A clown or costumed performer is hired for parties and other social and business functions to provide entertainment and, in certain cases, to host the event.
Table of Contents
Follow these ten steps to start a clown business:
Plan your Clown Company
Create a legal entity for your clown business.
Register your Clown Company for Taxes
Create a Business Bank Account and a Credit Card
Create an accounting system for your clown business.
Get the Permits and Licenses You Need for Your Clown Business
Purchase Clown Business Insurance
Create a Clown Business Brand
Make a website for your clown business.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. This basic guide to launching your clown company has been put up by us. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.
STEP 1: Make a business plan.
A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:
What are the initial and continuing expenses?
Who is your intended audience?
How much money may you charge your customers?
Fortunately, we have done a lot of the legwork for you.
What are the expenses of starting a clown business?
The early expenditures of beginning your own clown company may be rather minimal, with the majority of your money and resources going into outfitting your firm with the necessary insurance, dependable transportation, and basic party supplies. Furthermore, with less focus on conventional clown paint and attire, many performers are able to perform in ordinary clothes and little make-up, depending instead on the actions they do and the abilities they demonstrate. Most performers can get their clown company up and going for under $1000.00, however this may vary based on your experience and business strategy.
What are the continuing costs of running a clown business?
The materials and discarded items utilised for each performance will be the subject of recurring payments. Maintenance for any equipment, including a car, will be included in the monthly budget, as will transport charges to and from the party venues.
Who is the intended audience?
Parents seeking for entertainment for their child’s birthday, holidays, or other social functions, such as Bar and Bat Mitzvahs, are often your target demographic. Target markets have lately expanded to include corporations or organisations searching for party performers and hostesses. Corporate firms and organisations are far more interested in a clown’s abilities, absent the face paint, and will typically pay much more for your time.
How does a clown company earn money?
Clown companies generate money by charging fees for their entertaining services. Fees should be modified depending on the number of hours attended and the job accomplished.
How much money may you charge your customers?
The majority of artists charge by the hour. You should look into how much other performers in your region earn on average for their services. Depending on the project and the services needed, fees might vary from $15 to $100 per hour. And, as previously said, if the individual or group employing the talent has the organisational financial support to pay more, they may be more prepared to pay top price. These will all change based on the environment in your location for clowns and costumed entertainers.
How much money can a clown company make?
A typical costumed performer might earn roughly $35,000 per year. This figure may vary based on whether this is a full-time or part-time work and what services you can provide to your consumers. Some bigger party firms have claimed yearly revenues in excess of $100,000, despite the fact that these enterprises are multi-faceted and capable of providing party performers and atmospheres for a wide range of clients and scenarios. Versatility is thus essential.
How can you increase the profitability of your company?
As previously said, variety is essential for broadening a specialised market to encompass more than simply a clown performance. Consider all facets of party entertainment and seek for areas in which you may specialise and include in your entertainment packages.
Also, because many individuals have a frightening clown feeling, take advantage of this fear and sell your services as a terrifying clown. Real clown performers may be sought by haunted homes and Halloween-themed events to contribute to the overall dread of their commercial endeavours. If people are afraid of clowns, who better to benefit from it than the clowns themselves?
STEP 2: Establish a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
If your clown company is sued, becoming a formal business entity, such as an LLC or corporation, safeguards you from being held personally accountable.
STEP 3: File your taxes
Before you can begin for business, you must register for a number of state and federal taxes.
To register for taxes, you will need to get an EIN. It’s really simple and completely free!
Taxes on Small Businesses
Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).
These guides will teach you more about small company taxes:
Taxes on LLCs
LLC vs. sole proprietorship
Corporation vs. LLC
S Corp vs. LLC
How to Form a S Corporation
S Corporation vs. C Corporation
There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.
STEP 4: Establish a company bank account and credit card
Personal asset protection requires the use of distinct business banking and credit accounts.
When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.
Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.
Establish a business bank account.
Opening a business bank account is not only required when asking for business financing, but it also:
Separates your personal assets from the assets of your firm, which is required for personal asset protection.
It simplifies bookkeeping and tax reporting.
Create a net 30 account.
Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.
Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.
Apply for a business credit card.
Obtaining a business credit card benefits you in the following ways:
Put all of your company’s costs in one location to separate personal and business spending.
Build your company’s credit history, which will be important for raising funds in the future.
STEP 5: Establish business accounting
Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.
STEP 6: Obtain all required permissions and licences
Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.
Requirements for State and Local Business Licensing
To run a clown business, certain state permissions and licences may be required. Visit the SBA’s reference to state licences and permits to learn more about licencing requirements in your state.
Furthermore, local licencing or regulatory restrictions may apply. For additional information on local licences and permissions, please visit:
Check with the clerk’s office in your town, city, or county.
Contact one of the local organisations mentioned in the US Small Business Associations database of local business resources for help.
Licensing of Music
IF YOUR COMPANY PLAYS MUSIC IN PUBLIC:
Permission from the composer or licence holder is required to play music in a commercial environment. Typically, a “blanket” licence permitting a company to play music held by a vast library of artists and recording studios is available. Performance Rights Organizations, such as ASCAP or BMI, may provide such rights.
Learn more about the regulations for music licencing.
STEP 7: Obtain commercial insurance.
Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.
There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.
Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.
STEP 8: Establish your brand
Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.
How to Market and Promote a Clown Business
Using the internet and social media to promote a new company is one of the most efficient techniques, particularly when it comes to keeping overhead expenses down. E-mail blasts, frequent blog and picture material, and engagement with other performers and entertainment sources will all assist to expand your brand and reputation. Consider business cards, fliers, and magnetic vehicle signage. Make a mobile billboard out of your vehicle and urge people to leave business cards or fliers in high-traffic spots throughout town.
How to Keep Customers Returning
The strength of your consumer replies will have a direct impact on your following tasks. Make certain that the consumer is satisfied with your performance. You may find it difficult to please everyone, but you should endeavour to offer the customer(s) what they want. Create friendly connections, solicit feedback, and provide incentives for repeat customers or recommendations. Furthermore, if someone is dissatisfied, follow up to see what can be better, what you can do to make the present situation right, and how you can modify going ahead. The client will be your most important sign of success or failure, therefore work hard to see them again.
STEP 9: Create your company’s website.
After you’ve defined your brand and designed your logo, the next step is to build a website for your company.
While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.
The following are the primary reasons why you should not put off developing your website:
Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.
Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.
STEP 10: Install your company phone system.
Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.