A party rental business can be among the most lucrative and low-risk avenues to enter the field of event planning. Whether it’s a birthday party, wedding, corporate event, or backyard gathering, people will always require items such as tables, chairs, tents, decorations, and more from party rental services to add the final special touches to their celebrations.
Due to the growing demand for well-structured events and celebrations, the business of party rentals has been a popular choice among budding entrepreneurs and those looking for a side hustle. Setting up depends on a very minimum investment; over time, it can build up to accommodate more stock or specialised services.
This guide will walk you through everything you need to know about starting your party rental business, from planning and setup to marketing and scaling. Whether you’re looking to run it part-time from home or turn it into a full-time venture, this article will give you the roadmap to get started the right way.
Understanding the Party Rental Business
The party rental business is responsible for supplying everything needed to host an event or celebration. Instead of going to buy chairs, tables, tents, or a sound system for use in one event, customers prefer to see you renting them. You will provide these items, deliver them to the event site, and perhaps even place some of the equipment.
It is a business that caters to everything: from birthdays to weddings, anniversaries, and baby showers to corporate events, school events, and even community festivals. So much, and so well, that Lapis attracts the clients to come back.
There are two kinds of party rental businesses:
- General party rental services: Rent out a wide variety of properties such as tables, chairs, canopies, lighting, linens, etc.
- Niche party rentals: They would concentrate on an event type such as weddings, children’s parties, or luxury events with fine décor and styling.
What makes this business great is that most of your equipment can be reused numerous times, and this keeps your long-term costs low. With an inventory and networking in place, you will grow through referrals, local partnerships, and online bookings.
10 Steps to Start a Party Rental Business
Step 1. Market Research
Before starting your party rental business, it’s important to understand the local market. Every area has different needs, competition levels, and customer preferences. Doing proper market research will help you decide what to offer, how to price your services, and who your target customers are.
- Check your competition: Look at other party rental businesses in your area. What items do they rent? What are their prices? What are customers saying in reviews?
- Identify gaps: Maybe there’s a lack of kids’ party equipment or luxury wedding rentals. These gaps are your opportunities.
- Understand customer demand: Talk to event planners, local venues, or even recently married couples. Find out what services are most in demand.
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 of the most profitable party rental business ideas are listed below:
a) Tables & Chairs Rental
If you want to start a small venture in the party rental industry, then you can consider this. 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 provider who offers niche services.
b) Coffee Machine Rental
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.
c) Sound System Renting
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 to operate those systems. Otherwise, you will need to hire specialized manpower.
d) Birthday Rental
If you want to cater to a niche party segment, then you can consider a birthday party rental business. The business demands moderate capital investment, creativity, and proper planning. And in this business, you must provide every detail of supplies that may be required for a birthday party.
e) Wedding Rental
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. Name Your Party Rental Business
It is without a doubt, naming a business is one of the most essential steps in creating a successful enterprise. It holds the same for a party rental business. Select a catchy and attractive name for a party rental company so that customers can relate your service offerings to the name of your business.
Furthermore, check website domain availability similar to the business name. If the domain name is already taken, it would be difficult to have a website URL in sync with the company name.
Step 4. 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 to craft your business plan according to your specific requirements. Even if you’re starting small, a basic business plan helps you stay focused and organized. Include the following:
- Business goals and mission
- List of rental items and services
- Target market and location
- Pricing and revenue estimates
- Startup costs and monthly expenses
- Marketing and growth strategy
A clear plan makes it easier to secure funding, purchase equipment wisely, and build a sustainable business over time.
Step 5. 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 a sole proprietorship, 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 6. 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 7. 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 a transport arrangement. It is not necessary to have your vehicle. And it is better to hire a goods vehicle on-demand basis.
Step 8. 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 as low as possible to increase the profit.
Step 9. 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 10. 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 business website. Mention your contact info and the services you offer. In the niche party rental business, you can consider mentioning supply details. As an example, what type of chairs do you provide, or are tents 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 assured, a satisfied client will recommend you to his or her close circle.
Frequently Asked Questions
How much does it cost to start a party rental business?
The investment needed to launch a party rental business will depend on the size and scale of the operation. On average, the initial cost of starting a party rental business will be in the range of $15,000 to $50,000. The cost includes equipment, license fees, a truck for transportation of items, and promotional investment.
How much can you earn from a party rental business?
On average, a small party rental business can make anywhere from $20,000 to $50,000 per year. However, the earnings will vary based on your location, level of competition, and local demand for party rental needs.
Editorial Team at 99BusinessIdeas is a team of experts led by Rupak Chakrabarty with over 25 years of experience in starting and running small businesses. Started in 2010, 99BusinessIdeas is now one of the largest free small business resources in the industry.