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How To Start A Party Rental Business

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By: Scam Risk - Expert Reviewer

21 Steps You Need To Know About How To Start A Party Rental Business (In 2021)

Are you looking to start your own party rental business?

This 21-step guide will show you how to start your own party rental business without having any prior experience.

A party is defined as a gathering where people invited by the host socialize, have conversations or enjoy recreation together.

It typically includes foods and drinks, as well as music and beverages.

Towards the end of this article, you’ll find answers for some of the most frequently asked questions on how to start a party rental business and other online alternatives.

But most importantly, you’ll be shown a system that several others have used to build their own business to over $40,000 a month in mostly passive income.

Table of Contents

21 Steps To Starting A Party Supply Rental Business From Home

1. Understand The Industry.

Investing in the party supply rental industry is an excellent way of making extra money. In the long term, it can become a full-time and lucrative business.

The rental of equipment is an option, but it is possible to start the business from home. However, once you have started hosting parties, you will want to invest in your own supplies.

2. Conduct Market Research And Feasibility Studies.

Many factors influence the demographics and psychographic compositions of people who require party rental services.

This includes all aspects of human endeavors. It includes households, communities, individuals of all classes, and all walks of life.

Depending on the demand and your personal preference, you may cater to home parties, corporate events, or local gatherings.

3. Decide What Niche To Concentrate On.

The niches in this industry are just like any other business.

If you plan and follow the proper steps, these niches can make a business prosper and make you stand out from your competitors who have already made a name in the industry.

4. Know The Major Competitors In The Industry.

The big names are the foundation of every industry. These are the gig companies, the leaders, and shakers who have continued to grow stronger over the years despite all the challenges.

It’s not unusual for party rentals to be big business. Here are some of America’s most well-known rental companies.

  • United Rentals
  • Sunbelt Rentals
  • Hertz Equipment Rental Corp
  • Home depot rentals
  • Blueline Rent
  • Aggreko North America
  • H&E Equipment Services
  • Sunstate Equipment Services
  • Finning
  • NES Rentals
  • NEFF Rentals
  • Maxim Crane Rental Corp.
  • Ameco
  • Ringpower
  • Holt Cat

5. Decide Whether To Buy A Franchise Or Start From Scratch.

If you’re interested in investing in the party rental sector, there are two options: purchasing a franchise from a successful party rental business or partnering with one.

We are all motivated to start businesses based on many factors and incentives.

If your goal is to create a company you can control, transfer ownership to your family, and possibly sell franchises in the future, you should consider starting from scratch.

If you are only looking to make money and multiply your wealth, you might as well purchase the franchise of a party rental company that is ready to sell.

6. Know The Possible Threats And Challenges You Will Face.

Generally, both established and upcoming businesses in the party rental industry face threats and challenges.

These include government policies, global economic downturns, affecting spending, and unforeseen natural catastrophes (disasters that could cause setbacks).

A significant threat is the competition from established, well-respected party rental companies.

7. Choose The Most Suitable Legal Entity (LLC, C Corp, S Corp).

If you are looking for a legal entity to manage your party rental business, you may choose from three options.

They are general partnership, a limited partnership, an LLC, a “C” corporation, or an “S” corporation.

Every entity that is used for different business purposes has its benefits and disadvantages.

That’s why you should carefully weigh all of your options before deciding on the best legal structure to start your party rental enterprise.

You might also want to open a business bank account to separate your personal and business assets. In this way, your personal assets are protected if your business gets sued.

8. Choose A Catchy Business Name.

You need to choose a catchy name that will bring in many customers for your party rental business. Names are the only thing that can draw people to your company. It is essential to be careful and selective in choosing names.

9. Discuss With An Agent To Know The Best Insurance Policies for You.

You must create a budget to insure your party rental company. An insurance broker can help you choose the best insurance for you by assessing the industry’s risks and then recommending the best policy.

10. Protect Your Intellectual Property With Trademark, Copyrights, Patents.

Intellectual protection may not be necessary for this industry.

You should ensure that your company has all the required equipment and tools and that all steps are taken to verify its authenticity and originality in the country where you live.

11. Get The Necessary Professional Certification.

The rental sector is one of the many industries that are tightly regulated to prevent any costly breaches. To stay ahead of your game, you must have all the necessary qualifications to open a party renting business.

The American Rental Association (ARA), the most widely recognized exam in America, is the Certified Event Rental Professional. It will make your business more professional.

12. Get The Necessary Legal Documents You Need To Operate.

The rental industry in America, and around the globe, is tightly regulated.

This is to prevent costly mistakes that could occur from not paying close attention to details. You must meet all legal requirements if you plan to start a rental company.

13. Prepare A Detailed Cost Analysis.

It is essential to have performed and analyzed market surveys and feasibility studies before you create a budget. Here are some of these costs you need to know when starting a party rental business in the US.

  • The Total Fee for Incorporating the Business in United States of America – $750
  • The budget to cover insurance, permits, licenses – $5,000.
  • The cost to rent an appropriate office facility in the United States of America with enough space (Re-Construction of facility inclusive) – $50,000
  • The cost for equipping your office (computers, fax machines, furniture, file cabinets, safety gadgets, etc.) – $15,000
  • The cost to rent equipment such as tables and chairs, canopies plates, pots, and plates. Renting equipment from Tables, Chairs, Canopies, Plates, Pots, etc. – $15,000
  • Launching an official website costs $700
  • Additional Expenditure – Business cards, signage, ads, and promotions et al. – $2,500
  • Other miscellaneous $1,000

According to the feasibility and research reports, the minimum amount required to start a small rental company in America is $100,000.

For a medium-sized rental company, it would cost you over US$180,000. If you want to start a large private security company, you need to budget around 2 million US dollars or more.

14. Raise The Needed Startup Capital.

You might not need much capital to start a party rental business if it is small in scale. However, if the company is large, you will need the necessary startup capital to launch it.

Write a great business plan when financing your business. You won’t have to stress about getting the right people to invest in your company if you have a solid business plan.

15. Choose A Suitable Location For Your Business.

It’s not easy to pick a location for your company. The truth is, if you do not choose the right place for your business tent, you will likely struggle to build momentum.

16. Hire Employees For Your Technical And Manpower Needs.

If you’re thinking of starting a party rentals business, you have to set up the necessary logistics to be successful. These are some of your technical and managerial responsibilities:

  • Get the party rental equipment you need. You must have enough equipment to plan for many events simultaneously. It is crucial to have an inventory for each type of party and the equipment necessary for them.
  • Offer catering services, or keep a directory of preferred caterers that you can recommend. Examples include birthday cake, soft beverages, pizza, and beer for bachelorette parties.
  • A banquet room can be provided on your premises for those who cannot host parties in their own homes.
  • Purchase large vans. This is necessary if you intend to provide tables and chairs as well as inflatables. If you’re going to be washing high quantities of tablecloths/napkins, it is worth looking into commercial laundries.
  • The staff needed to run the operation include wait staff, workers to set up and take down tables and tents, and kitchen assistance.

The Service Delivery Process Of The Business

The services process involved in this industry requires that you get the contracts to provide rental services for either organization/ individual and ensure that this is carried out effectively. Likewise, it might be necessary to carry out some extra services, such as catering for a particular business, and other things.

17. Write A Marketing Plan Packed With Ideas & Strategies.

If you’re creating your marketing plans and strategies for your party rental company, it’s essential that you take the time to make sure all details are clearly stated and that the message is memorable.

Here are some options for marketing your party rental business.

  • Advertise your business on relevant TV and radio stations, as well as in magazines for business and radio.
  • You can list your business online or offline in yellow pages and local directories.
  • Take advantage of the internet as a tool to promote your company. Use all social media platforms to maximize your marketing efforts.
  • Connect with local chambers to market your private security company.
  • You can introduce your pest control business to the community by sending introduction letters along with your brochures to all the local corporate organizations, leaders, schools, hospitals, and hotels.
  • Promptness in bidding contracts
  • Different packages can be created for other client groups to fit their budgets.
  • Direct marketing, referral marketing, and email marketing are all options you can also try.

18. Develop Iron-Clad Competitive Strategies To Help You Win.

It can be challenging to compete, especially in a highly organized market such as the United States of America.

If you have the skills and equipment required to execute a rental contract, your company will compete in this industry.

As such, make sure you give your all to every rental agreement. You must be known for providing exceptional services every time.

This will increase your company’s reputation and enhance your image.

19. Brainstorm Possible Ways To Retain Clients & Customers.

No matter what industry your business is in, satisfying customers is the best way to retain customers and possibly attract new customers.

Customer satisfaction is the best indicator that they will continue to use your services.

Quality drops are one of the biggest reasons customers switch to another service provider. Poor customer service can also be a reason.

Maintaining loyal customers is possible if your customer service and quality are improved.

20. Develop Strategies To Boost Brand Awareness And Create A Corporate Identity.

It is possible to build brand awareness by leveraging your past experience with contracts and the marketing strategy that your company has employed.

It is crucial to work with your consultants to reach your target market. It is important to allow different types of people to be involved in your work.

21. Create A Suppliers/ Distribution Network.

Because of the nature of the rental industry, there is plenty of room for rental companies and other rental companies to connect.

Because the industry itself is huge, it’s crucial to have a strong supplier and distribution network.

Also, don’t forget that party rental businesses can form strategic alliances.

If you need a particular service and it isn’t available, you can work with others in the sector to make sure that you have adequate coverage.

Tips For Running A Party Rental Business Successfully

You need to bring everyone together to run your organization successfully regardless of what business you are in.

As the chief operating officer of a party rentals company, it is your responsibility to provide direction. You must ensure that there is time for office meetings.

This can be done daily, twice a week, once a month, or every day. You must have consistent meetings within your organization.

Regular appraisals will help you manage your organization efficiently. Training your employees is also a good idea. Your organization will benefit if your employees are certified in their specialties.

Your team members and clients should be encouraged to suggest ideas. It is crucial to reward exceptional performance in your workplace.

It will promote healthy competition.

If you follow these guidelines and couple it with hard work, you will be well on your way to your party rental business success.

Take the Next Step

Find A Business Mentor.

Mentorship can be one of the greatest assets an entrepreneur could have. For help in planning your business, get in touch with a business resource close to you.

Owners of new businesses need to be able to rely on their support network during difficult times.

Learn From Other Business Owners.

Are you looking for advice from entrepreneurs on starting a business? Startup Savant’s Startup Creator Series will directly give you entrepreneurial insights, tips, and advice from the founders.

Resources To Help Women In Business

There are many resources specifically designed for women entrepreneurs. We have collected all the information you need to succeed both professionally as well as personally.

  • Funding
  • Events
  • Guides
  • Support

Check out this amazing new series Women in Business by Startup Savant for help if you are a woman interested in entrepreneurship.

FAQs

Is Party Rental Profitable?

Today, renting businesses is a very profitable way to invest. The days of renting out items you couldn’t afford are gone.

Even though not everyone can afford a $40000 motorhome, they may be able to rent one for a small amount of time.

How Do You Grow An Event Rental Business?

The following five steps can be taken to help your event-rental business grow immediately:

  1. Increase your online presence.
  2. Double down on your money makers.
  3. Socialize.
  4. Learn your limits.
  5. Automate your processes.

What Rental Business Can I Start?

  1. Party Supplies Rental Business
  2. Wedding Equipment Rental Business
  3. Furniture Rental Business
  4. Vehicle Rental Business
  5. Clothes Rental Business
  6. Storage Rental Business
  7. Property Rental Business
  8. Sports & Hunting Equipment Rental

How Much Does It Cost To Start A Party Rental Business?

You can expect to spend between $25,000 and $300,000 to start a smaller business or specialized one. However, you could pay as much as $300,000 for a large and more extensive supply business.

Typical startup costs include inventory.

Can You Make Money Renting Inflatables?

It is possible to start an inflatable party rental business. This can be either a profitable home business or a fully-fledged full-time venture.

Our team has years of experience starting rental companies and helping them grow.

The Inflatable Party Rental Business has a growth rate of over $3.5 billion annually.

What Is The Growth Potential For A Party Rental Business?

The location you serve has a significant impact on your growth. Offering many events a year may not be possible if your business caters more to large local organizations.

But promotions, birthdays, and retirement parties can be a regular occurrence, which will make you a more profitable business if it serves the entire area.

What Happens During A Typical Day At A Party Rental Business?

The following are the things party rental owners can expect to do on any given day.

  • Researching party equipment
  • Preparing rental contracts
  • Selling rentals 
  • Repairing and replacing party equipment
  • Marketing and advertising your business

What Is Our #1 Recommendation For Making Money In 2021?

Our review team has come across a program in the real estate industry that is next level!

Although it’s not real estate in the traditional sense, it’s all digital.

Yup, Digital Real Estate!

With digital real estate, you have the opportunity to completely walk away from your 9-5 job!

Sound too good to be true?

Of course it does!

But it isn’t… in fact, business owners wish they had this skill!

What exactly is the skill?

Well, basically you are acting as a conduit for small business to increase their bottom line.

What we mean is…

You are helping these businesses grow!

But how?

All you have to do is build and rank a website and forward certain jobs off to a business owner in town, you could even email it to them!

This works for literally any service based business… ie: tree service, plumbing, towing, etc. 

How Do You Get Paid And How Much?

Simple, after you forward the jobs off to a business owner and he makes closes the deal, you simply ask to agree to a WIN-WIN arrangement.

A fair price to charge per lead, depending on the industry is 10-20%… let’s just use the tree service industry for example and go by worst case scenario.

Let’s say you build and rank the site and only 20 jobs a month come in. The average tree service job is anywhere from $500-$2000!

That means at bare minimum you have an asset worth $1000 a month!

See why they call it digital real estate now?

That’s a rent payment. 

The great thing is how easy it is to scale. You don’t have to answer the phone…all you have to do is get the phone to ring.

Truly passive income!

The training program takes making money online to a whole other level. The owner of the program walks you through how to build and rank a site hand in hand, with the occasional voice over when he is sharing his screen.

You will learn the importance of keywords, website name, how to send call notifications via email, backlinking, etc.

Once the training program is completed you will also have access to a Facebook group where you can ask questions and be in a community with others on the same journey as you.

Digital real estate allows you to have passive income with most of your day being spent OUT of the brick and mortar landscape.

Now, we know you probably have tons of questions… 

So, check this out to learn more.

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