Kids Activity Business

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

Pat Walls

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Updated: September 17th, 2024

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

So you want to start a kids activity business?

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

With a market size of $55B - there’s plenty of business to go around.

Especially considering:

You could start a kids activity business with as low as $500
Based on our data, kids activity businesses generate an average of $2.57M 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 activity business.

Let’s dive in!

Is a kids activity business profitable?

Yes, a kids activity 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 $2.57M per year with an estimated gross margin of 90%, you could expect to recover your investment within 9 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your kids activity 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 activity business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a kids activity business worth it?

If you’re wondering if a kids activity business is worth it, the answer is a big YES. With kids activity businesses, you have the potential to earn $2.57M 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 $55B, 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 activity 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 activity businesses case studies.

Examples Of Profitable Kids Activity Businesses

Here are a few examples of profitable kids activity 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 15,347 founders

2. The Confused Millennial ($120K/year)

Rachel Ritlop launched The Confused Millennial during a quarter-life crisis after being fired twice at 25. Within three years, her lifestyle blog for millennials reached over 2 million people and generated 6-figure annual revenues, focusing on content creation and consulting.

Is it profitable? Yes
How much money it makes: $120K/year
How much did it cost to start: $500

Starting A Lifestyle Blog For Millennials That Led To A $10K/Month Consulting Business

Discover how Rachel Ritlop's lifestyle blog for millennials, The Confused Millennial, generated 6 figures annually, reaching over 2 million people in less than 3 years, leading to a $10k per month consulting business.

Read this case study

Read by 7,352 founders

3. Continuum Games ($3M/year)

Greg Hughes, the founder of Continuum Games, Inc, came up with the idea for his business when he developed a card game called Discombobulation. Wanting to pursue his passion for games and toys, he quickly expanded his product line and launched a specialty toy distribution network. Today, the company generates $250k per month in the offseason, and up to $600k per month during peak season.

Is it profitable? Yes
How much money it makes: $3M/year
How much did it cost to start: $15K

How Creating A Card Game Turned Into A $250K/Month Board And Card Games Business

Continuum Games, Inc. President Greg Hughes started his toy and game distribution company with a $5 wholesale card game and today generates an average of $250k per month in revenue, rising to $600k in peak season from a combination of manufacturing and distribution of over 40 games.

Read this case study

Read by 7,277 founders

Learn more about starting a kids activity business:

Where to start?

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

Need inspiration?

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

Other resources

How much can you make with a kids activity business?

With a kids activity business, you can make an average of $2.57M 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 9 months.

How much does a kids activity business make a week?

Based on our data, average weekly revenue for a kids activity business ranges around $53.6K. As such, you could see monthly revenues of $215K.

To know if your kids activity 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 activity business.

How much do kids activity businesses owners make?

The income of a kids activity 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 activity business is about $53.6K. 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 activity 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 Activity Business Profit Margins

Generally speaking, a kids activity business can expect profit margin of around 90%. 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 activity 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 activity 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 activity business owners can ensure long-term sustainability and profitability for their business.

Kids activity business owner salary

The salary of a kids activity 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 activity business, in a prime position, might see an average weekly salary around the ballpark of $48.3K.

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 activity business may be a promising business to start - but the success of your kids activity 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 activity business.

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Starting A Kids Activity Business: Everything You Need To Know

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