Key Takeaways

  • A character business involves delivering live entertainment in costume for events, requiring business registration, insurance, and marketing.
  • Selecting a niche and maintaining high-quality costumes are key to standing out.
  • Pricing should reflect experience, costume quality, and location-specific market demand.
  • Legal compliance (e.g., copyright, insurance, contracts) is essential.
  • Diversifying services and establishing partnerships with event planners can drive growth.

Starting a Costume Character Business Overview

Knowing how to start a costume character business is, on the fundamental level, little different from knowing how to start most other kinds of service businesses. Like most businesses, superior advertising, word-of-mouth, and user experience will all be key to your success. However, unlike some service businesses, your costume character business can be either part-time or full-time, depending on how much time and work you wish to invest in it.

Choosing Your Character Business Niche

Before launching your character business, identify your niche. Consider focusing on specific categories like princesses, superheroes, mascots, holiday characters, or educational figures. Specialization can help you stand out and appeal to a specific market segment. You should also evaluate the competition in your area and identify unmet demand—for example, STEM-themed characters for school programs or custom mascots for local brands.

Basic Steps to Starting a Costume Character Business

When starting a costume character business, the following steps will help you achieve your goal:

  1. Acquire a local business license and learn the business rules. Some states will collect sales tax on your business and require disability insurance if you hire employees. You should also learn about local insurance, reporting, and licensing requirements.
  2. Acquire costumes or find rental resources. Once you register your business, you should obtain costumes for it or secure a means to rent them. Ebay and costume stores after holidays can be great sources of discount costumes if you would like to keep your initial expenses down. Or, if you do not plan to purchase costumes, find a costume rental business to meet your needs. It may be advisable to make sure their costumes fit correctly, and are at a price point you find acceptable.
  3. Advertise. You may consider posting fliers in public places like schools, church bulletin boards, dance studios, libraries, gyms, and post offices, or even dress up in character to pass out fliers. A website, Facebook page, or Twitter feed could also be very effective.
  4. Stay in touch. Repeat business is very important for a costume character business. If you get hired to entertain at a birthday party, that gig could result in repeat business every year for many years to come, so you will want to make sure the client remembers your business. A month or two prior to the party, you can send them a friendly reminder in a postcard in case they want to schedule you again.

Business Formation and Legal Considerations

Forming a legal business entity—such as an LLC—can protect your personal assets and give your character business credibility. Steps to consider include:

  • Register your business name with your state.
  • Get an Employer Identification Number (EIN) from the IRS if you plan to hire others.
  • Check zoning and home occupation laws if operating from home.
  • Consult an attorney about the use of character likenesses and avoiding copyright infringement. You may need to create original characters or secure appropriate licenses for copyrighted ones.
  • Draft service contracts to clarify event terms, payment, liability, and cancellation policies.

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Advertising Your Costume Character Business

Because a costume character business is not about selling a product, but rather an experience, advertising is even more important than it would otherwise be. It is of the utmost importance that the fact of your business’s existence reaches your key business demographic, which will be parents, party planning groups, children’s groups, and children’s activity centers. Some ways for doing this include:

  • Using effective marketing materials. Fliers, brochures, and business cards are still effective ways to get the word out about a business. For a costume character business, bright colors and bold graphics would be appropriate. However, you must be careful that none of your imagery or wording infringes on others’ copyrighted materials. Bring your business cards to all events to spread the word about your business.
  • Attend local events. Becoming a fixture at local community events can be a very effective way to grow your business. Craft shows, community festivals, and back-to-school fairs offer the opportunity for you to get your face known to the public and spread the word about your business. Having give-away items like balloons with your business card attached can also be an effective means of marketing.
  • Advertise selectively. Because a costume character business is a niche business, you will want to focus your attention on those most likely to use it and advertise where they are most likely to see it. Some ideas include magazines, newsletters, or websites targeted at parents; local television ads during children’s programs; and a website that includes games, downloadable coloring pages, and other interactive features that will appeal to children.
  • Increase word-of-mouth. Much of your business will also be dependent on effective word-of-mouth. Aside from offering a superior experience to those who hire you, you can also offer discounts to those who refer other parties to your business or who are repeat customers. Creating a mailing list to provide regular updates on new characters, features, or other details may also be helpful.

Building Partnerships and Expanding Reach

Strategic partnerships can expand your character business's visibility and generate steady work. Consider the following:

  • Partner with local party planners, event venues, and photographers.
  • Offer affiliate discounts or referral bonuses to allied businesses.
  • Work with schools, libraries, and nonprofit groups to offer educational or community programs.
  • Sponsor a booth or performance at local festivals, fairs, or parades.
  • Consider offering seasonal characters (e.g., Santa, Easter Bunny) to stay relevant year-round.

Managing Costume Inventory and Quality

The visual appeal of your character business is crucial. Investing in high-quality costumes and proper maintenance extends the life of your assets and enhances client satisfaction. Tips include:

  • Store costumes in a climate-controlled space to prevent damage.
  • Set a cleaning schedule, especially after outdoor or high-energy events.
  • Keep spare costume components for quick repairs.
  • Create custom designs to avoid copyright issues while offering unique experiences.
  • Use costume rental software to track availability, maintenance, and usage history.

Pricing Your Services Strategically

Pricing can depend on the complexity of the costume, the type of event, travel time, and experience. A few strategies to determine competitive and sustainable pricing include:

  • Benchmark local competitors.
  • Offer tiered pricing (e.g., basic visit vs. deluxe party package with games, music, and photo ops).
  • Include travel fees outside a standard radius.
  • Charge a deposit to reduce last-minute cancellations.
  • Consider offering monthly subscription packages for venues like schools or daycares seeking recurring visits.

Hiring and Training Performers

As demand grows, you may need to hire additional performers. Your performers are the face of your character business, so quality hiring and training are essential:

  • Screen candidates for background checks, especially when working around children.
  • Hold auditions to assess acting ability, crowd interaction, and comfort in costume.
  • Provide training in safety, customer service, and improvisation.
  • Develop a code of conduct for events and outline performance expectations in an employee handbook or contractor agreement.

Using Technology to Grow Your Business

Digital tools can simplify operations and improve client engagement:

  • Build a professional website with character bios, booking forms, and testimonials.
  • Use social media platforms to showcase photos, announce new characters, and share event recaps.
  • Set up email marketing to stay in touch with clients and promote seasonal offerings.
  • Implement online booking and payment systems for convenience.
  • Use inventory and scheduling software to manage bookings and costume availability efficiently.

Frequently Asked Questions

  1. Do I need a business license to start a character business?
    Yes, most local jurisdictions require a business license to operate legally. You may also need liability insurance and, in some cases, permits to perform in public.
  2. Can I use copyrighted characters in my business?
    Not without permission. Using well-known characters like Disney or Marvel figures without a license may lead to legal action. Consider using original characters or licensing legally.
  3. What types of insurance should I get?
    Liability insurance is essential. If you hire performers, workers' compensation may also be required. Consider event-specific insurance for high-risk performances.
  4. How much should I charge for a party appearance?
    Rates vary by region but generally start between $100–$250 per hour. Deluxe packages or add-ons (like storytelling or face painting) can increase pricing.
  5. How can I get repeat clients?
    Provide an exceptional experience, follow up with thank-you emails or postcards, and offer loyalty discounts. Building relationships is key in the character business.

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