Do you want to start a wedding rental business? If YES, here is a complete guide to starting a wedding rental business with NO money and no experience.
All over the world, wedding planning is serious business. Not only is it a serious business, it is also a mega money making venture. This is why more and more people venture into it. If anything that has to do with wedding planning catches your fancy, then you may want to consider starting a wedding rental business.
Wedding rental business is a profitable business which needs very little investment and management activities. Indeed this business can be made easier if it is started from home.
When starting this business, first and foremost you need to think about the place where you want to establish your wedding rental business. We believe you can also start this business from home but probably on small scale, but if you want to start a larger scale wedding rental business then you should look for a bigger place.
Then the next thing is to provide the necessary amenities. Note that the basic things you need are garden arches, backdrops, trefoil room dividers, various center pieces, tables and cloths etc. You should also provide catering tools for different weddings and the parties.
For you to be able to diversify and flourish your business, you should add some innovative ideas that will help you establish a business with huge brand awareness.
Also when planning to start this business, we strongly advise that you visit different related businesses and observe what services they are providing in your planned location and what they are charging their customers. A lot of wedding equipment are rented at 5% of its original price. There is a lot to be garnered about the wedding rentals business. You will catch a lot if you read on.
Steps to Starting a Wedding Rental Business
Table of Content
- 2. Conduct Market Research and Feasibility Studies
- 3. Decide Which Niche to Concentrate On
- 4. Know Your Major Competitors in the Industry
- 5. Decide Whether to Buy a Franchise or Start from Scratch
- 9. Discuss with an Agent to Know the Best Insurance Policies for You
- 10. Protect your Intellectual Property With Trademark, Copyrights, Patents
- 11. Get the Necessary Professional Certification
- 12. Get the Necessary Legal Documents You Need to Operate
- 13. Raise the Needed Startup Capital
- 14. Choose a Suitable Location for your Business
- 15. Hire Employees for your Technical and Manpower Needs
- 16. Write a Marketing Plan Packed with ideas & Strategies
- 17. Develop Iron-clad Competitive Strategies to Help You Win
- 18. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity
1. Understand the Industry
This industry is a large industry in terms of dollars, but tracking where that money is spent is more difficult for several reasons.
But reports have it that over the past five years, a lot of economic and consumer trends acted against the Wedding Rental Business industry. First and foremost, high unemployment reduced budget for weddings and led to postponed nuptials.
Also longer engagements, cohabitation before marriage and a higher average marriage age all became more acceptable, pushing the marriage rate down. But experts believe that some of these trends will linger, nuptials that were postponed will finally be planned and consumer spending on weddings will grow.
Note that this lucrative industry has a low to moderate level of capital intensity. Experts believe that for every dollar spent on wages, businesses in this industry will spend $0.13 in capital investment. Note that capital investment is mainly on equipment or buildings that have an extended useful life.
Also have it in mind that this industry is labour dependent to accommodate consumers. We believe that labour expenditures are high because businesses in this industry compete primarily on the basis of customer service.
Capital investment has remained relatively flat over the past five years. Experts believe this is because a lot of businesses in this industry are having minimal capital costs because of the nature of their services. For instance, officiants incur little to no capital expenses.
2. Conduct Market Research and Feasibility Studies
- Demographics and Psychographics
We strongly believe that this business is good for those who thrive on interactions with new people. It is also good for those who grew up playing “matchmaker” and get a thrill out of helping bring two lives together. This is because a wedding rental business is mostly visual, so those with a flair for design and/or a good eye for stylish clothing and skill at creating a unique atmosphere in any room will do very well in it.
Also we believe that the best client for you in this business will be those who are both flexible and realistic. Indeed, customers may have their fixed ideas of a “perfect wedding” that do not mesh well with their budget or location, so they tend to subsidize and do the little they can instead of letting an event manager do it.
Therefore, customers who are realistic about how far their money can go and flexible enough to listen to alternative suggestions make for the best customers.
3. Decide Which Niche to Concentrate On
First and foremost, this industry is made up of multiple smaller enterprises like caterers, wedding consultants, interior decorators, dresses, various beauty suppliers (hair, makeup), photographers, favours/bridesmaids gifts, music, honeymoon related, etc.
But while the industry as a whole represents a lot of money, each of the component parts is much smaller -some smaller than others.
Note that these smaller composite suppliers can be very local and likely will be small and privately owned – traditionally the type of businesses that do not necessarily report financial information to any agency other than the IRS. We believe that this is in sharp contrast to larger industries which are required to file with the SEC making it much easier to find information.
These larger industries also affect the economy as a whole on a much more obvious scale, also making it easier to find out information on them. Also note that a lot the smaller components like caterers, DJs and photographers, wedding favours, invitations, etc. also do other events without necessarily breaking their business down into wedding versus non-wedding.
This goes to say that it is very hard to designate a particular niche in this industry but you can still choose to focus on any of these (caterers, wedding consultants, dresses, various beauty suppliers (hair, makeup), photographers, favours/bridesmaids gifts, music, honeymoon related, etc.) as a niche.
The Level of Competition in the Industry
We all know that wedding has become an integral part of every adult life, and it tends to happen every now and then thereby boosting the acceptability of this business, and many focused entrepreneurs have found it lucrative enough to venture into it.
But have it in mind that succeeding in this industry is not all about having chairs or tables to hire out, but it involves far more technical qualities. This business has direct bearing on people which is why having the right connection and knowing how well to network with those that matter and delivering standard results at all times can aid a person significantly in the business.
We have been able to point out from the industry overview how lucrative this industry is and will continue to be, which is why there are lots of big time investors who have a stake in the industry. Regardless of that, there is always room big enough to accommodate both upcoming businesses.
4. Know Your Major Competitors in the Industry
There are a lot of wedding rental businesses out there. The big brands amongst them have weathered the storm and stood the test of time. Here is a list;
- A-1 Party
- United rentals
- Classic party rentals
- Arena America
- Sunbelt Rentals
- Hertz Equipment Rental Corp
- Home depot rentals
- DC rentals
- Blueline Rental
- Aggreko North America
- H&E Equipment Services
- BRATT Productions
- Sunstate Equipment Services
- Diamond rental
- NES Rentals
- Event rental group
- NEFF Rentals
- Maxim Crane Rental Corp.
- Party Reflections
- Holt Cat
- Rentals Unlimited
We believe that the growth potential for a wedding renting business is steady, though there can be variances according to region and time of year. But generally, about 6,200 weddings happen each day, and many of them are getting married for a second (or even third) time, so the market is steady.
Note that weddings are more common in warmer months (the most popular month for weddings is June), and the cost of the weddings can vary ranging from an average of just over $15,000 in Utah to just over $31,000 in Manhattan. However, have it in mind that those differences can affect how much you get paid and when you are likely to be busier.
Also, if you are planning on starting a wedding 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.
All these indeed might take time to come, but if you have dedicated employees that know the nitty-gritty of the business and the processes involved in winning and executing a particular project, you are sure of setting yourself up on the path to glory.
5. Decide Whether to Buy a Franchise or Start from Scratch
In this industry, you can purchase a franchise from a successful wedding rental business or even partner with a big rental company if you are interested in only owning an investment in this industry. But indeed different individuals are gingered up by different factors and incentives to start a business.
In case your incentives and your goal is to build a business that you hope to control, 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 is the best advice for you.
But if your interest is to make money and multiply your wealth, then we advise that you buy a franchise and leverage on the already established name and Business model it offers.
6. Know the Possible Threats and Challenges You Will Face
A lot of entrepreneurs in this industry do not think that mistakes come quite so much when starting; they believe that it tends to come when you are starting to grow. The start-up of this business is fairly easy, you get a couple of rentals, it is fun; but it is that very excitement that can get you in trouble sometimes because there are so many neat things out there to buy.
We believe you can go to a trade show and spend thousands just going down one aisle, because there is all these new equipment that everybody loves and you know you can make money with them. So there are generally not much problems in the beginning, but expanding too fast probably is the biggest problem that you find in this business. Other few challenges may include;
- Developing the Vision and Business Idea
- Raising Capital for your wedding rental business
- Finding Good Customers
- Dealing with Competition
- Unforeseen Business Challenges and Expenses
- Keeping Up With Industry Changes and Trends
7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)
Nowadays, individuals are starting to learn that a 9-5 paycheck simply won’t cut it, especially if you are supporting a family.
If you want to stop worrying yourself to death about whether or not your current pay check will last until the end of the month, you need to find other ways to earn an income. One of the very lucrative ways to do that is by pitching a tent in the Wedding Rental Business.
When starting this business, note that deciding on a legal entity for your private rental business is not difficult as long as you follow the right steps.
In this business, we strongly advise that you either choose a general partnership, a limited partnership, an LLC, a “C” corporation, or an “S” corporation. Have it in mind that all these entities indeed have their individual advantages and disadvantages.
You cannot just wake up and decide to pick a legal structure, this is because there are some factors you should consider before choosing a legal entity for your Wedding rental business, which includes but not limited to: limitation of personal liability, ease of transferability, admission of new owners, investors’ expectation and tax issues.
We strongly advise that you start your Wedding rental business as a Limited Liability Company (LLC) and in future convert it to a ‘C’ corporation or even an ‘S’ corporation especially when you have the plans of going public. Also, have it in mind that Upgrading to a ‘C’ corporation or ‘S’ corporation will give you the opportunity to grow your Wedding rental company so as to compete with the big fishes in the industry.
You will also have the advantage of generating capital from venture capital firms and the stock market, you will also enjoy separate tax structure, and you can easily transfer ownership of the company.
8. Choose a Catchy Business Name
- Easy Party & Event Rentals
- Purple Sky Rents & Events
- Punctual Party Rentals
- Glowing Star Productions
- Classic Party Rentals
- Wedding Glamour
- First class Event Rentals
- Dynamic Entertainment Productions
- Elegant Beginnings
- Unique Linen LLC
- Majestic Rental Station
- Party Elegance
- People Rentals
- Wedding Perfect
- Wedding party
- Putting on the Ritz
- Royalty Rentals
- Concord Rental
- Skyline Tent & Party Rentals
- Strong Knight Party Rentals
9. Discuss with an Agent to Know the Best Insurance Policies for You
We believe that any venture that deals with lots of equipment, resources and assets should always have insurance as a protective measure.
Even though it may not seem like such a big deal at the beginning, but as you purchase more equipment, the need to insured them becomes greater. This is because that’s how you earn your income. Insurance policies to be needed may include;
- General insurance
- Health insurance
- Risk Insurance
- Payment protection insurance
- Liability insurance
- Workers Compensation
- Overhead expense disability insurance
- Business owner’s policy group insurance
10. Protect your Intellectual Property With Trademark, Copyrights, Patents
It is sincerely true that intellectual protection might not be a priority in this industry, but you need to make sure that all equipment and tools used by your company are properly gotten, and all the necessary steps required to check its originality and authenticity in the state that you reside is followed to the latter.
11. Get the Necessary Professional Certification
You need to know that this industry is one of the industries that is highly regulated so as to prevent costly breaches as it relates to persons and their properties. So of you are so keen on doing this business, we suggest you should acquire some necessary qualifications that is needed to ensure that you remain tops in whatever you do.
In the United States of America, the most recognized 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. Another vital certification is the American Association of Certified Wedding Planners (AACWP) certification.
12. Get the Necessary Legal Documents You Need to Operate
It is very important to state that one of the most crucial steps on how to start a wedding rental business that you simply cannot miss is getting the necessary permits to run your business. Though it may differ depending on what state you are from, here are the basic permits including insurance that you will need to get before you start this business.
Business Tax Permit Registration
Indeed you will need a business license otherwise known as occupational license or business permit. Note that this license proves that you have the right to run a wedding rental business as mandated by your local government.
It is indeed very true that any business name or trade name must be registered for it to be considered as legit. Note that this is also where you identify your business model – it can either be a sole proprietorship, a partnership, or an LLC.
Federal Tax ID Permit
We all know that every business must pay taxes, which is why an EIN is a must. Also, you need this permit when hiring and paying your employees.
Wholesale License/Seller’s Permit
This license might seem irrelevant to you, but note that any party that is involved in wholesale purchase or sale must have a permit, regardless of whether you are the buyer or seller. And as a wedding rental business, you will be doing a lot of bulk purchases of tables, chairs and party favours.
13. Raise the Needed Startup Capital
Note that no matter how grand your dreams and plans for your business are, if you don’t have the necessary funding to back it up, all your dreams will go to waste. We believe that you don’t need a lot of money to start a rental business, but money is still necessary, especially if you plan on setting up shop in a physical location. Ways to get it may include;
- Getting money from personal savings and sale of personal stocks and properties
- Getting money from investors and business partners
- 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
14. Choose a Suitable Location for your Business
Your choice of location for your business is one of the most important decisions you need to make. Once you get it wrong with the location, you have more likely killed your business even before you started. Below are some of the factors you should consider before choosing a location for your wedding 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.
- Wedding rental businesses should be located near residential areas.
15. Hire Employees for your Technical and Manpower Needs
In this industry, a lot of wedding rental business owners started out on their own. This makes it easier to plan for weddings and to make sure everybody sticks to a set game plan. But note that there will always be more weddings than you can reasonably work, so when you have more interested clients than you have time to serve them, it may be time to hire a partner or a team.
Even though it might make things a little harder to organize, it does give you the flexibility of hiring people that are naturally better at some aspects of the job where you are weaker. Then you should also know that your rental equipment is your bread and butter – your business literally depends on it. Here are some tools that will help you gather all the necessary items you will need for your business.
Note that it is better to under-buy your equipment rather than over-buy. We believe there’s nothing wrong with being ambitious, but you also have to think about your budget. When starting this business, your wedding rental business will need the basics: Party tents, folding chairs and tables, and they will do just fine for a start.
Remember to always buy in bulk
Even though you may never want to purchase any equipment before you actually need to, it is a good thing to always buy what you know you will need in bulk. Party favours, banners, chairs and tables.
Do not forget to rent equipment
We believe that you don’t even need to buy all the equipment you need for your next wedding. Truly, one day you will have your own tables, tents and chairs complete with your company logo, but for now you can always just rent the individual items, and then rent them out as an entire wedding package.
Create outstanding relationships with suppliers
Experts’ advice that you see your suppliers as your lifeline. Note that if you build good working relationships with them, you’ll get a lot of perks such as discounts on your purchases. Also you will be able to order anything in advance, and even if they don’t have what you need in stock right now, they will go and procure one for you.
We believe it can be very hard to offer the full package when it comes to wedding handling. This is why you should consider finding partners in relevant industries to help you fulfill all your client’s needs. Take for instance, if all you can provide is the venue, seating, and shelter, but your client wants food, you can team up with a local catering service to seal the deal.
Apart from just equipment, you need to think of two major areas if you plan on making it big someday: storage and transportation. Indeed renting is fine, but actually owning the equipment you are using gives you more security. You need to plan on how and where to store your tools.
Also remember that transportation is another important factor. Note that no one would take on a wedding rental company that doesn’t transport their own equipment; and renting a mover truck each and every time you have an event can get pretty expensive.
The Service Delivery Process of the Business
By mere looking around the industry, we can literally state the service process of the industry because it is very simple and straight to the point. It starts with you getting the contract to provide rental services for a wedding at a fixed date and location.
You need to ensure that this is carried out effectively; likewise you might be required to carry out some extra services such as being in charge of catering for the wedding and maybe arranging the honeymoon.
16. Write a Marketing Plan Packed with ideas & Strategies
We believe that the key ways to market and promote have already been mentioned. You should use the combination of a professional-looking website, social media presence, and advertisements via newspapers, radio and television. Flyers, business cards, and other print advertisements at locations like florists and hotels can also help to catch the eye of couples planning their wedding. Things to consider may include;
Indeed rebranding can be the cornerstone of a successful marketing strategy, yet a lot of business owners choose to rebrand simply because they aren’t sure what else to do. It is very important to state that rebranding is an intentional marketing technique designed to deliver long term results.
For a wedding rental business, owners are often inspired to rebrand after analysis has demonstrated that the current brand is losing its impact in the marketplace.
Using Geolocation Marketing
Almost everyone in this our modern age have a smartphone. Very good marketers believe that smartphone marketing is the next big promotional trend and are investing in strategies that leverage on the mobile computing power of today’s consumers.
Also with GPS components, today’s smartphones give consumers the ability to perform navigation and other geolocation tasks. Note that in this business, geolocation features can be a powerful weapon in your marketing arsenal. Gaining these geolocation capabilities need sophisticated tools and marketing strategies.
Having a coordinated mailing campaign boosts your company’s profile and draws new customers into the business. Note that third-party providers have a reputation for generating accurate mailing lists that can be sorted to accommodate niches and subsections of the market.
17. Develop Iron-clad Competitive Strategies to Help You Win
In this business, there is no such thing as starting too early. As soon as you start your business, you need to think of ways to spread the word. Here are some easy, tried-and-tested ways on how to market your business without spending too much money.
- Making use of social media
- Trade fairs and exhibitions
- Online forums and communities
- Paid advertisements
- Print out business cards
18. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity
To boost your brand awareness and create a corporate identity, offer incentives or prizes to people who refer friends to you. Also try sponsoring monthly parties where you talk about how people can have a perfect wedding, and offer them a chance to win a nice door prize for attending.
Also apart from ideas like these, the best thing you can do is to do the best job possible on the weddings you are contracted and let positive word of mouth do the rest! Ways to boost your business Brand Awareness is simply outlined below.
- You should 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.
- We also advice that you advertise your business in relevant magazines and websites.
- You also need to list your business in local directories (both online and offline).
- We also advice that you promote your business on satellite TV and radio stations.
- Engage in direct email marketing.
- Make use of the internet (social media platforms and your official websites).
- You have to make sure 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.