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Starting a Party Supply Rental Business – A Complete Guide

Do you want to start a party supply rental business? If YES, here is a complete guide to starting a party supply rental business with NO money and no experience.

Okay, so we have provided you an in-depth sample party supply rental business plan template. We also took it further by analyzing and drafting a sample party supply rental marketing plan backed up by actionable guerrilla marketing ideas for party supply rental businesses. In this article, we will be considering all the requirements for starting a party supply rental business. So put on your entrepreneurial hat and let’s proceed.

Why Start a Party Supply Rental Business?

Starting a party rental business is not as capital intensive as starting a banquet hall rental business. This is because all that is required of you is to purchase tables, chairs, flatware, linens, centerpieces, stages, tents, canopies and other items for public and private parties and events. You will also need a warehouse facility or well secured space to keep the items and also a truck to take them to and from event venues as requested by your clients. You can decide to rent out the truck or include it as a premium service to those who rent party items from you.

One good thing about the party supply rental business is that most often than not, your presence may not be needed so long as you have a competent team handling the business for you. Besides, most events such as wedding ceremonies, parties and most social events are done during weekends and if you are lucky to keep a 9 to 5 job that you only work Mondays to Fridays, you can successfully test run a party supply rental business. The truth is that most of the basic skills needed to effectively run a party supply rental business are some of the soft skills you can acquire in your work place.

It is important to point out that the party supply rental business is one the businesses that can’t go out of fashion because of the role it plays in the society. Depending on the scale you want to start, the startup capital for this type of business can be considered to be moderate. As a matter of fact, you can start your own party supply rental business and then grow it big within a short period of time by re – investing your profits back to the business.

Before launching this type of business, it will pay you carry out your due diligence as it relates to market research, economic and cost analysis and of course feasibility studies. If you get things right before launching your party supply rental business, it will not take you long before you breakeven and start smiling to the bank.

Lastly, before launching your party supply rental business, ensure that you read this article and you will be well equipped. You can start your party supply rental store from a small town in the United States and if you are consistent and creative, it won’t be too long before your brand becomes a nationally recognized brand and your business network spreads across the length and breadth of the United States of America.

Starting a Party Supply Rental Business – A Complete Guide

  • Industry Overview

The party supply rental business owners are basically involved in renting out tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address system, red carpet, drums, plates, glasses, cutleries and other items for public and private parties and events.

In the face of economic recovery, the overall revenue generated in the party supply rental industry shrunk slightly in 2011 as businesses and consumers wary of the recent recession held off on event spending. On the other hand, renewed assurance in the economy in successive years has encouraged business and consumers to host events that require products from the Party Supply Rental industry.

Continued economic recovery will likely aid growth through 2020. So also, 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.

The Party Supply Rental Industry is indeed a large and vibrant industry not only in the United States of America and but also in most countries of the world as long as parties are organized there. Statistics has it that the Tent Rental cum Party Rental industry in the United States of America is worth about $5 billion, with an estimated growth rate of 2.3 percent between 2011 and 2016.

There are about 9,645 registered and licensed party rental businesses in the United States and they are responsible for employing about 50,470 people. In the United States, only Classic Party Rental Company can boast of having a lion market share in the industry. Despite that, the industry is still very much open for competition from aspiring investors who would want to launch their own party rental business.

According to a report recently published by IBISWORLD, in the United States, the regions that have the greatest concentration of party supply rental companies are the Southeast, the West, the Great Lakes and the Mid-Atlantic. The distribution of companies is based mainly on the number of households and median income levels by region. Besides, party rental cum tent rental companies tend to locate their business near major metropolitan areas which generate a steady stream of demand for corporate and social events.

The Southeast region has the greatest concentration of industry establishments, estimated at 31.9 percent in 2015. The Southeast is the most populated region of the United States; therefore, given the high proportion of households, there is a greater demand for rental supplies for social events and corporate events.

The party supply rental business will continue to blossom because people will always organize parties hence the need to rent tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address system, red carpet, plates, glasses, cutleries and other items. Despite the fact that the industry seems over-saturated, there is still room big enough to accommodate aspiring entrepreneurs who intend opening their own party supply rental stores in the United States of America.

The party supply rental industry is indeed a profitable industry to venture into despite the fact that the entry bar for starting the business is not too difficult to scale through. The truth is that if a party supply rental business is well – stocked with party rental items and also well positioned in an environment with the right demography, they will sure attract regular clients and their items will be well booked all through the year.

Starting a Party Supply Rental Business – Market Research and Feasibility Studies

  • Demographics and Psychographics

The demographic and psychographic composition of those who patronize party supply rental businesses cut across all genders, households, schools and businesses who organize parties with the financial means hence the demographic composition of a party supply rental business is all encompassing. In essence, your target market can’t be restricted to just a group of people but to all adults, households and businesses within your target location and who have the purchasing power.

So, if you are thinking of opening your own party supply rental business, then you should make your target demographics all encompassing. It should include potential couples/young adults, blue chips companies, corporate organizations, religious organizations, political parties/politicians, households/families, the government (public sector), schools (high schools, colleges and universities), sports organizations and entrepreneurs and start – ups in the neighborhood where your party supply rental company will be located.

List of Niche ideas Within the Party Supply Rental Business That You Can Specialize in

It is important to state that there is no known niche area when it comes to party supply rental business. Every player in this line of business usually rent out party tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address system, red carpet, drums, plates, glasses, cutleries and other items that are used in parties.

On the other hand, it is important to state that some party supply rental stores may decide to major in one or more of the under listed areas;

  • Party supply rental (tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address system, red carpet, drums, plates, glasses, cutleries and other items for public and private parties and events)
  • Corporate party and banquet equipment rental
  • Wedding supply rental
  • Birthday rentals
  • Corporate event rentals
  • BBQ party rentals
  • Outdoors party rentals
  • Other event rentals

The Level of Competition in the Party Supply Rental Stores Industry

The competition that exists in the Party Supply Rental industry goes beyond competition between party supply rental stores. You will be expected to compete with any other business such as event planners and banquet hall rental companies that also rent out party tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address system, red carpet, drums, plates, glasses, cutleries and other items for public and private parties and events. So, it will be right to say the competition in the Party Supply Rental Stores industry is tough.

The truth is that no matter the level of competition in an industry, if you have done your due diligence and you brand and promote your products or business properly, you will always make headway in the industry. Just ensure that you have standard party tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address system, red carpet, drums, plates, glasses, cutleries and other items for public and private parties and events and you know how to attract and reach out to your target market.

But over and above, there are several party supply rental stores scattered all around the United States and even in the same location where you intend starting yours. So, if you choose to start your own party supply rental business in the United States, you will definitely meet stiff competition amongst party supply rental stores and any other business such as event planners and banquet hall rental companies that are also into renting out party supplies. Besides, there are larger party supply rental stores that determine the trends in the industry and you should be ready to compete with them for customers.

List of Well – Known Brands in the Party Supply Rental Industry

In every industry, there are always brands that perform better or are better regarded by customers and the general public than others. Some of these brands are those that have been in the industry for a long time, while others are best known for how they conduct their businesses and the results they have achieved over the years.

These are some of the leading party supply rental stores in the United States of America and in the globe;

  • USA Party Rental Inc.
  • US
  • Aztec Events & Tents
  • Celebrate Event & Party Rental
  • Classic Party & Equipment Rentals
  • USA Inflatables Party Equipment Rental Service
  • Ring Party Rentals
  • Us to U Party Rentals
  • Rental Center USA of Hunterdon, LLC
  • Durants Party Rentals
  • Taylor Rental of Sebring
  • Midwest Rentals Inc.
  • Jump Us Party Rentals
  • Rental Centers USA
  • Party Pros USA
  • Jump City of Derridder Party Equipment Rental Service
  • Perfect Parties USA
  • US Tent Rental/Linens by the Sea
  • J&N Fun USA Party Rentals
  • Cole’s Party Rental

Economic Analysis

If you are looking at launching a business and maximizing profits, then you need to ensure that you get your economic and cost analysis right and try as much as possible to adopt best practices in the industry you choose to build a business in.

Party supply rental business is not a green business, as a matter of fact; you will come across several party supply rental stores when you go sourcing for one or when you search through online and offline directories. So, if you are mapping out your economic analysis, you should carry out thorough market survey and costing of what is required to rent a store/warehouse facility and the amount needed to purchase party supply, rental equipment, trucks and that are in demand in your location and also the cost to successfully run the business.

Over and above, if you are considering starting a party supply rental business, then your concern should not be limited to the cost of renting a warehouse facility and getting party supplies, but also on branding and on how to build a robust clientele base. The truth is that if you are able to build a robust clientele base, you are sure going to maximize profits in the business.

Starting Your Party Supply Rental Business from Scratch vs Buying a Franchise

If you are looking in the line of starting a party supply rental business, you would have to start from the very scratch because you can hardly get a franchise of a party supply rental business to buy, if you do, it will be way too expensive. It is a business that is open to all and sundry.

Besides starting a party supply rental business from the scratch is less stressful when compared to other small – scale businesses which usually require detailed groundwork before launching the business. With party supply rental business, you should just try as much as possible to secure a warehouse facility that is close to a major road, purchase the needed party supply equipment and then leverage on every marketing tool within your disposal especially the internet to market your business.

Please note that most of the big and successful party supply rental around started from the scratch and they were able to build a solid business brand. It takes dedication, hard work and determination to achieve business success.

Possible Threats and Challenges You Will Face When Starting a Party Supply Rental Business

If you decide to start your own party supply rental business today, one of the major challenges you are likely going to face is the presence of well – established party supply rental stores and any other businesses that are also into renting out party tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address system, red carpet, drums, plates, glasses, cutleries and other items for public and private parties and events. The only way to avoid this challenge is to create your own market.

Some other challenges and threats that you are likely going to face is economic downturn; if the economy is in bad shape, history has it that businesses such as party supply rental and the likes usually struggle to maintain their old customers or even welcome new customers. So also, unfavorable government policies can also hamper the growth of your party supply rental store. There is nothing you can do as regards these threats and challenges other than to stay positive that things will work well for you.

Starting a Party Supply Rental Business – Legal Matters

  • Best legal entity to use for this type of business

When considering starting a party supply rental business, the legal entity you choose will go a long way to determine how big the business can grow; some party supply rentals design their business for neighborhood market, some for city wide market, while others for national market via branching out.

Generally, you have the option of either choosing a general partnership, limited liability Company or a sole proprietorship for a business such as party supply rental store. Ordinarily, sole proprietorship should have been the ideal business structure for a small – scale party supply rental business especially if you are just starting out with a moderate start – up capital in a small neighborhood. But people prefer limited liability Company for obvious reasons.

As a matter of fact, if your intention is to grow the business and have chains of party supply rental stores across the United States of America and other countries of the world via franchising and opening online store, then choosing sole proprietorship is not an option for you. Limited Liability Company, LLC or even general partnership will cut it for you.

Setting up an LLC protects you from personal liability. If anything goes wrong in the business, it is only the money that you invested into the limited liability company that will be at risk. Limited liability companies are simpler and more flexible to operate and you don’t need a board of directors, shareholder meetings and other managerial formalities.

These are some of the factors you should consider before choosing a legal entity for your party supply rental business; limitation of personal liability, ease of transferability, admission of new owners, investors’ expectation and of course taxes.

If you take your time to critically study the various legal entities to use for your party supply rental business with the ability to sell franchise and open chains of party supply rental stores all across the United States of America, you will agree that Limited Liability Company is most suitable. You can start this type of business as limited liability company (LLC) and in future convert it to a ‘C’ corporation or an ‘S’ corporation especially when you have the plans of going public.

Upgrading to a ‘C’ corporation or ‘S’ corporation will give you the opportunity to grow your party supply rental business so as to compete with major players in the industry; you will be able to generate capital from venture capital firms, 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.

Catchy Business Name Ideas Suitable for a Party Supply Rental Business

When it comes to choosing a name for your business, you should be creative because whatever name you choose for your business will go a long way to create a perception of what the business represents. Usually it is the norm for people to follow the trend in the industry they intend operating from when naming their business.

If you are considering starting your own party supply rental business, here are some catchy names that you can choose from;

  • Back Street® Party Supply Rental Services, Inc.
  • Party Ryders™ Party Equipment Rental Service, LLC
  • House of Party™ Party Supply Rental Services, Inc.
  • Broadway® Party Equipment Rental Service, LLC
  • Ruston Branch® Party Supply Rental Services, Inc.
  • Jael Clarkson & Family® Party Supply Rental Services, Inc.
  • Vic Gomez© Party Supply Rental Services, Inc.
  • Taylor West™ Party Equipment Rental Service, LLC
  • Parry Rainbow™ Party Supply Rental Services, Inc.
  • Party Foundation® Party Equipment Rental Service, Inc.

Insurance Policies

In the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from. So, it is important to create a budget for insurance and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your party supply rental business.

Here are some of the basic insurance covers that you should look to purchase if you want to start your own party supply rental business in the United States of America;

  • General insurance
  • Health insurance
  • Liability insurance
  • Workers compensation
  • Overhead expense disability insurance
  • Business owner’s policy group insurance
  • Payment protection insurance

Intellectual Property Protection/Trademark

If you are considering starting your own party supply rental business, usually you may not have any need to file for intellectual property protection/trademark. This is so because the nature of the business makes it possible for you to successfully run the business without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

But if you just want to protect your company’s logo and other documents or software that are unique to you or even jingles and media production concepts, then you can go ahead to file for intellectual property protection. If you want to register your trademark, you are expected to begin the process by filing an application with the USPTO. The final approval of your trademark is subjected to the review of attorneys as required by USPTO.

Is Professional Certification Needed to Run a Starting a Party Supply Rental Business?

You do not need to have any formal training or special certification before you can be allowed to start a party supply rental business. All you need is informal training that will expose you to the in and out of party supply rental business.

But on the other hand, if you come across any form of certification that can aid you to effectively manage and grow your party supply rental business, then by all means try and pursue such certification.

List of Legal Documents You Need to Run a Party Supply Rental Business

The essence of having the necessary documentation in place before launching a business in the United States of America cannot be overemphasized. It is a fact that you cannot successfully run any business in the United States without the proper documentations. If you do, it won’t be long before the long arm of the law catches up with you.

These are some of the basic legal documents that you are expected to have in place if you want to legally run your own party supply rental business in the United States of America;

  • Certificate of Incorporation
  • Business License
  • Tax Payer’s ID/Tax Identification Number
  • Business Plan
  • Non – disclosure Agreement
  • Copy of license for the warehouse facility and/or a recent inspection report
  • Employee Handbook
  • Employment Agreement (offer letters)
  • Operating Agreement for LLCs
  • Insurance Policy
  • Online Terms of Use
  • Online Privacy Policy Document (basically for online payment portal)
  • Company Bylaws
  • Memorandum of Understanding (MoU)
  • Building License
  • Franchise or Trademark License (optional)

Financing Your Party Supply Rental Business

Starting a party supply rental business can be cost effective especially if you choose to start on a small scale. Securing a standard and well – positioned warehouse facility, purchasing trucks and party tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address system, red carpet, drums, plates, glasses, cutleries and other items for public and private parties and events are part of what will consume a large chunk of your start – up capital, but if you choose to start the business on a large scale, you would need to go source for fund to finance the business because it is expensive to start a standard large scale party supply rental business.

When it comes to financing a business, one of the first things you should consider is to write a good business plan. If you have a good and workable business plan document in place, you may not have to labor yourself before convincing your bank, investors and your friends to invest in your business.

Here are some of the options you can explore when sourcing for start – up capital for your party supply rental business;

  • Raising money from personal savings and sale of personal stocks and properties
  • Raising money from investors and business partners
  • Sell of shares to interested investors
  • Applying for loan from your bank
  • 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 Suitable Location for your Party Supply Rental Business

When it comes to choosing a location for your party supply rental business, the rule of thumb is that you should be guided by the demand for party supply rental equipment. Of course, if you are able to secure a central location for your party supply rental store, it will give people easy access to your store.

It cannot be overemphasized that the location you chose to open your party supply rental business is key to the success of the business, hence entrepreneurs are willing to rent or lease a facility in a visible location; a location where the demography consists of people and organizations/businesses with the required purchasing power and lifestyle.

If you make the mistake of renting or leasing a facility for your party supply rental store in a not too visible or hidden location simply because it is cheap, then you must be prepared to spend more in promoting the business and perhaps giving direction to potential customers.

Most importantly, before choosing a location for your party supply rental store, ensure that you first conduct a thorough feasibility studies and market survey. The possibility of you coming across similar business that just closed shop in the location you want to open yours can’t be ruled out. So, it is very important to gather as much facts and figures before choosing a location to set – up your own party supply rental store.

These are some of the key factors that you should consider before choosing a location for your party supply rental store;

  • The demography of the location
  • The demand for party supply rental equipment in the location
  • The frequency at which parties are done in the location
  • Accessibility of the location
  • The number of party supply rental businesses and any other business such as event planners and banquet hall rental companies that are also into renting out party tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address system, red carpet, drums, plates, glasses, cutleries and other items for public and private parties and events in the location
  • The local laws and regulations in the community
  • Traffic, parking and security

Starting a Party Supply Rental Business – Technical and Manpower Details

On the average, there is no special technology or equipment needed to run this type of business except for Point of Sales (POS) Machines, shelves and software applications. So also, you will definitely need a computer, internet facility, telephone, fax machine and office furniture (chairs, tables, and shelves) amongst others and all these can be gotten as fairly used.

As regards leasing or outright purchase of a warehouse facility, the choice is dependent on your financial standing, but the truth is that to be on the safe side, it is advisable to start off with a short – term rent/lease while test running the business in the location. If things work out as planned, then you go on a long – term lease or outright purchase of the property but if not, then move on and source for other ideal location for such business.

When it comes to hiring employees for a standard party supply rental business, you should make plans to hire a competent Chief Executive Officer (you can occupy this role), Warehouse Manager/Admin and Human Resources Manager, Party Supply Rental Manager, Sales and Marketing Officer, Accounting Clerk, and Truck Drivers. On the average, you will need a minimum of 3 to 6 key staff members to run a small – scale but standard party supply rental business.

The Business Services Process Involved in a Party Supply Rental Business

When it comes to the business service process of a party supply rental business, the process is simple and straightforward and can be run on autopilot.

Generally, a party supply rental services company lists out the party supply equipment that they have for rent. When a party organizer or customer approaches them, they agree on the prices of the party equipment to be rented, payment is made, and deposit is also made.

The deposit is compulsory because it is used to replace any damaged party equipment that was rented. In most cases, once the payment and deposit are done, the party supply rental company uses their truck to convey the party equipment to the venue of the party, and also install and arrange the party equipment. After the party, the party supply rental company will convey the party equipment back to their warehouse.

It is important to state that a party supply rental business may decide to improvise or adopt any business process and structure that will guarantee them efficiency and flexibility; the above stated party supply rental business process is not cast on stone.

Starting a Party Supply Rental Business – The Marketing Plan

  • Marketing ideas and strategies

Running a business requires that you should be proactive when it comes to marketing your goods or services. If you choose to launch a party supply rental store business, then you must go all out to employ strategies that will help you attract customers or else you will likely struggle with the business because there are well – known brands that determine the market direction for the party supply rental industry.

People and organizations will patronize party supply equipment from your store if they know that they are going to get the best and of course value for their money.

As a matter of fact, your marketing strategy will center on swift delivery, quality, and pricing, and above all excellent customer service. You should ensure that whenever your customers rent party supply equipment from you, they will get quality equipment and excellent service. The truth is that if you are able to put the above stated in place, you won’t struggle to retain your old customers and at the same time win over new customers.

Businesses these days are aware of the power of the internet which is why they will do all they can to maximize the internet to market their services or products. In other words, a larger percentage of your marketing efforts will be directed at internet users.

These are some of the marketing ideas and strategies that you can adopt for your party supply rental business;

  • Introduce your party supply rental store by sending introductory letters alongside your brochure to potential couples/young adults, blue chips companies, corporate organizations, religious organizations, political parties/politicians, households and start – ups in the neighborhood where your party supply rental store will be located
  • Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across, so that those on the social media or those who read blogs will know where to go when they need to rent party supply equipment within your location
  • Create a basic website for your business so as to give your business an online presence
  • Directly market your products
  • Join local party supply rental associations for industry trends and tips
  • Provide discount days for your customers
  • Advertise your business in community based newspapers, local TV and radio stations
  • List your business on yellow pages ads (local directories)
  • Encourage the use of word of mouth marketing (referrals)

Strategies to Boost Your Party Supply Rental Business Brand Awareness and Create Your Corporate Identity

If your intention of starting a party supply rental business is to grow the business beyond the city where you are going to be operating from to become a national and international brand by opening chains of party supply rental stores and franchising, then you must be ready to spend money on promotion and advertisement of your brand.

No matter the industry you belong to, the truth is that the market is dynamic and it requires consistent brand awareness and brand boosting cum promotion to continue to appeal to your target market. Here are the platforms you can leverage on to boost your brand awareness and create corporate identity for your party supply rental store;

  • Place adverts on both print (newspapers and events and lifestyle magazines) and electronic media platforms
  • Sponsor relevant community based events
  • Leverage on the internet and social media platforms like Instagram, Facebook, Twitter, YouTube, Google + et al to promote your party supply rental business
  • Install your billboards in strategic locations all around your city or state
  • Engage in roadshows from time to time in targeted neighborhoods to create awareness of your party supply rental store
  • Distribute your fliers and handbills in target areas
  • Contact potential couples/young adults, blue chips companies, corporate organizations, religious organizations, political parties / politicians, households and start – ups in the neighborhood where your party supply rental store will be located informing them about your business and the equipment and items you rent out
  • List your party supply rental in local directories
  • Advertise your party supply rental store in your official website and employ strategies that will help you pull traffic to the site
  • Position your Flexi Banners at strategic positions in the location where your party supply rental store is located
  • Ensure that all your staff members wear your branded shirts and all your vehicles and trucks /vans are branded with your company logo et al.
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