How to Start a Carnival Ride Business

Start a Carnival Ride Business by following these 10 steps:

1. Plan your Carnival Ride Business
2. Form your Carnival Ride Business into a Legal Entity
3. Register your Carnival Ride Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Carnival Ride Business
6. Get the Necessary Permits & Licenses for your Carnival Ride Business
7. Get Carnival Ride Business Insurance
8. Define your Carnival Ride Business Brand
9. Create your Carnival Ride Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your Carnival Ride Business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

What are the costs involved in opening a Carnival Ride Business?

Starting a carnival ride business is not cheap. Used rides can cost over $100,000 – while new rides can run anywhere from $500,000 to $1 million. You also need transportation equipment like commercial trucks, a large staff, and all the extras required to operate elements like tents, concessions, and so on. You will likely need $1 million or more in capital to make a strong start in the carnival ride business and that is if you only purchase used rides.

What are the ongoing expenses for a Carnival Ride Business?

There are plenty of ongoing expenses for a carnival ride business. These include ride maintenance, employee wages, insurance, fuel, electricity, concessions, and more. The exact amount these expenses will cost you depends a lot on your exact business configuration – but you can expect to have significant ongoing expenses in this industry.

Who is the target market?

The target market is younger people and families. Although there are certainly some older adults that love carnivals, most of your money will be made from families spending hours eating, drinking, and riding. Some carnival ride businesses also successfully target groups like churches, schools, and other organizations where kids spend a lot of time together.

How does a Carnival Ride Business make money?

A carnival ride business makes money by selling tickets for rides and games, selling concessions like food and drinks, and selling souvenirs. These businesses sell tickets for a set price and take those tickets in exchange for rides. These businesses will often offer package deals where families and individuals can get unlimited rides by paying for an armband or similar premium pass.

How much can you charge customers?

Carnivals sell tickets that customers can use to ride rides. While prices can vary, the going rate right now is $1 a ticket. It usually takes anywhere from five to ten tickets to ride. Carnivals usually offer a wristband for unlimited rides, priced at anywhere between $35 and $60. They also tend to offer family packages, where a family of four can get into the carnival and ride plenty of rides for a deal – like $150.

How much profit can a Carnival Ride Business make?

A carnival ride business can pull in a lot of profit each season – but there are also a lot of expenses that come with operating this type of business. A moderately successful carnival ride business can expect to make $100,000 a season in profit or more, depending on the circumstances. If your operation becomes big enough and remains successful, you could make much more.

How can you make your business more profitable?

One of the ways experienced carnival ride business owners keep profits up is by keeping costs down. For example, a new carnival ride may cost $1 million. For that same money, you could update many of your rides with new seats, new paint, and new lighting. You could also add more comfortable options – like shaded tents – for parents. Spending money on what matters most to your customers will put you on an excellent path to increased profits.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your Carnival Ride Business is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

A carnival ride business is right for someone who loves entertaining families and is willing to put in hard work to do so. Since the work is often seasonal, you need to focus heavily on making your yearly income during approximately a six-month season – but, that also means you get to take plenty of time off during the off-season.

What happens during a typical day at a Carnival Ride Business?

A typical day at a carnival ride business starts with preparing the rides and other attractions for the public. This often includes safety checks, maintenance, cleaning, and organizing. Once you open the gates, the real work begins. You and your staff need to keep families happy, fed, comfortable, and excited. You will sell tickets, sell food, operate rides, and manage employees. At the end of the night, you will clean up and shut down to prepare for the next day.

What are some skills and experiences that will help you build a successful Carnival Ride Business?

It can be helpful to have some experience in carnivals before you start your own. The industry has its own culture and processes. While you will create your own model with your new business, having spent some time with more experienced carnival professionals will help you get off on the right foot.

Another thing that can be extremely useful in this type of business is bookkeeping experience. It’s important to keep accurate books to know where your money is coming from and where it is going. Seasonal businesses often struggle with this aspect of operations because the influx of money during peak season is substantial – and they only realize after the season dies down that they need to better manage their money.

What is the growth potential for a Carnival Ride Business?

The number of carnival ride businesses has shrunk considerably in the past few decades. There were several thousand carnival ride companies at one time, but there are only a few hundred in operation today. Even larger amusement parks with corporate backing have failed to open new locations in many years. However, carnival ride businesses that are still in operation are in high demand.