How to Start Your Own Party Rental Business

by

Starting a party rental business can be a fun, fast way to make money. With some smart decisions about which party rentals you want to provide for your customers, and some good social marketing skills, you can start earning money as a part-time or full-time income, just as soon as next weekend! The party rental industry is worth billions of dollars worldwide every year, with much of that revenue coming from small business owners like you who give the people what they want: great event items. This guide will teach you everything you need to get started.

Being able to work from home is usually only a dream for many. And it’s even harder if you don’t have any technical skills. But you know what? The good side of it is that you can start doing what you really love and maybe, just maybe, make some money on it! If you want to figure out how to start a party rental business your main focus should be on learning how to work with people. Being a party rental business owner means that you’ll need to think about how to start your own party rental business strategically. So what is a good strategy?

Starting a party rental business from home can be a great, time-saving alternative to working full-time 9-5. But how do you decide what party rental business is the best fit for you? Read this article on how to start a party rental business from home and find out just how easy it can be.

Learn how to start a party rental business, start a party rental business, starting a party rental business. This step by step guide will walk you through the process of starting your own party rental business by explaining each detail in an easy to understand way. We will walk you through the precise steps required to get your party rental business off the ground and running your first profitable month in business.

Business Overview

Party rental businesses offer a large volume of expensive supplies that are must-haves for larger parties. These are supplies that occasional party hosts couldn’t justify buying themselves, like tents, bounce houses, inflatable slides, chairs, tables, lighting, decorations, linens, and more. These businesses often have a comprehensive inventory of items for a host to choose from, allowing a customer to do nearly all of their supply shopping from one business.

As part of the rental service, a business will deliver and often set up the equipment. After the event, pickup is also included in the rental cost, though some customers may choose to pick up and drop off smaller pieces of equipment.

Industry Summary

From 2013 to 2018, the party supply rental industry has undergone steady growth. According to IBIS World, the industry experienced an annual growth of 4.5 percent during that time, and the number of businesses increased to 12,583. Industry employment also increased to 54,606, and in 2018, the industry brought in $6 billion in revenue.

The industry’s growth correlates with the increase in disposable income and corporate profit from 2013 to 2018. With more disposable income and profit, more people and corporations host parties and events, and they’re more likely to make those events larger and rent more party equipment as a result.

According to Current, several major trends are currently shaping the event rental business industry. Event hosts are increasingly turning to new, creative, and non-traditional venues. These non-traditional venues can include barns, warehouses, lofts, and different outdoor settings. They give rental businesses a chance to create setups that are unique and work with these different settings.

Party hosts are also increasingly focused on sustainability. Party rental businesses can embrace this trend by replacing plastic tablecloths with cloth ones, supplying energy-saving lights, and even using electric delivery vehicles to cut back on fuel use.

With the constant development of technology, there’s always a demand for the latest technological party equipment, like lighting and AV supplies. Rental businesses that can clear out old equipment and invest in new technological equipment will probably see more bookings than companies that have outdated equipment.

Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

Luckily we have done a lot of this research for you.

What are the costs involved in opening a party rental business?

Costs can be quite high. You’ll need to buy all of the equipment to start, and then find a place to house it. Just a single tent can cost thousands of dollars. Party rentals don’t necessarily need a retail space, but you may need one to establish credibility to would-be customers. If you can’t afford to rent a retail space, you can store the equipment in a storage facility, and then have appointment-only showings to potential renters.

What are the ongoing expenses for a party rental business?

You can expect the following ongoing expenses if you own a party rental business:

  • Equipment maintenance/replacement costs
  • Rent/storage fees
  • Employee salaries
  • Website maintenance/advertising costs

Who is the target market?

The target market depends on where you’re located. If you’re operating in or near a high-income neighborhood, then your clients will likely be homeowners who throw elaborate events for themselves and their loved ones. If you’re in a middle-class neighborhood, you may find that your clientele are the larger organizations (e.g., schools, the VA, community boards, etc.) holding major gatherings from fundraisers to festivals.

How does a party rental business make money?

Party rentals make money by purchasing equipment at wholesale prices and then renting that equipment out for a set fee. Renters will normally pay a deposit or leave their credit card information to cover any accidental or intentional damage the equipment may suffer while the renter has it in their possession.

How much can you charge customers?

This is heavily dependent on where you work. Check rates in your area to see what other businesses are charging before you set your fees in stone. In Michigan, a 20 x 20 foot wedding tent costs $3500 dollars to start and rents for about $225 per weekend. In a wealthier city, you may be able to charge double this amount.

How much profit can a party rental business make?

Your profit is determined by how long your equipment lasts, and how much you charge for each rental. In the case of the wedding tent, you would need to rent a $3500 tent (at $225 a weekend) for at least 16 weekends before you started seeing a profit. However, seeing as how a wedding tent can handle far more than 17 weekends, then you enjoy practically unlimited profit after that.

How can you make your business more profitable?

Party rental businesses can consider branching out into everything that an outdoor event may need. From portable toilets to caterers/bartenders, there’s a lot of needs to be met for the many party throwers of the world.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Party Rental Business Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

It’s very important to secure your domain name before someone else does.

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your party rental business is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.

 Understand the Industry

A party rental business is indeed a good way to make extra money and in the long run can turn into a lucrative, full-time business. While it is a business that can be started from home, which can begin by renting the equipment that is needed to set up the parties. Eventually, however, you are going to want to get your own supplies that can be rented to those who are planning on having parties.

Interesting Statistics About the Industry

It is a business that has a lot of potentials and can grow from a small business to a large corporation done the right way. While it is necessary to learn the rudiments of the business before starting in order to achieve success. Getting in touch with wholesalers who deal in party supplies, brainstorming new ideas and working with complementary businesses will help a business flourish.

Whilst the revival and economic recovery, revenue contracted slightly over 2011 as businesses and consumers wary of the recent recession held off on event spending. However, renewed confidence in the economy in subsequent years has encouraged business and consumers to host events that require products from the Party Supply Rental industry. It has also been projected that continued economic recovery will likely aid growth through 2022.

This is due to the fact that with higher personal and corporate income, households and businesses are projected to expand their party budgets, which will allow them to spend more on rentals beyond basic necessities to full-service products.

The industry has a moderate level of capital intensity. In 2015, for every $1.00 spent on labour, operators are expected to spend $0.19 in capital investment. In general, the capital requirements that are necessary to begin operations are relatively minimal.

To begin a small party rental company that specializes in household parties, entrants can spend as little as $5,000, but companies will typically invest at least $15,000 in order to have a more extensive product and equipment range for their clients.

Decide What Niche to Concentrate On

Just like in other businesses, there are a variety of niches that one can avail himself/herself of especially in this industry. Those niches if well planned and followed to the latter can propel a person’s prosperity in the business and pave ways for him/her even in the midst of competitors and brands that have not only made a mark but also a name for themselves in the industry.

Here are some niches/areas that a party rental business can be specialized in;

The Level of Competition in the Industry

Parties happen every now and then, hence boosting the acceptability of this business, and every businessman or businesswoman with foresight have found it lucrative enough and are ready to venture into it. But, Surviving in the business such as in most others in the business world as a party rental business requires a lot, in fact more than, your expertise.

Because it is a business that has direct bearing on people, and therefore having the right connection and knowing how well to network with those that matter and delivering standard rents at all times can aid a person significantly in the business.

Although, there are lot of big time investors who have a stake in the industry; there is always a room big enough to accommodate both the upcoming businesses and the established ones. As a beginner in this industry, you have to create a niche that is well acceptable and also serves the interest of those in lower classes before expanding your base and your reach.

Conclusion

Setting up a party rental business is one of the best money making ideas for a small business that allows you to work from home. Party rental business ideas can either be part time or full time and can make extra income. Working hours are flexible and it offers you an opportunity to work while spending more quality time with your family.

You can make a lot of money in the party rental business. You got to remember that it’s actually not just bringing people together, it’s about delivering good customer service. It’s about getting responsible people, it’s about making your customers feel comfortable with whatever you’re offering for them. By doing that, you’ll actually be able to maximize your profit and be able to build a sustainable business that will benefit you and also benefit your community.

Leave a Comment