How to Start a Party Princess Business

Start a party princess business by following these 10 steps:

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

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 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 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.

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.

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 party princess 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.

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 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.

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.