The age of the side hustle is here, with more and more people getting in on the entrepreneurial game. Some just want to make extra cash, some aredev ...
You might consider targeting a niche, such as haunted hayrides.
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Written by: Carolyn Young
Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Published on June 5, 2023
Investment range
$101,300 - $303,300
Revenue potential
$400,000 - $800,000 p.a.
Time to build
6 – 12 months
Profit potential
$120,000 - $240,000 p.a.
Industry trend
Growing
Commitment
Flexible
Here are the most important factors to consider when you want to start a haunted attraction:
You May Also Wonder:
Is a haunted attraction profitable?
A well-executed and popular haunted attraction can be profitable. The profitability of a haunted attraction depends on factors such as location, visitor demand, marketing effectiveness, operational costs, ticket pricing, and visitor capacity. Additionally, offering unique and captivating experiences, securing sponsorships or partnerships, and implementing effective revenue streams such as merchandise sales and concessions can contribute to profitability.
What happens during a typical day at a haunted attraction?
During a typical day at a haunted attraction, various activities take place to ensure a seamless and terrifying experience for visitors. These activities may include setting up and testing scare elements, applying makeup and costumes for scare actors, conducting safety checks, managing ticket sales and entrance queues, coordinating timed entry for groups, monitoring crowd flow and visitor safety, maintaining the haunted environments, and addressing visitor inquiries or concerns.
What is the growth potential of a haunted attraction?
The growth potential of a haunted attraction can be significant, especially with the increasing popularity of immersive entertainment experiences. By continuously refreshing and innovating the scares, storylines, and immersive elements, a haunted attraction can attract new visitors and retain a loyal customer base. Expanding marketing efforts, introducing new themed experiences or special events, and building a strong brand presence can contribute to growth potential.
What type of business is a haunted attraction?
A haunted attraction typically falls under the category of entertainment and hospitality businesses. It can be structured as a standalone business or as part of a larger entertainment complex.
It’s estimated that U.S. ticket sales for haunted attractions range from $300 million to $500 million per year.((https://www.americahaunts.com/ah/facts/#:~:text=Haunted%20House%20Industry%20Financials,that%20operate%20a%20haunted%20event.))
Trends
Challenges
Startup costs for a haunted attraction can vary greatly based on the property you rent and the extent of your setup. Costs could range from $100,000 for a smaller property and set up to $300,000 or more if you rent a large facility such as an old prison.
You’ll need a handful of items to successfully launch your haunted attraction business, including:
Start-up Costs | Ballpark Range | Average |
---|---|---|
Setting up a business name and corporation | $100 - $500 | $300 |
Business licenses and permits | $100 - $300 | $200 |
Insurance | $100-$500 | $300 |
Website | $500 - $1,000 | $750 |
Property rental | $20,000 - $100,000 | $60,000 |
Set up of the property | $50,000 - $150,000 | $100,000 |
Budget for actors and operating costs | $30,000 - $50,000 | $40,000 |
Sales and marketing budget | $500 - $1,000 | $750 |
Total | $101,300 - $303,300 | $202,300 |
Haunted attractions usually charge around $40 for admission per person. Your profit margin after the costs of overhead and actors should be about 30%.
In your first year or two, you might have 10,000 visitors a season, bringing in $400,000 in revenue. This would mean $120,000 in profit, assuming that 30% margin.
As you gain traction, you might double those numbers and get 20,000 visitors. With annual revenue of $800,000, you’d make a tidy profit of $240,000. Not bad for a seasonal business!
There are a few barriers to entry for a haunted attraction. Your biggest challenges will be:
Now that you know what’s involved in starting a haunted attraction, it’s a good idea to hone your concept in preparation to enter a competitive market.
Market research could give you the upper hand even if you’ve got the perfect product. Conducting robust market research is crucial, as it will help you better understand your customers, your competitors, and the broader business landscape.
Research haunted attractions to examine their design, price points, and customer reviews.
This should identify areas where you can strengthen your business and gain a competitive edge to make better business decisions.
Here’s a list of some of the most popular haunted attractions across US:
You’re looking for a market gap to fill. For instance, maybe the local market is missing a haunted forest attraction or a haunted house with advanced special effects.
You might consider targeting a niche, such as haunted hayrides.
Here are the most popular haunted attractions:
Your services are essentially to scare people. You’ll need to come up with a design for your attraction and a script for your actors and how they should do things like jump scares, or act like someone with a mental disease or a monster.
Your prices should be based on the prices of similar attractions, but also on your operating costs.
Once you know your costs, use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.
Your target market will tend to be younger, so you should market on TikTok and Instagram.
You’ll need to rent a property for your attraction. Choosing a location for a haunted attraction involves considering several key factors to ensure success and safety:
Here are some ideas for brainstorming your business name:
Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.
Finally, make your choice among the names that pass this screening and go ahead and reserve your business name with your state, start the trademark registration process, and complete your domain registration and social media account creation.
Your business name is one of the key differentiators that sets your business apart. Once you pick a name, reserve it and start with the branding, it’s hard to switch to a new name. So be sure to carefully consider your choice before moving forward.
Here are the key components of a business plan:
If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.
Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to haunted attractions.
If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your haunted attraction will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.
Choose Your State
The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.
Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.
The IRS website also offers a tax-payers checklist, and taxes can be filed online.
It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.
Securing financing is your next step and there are plenty of ways to raise capital:
Bank and SBA loans are probably the best option, other than friends and family, for funding a haunted attraction business. You might also try crowdfunding if you have an innovative concept.
Starting a haunted attraction business requires obtaining a number of licenses and permits from local, state, and federal governments.
Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.
You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.
If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.
Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.
Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your haunted attraction business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.
Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.
Here are some types of insurance to consider:
As opening day nears, prepare for launch by reviewing and improving some key elements of your business.
Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.
You may want to use industry-specific software, such as VenueMagic, or HauntPay, to manage your ticketing, merchandise, and payments.
Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism. You can create your own website using services like WordPress, Wix, or Squarespace. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.
Your customers are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. SEO will help your website appear closer to the top in relevant search results, a crucial element for increasing sales.
Make sure that you optimize calls to action on your website. Experiment with text, color, size, and position of calls to action such as “Buy Tickets Now”. This can sharply increase purchases.
Here are some powerful marketing strategies for your future business:
Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your haunted attraction meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.
Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your haunted attraction business could be:
You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a haunted attraction business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in haunted attractions for years and can offer invaluable insight and industry connections.
The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in haunted attractions. You’ll probably generate new customers or find companies with which you could establish a partnership.
If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a haunted attraction business include:
At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.
Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
Are you ready to scare people and make some money? Starting a haunted attraction could be a fun endeavor that could bring in a lot of profit in just a short time every year. You get to be creative and design your spooky attraction any way that you choose.
Now that you understand the business, it’s time to start your haunted attraction and scare up some cash!
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