A bridal gown rental business is a business that predominantly rents out bridal wear, including wedding gowns, veils, and other accessories such as shoes, ties, gloves, and jewelry.
The global bridal gown market was valued at over US$ 39 billion in 2020 and it is estimated to expand at a CAGR of 7.01 percent from 2021 to 2031. Please note that the bridal wear market potential growth difference will be USD 13.5 billion from 2021 to 2026
Steps on How to Start a Bridal Gown Rental Business
Table of Content
Conduct Market Research
The first step in the market research process for your bridal gown rental business is to develop market-based research questions in line with your overall business goal and objective.
In this regard, you should source information that will help you maximize your business, information that will show you what your potential market will be looking out for from a bridal gown rental shop and also help you operate your bridal gown rental business with less stress and of course, build the business to profitability within the shortest time frame.
a. Who is the Target Market for Bridal Gown Rental Business?
- Bridal trains
- Wedding planners
- Movie producers.
b. Is Bridal Gown Rental Business a Profitable Business?
Yes, the bridal gown rental business is quite profitable. Statistics show that in the United States, the wedding industry generates over 60 billion dollars each year – and that figure doesn’t even include the honeymoon.
c. Are There Existing Niches in the Industry?
No, there are no existing niches when it comes to the bridal gown rental business.
d. Who are the Major Competitors?
- Bridal Gown Rental & Sales
- Rent-A-Gown Boutique| Quinceañera & Bridal Rentals/Sales
- Laine London Company
- Bridal Brilliance Rentals
- Crystal Bridal Boutique, Wedding Gowns & Dresses Brooklyn
- Tuxedo Express & Creative Bridal Wear
- Azaria Bridal
- Fancy Wedding Center
- AT Romance Bridal
- New York Bride & Groom of Raleigh
- Something Borrowed Bridal Rentals
- Yes To The Dress New Consignment and Rental
- Bridal and Tuxedo Galleria
- Charlotte Bridal Boutique & Tuxedos
- Amanda’s Bridal & Tux
- Bridal Extraordinaire
- Amore Bridal & Tuxedo
- Wedding Expressions by Geri
- Forever Yours Bridal and Formal Wear
- Ginny’s Bridal Collection.
e. Are There County or State Regulations or Zoning Laws for Bridal Gown Rental Business?
Yes, there are county or state regulations and zoning laws for bridal gown rental shops, and players in this industry are expected to work with the existing regulations governing such business in the county or state where their business is domiciled.
f. Is There a Franchise for Bridal Gown Rental Business?
Yes, there are franchise opportunities for the bridal gown rental business. Here are some of them;
- Winnie Couture
- My Wedding My Dress
- Bella Bridesmaid
- Fabulous Frocks
- Lovely Bride
g. What Do You Need to Start a Bridal gown rental Business?
- A Feasibility Report
- Business and Marketing Plans
- Business Licenses and Permits
- A Good Shop facility
- EIN (Employer Identification Number)/Federal Tax ID Number.
- A Corporate Bank Account
- Suppliers of wedding gowns and related bridal accessories
- Startup Capital
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 bridal gown rental business are;
Creative Bridal Gown Rental Business Name ideas
- All Brides© Bridal Gown Rental, Inc.
- Amalie Couture® Bridal Gown Rental, LLC
- Golden Isles© Bridal Gown Rental, Inc.
- Yes Bride® Bridal Gown Rental, Inc.
- Yvonne Jeff™ Bridal Gown Rental, Inc.
- Stacy Brown™ Bridal Gown Rental, LLC.
- Maria Jared© Bridal Gown Rental, LLC
- Just Dollar® Bridal Gown Rental, Inc.
- The Pride© Bridal Gown Rental, Inc.
- Sino Rita© Bridal Gown Rental, Inc.
- Selina Lewis® Bridal Gown Rental, LLC
- Lady Camelia® Bridal Gown Rental, LLC
- Julia Morgan™ Bridal Gown Rental, LLC
- Riley Billy© Bridal Gown Rental, Inc.
- Tracy Mack® Bridal Gown Rental, Inc.
- Elina Davies™ Bridal Gown Rental, Inc.
- Sandra Chambers™ Bridal Gown Rental, Inc.
- Liz Couture© Bridal Gown Rental, Inc.
- Wise Choice® Bridal Gown Rental, LLC
- White House™ Bridal Gown Rental, Inc.
Register Your Business
a. What Type of Business Structure is Best for Bridal Gown Rental Business?
Even though there are several options when it comes to the business structure of a bridal gown rental business, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.
Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below.
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 Bridal Gown Rental Business?
- General Business License
- Health and Safety Permit
- Reseller’s Permit
- Zonal Permits
- Signage Permit
- Operational State Facility Inspections
d. What Type of Certification is Needed to Open a Bridal Gown Rental Business?
You don’t need any certifications to open a bridal gown rental business.
e. What Documents are Needed to Open a Bridal Gown Rental Business?
- Business and liability insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval
- Certificate of Incorporation
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Contract Document
- Company Bylaws
- Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?
If you are considering starting a bridal gown rental business, usually you may not have any need to file for intellectual property protection or trademark. This is so because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Bridal gown rental Business?
A standard bridal gown rental shop can cost anywhere from $5,000 to $50,000 depending on size, the type and brand of wedding gowns you want to rent out, and also whether or not the shop will be heated, require electricity, and how you have it plumbed. Your retail storefront will require another $20,000 investment minimum and your start-up inventories and supplies will cost you another $15,000 to $70,000.
b. What are the Costs Involved in Starting a Bridal Gown Rental Business?
- The total cost of registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services total – $1,200.
- Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $80.
- The cost for hiring a business consultant (writing of business plans inclusive) – $2,500.
- Insurance (general liability, workers’ compensation, and property-casualty) coverage at a total premium – $2,400.
- The cost of accounting software, CRM software, and Payroll Software – $1,500
- The cost for payment of rent for 12 months at $1.76 per square foot in the total amount of – $35,600.
- The cost for shop / facility remodeling – $25,000.
- Other start-up expenses including stationery – $500
- Phone and utility deposits will cost – ($2,500)
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $20,000
- The cost for start-up inventory (a wide range of wedding gowns, bridal dresses, and related bridal accessories from different brands) – $30,000
- Storage hardware (bins, utensil rack, shelves, glasses case) – $3,720
- The cost for counter area equipment – $6,000
- The cost for store equipment (cash register, security, ventilation, signage) – $3,150
- The cost for purchasing office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound systems, tables and chairs et al) – $8,000.
- The cost of launching an official website – $600
- The cost for our grand opening party – $3,000
- Miscellaneous – $2,500
c. What Factors Determine the Cost of Opening a Bridal Gown Rental Business?
- The size of bridal gown rental (shop) business
- The choice of location
- The required licenses and permits
- The type of facility
- The cost for branding, promotion, and marketing of the business
- The cost of furnishing and equipping the bridal gown rental shop
- The cost of the insurance policy covers
- The cost of registering the business
- Source of your supplies and ongoing expenses
- Cost of recruiting and training your staff
- The cost of the purchase and customizing of uniforms
- The cost of the grand opening of the bridal gown rental business
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
It is not compulsory to build a new facility for your bridal gown rental business.
e. What are the Ongoing Expenses of a Bridal Gown Rental Business?
- Supplies (inventory expenses)
- Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
- Salaries of employees
f. What is the Average Salary of your Staff?
- Shop Manager (Owner) – $45,000 Per Year
- Merchandize Manager – $32,000
- Cashier (Accountant) – $29,630,000 Per Year
- Sales Boys and Sales Girls – $26,100 Per Year
- Drycleaners -$24,000 Per Year
g. How Do You Get Funding to Start a Bridal Gown Rental 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
- 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 friends.
Write a Business Plan
a. Executive Summary
Yvonne Jeff© Bridal Gown Rental, Inc. is a neighborhood bridal gown rental shop that will be located in a fast-growing community in San Jose, California. We have been able to secure a two-year lease of a vacant shop within the city’s largest shopping mall. We are fortunate to secure a facility with an option of renewal for 5 years a rate that is favorable to us.
b. Products and Service
Yvonne Jeff© Bridal Gown Rental, Inc. will be involved in renting wedding gowns and wedding accessories such as shoes, gloves and jewelry, bridesmaid dresses and crowns et al. We will also be involved in helping our clients provide alterations, such as hemming, taking in or letting out seams, and lengthening or shortening sleeves et al.
c. Mission Statement
Our mission is to establish a bridal gown rental business that will make available a wide range of bridal wear and accessories for rent at affordable prices to the residents of San Jose, California, and other cities in the United States where we intend to open chains of bridal gown rental shops.
Our vision is to become the leading bridal gown rental brand in California and also to be amongst the top 10 bridal gown rental brands in the United States of America.
d. Goals and Objectives
The goals and objectives of a bridal gown rental are to provide an outlet where people can rent wedding gowns and accessories such as shoes, gloves and jewelry, bridesmaid dresses and crowns et al. They can also provide alterations, such as hemming, taking in or letting out seams, and lengthening or shortening sleeves et al.
e. Organizational Structure
- Shop Manager (Owner)
- Merchandise Manager
- Cashier (Accountant)
- Sales Boys and Sales Girls
a. SWOT Analysis
- Ideal location for a bridal gown rental shop
- Highly experienced and qualified employees and management
- Access to finance from business partners
- Excellent customer testimonials.
- A high volume of unique designs and styles of wedding gowns, and bridal dresses from different designers.
- Financial Constraints
- A new business that will be competing with well-established bridal gown rental shops.
- Inability to retain our highly experienced and qualified employees longer than we want
- Increase in the number of ladies getting married
- Online market, new services, new technology, and of course the opening of new markets.
- The arrival of new bridal gown rental shops within our market space
- Unfavorable government policy and regulations
- Steady wage expenses and increasing prices of gas will reduce industry profitability
- Economic uncertainty
- Liability problems
b. How Do Bridal Gown Rentals Make Money?
Bridal gown rentals make money by;
- Renting bridal/wedding gowns
- Renting bridal accessories
- Renting bridesmaid dresses
- Providing alterations and other related services.
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
d. Sales & Advertising Strategies
- Introduce your bridal gown rental business by sending introductory letters alongside your brochure to wedding planners, socialites, celebrities, and other key stakeholders throughout the city where your bridal gown rental is located.
- Advertise on the internet on blogs and forums, and also on social media like Pinterest, Twitter, Facebook, and LinkedIn to get your message across
- Create a basic website for your business to give your business an online presence
- Directly market your products.
- Join local bridal gown rental business associations for industry trends and tips
- Provide discount days for your customers
- Advertise our 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)
a. How Much Should You Charge for your Product/Service?
You can typically rent wedding dresses for as little as about $50-$600, but they can also cost much less or more depending on the dress and rental company. On the more expensive end, designer gowns rent for a fraction of their purchase price, anywhere from $500 to $2,000.
b. How Much Profit Do Bridal Gown Rental Business Owners Make a Year?
It depends, it could be between $25,000 and $65,000—annual income can vary depending on the store’s profits.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the bridal gown rental business
- The types of products retailed in the shop
- The location of the bridal gown rental business is covering
- The management style of the bridal gown rental business
- The business approach of the bridal gown rental business
- The advertising and marketing strategies adopted by the bridal gown rental business.
- The number of years the bridal gown rental is in business
d. What is the Profit Margin of a Bridal Gown Rental Business Product/Service?
The profit margin of a bridal gown rental business is not fixed. It could range from 25 percent to 45 percent depending on the type of wedding gowns put up for rent.
e. What is the Sales Forecast?
Below is the sales forecast for a bridal gown rental business. 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: $220,000
- Second Fiscal Year: $360,000
- Third Fiscal Year: $400,000
Set Up your Shop/Office
a. How Do You Choose a Perfect Location for Bridal Gown Rental Business?
- The demography of the location especially as it relates to ladies due for marriage
- The demand for wedding gowns, bridal dresses, and accessories in the location
- The purchasing power of businesses and the residents of the location
- Accessibility of the location
- The number of bridal gown rental shops, and other boutiques that rent wedding gowns in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What State and City are Best to Open a Bridal Gown Rental Business?
- Montclair, New Jersey
- Brooklyn, New York
- Chicago, Illinois
- Durham, North Carolina
- Los Angeles, California
- Green Bay, Wisconsin
- Dallas, Texas
- Manhattan, New York
- Pittsburgh, Pennsylvania
- Boston, Massachusetts
c. What Equipment is Needed to Operate a Bridal Gown Rental Business?
You will need hangers, holders, cases, shelves, racks, accessories, receipt issuing machines, Sound systems (For playing music), Point of Sale Machines (POS Machines), CCTV Cameras, and Flat Screen TVs. You will also need computers/laptops, internet facility, telephone, fax machine, and office furniture (chairs, tables, and shelves) amongst others and all these can be gotten as fairly used.
When it comes to hiring employees for a standard bridal gown rental business, you should make plans to hire a competent shop manager (owner), merchandize manager, cashier (accountant), sales boys and girls, and dry cleaners.
Launch the Business Proper
In recent times, no bridal gown rental business opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party.
The bottom line is that with a proper launching of the bridal gown rental business, you will be able to officially inform people in your city that your bridal gown rental business is open for business.
a. What Makes a Bridal Gown Rental Business Successful?
- Choose a good location and shop facility to launch the business
- Make sure your shop is stocked with different types of wedding gowns, bridal dresses, and accessories
- Throw an open house grand party before officially opening the bridal gown rental business
- Be deliberate with your marketing sales approach
- Encourage the use of word of mouth to promote your bridal gown rental business
- Leverage all available online and offline platforms to promote your bridal gown rental business
b. What Happens During a Typical Day at a Bridal Gown Rental Business?
- The shop is open for the day’s work
- Goods are properly arranged
- Walk-in customers are attended to (try different wedding gowns before making a choice)
- Deliveries of orders are made
- Wedding gowns are dry cleaned
- Stocks are taken and reports are written and submitted to superior officers
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Bridal Gown Rental Business?
- Customer services skills
- Interpersonal skill
- Accounting and bookkeeping skills
- Business management skills
- Bargaining skill
- Work experience in a rental shop environment
- Experience in managing people
- Experience in business administration
- Experience in handling wedding gowns, bridal dresses, accessories, and related products.