Amusement parks, often known as theme parks, provide rides, games, and entertainment choices in either an outdoor or indoor setting. Customers usually pay a single admission ticket to get access to the whole park. The successful amusement park strategy emphasises on the full customer experience, including parking, trams, food choices, water parks, roller coasters, live animal attractions, stage performances, arcade games, appealing interactive landscaping, and family oriented fun. The bigger your property, the more entertainment options you may provide your clients.
Table of Contents
Follow these ten steps to establish an amusement park:
Plan your Amusement Park visit.
Create a legal entity for your amusement park.
Tax registration for your amusement park
Create a Business Bank Account and a Credit Card
Create an Accounting System for Your Amusement Park
Obtain the Required Permits and Licenses for Your Amusement Park
Purchase Amusement Park Insurance
Create an Amusement Park Brand
Make a website for your amusement park.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. We’ve put up this basic guide to getting your amusement park up and running. 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 an amusement park?
Even if you construct a 5,000 square foot indoor facility that provides entertainment such as bounce houses, arcade games, and pizza, you will need to spend at least $250,000 in the structure, design, and installation. If you want to create a huge amusement park with roller coasters, waterparks, and live entertainment, you could be searching for multi-million dollar investors. You will need around 200 acres of property that may be developed for your purpose, as well as local infrastructure capable of supporting the projected traffic.
What are the continuing costs of a theme park?
Operational costs are considerable and must be included in your yearly budget. They include, but are not limited to:
Property and ride upkeep
Payroll
Restaurant and gift store operations
Creation of new rides and attractions
Licensing, taxes, and liability insurance are all required.
Who is the intended audience?
This is heavily influenced by the concept of your park. Some parks cater entirely to families, while others cater to teenagers and young adults, while real-life adventure parks such as zip lines, go-carts, and mixed physical challenges may cater to adults.
How does an amusement park generate revenue?
The normal admission ticket price generates the whole revenue. The actual profit, however, is found in add-ons, which might include premium pricing paid for extra services such as meals, T-shirts, memorabilia, framed images, and other expensive products. The rides or theme are the attractions that draw consumers in, but the extras are what bring you money.
How much money may you charge your customers?
Most small entertainment venues expect clients to stay for two to three hours. An arcade may charge a set admission price of $10 to $20, but more complex indoor parks can charge $20 to $50 per person. Depending on the range of amusements and the size of the park, a major amusement park might charge between $40 and $100 per person.
How much money can a theme park make?
A popular little indoor park may make $100,000 to $200,000 per year, but huge outside facilities can make millions throughout the season.
How can you increase the profitability of your company?
Provide premium services for an extra fee. No-wait rides, collector drink cups, picture opportunities, loyalty schemes, and season passes are examples of these services. If you notice a service that a consumer could be interested in, they are likely willing to pay for it.
STEP 2: Establish a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
Creating a formal company organisation, such as an LLC or corporation, shields you from personal liability if your amusement park 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.
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
An amusement park licence is required in the majority of states. To run an amusement park, 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 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.
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.
Waivers of Liability
Amusement parks should require its customers to sign releases in order to prevent liabilities and prospective litigation.
When you join up for Rocket Lawyer’s premium membership, you can easily produce a professional release of liability form for your amusement park. Members have access to hundreds of legal agreements and on-call lawyers for free legal assistance for $39.95 each month.
Occupancy Certificate
An amusement park is often operated from a big outdoor area (though they can be indoors). 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 an amusement park 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 restrictions for the area of your company to verify that your amusement park 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.
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 an Amusement Park
This project’s marketing should saturate all media channels, including television, radio, conventional print, an active social media presence, and grassroots advertising at neighbourhood fairs and events. When families are looking for entertainment choices during major holiday times such as the Fourth of July, Christmas, and school holidays, an additional push should be organised.
How to Keep Customers Returning
You will attract your first consumers by persistent and consistent advertising in the neighbourhood, as well as introductory entrance fees that provide good value for money. A tent-pole attraction, such as a new roller coaster or a known theme-based attraction, generates greater initial attention. Customers will return if they have an exceptional experience from the time they purchase their ticket until they exit the parking lot.
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.