A challenge course company allows customers to overcome their anxieties and collaborate to accomplish a series of outdoor activities. A challenge course, also known as an adventure course, is a company that provides groups and people with various difficulties to conquer, such as climbing towers, high rope courses, low rope courses, and zip lines. Most challenge course firms concentrate on team development by assisting members of an organisation in developing confidence and trust via problem solving.
Table of Contents
Begin a challenge course by doing the following ten steps:
Create a Challenge Course
Create a legal entity for your Challenge Course.
Register your Tax Challenge Course.
Create a Business Bank Account and a Credit Card
Create an accounting system for your Challenge Course.
Obtain the Required Permits and Licenses for Your Challenge Course
Purchase Challenge Course Insurance
Create a Challenge Course Brand
Make a website for your Challenge Course.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. We’ve put up a short guide to getting started on your challenge course. 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 establishing a challenge course?
It is costly to start a challenge course company. It takes a lot of money to support this sort of venture, from renting or acquiring property to purchasing and installing equipment. Aside from standard business expenditures, there are some one-of-a-kind charges connected with operating a challenge course firm.
One of the most significant costs associated with this kind of company land. That is why most major adventure courses are placed distant from population areas, where property is less expensive. However, it is important to assess if picking a remote location to save money is a wise business option in the long term.
Building the course is likewise an expensive endeavour. Construction must encompass not just the courses but also infrastructure such as locker rooms, catering kitchens, and bathrooms. Designing and building a modest zip line might cost $5,000 or more. A climbing wall may cost over $40 per square foot.
A challenge course, unlike many enterprises, has the potential to be harmful. That means having a well-trained crew is critical. Higher labour expenses are associated with a well-trained workforce. Almost half of adventure course administrators earn more than $20 per hour. Other employees make far more than the minimum wage.
There are various choices available to potential challenge course owners searching for a turnkey solution. More and more businesses are now giving consultation, training, construction, and marketing assistance to anyone who wish to launch a challenge course.
What are the continuing costs associated with a challenge course?
Labor, maintenance, insurance, rent or mortgage payments, and marketing are all recurring expenditures for business owners in this field.
Who is the intended audience?
Many challenge course companies’ largest and greatest clients are businesses. Many challenge course firms make their living via team building and trips. Other adventure courses provide a variety of activities that appeal to a wide range of age groups, from young children to senior citizens.
Many courses in remote locations now do not have a high number of people and couples as consumers. This is changing as individuals seek out challenge courses due to the popularity of mini-rope courses in malls and amusement parks.
How can a challenge course generate revenue?
A challenge course firm might make money in a variety of ways. The majority of enterprises in this area make money by charging customers to participate in a pre-packaged service. A rising number of challenge courses now provide a customisable curriculum and may even include an overnight excursion. Birthday parties and other event packages are available at several adventure courses.
When a group is not utilising the course, an increasingly common technique for boosting income is to give self-guided, pay-to-play access to the course.
How much money may you charge your customers?
Organizational packages often charge a single fee for up to a particular number of members. Organizations that bring more participants must pay a charge per new attendee. Group rates start at $500 for a ten-person half-day training and go up from there. Tickets for pay-to-play activities may range from $5 for a single activity to $100 or more for an all-day pass.
What kind of profit can a challenge course make?
According to the Adventure Park Insider, many smaller challenge courses earn between $100,000 and $300,000 per year, whereas bigger courses may generate more than $2 million each year.
How can you increase the profitability of your company?
There are several add-on services for the challenge course company. A good company strategy includes food vending as a key component. Many challenge course companies provide apparel and equipment as well. Hosting birthday parties and other special events is a terrific way to make money.
STEP 2: Establish a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
Creating a legitimate company organisation, such as an LLC or corporation, shields you from personal liability if your challenge course is sued.
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.
Our LLC Expenses Cheat Sheet simplifies LLC accounting.
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
A challenge course licence is required in the majority of states. To run a challenge course 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.
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.
For information on local licences and permissions, 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.
Agreement on Informed Consent
It is advised that customers sign informed consent agreements in order to reduce legal responsibility and promote transparency.
Waivers of Liability
To minimise liabilities and future litigation, challenge course operators should require their customers to sign waivers.
Licensing of Music
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.
Occupancy Certificate
A challenge company is often operated from an outside setting. A Certificate of Occupancy is often required for businesses that operate from a physical site (CO). A certificate of occupancy certifies that all building rules, zoning laws, and government requirements have been satisfied.
If you intend to rent a space:
In most cases, it is the landlord’s obligation to get a CO.
Before leasing, ensure that your landlord has or can get a valid CO for a challenge course company.
A new CO is often required after a big remodelling. If your location will be refurbished before opening, incorporate wording in your leasing agreement saying that lease payments would not begin until a valid CO is given.
If you intend to buy or create a location:
It is your responsibility to secure a valid CO from a local government entity.
Examine all building regulations and zoning standards for the area of your company to guarantee that your challenge course business will be in compliance and able to receive a CO.
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 Challenge Course
An Internet presence is crucial for every company nowadays, but the best marketing plan relies on the target client. Challenge courses aimed for corporate clientele must spend money and time approaching firms directly. Speaking with HR managers is an excellent way to generate interest in a certain programme. A pay-to-play course may benefit greatly from social media advertising.
How to Keep Customers Returning
Holding an open house for organisational executives to visit the challenge course and experience it firsthand is an excellent method to create revenue. Individual and small group adventure courses should give excellent service and discounts for frequent trips and visitors.
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.