How to Start a Clown Business

Start a clown business by following these 10 steps:

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

We have put together this simple guide to starting your clown 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 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 Clown Business 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 clown business?

The initial costs for starting your own clown business can be fairly low, with the bulk of your money and resources being spent to outfit your business with the proper insurance, reliable transportation, and the basic supplies used for entertaining at parties. And, with less emphasis on the traditional clown makeup and outfits, many performers are able to perform in regular clothes and minimal make-up, relying instead on the acts they perform and talents they put on display. For approximately $1000.00, most performers are able to get their clown business up and running, although the cost will fluctuate, depending on your expertise and business plan.

What are the ongoing expenses for a clown business?

Recurring fees will relate to the materials and disposable goods used for each performance. Maintenance for any equipment, including a vehicle, will also constitute a portion of a monthly budget, along with travel expenses for getting to and from the party locations.

Who is the target market?

Typically, your target audience would be parents looking for entertainment for a child’s birthday, holidays, or other social gatherings, such as Bar and Bat Mitzvahs. More recently, target markets have also extended to businesses or organizations looking for party entertainers and hosts. Corporate businesses and organizations are considerably more interested in the talents of a clown, minus the face paint, and will often pay considerably more for your time.

How does a clown business make money?

Clown businesses make their money from the fees collected for their entertainer jobs. Fees will should be adjusted based on the hours in attendance and the work being performed.

How much can you charge customers?

For most performers, fees are charged by the hour. You will need to see what other performers in your area make, on average, for their services. Fees can range anywhere from $15 to $100, per hour, depending on the job and the services requested. And, as mentioned above, the person or group hiring the performer may be more willing to pay top dollar if they have the organizational financial backing to pay more. These will all vary, depending on the climate for clown and costumed performers in your area.

How much profit can a clown business make?

The average costumed performer can make around $35,000 per year. This number will fluctuate, depending on if this is a full or part-time job and what services you can offer your customers. Some larger party companies have reported profits exceeding $100,000, annually,although these businesses tend to be multi-faceted and able to supply party performers and atmospheres for a myriad of customers and situations. Versatility, then, becomes key.

How can you make your business more profitable?

As mentioned above, versatility is important for expanding on a niche market to include more than just a clown performer. Consider all the aspects of party entertainment and look for what you can specialize and add as part of your entertainment packages.

Also, since there is more of a scary clown vibe among many people, exploit this fear and offer your services as a scary clown. Haunted houses and Halloween-themed attractions may be looking for real clown performers to add to the overall terror of their business ventures. If people are scared of clowns, who better to profit than clowns themselves.

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 clown 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.

State & Local Business Licensing Requirements

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

Music Licensing

IF your business plays music publically:

 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

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?

Do you enjoy talking to and performing for groups of people, both young and old? Do you have a knack for arts and crafts, music, dancing, singing and other aspects of party entertainment? Clown and costumed entertainment businesses thrive off of the energy and creativity of the performers. If you found yourself answering yes to these questions or feel excited about the possibility of making a living from your combined entertaining talents, then this may be the career for you.

What happens during a typical day at a clown business?

A traditional clown business focused on entertaining audiences, as a face-painted clown. More recent business models have expanded on this theme and include many more facets of entertainment. A modern clown business attends to:

• Receiving and responding to booking requests
• Updating monthly calendar(s) to reflect upcoming jobs
• Preparing theme-based shows and packages for upcoming parties and events
• Restocking supplies and care and maintenance of equipment and costumes for events
• Hiring additional performers (as needed)
• Marketing and advertising your services

What are some skills and experiences that will help you build a successful clown business?

Many clown and costumed performers are and have been trained in clown performing schools. As a sub-genre of acting and entertaining, a good clown must be a natural performer, able to perform many tasks and forms entertainment. Often, these are the types of things taught through a clown school, but it is not necessary to have attended a school in order to be a successful clown and performer. However, there are a number of traits and talents you must possess, or be able to learn, in order to become a success in this business. Some examples are:

• Singing, dancing, acting, playing musical instruments, and interacting with a crowd
• Applying make-up and performing face-painting for audience members
• Juggling, performing magic tricks, making balloon animals and “sculptures”, and doing some basic gymnastics
• Understanding a crowd and adjusting your routine to fit with the audience
• Managing a small business, including hiring and firing employees, balancing finances, and marketing and promotion
• Managing and using social media and technology to maximize the reach of your business and the quality of your performances

What is the growth potential for a clown business?

Clown and costumed performer businesses have traditionally done well, with numerous requests for children’s birthday parties and celebrations often accounting for the bulk of the reservations. However, in more recent years, traditional clowns have seen less work, primarily caused by a shift in perception of clowns from cheery and happy to more ominous and, for some, scary. Numerous factors can be cited for this societal shift but, the bottom line is, the business is experiencing a change in how these performers use their crafts to maintain a decent work schedule. By expanding the forms of entertainment available in the performer’s repertoire, the clowning business is finding new and exciting ways to bring the spark back to this classic performing profession. And, with the new changes come more expansion and growth potential. As a performer, the field is rife for expansion, but needs creative individuals to steer this clown car to the modern events of the new millennium.