profit, assuming that 20% margin.
As you gain traction, you might double your customers. With annual revenue of $624,000, you’d make a tidy profit of $124,800.
You could bring in additional revenue by selling food and beverages, or hosting special events.
There are a few barriers to entry for a trampoline park. Your biggest challenges will be:
Now that you know what’s involved in starting a trampoline park, 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.
Research trampoline parks in your area and online to examine their services, price points, and customer reviews.
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 an indoor trampoline park that has an indoor playground for small children, or a trampoline park that has a dodge ball league.
You might consider targeting a niche, such as starting an adventure park that has trampolines and other attractions like a climbing wall.
This could jumpstart your word-of-mouth marketing and attract clients right away.
In addition to charging for admission to the park, you could have a café and sell food and beverages. You could also offer other attractions in your park and charge more for access to those.
Your prices should depend on market prices in your area, but also on your operating 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.
Your target market will be families, but also younger adults, so you should market in TikTok, Instagram, and Facebook.
You’ll need to rent out a large space for your park unless you decide to build a facility. You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.
When choosing a suitable location for your trampoline park, you may want to follow these suggestions:
Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.
Here are some ideas for brainstorming your business name:
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.
Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:
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.
Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!
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 trampoline parks.
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.
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your trampoline park will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
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.
Choose Your State
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.
The IRS website also offers a tax-payers checklist, and taxes can be filed online.
It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.
Securing financing is your next step and there are plenty of ways to raise capital:
Bank and SBA loans are probably the best option, other than friends and family, for funding a trampoline park business. You might also try crowdfunding if you have an innovative concept.
Starting a trampoline park 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.
This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.
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.
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 trampoline park 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.
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:
As opening day nears, prepare for launch by reviewing and improving some key elements of your business.
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 Clubspeed, or lilYPad, to manage your tickets, payments, and memberships.
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 “Buy Tickets Now”. This can sharply increase purchases.
Some of your business will come from the casual passerby or online visitors, but you should still invest in digital marketing! Getting the word out is especially important for new businesses, as it’ll boost customer and brand awareness.
Here are some powerful digital marketing strategies for small businesses:
Take advantage of your website, social media presence and real-life activities to increase awareness of your offerings and build your brand.
Traditional marketing is any form of marketing that uses offline media to reach an audience. Some options that might work for a trampoline park business include:
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 trampoline park 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 trampoline park business could be:
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 trampoline park business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in trampoline parks 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 trampoline parks. You’ll probably generate new customers or find companies with which you could establish a partnership.
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 trampoline park business include:
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.
Trampoline parks offer a fun and adventurous experience for kids and even adults. They’ve been growing in popularity and have evolved into a $650 million industry. By starting your own trampoline park, you’ll be providing a great place for family fun in your community and making a nice living.
Now that you understand the business, you’re ready to get your successful trampoline park jump-started!
Trampoline parks can be profitable if they are well-managed and attract a steady flow of customers. Factors such as location, pricing, marketing strategies, and the overall customer experience can greatly impact profitability. It’s essential to conduct thorough market research, develop a solid business plan, and effectively manage expenses to maximize profitability.
During a typical day at a trampoline park, customers engage in various activities centered around trampolines. This includes jumping on trampoline mats, participating in organized games and activities, testing their skills on obstacle courses, practicing flips and tricks in foam pits, and engaging in dodgeball or basketball games on trampoline courts. Trampoline parks may also offer other amenities such as arcades, party rooms, and snack bars to enhance the overall customer experience.
The growth potential of a trampoline park largely depends on factors such as market demand, competition, location, and the ability to adapt and innovate. Trampoline parks have gained popularity in recent years, offering a unique and active entertainment option for individuals and families. However, market saturation and changing consumer preferences can affect the growth potential. To sustain growth, trampoline parks can consider diversifying their offerings, expanding to new locations, introducing new attractions, and targeting niche markets.
A trampoline park is typically categorized as an entertainment or recreational facility. It falls within the broader category of the amusement and recreation industry. Trampoline parks provide a venue for people of different ages to engage in physical activities, have fun, and socialize. From a business perspective, trampoline parks operate as commercial enterprises, offering services and experiences for which customers pay a fee.
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