In most cases, you do not want to buy an existing bounce house business for sale.
If their business is SO good, why are they selling it?
I just saw one for sale on Craigslist for $28,000!!! It was a few bounce houses, a couple slides, some tables and chairs, and that was it.
They forgot to include the most important thing you buy when you buy a business…
and that is…
Sure, you need good equipment and it can’t look like junk.
But people don’t RENT a bounce house because they’re looking for a bounce house.
They’re looking for ENTERTAINMENT. MEMORIES. In many cases, it’s a babysitter for the kids at the party while the parents drink and visit. TRUE!
So, if you’re gonna plop down $10,000, $15,000, $25,000 or more, you are INSANE. YES, you are INSANE.
Because the equipment doesn’t make you the money. And you are missing out on the most important thing in this business.
That is LEVERAGE.
Even if you have $25,000 to put towards your business, why would you want to? If you use the strategies I teach on my Free Webinar, you can get other people to finance your equipment (even if your credit sucks).
Seriously, would you rather have $25,000 tied up in inflatables or would you rather have most of that $25,000 in cash AND a bunch of inflatables that rent every week for cash. Which option would you choose?
DUH! Option B, right?!
So that’s why I say NEVER buy an existing business. Because 99% of them don’t have a customer list to give you. And even if they did, you’d want to buy the customer list, not the inflatables. Because again, you don’t want your money tied up.
Have you ever seen those real estate guys who say, “no money down”. A lot of them are a joke, but the few legit ones know that by putting only a little money down, they can leverage their money to buy multiple houses.
Think of your bounce house business as a real estate rental business. It’s really the same thing. And the more rentals you have, the more money you make.
AND, you really don’t want all your money tied up because if you do, you’re not leveraged enough. Reminds me of the guy I know who has 15 units (bouncers/slides) and he called me and said, “Matt, guess what! I had to turn away 10 rentals today” (it was 4th of July).
I immediately said, “what are you doing!” You need more units. He thought he couldn’t scale up more because he’d have to buy all the units for cash.
That is simply not true and most people don’t know about it. There’s a secret trick to getting others to finance you (not banks!) so you can scale up.
That’s the only way you’ll hit those $1,000-$2,500 paydays. You gotta have a lot of rentals out at once.
If you only want to make $100 on a Saturday, then go ahead and buy just 1 unit. But I’m telling you, that’s a waste of time. If all you want is $100 a Saturday, there’s a lot of ways to make that money easier.
If you want to make it in this business, you need leverage (that you NEVER get by buying an existing business for a TON of upfront money) and you need customers.
Without those 2, you’ll fail. Or just make a tiny amount of money. And that’s a shame. Because you can make a lot of money, with some hard work too, if you know what you’re doing.
OK, so where do you go from here.
STOP looking at the businesses for sale. Don’t waste your money. Instead, educate yourself on what it takes to run your business and most importantly, to leverage without risk. I suggest not buying or even starting ANY bounce house business until you attend one of our Free Webinars. It’s 92 minutes long and if you can’t spare 92 minutes, how do you expect to succeed? Others in your town are going to watch this, don’t you think you ought to too?
OK, til next time