NigCareers

Fun, that’s what comes to mind whenever amusement park come into a conversation. What’s more fun is the huge financial benefit owning an amusement park comes with. The slides, games, Ferris wheels and all the cool merchandize acquired will always be remembered fondly by both the young and the old.

In 2019 alone, amusement parks (and theme parks) made over $22 billion in the U.S. If you are looking to start an amusement park business, the requirements, processes and how to get the funds you need will be discussed here.

Let’s start with why this venture could be beneficial to you and those you will be hosting:

Benefits of Starting An Amusement Park

Employment

Siting an amusement park in a location will not only directly benefit you as the business owner, but the people who live in the vicinity will also have more opportunities to make ends meet. An amusement park which welcomes thousands of people on a regular basis will need a host of personnel on ground to cater to the needs of everyone around. The first to get these jobs are usually those who live nearby as it would be easier for them to move to and from work easily while they attend to other issues later. The janitors, gatekeepers and even security personnel will mostly come from the area or a neighboring town. Store keepers as well as other small and medium scale business owners will also have an avenue to market their products and services within the premises.

Revenue generation

There is no point in spending hundreds of millions of dollars, getting huge loans (some even mortgage their houses) and take all the many other risks if you won’t make it back. Rest assured, in the amusement park business, there is a lot of profit to be made to cover the debts and pay investors.  There are many ways of making money apart from ticket sales. Typically, after the first two or three years of starting is when you start reaping the benefits of the business. Disney parks got about 83 million visitors in 2019 alone and they charge between $97 and $124 per person.

Economic development

An amusement park is a site attraction that always draws people from far and near to take part in all the entertainment it has in store for them. Every city or town that has an amusement park will grow industrially as the influx of visitors would demand that more food be sold, more people will need to move from one end to the other which will boost transportation business, and on the flipside there will be more people who would need healthcare. An amusement park will almost certainly put the town or city where it is located on the map. In addition, other forms of indirect employment will spring up because more businesses in the locality may not be able to keep up with the increasing number of clients they will begin to get; more hands will be required in terms of employment.

Health benefits

Laughter, fun and excitement do wonders for the health which is what amusement parks are all about in the first place. Studies have shown that people who have causes for amusement live longer than those who don’t. Also, laughter is good for the heart as it eases tension and nerves. It also helps families to bond, which can be rare these days with all the stress of making a living with little time left to be involved with the family. Amusement parks have provision for families whereby each group would not have to be separated unnecessarily.

Networking

There’s hardly a group of amusement park owners who started the business without other external forms of support and it usually comes from people in high places. This is another advantage of starting an amusement park business for anyone who wishes to go into it. Building an amusement park is a big deal not just for the people living around, but to other stakeholders in different sectors including the government. You will need to be in the good graces of government officials before you can be permitted to go on with the business and it will be made easier if you become friends with them. At some point, you might need financial assistance in terms of loans from financial institutions and the friendship you make with them during that period could help you in the future.

Some Factors to Consider

On the other hand, there are some aspects that you need to carefully look at and find possible solutions to before you start an amusement park:

Overcrowding

Amusement parks can sometimes be overcrowded. Right from the entrance is where you should expect to see long queues, especially during certain periods of the year. No matter how much fun there is, overcrowding will still be a concern to not just you but inspection teams who would be checking once in a while. Diseases could easily spread in an overcrowded area, long queues could lead to hostility, children could go missing from their parents and a few other challenges with security breach could occur. Also, there could easily be a stampede should a riot occur.

Traffic congestion

Amusement parks’ environs can have terrible traffic. You may think it is not your job to control traffic but traffic control is one of the reasons why some states or towns refuse to grant some entrepreneurs who would have loved to set up an amusement park in the locality permission in the first place. Terrible traffic could pose serious threats to lives and the health of people, especially when there is an emergency and an ambulance cannot find its way through a pile of vehicles in front of it. The rate at which visitors from all around the globe would troop in to have fun could impact the flow of traffic in the area which would not be good for the people and it could be a threat to your business as well.

Read Also: How To Start A Fundraising Business Idea

Noise pollution

If there is one place where people can have fun and scream at the top of their lungs without minding who’s listening, it’s on a rollercoaster ride. There are lots of fun activities and games that will get people excited to the maximum in amusement parks. One man’s meat is another man’s poison in this case as what is fun for some is a nightmare for others living around. It is almost like having a football stadium next to your house; imagine the earsplitting noise. From time to time there will be people who would slap you with a lawsuit and call you the “noisy neighbor”, but with good lawyers, you should be fine.

Criminal activities

Kidnapping is one of the criminal activities that are performed in extremely crowded areas. Parents who lose sight of their children may not set eyes on them again. Pickpocketing also thrives in crowded places like amusement parks.

Prostitution, which some may consider a profession, is still an activity that is frowned upon in some areas and an amusement park with thousands of people could be a business center for sex workers. This possibility is among a list of concerns and issues which you would be asked to plan for and address before given a license to operate and sometimes it can be hard to track down these activities.

Drugs and other harmful substances get sold and exchanged between dealers and clients in crowded places like amusement parks which also is a criminal activity that could put your business at risk. If you don’t track down those activities before they get out of hand, you could be in hot water.

There are other ways besides ticket sales that an amusement park can generate more income, they include;

Merchandize sales

Every amusement park sells their branded items. Shirts and other fancy apparels with your amusement park’s signature could be sold to the visitors for extra revenue. In fact, most amusement parks sell their merchandise at three times the selling price. For instance, amusement parks could sell a $14 shirt for $29.

Adverts

There is enough room to place signposts, advertising boards, and marketers to set up a booth to advertise their goods and services in amusement parks. The driving force is the amount of people trooping in for fun and games. Therefore, as you make money each time someone walks in through the gate, you will also be making money whenever they see an advert.

Food sales

Just like other merchandize, food sold in amusement parks are usually more expensive than what they are sold for outside. There is a variety of food to choose from, including restaurants. Amusement parks also have ways of making money through the sale of food by having a special recipe which you would almost never find anywhere else.

Parking space

Amusement parks with enough parking spaces are the people’s favorites. No one wants to bother about how they’re going to park their vehicle before having fun and then find their way to wherever they had parked it after they must have been exhausted from all the fun. Amusement parks charge for parking and people are glad to pay. It is another way of generating money.

Rent

As an amusement park business operator, you are also a landlord. You could set up some portions of the amusement park for events in case someone or an organization would like to use it. Sometimes, people just want to have a private event in an area that has not been set aside to be used for events; for you that is more money because they would have to pay extra for it.

To ensure the entertainment, safety and well being of visitors to the amusement park, you must have all these in place:

Caring and well trained members of staff

Customer service is important no matter what type of business it is. The employees must be able to provide assistance to visitors and they have to care about their well being. Amusement parks sponsor training sessions and classes for their employees and this is beneficial because they will be applying it to grow your business.

Read Also: Checklist for Starting a Company

Security

Providing security is very important, that’s why it must be apriority as you start your amusement park. Knowing all the many things that could go wrong in a crowded place like theft, kidnapping and even terrorist attacks, security should be put in place. There must be security guards from the entrance and also security cameras to track down suspicious behaviors.

Medical care must also be available in case of an emergency. First aid kits, first aid personnel, and ambulances should be on standby; anything can happen in a crowded amusement park.

Follow disease control protocol

The emergence of the coronavirus pandemic has changed the dynamics of the world. In order to reduce the spread of communicable diseases, health protocols must be duly observed. Your business must encourage the use of personal protective equipment like face masks or face shields. Hand sanitizers must be in place at different locations, temperature should be checked before entry, and social distancing must be adhered to. Queues will have to be shorter and other alternatives to purchase food instead or queuing up will be put in place.

Free Wifi and charging sockets

Parking spaces and family bathrooms are a priority for parents, also Wifi connection and electric sockets for charging are a priority for young adults. Nowadays, amusement parks make provision for these and it helps spread the message that amusement parks are a place for everyone regardless of age.

Bathrooms for families and kids

Families use their time out at amusement parks to bond by having fun. Creating a type of bathroom where families can use will only encourage them to troop in. Kids wouldn’t necessarily have to use adult toilets (especially toddlers) therefore there must be provision for them too. The provision of family bathrooms will see kidnapping and accounts of missing children decrease.

Food services

There are many obvious reasons why every amusement park must have food for visitors. Visitors who must have had a tiring yet fun day would need to keep their strengths up. You would also be making extra money because food sold at amusement parks cost at least twice more than the normal selling price. There should be a variety of food services to choose from to suit the needs, cravings and health demands of people.

Warning signs

An amusement park without warning signs to make people aware of possible hazards is doomed. The fun equipment can be dangerous if not used properly. There are also portions within the premises, including equipment, which could be under repair and may not be suitable for people; warning signs must indicate such. In addition, instructions and directions to certain areas, as well as restrictions, must be displayed where they can be seen.

What to consider first before choosing a location

The site

When planning your amusement park, the site is important. The site should go along with your vision for the business because it can make or break its success. The landscape must be considered, the topography as well. Tourists and other visitors who would be paying to have a good time must do so in a “picture friendly” environment.

Budget 

There has to be a budget to guide the spending; from the least important items and bills to the most significant ones even before you start working. The importance of having a budget goes far beyond controlling your spending, it also helps to evaluate the growth of the business in the long run. A planned budget is necessary and it will determine how far is “too far” when you are starting your business.

Read Also: How to Choose Business Location for Your Business

Competition

Don’t see your competition as a threat, see it as a guide. Consider if there are other similar businesses in your choice of location and let that guide your strategy. If there are already small or medium-sized amusement parks in the locality; that should tell you that you have to go big. By looking closely at them, you would also find out what they are missing in terms of service and what they offer; incorporate those into your own business and you’re good to go.

Ease of access

Consider how accessible the amusement park would be if you were to site it in that area. Would people find it hard to get there? Is it safe from wild animals? Will you have to spend an enormous amount of money to make a road network? Would people have to drive for more than an hour or two to get there? If all these questions do not all have a simple answer then you should probably look elsewhere.

How To Start An Amusement Park

In starting a business of this magnitude, there are a number of steps to take before you are open for business but some of the most important ones are as follows;

Consider starting alone or franchising

Small to medium scale amusement parks could cost from $2 million to about $100 million to complete, but the biggest ones cost billions. Starting an amusement park is one of the most expensive business ventures in the world therefore you should weigh your options carefully. You could partner with other organizations or prominent figures to complete the project. You may also consider franchising as it would help you start earning and that would add to your experience of running the business but control will be limited and possibly funds.

Register Your Business

You should register your amusement park in order to give it a legal status. You need to determine the legal structure of the business. It can be a sole proprietorship, partnership or a limited liability company. Each of these has its pros and cons. For instance, if you register the business as a sole proprietorship, you will have the full control of the business. It is the easiest and cheapest way of structuring a business. However, at the same time, you will bear the whole risk of the business. If you don’t want to do it alone, you might consider partnership. Partners in a partnership are collectively responsible for all business debts and profits, and also have full control of the business. For a limited liability company, the company is seen as an artificial body that is separated from the owners; it can sue and can be sued. Unlike sole proprietorship and partnership, owners are not personally responsible for business debts and liabilities of the limited liability company.

Register With Tax Authority

It is important that you register your business with relevant tax authorities both at state and federal levels. As an entity, there are certain taxes your business should pay. Also, if you hire staff working for you, you need to deduct tax from their salary which you are expected to remit to the state tax authority. Doing otherwise will be seen as tax evasion. Of course, this has its own legal implications.

Open a Bank Account

It is important that you have a bank account for your amusement park. Even though you have a personal bank account, you still need to open a separate account for your business where you can lodge all your income. Also, you should make all the expenses relating to the amusement park from the account. This makes you more accountable. At the same time, it will be easier for you to source loans from the bank when needed. Furthermore, having a bank account makes it easy for your accountant to prepare the financial statements of the amusement park

Approach investors and get a loan

If you never considered taking a loan, you might need to have a rethink. Running an amusement park is very expensive and most of the successful amusement park owners had to get financial assistance from a variety of sources. The government also assists amusement park owners in ways like reducing their taxes, granting them permission to use any location of their choosing and even awarding them grants. You will also need to approach other investors with your business proposal to convince them to invest.

Employ the best building team

The beauty of an amusement park is what draws people to it and how well the park is designed will determine how often people will visit. Your building team which will include architects, landscapers, and many others must be some of the best in the business.

Get the necessary permits 

An amusement park could change the whole outlook of its vicinity. Its emergence could lead to the industrialization of the entire community and it could also be the beginning of moral decadence and crime if not managed properly, therefore the government must award a permit if they see fit.

You will have to apply for a permit to get started. A form will be given to you where you will fill your personal information, your proposed business and your intentions, the business design and all other important information.

They might go as far as asking you to state opening and closing hours, give a detailed description of the place, ask for an inspection date, and set a date for a hearing where you will claim responsibility for the outcome of the business and assure the health and safety of people in and around the amusement park.

Your application will be accepted on grounds that the peace of the community, the health of the people and general welfare will be assured. Additional conditions could be given including the types of beverages that should be sold there, the running hours, that no immoral conduct must be done there, and that you will be partly responsible for the traffic conditions caused by the visitors.

If you fail to meet the requirements then your application might be revoked. False statements in the application could also cause your application to be rescinded. Any other breach of contract or failure to meet health and safety requirements could make you lose a permit.

It doesn’t end there. To ensure the safety of lives, there will be occasional visits from government officials to inspect the facilities and make sure they are safe enough to be used. Amusement parks are known for their giant rides and huge wheels which could cause serious damage to the health and lives of people if it malfunctions. The way these heavy machines are set up, the safety measures, age and height restrictions taken by your staff to ensure that only eligible persons get to use certain equipment will be noted by inspection teams.

You must have enough and appropriate personal protective equipment like helmets and the seats must have working seat belts to ensure safety. The issue of overload will also be looked into because if more than the required number uses a particular equipment or ride, the whole machine could collapse. All these measures must be in place because they will determine whether you will be allowed to keep your business or not.

Read Also: Small Scale Business Ideas With Low Investment

Conclusion

Getting a license to operate is a cause to celebrate because it could be a tedious process. It’s about time you got the business started but before you open fully, give it a test-run. Some call it a “soft opening” and it is basically opening the amusement park before the actual opening just for people to have a taste of what’s to come. When all that is out of the way, you should be open for business.

Services