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 step guide to starting your duckpin bowling alley. 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 long it will take you to break even?
- 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 duckpin bowling alley?
The costs involved in opening any bowling business are substantial. Startup expenses run around $45,000 per lane for tenpin businesses by the time all facility, equipment, and build-out costs are considered. Average costs for duckpin setups are more difficult to estimate, but they’re likely similar.
One of the challenges with estimating costs -- or with actually opening a business -- is finding equipment. Because Kenneth Sherman, inventor of mechanical pinsetters for duckpins, took his patent to his grave, traditional mechanical pinsetters are no longer manufactured.
Thus, traditional duckpin setups are only available used and must be purchased from a business that is closing. A few companies do make new automated systems, though. The most well-known manufacturers are Infinity Bol and Murrey.
What are the ongoing expenses for a duckpin bowling alley?
The ongoing expenses for a duckpin bowling business include facility expenses, employee wages, and maintenance costs. Most parts needed for mechanical pinsetters can be found inexpensively at an auto parts store.
Who is the target market?
The target market for a duckpin bowling business is vast. It’s anyone who bowls, regardless of whether they’re in a weekly league or simply go to the lanes once a year. Nearly 70 million people bowl at least once annually, offering plenty of opportunity for new businesses in the industry.
How does a duckpin bowling alley make money?
A duckpin bowling business makes money from the sport itself and from concessions. Businesses charge for the use of lanes, either on a per-hour, per-game, or per-season basis. Food and beverage sales (and other ancillary activities) can account for 50 to 60 percent of revenues.
How much can you charge customers?
Duckpin bowling lanes generally charge $2.25 to $3.25 per game, with rates lower on weekdays and early in the day on weekends. Many players rent shoes, which are usually around $2.00 per game. Concessions normally cost less than $10 per item, and many items are under $5.00.
For parties, businesses may charge anywhere from $7 to $12.50 per person. In some cases, rates may be higher.
How much profit can a duckpin bowling alley make?
A duckpin bowling business can bring in sizeable revenues. As an example, a business with six lanes in full use would likely bring in over $100 per hour before concessions. Food and drink sales could easily increase that to $150 per hour. (These figures are based on two people playing per lane and games lasting about 15 minutes.)
How can you make your business more profitable?
In order to cater to parties and draw in a wider array of people, some duckpin businesses are adding arcade games. Foosball, air hockey, and video games can increase how long people stay and how much money they spend.
What will you name your business?
Choosing the right name is very important. 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.
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC prevents you from being personally liable if your duckpin bowling alley is sued. There are many business structures to choose from including: Corporations, LLC's, and DBA's.
You should also consider using a registered agent service to help protect your privacy and stay compliant.
For most small businesses forming an LLC is a great option, but if you still want to weigh all your options check our our article, What Structure Should I Choose for My Business?
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.
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.
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 Bowling Alley business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
In addition, certain local licensing or regulatory requirements may apply. For more 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.
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.
Certificate of Occupancy
A bowling business is generally run out of a large building. 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 bowling alley 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 bowling alley business will be in compliance and able to obtain a CO.
In order to play music in a business setting, permission must be acquired from the composer or license holder. Typically, it is possible to obtain a “blanket” license allowing a businesses to play music owned by a large catalog of artists and recording studios. Such licenses can be obtained from Performance Rights Organizations, such as ASCAP or BMI. Learn more about music licensing requirements.
STEP 7: Get Business Insurance
Insurance is highly recommended for all business owners. If you hire employees, workers compensation insurance may be a legal requirement in your state.
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 duckpin bowling alley
Most players will come from the surrounding area, so marketing efforts for a duckpin bowling business should focus on the local community. Newspaper advertisements, radio ads, local search engine optimization, and social media marketing can all be effective ways to reach people nearby.
Recommended: Get started with local advertising for your business with a $300 credit from Yelp.
How to keep customers coming back
A duckpin bowling business can keep customers returning by offering lessons and loyalty programs. Lessons help players get better so that they enjoy the sport itself more, and loyalty programs offer a financial discount to players who come frequently.
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 Duckpin Bowling Alley In Your State
Select your state below for an in-depth guide on completing each of these steps in your home state.
Bowling aficionados who are looking for a unique version of the sport may enjoy running a duckpin bowling business, and current bowling alley owners may want to install a few duckpin lanes to add variety for their players.
In addition to loving bowling, business owners should also be handy. The mechanical pinsetters used on traditional lanes have a lot of moving parts. These parts need to be properly maintained to keep the pinsetters functioning properly. (See Costs Involved in Opening for more details on lane types.)
What happens during a typical day at a duckpin bowling alley?
When players arrive at a duckpin bowling business, the business owner or an employee must welcome them and get them set up on a lane. If the players haven’t previously seen duckpin lanes, they may need an orientation to the game and scoring.
Players may order foods or drinks, which must be prepared and served. Any equipment that’s lent out is collected when players are finished with their games.
When not interacting with customers, business owners maintain the equipment, lanes, and facilities.
What are some skills and experiences that will help you build a successful duckpin bowling alley?
Business owners should know the rules and techniques of duckpin bowling so that they can explain the variation to players. Those who haven’t previously been duckpin bowling may want to find a pro at an existing duckpin alley who can coach them.
Additionally, business owners should be familiar with the basics of running a business. Many community colleges offer classes on business-related topics, and there are also many online course options. Harvard Business School and Coursera are two well-known online platforms with business courses.
What is the growth potential for a duckpin bowling alley?
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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 duckpin bowling alley?
Duckpin bowling has a long history of being a social sport, and it continues to be highly social today. Businesses can capitalize on this aspect of the sport and increase revenues by offering birthday party, bachelor/bachelorette party, and company team-building packages.
How and when to build a team
Duckpin bowling businesses are open long hours, so it’s necessary to hire at least a few employees from the outset. Business owners may need front counter staff, concession workers and a maintenance person. Hiring a pro to offer lessons can help increase revenue but isn’t absolutely necessary.