Corey Jeffreys found him in a place where many others have found each other over the past year. He was fired from his job and relied on his family to support him. However, he wanted to give himself and his family more financial security. So he started looking for new ways to generate passive income through secondary employment. Then he had his brilliant idea of making money with inflatable bouncy castles. So he took $ 800 and turned it into a profitable business.
The business model for renting inflatable bouncy castles
In the beginning, Jeffreys wanted to invest in real estate. With the right property, rental apartments can generate a steady source of income. However, reading books like Rich Dad, Poor Dad and looking for opportunities sparked his entrepreneurial spirit. And it eventually led him to an idea of how to make money with inflatable bouncy castles.
Although he wanted a new way to generate passive income, he didn’t have the capital to make a large real estate investment. While attending a birthday party with his son, he realized that the same real estate rental model could be applied to inflatables. Not only were they much cheaper, but inflatable houses had much lower overheads. Jeffreys bought his first inflatable bouncy castle for only $ 800, borrowed a trailer from his brother, and rented it out for parties.
Focusing more on the return on his investment than the competition, he created a six-month plan to get his money back. If he failed, he would just sell it and reduce his losses. However, his idea turned out to be a good one, and soon he was able to attract more clients through word of mouth. In the beginning, Jeffreys did all the supplies and handicrafts himself. But his sideline grew beyond the capabilities of a single employee. He turned the traditional real estate model into a scalable rental business that grossed $ 3,000 in the first year alone. In its fourth year of operation, it brought in an additional $ 15,000 in passive income.
Efficient management to make more money
What was the secret of its success? The key to its incredible growth is efficient management. Although its business model was simple, it had several moving parts. And while the initial investment was a small one, there were several other factors to consider when trying to make money with inflatable bouncy castles.
1. Cut costs
First, the equipment he needed to transport and store the bouncy castle was expensive. However, he has been able to cut costs by borrowing the essentials to move and deliver the inflatables.
2. Know the value of your services
Another way to increase your bottom line was to know the value of your services. Initially, a competitor contacted him to raise prices. He undercut the competition and narrowed his profit margin. In doing market research to compare prices within the industry, he realized he needed to increase his prices. This enabled him to remain competitive in the local market while increasing his sales.
3. Use targeted advertising and marketing
Although many small business owners pay for a professional advertising campaign, Jeffreys drives sales with free advertising techniques. He wins new customers through social media advertising, cold calling at local businesses and daycare centers, and old-fashioned word of mouth. Never underestimate what you can do with free resources that are already available to you.
4. Seize every opportunity
After Jeffreys returned to a full-time job, he resumed his sideline. However, while he was doing his job, he found that every call and email that he couldn’t reply to immediately was a missed opportunity. So he hired a virtual assistant to manage bookings, emails, and calls with prospects. Not only did it improve his response time, but it also improved his rating on local job boards where he posted his services.
5. Weigh the value of your time
Building a new business is also an enormous investment of time. When he first got into his company, he filled every role. But he sacrificed all of his free time to get it off the ground. Most people rented his bouncy castle for the weekend, which meant he was giving up time with his family to make deliveries. He knew he needed help, so he hired someone else to spend more time with her. While it was an added price, it made his endeavor as passive as possible. Now his business can run by itself. But he can also jump back in at any time to generate new customers and sales.
The Risks of Owning Inflatable Bouncy Castles
While the initial financial risk was small, there were other risks to consider when trying to make money from inflatable bouncy castles. For example, what happens if someone is injured? There is a significant risk of injury and liability issues. That’s why he has taken out insurance to protect his business and personal assets. He also ensures that his employee conducts an inspection after the bouncy castle is set up, shows the customer around the devices and explains what to do and what not to do. And of course the customer has to sign a rental agreement that also describes the intended use and instructions for the device. Thanks to its established procedures, it has not had a single incident in its four years of operation.
In addition to protecting his financial assets, he also takes measures to protect customers from wasting time. People often book party rentals and later change their minds. Therefore, he requires a deposit for cancellations. While it may be more attractive for people to book without a down payment, there is no guarantee of your time if they change their mind.
Despite these risks, Corey Jeffreys is the perfect example of what can happen when you stop doubting yourself and just get started. He turned a traditional business model into a successful company in new industries. If you’ve had similar ambitions, it may be time to discuss profitability with your financial advisor to turn them into action.
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