Start a custom playsets business by following these 9 steps:
You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your custom playsets business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
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 are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening a custom playsets business?
Opening a custom playset business that has an online design platform like CedarWorks’ requires a substantial investment, for the custom web design work is expensive. Business owners don’t need such a fancy website, though.
Business owners who have limited capital can get started for very little if they already have the necessary tools and a workshop (or garage). Business owners need:
- Tools for constructing and assembling playsets
- A vehicle for transporting playsets to installation sites
- A space for building individual parts
- Marketing materials
Those who don’t have these things can keep their costs minimal by purchasing used tools, renting a pickup truck when they need one, and working outside on fair-weather days. Marketing materials can be as simple as a few business cards and flyers when first starting out.
To make sure customers don’t cancel orders, business owners can require an upfront deposit. The deposit can be used to purchase any necessary building materials and features (e.g. slides).
What are the ongoing expenses for a custom playsets business?
The ongoing expenses for a custom playset business are minimal. They include rent (if leasing a workshop), utilities, vehicle costs, and any advertising expenses.
Who is the target market?
Parents are the target market for a custom playset business. Most customers are parents who have discretionary income and live in suburbia, where backyards afford space for swing sets.
How does a custom playsets business make money?
A custom playset business makes money by selling playsets. Sometimes an installation fee is charged as a separate cost, and sometimes it’s included in the price of a playset. In a few cases, customers may choose to install a playset themselves so that there is no installation fee.
How much can you charge customers?
John Lapp, an Amish custom playset business owner, sells basic playsets for $375 and fancy ones for as much as $3,000. Other businesses sell custom models for $5,000 or more. Barrett Brown, who owns CedarWorks, sold one playset for $40,000.
Installation usually runs between $200 and $700, although it can be more for larger playsets.
How much profit can a custom playsets business make?
The profit potential for a custom playset business is substantial. John Lapp sold around 700 playsets in a single year, which would have generated a revenue between $262,500 and $2.1 million depending on how fancy those playsets were.
How can you make your business more profitable?
A custom playset business can increase revenue by offering maintenance services for playsets and/or providing moving services for larger playsets. CedarWorks also makes indoor play spaces, which may appeal to some customers.
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.
After registering a domain name, consider setting up a professional email account (@yourcompany.com). Google's G Suite offers a business email service that comes with other useful tools, including word processing, spreadsheets, and more. Try it for free
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC prevents you from being personally liable if your custom playsets business is sued. There are many business structures to choose from including: Corporations, LLC's, and DBA's.
Form Your LLC
Read our Guide to Form Your Own LLC
Check out the Top Business Formation Services from our friends at StartupSavant.
You should also consider using a registered agent service to help protect your privacy and stay compliant.
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!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
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.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
- This separates your personal assets from your company's assets, which is necessary for personal asset protection.
- It also makes accounting and tax filing easier.
Recommended: You can get $300 when you open a Chase Total Business Checking® account with qualifying activities. Learn More.
Get a business credit card
- This helps you separate personal and business expenses by putting your business' expenses all in one place.
- It also builds your company's credit history, which can be useful to raise money and investment 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.
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.
State & Local Business Licensing Requirements
Certain state permits and licenses may be needed to operate a custom playsets business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
For information about local licenses and permits:
- Check with your town, city or county clerk’s office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
Certificate of Occupancy
A custom playsets business is generally run out of a workshop. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.
- If you plan to lease a location:
- It is generally the landlord’s responsibility to obtain a CO.
- Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a custom playsets business.
- After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
- If you plan to purchase or build a location:
- You will be responsible for obtaining a valid CO from a local government authority.
- Review all building codes and zoning requirements for your business’ location to ensure your custom playsets business will be in compliance and able to obtain a CO.
Custom playsets businesses should consider requiring clients to sign a services agreement before starting a new project. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations, and so on.
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.
Learn more about General Liability Insurance.
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.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
How to promote & market a custom playsets business
Word of mouth is the most effective way to grow a custom playset business. Other effective advertising methods include selling through a website and/or catalog. Many business owners avoid selling through traditional retailers because they mark up the price and don’t offer the same level of personable service.
How to keep customers coming back
A custom playset business can set itself apart from the competition by offering unique features that other businesses don’t have. Placing toys in towers and creating themed playsets, for example, will distinguish a business.
STEP 9: Establish your Web Presence
A business website allows customers to learn more about your company and the products or services you offer. You can also use social media to attract new clients or customers.
Start A Custom Playsets Business In Your State
Select your state below for an in-depth guide on completing each of these steps in your home state.
Is this Business Right For You?
Many business owners who start custom playset businesses enjoy woodworking and being outdoors, which makes creating swing sets in backyards a natural choice. Gabriel Millan says that the smiles kids have when they see a new swing set is another added bonus for him, and it likely is for most other business owners.
What happens during a typical day at a custom playsets business?
Custom playset business owners and employees spend a lot of their time building playsets and installing those playsets. When not actively constructing or putting together a playset, business owners pick up supplies and help customers custom-design their playsets.
What are some skills and experiences that will help you build a successful custom playsets business?
While business owners should have some basic woodworking and handyman skills, an advanced knowledge of carpentry isn’t necessary to start a custom playset business. Business who don’t already have these skills can gain them by either enrolling at a local vocational school or working for a playset installation business in the area.
In order to ensure that custom-designed playsets are safe, business owners should familiarize themselves with the ASTM International standard F1148. This is a voluntary standard for home playground equipment. Kids Creations makes ASTM-certified playsets and explains why this standard is so important.
For help with the actual designing of custom playsets, business owners can look at what other companies are offering and consult books like Backyards for Kids, Homesthetics.net, and Paul’s Playhouses have a number of design ideas that can be incorporated into designs.
What is the growth potential for a custom playsets business?
Most custom playset businesses have a single location where they make playsets. Some businesses offer installation only throughout the local area around their workshop or factory, while other businesses partner with playset installers so they can serve customers throughout the Continental U.S. (and occasionally Canada, Alaska and Hawaii). A few businesses grow to have their own stores throughout the U.S.
CNY Playsets in East Syracuse, NY is a typical small custom playset business that serves the surrounding community. Swingsets Lancaster offers delivery and installation throughout the Continental U.S., and Adventure World Playsets partners with dealers in several states.
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Take the Next Step
Find a business mentor
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
What are some insider tips for jump starting a custom playsets business?
Parents who purchase custom playsets pay a premium price for durability, customization, and service. Businesses that focus on these will find that past customers frequently recommend them to other parents. Therefore, custom playset businesses should:
- Only offer playsets made from high-quality materials that’ll last
- Offer as many customization options as is possible
- Spend as much time with customers as is needed
How and when to build a team
Most custom playset businesses start out with at least one employee, for installation goes much faster when there are two people to handle large parts. Additional employees can be added as demand grows and the need arises.