Do you want to start a party rental business from home? Find here 5 niche party rental business ideas and opportunities for your ready reference. Also, the article includes a detailed party rental business plan checklist for your ready reference.
Nowadays, the rental industry is growing rapidly. And party rental is such a business that you can start both part-time or full-time. And definitely, it helps to enhance your monthly income even when you are in a job.
Additionally, the business is ideal for women who want to stand on their own feet and become financially independent. Even, the business is perfect for moms also. However, the business demands small capital investment, proper planning, and a dedication to achieving success.
Generally, a party rental business doesn’t demand any specific educational background. However, pursuing courses in tourism and hospitality management is definitely helpful. Additionally, specific training in marketing and soft skill development will help you a lot in building the business properly.
9 Steps to Start A Party Rental Business
Step 1 – Market Research
You must do extensive market research before starting the business. Basically, party rental is a localized business. So, you need to understand the specific demand and demographics too. Also, you need to understand your competition, what your services should cost, and what the demand is for these services in your area. And then only, you can identify your target niche.
Definitely, you can start a full-fledged party rental service. However, starting with a niche will help you in providing specialized services with small startup capital investment. In addition to that, you need to determine whether you will cater to domestic or corporate clients. Because the requirements are utterly different in the two cases.
Step 2 – Select the Type of Party Rental Business
To run a party rental business, it is extremely important to decide on the type of venture to start. Some are listed below for you to consider:
Tables & Chairs
If you want to start a small venture in the party rental industry, then you can consider this. Basically, there are several small parties and get-togethers where people need only tables and chairs. So, definitely, they will prefer to hire this type of providers who offer niche service.
This is another great opportunity for starting a party rental business. People order the coffee machine not only for functions but also at home when there is a gathering of friends and relatives too.
Renting a sound system is a profitable business. In this segment, some of the most popular items are speakers, mixers, and other sound equipment. However, you must have some sort of skill and knowledge for operating those systems. Otherwise, you will need to hire specialized manpower.
If you want to cater to a niche party segment, then you can consider a birthday party rental business. Definitely, the business demands moderate capital investment, creativity, and proper planning. And in this business, you must provide every detail of supplies that may require a birthday party.
Wedding party rental is one of the most lucrative opportunities in this industry. In addition to that, it holds the 1st position in terms of volume and turnover. However, the business demands moderate capital investment and proper marketing planning.
Step 3 – Party Rental Business Plan
After identifying your target niche, you will need to craft the business plan accordingly. You can access business plan writing software. Otherwise, you can ask an expert for crafting your business plan according to your specific requirements. Basically, a business plan consists of the following chapters:
Mission & Vision statement
Products & Services
Step 4 – Party Rental Business License
After creating the plan, the action starts. First of all, you will need to identify your business entity. You can register the business as the sole proprietorship, or a partnership, or an LLC. Additionally, procuring a DBA (Doing Business As) is a must in the United States of America.
In addition to that, you will need a business license, otherwise known as an occupational license or business permit. This proves that you have the right to operate a party rental business as mandated by your local government.
Step 5 – Procure Equipment
This is the segment that needs capital investment. According to your target niche, you will need to procure the equipment and supplies. Carefully, determine the furniture segment. Check the price, durability, required storage space, and company warranty before placing the final order.
Some of the most common items are tents, tables, chairs, dinnerware, serving dishes, silverware, dance floors, lighting, linens, and other party essentials. However, the requirement depends on the niche services that you want to provide.
Step 6 – Storage & Transportation
When you are starting the business from home or any other commercial location, you must determine a space for storage. Basically, you must have safe and spacious storage for keeping the supplies when they are not in use.
In addition to that, you must have an arrangement for transport. It is not necessary to have your own vehicle. And it is better to hire a goods vehicle on-demand basis.
Step 7 – Fix Pricing
First of all, fixing the price properly is another important thing in this business. You must fix competitive pricing for your clients. However, you must ensure enough profits too. Additionally, never compromise your product or service quality for the sake of cheap pricing.
The gross profit of your company highly depends on your tariff plan and purchasing cost. Simply, you will need to keep the cost low as possible for increasing the profit.
Step 8 – Business Operation
Before you open the door of your business, you must fix the SOP. The SOP defines how you will receive the order, how you will going to process etc.
Additionally, you must have specific formats and arrangements for creating quotations, operating agreements, invoices, money receipts, etc. Also, get your business tools ready. Check whether you need accounting software or not.
Step 9 – Advertise your Business
A hyperlocal advertising strategy is a must in this business. You can consider publishing advertising in the local newspaper. Additionally, networking with event managers and other supply companies is also effective.
Apart from offline, you must promote the business online. Create your own business website. Clearly mention there your contact info and the services you offer. In the niche party rental business, you can consider mentioning supplies details. As an example, what type of chairs you provide or tents are available in which colors, etc. Concentrate on social media.
Basically, social media is the easiest way to advertise. And finally, concentrate on networking. The overall success of this type of business highly depends on your communication style, performance, and client satisfaction. Be rest assured, a satisfied client will definitely recommend you in his or her close circle.
We hope, this article will definitely help you in starting your own party rental business successfully.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.