Should you get a loan to start a bounce house rental company?
The answer is a simple….NO!!!!
There are many ways a person could purchase their first bounce house: credit cards, financing directly through the Manufacturer, or even taking a personal loan through your local bank or credit union.
Do not consider any of these!
Take this advice from someone who has already made that very costly mistake.
When I was looking at starting my Bounce house rental business, I was wanting to jump right in and make a huge purchase from a Manufacturer. So, I took out a small personal loan and pulled out the ol’ credit card and bought my first five brand-new bounce houses. Big mistake!
The problem I ran into is that I had no idea which units would be successful in my market (or in any market at that). I was new to the bounce house rental industry and lacked experience. I went into a lot of debt and was praying that I would at least make my money back on this initial investment. This was a big gamble that would cost me the next two years of payments and took me down a long road of regret.
If I could go back and do it again, I would purchase new units with cash (which is the only way I do it now). It is a very simple formula I follow; if I do not have all the funds in my bank account to make the entire purchase, I do not make the purchase. Sounds easy enough right?
I do catch some flak from a few of my fellow entrepreneurs on this. I typically get, but Joe, how am I supposed to grow my business into a huge multimillion-dollar corporation without taking on business debt?
My answer is this: When you have no debt, you eliminate the risk of missing a payment and further remove any risk of bankruptcy (que the nightmare situations from 2020).
One of my favorite books on this subject is EntreLeadership, by Dave Ramsey. In this book he talks about how he started his multimillion-dollar business from a card table, and with no debt. So yes, this can be done.
The bounce house rental business is an exciting endeavor that could also come with a lot of financial benefits, when done correctly. So, whether you’re looking to rent out bounce houses for a weekend side hustle, or looking to make this your new fulltime gig, please DO NOT go into debt to try this business venture out. Build your business slowly and intentionally. The reward in the end will be well worth it.
After all, Edmund Burke said it best, “Our patience will achieve more than our force”.
Please leave me a comment and be sure to check out my podcast at TheBounceHouseNation.com. You can also send me an email at email@example.com