Are you interested in starting a party rental business from home? If YES, here is a complete guide to starting a party rental business with little money and no experience.
Okay, so we have provided you an in-depth sample party rental business plan template. We also took it further by analyzing and drafting a sample party rental marketing plan backed up by actionable guerrilla marketing ideas for party rental businesses. In this article, we will be considering all the requirements for starting a party rental business. So put on your entrepreneurial hat and let’s proceed.
Why Start a Party Rental Business?
A party as it is known is a gathering which consists of people who have been invited by a host for the purposes of socializing, conversation, or recreation. Typically and majorly it features foods, and beverages, music drinks etc.
While some parties are held in honour of a specific persons, day, or event, such as a birthday party, a. Parties of all this kinds are often called “celebration.” A party could also be Public parties which are sometimes held in restaurants, beer gardens, pubs, bars or nightclubs and people attending such parties may be charged an admission/entrance fee by the host. It is a well-known fact that these parties are as aged as the existence of man and will always occur when there is need for celebrations.
Thus anybody throwing a party, wants the party to be a success, and they have no option than to spend money on all the materials needed for the success of the party, and in most cases these materials are usually expensive and not really handy hence the need for Party Rental Businesses. The party rental businesses thus provides the necessary equipment for a party such as chairs, tables, tents, cooking equipment and the likes will be required for the success of the event.
Generally a Party Equipment rental services involves, renting or leasing equipment like chairs, tables, commercial cooking equipment, tents and so on, to individuals, corporate organisations and so on, for the smooth running of an event or occasion.
Starting a Party Rental Business from Home – A Complete Guide
- Industry Overview
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 Party Rental 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 2020.
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.
The industry is growing, as many and more people are venturing into the party rental business even in developed economies like the United States. Christine Wehrman, ARA’s executive vice president and CEO, said about the booming industry: “The industry remains vibrant and strong, and will benefit even more in the coming years due to non-residential growth, supplemented with residential construction growth and the strong influence of the energy boom in North America,”
Many persons are encouraged to venture into the business due to its viability, accessibility and the output in terms of monetary that could be accrued from it, to say the least it is the business industry for the future.
Starting a Party Rental Business – Market Research and Feasibility Studies
- Demographics and Psychographics
The demographic and psychographic composition of those who need the services of party rental business is multi-faceted. In fact it cuts across all aspects of human endeavours and it includes the public sector, the organized private sector, households, communities and people of different class and from all walks of life.
Below is a list of the people and organizations that need the services of private security companies;
- The public sector (public facilities et al)
- Organized private sector (Corporate organizations)
- Businessmen and Businesswomen
- University Campuses and Schools
- Event Planners
- Estates and Communities
- Religious Centres
- Sport Organizations
- Cultural organizations
- Night Clubs
- Press Clubs etc.
List of Niche ideas Within the Party Rental Business That You Can Specialize in
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;
- Wedding rentals
- Birthday rentals
- Corporate event rentals
- Other event rentals
- Party supply rental
- Corporate party and banquet equipment rental
- Wedding supply rental etc.
The Level of Competition in the Party Rental 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.
List of Well – Known Brands in the Party Rental Industry
There are no industries in the world without the big names. These big names are the gig businesses, the movers and shakers of the industry that has over the years continue to wax stronger and stronger in the business despite any challenges. The party rental business is also not an exception, as there are big party rental businesses therein too.
Here are some of the well known party rental businesses in the United States of America;
- United rentals
- Sunbelt Rentals
- Hertz Equipment Rental Corp
- Home depot rentals
- Blueline Rental
- Aggreko North America
- H&E Equipment Services
- Sunstate Equipment Services
- NES Rentals
- NEFF Rentals
- Maxim Crane Rental Corp.
- Holt Cat
Starting a party rental business is indeed a cost-consuming one, and needs a lot of planning and logistics to be put appropriately in place. It is indeed a serious business and requires a lot of critical economic planning and analysis which must be conducted to ensure that the risks and other threats associated with starting a business from the scratch or investing in a business idea are reduced to the barest minimum.
If you are considering starting a party rental business in the United States, your concern should not just be limited to just acquiring an office facility and equipping the facility, you must really be concerned about attracting clients, getting referrals from them and landing more projects in the process.
Averagely, it might not cost much to start a party rental business largely due to the fact that there are no much technicalities involved if the necessary logistics can be put in place. But if you have a dedicated staff that knows the nitty-gritty of the business and the processes involved in winning and executing a particular project, you are sure of setting yourself up for the path to glory.
Is a Party Rental Business Worth Starting from Scratch or is Buying a Franchise Better?
Although there is the possibility of buying a franchise from a successful party rental business or even partnering with a big rental company if you are interested in only owning an investment in the party rental industry.
Certainly, we are motivated to start a business based on various factors and incentives you’re your goal is to build a business that you intend controlling, a business brand that you hope to one day transfer ownership to your children and perhaps also sell franchise in future, then starting from the scratch should be your best bet. But if you only interested in making money and multiplying your wealth, then you may as well buy the franchise of a successful party rental company that is willing to sell its franchise.
Possible Threats and Challenges You Will Face When Starting a Party Rental Business
Generally in the party rental industry, both the already established ones and the upcoming ones are subject to threat and challenges from government policies, global economic downturn which usually affects spending and unforeseen natural disasters (disasters that may cause setback).
Another threat which is major is that of competing with well-known and established party rental companies in the industry.
Starting a Party Rental Business from Home – Legal Matters
- Best legal entity to use for a Party Rental Business
Starting a party rental company takes a lot of time, and it is indeed a serious business which has basically to deal with human relations, this is why the legal entity you choose will go a long way to determine how big the business to can grow. Choosing a legal entity for a business such as a private rental business is not difficult in as much as you follow the right steps.
As far as choosing a legal entity for your party rental business is considered, it is either you choose a general partnership, a limited partnership, an LLC, a “C” corporation, or an “S” corporation. You must know that all these entities for different business has its own advantages and disadvantages; which is why you must weigh your options properly before making your choice on the legal structure to build your party rental business on.
These are some of the factors you should consider before choosing a legal entity for your party rental business, which includes but not limited to: limitation of personal liability, ease of transferability, admission of new owners and investors’ expectation and tax issues. You can start your party rental business as a limited liability company (LLC) and in future convert it to a ‘C’ corporation or even a ‘S’ corporations especially when you have the plans of going public.
Upgrading to a ‘C’ corporation or ‘S’ corporation will afford you the opportunity to grow your party rental company so as to compete with major players in the rental industry; you will be able to generate capital from venture capital firms, stock market, you will enjoy separate tax structure, and you can easily transfer ownership of the company; you will enjoy flexibility in ownership and in your management structures as well.
Catchy Business Name ideas Suitable for a Party Rental Business
As far as choosing a name for your party rental business is concerned, you have to choose a name that is catchy and definitely attract lots of customers to you. This is so because; a name only can attract people to your company. Therefore, you must be meticulous and selective in your choice of names, and it is needed to get the business on track and set it up on a sure path to greatness.
Here are some catchy business name ideas you can choose for your party rental company;
- Regal rents
- Classical Party rentals
- Wash First Rentals
- WWW Party rentals services
- Jackson’s Party rentals
- A rentals coop.
- Caroline Party rentals
- G&F Rents
The Best Insurance Needed for a Party Rental Business
In the United States and of course in most countries of the world, you can’t operate a business without having some of the basic insurance policies that is required by the industry you want to operate from. Besides, the nature of the rental industry requires that you have the necessary insurance in place, to ensure that everything done by you is insured most especially since it’s an industry that deals mostly with human relations.
So, it is important to create a budget for insurance and perhaps consult an insurance broker to guide you in choosing the best insurance policies for your party rental company; they will guide you aright by assessing the risks involved in the industry, and tell you the best insurance to go for.
Here are some of the basic insurance covers that you should consider purchasing if you want to start your own party rental business in the United States of America;
- General insurance
- Health insurance
- Risk Insurance
- Payment protection insurance
- Liability insurance
- Workers compensation
- Overhead expense disability insurance
- Business owner’s policy group insurance
Intellectual Property Protection and Trademark
Though, intellectual protection might not be a necessary step to take in this industry. It is pertinent that you make sure that all equipment and tools used by your company are properly gotten, and all the necessary steps required to checking its originality and authenticity in the state that you reside is followed to the latter.
Is Professional Certification Needed to Start a Party Rental Business?
The rental industry is one of the industries that is highly regulated so as to prevent costly breaches as it relates to persons and their properties. It is for this reason that if you are looking towards beginning a party rental business, then you should acquire some necessary qualifications that is needed to ensure that you remain tops in whatever you do.
Though in the United States of America, the most recognised examination that must be taken is the Certified Event Rental Professional (CERP) organised by the American Rental Association (ARA). It makes you more professional, and shows that you have been certified to venture into the business.
List of Legal Documents You Need to Run a Party Rental Business
In The United States of America and of course all the world, the rental industry is amongst the industries that is highly regulated so as to avoid costly breaches in the country that could result from not paying attention to details. If you are considering starting a party rental company, then you are expected to meet the legal documents requirements as stipulated in the constitution of your country.
These are some of the basic legal document that you are expected to have in place if you want to start a party rental company in the United States of America;
- Certificate of Incorporation
- Security Clearance Certificate
- Business License
- Business Plan
- Non – disclosure Agreement
- Memorandum of Understanding (MoU)
- Employment Agreement (offer letters)
- Operating Agreement
- Company Bylaws
- Operating Agreement for LLCs
- Insurance Policy
Writing a Business Plan for your Party Rental Business
The importance of writing a business plan for your industry both for the purpose of documentation and guidance on the business you are about to venture into cannot be over-emphasised.
A Business plan is the blue print that is needed to successfully run a business; with a workable business plan in place, you will reduce the trial and error approach of doing business. You will be able to manage your business with purpose and precise decisions; you will know what to do per time and how to handle challenges, growth and expansion.
So if you want to start your own party rental company, you are required to write a detailed business plan that can pass reality test when subjected to it; you should work with the facts, figures and other indices in the rental industry as it applies to the country you intend starting the business.
Generally, the major idea and aim of writing a business plan is not just for the sake of having a business document in place; but a detail guide on how to effectively run your business from the scratch. Your business plan should outline and cover strategies on how you intend to manage and grow your party rental company. You must try as much as possible to be realistic and never to over project when putting figures on income and profits et al. As a matter of fact, it is safer to underestimate when writing a business plan so that you won’t be so disappointed when reality sets in.
A Detailed Cost Analysis for Starting a Party Rental Company
Just like in most other industries, there are several expenses that you would have to make before successfully launching your own party rental company. It is important to state that the location plays a major role in this, as the place you choose to launch your business will definitely impact on the overall cost of starting the business.
For this reason, it is very important to have concluded and analysed your feasibility studies and market surveys before drawing up a budget and sourcing for funding for your business. Here are some of the basic costs you must look towards fulfilling when starting a party rental business in the United States of America;
- The Total Fee for incorporating the Business in United States of America – $750.
- The budget for Insurance, permits and license – $5,000
- The Amount needed to rent a suitable office facility with enough space in the United States of America (Re – Construction of the facility inclusive) – $50,000.
- The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $15,000
- The cost for acquiring rental equipment such as Tables, Chairs, Canopies, Plates, Pots etc. – $15,000
- The Cost of Launching an official Website – $700
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
- Other miscellaneous – $1,000
Going by the report from our research and feasibility studies, we will need about $100,000 to set up a small scale party rental company in the United States of America.
Averagely, you would need an over 180,000 US dollars to start a medium scale party rental company in the United States of America. If you choose to start a large scale private security company, then you should look towards budgeting about 2 million US dollars and above.
Financing Your Party Rental Company
If you choose to start your party rental company on a small scale, you might not need a lot of resources to launch the business, but if you decide to start the business on a large scale, you will surely need to raise the required start – up capital to launch the business.
When it comes to financing a business, one of the first thing and perhaps the major factors that you should consider is to write a good business plan. If you have a good and workable business plan in place, you may not really stress yourself before getting the right personnel to invest in your business.
Here are some of the options you can explore when sourcing for start – up capital for your party rental company;
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Applying for loan from your bank / banks
- Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
- Source for soft loans from your family members and your friends.
Choosing a Location for Your Party Rental Business
Choosing a location for your business is not something that can be done in isolation. The fact is that if you get it wrong with the location where you have decided to pitch your business tent, you are more likely going to struggle to make headway with the business. If you decide to choose a wrong location for your business, you might just be on the part of setting up the business into oblivion.
These are some of the factors that you should consider before choosing a location for your party rental business;
- Areas with strong economics.
- Areas with expanding populations.
- Areas that has access to an educated and talented workforce.
- Areas that are densely packed with like-minded entrepreneurs.
- Areas with no corporate income tax.
- Areas that have a relatively low cost of living and available office space.
- Party rental business should be located near residential areas
- It should be located close to schools; both primary, secondary and tertiary institutions.
Starting a Party Rental Business – Technical & Manpower Details
If you are about starting a party rental business, then you must put in place the necessary logistics to make it a successful one. Some of the technical and manpower are as follows:
- Buy the Needed Equipment: You have to buy enough equipment to be able to comfortably plan for many parties at once. Create an inventory for each kind of party and the equipment you require for it.
- Provide catering services or maintain a list of preferred caterers in order to recommend. Such as birthday cake and soft drinks to pizza and beer for a bachelor’s party.
- Offering a banquet room on your premises for individuals and businesses who do not desire hosting their parties on their living premises.
- Purchase of big vans: This is if you will be providing tables and chairs or inflatables. Meet commercial laundries if you anticipate having to wash high volumes of tablecloths and napkins.
- Hire the necessary staff such as wait staff, laborers to establish and take note of tables and tents, kitchen assistance and office staff such as a bookkeeper and someone that will be keeping record of orders and inventory.
The Service Process Involved in the Party Rental Services
The services process involved in this industry requires that you get the contracts to provide rental services for either organisations/individuals, and also ensure that this is carried out effectively, likewise you might be required to carry out some extra services such as been in charge of catering for a particular business, and other things.
Starting a Party Rental Business from Home – The Marketing Plan
- Marketing Ideas and Strategies for a Party Rental Business
Party rental business is that which requires you marketing, and ensuring that your services get to the needed persons as at when due. It is therefore necessary to market your business well if you wish to get the best out of it. So when you are drafting your marketing ideas and strategies for your party rental company, you must be meticulous to ensure that all the details are well spelt out, and it is catchy enough.
Here are some of the platforms you can utilize to market your party rental company;
- Advertise your business in relevant business magazines, TV and radio station and also make yourself available for security related talk shows and interactive sessions on TV and Radios)
- List your business on local directories / yellow pages (both online and offline)
- Leverage on the internet to promote your business
- Join local chambers of commerce around you with the main aim of networking and marketing your private security company.
- Introduce your business by sending introductory letters alongside your brochure to all the corporate organizations, community leaders, schools, hospitals, hotels and government offices in your target area.
- Promptness in bidding for contracts
- Create different packages for different category of clients in order to work with their budgets.
- Engage in direct marketing, referral marketing and also email marketing.
Possible Competitive Strategies for Winning your Competitors in the Party Rental Industry
It might be challenging competing as a newbie in the party rental business especially in a highly organized market like that of the United States of America, which is why you must be deliberate in choosing your board members and your core management team.
As a party rental company, if you have the required expertise and equipment to carry out a contract, then you are likely not going to struggle to compete in the industry. Hence, ensure that you put in your best whenever you have the opportunity to handle any rental contract. You should be known for delivering excellent services at all times. This will boost your image and make your company renowned.
Possible Ways to Increase Client Retention for a Party Rental Business
When it comes to business no matter the industry you choose to pitch your tent in, one of the easiest ways to increase customers’ retention and perhaps to attract new customers is to satisfy your customers always. If your customers are satisfied with your services delivery, they can hardly source for alternative service provider or products.
One of the major reasons why customer’s source for alternative service provider or product is when there is a drop in quality. Another reason is poor customer service. If you can continue to improve on the quality or your services and your customer service delivery, then you won’t struggle to maintain your loyal customers.
Strategies to Boost your Brand Awareness and Create a Corporate identity for your Party Rental Business
Regarding creating brand awareness for your business, the nature of contracts you have handled in the past, and the marketing strategy employed by your company goes a long way to make it easily achievable.
It is therefore very important to work with your consultants to help you map out publicity and advertising strategies that will help you penetrate into the heart of your target market. You should ensure that you make provisions to work with different kinds of persons in the society.
Below are some of the platforms you should leverage on to boost your brand awareness and create a corporate identity for your party rental company;
- Introduce your business by sending introductory letters alongside your brochure to all the corporate organizations, community leaders, schools, hospitals, hotels and government offices in your target area.
- Advertise your business in relevant magazines and websites
- List your business on local directories / yellow pages (both online and offline)
- Promote your business on satellite TV stations and radio stations.
- Engage in direct email marketing
- Leverage on the internet (social media platforms and your official websites) to promote your business
- Ensures that your workers wear your branded shirts at all times during working hours and also make sure you brand all your company’s official vans, trucks and cars et al.
Creating a Suppliers / Distribution Network for your Party Rental Business
The nature of the party rental industry gives room for rental companies to network amongst. This is so because the industry is a large one, and to ensure optimal performance and success, the supplier and distribution network must be large enough.
It is important to state that there will always be room for a party rental firm to form strategic alliance with one another which is why it is important to maintain a good network within the industry. In a case whereby a particular supply of services is required from you, and it’s not readily available, you can network with others in the industry to ensure that, that area is adequately covered.
Tips for Running a Party Rental Business Successfully
The truth is that, irrespective of the kind of business you run, your ability to get all the members of your team on same page at all times is one of the keys you need to successfully run the organization.
As the chief executive officer of a party rental company, you must ensure that you show direction always. You should ensure that you create time for office meetings; a time where challenges, feedbacks, projections and relevant issues are discussed, this could be daily, once in a week, twice a week or once in a month. The bottom line is that there should be consistent meetings in your organization.
Carrying out appraisals on a regular basis and training your employees will help you run your organization effectively. Encourage your employees to pursue certifications in their various areas of specialization; as this will have a long lasting effect on your organisation
Finally, you should keep your doors open for suggestions from members of your team and your clients. It is very important to reward excellent performance in your organization; it will go a long way to encourage healthy competition in your organization.