A children’s museum business is a nonprofit organization dedicated to providing interactive, educational experiences for children and families.

These institutions focus on hands-on exhibits that promote learning through play, often covering topics like science, art, and culture.

Revenue streams typically include admission fees, memberships, school field trips, special events, and gift shop sales.

For instance, the Children’s Museum in Bloomsburg, Pennsylvania, reported approximately $476,000 in income and 41,533 visitors in 2023.

As of July 2025, there are 748 children’s museums across the United States.

Collectively, these museums employ over 12,000 staff members and generate more than $710 million in annual revenue.

Many museums also rely on philanthropic support, with some receiving government funding to supplement their income.

These institutions play a vital role in fostering early childhood development and community engagement through accessible and engaging learning environments.

Steps on How to Start a Children’s Museum Business

1. Conduct Market Research

Conducting market research for a children’s museum business begins with defining your target audience, typically families with young children, schools, and community groups.

Understanding their needs and preferences helps tailor exhibits and programs effectively.

Next, analyze competitors by visiting local museums and reviewing their offerings, pricing, and marketing strategies. This helps identify gaps and opportunities to differentiate your museum.

Collect data through surveys, focus groups, and community meetings to gather insights on desired features, pricing, and location preferences. Online research and social media can also reveal trends and interests.

Finally, use the collected data to create a clear business plan, focusing on audience engagement, funding strategies, and marketing to ensure your museum meets community needs and stands out in the market.

a. Who is the Target Market for Children’s Museum?

• Families with young children: Parents and caregivers seeking educational and fun activities for kids aged 0–12.
• Schools and educators: Teachers and school groups looking for interactive field trip experiences that align with learning goals.
• Community organizations: Groups interested in hosting events, workshops, or programs for children and families.
• Tourists and visitors: Families visiting the area who want engaging, family-friendly attractions.
• Special needs families: Parents seeking accessible, inclusive environments for children with disabilities.

b. Is Children’s Museum a Profitable Business?

Children’s museums can be profitable, though profitability varies based on location, size, and revenue diversification.

For example, The Children’s Museum in Bloomsburg, Pennsylvania, reported a 2023 income of approximately $476,000 and expenses of about $472,000, indicating a modest surplus.

Similarly, The Magic House in St. Louis generates 80% of its funding through earned revenue, including admissions and gift shop sales, without relying on ongoing public tax support.

Industry benchmarks suggest that children’s museums can generate annual revenues ranging from $500,000 to $2 million, with some well-established institutions exceeding this range.

Profitability is often influenced by factors such as visitor attendance, effective fundraising, and diversified revenue streams, including memberships, educational programs, and special events.

c. Are There Existing Niches in the Industry?

Yes, there are existing niches in the children’s museum industry. Here are five common ones:

• STEM-focused Museums: Emphasizing science, technology, engineering, and math through interactive exhibits and activities.
• Art and Creativity Museums: Centered on visual arts, crafts, and creative expression for children.
• Nature and Environmental Museums: Highlighting ecology, conservation, and outdoor exploration.
• Cultural and History Museums: Focusing on local history, diverse cultures, and heritage education.
• Sensory and Special Needs Museums: Designed to be inclusive and accessible for children with sensory processing disorders or disabilities.

d. Who are the Major Competitors?

• The Children’s Museum of Indianapolis – Indiana
• Boston Children’s Museum – Massachusetts
• Children’s Museum of Houston – Texas
• The Strong National Museum of Play – New York
• Please Touch Museum – Pennsylvania
• Chicago Children’s Museum – Illinois
• Discovery Cube – California
• Children’s Museum of Manhattan – New York
• Minnesota Children’s Museum – Minnesota
• The Magic House – Missouri
• Miami Children’s Museum – Florida
• Children’s Museum of Denver – Colorado
• Children’s Museum of Pittsburgh – Pennsylvania
• Kidspace Children’s Museum – California
• Children’s Museum of Atlanta – Georgia
• COSI (Center of Science and Industry) – Ohio
• New Children’s Museum – California
• Children’s Museum of the Upstate – South Carolina
• Bay Area Discovery Museum – California
• Children’s Museum of Tucson – Arizona.

e. Are There County or State Regulations or Zoning Laws for Children’s Museums in the United States?

Yes, children’s museums in the United States are subject to county and state regulations, including zoning laws, building codes, and safety standards.

These regulations ensure that museums operate safely, protect visitors, and fit appropriately within their communities.

Zoning laws typically dictate where a museum can be located—often requiring placement in commercial, cultural, or mixed-use zones rather than strictly residential areas.

Building codes for children’s museums address accessibility under the Americans with Disabilities Act (ADA), fire safety requirements, occupancy limits, and structural standards.

Museums must provide safe, accessible entrances, restrooms, and exhibit spaces for children with disabilities.

Fire safety includes proper exits, alarms, and emergency preparedness plans.

Inspections by local authorities are common before and after opening to verify compliance.

Additional regulations may cover health and sanitation standards, especially for museums with hands-on exhibits involving food, water, or sensory materials.

Licensing and permits related to business operation, signage, and special events may also apply depending on the state or county.

In some cases, museums must adhere to specific educational or nonprofit guidelines, especially if they seek tax-exempt status or public funding.

f. Is There a Franchise for Children’s Museum Business?

There are no widely known traditional franchise models specifically for children’s museums, as most operate as nonprofit or community-focused institutions.

However, there are organizations and companies that offer museum-like franchise or licensed concepts targeting children’s education and entertainment that share similarities.

Here are 10 examples of franchise or branded concepts related to children’s museum-style learning and play:

• KidZania – Interactive global edutainment centers for kids
• LEGOLAND Discovery Center – LEGO-themed educational play centers
• Exploration Place – Science and discovery centers (some franchised/licensed)
• Discovery Cube – Science museums with outreach programs
• Imagination Playground – Mobile play installations for schools and museums
• The Little Gym – Children’s physical development and learning centers
• Gymboree Play & Music – Early childhood education and play franchises
• Mad Science – Science enrichment franchises for children
• Play-Well TEKnologies – STEM-focused LEGO workshops/franchise
• Museums with Licensed Exhibits – Various museums hosting traveling/licensed interactive exhibits.

g. What Do You Need to Start a Children’s Museum Business?

• Clear Mission and Vision
• Business Plan
• Suitable Location
• Funding and Capital
• Engaging Exhibits
• Staff and Volunteers
• Licenses and Permits
• Insurance
• Marketing Strategy
• Operational Policies.

2. Choose a Memorable Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with.

It is essential that the name you come up with can easily be pronounced, is unique and easily memorable. Some of the catchy business name ideas suitable for a children’s museum are;

• Elite® Children’s Museum, Inc.
• Collins Power™ Children’s Museum, LLC
• Star Power® Children’s Museum, Inc.
• Victory Anne© Children’s Museum, Inc.
• Tim Modi™ Children’s Museum, LLC
• Kid Dynamics® Children’s Museum, Inc.
• Nathan Fred® Children’s Museum, Inc.
• Powerhouse® Children’s Museum, Inc.
• All-Star Spirit™ Children’s Museum, LLC
• Diego Central™ Children’s Museum, LLC
• Blue Apex© Children’s Museum, Inc.
• Superstar® Children’s Museum, Inc.
• Rock Prodigy™ Children’s Museum, Inc.
• Bob Harry™ Children’s Museum, LLC
• The Elevation® Children’s Museum, Inc.
• High Flyer© Children’s Museum, Inc.
• James® Children’s Museum, Inc.
• Kerry Bauer© Children’s Museum, Inc.
• Ashely Norman® Children’s Museum, Inc.
• Victory Vortex™ Children’s Museum, Inc.

3. Register Your Business

a. What Type of Business Structure is Best for Children’s Museum Business?

The best business structure for a children’s museum is typically a nonprofit organization, often registered as a 501(c)(3) tax-exempt entity.

This status allows the museum to receive tax-deductible donations, apply for grants, and focus on educational and community missions rather than profit.

Nonprofit status also helps build public trust and attract volunteers, essential for sustainability.

Alternatively, some children’s museums operate as government entities or through partnerships with local municipalities, which can provide stable funding and access to public resources.

This model often supports museums embedded within community centers or cultural districts.

In some cases, a for-profit structure might be chosen, especially for smaller, privately owned museums or interactive centers focusing on entertainment and retail revenue.

However, this approach faces challenges in accessing grants and donations and usually emphasizes profitability over educational outreach.

The choice depends on funding goals, mission focus, and operational preference.

b. Steps to Form an LLC

• Choose a Name for Your LLC.
• File Articles of Organization.
• Choose a registered agent.
• Decide on member vs. manager management.
• Create an LLC operating agreement.
• Comply with other tax and regulatory requirements.
• File annual reports.

c. What Type of License is Needed to Open a Children’s Museum Business?

• Business License
• Zoning Permit
• Building Permit
• Occupancy Permit
• Health and Safety Permit
• Fire Department Clearance
• Sales Tax Permit
• Nonprofit Tax-Exempt Status (if applicable)
• Food Service Permit (if offering food or snacks)
• Signage Permit.

d. What Type of Certification is Needed to Open a Children’s Museum Business?

• CPR and First Aid Certification (for staff)
• Child Care or Early Childhood Education Certification (optional but beneficial)
• Safety Inspection Certification (building and fire safety)
• Food Handler Certification (if serving food)
• Accessibility Compliance Certification (ADA standards).

e. What Documents are Needed to Open a Children’s Museum Business?

• Business Plan
• Articles of Incorporation
• Bylaws or Operating Agreement
• IRS Tax-Exempt Status Documentation (501(c)(3))
• Business License
• Zoning and Land Use Permits
• Building Permits and Approvals
• Occupancy Permit
• Fire Safety Inspection Reports
• Health Department Permits
• Insurance Policies (liability, property, workers’ comp)
• Lease or Property Ownership Documents
• Vendor and Supplier Contracts
• Staff and Volunteer Agreements
• Marketing and Promotional Materials.

f. Do You Need a Trademark, Copyright, or Patent?

A children’s museum may need a trademark and/or copyright, but typically not a patent.

A children’s museum may want to trademark its name or logo to prevent others from using the same or similar names or logos.

A children’s museum may want to copyright original materials such as training manuals, brochures, newsletters, or other written or artistic works it creates, to prevent others from using or reproducing them without permission.

Children’s museum typically does not create new or unique inventions or discoveries that would require patent protection.

4. Cost Analysis and Budgeting

a. How Much Does It Cost to Start a Children’s Museum Business?

When it comes to starting a children’s museum, the startup costs could range from as low as $150,000 to over $500,000.

This is so because the cost of securing a facility, equipment, furnishing and startup inventory for high end children’s museum is on the high side.

b. What are the Costs Involved in Starting a Children’s Museum

• Facility Rent or Purchase – $3,000 to $15,000 per month (varies by location)
• Exhibit Design and Construction – $50,000 to $500,000+
• Licenses and Permits – $1,000 to $5,000
• Insurance (Liability, Property, Workers’ Comp) – $5,000 to $20,000 annually
• Staff Salaries – $100,000 to $300,000 annually (depending on size)
• Marketing and Advertising – $5,000 to $30,000 initially
• Furniture and Fixtures – $10,000 to $50,000
• Technology and Security Systems – $5,000 to $25,000
• Utilities and Maintenance – $1,000 to $5,000 monthly
• Initial Inventory (Gift Shop, Educational Materials) – $5,000 to $20,000
• Opening party – $5,000
• Miscellaneous – $5,000

c. What Factors Determine the Cost of Opening a Children’s Museum Business?

• Location and Facility Size
• Scope of Exhibits
• Regulatory Compliance
• Staffing Needs
• Marketing Strategy
• Technology and Security
• Insurance Requirements
• Operational Scale
• Funding Sources
• Community Engagement

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

Yes, you will need to build or lease a facility for your children’s museum. The cost of building a facility will depend on several factors, such as the size of the facility, location, and the types of amenities and services you plan to offer.

If you plan to build a new facility, the cost will likely be higher than if you lease or renovate an existing facility.

e. What are the Ongoing Expenses of a Children’s Museum Business?

• Payroll and employee benefits
• Facility and equipment maintenance
• Utilities such as electricity, gas, water, and sewer.
• Property taxes
• Insurance
• Equipment and supplies
• Marketing and advertising
• Professional fees such as accounting, legal, and consulting services.
• Membership administration

f. What is the Average Salary of your Staff?

• Executive Director: $80,000 to $150,000 annually
• Development/Fundraising Director: $60,000 to $110,000 annually
• Education Director/Manager: $50,000 to $90,000 annually
• Exhibit Designer/Coordinator: $45,000 to $75,000 annually
• Marketing/Communications Manager: $45,000 to $70,000 annually
• Program Coordinator: $35,000 to $55,000 annually
• Visitor Services Staff/Front Desk: $25,000 to $40,000 annually.

g. How Do You Get Funding to Start a Children’s Museum Business

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Source for soft loans from your family members and your friends.

5. Write a Business Plan

a. Executive Summary

St. James™ Children’s Museum, Inc., based in Nashville, Tennessee, is a nonprofit organization dedicated to providing interactive, educational experiences for children and families.

Our mission is to foster curiosity, creativity, and learning through hands-on exhibits focused on science, art, culture, and local heritage.

Strategically located in a family-friendly area, the museum aims to attract both residents and tourists, offering engaging programs, school field trips, and community events.

Revenue streams include admissions, memberships, gift shop sales, birthday parties, and philanthropic support.

With a strong commitment to accessibility and inclusion, St. James™ Children’s Museum will collaborate with local schools and organizations to enhance educational outreach.

Initial funding will cover exhibit design, facility setup, staff hiring, and marketing efforts.

Our goal is to become a vibrant hub for childhood learning and community engagement in Nashville.

b. Products and Service

St. James™ Children’s Museum, Inc. offers interactive, hands-on exhibits that inspire learning in science, art, culture, and local history.

Our services include educational programs for schools, birthday party hosting, community workshops, and special events.

We provide membership options for families, guided tours, and a gift shop featuring educational toys and souvenirs.

Focused on accessibility and engagement, our museum creates a fun, inclusive environment where children and families can explore, discover, and grow together.

c. Mission Statement

At St. James™ Children’s Museum, Inc., our mission is to ignite curiosity and inspire lifelong learning in children through hands-on, interactive exhibits and programs.

We are dedicated to fostering creativity, critical thinking, and cultural awareness in a safe, inclusive environment.

By engaging families, schools, and the community, we aim to provide meaningful educational experiences that empower children to explore, discover, and grow, nurturing their potential and enriching Nashville’s vibrant community.

Vision Statement

Our vision at St. James™ Children’s Museum, Inc. is to become a leading center for childhood learning and discovery in Nashville and beyond.

We envision a dynamic, inclusive space where all children regardless of background or ability can explore their interests, spark their imagination, and develop a love for learning.

Through innovation, community partnerships, and educational excellence, we aim to inspire future generations of creative thinkers and problem-solvers.

d. Goals and Objectives

The goals and objectives of a children’s museum are to provide engaging, hands-on learning experiences that foster creativity, curiosity, and critical thinking in children.

The museum aims to support early childhood development, enhance classroom learning through interactive exhibits, and promote inclusivity and accessibility for all families.

Children’s museum also strives to build strong community partnerships, encourage lifelong learning, and serve as a safe, inspiring space where children can explore the world around them through play and discovery.

e. Organizational Structure

• Executive Director
• Development/Fundraising Director
• Education Director/Manager
• Exhibit Designer/Coordinator
• Marketing/Communications Manager
• Program Coordinator
• Visitor Services Staff/Front Desk.

Marketing Plan

a. SWOT Analysis

Strength:

• Fully hands-on, play-based exhibits that foster learning a proven draw for families and educators.
• Nonprofit structure enhances eligibility for grants, tax-deductible donations, and public trust.
• Brand-new, inclusive facility design aligned with ADA standards encourages accessibility.
• Strong potential for community engagement via school partnerships, birthday programming, and events.

Weakness:

• Initial operating deficits and high upfront costs for exhibit development, marketing, staffing, and permits.
• Limited name recognition compared to established institutions like Adventure Science Center in Nashville.
• Resource dependency and volunteer recruitment challenges typical of nonprofit startups.

Opportunities:

• Expand outreach through school district collaborations, corporate sponsors, and membership drives.
• Explore mobile exhibits or pop-up programming targeting underserved neighborhoods.
• Integrate emerging interactive technologies – AR/VR and digital media to enhance visitor experiences.

Threat:

• Growing competition from informal learning centers, other museums, and entertainment venues.
• Economic downturns or inflation reducing discretionary spending on family outings.
• Changing educational standards may require frequent exhibit updates to stay relevant.
• Liability risks from interactive exhibits and safety incidents unless robust protocols are in place.

b. How Do Children’s Museums Make Money?

Children’s museums generate revenue through a combination of earned income, donations, and grants. Here are the main ways they make money:

• Admission Fees:
• Membership Programs:
• Gift Shop Sales
• Birthday Parties and Facility Rentals
• Educational Programs and Workshops
• Grants and Government Funding
• Corporate Sponsorships
• Donations and Fundraising
• Café or Concessions (if available)

Successful children’s museums diversify income across these streams to maintain financial sustainability.

c. Payment Options

• Credit or Debit Card
• Cash
• Electronic Payment Systems such as PayPal or Venmo
• Checks
• Gift Cards
• Bank Transfers.

d. Sales & Advertising Strategies

• Utilize online advertising platforms such as Google Ads, social media ads (Facebook, Instagram), and display advertising to reach your target audience.
• Maintain an active presence on popular social media platforms like Facebook, Instagram, and Twitter.
• Regularly post engaging content, including photos, videos, promotions, and updates about upcoming events or attractions.
• Encourage customers to share their experiences and use relevant hashtags to expand your reach.
• Collaborate with local influencers or bloggers who have a significant following among your target audience.
• Encourage your existing customers to refer their friends and family to your children’s museum.
• Forge partnerships with complementary businesses in your area
• Organize special events, themed nights, or promotional offers to attract new customers and create excitement.

Financial Projection

a. How Much Should You Charge for Your Product/Service?

A children’s museum owner should charge admission between $13 to $15 per person, with annual memberships around $150 per family.

Birthday party packages can range from $200 to $800, depending on size and features.

These prices align with industry standards and ensure operational sustainability.

Additional revenue can come from gift shop sales, workshops, and special events.

Pricing should reflect the value of interactive, educational experiences while remaining affordable for families.

Offering member discounts and school rates also helps increase access and attendance.

b. How Much Profit Do Children’s Museum Owners Make a Year?

Children’s museum owners, especially nonprofits, may not generate large personal profits.

However, well-managed museums can earn annual revenues from $500,000 to over $5 million.

After expenses, net surpluses may range from $50,000 to $500,000, which are often reinvested into operations, staff, and programming rather than personal income.

c. What Factors Determine the Amount of Profit to Be Made?

• Location
• Admission and Program Pricing
• Visitor Volume
• Operational Costs
• Exhibit Quality and Innovation
• Grant and Donation Support
• Membership Sales
• Retail and Rentals
• Community Partnerships
• Marketing Effectiveness

d. What is the Profit Margin of a Children’s Museum?

On average, the profit margin for children’s museums especially nonprofit models ranges from 5% to 15%, depending on size, location, and funding.

While many reinvest earnings into programming and operations, efficient management, strong community support, and diverse revenue streams can help sustain a modest but stable surplus annually.

e. What is the Sales Forecast?

Below is the sales forecast for a children’s museum. It is based on the location of the business and other factors as it relates to such startups in the United States.

• First Fiscal Year (FY1): $250,000
• Second Fiscal Year (FY2): $380,000
• Third Fiscal Year (FY3): $460,000

6. Set Up your Shop/Office

a. How Do You Choose a Perfect Location for Children’s Museum Business?

• The demography of the location.
• The demand for the services offered by children’s museums in the location
• The purchasing power of businesses and the residents in and around the location
• Accessibility of the location
• The number of children’s museums, and other related businesses in and around the location
• The local laws and regulations in the community/state
• Traffic, parking, and security et al.

b. What State and City is Best to Open a Children’s Museum Business?

• Ann Arbor, Michigan
• Dallas, Texas
• Plano, Texas
• Madison, Wisconsin
• Irvine, California
• Overland Park, Kansas
• Cary, North Carolina
• Franklin, Tennessee
• Bellevue, Washington
• Newton, Massachusetts.

c. What Equipment is Needed to Operate a Children’s Museum?

• Interactive exhibit materials and displays
• Educational toys and learning tools
• Furniture (tables, chairs, shelving)
• Computers and digital technology (for ticketing, administration, and interactive exhibits)
• Security systems (cameras, alarms)
• Cleaning and maintenance supplies
• Office equipment (printers, phones, desks)
• Audio-visual equipment for presentations and events
• Safety gear (first aid kits, childproofing materials)
• Point of Sale (POS) systems for admissions and gift shop sales.

7. Hire Employees

If you are looking to start a children’s museum, you should make plans to hire employees because running such a business involves many complex and ongoing tasks that one person cannot handle alone.

From managing daily operations, ensuring safety, and maintaining interactive exhibits to developing educational programs and engaging the community, a skilled team is essential.

Each area requires dedicated attention to provide a high-quality experience for children and families.

8. Launch the Business Proper

Organizing an opening party for a new children’s museum can be a good way to introduce your museum to the community and create awareness about your services.

If you want to organize a proper launch for your children’s museum, then you must make sure to invite potential clients (families), key stakeholders (schools, children’s clubs, and organizations) and other members of the community who may be interested in your services.

a. What Makes a Children’s Museum Successful?

• Engaging, interactive exhibits that stimulate learning and creativity
• Strong community involvement and partnerships with schools and organizations
• Accessible and inclusive environment for children of all abilities
• Effective marketing and outreach to attract diverse audiences
• Skilled, passionate staff committed to education and visitor experience
• Diverse revenue streams including admissions, memberships, events, and donations
• Regularly updated programs and exhibits to keep content fresh and relevant.

b. What Happens During a Typical Day at a Children’s Museum?

A typical day at a children’s museum begins with staff preparing exhibits, cleaning spaces, and setting up educational materials.

As doors open, visitor’s families, school groups, and community members arrive to explore hands-on exhibits that encourage creativity and learning.

Staff and volunteers facilitate activities, guide tours, and ensure safety while engaging children with interactive programs.

Birthday parties and special events may also be scheduled throughout the day.

Behind the scenes, administrative tasks like managing admissions, restocking the gift shop, and coordinating upcoming events take place.

Staff continually assess visitor needs and maintain exhibits, ensuring a smooth, enriching experience for everyone.

c. What Skills and Experience Do You Need to Build a Children’s Museum?

• Educational background in early childhood development or museum studies
• Experience in nonprofit management and fundraising
• Strong leadership and team management skills
• Knowledge of exhibit design and interactive learning principles
• Marketing and community outreach expertise
• Financial planning and budgeting abilities
• Facility management and safety compliance knowledge
• Grant writing and donor relations experience
• Customer service and visitor engagement skills
• Project management and event coordination experience.
• Experience in managing staff, schedules, and day-to-day operations.