Kids Entertainment Business

How Profitable Is A Kids Entertainment Business? (Updated for 2024)

Pat Walls

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Updated: September 13th, 2024

How Profitable Is A Kids Entertainment Business? (Updated for 2024)

So you want to start a kids entertainment business?

And the first question that came to your mind was, “well, are kids entertainment businesses actually profitable?”

With a market size of $8.15B - there’s plenty of business to go around.

Especially considering:

You could start a kids entertainment business with as low as $500
Based on our data, kids entertainment businesses generate an average of $4.17M per year

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a kids entertainment business.

Let’s dive in!

Is a kids entertainment business profitable?

Yes, a kids entertainment business is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $4.17M per year with an estimated gross margin of 65%, you could expect to recover your investment within 7 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your kids entertainment business.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your kids entertainment business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a kids entertainment business worth it?

If you’re wondering if a kids entertainment business is worth it, the answer is a big YES. With kids entertainment businesses, you have the potential to earn $4.17M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $8.15B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a kids entertainment business to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful kids entertainment businesses case studies.

Examples Of Profitable Kids Entertainment Businesses

Here are a few examples of profitable kids entertainment businesses, and a few more details about them:

1. Trunki ($12M/year)

Rob Law, founder of Trunki, came up with the idea for a ride-on suitcase for kids while browsing through a department store during his time as a product design student. He realized that ride-on toys wasted a lot of space and decided to create a suitcase that maximized internal space while also entertaining kids. After facing setbacks, such as a failed licensing deal and a humiliating experience on Dragons' Den, Law persevered and turned Trunki into a global brand, selling over 4 million suitcases in over 100 countries.

Is it profitable? Yes
How much money it makes: $12M/year
How much did it cost to start: $15K

How An Innovative Kids Suitcase Design Turned Into A $12M/Year Company

Trunki CEO and Founder Rob Law turned his innovative ride-on kids suitcase design into a global lifestyle brand, selling over 4 million suitcases in over 100 countries and earning £9.5 million in 2019, by understanding his customers and prioritizing customer service and reviews.

Read this case study

Read by 15,334 founders

2. Ah Real Magic LLC ($240K/year)

Gary Ferrar, a college theater major turned professional magician and mentalist, came up with the idea to start his business after performing for pediatric units in hospitals and realizing his talent for magic. He saw an opportunity in the industry, with magicians lacking internet presence and quality photos and videos. Gradually, he transitioned from performing for kids to targeting high-end clients and corporations, and now earns over $40K per month with clients including Verizon, Amazon, Google, and Facebook.

Is it profitable? Yes
How much money it makes: $240K/year
How much did it cost to start: $500

How I Started A $25K/Month Career As A Magician And Mentalist

Gary Ferrar, a professional magician and mentalist, shares how he marketed himself to high-end clients and corporations, resulting in a 25k/month career which has included performances for clients such as Google, Facebook, Uber, and Pepsi.

Read this case study

Read by 6,274 founders

3. RedTedArt ($264K/year)

Maggy Woodley, the founder of Red Ted Art, started the blog as a way to make some extra income while staying home with her kids. She initially tried selling pop art canvases but discovered a love for blogging and crafts. Through dedication and perseverance, she built up her blog and now earns a full-time salary through various revenue streams such as automated adverts, pre-roll ads on YouTube, and sponsored projects.

Is it profitable? Yes
How much money it makes: $264K/year
How much did it cost to start: $0

How This Mom Started A $22K/Month Blog With Easy Crafts For Kids

Discover how Maggy Woodley built Red Ted Art, a crafts blog that now generates $22k per month through various revenue streams, including automated adverts, sponsored projects, and publishing books, all while keeping the projects accessible and easy to replicate.

Read this case study

Read by 5,180 founders

Learn more about starting a kids entertainment business:

Where to start?

-> How much does it cost to start a kids entertainment business?
-> Pros and cons of a kids entertainment business

Need inspiration?

-> Other kids entertainment business success stories
-> Marketing ideas for a kids entertainment business

Other resources

How much can you make with a kids entertainment business?

With a kids entertainment business, you can make an average of $4.17M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $500. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a kids entertainment business make a week?

Based on our data, average weekly revenue for a kids entertainment business ranges around $86.8K. As such, you could see monthly revenues of $347K.

To know if your kids entertainment business achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your kids entertainment business.

How much do kids entertainment businesses owners make?

The income of a kids entertainment business owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established kids entertainment business is about $86.8K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a kids entertainment business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Kids Entertainment Business Profit Margins

Generally speaking, a kids entertainment business can expect profit margin of around 65%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a kids entertainment business, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, kids entertainment business owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, kids entertainment business owners can ensure long-term sustainability and profitability for their business.

Kids entertainment business owner salary

The salary of a kids entertainment business owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established kids entertainment business, in a prime position, might see an average weekly salary around the ballpark of $56.4K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a kids entertainment business may be a promising business to start - but the success of your kids entertainment business mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable kids entertainment business.

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Starting A Kids Entertainment Business: Everything You Need To Know

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