Start a party princess business by following these 10 steps:
- Plan your Party Princess Business
- Form your Party Princess Business into a Legal Entity
- Register your Party Princess Business for Taxes
- Open a Business Bank Account & Credit Card
- Set up Accounting for your Party Princess Business
- Get the Necessary Permits & Licenses for your Party Princess Business
- Get Party Princess Business Insurance
- Define your Party Princess Business Brand
- Create your Party Princess Business Website
- Set up your Business Phone System
There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your party princess 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 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 party princess business?
Opening a party princess business doesn’t have to be too expensive initially. You’ll need to invest in wigs, make-up, and costumes. If your budget is tight, you may be able to rent costumes as well. Consider creating a website for your business, and pay for internet service, web hosting, and a phone line. You’ll also have to apply for licensing as a business entity and obtain insurance.
What are the ongoing expenses for a party princess business?
Most ongoing expenses for this type of business will pertain to:
- Advertising and communications (phone, internet, webpage)
- Travel expenses and insurance
- Make-up, wigs, and costumes, whether purchased or rented
- The salary of employees
- If you work in a rented space, you will also include rent and utilities in a monthly total
Who is the target market?
Parents and relatives of children between the ages of 3 to 11.
How does a party princess business make money?
Party princess businesses generate revenue through the paid appearances the princesses make.
How much can you charge customers?
Most party princesses and costumed performers make somewhere in the range of $150 - $250 per hour. There are usually minimum and maximum time constraints as well.
How much profit can a party princess business make?
Party princess businesses can make substantial profits, especially if overhead costs are kept to a minimum. If you charge $200 for every 90-minute appearance and you average five to seven events a week, within 45 weeks, you can gross over $50,000 a year.
How can you make your business more profitable?
Offer multiple character appearances. Partner up with other party performers and create themed meetups.
Or, create an online club for your characters. Kids can meet their princess before their birthday and virtually invite you to their party themselves.
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.
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your party princess business is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.
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?.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
- LLC Taxes
- Sole Proprietorship vs LLC
- LLC vs Corporation
- LLC vs S Corp
- How to Start an S Corp
- S Corp vs C Corp
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.
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
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.
Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.
Open net 30 accounts
Net 30 accounts are used to establish and build business credit as well as increase business cash flow. With a net 30 account, businesses buy goods and repay the full balance within a 30-day term.
NetMany net 30 credit vendors report to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended: Read our best net 30 vendors, guide and start building business credit.
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.
Recommended: Apply for an easy approval business credit card from Divvy and build your business credit quickly.
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.
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.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.
If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.
How to promote & market a party princess business
Advertising for this business is key. Online advertising, creating a website, and interactions on social media are all part of making a name for yourself. Share photos or videos, after getting permission from parents, of your appearances. Showcase customer satisfaction by sharing customer testimonials and reviews.
You can also target party stores, including stores where you rent outfits, for flyers and ads. You might even strike up a partnership with these businesses for mutual referrals.
How to keep customers coming back
Customers love reading reviews and knowing the quality of your work before they hire you. They also want you to work hard to make a child’s event special. Make sure you always offer a high level of professionalism. Never break character or lose composure, no matter the situation. You are being paid to facilitate a fantasy.
Customers also like known solutions. If you were great once, chances are you’ll be approached about returning or being hired by other parents at your events. You can also consider offering rebates to returning customers.
Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2022 to find the best phone service for your small business.
Recommended Business Phone Service: Phone.com
Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.
Start a Party Princess Business in your State
- District of Columbia
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
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This week's episode: Evan Buist joins the podcast to discuss his startup Melodie Music, a music licensing platform that partners with composers to create high-quality, copyright-safe music. Evan walks us through the process of pivoting business strategies, fundraising mistakes, and the importance of establishing relationships.
Is this Business Right For You?
Do you enjoy dressing up as storybook princesses or other popular children’s characters? Are you a naturally effervescent person with a knack for entertaining? A party princess business allows a person of this nature to be compensated for their talents and professionalism. Singing, acting, public speaking, and even teaching backgrounds will aid in starting this type of business.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
What happens during a typical day at a party princess business?
Party princess business owners are usually either booking and scheduling events, or preparing for future events. Additional tasks that will need to be done include re-stocking certain party favors, tending to make-up and wardrobe needs, and advertising or interacting online to promote more new and return business.
What are some skills and experiences that will help you build a successful party princess business?
A successful party princess is always on. The best performers embody their characters naturally and truly enjoy the work. If you have performed on stage in musicals or acting roles, you should be able to translate much of that same training to this career. Familiarity with make-up, wigs, and costumes is an additional advantage in this industry.
You should also understand and enjoy working with children. Teachers and daycare workers have extensive experience working with children and may find this field enjoyable. Managing and communicating with children will be a regular occurrence.
Finally, you should have some experience or knowledge of small business management. Balanced books and a detailed business plan will help you achieve success.
What is the growth potential for a party princess business?
Party princess businesses are fairly popular and have been for many years. Children of younger age groups seem to gravitate towards characters at birthday or other celebratory parties.
The magic of an appearance can create a great mood for the entire celebration. This kind of universal appeal bodes well for this business and doesn’t seem to be waning. It is also a fairly lucrative business, with a small overhead.
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.
Learn from other business owners
Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.
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 party princess business?
Your party princess will need to advertise heavily to start. Find parent groups online, or advertise in local businesses which target children and parents.
How and when to build a team
Although the bulk of the work can be done alone, having an assistant can really help the entire appearance and performance run smoothly. As you grow in popularity, you may want to add other assistants and performers to expand your repertoire.