Party Rental Business Plan Template
Written by Dave Lavinsky
Party Rental Business Plan
Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their party rental companies.
If you’re unfamiliar with creating a party rental business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.
In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a party rental business plan step-by-step so you can create your plan today.
Download our Ultimate Business Plan Template here >
What Is a Business Plan?
A business plan provides a snapshot of your party rental business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.
Why You Need a Business Plan
If you’re looking to start a party rental business or grow your existing party rental company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your party rental business to improve your chances of success. Your party rental business plan is a living document that should be updated annually as your company grows and changes.
Sources of Funding for Party Rental Businesses
With regards to funding, the main sources of funding for a party rental business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan (hand it to them in person or email to them as a PDF file) and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for party rental companies.
How to Write a Business Plan for a Party Rental Business
If you want to start a party rental business or expand your current one, you need a business plan. The guide and sample below details the necessary information for how to write each essential component of your party rental business plan.
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your executive summary is to quickly engage the reader. Explain to them the kind of party rental business you are running and the status. For example, are you a startup, do you have a party rental business that you would like to grow, or are you operating a chain of party rental businesses?
Next, provide an overview of each of the subsequent sections of your plan.
- Give a brief overv iew of the party rental industry.
- Discuss the type of party rental business you are operating.
- Detail your direct competitors. Give an overview of your target customers.
- Provide a snapshot of your marketing strategy. Identify the key members of your team.
- Offer an overview of your financial plan.
In your company overview, you will detail the type of party rental business you are operating.
For example, you m ight specialize in one of the following types of party rental businesses:
- Full-service party rental retail store : This is the store to visit when you need everything from A to Z for your next party. Whether it’s chairs and tables, linens, or special cooking equipment, this store delivers your items and picks them up after your party.
- Partial-service party rental store : You may choose everything you need for your party at this type of party rental store; however, you will need to provide transport to pick up and return all party rental items the next day.
- Online party rental business: An online party rental store generally has excellent pricing; however, you will need to go to various locations to pick up and return party items. This may involve visiting more than one location for various items, as the online store doesn’t have a brick and mortar store location.
In addition to explaining the type of party rental business you will operate, the company overview needs to provide background on the business.
Include answers to questions such as:
- When and why did you start the business?
- What milestones have you achieved to date? Milestones could include the number of rentals serviced, the number of positive social media reviews, reaching X number of customers served, etc.
- Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.
In your industry or market analysis, you need to provide an overview of the party rental industry.
While this may seem unnecessary, it serves multiple purposes.
First, researching the party rental industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.
The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your party rental business plan:
- How big is the party rental industry (in dollars)?
- Is the market declining or increasing?
- Who are the key competitors in the market?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- What is the industry’s growth forecast over the next 5 – 10 years?
- What is the relevant market size? That is, how big is the potential target market for your party rental business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.
The customer analysis section of your party rental business plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: individuals, families, party groups and corporations.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of party rental business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.
Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers. Ideally you can speak with a sample of your target customers before writing your plan to better understand their needs.
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Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are othe r party rental businesses.
Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes stores that sell tables, chairs, linens, etc., online stores that sell party items, and DIY services for parties. You need to mention direct competition, as well.
For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as
- What types of customers do they serve?
- What type of party rental business are they?
- What is their pricing (premium, low, etc.)?
- What are they good at?
- What are their weaknesses?
With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
- Will you provide options for delivery and pick up of party supplies?
- Will you offer products or services that your competition doesn’t?
- Will you provide better customer service?
- Will you offer better pricing?
Think about ways you will outperform your competition and document them in this section of your plan.
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a party rental business plan, your marketing strategy should include the following:
Product : In the product section, you should reiterate the type o f party rental company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide a petting zoo experience, a holiday-themed party setup and take down, or a casino or bingo fundraiser setup and take down?
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the products and/or services you offer and their prices.
Place : Place refers to the site of your party rental company. Document where your company is situated and mention how the site will impact your success. For example, is your party rental business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.
Promotions : The final part of your party rental marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:
- Advertise in local papers, radio stations and/or magazines
- Reach out to websites
- Distribute flyers
- Engage in email marketing
- Advertise on social media platforms
- Improve the SEO (search engine optimization) on your website for targeted keywords
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your party rental business, including answering calls, planning and providing rental equipment, linens, furnishings, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth party rental delivery, or when you hope to reach $X in revenue. It could also be when you expect to expand your party rental business to a second location.
To demonstrate your party rental business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally, you and/or your team members have direct experience in managing party rental businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a party rental business or successfully working in an equipment rental store.
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance s heet, and cash flow statements.
An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will you see 25 customers per week, and/or offer large-group rental discounts ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your party rental business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Cash Flow Statement
Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.
When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a party rental business:
- Cost of rental furnishings, linens and equipment
- Payroll or salaries paid to staff
- Business insurance
- Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of contracted parties booked six months ahead.
Writing a business plan for your party rental business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the party rental industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful party rental business.
Party Rental Business Plan FAQs
What is the easiest way to complete my party rental business plan.
Growthink's Ultimate Business Plan Template allows you to quickly and easily write your party rental business plan.
How Do You Start a Party Rental Business?
Starting a party rental business is easy with these 14 steps:
- Choose the Name for Your Party Rental Business
- Create Your Party Rental Business Plan
- Choose the Legal Structure for Your Party Rental Business
- Secure Startup Funding for Your Party Rental Business (If Needed)
- Secure a Location for Your Business
- Register Your Party Rental Business with the IRS
- Open a Business Bank Account
- Get a Business Credit Card
- Get the Required Business Licenses and Permits
- Get Business Insurance for Your Party Rental Business
- Buy or Lease the Right Party Rental Business Equipment
- Develop Your Party Rental Business Marketing Materials
- Purchase and Setup the Software Needed to Run Your Party Rental Business
- Open for Business
Where Can I Download a Free Business Plan Template PDF?
Click here to download the pdf version of our basic business plan template.
Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.
We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.
Don’t you wish there was a faster, easier way to finish your Party Rental business plan?
OR, Let Us Develop Your Plan For You
Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success. Click here to see how a Growthink business planning advisor can create your business plan for you.
How to start a party rental business in 10 steps
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If you are looking for tips on how to start a party rental business in 2021, then you’re in the right place! 🎉
If there is one thing to learn from living through pandemics and lockdowns, it’s that a lot can change in a year. As a software provider for party rental businesses and live event suppliers , we’ve experienced firsthand the impact of Covid-19 on our industry .
While this has been a very dark moment for the industry, many companies used this time to work on their strategies and improve their business processes.
And, contrary to popular belief, starting a party rental business today could be one of those milestones that you'll look back on years from now as one of the best decisions you’ve ever made.
But if you want it to be successful, you're going to have to take the time to reflect and strategize on your future business.
To guide you through this, here are 10 steps you can follow on how to start a party rental business in 2021 :
Step 1: Study your market Step 2: Write your business plan Step 3: Register for business licenses and permits Step 4: Purchase the right equipment Step 5: Implement a pricing strategy Step 6: Get insurance Step 7: Keep track of your customers, orders, and due dates Step 8: Invest in marketing Step 9: Monitor your progress Step 10: Grow your team Things you should consider
Step 1: Study your market
When starting a party rental business , the first thing that you should do is study your market. This step is called market research.
Market research is the process of gathering information on your target audience and market to understand their wants and needs.
Studying your market will provide you with insight into what methods work for your competitors, how they operate, and the services and prices they offer.
You can then use this information to determine how you should structure your product or services to bring an added value to your target market and find a competitive advantage for your party rental business.
Here are some questions that you can ask when conducting market research:
- Who are the current customers?
- What is their purchasing power?
- What types of products or services are they looking for?
- Where do these customers look for solutions?
- What are the current options available?
- What added value can you bring?
- What challenges do customers face?
- What are the challenges for the current market?
- How many people would be interested in your offer?
- What alternatives are currently available?
- What do potential customers pay for these alternatives?
- What influences purchases and conversions among your target audience?
Step 2: Write your business plan
After you’ve studied your market and identified business ideas, the next step in starting a party rental business is to start structuring your ideas in a business plan .
A business plan is a document that outlines your business’s objectives , and the strategies that will be implemented to help you achieve them.
In your business plan, you should include:
- findings from your market research
- your target market
- your go-to-market strategy
- your starting capital
- financial projections
- your business purpose, and mission
Writing a business plan down is an essential part of starting a party rental business because it makes you consider and research important aspects of the business that you may have ignored previously.
You should keep in mind that a good business plan is never completely done. As your business starts to grow, you will start making changes. It is always a good idea to review and update your business plan as things change or at least once a year to reflect on your goals for the upcoming year.
Updating your business plan will help you strategize , stay relevant in your market, and plan for what needs to be done to achieve your desired results.
Step 3: Register for business licenses and permits
When starting a business, you are expected to have the right licenses and permits for the country or state that you are operating in. Failure to do so can result in hefty fines, or even cause your business to be shut down.
Although there are generally no licenses required specifically for party rental businesses in most countries, business owners should check the local requirements of their country or state to be sure that they are in compliance with the laws and regulations that apply there.
If you are in the United States, you can apply for federal or state licenses and permits here .
Step 4: Purchase the right equipment
When it comes to purchasing equipment for your party rental business, you should take the time to ask customers for the types of party rental equipment they tend to look for.
By doing so, you will start seeing trends emerge pointing toward popular items such as:
- folding tables
- folding chairs
- and party tents
But you will also see unique items such as:
- lighting systems
- photo boots
- bounce houses
- or food displays
Since purchasing equipment is likely to be one of your biggest investments, you want to make sure that you avoid idle inventory and that you don’t overspend in the beginning. It is cheaper and easier to buy more equipment later than to get rid of excess unwanted equipment.
🔎 Idle inventory is having items in your inventory that are not being used and are not needed to generate profit.
Therefore, you should not purchase all of the equipment that they mention when you launch your company, instead, you should make a priority list of equipment you need to purchase and a list of equipment that can be subrented .
By having a combination of your own inventory and a list of equipment you can subrent, you will be able to fulfill more of a customer’s needs in one sitting.
And if they can get all of the items they need from a single vendor instead of relying on three or four separate companies, that’s the option they’re most likely to take.
⚠️ When purchasing equipment, you should also consider investing in vehicles that can be used to transport and set up the equipment at the location of the events.
Step 5: Implement a pricing strategy
Based on your research in step 1 and 2, you will have information on:
- what your competitors are charging,
- what your potential customers are willing to pay,
- and how much you need to charge in order to break even or be profitable.
Pricing your services can be tough, but you can use the prices that your competitors charge as a reference.
However, you should keep in mind that if you set your prices too low , it will be harder for your company to break even, and it can make potential customers think twice about renting from you because they might think that there is a catch or that something might be wrong with your services.
And of course, if you set your prices too high , you will miss out on valuable sales.
There are dozens of pricing models and strategies that can help you better understand how to set the right prices for your audience and revenue goals.
Here are some pricing strategies examples that you can consider using:
- Cost-Plus Margin : A pricing method in which the selling price of a service is determined by adding a profit margin to the costs of the service.
- Demand-Based Pricing : With this pricing method, the increase and decrease in consumer demand determines the pricing.
- Competition-Based Pricing : Here, prices are determined by the prices set by your competition.
- Price Bundling : The pricing is set for a group of products and grouped products are not rented out separately.
Step 6: Get insurance
Just like business licenses and permits, you will need business insurance in order to operate safely and legally.
Running a party rental business means purchasing and renting both indoor and outdoor equipment, like lights, speakers, or tents. Since you've invested money into these equipment, and your company relies on them, you should insure them in case any accidents happen.
You also want to make sure that you are protected in the event that someone gets hurt or injured while using your equipment, this is usually covered with liability insurance .
Liability insurance is mandatory for party rental businesses in some places and sometimes your business isn’t legally allowed to operate without it. You should check your local laws to see if this applies to you.
It is strongly recommended to have liability insurance for your own safety, even if it isn’t mandatory in your area. Many potential customers will also consider you more trustworthy if you present them with proof of that insurance.
You should consider consulting with an insurance broker to help you choose the best insurance policies for your party rental company, they will help you assess the risks involved in the industry, and tell you what are the best insurances you should choose.
Step 7: Keep track of your customers, orders, and due dates
Managing a party rental business requires having strong organizational skills . You are in an industry with strict deadlines and many moving parts, so it is essential that you keep track of your projects and resources accurately if you want to plan events successfully.
Whether you are planning weddings, parties, or corporate events, you can use a dedicated rental management tool like Rentman, to keep track of your customers , orders , and inventory availability in a single platform.
Rentman will help you manage all of the steps involved in running a party rental business more efficiently, save you time in planning events and give your financial documents a more professional look.
With Rentman’s built-in template editor , you customize your own templates with images, personal texts, and your corporate branding to make your quotes easily recognizable.
You can also connect Rentman to Mollie , Stripe , and WooCommerce to accept online payments , and showcase your products in a webshop .
Still not sure if we’re the right match for you? Here’s how we helped Boozed Event Design work more efficiently .
Step 8: Invest in marketing
Starting a party rental business can be difficult, let alone learning how to market one. However, investing in marketing should be one of the first things you should consider doing when starting your business.
Marketing helps you build brand awareness and credibility , which is very important in the early stages of your business, as you want to make potential customers familiar with your brand and convince them why they should choose you over your competitors.
As a result, marketing efforts will have an effect on your turnover, pricing, promotions, and your advertising strategies.
Here are some examples of marketing techniques that you can use to build brand awareness:
- networking with local businesses (event planners, event venues…)
- advertising your business in relevant business magazines, tv and radio stations
- social media advertising (Facebook ads, Youtube ads…)
- search engine advertising , by posting ads on Google and Bing result pages or other websites using CPC (cost per click)
- creating and managing your “Google My Business” listing
Step 9: Monitor your progress
When you track your progress, you naturally become more purposeful about the work you do.
You also have more insight into the value that you’re creating for your business so you can show your team the results of your efforts.
With Rentman, you can create a personal dashboard to monitor your progress and use your data to make better decisions:
- identify which equipment is the most profitable,
- what your next purchase should be,
- where you lose revenue,
- and much more…
Step 10: Grow your team
The final step is to grow your team.
Hiring your first employees is a huge step when starting a party rental business. Having the extra manpower means that you can assign tasks to members of your team and dedicate your time to other tasks with a higher priority.
But before bringing just anyone on board, you need to understand that extra manpower entails a whole new string of legal obligations, liabilities, expenses, and, of course, paperwork.
The number of employees you decide to hire in the first stages of your business will depend on your needs. But, as your business grows, you will need at least a few employees to take and prepare orders , deliver and pick up equipment and deal with customer service .
Here are some examples of the types of employees you can recruit when starting a party rental business:
- delivery drivers
- crew members
- sales/marketing specialists
The employees that you hire should have a few key qualities, this includes: flexibility , passion, and trustworthiness . It is important to hire people who are flexible enough to take on diverse responsibilities until you can expand further. And, since every employee plays a key role in your business, it is important to hire people you trust.
💡 Another option you have is to outsource some of these tasks to freelancers or independent contractors.
“No one can whistle a symphony. It takes a whole orchestra to play it.”
Things you should consider
The party rental industry can be very seasonal, there are usually more events during holidays or when there is good weather.
It is also a competitive industry . As a business owner, you’ll need to be creative and stay up-to-date with current trends.
Finally, networking is an important factor in a party rental business’ success. You’ll need to create and maintain a good relationship with local event planners and event venues to bring in new business and explore new opportunities.
Start a free 30-day trial of Rentman today and start running your party rental business more efficiently!
Cover photo provided by Blunotte Eventi
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How to Start an Event or Party Rental Company
Your ultimate guide to starting a thriving new event business. Whether you're specializing in table and chair rentals, wedding rentals, party games and inflatables, or something else, find out how to start your entrepreneur journey here.
TABLE OF CONTENTS
How do i start a party rental business or event company.
If you're wondering how to start an event rental business, you've come to the right place. The events industry is a close-knit community with event professionals of all different backgrounds and niches. Whether you start a party rental business from home or dive right into purchasing a warehouse, there is no one path for you to follow in order to reach your event rental dreams! From starting a party rental company, to a wedding rental business, to an event production company, and more— we've listed the first steps you need to take to succeed. Get ready to grow a thriving business today (don't forget to bookmark this page for easy access later!)
If you're not already convinced that the events industry is for you, you should know that, according to Bizzabo , the industry is expected to grow 11% (up to $1,552.9 billion) by 2028. Get in now and hit the ground running with these best practices from seasoned industry experts. Let's dive in!
Table of Contents:
- What Do I Need to Start an Event Rental Company?
- Types of Event Rental Companies
- 4 Steps Before You Launch
- How to Develop an Event Rental Business Plan
- Legal Stuff: Event Rental Business Insurance
- Checklist: First Month of Business
- Top 5 Challenges to Avoid With SOPs
- #1 Secret to Success: Event Rental Tech
WHAT DO I NEED TO START AN EVENT RENTAL COMPANY?
You're eager to dive into the world of events— it's an exciting industry with a value of $1.14 billion in the United States as of 2019. Lots of individuals make a great living from the industry— and now you want to do the same. Do you have the top 5 things you need to start a successful business?
Before you officially launch your event rental business, you need to have items to rent out! You don't need all the bells and whistles right away— the basics, like tables and chairs, are a great starting point. Be careful of trends, too. While it may feel like you NEED to spend money on that newfangled item, trendy inventory items can be wallet-draining when they go out of style sooner than expected.
PRO TIP: If you're not sure exactly which inventory to buy first, you might set up your website wishlist and see what people request first before you invest.
Read more about where to buy event inventory , plus the best ways to manage and track your inventory now.
BUSINESS LICENSING AND INSURANCE
You can get in real trouble if you don't have the proper insurance for your company. Take general liability insurance, the most important type of insurance to have: in addition to protecting you against lawsuits from customers, most major venues and organizations will only rent from an event rental business who's covered by insurance. Once you've got your general liability insurance, you should also look into other types your business may need, including commercial property and auto insurance. TRUiC goes into more detail about how to start a party rental LLC here.
BRANDING & ONLINE PRESENCE
Now for the more creative side: branding. You want your brand to be unique, professional, and consistent. This means that all your marketing materials, from business cards to your website to the sides of your trucks, should have the same logo and color scheme. When it comes to branding, there's many variables to cover, including:
- Company name
- Logo and color scheme
- Business cards
- Social media
Once you come up with a name that suits your business, it's time to design your logo . You may do this yourself with a tool like Canva, or outsource to a graphic designer. Then, you want to use your new materials to create your online presence.
More people than ever before are shopping online, and many only trust companies they can explore on the Internet. Don't fall behind the competition before you've begun— invest in a great website so you can build your online presence. On top of your personal website, you should also consider creating a Facebook page, as well as a Google My Business account. This makes it more likely that potential clients will be able to find your business.
The #1 way you can set yourself up for success as a new business owner is to spend your time wisely. Tedious activity that eats up your day is only going to lead to burnout, and cause you to focus less on the high-level strategy needed for growth. Invest in smart tools to save you time (and money!) while you're getting your business off the ground. When asked what they would do differently if starting all over, many experienced event professionals say that they would've looked harder into their technology options from day one.
You might want to start a party rental business from home, garage, shed, etc. That's perfectly okay! If you have the means, you may consider investing in a larger storage space or warehouse. Storing event rental inventory can be a challenge, especially for new event professionals. If inventory gets lost or buried within your space, you aren't making money on it. This is why inventory tracking software for event companies is one of the best investments you can make for your inventory's return on investment. The ability to effectively manage inventory will prove to be crucial to your events rental business.
Lastly, you may want to consider investing in trucks or trailers to transport all your inventory to and from jobs. You may be okay to do without for now, but as you grow, this will become an investment that will save you money in the long run.
TYPES OF EVENT RENTAL COMPANIES
Whether you're looking to start a wedding rental business, an all-in-one party rental company, an event production company, or another unique event business, you need to know your niche and how you fit into the industry as a whole. We've listed the 5 most common event rental companies below. While it's not an exhaustive list, you'll get a broad understanding of the types of companies that make up the events industry.
GENERAL EVENT RENTALS
Are you looking to start a tents , tables, and chairs rental business? Specializing in event rentals is the perfect way to keep your options open. Regardless of the type of celebration, clients always need areas to sit and eat! These types of companies do well with all events: from graduation parties and mitzvahs to weddings and corporate events, the possibilities are endless.
Learn more about how to start an event rental company here .
DESIGN AND DECOR
If you're looking to get more creative in your event services, you may consider starting a custom design and decor event company . This includes everything from vintage rentals, to tabletop items, to truly custom pieces. You may have a more specific target market and tend to specialize in higher-end events such as weddings.
A/V, LIGHTING, AND PRODUCTION
Do you have a background in or a passion for event technology? An event design and production company may be perfect for you! Lots of clients for corporate events and weddings go all out with the event lighting, audio and video systems, and event staging and design. It's important that you have the right experts, such as lighting and sound technicians, to run this kind of company. If you have the expertise, you're likely to get lots of bookings because these businesses partner well with other vendors, too.
PARTY RENTALS AND GAMES, ENTERTAINMENT, AND INFLATABLES
You may want to get started in the game rental and entertainment business: these are the companies who bring the fun! This could include large arcade games, basic backyard fun like corn hole, or inflatables that get the good times rolling like moon bounces. Lots of these events are outdoors, so you may consider also investing in tent rentals to ensure your business isn't affected by seasonality more than it needs to be. Some entertainment companies also provide live entertainment such as characters for kid parties!
What wedding, corporate party, prom night, or other celebration isn't made better by a way to capture all the memories? Starting a photo booth rental company is the perfect way to give your clients a memorable event. This is a great niche for creativity, especially because lots of photo booth rental pros build their own pieces. It's a perfect business for someone who is always on top of the latest trends because there's often new technology rolling out.
Casino-themed events and rentals are incredibly popular. Even if you don't serve the Las Vegas region, you can still bring a little bit of Vegas to your clients. Lots of casino rental pros target corporate clients, who love all games from poker, craps, and roulette, to slot machines and money wheels. There's also a great opportunity for selling packages that include the equipment, the set-up, and the dealer.
In addition to all the niches we listed, there are still a ton more out there! Some event professionals specialize in everything from yard card signs to vintage prop rentals, portable toilets, and more. The event industry is huge, and the possibilities and creativity are endless.
3 COMMON MISTAKES EVENT PROS MAKE WHEN STARTING THEIR CAREERS
4 STEPS BEFORE YOU LAUNCH
1. research the market to determine where your opportunity is.
What type of event rental business should you start? Where do you want to begin your journey? Do you want to start a party rental business from home, or rent out space to hold your growing inventory? Do your research into the companies that make up the events industry (read the previous section for some helpful tips) so you can decide what's best for you. Once you're familiar with what's available, you then need to ask yourself: what's my background? What are my passions? What types of events and work am I most drawn to? Finally, what's in demand in my area?
For instance, Savannah Vintage & Event Rentals in Georgia started their vintage rental business as the first of its kind in Savannah. When planning her own wedding, Rachel Strickland realized there was no rental company dedicated to vintage inventory. So, she and her husband decided to take advantage of this strategic window of opportunity. They doubled the size of their business in the first six months of opening , and have continued to grow since.
Rachel pulled an incredibly smart entrepreneurial move: she did market research in her area to determine where she could best thrive with minimal competition. If you're entering an area with more competition than Rachel's experience, you'll need to understand who the competition is, how your company is different, and why clients should choose you over other similar companies.
2. Choose your niche and determine your unique value proposition (UVP)
Select your niche, and determine what your brand will be. One of the most important things you can do when starting a party rental business is determining your unique value proposition, or UVP. Your UVP is what separates you from competitors and tells your client the value they'll receive by choosing to work with you. When you know your brand and your value, you can better position yourself in the market to win clients over your competitors. What specific features of your company make you different? The answers to this question are your key selling points that you'll emphasize in your marketing.
You don't want to give off "World's Best Coffee" vibes— potential clients can see right through that. Instead of something generic like "Best event rentals ever," you'll want to dig deeper and more specific, with something like, "Worry-free full service rentals for your wedding— serving the Dallas Fort Worth (DFW) area."
Watch our webinar with NACE on how to identify and amplify your UVP.
3. Network with other event professionals and join industry organizations
So many event professionals regret not networking with others or finding a mentor when they started. Your industry peers have a wealth of knowledge to share, and have made mistakes that you can now avoid. Building authentic, meaningful connections with other event entrepreneurs is an important step in building a successful event business. Any true pro knows the meaning of "community over competition."
4. Get all legal business in place
Now that you know the type of company you're creating, how you fit in the industry, and how to connect with and learn from other event pros, you need to actually get the business up and running. Get a lawyer to review your branding, insurance, damage waivers, contracts , and more to ensure you're following all the best practices. Protect yourself, your company, and your clients before disputes come in.
HOW TO DEVELOP AN EVENT RENTAL BUSINESS PLAN
Before you start an event rental company, it's crucial that you take the proper steps to outline your business plan (which you can easily streamline with this easy-to-follow checklist ). By drafting an outline of your current trajectory and goals, you can foresee any potential issues that could arise. You may be creating a business plan for yourself, or you may be using it to seek funding from investors. Either way, you need to know the ins and outs of your business, the risks associated with it, and how to become— and remain— profitable.
Pro Tip: Create a 30-60-90 day business plan for your event rental business so you can hit the ground running. This is an outline of what you plan to do within your first 90 days of starting. Not only will a 30-60-90 day event rental business plan keep you on track, it will also show any investors or banks that you have an actionable timeline for your plan. Access the 30-60-90 day event business plan template (included in the full tool kit ) and checklist now to get started.
4 THINGS EVERY BUSINESS PLAN NEEDS
Company description + market analysis.
You understand the importance of defining your niche— now, add this to your business plan to convey the value of your product and service offerings to potential clients. You want to describe:
- What type of company you are and how you fit into the events industry
- Who your target market is: Not just the consumer, but also the event type— brides and grooms for weddings? Company party planners for corporate events? Parents of teens celebrating a mitzvah or sweet 16?
- Your competitive advantage: What sets you apart from competitors, and why is it important to clients?
- The team members you need: Delivery drivers? Salespeople? A web designer ?
You want to prove that your business can and will be profitable in your area. Once you determine who your target market is, make sure it aligns with the demand in the area. You may have the perfect idea for a wedding rental business, but if your area has an older demographic with lower statistical odds for getting married, it may not do well— even if your idea is stellar! On the flip side, you may want to start a premier tables and chairs business. If you don't do a market analysis and examine the competitors in your area, you may end up launching a company that's drowned out by a sea of long-standing businesses.
Not completing a marketing analysis can mean lots of time and money down the drain— put in the work now to avoid heartache in the future.
PRODUCTS AND SERVICES
In this section, you'll outline the products and services you offer: Vintage rentals and florals? All-in-one tents and tables? How about services, like standard delivery and pickup, or more specialty services like DJs or casino game dealers? How are you planning on utilizing packages? Do you know what your pricing structure will look like? The products and services section of your event rental business plan should outline all of this information. In addition, you'll also want to tie this section into your market analysis. What demand are you solving for with specific inventory items or packages?
FINANCIAL INFORMATION & STARTUP COSTS
If you're starting a company from the ground up, you should include your operating budget and a break-even analysis. What costs do you plan on incurring, and how will you mitigate these? If you start a party rental business from home, you'll immediately save in storage costs, but what will the cost of outgrowing your home be? In addition, if you're seeking funding, you'll also want to include the amount of cash you need and how you plan to use it over a given amount of time.
POTENTIAL CHALLENGES & OBSTACLES
Finally, you need to account for any potential risks you see as a threat to your success. Is it competitors? Is it inclement weather in your area? Are you trying to break into a tough, well-established market? Think through all the possible challenges you'll face as a new event company and write them down. Then, include solutions that could solve them, should these obstacles arise. The name of the game is preparation— you want to do everything you can at the beginning to prepare for the worst (and hope for the best).
WHERE SHOULD YOU CREATE YOUR BUSINESS PLAN?
We recommend creating your business plan with a digital format because it's 1) protected and less likely to get lost, 2) instantly accessible, especially if it's stored on the cloud, and 3) easily shareable, making it a breeze to send to anyone who may need it.
GET THE FULL TOOL KIT TO CREATE YOUR BEST EVENT BUSINESS PLAN [TEMPLATES INCLUDED]
Start your journey towards a thriving, profitable event business with the event rental business plan templates and easy-to-follow checklists to set you up for success.
LEGAL STUFF: EVENT RENTAL BUSINESS INSURANCE
Why is it important.
Event and party rental business insurance is one of the first things you need as a new business owner. Would you drive a car without insurance? No way! So why would it be okay to operate an event business without rental insurance? There is no safe amount of time to operate sans insurance. Without it, you open the doors to unwelcome disputes (without protection), lawsuits, and the potential to lose a lot of money. Additionally, if you're not covered by insurance, many other vendors (including venues), as well as organizations, will refuse to work with you. Protect yourself and your company with insurance for event and party rental companies— it's always better to be safe than sorry.
TYPES OF INSURANCE
General liability insurance.
This is the most important type of event rental insurance you need. General liability insurance for party rental companies covers everything from bodily injury and medical payments, to property damage, to legal defense, and more. While you pay to have insurance, the nightmare of having a situation occur when you're NOT covered is well worth the cost.
WORKERS' COMPENSATION INSURANCE
Workers' compensation, or workers' comp, protects employees who become injured or sick while working an event for your company. It covers medical care, disability benefits, and more. And, as a business owner, you're protected if you get sued by an employee or their family.
COMMERCIAL AUTO INSURANCE
If you decide to invest in trucks or trailers to transfer your rentals to and from events, you should consider commercial auto insurance. It protects you, your drivers, and anyone who is operating a vehicle being used for business purposes. It covers you in case of any injury or property damage with the vehicle involved.
WHAT TO DO IN YOUR FIRST MONTH OF BUSINESS
Pro Tip: One of the best ways to streamline success from the get-go is to create a 30-60-90 day event rental business plan. Get started easily with our template (included in the business plan tool kit !) and checklist .
CREATE A WEBSITE AND SOCIAL MEDIA ACCOUNTS
Cultivating an online presence is crucial for the success of your new event business, since the majority of shoppers explore a brand's page before doing business with them. Your website is your digital showroom, which gives potential clients a sneak peek into what you offer. Both your site and your social media platforms offer leads a first impression of your business, so you want it to be a good one!
There's a lot that goes into building a lead-generating online presence. Lots of event professionals have questions like, "Should I hire a developer?", "What platform should I host my website on?", and "Which social media platforms should I use?"
For answers to these questions and more, read our ultimate guide for how to build the best website for your event business .
COLLECT DATA ON INVENTORY DEMAND
This sounds more intimidating than it is! A great pro tip from event rental experts is to get cashflow going by showcasing inventory on your website ASAP— even if you don't have it in stock yet.
If you know when the inventory you ordered is expected to be delivered, you should:
Many events book in advance, so if you wait until your inventory is in stock, it could be another 4-6 months before people start booking! If you get your rentals up on your site right away, then you can start collecting deposits for items well in advance, get cash flowing, and have events on the books right away for when your inventory does arrive.
If you want to go a step further, you can also advertise inventory on your site before you even purchase it, to see if potential clients are interested. This helps you see which items are worth heavy investment. Just don't forget to add in the item description that the item may not be available for a few weeks— you don't want to set unrealistic expectations.
CREATE STANDARD OPERATING PROCEDURES
Standard operating procedures , or SOPs, are critical for creating a solid foundation for your event business. They're meant to outline the best method for completing a process, and are useful for getting all team members on the same page. It also helps you to remember how you do a certain task, since you're likely working on lots of things all at once. When you document your processes, you set yourself up for success in your daily business— especially (and unfortunately) when issues arise. We talk more about the types of challenges you'll avoid when you create SOPs in the next section.
TOP 5 EVENT CHALLENGES THAT CAN BE SOLVED WITH SOPS
This piece was inspired by industry leader Cam Petty’s fantastic talk on how to create and use SOPs in your event rental company, which she presented at Goodshuffle Pro’s 2021 Annual User Summit [video below]. To learn more about Cam and the amazing work she does, check out her companies: Render Events and Render Educate .
A great aspect of SOPs is how they can help you anticipate problems and be prepared when they do inevitably occur. Weather is a frequent challenge for event professionals and really a perfect example of how SOPs can save the day. While weather is something we can mostly predict, sudden weather changes do happen, and having a plan B (and maybe plan C and D, too) in place before things go sideways will go a long way in reducing stress for you and your client.
But weather is just one thing you can plan ahead for with SOPs; any problem you can possibly predict, you can and should create an SOP for. If a problem happens once, it can happen again. So why not create a plan before challenges strike? Let's get into the 5 event rental obstacles you can avoid when you use SOPs.
Weather is the arch nemesis of outdoor events. You can only plan so far in advance with weather, and even then there’s always a change of surprise rain. Ideally, your client or their event planner will have an alternate plan in case the weather changes, but that isn’t always the case. It’s a good idea to create a standard SOP for rain, ice, snow, winds, etc for your company to serve as a jumping off point for planning for your individual events. Because each event is unique, you’ll need to customize your plan per event, but having that general weather SOP will give you a big head start.
It happens. Whether it occurs at an event, in the warehouse, or during loading/unloading, things will break, so you may as well plan for it. Having plans available for replacement items, substitution items, and subrental options in an SOP will make finding a solution that works for your client a much easier process. Working with the Goodshuffle Pro’s inventory management software , you’ll be able to document swaps or substitutions for damaged items easily. Goodshuffle Pro also allows you to make note of damaged items so your inventory availability is reflected accurately.
Is a client not responding to emails? Having an SOP available so your team understands how to proceed is essential. Knowing when to send another email or make another phone call can sometimes be tricky, especially for new hires. This SOP should contain information on when to follow up, plus notes on any language that should be included for the different phases of the event planning process.
In the case of a client not responding to communication when payment is due, have a note in the SOP to double check the contract, plus specific instructions for next steps, as communicating about financial issues can be particularly challenging.
Have you ever gone out to start loading the truck only to discover that it has a flat tire? Or the engine won’t start? This can be particularly stressful— and potentially disastrous— on the day of an event. Having multiple plans in place and ready to put into action is key. Including options for a tow/tire replacement service, a local repair shop, and a few local truck rental companies are smart ideas. Also consider checking your vehicles in advance of your events, as you might discover any problems before it’s an emergency. You can also use that time to clean the windshield and top off the gas tank!
SUDDEN EVENT CHANGES
It’s not uncommon for a client to discover something that they must have in their event, which may leave you scrambling to make it happen. Or, there could be a venue change. Regardless of the reason, having a game plan (a.k.a. your SOP) in place for you and your team will take a lot of the headache out of sudden changes. Make a list of the changes you’ve encountered and/or can see your company encountering, and make an SOP for each of those scenarios.
SOPS ARE SAVING THE DAY
As you can see, implementing SOPs in your company can really save you from unwanted surprises; while they will still happen, you’ll be able to cut out the “Now what?” step and move right to overcoming the challenge. I might even write some SOPs for my personal life!
#1 SECRET TO SUCCESS: EVENT RENTAL TECH
Do you ever feel like you're:
- Wasting a lot of time doing repetitive tasks like building quotes, or copying and pasting between systems?
- Unsure how to find and win qualified leads online?
- Consistently chasing clients to get them to pay?
Goodshuffle Pro has everything you need to successfully start an event rental business, including highly effective features such as:
- Photo-driven proposals and quotes you can build in minutes
- A powerful Website Wishlist Integration to drive online business
- Electronic signatures for speedy payments
- Easy inventory tracking , management, and reporting
- Integrations with QuickBooks Online and Google Calendar to keep your finances in order and your events on schedule
Imagine all the time you'll save with powerful event rental software. Catch up to the experienced pros quicker when you partner with the right software company. There's no better time than now to start your journey towards profitability and success.
CURIOUS HOW GOODSHUFFLE PRO CAN EMPOWER YOUR NEW EVENT BUSINESS?
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Home » Business ideas » Entertainment Industry » Party Rental Business
How to Write a Party Rental Business Plan [Sample Template]
Are you about starting a party rental company? If YES, here is a complete sample party rental business plan template & feasibility report you can use for FREE . Okay, so we have considered all the requirements for starting a party rental business . We also took it further by analyzing and drafting a sample party rental marketing plan template backed up by actionable guerrilla marketing ideas for party rental businesses. So let’s proceed to the business planning section.
Why Start a Party Rental Business?
Starting a party rental business is not as capital intensive as starting a business such as a banquet hall rental business. This is so because all that is required of you is to purchase tables, chairs, flatware, linens, centerpieces, stages, tents, canopies and other items for public and private parties and events.
You will also need a warehouse facility or well secured space to keep your items and also a truck to take them to and fro event venues as requested by your clients. You can decide to rent out the truck or include it as a premium service to those who rent party items from you.
One good thing about party supply rental business is that most often than not, your presence may not be needed as long as you have a competent team handling the business for you. Besides a good percent of events such as wedding ceremonies, parties and most social events et al, are done during weekends and if you are lucky not to keep a 9 to 5 job that you only work Mondays to Fridays, you can successfully test run a party supply rental business.
The truth is that, most of the basic skills needed to effectively run a party supply rental business are some of the soft skills you are likely going to acquire in your work place. Over and above, the service delivery for a party supply rental business is simple and straight forward, especially if they are not involved in other complimentary services within the scope of their business.
So if you have decided to start a party supply rental business, then you should ensure that you carry out feasibility studies and also market survey. This will enable you properly locate the business and then hit the ground running. Business plan is yet another very important business document that you should not take for granted in the bid to launching your own business.
Below is a sample party supply rental business plan template that can help you to successfully write your own with little or no difficulty.
A Sample Party Rental Business Plan Template
1. industry overview.
The party supply rental business are basically involved in renting out tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address system, red carpet, drums, plates, glasses, cutleries and other items for public and private parties and events.
In the face of economic recovery, the overall revenue generated in the party supply rental industry shrink slightly in 2011 as businesses and consumers wary of the recent recession held off on event spending. On the other hand, renewed assurance in the economy in successive years has encouraged business and consumers to host events that require products from the Party Supply Rental industry.
Continued economic recoveries will likely aid growth through 2022. So also, with higher personal and corporate income, households and businesses are projected to expand their party budgets, which will allow them to spend more on rentals beyond basic necessities to full-service products et al.
The Party Supply Rental Industry is indeed a large and vibrant industry not only in the united states of America and but also in most countries of the world as long as parties are organized there. Statistics has it that the Tent Rental cum Party Rental industry in the United States of America, is worth about $5 billion, with an estimated growth rate of 2.3 percent between 2011 and 2016.
There are about 9,645 registered and licensed party rental businesses in the United States and they are responsible for employing about 50,470 people. In the United States, only Classic Party Rental Company can boast of having a lion market share in the industry. Despite that, the industry is still very much open for competitions from aspiring investors who would want to launch their own tent rental business.
According to report recently published by IBISWORLD, in the United States, the regions that have the greatest concentration of party supply rental companies are the Southeast, the West, the Great Lakes and the Mid-Atlantic. The distribution of companies is based mainly on the number of households and median income levels by region. Besides, party rental cum tent rental companies tend to locate their business near major metropolitan areas, which generate a steady stream of demand for corporate and social events.
The Southeast region has the greatest concentration of industry establishments, estimated at 31.9 percent of the total in 2015. The Southeast is the most populated region of the United States; therefore, given the high proportion of households, there is a greater demand for tent rental and rental supplies for social events and corporate events.
No doubt the party supply rental industry is indeed a profitable industry to venture in despite the fact that that the entry bar for starting the business is not too difficult to scale through. The truth is that, if a party supply rental business is well – stocked with party rental items and also well positioned in an environment with the right demography, they will sure attract regular clients and their items will be well booked all through the year.
2. Executive Summary
Caroline Packer® Party Rentals, LLC is a standard and licensed party supply rental company that will be based in Carson City – Nevada. We have been able to secure a corner piece property in a centralized and busy location in the heart of the city; a location with the right demography for the kind of business we want to run.
We are a standard party supply rental company that will be involved in renting out tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address system, red carpet, drums, plates, glasses, cutleries and other items for public and private parties and events. We will engage in business activities such as wedding rentals, birthday rentals, corporate event rentals, banquets and other event rentals.
Caroline Packer® Party Rentals, LLC is a client-focused and result driven party supply rentals outfit that provides standard and reliable party equipment/items at an affordable fee that won’t in any way put a hole in the pocket of our clients.
We will offer standard and professional services to all to our individual clients, and corporate clients at local, state, national, and international level. We will ensure that we work hard to meet and surpass our clients’ expectations whenever they rent party items from our organization.
Caroline Packer® Party Rentals, LLC will at all times demonstrates her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.
Our plan is to position Caroline Packer® Party Rentals, LLC to become the leading brand in the party supply rental industry in the whole of Nevada, and also to be amongst the top 10 party supply rental outfits in the United States of America within the first 10 years of operations.
This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are enthusiastic and confident that Carson City – Nevada is the right place to launch our party supply rental business before spreading to other parts of the United States.
Caroline Packer® Party Rentals, LLC is family business that is owned by Mrs. Caroline Packer and her immediate family members. The organization will be managed by Mrs. Caroline Packer who has over 12 years of hands on experience working at various capacities within the party rental and event planning industry in the United States. Mrs. Caroline Packer is a graduate of Business Management from the University of Nevada – Las Vegas.
3. Our Products and Services
Caroline Packer® Party Rentals, LLC is going to offer varieties of services within the scope of party supply rental services industry in the United States of America. Our intention of starting our party supply rental company is to make profits from the industry and we will do all that is permitted by the law in the US to achieve our aim and ambition.
Our business offering are listed below;
- Party supply rental (tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address system, red carpet, drums, plates, glasses, cutleries and other items for public and private parties and events)
- Corporate party and banquet equipment rental
- Wedding supply rental
- Birthday rentals
- Corporate event rentals
- BBQ party rentals
- Outdoors party rentals
- Other event rentals
4. Our Mission and Vision Statement
- Our vision is to build a party supply rental business – brand that will become the number one choice for both individual clients and corporate clients in the whole of Carson City – Nevada. Our vision reflects our values: integrity, service, excellence and teamwork.
- Our mission as a party supply rental company is to rent out tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address system, red carpet, plates, glasses, cutleries and other items for public and private parties and events.
We are going to position the business to become the leading brand in the party supply rental industry in the whole of Carson City – Nevada, and also to be amongst the top 10 party supply rental companies in the United States of America within the first 10 years of fully launching the business.
Our Business Structure
Caroline Packer® Party Rentals, LLC is a party supply rental company that intends to start small in Carson City – Nevada, but looks to grow big in order to compete favorably with leading party supply rental companies both in the United States and on a global stage.
We are aware of the importance of building a solid business structure that can support the picture of the kind of world class party supply rental business we want to own. This is why we are committed to only hiring the best hands within our area of operations.
At Caroline Packer® Party Rentals, LLC, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions in our organization;
- Chief Executive Officer (Owner)
Party Supply Rental Manager
Admin and HR Manager
Marketing and Sales Executive
- Customer Services Executive
- Truck Driver
5. Job Roles and Responsibilities
Chief Executive Office:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Manages the rental of tents and other party rental equipment (tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address system, red carpet, drums, plates, glasses, cutleries and other items for public and private parties and events)
- Achieves maximum profitability and over-all success by controlling costs and quality of equipment and service.
- Completes weekly schedules. Schedule employees as necessary to ensure adequate and consistent levels of service.
- Supervises weekly schedules. Schedule staff as necessary to ensure adequate and consistent levels of service
- Responsible for party supply rental control policies and completion of necessary forms.
- Follows proper purchasing and requisitioning procedures.
- Co-ordinates the general assembling and dismantling of tents, tables, chairs, stage and ensure that they are safely transported to and fro event venues.
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Designs job descriptions with KPI to drive performance management for clients
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Oversees the smooth running of the daily office activities.
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
- Writes winning proposal documents, negotiate fees and rates in line with company policy
- Responsible for handling business research, marker surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding increase sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
Client Service Executive
- Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the manager in an effective and timely manner
- Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
- Responsible for transporting tents, party rental items/equipment, supplies and workers to project site
- Runs errand for the organization
- Handles any other duty as assigned by the party supply rental manager.
6. SWOT Analysis
Because of our drive for excellence when it comes to running a standard and world – class party supply rental company, we were able to engage some of the finest business consultants in Carson City – Nevada to look through our business concept and together we were able to critically examine the prospect of the business and to access ourselves to be sure we have what it takes to run a standard and world – class party supply rental business.
In view of that, we were able to take stock of our strengths, our weakness, our opportunities and also the threats that we are likely going to be exposed to in Carson City – Nevada. Here is a of what we got from the critically conducted SWOT Analysis Caroline Packer® Party Rentals, LLC;
Notwithstanding the fact that all our party rental items/equipment and tents are of world – class standard and the business is well positioned and well – equipped to meet the 21 st century demand of both high profile corporate and individual clients, we have a team that can go all the way to give our clients value for their money; a team that are trained and equipped to pay attention to details as regard setting up party venues. We are well positioned and we know we will attract loads of clients from the first day we open our doors for business.
As a new party supply rental company, it might take some time for our organization to break into the market and gain acceptance in the already saturated party supply rental industry especially from corporate clients; that is perhaps our major weakness.
The opportunities in the party supply rental industry is massive considering the number of corporate events, weddings, parties and other events that takes places on a daily basis in the United States. As a standard and well – equipped party supply rental company, we are ready to take advantage of any opportunity that comes our way.
Some of the threats that we may likely face as a party supply rental company operating in the United States are unfavorable government policies, the arrival of a competitor within our location of operations and global economic downturn which usually affects purchasing power. There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.
7. MARKET ANALYSIS
- Market Trends
One thing is certain; it is difficult to find a business that is strictly into just party supply rentals. This is so because such a business will find it difficult to maintain its overhead and operational cost or generate enough income needed for business expansion. In recent time, it is common to find party supply rental companies engage in other complimentary services such as event planning services and the likes.
The party supply rental industry is in a continuous state of evolution and as such, ground breaking strategies and ideas that are once highly successful are no longer as productive as they were in time past. Close observation of the trend in the industry reveals that the past few years have seen the rise and proliferation of social media and new tech tools.
The trends also extends to increased attention paid to engagement and new market segments, adopting eco-friendly measures and sustainability when planning events, and of course increase in demands from event sponsors.
Lastly, aside from excellent customer services, party supply rental companies ensure that they have some of the best and comfortable party rental items they can get even if it means importing them or customizing them. This will enable them to continue to welcome repeated customers on a regular basis.
8. Our Target Market
Even though Caroline Packer® Party Rentals, LLC will initially serve small to medium sized business, from individual clients to well established businesses and corporate clients, but that does not in any way stop us from growing to be able to compete with the leading party supply rental companies in the United States.
As an all – round and world – class party supply rental company, Caroline Packer® Party Rentals, LLC offers a wide range of services hence we are well trained and equipped to services a wide range of clientele base.
Our target market cuts across people of different class and people from all walks of life, local and international organizations as well. We are coming into the industry with a business concept that will enable us work with the highly placed people and companies in the country and at the same with the lowly placed people and smaller businesses.
Below is a list of the people and organizations that we have specifically design our products and services for;
- Potential Couples/Young Adults
- Blue Chips Companies
- Corporate Organizations
- Religious Organizations
- Political Parties/Politicians
- The Government (Public Sector)
- Schools (High Schools, Colleges and Universities)
- Sport Organizations
- Entrepreneurs and Start – Ups
Our competitive advantage
We know that to be highly competitive in the event party supply rental industry means that your tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address system, red carpet, drums, plates, glasses, cutleries and other items for public and private parties and events must be of high standard and your business must be well – positioned and well – equipped, you should be able to deliver consistent quality service, your clients should be able to experience remarkable difference cum improvement and you should be able to meet the expectations of both participants and organizers of events.
Caroline Packer® Party Rentals, LLC might be a new entrant into the party supply rental industry in the United States of America, but the management staffs and owners of the business are considered gurus. They are people who are core professionals and licensed and highly qualified to run such business; people who have the magic wand to turn a start – up business into a mega business.
Our tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address system, red carpet, drums, plates, glasses, cutleries and other items are of world – class standard and the business is well positioned and well – equipped to meet the 21 st century demand of both high profile corporate and individual clients. These are part of what will count as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be amongst the best within our category (startups party supply rental companies) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Caroline Packer® Party Rentals, LLC is established with the aim of maximizing profits in the party supply rental industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis and sign retainer – ship with most of our clients.
Caroline Packer® Party Rentals, LLC will generate income by offering the following party supply rental services for individuals clients and for corporate organizations;
- Other event rentals.
10. Sales Forecast
One thing is certain, there would always be parties, indoor and outdoor events in the United States of America and as such the services of party supply rental companies will always be needed. This, we have at the back of our minds always.
We are well positioned to take on the available market in Carson City – Nevada and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six month of operations and grow the business and our clientele base beyond Carson City – Nevada to other cities in Nevada and other states in the U.S.
We have been able to critically examine the party supply rental market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Carson City – Nevada.
Below are the sales projection for Caroline Packer® Party Rentals, LLC, it is based on the location of our business and the wide range of party supply items that we will be offering;
- First Fiscal Year-: $250,000
- Second Fiscal Year-: $600,000
- Third Fiscal Year-: $900,000
N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. There won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
We are mindful of the fact that there is stiffer competition amongst party supply rental companies in the United States of America; hence we have been able to hire some of the best business developer to handle our sales and marketing concerns.
Our sales and marketing team will be recruited based on their vast experience in the party supply rental industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization.
We will also ensure that our excellent job deliveries speak for us in the market place; we want to build a standard party supply rental business that will leverage on word of mouth advertisement from satisfied clients (both individuals and corporate organizations).
Our goal is to grow our party supply rental company to become one of the top 10 party supply rental companies in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the Carson City – Nevada but also in other cities in the United States of America.
Caroline Packer® Party Rentals, LLC is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our business by sending introductory letters alongside our brochure to corporate organizations, religious organizations, schools, households and key stake holders in Carson City and other cities in Nevada
- Advertise our business in relevant event related magazines, newspapers, TV stations, and radio station.
- List our business on yellow pages ads (local directories)
- Attend relevant international and local expos, seminars, and business fairs et al
- Create different packages for different category of clients in order to work with their budgets and still deliver quality supply and services to them
- Leverage on the internet to promote our business
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients
- Join local chambers of commerce and industry with the aim of marketing our business
- Make use of attractive hand bills to create awareness and also to give direction to our facility
- Adopt direct mailing coupon marketing approach
- Position our signage/flexi banners at strategic places in and around Los Angeles – California
- Create a loyalty plan that will enable us reward our consistent clients especially those that refer clients to us.
- Engage in road shows within our neighborhood to create awareness for our party supply rental business.
11. Publicity and Advertising Strategy
We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the event planning and party rental industry by storm which is why we have made provisions for effective publicity and advertisement of our party supply rental company.
Below are the platforms we intend to leverage on to promote and advertise Caroline Packer® Party Rentals, LLC;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events/programs
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
- Install our Bill Boards on strategic locations all around Carson City – Nevada
- Engage in road show from time to time in target neighborhoods
- Distribute our fliers and handbills in target areas
- Ensure that all our workers wear our branded shirts and all our vehicles and trucks are well branded with our company’s logo et al.
12. Our Pricing Strategy
Just like in rental and consulting business, hourly billing for rental services is also a long – time tradition in the industry. However, for some types of rental services, flat fees make more sense because they allow clients to better predict the overall service charges. As a result of this, Caroline Packer® Party Rentals, LLC will charge our clients both flat fee and hourly billing as long as it favors both parties.
At Caroline Packer® Party Rentals, LLC we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to start – ups, nonprofits, cooperatives, and small social enterprises.
We are aware that there are some clients especially event planning outfits that would need regular party rental items, we will offer flat rate for such services that will be tailored to take care of such clients’ needs.
- Payment Options
The payment policy adopted by Caroline Packer® Party Rentals, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Caroline Packer® Party Rentals, LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards/Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for the party rental items.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.
The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a party supply rental business; it might differ in other countries due to the value of their money.
However, this is what it would cost us to set up Caroline Packer® Party Rentals, LLC in the United of America;
- The Total Fee for incorporating the Business in the United States of America- $750.
- The budget for basic insurance policy covers, permits and business license – $2,500
- The Amount needed to acquire a suitable facility that will accommodate our dismantled tents, trucks and small office facility (Re – Construction of the facility inclusive) – $150,000.
- The Cost for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
- The Cost of Launching an official Website – $600
- The cost for the construction of standard tents – $10,000
- The cost for the purchase of standard party supply items (tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address system, red carpet, drums, plates, glasses, cutleries and other items for public and private parties and events) – $50,000
- The cost for the purchase of a truck – $10,000
- Budget for paying at least 4 employees for 2 months plus utility bills – $100,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
- Miscellaneous: $5,000
Going by the report from the market research and feasibility studies conducted, we will need about four hundred and fifty thousand ( 450,000 ) U.S. dollars to successfully set – up a medium scale but standard and well – equipped party supply rental business firm in the United States of America.
Generating Funds/Startup Capital for Caroline Packer® Party Rentals, LLC
Caroline Packer® Party Rentals, LLC is a family business that will be owned by Mrs. Caroline Packer and his immediate family members. They are the sole financial of the firm, but may likely welcome partners later which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.
These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $150,000 ( Personal savings $100,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Caroline Packer® Party Rentals, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to rental out our party supply items/equipment a little bit lower than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Caroline Packer® Party Rentals, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts various banks in the United States: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of All form of Insurance for the Business: Completed
- Securing a standard facility and reconstruction inclusive: In Progress
- Conducting Feasibility Studies: Completed
- Generating part of the start – up capital from the founder: Completed
- Applications for Loan from our Bankers: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed furniture, office equipment, electronic appliances and facility facelift: In progress
- Purchase of various sizes of standard tents and other party rentals items: Completed
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in the industry: In Progress
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Developing a Party Rental Business Plan
Starting a party rental business is not a complicated process when employing the right strategies and utilizing effective technological solutions.
No matter what type of business you are trying to start, you should always start with a well-defined business plan. If you do not plan, you will get lost in the process.
Generally speaking, starting your party rental business without a plan will not be a smooth process, and you will face a series of challenges along the way.
To prevent some of those challenges and limitations, we have created an in-depth business plan creation process, which we will share below.
Note: This chapter is not a step-by-step guide; it provides you with the complete information needed to develop your business plan.
Components of a Party Rental Business Plan
1. setting up your business location.
Large Cities vs. Small Towns
We recommend you start your party rental business plan by determining the areas you want to serve. It is ideal to set up our party rental business in areas with larger populations is perfect. The higher the people, the higher your chances of getting clients.
However, it does not mean we should avoid small towns. Because small towns usually lack the party rental business. As a result, those areas may have greater demand for your rental equipment.
Throughout our experience, we noticed that most rental businesses face difficulties in the party rental business because of their inconvenient location.
If you are trying to rent a large warehouse or rent your party equipment right from your home, you need to establish your business location closer to your service area.
For example, some businesses open their warehouses too far from their target areas. As a result, they spend high transportation costs and valuable time delivering their party equipment.
Before you start procuring valuable equipment and supplies, you must have a proper place to store them. Keeping them in unprotected areas or the open air will be prone to damage from weathering or possible theft.
Also, it would help if you made sure that the storage area had enough room to store all of your equipment. Stacking everything on top of each other will not be convenient nor secure.
For example, packing everything in a tight room may lead to equipment damage, inconveniences in finding what you need, and extra effort and time in putting things back.
Additionally, your storage area has to be secured with surveillance cameras so you can view the activities taking place in your area and have peace of mind at all times.
We strongly recommend installing remote surveillance cameras, and they can be monitored using a smartphone or PC from any location. That method adds an extra layer of security to your party rental business, plus you will be monitoring the activities of your business while you are away from your office.
2. Setting a Price for Your Rental Equipment
Before starting your business, you should create several packages depending on the size of the parties you want to serve.
For instance, you may create a package for household parties such as birthdays and family reunions and assign affordable pricing for each. Then, you may make more extensive packages for commercial promotions, community events, and weddings.
Generally speaking, creating your rental packages will help you organize your business and make the selection process more convenient for your customers.
Pricing for your packages should be relevant to the value of the equipment. Higher-quality equipment with a high price tag should not be priced at the same rate as cheaper, low-quality equipment.
Here are the steps to consider when pricing your equipment:
Using a Simple “Cost Plus Margin” Formula
The formula works in the following pattern: First, you need to write down the original cost of procurement. Then, you need to add the cost of ownership, which includes things like depreciation, maintenance, storage, and other miscellaneous expenses you may accumulate while owning the equipment.
For example, let’s say you purchased a large tent for $1000 and spent $100 on its transportation.
There is a depreciation of 2% per usage after spending $50/ month on its storage and maintenance, which equates to another $20.
Since we have come up with a cost, you need to determine the margin of profit you are attempting to get.
For example, if you rent it 50 times per year, your total annual depreciation cost for a single tent will be $2,700 (1000+100+50 (x12) + plus 50 x $20 for maintenance).
In the United States, a large tent that covers more than 20 people costs between $350 and $500 (or $.75 and $1.50 per sq. ft.) per day.
That means that even if you rent your tent for $350, an annual total of 50 rentals will net you $17,500 (50 x 350). Now you need to subtract the $2,700 yearly depreciation cost of the tent from the generated $17,500 revenue, which equates to a $14,800 profit.
Note that depreciation is the sum of depreciation fees exceeding a tent’s original cost.
For example, after charging $20 for 50 times, the value of the tent gets nullified. After that, you decide to keep renting it or replace it with a newer tent version.
We strongly advise you to replace worn-out party equipment regularly because old, rugged items are neither attractive nor safe for parties.
Research Your Competitors’ Prices
Pricing your costs using the provided formula is not enough to make your party rental business profitable. You will also need to beat your competitors’ prices to increase the volume of rentals.
First, you have to find and list all party rental businesses in your area.
The simple way to do it is to google phrases such as
“party rental business near me” or “party rental businesses in [area]” in the search engine.
Then, visit their websites to learn their pricing options for each item so that you can price yours a little lower than those.
The Advantages of Competitive Pricing :
Every beginner should focus more on building a reputation than making money. Have you heard about the first impression theory ? First impressions last a lifetime. So, start with an outstanding performance to leave an exceptional appearance in your community. Unstable beginnings usually lead to quick failures.
Conducting Surveys and Making Your Prices Suitable for Your Audience
Pricing is the first thing your clients will notice. That means you need to know your target population and study their financial conditions so you can make your prices affordable for them.
For example, offering high-end equipment or luxurious furnishings to middle-income communities may not be ideal. So, consider the average household income in your community to come up with attractive pricing.
Suppose you are unsure how to check the average income of your target population. In that case, you can use government websites such as data , or you may search for the following keyword on Google: “Median Household Income in (name of your city, county, or district).”
Additionally, you can learn what your community wants in pricing by distributing surveys. Learning about your community’s needs does not only help you to come up with reasonable pricing but also enables you to determine what type of equipment will generate greater profits in that specific area. Generally speaking, the method will help you prevent procuring equipment that will perform poorly in your area.
Creating surveys may be challenging without appropriate software. However, now you can use Reservety’s Party Rental Software to create customizable surveys and distribute them to large numbers of potential customers with bulk email or SMS campaigns.
Read this post to read completely to find out more on how to calculate equipment pricing
3. Promotions and Marketing
Identifying your target market.
Knowing your target audience is another essential part of developing a business plan and developing effective marketing strategies. Most party rental businesses target companies, the general public, or organizations depending on their capacity.
For example, companies usually organize promotional activities, holiday celebrations, and other events that may need your business. The general public needs your rental equipment to celebrate birthdays, holidays, and special events such as weddings and homecoming parties. Organizations use party rentals to organize advocacy events, promotional activities, or public awareness programs.
Even public schools may need to rent your party equipment to mark special occasions or organize sporting events.
You need to know your target audience before procuring appropriate equipment and supplies and developing promotions and marketing strategies. It is okay to target all of these three groups as long as you have enough funds to purchase equipment to meet the three groups’ demands.
In one of our previous articles, we mentioned that serving the bigger parties with a limited number of or poor-quality equipment will ruin your reputation and hinder your progress as the quality of your rental equipment will not meet the customer’s expectations.
The Primary Ways to Reach Out to Potential Customers
Currently, we are living in a technological era where 4.66 billion people have access to the internet. Therefore, you can utilize internet marketing and promotions to grab your customers’ attention.
Here is how you can do it:
Being Active on Social Media
Social media is effective in showcasing your party rental business to millions of people. Globally, internet users spend 145 minutes per day on social media platforms, and this figure is steadily rising year after year. That indicates that you need to be active on social media by posting fun and engaging content.
For example, sharing beautiful moments from somebody’s wedding or videos from festive parties may attract viewers to your social media pages and may gain you an army of loyal fans through the process.
Special Discounts for New Customers
Promotions are a common marketing strategy to attract customers to a new business. Plus, you may create a loyalty program to gather a group of returning customers.
We noticed that some party rental businesses offer free rentals to their community in the first few days following their grand opening. The promotion may sound like a loss of money and time. But when you consider its long-term impact, the strategy is worth the effort.
For example, when Mr. Luke offered free rentals to organize a Christmas celebration in a local children’s hospital, the community reacted well and got to know the new business in their community. Simple and good promotions like these build long-term impressions and foundations for the future of the party rental business.
Establishing Partnerships and Affiliations
Most successful businesses establish partnerships with other successful companies. For example, since you are new to the party rental business, you may not have a customer base in the beginning. However, you can establish a partnership with successful event organizers and offer these companies special discounts or monetary incentives to use your rental services in their operations.
For instance, let’s say Joan owns an event organizing business, and she won a contract to hold a special event in a local park. If Joan does not have her equipment, she may rent the equipment from you under the conditions of your partnership. You will give Joan 5% of her total income as an appreciation for her referral. This type of partnership creates a win-win situation for both sides.
Generally, referral programs work in two ways: firstly, they increase the number of returning customers; secondly, they increase word-of-mouth advertising in the community.
Organizing Charity and Awareness Events
The best way to make your party rental business known is to show it in action
. By organizing charity events in your community, you are increasing your business visibility and gaining a good first impression in the eyes of your community.
4. Ensuring Adequate Funds
To start a successful party rental business, you need to plan your finances ahead of time. There are two popular methods used in business planning.
In the first method, you can develop a workable plan and start looking for various sources to fund those plans. In the second method, you can create a business plan based on your available funds. These are both methods employed around the world.
If you decide to take the first route, you can start looking for loans from banks, financial agencies, and alternative lenders. Your local banks will be more reliable and transparent than third-party lenders as far as transparency is concerned. However, most startups cannot take loans from local banks as they require records of a minimum of three years of business.
How to Get Funding for Party Rental Business:
Private sponsors or investors.
They can be angel investors, wealthy individuals willing to provide funding for startups in exchange for an ownership stake in the company.
Venture capitalists can also provide funding in exchange for an equity stake, but you have to demonstrate the potential for significant revenue to convince them.
They can be one of your family members, friends, wealthy acquaintances, or a mixture of all. We recommend signing a contractual agreement when dealing with an investor. So you won’t face disagreements once the business takes off.
Peer to Peer Lenders
They can be either individuals or companies. Did you know that peer-to-peer lenders can approve your funding requests faster but with a higher interest rate? So, it would help if you were extra careful when dealing with lenders. Reading their contracts, discussing conditions, or even trying smaller loans at first may save you from unexpected costs and issues.
We already mentioned that some banks are not willing to give loans unless your party rental business has shown some positive performance in the past. Nevertheless, some private banks may negotiate a deal under certain conditions if you convince them with a great business plan.
Also, some banks may give out loans if you put your valuables, such as your home or property, as collateral. It obviously should be the last resort because of the risk of losing the house.
Small and Medium-sized Enterprises (SMEs) Funding from the Government
Some countries have adopted policies to ensure that small and medium-sized businesses have an opportunity to grow and compete with large and wealthy corporations. Depending on your country, you may qualify for government funds for SMEs. You can find out about it by either going to the local commerce chamber of your government or doing a quick internet search on Google.
For more information about securing sufficient funds for your party rental business, you may visit Chapter 2.
5. Procurement Planning
Procurement planning should be an integral part of your business plan.
First and foremost, to obtain equipment, you must locate reputable wholesalers or vendors who can provide the equipment at a reasonable price.
We have already shared a list of vendors to purchase party rental equipment.
You need to consider three things when you select a vendor to procure party rental equipment.
Quality of Products You have to make sure that quality passes the regulatory standards so you can avoid crippling lawsuits in the event of accidents. Plus, quality products last longer and they come with a manufacturer’s warranty. Affordable Pricing There are hundreds of vendors that offer party rental equipment at wholesale prices. You can take your time and visit each one of them to compare their pricing. However, you also need to factor in the transportation costs and shipping time. For example, ordering equipment directly from a manufacturer from a foreign country when the same equipment is available in your area for a slightly higher price may not be a smart idea. Because when you add transportation costs and wait time, you may break even. Line of Credit Some vendors work with party rental companies. Let’s say you bought 10 tables and chairs from a vendor, but do not have enough cash to procure a dance floor. In that case, reliable vendors can give you a line of credit to purchase the equipment at that moment with the option of paying later.
Additionally, you need to determine how much equipment you need for your party, which will directly depend upon your target population.
In other words, with only $25,000, you may not be able to cover mega parties or events. Here is a convenient calculator to determine how much tent or space you need to accommodate a certain number of people.
6. Safety and Insurance
Your business plan must include safety and security procedures before operating as a business.
Safety refers to the safety of your staff and customers, while security refers to keeping and maintaining your party rental assets in good condition.
Let’s talk about safety first. You need to make sure that your party equipment is safe for the public.
In the United States, the Consumer Product Safety Commission found that inflatables alone caused more than 113,272 injuries in the ten years that required emergency treatments.
So, we suggest you develop strategies to mitigate similar risks while developing a business plan.
In the planning phase, you must consider the following components to ensure the safety of people who come into direct contact with your business: Here is how you can get your party rental business insured.
– Always buy safe and quality equipment and supplies. – Do regular check-ups and maintenance on equipment to avoid potential flaws and risks. – Create safety and user-agreement forms for customers to sign so you can take some of the responsibility off of your shoulders. – Provide user manuals for clients so they could handle the rental equipment properly. This tactic will protect your clients from injuries and your equipment from damage.
Proper insurance is also essential to protect your valuable party rental equipment.
When you purchase a business owner’s policy (BOP), it covers everything from damaged equipment to employee or customer injuries. However, BOP will not cover health and disability insurance, worker’s compensation, professional liability, or auto insurance. Therefore, you need to purchase additional policies to cover those things.
As far as pricing is concerned, the following are the average prices that small businesses in the United States pay for various insurance policies.
General Liability: $50 per month or $600 per year Business Owner’s Policy (BOP): $99 per month or $1,191 per year Commercial Property Insurance: $63 per month or $755 per year Business Interruptions Insurance: between $40 and $130 per month Commercial Auto Insurance : $142 per month Worker’s Compensation Insurance: $47 per month
Please note: We obtain these insurance rates from Insureon.com , and the rates may vary depending on the region or country.
Chapter 5 of the series will discuss the various types of insurance in detail and teach you how to select a reliable insurance company.
7. Preparing a Business Model
We recommend operating your party rental business under a solid framework or business model. Your business plan should outline the key processes and tactics you may use throughout your business.
There are four primary types of business models: Business-to-Business (B2B), Business-to-Consumer (B2C), Consumer-to-Business (C2B), and Consumer-to-Consumer (C2C) business models.
Most party rental businesses utilize hybrid business models, including B2B and B2C models. More specifically, you will be offering your party rentals directly to consumers and businesses.
Tactics for Your Business Model:
Research your competitors.
Some people make mistakes by targeting smaller towns. Because they fear that bigger towns or cities already have several party rental businesses, and it will be tough to compete against already established companies. However, that is the wrong mindset.
First, you should find your competitors and start studying them in detail. To find them, google the keywords such as “Party Rental Businesses in [name of your location].” Once you list them all, you can continue with the following:
Find Weakness of Your Competitor
Please make a list of the party rental companies in your area and read their reviews to study their weaknesses and use the results as leverage to win new customers. For example, if George’s Party Rentals offers outdated inflatables and unattractive decorative items, you should employ your creativity and procure more innovative and creative party rental equipment.
You can take our word for it. Suppose your business offers attractive designs, safe equipment, and creative supplies at an affordable price. In that case, you will easily divert the attention of potential customers to your business by utilizing effective marketing strategies.
Conducting a Cost-Benefit Analysis
The numbers speak for themselves. If your party rental business does not seem to be profitable in the numbers, then it is more likely to be unprofitable in real life. Thus, do a thorough cost-and-benefit analysis in the business plan.
Calculating your costs and subtracting them from your potential revenue will allow you to determine your potentials more accurately. We do not want to price our equipment too low, as it may lead to too much usage without any profits. We also do not want to price our rental equipment too high; it may scare off potential customers.
Incorporating Technology In Your Business Model
It is essential to select party rental software in your business plan. The software will help you get going and achieve optimal growth in a short period by streamlining or automating time-consuming manual processes.
Did you know that online booking systems increase sales by about 37%? Plus, having reliable software solutions will help you manage your inventory more efficiently and track the movement of your party rental equipment.
When you select rental software for your party rental business, make sure that the software solution enhances the following qualities:
Increase User Experience
Reliable party rental software should allow your customers to reserve spots or book party rental equipment in the comfort of their home by paying with popular payment options such as Visa, MasterCard, PayPal, Stripe, Square, Authorize.net, and others.
Boost your Online Presence
We strongly advise focusing on online activities used by 4.66 billion people or 59.5 percent of the world’s population. That means you need to set up your business website and establish reliable online communication channels to serve online traffic needs.
For example, Reservety’s Party Rental Software helps you create professional websites. Even if you already have an existing domain, you can easily connect it to your new website.
Additionally, the software provides a built-in communication system, through which you may send emails to potential buyers, notify customers of due payments, view customer history, and send out surveys and feedback to customers
Before starting your business, it is essential to know how to organize your equipment and keep track of them.
A handy way is to do is to employ a rental software like Reservety in your technical firepower
We recommend using a system to keep track of your inventory stocks and booking in real-time.
It is where Reservety can be your Powerball! At the end of the day, you want all-around productivity and time saving so make sure you take it as a critical and priority aspect for the success of your rental business.
Assistance with Marketing
Good marketing is a gateway to business success. Therefore, the right software should have the tools to create coupons, promotions, and discounts. It should also help develop marketing programs with precise reporting tools, website popups with special offers, social media integration, and upselling and cross-selling abilities.
This is all we have in planing the party rental business.
Go Read Our Part2 of the Series of How to Start a Party Rental Business.
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How to Start a Party Rental Business
If you’ve ever thrown a large-scale party, planned a wedding, or been in charge of a large corporate event, then you may already have experience in renting party equipment, like tents and tables. Starting a party rental business of your own will mean you can help other party hosts find the equipment they need. If you have great organization skills and an awareness of the types of equipment needed, you’ll be well-suited to running this type of business. Plus, if you love throwing parties and have creative ideas, you can make suggestions to increase your sales while helping hosts create unforgettable parties.
Party rental businesses offer a large volume of expensive supplies that are must-haves for larger parties. These are supplies that occasional party hosts couldn’t justify buying themselves, like tents, bounce houses, inflatable slides, chairs, tables, lighting, decorations, linens, and more. These businesses often have a comprehensive inventory of items for a host to choose from, allowing a customer to do nearly all of their supply shopping from one business.
As part of the rental service, a business will deliver and often set up the equipment. After the event, pickup is also included in the rental cost, though some customers may choose to pick up and drop off smaller pieces of equipment.
From 2013 to 2018, the party supply rental industry has undergone steady growth. According to IBIS World, the industry experienced an annual growth of 4.5 percent during that time, and the number of businesses increased to 12,583. Industry employment also increased to 54,606, and in 2018, the industry brought in $6 billion in revenue.
The industry’s growth correlates with the increase in disposable income and corporate profit from 2013 to 2018. With more disposable income and profit, more people and corporations host parties and events, and they’re more likely to make those events larger and rent more party equipment as a result.
According to Current, several major trends are currently shaping the event rental business industry . Event hosts are increasingly turning to new, creative, and non-traditional venues. These non-traditional venues can include barns, warehouses, lofts, and different outdoor settings. They give rental businesses a chance to create setups that are unique and work with these different settings.
Party hosts are also increasingly focused on sustainability. Party rental businesses can embrace this trend by replacing plastic tablecloths with cloth ones, supplying energy-saving lights, and even using electric delivery vehicles to cut back on fuel use.
With the constant development of technology, there’s always a demand for the latest technological party equipment, like lighting and AV supplies. Rental businesses that can clear out old equipment and invest in new technological equipment will probably see more bookings than companies that have outdated equipment.
Bounce House Rental Disney Travel Agent Event Planning Home Staging Pack and Ship Business Scooter Rental Yard Signs
The target market for a party rental business will depend on the business’s area of specialty if there is one. Businesses may specialize in wedding, birthday party, or corporate event rentals, and each will have a different target market. Some businesses take a more general approach or choose to offer products for each specialty area to appeal to a wider potential market. Businesses may market directly to people who are throwing these parties or market to event venues and event planners or managers.
Checklist for Starting a Party Rental Business
If you’re thinking about starting your own party rental business, there are a few things you should keep in mind. Here is a checklist of the essentials to get started.
Step 1: Write a Business Plan
After coming up with the idea, the next step in starting your business should be to write a business plan. Writing the plan forces you to consider and research important aspects of the business, such as who the competitors are and what makes your business different, pricing, and whether the business can be profitable. Not only will a bank require you to have a business plan, but multiple studies have shown that a business plan helps increase the odds of starting a successful business.
Related: How to write a business plan
Step 2: Form a Business Entity
A business entity (also referred to as a business structure) refers to how a business is legally organized to operate. There are four primary business structures to choose from, which include the sole proprietorship, partnership, corporation, and Limited Liability Company (LLC). Each type of entity has its own pros and cons, such as liability exposure, costs, and administrative requirements.
When deciding on which business entity is best for a party rental business, it normally comes down to the sole proprietorship and Limited Liability Company.
A partnership opens the owners up to unnecessary personal liability because if a partner does something to get the business sued, or runs off with cash from the business, the other partners are personally liable to repay. The corporation can be a good choice to minimize liability risk because it separates the business assets from the owner’s assets. If the corporation is sued or certain business debts can’t be paid back, the owners aren’t personally responsible to repay them. The downside to the corporation is that it is more complicated than all the other entities and requires more administration than the LLC. If you plan on raising a lot of investment though, the corporation is usually the better choice.
That leaves the sole proprietorship and LLC.
The sole proprietorship is the least expensive and easiest entity to start which is appealing. The downside is that the owner is personally liable should anything happen to the business, which is an important consideration. The LLC offers the ability to operate as a sole proprietorship with the liability protection of a corporation. Depending on the state, the cost to form an LLC runs from $40 – $500, which is pretty inexpensive for protecting the owners from business-related lawsuits and certain debts.
Related: Guide to forming your LLC
Forming an LLC sounds complicated and expensive, but using an entity formation service guides you through the process so you know it was done right.
Some popular LLC formation services include:
IncFile - $0 plus state fees & free registered agent for 1 year!
IncAuthority - $0 plus state fees & free registered agent the first year!
ZenBusiness - $49 plus state fees & free registered agent for 1 year!
Step 3: Name the Business
Finding the perfect business name can be challenging. Not only does the name have to resonate with your customers, but it also has to be available to use.
Related: Tips and ideas for naming a party rental business
Step 4: Select your Location
A rental business will need a physical location to store equipment, and customers may also place orders or even pick up smaller supplies at this location. Because of the size and volume of a business’s inventory, it may be necessary to rent a large building or even a small warehouse, expensive. Exact rental costs will depend on the building’s size and location.
Related: Choosing a business location
Step 5: Register for Business Licenses and Permits
There are no licenses required specifically for party rental businesses; however, there are general business registrations, such as a business license, sales tax permit, Employer Identification Number (EIN), and Occupancy Permit, among others.
Related: Common business licenses, permits, and registrations by state
Step 6: Find Financing
Coming up with a good business idea and having the skills to run it are one thing, but getting the funding to start a party rental business is another. Funding to start a party rental business can be difficult. In order to get a loan, the borrower(s) will need to have good credit and be able to personally invest 15-25% towards total start-up costs.
Related: Finding the money to start a business
Step 7: Open a Business Bank Account
Keeping your small business and personal finances in separate bank accounts is important to track the income and expenses of your business and identify trends. Many banks offer free business checking accounts, so be sure to find a cost-effective option for your business.
Step 8: Get your Marketing Plan in Place
Party rental businesses rely on active marketing to bring in new customers, especially since customers may only throw occasional parties, so repeat customers result in only occasional repeat business. Marketing can include print marketing, direct mail, radio, online marketing, social media platforms like Pinterest, Instagram, and Facebook.
Networking is an important element in a party rental business’ success. Establishing and maintaining connections with local event planners and event venues can bring in new business and open up new opportunities
Related: Low-cost ideas to market a new business
Every business is going to need a logo. Make a professional logo in no time with the free logo makers from BrandCrowd and Canva .
Step 9: Get Business Insurance
There are several types of insurance to consider when starting a party rental business. A few of these include: – General liability insurance protects the business if customers or event attendees are ever injured because of the rental equipment. This insurance can cover costs like legal fees and will generally be required when setting up events for corporate and municipal customers. – Commercial auto insurance covers the expenses, like legal fees and medical bills, that can occur if a company-owned vehicle is ever in an accident. – Worker’s compensation insurance helps to cover expenses like medical bills or lost wages if an employee is ever hurt while on the job.
The cost of insuring a party rental business will vary depending on many factors like the location of the business, the value of its inventory, and the number of employees. To get the most accurate idea of what insurance will cost, request quotes from multiple insurance companies. When comparing the quotes, be sure to think about factors like coverage limits and exclusions, premiums, and deductibles.
Related: What types of insurance does a party rental business need?
Step 10: Hire Employees
A business will need at least a few employees to take and prepare orders and to deliver and pick up equipment. According to Payscale, sales clerks make a median rate of $10.27 per hour, with some clerks earning up to $14.82 per hour. Payscale also reports that delivery drivers earn a median income of $14.32 per hour, with some earning up to $21.58 per hour.
In addition to budgeting for salary expenses, a store’s budget also needs to include worker’s compensation insurance, paid time off, and health insurance contributions for employees.
Related: Hiring your first employee
Step 11: Set up an Accounting System
Setting up an accounting system is critical to the long-term success of your business.
Staying on top of taxes not only keeps the business out of trouble with the government, but the numbers can be used to track and monitor trends and cash flow in the business and maximize profits.
Related: Setting up the accounting for your business
The thought of accounting can be intimidating for a lot of new entrepreneurs. There are a number of ways of handling bookkeeping, from DIY to hiring a bookkeeper. These include: - Pen and paper - Low expense, but difficult to track. - Spreadsheet - Low expense, but easy to make errors. - Accounting software - Medium expense, but owner typically inputs expenses. Some great accounting software programs include Freshbooks or Wave Accounting. - Hire a bookkeeper - Higher expense, though very affordable at $100-$200 per month in most cases. A dedicated bookkeeper will probably save money because, in addition to handling all of the bookkeeping (so you can focus on the business), they also provide personalized tax advice and ensure the business is in compliance. Find bookkeepers in your local area or use a service like 800Accountant .
How much does it cost to start a party rental business?
Because party rental businesses require large amounts of inventory, starting these businesses requires a significant initial investment. To keep costs down, try focusing on a certain specialty, like inflatable toys for parties or supplying just decorations for weddings. Expect to spend about $25,000 to start up a smaller, specialized business, and as much as $300,000 or more for a more extensive and comprehensive supply business.
Some common startup costs include: – Rental inventory such as party tents, chairs, tables, etc. – Delivery truck – Tables and chairs – Party rental software – Supplies, like cleaning equipment – Signage – Working capital to cover the first few months of payroll, lease, insurance, marketing, etc.
How much can a party rental business owner make?
Data on the specific income you could expect with a party rental business isn’t available, but keep in mind that your income will depend on many factors. A smaller business intended for backyard parties won’t bring in the same income that a larger business that caters to weddings and corporate events might see.
It’s important to realize that the party rental business can fluctuate, especially since it’s closely tied to disposable income and overall economics. This can also be a very seasonal business, with events occurring more frequently around the holidays or during times of good weather. Branching out into multiple event types, such as corporate holiday parties and weddings, can increase your bookings, but it also means that you’ll need to invest in and store more equipment.
What skills are needed to run a party rental business?
While you won’t need a business degree to start a party rental company, certain skills and experiences are useful and can increase your business’s chances of success.
Understanding of party and event trends. A party rental business owner needs to have their finger on the pulse of party and event trends. This awareness can help to keep a business’ inventory current and appealing to potential customers.
Party planning experience. While not a requirement, a business owner with party planning experience can better understand the target audience and the challenges and pain points they face.
Knowledge of party equipment. Strong knowledge of party equipment, from AV technology to tents to folding chairs, will allow a business owner to identify the types of equipment that will be most in demand and to wisely make inventory purchases.
Customer service skills. Great customer service skills are important, especially since emotions can run high around special events. A business owner needs to be able to communicate clearly and quickly solve problems.
Organization skills. With large volumes of inventory, being organized is important in keeping track of supplies and in preparing orders. Attention to detail is also highly important.
Networking skills. Networking is essential in this industry since connections with event planners, business owners, and event facilities can lead to potential bookings.
Management experience. Nearly any party rental business will require multiple employees, so experience in hiring, training, and managing staff is valuable.
Are there grants to start a party rental business?
It’s extremely rare to find a grant to start a party rental business. If you search for business grants, you will come across a lot of scams and misinformation. Occasionally an organization will offer grants to start a business, however, be skeptical and don’t provide any sensitive personal information or pay money to get more information.
Legitimate federal grants can be found at Grants.gov , and you can check on your state’s economic development office to see if they have any grants available.
What is the NAICS code for a party rental business?
The NAICS code for a party rental business is 532299.
The NAICS code (North American Industry Classification System) is a federal system to classify different types of businesses for the collection and reporting of statistical data.
Related: What is a NAICS code?
Resources: American Rental Association
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Welcome! My name is Greg Bouhl, and I have over 21 years as an entrepreneur, educator, and business advisor, where I worked with over 1,600 entrepreneurs to help them start and grow their businesses.
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Published on Nov 26, 2021
A full guide on how to start a party rental business
Written by Eliisa L.
The party rental industry has been a whirlwind these last two years. Since lockdowns and social distancing were enforced, the whole party scene disappeared overnight.
But now that restrictions have eased up, people have begun to embrace partying again as they gather together to socialize or converse. It's easy to see why: parties have existed since the dawn of man, and people will always seek to gather together when an opportunity for celebration arises. Whether it's a wedding, a birthday party, or a corporate event — there's always a good reason to throw a party!
So, starting a party rental business isn't a bad idea since the global economy is recovering and events are popping up left and right.
The party supply rental industry deals with providing the necessary resources for a particular party to be successful. This can include the rental of event venues such as a building or room space, chairs, tables, tents, cooking, and sound equipment. These equipment are either rented by organizations or individuals for the success of their event.
This detailed article will provide a complete guide on starting a party rental business and running it. Keep reading and start your company in this massive and trending industry.
Create a party rental business plan
When starting a party rental business, it would be wise to go with what you know. So, if you, for example, worked as a wedding receptionist at one point, maybe you should start a wedding rental business as you already know how the industry operates.
Let's go over what starting a party rental business requires, a few different business types, and then explore some of the essential steps to launching your business – including understanding the market, identifying competitors, and forecasting inventory costs.
Different types of party rental businesses
Before we get into how to start a party rental business or an event rental business, we understand that a bit of inspiration would be helpful. There are as many party rental business niches for every type of event and need out there. A few of these include:
Event planning and production companies
While the core business might be on the event planning and design side of things, an equipment rental business can provide a solid secondary income source.
There are several types of event production companies, some focusing on corporate events and some on private parties. Either way, if you have found it difficult to find equipment suppliers to match your needs, you might be on the verge of something. There are likely more people who have struggled with the same issues.
So, why not expand to the rental business?
Wedding rental business
Many consider a wedding the most important day in a romantic couple's life. So, it's no surprise they need some help making it all happen. Don't get all lovey-dovey on us, though; this is a seriously lucrative market that new business owners always try to break into.
To be in the wedding rental industry, you don't necessarily have to be able to offer hundreds of seats and tables. It could be as simple as providing decorations for different styles, including boho decor, lighting, dry flowers, table centerpieces, and all that stuff that might seem pointless to buy for that one day.
You can quickly start building your business up from there by doing a little research on the most popular wedding styles and venues.
AV Equipment rental business
Yet another profitable rental business you can start. One advantage of this business is that people will always need your services as long as there are events. Since AV equipment is so expensive and only necessary once in a blue moon, local event planners and individuals prefer to rent than buy.
Again, this is one of those industries that doesn't necessarily mean that you have to have the biggest sound systems or latest camera equipment; you can also start small and offer smaller speakers, mic setups, and smoke machines and build your way up.
This is also an ideal business model if you already own many of these things, whether because of your hobbies or something else. So while you're not using your equipment, you can just rent it out and ensure you're getting your money's worth of your investment.
Bounce house rental business
Bounce house rental businesses are becoming increasingly popular, especially among parents of young children. These businesses provide inflatable bounce houses for rent, often for birthday parties or other events — private or public.
They are usually staffed by one or more people who set up the bounce house and supervise it during use. Many bounce house rental businesses also offer other inflatable products, such as slides and obstacle courses.
Whether you're looking to add some excitement to a kids' birthday party or want to relive your childhood at a variety of events, a bounce house rental business can provide hours of fun for all ages.
Kitchen equipment rental business
It isn't a party without any food, right? One key tip to keep in mind with this particular business is that less is more. Rather than buying every kitchen equipment and utensils, only buy the essentials that most clients are asking for. Otherwise, you risk collecting useless inventory.
These are just a few different party rental business types. Other ones that have been gaining popularity recently:
Glamping and tent rental services
Seasonal event rentals (e.g., Christmas decorum)
Birthday decoration rental services
Do market research
A party rental business is a simple business idea that can make good money, especially when done full-time. As much as you can dive in headfirst by buying equipment and advertising your party rental company, it would be wise to understand how the industry works. This includes:
- researching the market
- getting contacts for wholesalers and other people in the industry
- figuring out where to acquire the necessary supplies
You can't forget that no successful party rental business can operate without a solid business plan.
Despite a lucrative industry, you might not get the best out of it without proper market research. The best way to do this is to determine who requires event rental services and define your target audience.
Since this is a diverse industry, your target market might be found in the most unexpected places like sports organizations, prominent business people, religious organizations, and cultural centers, to mention a few. Market research will help you establish clients' different preferences and needs and offer the best services for your potential customers.
→ Get started with our guide to financial planning and budgeting .
Identify your main competitors
As mentioned earlier, this is a fast-growing industry with a lot of demand. It will have an influx of rental businesses that operate in your area. Find out who your main competitors are, what they're doing, and what makes them successful – this will also give a pretty good idea of what kind of demand there is for different services.
If you're just starting and there's a prominent competitor in your area, don't be discouraged! Having already successful rental companies within reach can prove to be beneficial for you. Since they're already attracting potential customers to your area, or if people are already searching for similar services online, you can almost piggyback off of their visibility, so identify what's missing in their offering or services and do it better.
Establish a legal entity for your business
You've four main choices when deciding how to run your business legally. They are listed below. Note that there are differences in the business entity legislation from country to country. So, consider these more general guidelines, and at the end of the day, always rely on your local authorities. That being said, let's move on.
Limited Liability Company (LLC)
Each of these structures has its pros and cons. But which business structure is best for a party rental business?
A business partnership is a good choice if you start a business with someone else. However, this form of a company makes you financially responsible for your partner's actions.
A corporation can be a good choice for some businesses because they separate your business assets from your personal property and assets. However, this business structure is far more complex to set up and maintain.
So, this leaves you with two of the more common options that party rental business owners typically choose: sole proprietorship or LLC.
Setting up as a sole proprietor is easy and inexpensive. However, if anything happens to the business, you are personally liable. So think this through carefully.
However, setting up a limited liability company (LLC) protects your personal assets in the event of any business problems or debts. This liability protection makes LLCs a good choice for party rental businesses.
Register for taxes
Before opening your own party rental business, you must register for state and federal taxes. You'll need an Employer Identification Number (EIN) to do this. These are easy to access through the IRS, via their website, phone, or mail.
Otherwise, it's essential to register your details because running a business in some states means you'll need to pay sales tax.
Depending on which legal entity you choose, you may have some options about how you are taxed. You can read more about this on the IRS website.
Set up a business bank account
You should always have separate bank accounts for your business and personal spending. There are a few good reasons for this, but primarily it:
keeps your personal assets protected
helps you accurately track your business account
doing your taxes is much easier
Some new business owners make the mistake of not having a separate bank account. But it's vital to do, especially if you want to build up business credit to help with cash flow or eventually secure expansion loans with low-interest rates.
Party rental business insurance
To ensure long-term party rental business success is to get insurance.
General liability insurance : This type of insurance helps protect you and your business from third-party claims of bodily injury or property damage. Accidents can happen due to the typical environment and risks involved in party rentals. So, general liability insurance is essential.
Worker's compensation insurance : Setting up parties and building event venues happens in an environment where something can always go wrong – no matter how careful you and your employees are. Therefore, you will need an insurance policy that protects your workers in case of accidents.
Create a party rental website
Having a website is essential to reaching your target audience effectively. Without an online presence, you miss the opportunity for local search and digital marketing opportunities, which are some of the best ways to boost brand awareness.
Unlike selling and the linear business model, the rental industry requires tools and processes to support the business with bookings, inventory management, and payment-related aspects, like deposits.
Luckily, these days there are user-friendly website builders with all the features you need to build a professional-looking website via drag-and-drop interfaces. You don't necessarily even need a separate website builder and hosting because Rentle provides small businesses with a ready-made rental website . It's easy to customize, SEO optimized, and comes with an integrated online booking calendar and payment processing – everything in one platform.
However, if you prefer another website builder, check out Squarespace —it makes beautiful building party rental websites super easy.
What makes a great website?
A good party rental website must deliver relevant information effectively, be visually appealing, and function flawlessly. Your website should have straightforward navigation and structure , as these aspects lay the foundation for an overall good user experience .
Furthermore, ensure your website has high-quality photos to give your customers a sense of feeling of the events you have arranged, compelling copywriting , transparent pricing details, and clear contact information. To increase online sales, you should also keep the checkout of online bookings as straightforward as possible.
→ What makes a good eCommerce website
Because the inventory moves circularly, rather than linear like in retail, it's a more complex process that requires rental-specific tools, which usually cannot be found in traditional e-commerce platforms.
You can start by integrating party rental software into your website to make managing your bookings easier. In the long run, investing in software that is made specifically for renting will ensure that you can have a real-time inventory management tool that will help avoid double-bookings, have inventory-related analytics, offer your customers the option to pay in advance, set up deposits to prevent monetary loss, and so on.
You'll need to plan your marketing efforts and advertising strategies to get your business off the ground and running. Party rental businesses can take several approaches here, but below, you'll get some ideas of the most cost-effective tactics to acquire new customers.
Pay-per-click (PPC) ads are a great and cost-effective way for small businesses to promote their products and services. With a little effort, you get a massive reach, and the best part is that you don't need to spend a ton of money to get great results.
Different ad platforms offer various possibilities to reach your customers when and where they are ready to do business with your company. These platforms use their knowledge of your audience's demographics, interests, and geographical location to deliver your ads to the people they think are the most interested in your products and services.
You can, for example, deliver ads on search engines when people type in specific keywords you target or create custom audiences on social media platforms whom to target with more creative messaging.
→ Here's why and how you can get started with Facebook ads
Partnerships are a great way to find synergies between companies that complement each other's offerings. For example, a party rental business can partner up with a catering company to extend the offering and make it more convenient for the customers as they can book everything they need from one place.
Social media marketing
We live in the day and age of social media. Whether advertising on different platforms or generally just sharing your customers' experiences and what your business has been up to, it's the easiest way to stay in touch with your current and potential customers.
Having a community in business means that your brand is already established, and you have loyal customers who will buy your services anytime they need to. However, the main challenge is building that community.
One excellent way is by making the best out of your social media platforms. Using social media to connect with your customers or share experiences from your work is bound to attract followers and potential customers.
At the end of the day, people want to know the people behind the brand and are interested in seeing how everything works behind the scenes, so don't be afraid to get up close and personal with your content.
Search Engine Optimization
People search for information about local businesses, services, sights, and experiences online. The key to success in SEO is to understand people's search intent.
Search engines are likely the first place where people start finding information about companies that offer event planning and rental services in their area. As party rentals are local companies by nature, you must optimize your website and other online touchpoints for local searches .
If you need more ideas and inspiration to market your business, check out the 12 digital marketing strategies that every business owner should know .
How to choose the right rental equipment for your party rental company
No one gets into this business with expectations of closing it down shortly. We all hope our businesses will keep climbing to greater heights.
And it is for this reason you should be keen when selecting the equipment you will be renting, whether it's chairs, tables, sound, or cooking equipment. Remember: It's an investment. You don't want to go back and buy the same thing just a few months after you initially bought it.
While there are many things you should consider before investing in a piece of equipment, here are some main factors you should keep in mind.
Product demand and fit
This is the first thing you have to mind. Since this is a business venture, you should only buy equipment that will increase your party rental business's profitability.
Depending on what kind of party or event rental business you're running, your products' demand might highly depend on trends and seasonality.
The location also has a lot to do with your offering. If your customer base is located in the heart of the city and needs to rent out a space for an event, they'll most likely need basics like matching chairs and table sets, canopies, cutlery, and decoration.
If you operate in the suburbs, your customer base is more likely to own some of the things they might need but still be on the lookout for something special, like themed decorations, inflatables, sound systems that fit a festival, and so on.
As mentioned earlier, you are in business to stay, so whatever equipment you need in the company should be durable. You don't want to buy chairs and tables that will break during the first party and disappoint your customer's guests.
Since, occasionally, parties tend to get rough, you'll need equipment that can withstand day-to-day wear and tear. Ask yourself: will this equipment handle the test of time and grow with you? Is it futureproof? These questions will help you pick gear that will serve you for a long time and give a lot of value for your money.
An essential part of running a rental business, especially if we're talking about small companies just getting started in the party rental industry, is managing the inventory. Purchasing equipment is one part of inventory management and getting started, and the other is maintenance.
To put it short: the longer your products last and can be utilized, the more profit you will get.
So, in addition to making sure that you're purchasing equipment relevant to your target market, make sure that they're high-quality and serve you a long time. Consider also the spare parts that you might need for them.
Let's say you have a luxurious, high-tech sound system up for rent, and something happens to it. Repairing costs and replacing some parts can become extremely costly and a loss-making product for your business. For example, having products from the same brand often makes finding spare parts much easier and cheaper.
→ Check out our guide on choosing the perfect products for your rental business .
How to grow your party rental business
If you've already got some wins, you might be wondering where to go from there. Here are a few ideas on how to give your party rental business the boost it needs to grow to the next level.
There are many options for complementing party rental equipment with services. Some relevant examples include offering delivery, building, and dismantling services. You can choose to have the cost of the work to the price of the rental equipment, but it might be a good idea to offer it as an extra service. It depends obviously on the type of equipment you rent.
Other possibilities include offering design services, catering, program planning, etc. You need to pay great attention to the quality of these services as they determine your business reputation and customer retention. Nothing puts a customer off more than a late delivery or an event that didn't match expectations.
The biggest tragedy in any business is not telling a client about all your services. And this is a mistake that most people in the party rental business make. Upselling is a powerful business technique for generating more revenue.
Upselling confirms how well your company understands your customers' needs. Do they know that décor services are also a package you can provide?
Sometimes, up-selling might even be where the real money is made in your business. Aside from increasing revenue, upselling also increases customer loyalty since people buy more from you.
Give your customers real-life examples
This is another upselling trick. Most customers only believe in you after seeing what you can do. So use photos and reviews from other clients to give your clients a picture of what they can expect from you.
For example, if you have a décor package, show them photos of previous décor themes that you used and left your clients pleased. Pro tip: social media is also an excellent channel for this.
Build a strong customer care team
The most significant resource in your business is your workers. This is why you should continuously invest in them since they are the face of your business to the world. They are the ones who deal directly with your clients both in-person and online.
Teach them how to spot upselling opportunities and tie them back to solving the customer's problems. You can even arm them with tools that help them convince customers of your upsell offer. For example, a tablet to show off your portfolio. Lastly, offer incentives (for example, a sales commission) to your employees to keep them excited and motivated about upselling.
Opening second locations is one of the best ways to scale the business. Finding new locations will, in turn, help you reach more people. However, don't forget to do some geographical research to see whether your services are needed in a given region.
The demand for party supplies is increasing in all cities across the globe. However, the competition is also stiff. But don't let that scare you. The market could always use a new perspective.
If you treat your customers with care and conveniently offer what they need for their parties at reasonable prices, you'll have a hard time keeping up with the demand!
Article written by Eliisa L.
The storyteller that spends her time in the studio, outdoors, or creating the best, most relevant content for rental shops.
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Equipment Rental Business Plans
Did you know each of these plans was created in LivePlan? Learn More
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Borrow My Tools is a start-up company serving the San Mateo, CA community with home improvement tools for lease or rental.
Starting an equipment rental business makes a ton of sense in today’s world. With a trend towards minimalism and reducing environmental impact, allowing customers to rent the equipment they need versus purchasing outright is a win-win for both you and your customers. You might be wondering how much inventory should I take in, and how long should rental terms be, and the like.
The only want to determine these scenarios is putting the effort into creating a business plan that will unpack and optimize your equipment rental business opportunity. Get started today by perusing our selection of equipment rental business plans.
If you’re looking to develop a more modern business plan, we recommend you try LivePlan . It contains the same templates and information you see here, but with additional guidance to help you develop the perfect plan.
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How to Start an Event and Party Rental Business - Part I
Part I - Welcome to the World of Event and Party Rentals!
Making dreams come true with an event and party rental business.
Safe, memorable, and fun . Those are the three goals of any great event. Whether it’s a birthday party, a wedding, a graduation party, or a corporate retreat, organizers are almost always after those three qualities. And as an event and party rental professional, it will be your job to deliver all three.
Not everyone is cut out for this line of work. You’ll need to commit to lots of exhausting physical labor. You’ll need sizable investments or good credit to get the equipment you’ll need. And to be successful in party rentals, you’ll need to possess a willingness and a desire to make other people smile. Because at the end of the day, this is an industry where joy is a key commodity.
Did we scare you off? No? Great! The world of party rentals is an exciting one, and it can be highly rewarding (financially and otherwise) for those willing to put the work in. And in this series of guides brought to you by Tent and Table , we’re going to walk you through the process of starting your very own event and party rental business from scratch, with useful links and tips to help you at each step of the process. And yes, before you ask … this full guide is free.
The Day to Day Work of a Rental Operator
We already mentioned exhausting physical labor. What exactly do we mean by that? Well, event and party rental professionals tend to start early and finish late each day, and a lot of their daily work tasks require lifting and moving heavy equipment, some of which can weigh hundreds of pounds or even more. The business is highly profitable, but the work can at times be grueling.
On a given day, you’ll need to …
- Inspect your equipment thoroughly
- Load it into a truck or a van
- Drive it to the event site
- Remove it from the vehicle
- Set up all of the equipment, which includes lifting heavy equipment and driving stakes into the ground. You’ll need to use hand trucks and dollies for most of this.
- Double check everything for safety
- Tear down the equipment after the rental
- Load it back into the vehicle
- Drive it back to your warehouse
- Unload it and clean it thoroughly
- Bring it indoors and securely store it
The good news? This physical labor is usually split up as morning tasks and evening tasks, leaving you most of the rest of the day to manage your business and take care of other rental units that aren’t actively in service.
Much of the physical labor can be largely mitigated using carts, dollies , hand trucks , and other equipment. But still, you’re going to need to either enlist the help of a friend or family member, or hire someone to help you get the job done. We’ll discuss that more in depth as the tutorial progresses.
Understanding the Costs
Owning an event and party rental business seems pretty straightforward, right? You buy some bounce houses or party tents , rent them out to clients, and that’s that. But the job is considerably more involved than just that. And you’re going to need some equipment in order to do the job correctly.
As we mentioned a few moments ago, you’re going to need help with the physical aspects of the work. You may need to hire one or two people, or see if friends or family would be willing to help out for a fair cut of your profits.
After you’ve acquired your equipment (which we’ll discuss shortly), you’re also going to want to invest in support items for that equipment. Dollies and hand trucks are essential, as are sledge hammers , tent stake drivers , and spare stakes . If you’re working with frame tents, you’re going to need tent jacks as well.
All of these items are reasonably priced on their own, but the startup costs do pile up, and these items aren’t corners anyone should be trying to cut. You’ll want to sit down and carefully plot out what items you hope to rent and what other items you’ll want and need in support of those items.
Be Sure to Choose the Right Equipment
As much as we’d love to be your only choice for buying rental equipment, we’re sure many of you are going to shop around and see what other vendors have to offer. Whether you go that route or stick with TNT, be sure to remember that you’re not just looking for any old rental equipment. You need to buy the right rental equipment.
Many vendors sell licensed bounce houses, which at first glance look pretty appealing. Buying a Disney bounce house, or a comic book bouncer with Marvel or DC characters, seems like a smart choice at first. But your equipment purchases are going to be limited at first, and you want rental units that will appeal to as many potential customers as possible.
We suggest starting out with gender neutral bounce houses . Our rainbow and tropical themed products are amongst our most popular for this very reason. A rainbow bounce house appeals to both girls and boys. You can always add those gender-specific themed bounce houses and inflatable water slides down the road.
We also recommend starting with bounce house slide combos . Combos require a bigger investment, but they also rent for more and generally tend to be more popular with consumers. Adding at least one or two bounce houses with slides can improve your profitability right out of the gate.
If you’re working with party tents , we suggest focusing on popular sizes that are easier to work with. A 20x20 frame tent or a 10x10 pop up tent has a higher chance of getting booked than most other tent sizes or styles. You should also consider focusing on white tents at first, rather than going for colorful ones, since white tents can be used at just about any type of event.
Investments with Incredible ROI
All of those investments probably seem overwhelming, but only until you realize just how profitable this line of work can be. And if your business is successful, it’ll only be a matter of time before you’re hiring a full staff and leaving all of the backbreaking stuff to them.
Rental equipment pays for itself in 10 rentals or less , provided you price each unit accordingly. If you rent out your $2,000 bounce house for $200 per day one day per week, it’ll have paid for itself fully and will be earning profit after just 10 weeks. And most of our customers will tell you they’ve hit or exceeded that mark with each rental unit they’ve purchased.
Of course, a company that sells rental equipment is going to tell you how profitable this business can be. And it’s not like you can phone up your future local competitors and ask them about it.
What you can do, however, is head onto social media and search for groups of rental professionals. They’ll be very quick to tell you that yes, this industry is extremely profitable. Many companies were still booking gigs during the big 2020 social distancing months.
Starting a Party Rental Business is Challenging, but Worth It
Now that you have a basic understanding of what goes into the day to day tasks and general expenses of owning an event and party rental business, it’s time to start talking about what’s involved in actually starting the business.
In this five part series, we’re going to discuss just about everything we can think of. From writing a business plan, to marketing your company locally and regionally, to expansion and growing your staff and inventory, we’re hoping this guide will walk you through it all.
If you have any questions while reading this guide, please leave us a comment below or visit us on Facebook. If your question is about equipment specifically, give us a call at 1-716-832-8368 and our customer service and sales teams will be happy to help you out. We hope this guide is useful and we’re looking forward to hearing your success stories!
Up Next: Part II - Officially Creating your Rental Business
Welcome to the world of event and party rentals (part i), creating your rental business from scratch (part ii), marketing essentials for rental professionals (part iii), managing your new event and party rental company (part iv), party rental business growth and expansion (part v).
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It should be noted that there is no special software required to use these templates. All business plans come in Microsoft Word and Microsoft Excel format. Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- Loan Amortization and ROI Tools
- FREE PowerPoint Presentation for Banks, Investors, or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $110,000 for the development of a party equipment rental business while showcasing the expected financials and operations over the next three years. Party Equipment Rental, Inc. (“the Company”) is a New York based corporation that will provide for the rental of party equipment for children’s parties, weddings, and other events to customers in its targeted market. The Company was founded by John Doe.
1.1 Products and Services
The Party Equipment Rental is primarily in the business of renting equipment in conjunction with large scale events such as weddings, Bar/Bat Mitzvahs, children’s parties, Sweet Sixteen parties, and corporate events. The Company will provide for the delivery, set up, and pickup of rented equipment for each event. The Company will maintain an expansive inventory of tables, chairs, inflatable children’s playgrounds, and other products that are commonly used in conjunction with party equipment rental businesses. Currently, Mr. Doe is sourcing a number of vendors from which the business can acquire large inventories of rentable products. The third section of the business plan will further describe the services offered by Party Equipment Rental, Inc.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
Party Equipment Rental, Inc.’s mission is to become the recognized local leader in its targeted market for rental of party equipment.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience as an entrepreneur. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals and event planners within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Party Equipment Rental, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, Party Equipment Rental, Inc. requires $110,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Party Equipment Rental, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of Party Equipment Rental, Inc. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
Below is a description of the party equipment rental services offered by the Company.
3.1 Rental of Party Equipment
The primary revenue center for the business will be the rental of equipment for parties such as weddings, Bar/Bat Mitzvahs, Sweet Sixteen parties, corporate events, and children’s birthday parties.
3.2 Ancillary Services
The Company will generate secondary streams of revenues from other services related to renting party equipment such as delivery of items, setup, onsite management (especially important for events that involve children’s inflatable party equipment), and cleanup/pickup of equipment. Management expects 20% of the Company’s aggregate revenues will come from these services.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the party equipment rental industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2010, at which point the economy will begin a prolonged recovery period.
4.2 Industry Analysis
The party equipment rental and supply business consists of 3,500 suppliers across the Untied States that rent inflatable party equipment, grills, stoves, party tents, tables, chairs, and other items normally associated with large scale parties and events. Among these market agents, aggregate yearly revenues are approximately $3.5 billion dollars per year. The industry employs more than 26,000 people, and provides annual payrolls in excess of $750 million dollars. The growth of this industry has remained on par with the growth of the economy in general, and is expected to remain as such as time continues.
4.3 Customer Profile
Management has developed two categories of customer: individual and corporate. Among individuals, the Company expects that people that are hosting weddings, birthday parties, Sweet Sixteen parties, Bar/Bat Mitzvahs, block parties, and other events will contract with Company to provide an extensive variety and party equipment. Among these users, Management has outlined the following demographics: • Household income exceeding $35,000 • Is willing to spend up to $200 to $1,500 for rental of party equipment. The second demographic targeted by the Company are corporate event planners and independent event planning businesses. These companies will directly contract with the Company to provide equipment for large scale events. Among these businesses, Management has outlined the following demographics: • Event has a budget of at least $7,500. • Event will have an attendance of at least 50 people. • Event will a budget of $500 to $2,000 for party equipment rentals
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
Party Equipment Rental, Inc. intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Company.
5.1 Marketing Objectives
• Establish relationships with event planners within the targeted market.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow Party Equipment Rental, Inc. to easily target individuals and businesses within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the party equipment rental services that the Company is selling. Party Equipment Rental, Inc. will also use an internet based strategy. This is very important as many people seeking local services, such as renters of party equipment, now the Internet to conduct their preliminary searches. Mr. Doe will register Party Equipment Rental, Inc. with online portals so that potential customers can easily reach the business. The Company will also develop its own online website showcasing the services offered by the business, relevant contact information, and preliminary pricing information. Finally, the business will develop ongoing relationships with event planners that will subcontract the rental of party equipment to the Company.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography about your work experience, your education, and your skill set. For each owner or key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• Party Equipment Rental, Inc. will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $110,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. In the event of an economic recession, the Company may have issues with top line income as individuals and businesses scale down the size of their hosted events. However, despite decreases in revenues, Party Equipment Rental, Inc. will be able to remain profitable due to the very high gross margins generated by the business.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis
Executive Summary · Give a brief overview of the party rental industry. · Discuss the type of party rental business you are operating. · Detail your direct
Step 1: Study your market · Step 2: Write your business plan · Step 3: Register for business licenses and permits · Step 4: Purchase the right equipment · Step 5:
Whether you're specializing in table and chair rentals, wedding rentals, party games and inflatables, ... HOW TO DEVELOP AN EVENT RENTAL BUSINESS PLAN.
The party supply rental business are basically involved in renting out tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address
Developing a Party Rental Business Plan.
Checklist for Starting a Party Rental Business · Step 1: Write a Business Plan · Step 2: Form a Business Entity · Step 3: Name the Business · Step 4
The party supply rental industry deals with providing the necessary resources for a particular party to be successful. This can include the
Starting an equipment rental business makes a ton of sense in today's world. With a trend towards minimalism and reducing environmental impact
The Day to Day Work of a Rental Operator · Inspect your equipment thoroughly · Load it into a truck or a van · Drive it to the event site · Remove
The Company will provide for the delivery, set up, and pickup of rented equipment for each event. The Company will maintain an expansive inventory of tables