A study done in 2019 found that the average American hosts seven parties a year, and it takes them 10 hours of labor each time. As you can tell, party planning can be a real headache, and people will leap at the chance to make things easier.
This is where party rental businesses can save the day. If you buy and rent out party equipment, then it can pay off, as you’ll get non-stop clients, making a ton of cash on what otherwise could be a one-time, wasteful purchase.
Are you interested in learning more? Then read on. We’ll discuss how to start a party rental business so you can fill a demanding niche.
Do Market Research First
There are staples for every party, but that doesn’t mean you shouldn’t find out more. Without thorough market research, you won’t be able to efficiently offer services that cater to the ideal client.
Understand your target market and assess the demand for party rental services in your area. This can give you a better idea of what to buy. For example, if there are lots of families around, then a bounce house purchase for kids parties is a wise investment.
Identifying who your competitors are is important too, but go further than that. See what their offers are, as well as pricing strategies. You want to one-up them to establish your own customer base.
Write Out a Business Plan
After figuring out what you’re working with, it’s time to create a detailed business plan. This document should outline your:
- Objectives
- Target market
- Services offered
- Pricing strategy
- Marketing plan
- Financial projections
Having a well-thought-out business plan will give you better direction. Plus, if you need investors, this shows them a solid plan that’ll convince them to help you out.
Register Your Business
Think about the type of business structure you’d like your company to have. The options include sole proprietorship, partnership, limited liability company (LLC), and corporation.
Most entrepreneurs choose the LLC route, as this offers them the most benefits. If you’d like to also go this route, Business Anywhere can assist. Our business registration service makes it simple to get your foot through the door, as we’ll handle all the paperwork for you.
Once you’ve registered your business, you should also obtain any necessary licenses and permits required in your locality. Make sure to do your due diligence since if you’re caught without the right licenses and permits, you may have to pay huge fees or even shut down your business.
Select Good Inventory
Decide on the types of party rental items you want to offer based on your target market and budget. Common rental items include tables, chairs, tents, linens, tableware, decorations, inflatable bounce houses, and audio-visual equipment.
When you know exactly what you want, establish relationships with reliable suppliers and manufacturers to ensure a steady supply of rental equipment at competitive prices. Try negotiating bulk discounts and favorable payment terms whenever possible.
You can often find some of this type of equipment for sale online, that is used or nearly new for even cheaper rates. Keep an eye on social media sales groups. You can build your inventory by buying from people who don’t have the space to store party equipment at a bargain rate.
Top Tip: The best places are often bridal groups!
Obtain Insurance
Your clients will be using equipment that you’ve bought, and they’re putting their complete trust in you. Of course, you’re committed to providing the best rental equipment possible, but things happen, and you want to be covered when they do.
Getting liability insurance is an absolute must. Not every state requires you to have it as a business owner, but it’s still a good idea to take out a policy. Not only will this protect your business should someone get injured while using your party equipment, but it’ll also give you a unique selling point (USP) against your competitors.
You should get general business insurance too. Most likely, you’ve spent a great sum of money to purchase your equipment, so you want some money back in case it breaks down, suffers damage, or gets lost.
Take Care of Delivery and Pickup Services
Determine your delivery radius and establish clear pricing for delivery, setup, and pickup services. You need to protect your company and time by setting reasonable terms in comparison to your rates.
It’s worth it to invest in reliable transportation vehicles and equipment, as they’ll provide safe and efficient delivery of rental items to event venues. If your clients can’t depend on you to deliver party decoration rentals on their big day, then your reputation will take a huge hit.
Create a Website
You’re practically ready to go now, so one of the last things you’ll have to do is create a website. Without one, you’ll lose out on tons of clients; most people nowadays start their customer journeys online.
On your website, you should showcase your rental inventory, services offered, pricing, and contact information. Invest in high-quality photos and videos of your rental items to attract potential customers.
In addition, you could also implement a user-friendly booking and reservation system that allows customers to browse your inventory, check availability, and book rental items online or over the phone. Ensure that you have clear policies regarding reservation deposits, cancellation fees, and delivery/pickup schedules.
Market Your Party Rental Business
Now that your site’s ready to go, it’s time to market your business. Utilize social media platforms, online advertising, and search engine optimization (SEO) techniques. These will all increase your online visibility and attract your target customers.
Don’t forget about offline marketing as well. Develop marketing materials such as business cards, brochures, and flyers to promote your business locally.
At the start, consider offering special promotions or discounts to generate interest in your services. Once people see how amazing your party rental equipment and customer service are, not only will they be repeat customers, but they’ll also spread the word.
Expand and Diversify
As your business grows, consider expanding your inventory to have a wider range of rental items and services. For example, if you started off with generic party rental supplies, you can get into the niche of kids’ party rentals.
Explore opportunities to collaborate with event planners, caterers, and other vendors to offer comprehensive event solutions. This is a fantastic way to network with local companies and help one another out.
That’s How to Start a Party Rental Business
Knowing the steps of how to start a party rental business will give you an advantageous head start. While others are still running around confused about starting their own companies, you’ve got a clear plan in mind.
Now, all that’s left is putting that plan into action. And with the right resources and tools, you’ll be able to do so successfully.
Get started on creating your party rental business by signing up with Business Anywhere today. On top of business registration services, we can also be your online notary and registered agent. Plus, we have virtual mailboxes available.
