From Concept to Big Top: Opening a Circus Business

Here are the most important factors to consider when starting your circus business:

1. Location — Choose a location that’s accessible to your audience. Areas with good transportation links and parking facilities are ideal. Also, keep in mind that different locations have different regulations regarding public gatherings, entertainment, and animal welfare (if your circus involves animals), which can affect how you operate.
2. Theme—Stand out with a niche or theme. You can choose a traditional circus, carnival, or cirque style, fantasy, steampunk, horror, space, sci-fi, historical, or cultural theme.
3. Licenses and permits — Since a circus is an entertainment business, you might need a special license that covers public performances. If your circus includes animal acts, you will need specific permits concerning the care, transport, and use of animals for entertainment. These regulations can be stringent and vary widely by region. If your circus moves locations and sets up temporarily, you might need temporary event permits from each local authority area you operate in.
4. Equipment — You will need extensive equipment, starting with a top tent, flooring, heating and cooling systems, rigging equipment, stage and seating, props, sound, and lighting. 
5. Moving supplies and vehicles — Invest in durable trailers and trucks, and portable generators to move equipment, props, and possibly animals.
6. Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
7. Insurance — Look into different kinds of insurance to protect your business such as general liability insurance, property insurance, professional liability insurance, vehicle and animal insurance, etc.
8. Legal business aspects — Register for taxes, open a business bank account, and get an EIN.
9. Performance professionals — Hire trained and experienced professionals such as acrobats, clowns, jugglers, magicians, aerialists, contortionists, and animal handlers.

You May Also Wonder:

Can a small circus business be profitable?

Sure, it can be profitable. You can charge a healthy hourly rate for performances. As long as you put on a great show you’ll attract customers.

What is the most famous circus?

Barnum and Bailey’s which used to be Ringling Brothers is the most famous circus. However, it closed in 2017.

What is the world’s oldest circus?

The Royal Hanneford Circus is the oldest circus. It has origins that date back to 1690.

How a typical day in a circus looks like?

A day in the circus involves traveling and setting up tents and exhibits. Then, various shows are performed.

What is the growth potential of circus business?

Circuses are generally not big money makers, so the growth potential is limited. However, the popularity of circuses is making a comeback. 

Step 1: Decide if the Business Is Right for You

Pros and Cons

Starting a circus has pros and cons to consider before deciding if it’s right for you.

Circus Industry Trends

Industry Size and Growth

While specific circus industry statistics are not available, it’s part of the live performance theater industry. 

• Industry size and past growth — The US live performance theater industry is worth about $9 billion after declining by about 2.3% annually over the past five years.((https://www.ibisworld.com/industry-statistics/market-size/live-performance-theaters-united-states/))
• Growth forecast — The US live performance industry is projected to keep declining in the next five years.
• Number of businesses — There are about 3,900 live performance theater businesses operating in the US. 
• Number of people employed — The live performance theater industry employs around 99,000 people.((https://www.ibisworld.com/united-states/market-research-reports/live-performance-theaters-industry/))

Trends and Challenges

Trends

• After negative coverage regarding the treatment of animals, major circuses mostly removed animals from their shows, and circuses are making a comeback. 
• Technology enables circus artists to convey their stories in much more creative ways, and it also helps create more advanced special effects.

Challenges

• For some, negative connotations around the word circus due to the treatment of animals still remain.
• The rising number of small circus companies is making the industry more competitive.

How Much Does It Cost to Start a Circus Business?

Startup costs for a circus range from $6,500 to $35,000. The low end assumes a modern circus with acrobatics and other shows that will perform at various venues. The higher end is for a traveling circus that will need a bus and a circus tent. 

You’ll need a handful of items to successfully launch your circus business, including: 

• Performance equipment
• Tent
• Bus
• Costumes

Start-up Costs	Ballpark Range	Average
Setting up a business name and corporation	$150–$200	$175
Business licenses and permits	$100–$300	$200
Insurance	$100–$300	$200
Business cards and brochures	$200–$300	$250
Website setup	$1,000–$3,000	$2,000
Costumes and equipment	$5,000–$10,000	$7,500
Bus to transport perfomers — down payment	$0–$5,000	$2,500
Tent	$0–$15,000	$7,500
Total	$6,550–$34,100	$20,325

How Much Can You Earn From a Circus Business?

Circuses that perform at venues charge a flat fee plus an hourly fee, which varies based on the number of performers. A fee for a two-person performance at a club would be about $400 plus $100 an hour. A large performance at a theater would command a much higher flat fee that could range from $10,000 to $40,000 or more, depending on the size of the venue. Your profit margin after labor costs should be about 40%. These calculations will assume an average performance fee of $5,000. 

In your first year or two, you could do two shows a month, bringing in $120,000 in annual revenue and $48,000 in profit, assuming that 40% margin. As you begin to get more gigs, you could do eight shows a month. With an annual revenue of $480,000, you’d make a tidy profit of $192,000.

What Barriers to Entry Are There?

There are a few barriers to entry for a circus business. Your biggest challenges will be:

• Finding great performers to work with  
• The startup costs if you choose to have a traveling circus

Step 2: Hone Your Idea

Now that you know what’s involved in starting a circus, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an Opportunity

Research circuses to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the market is missing a circus that offers trapeze acts and jugglers. 

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine Your Performances

The performances you offer will depend on the type of circus you decide to have and the performers that you hire. 

How Much Should You Charge for Circus Performances?

Your prices will vary greatly depending on the number of performers and the size of the venue. You need to charge enough to pay your performers and achieve a profit margin of about 40%.

Once you know your costs, you can use our profit margin calculator to determine your markup and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify Your Target Market

Your target market will again depend on the type of circus that you offer, but it will probably be very broad. You should spread out your marketing to include sites like TikTok, Instagram, Facebook, and LinkedIn. 

Where? Choose Your Circus Location

Choosing the right location for your circus business is essential for attracting audiences and ensuring its success. Look for a spot in a high-traffic area with ample space and good visibility, such as a fairground, an outdoor stadium, or a popular park.

Consider accessibility and convenience, ensuring that the location has easy access to parking and public transportation. Additionally, assess the local regulations and zoning laws to ensure compliance and obtain any necessary permits. By strategically choosing the right location, you can establish a profitable and successful circus business that captivates audiences and stands out in the entertainment industry.

You may need to rent out a practice facility or a space to store your equipment. You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.

Step 3: Brainstorm a Circus Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “circus” or “circus show,” boosts SEO
• Name should allow for expansion, for example, “Dynamic Circus Arts” over “Juggling Circus Acts”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the US Patent and Trademark Office website to make sure those names are available for registration. 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 with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Circus Business Plan

Here are the key components of a business plan:

• Executive summary — A concise summary highlighting the key points of the circus business plan, including its goals, target audience, and unique selling propositions
• Business overview — A brief overview of the circus business, outlining its mission, vision, and the unique entertainment experience it aims to provide
• Product and services — Detailed descriptions of the circus acts, performances, and additional services offered, emphasizing the unique and captivating elements that set the business apart
• Market analysis — An analysis of the target market for the circus, including demographics, psychographics, and market trends that support the viability of the business
• Competitive analysis — An examination of competitors in the entertainment industry, highlighting the circus’s competitive advantages and strategies for gaining a competitive edge
• Sales and marketing — A plan outlining how the circus will attract and retain customers, including promotional strategies, advertising channels, and pricing structures
• Management team — Introductions to key members of the circus business, emphasizing their skills and expertise in entertainment management and performance
• Operations plan — A detailed plan outlining the day-to-day operations of the circus, including venue logistics, staffing requirements, and equipment needs
• Financial plan — A comprehensive financial overview, including revenue projections, cost estimates, and break-even analysis, demonstrating the financial feasibility of the circus business
• Appendix — Supplementary materials such as resumes of key team members, detailed financial spreadsheets, and any additional information supporting the 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.

Step 5: Register Your Business

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose Where to Register Your Company

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’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to circuses. 

If you’re willing to move, you could really maximize your business! Keep in mind that it’s relatively easy to transfer your business to another state. 

Choose Your Business Structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your circus will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole proprietorship — The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General partnership — Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) — Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corporation — Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corporation — This refers to the tax classification of the business but is not a business entity. Either a corporation or an LLC can elect to be an S Corp for tax status. Here, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

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.

Step 6: Register for Taxes

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/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.

It is important to consult an accountant or other professional for help with your taxes to ensure you are completing them correctly.

Step 7: Fund Your Business

Securing financing is your next step, and there are plenty of ways to raise capital:

• Bank loans — This is the most common method, but getting approved requires a rock-solid business plan and a strong credit history.
• SBA-guaranteed loans — The Small Business Administration can act as a guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
• Government grants — A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and family — Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding — Websites like Kickstarter and Indiegogo offer increasingly popular low-risk options in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal — Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best bet, other than friends and family, for funding a circus business. You might also try crowdfunding if you have an innovative concept.

Step 8: Apply for Business Licenses and Permits

Starting a circus 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.

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.

Step 9: Open a Business Bank Account

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 circus 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.

Step 10: Get Business Insurance

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:

• General liability — The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business property — Provides coverage for your equipment and supplies.
• Equipment breakdown insurance — Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation — Provides compensation to employees injured on the job.
• Property — Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto — Protection for your company-owned vehicle.
• Professional liability — Protects against claims from clients who say they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) — This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential Software and Tools

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 AudienceView, Momentus, or Artsman, to manage your bookings, performer schedules, invoicing, and payments.

Accounting

• Popular web-based accounting programs for smaller businesses include Quickbooks, FreshBooks, and Xero. 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences of filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop Your Website

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 website builders. 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.

However, people are unlikely to find your website unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Marketing

Here are some powerful marketing strategies for your future business:

• Local SEO — Regularly update your Google My Business and Yelp profiles to strengthen your local search presence.
• Website optimization — Optimize your website to highlight your circus’s schedule, acts, and ticket information, enhancing your visibility for searches related to live entertainment and family events.
• Professional branding — Ensure your branding reflects the whimsy, thrill, and spectacle of the circus, from your logo to all promotional materials.
• Direct outreach — Connect with local schools, community centers, and businesses to promote group discounts and special performance offers.
• Social media engagement — Utilize Instagram, Facebook, and TikTok to post behind-the-scenes content, performer highlights, and engaging promotional videos.
• Circus life blog — Publish articles about the history of the circus, detailed performer profiles, and insights into act creation.
• Community performances and workshops — Conduct outreach through performances and circus skill workshops at local parks, schools, or community centers.
• Meet-and-greet events — Enhance audience engagement with opportunities to meet performers before or after shows.
• Partnerships with local businesses — Team up with local businesses for promotions, such as pairing circus tickets with discounts at nearby restaurants.
• Loyalty programs for regular attendees — Reward repeat visitors with discounts, priority seating, or exclusive access to special events.
• Group and family packages — Offer ticket packages that encourage group visits and make attending more appealing for families.
• Targeted local advertising — Promote your circus through local media, outdoor advertising, and community boards to attract a wide audience.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Today, customers are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your circus 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 circus business could be: 

• Dynamic acrobatics to inspire kids and adults 
• Modern circus performers for your next major event
• Bring the kids for family fun under the big tent

Networking

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 circus, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in circuses 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 circuses. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

Potential positions for a circus business include:

• Performers — performing circus acts
• General manager — bookings, accounting
• Marketing lead — SEO strategies, social media

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. 

Step 13: Run a Circus Business — Start Making Money!

A performer’s life on the road and under the big tent is a constant adventure, and one that offers great opportunity. It’s possible to live your dream as a performer and entrepreneur at the same time! With a small investment you could grow it into something much bigger.

You’ve done the right thing by acquiring the necessary knowledge, now it’s time to round up some great performers and get your new circus on center stage!