Jump Time Party Rentals

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Executive Summary

Jump Time Party Rentals is a bounce house and party rental company in Alabama. We deliver, set up, supervise the safety rules for and pick up inflatable bounce houses, water slides and obstacle courses, plus popcorn and snow cone machines and tables and chairs. Our customers are parents, schools, churches and companies who want a party that works and no stress about the setup.

The problem is simple. Hosts want a fun centerpiece for a party, but many rental companies show up late, bring equipment that looks tired, or leave the host unsure about safety. We deliver on time, clean every unit, give clear safety rules and put the price in writing.

Here is what our numbers show. We expect sales of $101,550 in Year 1, growing to $333,480 by Year 5 as we add inflatables, crew and weekend bookings. We expect a loss of about $12,300 in Year 1 while we build our reviews and bookings, then a profit from Year 2 (about $7,600), growing to about $38,900 by Year 5.

We need $72,500 in total. That covers $43,000 in startup costs (inflatables, blowers and safety gear, an enclosed trailer, concession machines, storage, insurance and branding) and a cash cushion for the first months. I am putting in $20,000 of my own money, and I am asking for a $42,500 SBA loan plus $10,000 from an investor or partner.

I am Marcus Bell, the owner. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Jump Time Party Rentals will be a limited liability company (LLC) in Alabama, owned by Marcus Bell. An LLC is a business type that generally keeps your home and savings separate from the business's debts and lawsuits, although a lender may still ask for a personal guarantee. A business attorney or the Small Business Development Center (SBDC) can explain how it works in our state.

What we believe. Safety comes first. Every unit is inspected, anchored and supervised by the host's rules, and we cancel when the weather is unsafe.

What we offer:
- Weekend birthday party rentals. Bounce houses, combo units and slides delivered and set up for a half-day or full-day rental.
- Corporate, school and church events. Larger setups, several units and attendants for festivals and field days.
- Concession machines and party add-ons. Popcorn, snow cone and cotton candy machines, tables and chairs.
- Later, as we grow: water slides, obstacle courses and a second crew. The numbers in this plan do not include these.

The space. We rent a storage space or warehouse bay to clean, dry and store inflatables. We budget $9,600 a year in Year 1, and the plan assumes this grows about 12% a year.

Licenses and insurance. We will register the LLC with the state, get a business license and an EIN (the business tax number from the IRS, free at irs.gov), and ask the state whether amusement or inflatable rental units must be registered, inspected or insured in a specific way, since rules differ widely. We will carry general liability insurance designed for inflatable rentals, equipment insurance and workers' compensation once we hire, and give every host a written rental agreement with safety rules and a release of liability reviewed by an attorney.

Where things stand today. This plan is my starting point. Before I sign a lease or buy equipment, I will talk with at least 20 parents, schools and churches about what they pay, visit at least 3 nearby rental companies, and line up at least 10 booked weekends. If the numbers do not match this plan, I will change the plan before I spend money.

Problem & Opportunity

Renting an inflatable should be easy and safe.

1. Late or no-show deliveries. A party depends on the unit arriving on time.
2. Tired or dirty equipment. Hosts want clean, bright units.
3. Safety concerns. Wind, overcrowding and poor anchoring cause injuries, and hosts are not always told the rules.
4. Unclear prices. Delivery, setup and damage fees can add up.
5. Hard to book. Weekends fill early, and many companies take bookings only by phone.

How we will find out if people want this before we spend money. I will ask at least 20 parents, schools and churches what they pay and what they dislike, and visit nearby rental companies. Our Year 1 plan needs about 330 weekend rentals, 50 larger events and 300 add-ons, so I will ask for at least 10 booked weekends before I buy more units.

Products & Services

What we sell. We have three offerings, each priced simply.

1. Weekend birthday party rentals. The plan assumes an average of about $185 per rental in Year 1, rising to about $205 by Year 5. Cleaning, fuel and supplies cost about $28 per rental. We expect about 330 rentals in Year 1, growing to about 910 a year by Year 5.
2. Corporate, school and church events. The plan assumes about $420 per event in Year 1, rising to about $460, with about $60 per event in direct costs. We expect about 50 events in Year 1, growing to about 175.
3. Concession machines and party add-ons. The plan assumes about $65 per add-on in Year 1, rising to about $73, with about $12 per add-on in supplies. We expect about 300 add-ons in Year 1, growing to about 910.

Our prices. A posted price for each unit, a delivery fee by distance, and a clear damage policy.

How it works for a host:
1. The host books online and pays a deposit to hold the date.
2. We send a checklist: a flat, clear area, a power outlet nearby and a plan for supervision.
3. We arrive on time, check the ground, anchor the unit, set the blower and walk the host through the safety rules.
4. We pick up at the end of the rental, check the unit and clean it.

Gross margin, explained. "Gross margin" is the share of each sale left after paying for cleaning, fuel and supplies. Our plan shows about 84% in Year 1. That money pays the crew, storage, insurance and other bills. Crew pay is counted separately, under payroll.

Market Analysis

Who will use us:
- Parents planning birthday parties and family gatherings.
- Schools and PTAs with field days and fundraisers.
- Churches, community groups and companies with festivals and picnics.

Where we will work. Within about 25 miles of the storage space, so delivery and pickup fit in a day.

How we sized the plan. Our Year 1 plan needs about 330 weekend rentals, which is roughly a handful on busy weekends in spring and fall. I will check the real number by talking to hosts and venues before spending money.

Season. Spring and fall weekends are busiest, and summer water events and winter are slower or weather-dependent. The numbers show a yearly average.

Competitive Landscape

Other choices hosts have:
1. Other local rental companies, many of which are small and part-time.
2. Large party rental stores with a wide choice.
3. Buying a backyard inflatable, which costs more upfront and is easy to misuse.
4. Parks, trampoline gyms and party venues, which are costly.

How we will win hosts: on-time delivery, clean units, clear safety rules, online booking and a price in writing. These are promises we have to keep, and any competitor could make them too, so we will measure ourselves on them every week.

Marketing & Sales Strategy

How hosts will find us.
- A simple website with photos, prices, availability and online booking.
- A free Google business listing with photos and reviews.
- Parent groups, school PTAs and church groups, with a first-rental discount.
- Local partners such as party supply stores, bakeries and photographers.
- A referral thank-you: a host who refers a friend gets a discount on the next rental.

Marketing budget. About $6,600 a year in Year 1 (about $550 a month) including booking software, growing about 10% a year. The trailer lettering, website and photos are paid for from startup costs ($3,200).

Operations Plan

How the business runs day to day.

Storage and equipment. Inflatables are cleaned, dried and stored off the ground in a dry space. Blowers, stakes and tarps are checked after each use.

A normal weekend:
1. Friday: load the trailer, check each unit and blower, and confirm the delivery windows and weather.
2. Saturday and Sunday: deliver and set up at set times, anchor each unit, review the safety rules with the host and pick up at the end.
3. After each rental: wipe down and dry the unit, inspect it for damage and log the rental.

Safety. Units are anchored with stakes or weights as the maker requires, set up on level ground away from power lines and hazards, and never used in high wind or rain. We give hosts written rules on adult supervision, the number of children at once, shoes and sharp objects, and we keep a log of inspections and any incident. We do not set up a unit we are not sure is safe.

Equipment. About $33,000 to start: inflatables, blowers and safety gear, concession machines and tables, and an enclosed trailer. We set aside about $8,000 a year after that, and the plan adds units each year.

Running costs in Year 1: truck and trailer fuel and maintenance about $6,000, storage space about $9,600, business and rental insurance about $4,800, marketing and booking software about $6,600, equipment repairs and replacement about $3,600, and accounting, licenses and legal about $2,400. That is $33,000 in all.

Payment. Hosts pay a deposit to book and the balance by the event. Schools and companies are invoiced and some pay in about 30 days.

Management & Organization

Who runs the business. Marcus Bell, owner and delivery lead. As owner I will take bookings, deliver and set up, inspect equipment and handle the money. I plan to pay myself $36,000 a year in salary.

The team. Pay figures include payroll taxes and workers' compensation insurance.
- Setup crew (part-time, seasonal): one in Year 1, two in Years 2 and 3 and three in Years 4 and 5, at about $17,000 a year each.
- Delivery driver (full-time): one in Year 3 and Year 4 and two in Year 5, at about $29,000 a year each.
- Booking coordinator (part-time): one starting in Year 4, at about $17,000 a year.

We hire people who are reliable and careful, train everyone on setup, anchoring and weather rules, and run background checks (with the person's permission and following the law) on anyone working at events with children.

People who will help us: a bookkeeper or tax preparer, an insurance agent who understands rental equipment, a business attorney for a one-time review of the rental agreement and release, and a free mentor from SCORE or the Small Business Development Center (SBDC).

Milestones Narrative

Our goals and when we plan to reach them.
- Before opening (3 to 5 months ahead): check state rules on inflatable rentals, talk with at least 20 parents, schools and churches and line up at least 10 booked weekends, register the LLC and get an EIN, open a business bank account, get insurance and equipment quotes, find storage, have an attorney review the rental agreement and set up online booking. Buy the full set of units only after the first bookings are in hand.
- Year 1: open with the owner and one part-time crew member, with about 330 weekend rentals, $101,550 in sales and a loss of about $12,300.
- Year 2: add a second crew member and more units, with about 465 weekend rentals, $153,905 in sales and a profit of about $7,600.
- Year 3: add our first full-time driver, with about 605 weekend rentals, $208,120 in sales and a profit of about $16,200.
- Year 4: add a booking coordinator and a third crew member, with about 770 weekend rentals, $273,920 in sales and a profit of about $27,900.
- Year 5: grow to about 910 weekend rentals a year with a team of seven, $333,480 in sales and a profit of about $38,900.
Growth depends on booking and keeping weekends, earning reviews and keeping equipment safe and clean, so treat the later years as goals, not promises.

What we check every week: rentals booked, on-time deliveries, safety inspections logged, incidents (aim for none), average rental price, reviews and cash in the bank.

Funding Request

How much we need and how we will use it. Total we are raising: $72,500.

How we got that number. The Funding Need Calculator in this plan adds up three things:
- Startup costs of $43,000, listed item by item in the Startup Costs section: $20,000 for starter set of inflatable bounce houses, slides and a combo unit, $3,000 for blowers, stakes, tarps, mats and safety gear, $3,500 for concession machines and tables and chairs, $6,500 for used enclosed trailer, $2,400 for storage space deposit and first month, $700 for business license and local permits, $2,200 for legal, rental contract and accounting setup, $3,200 for logo, trailer lettering, website and photos, and $1,500 for first insurance payment.
- A cash cushion of about $27,600: the deepest hole our cash falls into while we build our bookings and reviews (about $6,100) plus about 3 months of running costs (about $21,500). Lenders call this "working capital."
- Together that comes to about $70,600, rounded up to the nearest $500: $71,000.
We are raising $1,500 more than that, $72,500 in all, to leave extra room for loan payments in the first years and for new units.

Where the money comes from:
- My own money: $20,000.
- Amount requested as a loan: $42,500.
- From an investor or partner: $10,000.

Kind of funding we are looking for. An SBA 7(a) small loan through a local bank or community lender, plus investor or partner money. SBA Microloans, which go up to $50,000 through nonprofit lenders, are another place to ask; their repayment times are usually shorter, so the monthly payment would be higher. Investor or partner money is not paid back with interest, but the person gets a share of the business. A family member, a friend, a local investor or a business partner could fill this part. Put any agreement in writing.

How we will pay it back. We expect a loss of about $12,300 in Year 1 while we build our reviews and bookings, then a profit from Year 2 (about $7,600), growing to about $38,900 by Year 5. With this funding, the business has money in the bank at the end of every year of the plan, and the lowest year-end balance is about $25,700, at the end of Year 1. The loan is planned at 12.75% interest over 10 years, so payments of about $628 a month (about $7,540 a year) are already included in our cash flow. We chose 12.75% as a cautious planning rate. Ask the lender for the real rate, which may be lower or higher.

What we are offering the lender: our equipment as collateral (something the lender can claim if the loan is not repaid) and my personal guarantee (my promise to repay from my own money if the business cannot).

A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan:
- Phase 1: start with two or three units and a borrowed trailer or truck (check your insurance), taking weekend bookings while keeping your current job. Startup can be roughly $12,000 to $18,000 for the units, blowers, insurance and a simple website. Get your own quotes.
- Phase 2: once you are booked most weekends, buy a trailer, add units and follow this plan.
To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match.

All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume (one page is fine) and any licenses or training certificates.
- A personal financial statement (a list of what you own and what you owe; lenders usually provide a form).
- Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov).
- Proof of insurance, or a quote.
- Your rental agreement, safety rules and price list.
- Proof of insurance for inflatable rentals, or quotes.
- Quotes for the inflatables, blowers and trailer.
- Letters from schools or churches that would book you.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- Weekend Birthday Party Rentals: about $185 per rental in Year 1, rising to $205; about $28 per rental in direct costs, rising to $32; about 330 rentals in Year 1, growing to 910.
- Corporate, School and Church Events: about $420 per event in Year 1, rising to $460; about $60 per event in direct costs, rising to $68; about 50 events in Year 1, growing to 175.
- Concession Machines and Party Add-Ons: about $65 per add-on in Year 1, rising to $73; about $12 per add-on in direct costs, rising to $14; about 300 add-ons in Year 1, growing to 910.
- Pay: Owner / Delivery Lead $36,000 (1/1/1/1/1); Setup Crew (part-time, seasonal) $17,000 (1/2/2/3/3); Delivery Driver (full-time) $29,000 (0/0/1/1/2); Booking Coordinator (part-time) $17,000 (0/0/0/1/1). The numbers in parentheses are how many people we plan to have in Years 1 through 5. Pay figures are yearly and include payroll taxes and workers' compensation.
- Other yearly costs in Year 1: truck and trailer fuel and maintenance $6,000, storage space rent $9,600, business and rental insurance $4,800, marketing and booking software $6,600, equipment repairs and replacement $3,600, and accounting, licenses & legal $2,400. These grow between 5% and 15% a year as the business grows.
- Hosts pay a deposit and the balance by the event, but schools and companies are invoiced. At the end of Year 1 about $6,093 (6% of Year 1 sales) is owed to us by those customers.
- Tax rate: 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs