How to Start a Roller Skating Rink

Start a roller skating rink by following these 10 steps:

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

We have put together this simple guide to starting your roller skating rink. 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 important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Roller Skating Rink Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a roller skating rink?

As with every business, the skating arena’s location will define your success. If you’re unable to find an old roller rink, be sure you choose a space that is large and offers ample parking. Due to the size of space needed, the building will be your largest expense, both in the beginning and moving forward. Current successful skating rink owners recommend setting aside approximately $4,000/month for rent.

Once you’ve found a prime location, you’ll be facing a number of additional start-up costs, which will set you back approximately $30,000:

• If the building wasn’t originally designed for a skating rink, you’ll need to design and build the arena. Skating floors should be wood to ensure you attract both beginners and novice skaters.
• Depending upon the space you have to work with, hiring an engineer might be your best option for safeguarding against any spatial and safety snafus along the way.
• Equipment: lockers, benches, roller skates, music system, lighting system, tables, and food and drink equipment.
• Software: accounting and inventory management software would both be beneficial
• Insurance
• Website
• Marketing supplies

What are the ongoing expenses for a roller skating rink?

A roller skating rink’s overhead expenses vary, depending upon the services they offer. Rent, insurance, and payroll will take up a large portion of your budget. It also takes a great deal of energy to keep something like this going, so budget for a significant electric bill.

You’ll want to make refreshments available for your customers. Carefully consider your menu options before opening the business, as the items you offer will define your budget.

Dedicating a portion of your budget for ongoing and preventative maintenance should also be part of your business plan. There are many components to a skating rink and they should all be considered invaluable. Preventative maintenance ensures the entire operations runs smoothly, reducing the number of unexpected incidents.

Who is the target market?

Customers for this type of business will be anyone looking for a fun and safe place to gather with friends and family. You’ll get a spectrum of customers; from those who’ve never put on a pair of skates all the way to enthusiasts who enjoy skating every chance they get. Roller skating rinks are also popular amongst teenagers who are looking for a more entertaining option than being dropped off at the mall for a few hours with friends.

How does a roller skating rink make money?

Your business generates revenue by charging an admission price to the skating rink, as well as renting out skates to your customers. Most arenas also offer party packages and sell food and drinks, which helps attract customers and increases the business’ profitability.

How much can you charge customers?

This is a tricky question, as fees largely depend upon the customer’s unique needs. Individual skaters are charged between $7-$11, which typically include 3-4 hours of skating. Skate rentals average $5.

The bulk of your revenue will be generated from larger parties. If the party rents the entire space out, rinks charge a minimum of $350. Parties who share the rink with your other customers charge a fee of no less than $150 for 10 guests, with an additional fee for each additional guest. You’ll want to consider your overhead expenses and goals for attracting customers when constructing your fee structure.

How much profit can a roller skating rink make?

Your annual profit is defined by your fee structure, demographic, and what other activities the facility offers. Those who have found success in this industry suggest offering enough activities to attract consumers who are interested in more than skating. Entrepreneurs who have found the right balance have reported an annual profit of over $200,000 after just a few short years.

How can you make your business more profitable?

As indicated, offering skating as the only entertainment option will result in a low profit margin. The following are a few strategies and services other rinks have implemented to ensure a more profitable business:

• Offer a food and beverage selection that appeals to consumers of all ages
• If affordable, obtain a liquor license. Parents who are attending parties with their children will thank you.
• Some roller skating rinks have found success as a night club on “off” nights.
• Design your floor so it meets the size requirements for speed and figure skating competitions. One national event could pay your overhead expenses for the year.
• Sell skates.
• Offer skating lessons, segmented into different age and/experience levels.
• Coach speed skating.
• Offer exercise classes that incorporate skating.
• Host roller derby events and market to roller derby teams in the area.
• Make it more of a recreational facility. You can offer arcade games, laser tag, and/or rock climbing. Some owners even install retracting basketball goals for basketball events, while others rent their space to cheerleading or volleyball teams. By doing research and identifying what your area is lacking, you can cater to the needs of your specific community.

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 roller skating rink 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.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a bead store business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

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.

Release of Liability

To avoid liability and potential lawsuits, XXX businesses should have their clients sign a release of liability. Here is an example of one such form.

Recommended: Rocket Lawyer makes it easy to create a professional release of liability form for your roller skating business when you sign up for their premium membership. For $39.95 per month, members receive access to hundreds of legal agreements and on call attorneys to get complimentary legal advice.

Liquor License

To sell alcohol at a bar, a liquor license will be required. The type of license that must be obtained will vary depending on the kind of liquor you intend to serve, whether or not you intend to sell food, the percentage of your sales that will come from alcohol vs. food, the average amount of people that will be served per night, the bar’s closing time, and whether or not consumers will be allowed to take their alcohol to-go. Licenses will also vary by state and individual state pages should be referenced during the application process. More information on obtaining a liquor license can be found here.

Music Licensing

In order to play music in a public 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 and BMI. Learn more about music licensing requirements and how to obtain a blanket license here.

Liability Waiver

Liability waivers are essential since consumers will be in high risk environments.

Certificate of Occupancy

Roller Skating Rinks 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 rink 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 roller skating rink.
• 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 rink:

• 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 rink will be in compliance and able to obtain a CO.

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?

To build a successful skating rink business, it’s important that you not only enjoy skating, but are knowledgeable in every facet of the business. This is a very social profession, so someone who genuinely enjoys being around people, particularly school-age children. Your consumers come to escape the concerns of everyday life, so your job is to be in party mode, while still ensuring the safety of every skater.

What happens during a typical day at a roller skating rink?

A great deal of your clientele will be children, which narrows the amount of time the rink is open and filled with people. If you market appropriately, however, there are a number of ways to regulate this downtime and ensure a profitable business.

Your duties will vary, depending upon what’s on the day’s agenda. A typical day will look something like this:

• Cleaning the skating rink, both inside and out, to ensure a safe and orderly environment for your customers
• Checking all equipment and skates to ensure they’re working properly and that nothing is in need of repair
• Answering phone calls and emails for prospective clients
• Meeting with customers who are interested in holding events at the arena
• Building relationships with members of the community who could play a roll in bringing steady business to the rink
• Marketing the business and re-strategizing when necessary
• Planning events that will attract new business
• Meeting with employees to ensure they understand your mission and goals, and that they’re educated on skating rink safety standards

Additionally, there will be administrative duties to attend to, such as ordering supplies and paying bills. Once the business is running at a steady pace, you’ll want to hire a trusted manager in order to delegate your responsibilities.

What are some skills and experiences that will help you build a successful roller skating rink?

To ensure a positive and safe experience for every customer, it’s important that you understand the different facets of skating. The rink must be designed so that skaters of every level can intermingle, without getting in each other’s way. Beginners will have questions on everything from skating techniques to the difference from one skate to another. This business requires you to interact with people day in and day out, so it’s also critical that you’re patient and good with the public.

Most skating rinks realize a greater profit by offering additional recreational activities, as well as food and drink. Thus, a creative mind and experience in the service industry would prove beneficial. Strong business and marketing acumen will also be fundamental to your rink’s success.

What is the growth potential for a roller skating rink?

This industry offers great potential for growth. Since opening multiple locations within the same town will force you to compete with yourself, this strategy is only advisable if you live in a large town where you’re able to spread out your locations. However, if you’re able to invest in enough space, offering additional activities will attract a more diverse crowd and ensure your business meets short and long-term goals. While there’s much interest in the skating rink business, there are few franchising options available. Once you’ve established a name for yourself and fully understand the intricacies of running a successful rink, offering franchising opportunities could significantly expand your enterprise.