It is not difficult to learn how to start a party supplies rental business. If you want to turn your passion for parties into a home-based rental business, you’ve come to the right spot. The best part about starting a party supplies rental business is that you don’t have to be there at all times. Furthermore, starting a party supplies rental business requires a small investment up front, and scaling it to a six or even seven-figure business requires little to no time.
This step-by-step guide will help you discover more about this business venture and decide if it’s the perfect next step for you as an entrepreneur.
1. Familiarize yourself with Party Supplies Rental Industry
Party supplies rental businesses cater to certain demographics. Typically, party supplies rental companies rent out a selection of party supplies. Party organizers who do not want to spend a fortune on party supplies might rent the supplies for a limited period of time. The perfect target market for a party rental business is someone who requires party supplies for just a single day or a couple of days at maximum. Whenever someone rents party supplies from this type of business, they are delivered to a certain area and returned at the conclusion of the rental time.
People don’t have to be concerned about wasting money on party supplies they’ll only use for just a single party. Party supplies rental businesses can profit from their one-time purchase and grow their business in the future by purchasing more supplies, renting them out, and collecting recurring rental fees.
The majority of party supplies rental companies serve party organizers. Event management companies, engaged couples(for marriages), pregnant ladies (for baby showers) and house party organizers are some of their typical target markets. The best thing about this business is that you can even enter a niche party market and provide party supplies for a specific niche party. For example Party on Demand provides all the baby shower essentials on their Baby Shower Event Planner Package.
One more best thing about starting a party supplies rental business is that you can easily upsell your clients. For example, you can provide a cake, a DJ and a photographer at an extra cost within your party supplies rental package. This way you get a chance to make a nice commission on these services while providing your clients with everything at a single stop.
A party supplies rental business can be quite profitable if you target the appropriate consumers. Renting party supplies may make life a lot easier, and your rental business could help anyone who needs supplies for a single party. New and old party supplies are both affordable. As a result, starting a party supplies rental company is an excellent way to break into the rental sector.
How much does it cost to buy party supplies?
Party supplies for a basic rental business may cost $3000 to start with and goes up from there. If you want to establish a great party supplies rental business, you’ll need at 10-15 variety of party supplies, costing roughly $8000.
It all depends on what type of party supplies you want to offer and the scale of your business. Nevertheless, you do not need a huge investment when buying party supplies for your rental business.
How much does it cost to start a party supplies rental business?
You will need at least $4000 to start a basic party supplies rental business ($3000 for party supplies and $1000 for marketing, website, and other misc. costs). A $5000 extra might help you get your business off the ground quicker. On the other hand, you’ll need at least 15 variety of party supplies to operate on a wider scale and offer a variety of party supplies alternatives, which will cost around $20,000. As a result, it will cost you roughly $25,000 to launch large-scale party supplies rental business. (party supplies cost plus marketing expenses)
You may want to consider buying used party supplies while starting out. There is always an option to buy newer ones or reinvest on your inventory once your business picks up the pace. All in all, Party supplies rental is one of the best businesses to start and expand if you don’t mind putting in some effort.
Is the party supplies rental business profitable?
A party supplies rental business can be extremely profitable if you undertake sufficient market research. The number of consumers you can attract will determine the success of your party supplies rental business. While starting out I recommend purchasing supplies like portables bars, carpets, silverwares, glassware, drapings, decors and lights. I would also advice you to not spend more than $3000 in party supplies while starting your party supplies rental business. Even if you start your rental plan at $50 per day, you will just need to rent out your supplies for 60 days to recuperate all your investment. In addition, unlike car rentals, party supplies rental require very minimal maintenance.
Is the party supplies rental business worth it?
Starting a party supplies rental business is definitely worthwhile. You may start your business with just a few much needed party supplies. The best part is that you can also start a small party supplies rental business by buying secondhand party supplies. While starting out you can just start with renting out table, chairs, linen, silverware, portable bars, glassware and drapings, which can easily bring you around $100-$200 per week. And once you start saving enough money, you can buy and rent more expensive items like portable kitchens, services, lightings and floorings.
Furthermore, this type of rental business is highly scalable, and if you reinvest a fraction of your profits, you could easily turn it into a multimillion-dollar rental business in no time.
2. Plan your Party Supplies Rental Business
The planning stage is crucial to every company’s success. And it is no different for a party rental business. Let’s look at some of the most important factors to consider when starting a party supplies rental business.
Choose a name for your party supplies rental business
You’ll need a name that reflects your ideas, whether you’re beginning a party supplies rental company or a utility trailer rental firm.
Keep in mind that your legal business name must comply with state naming regulations in the states where you intend to do business; otherwise, the state may refuse to accept the documents you filed to incorporate or qualify the company.
It’s also a good idea to discuss branding and how it will affect your firm before deciding on a business name. The key question is whether your legal business name will also be your brand name, or whether your brand name will be separate from your legal name.
To be honest, it’s best to use your actual business name as your brand name when you first start out. Why? You are free to inquire at any time. This is because it makes things easier, is less expensive, and simplifies things.
If you start an informal business, however, several states require you to use your surname as the official name of your company (sole proprietorship, limited liability partnership, or general partnership).
Would it concern you if your legal business name and your surname were the same? You can proceed to the next stage if you respond yes. Please bear with me if you say no.
You must file a Fictitious Business Name Statement with the county where your party supplies rental business’s main office is located if you do not want to use your surname as your legal business name.
When it comes to coming up with brandable names for your party supplies rental company, Shopify’s Firm Name Generator comes in handy. After you’ve decided on a name for your party supplies rental company, do three final checks.
- First, check your State’s business name database to see if your desired business name is available.
- Second, do a domain name search to check if your business name is available as yourbusinessname.com. If it is available go ahead and register the domain before anyone else gets it. BlueHost offers domain names free of cost if your purchase a 1-year hosting package with them. You can use the tool below to see if the domain name is available.
- And lastly, do a federal search on the US Trademark Electronic Search System and make sure nobody has already trademarked your name.
You can trademark your party supplies rental business name if it is available, but don’t worry about it for now. It’s a lengthy process that will set you back roughly $600. I’d instead put my time and money into marketing.
Party supplies rental business plan
At the very least, you’ll need a compelling business plan to launch successful party supplies rental business. A well-written business plan should outline the business’ main goals and how it intends to accomplish them. A party supplies rental business plan also serves the aim of making your company appear professional and appealing to potential lenders and investors.
Overall, a well-written, practical party supplies rental business plan is an essential document for your organization. You’d be rushing around like a headless chicken without it.
A compelling business plan has many sections, some of the must-includes are:
- Executive Summary
- Business Description
- Market Analysis
- Competitor Analysis
- Services to Offer
- Competitive Pricing Strategy
- Marketing Strategy
- Financial Projections
Two tools, BizPlan and Enloop, can assist you in creating a professional-looking business plan. Don’t scrimp on your party supplies rental company’s business plan by paying $5. Producing professional, high-quality work will be required.
3. Register your Party Supplies Rental Business
You must first register your party supplies rental business in order to legally operate it. You must first perform a study and choose a business structure before registering a party supplies rental firm. Because the way you set up your party supplies rental business can affect your taxes and legal obligations, you’ll want to make an informed selection.
Consider the following example of some typical business structures:
A single person or a married couple owns this type of unincorporated firm. You won’t need to register your business, and your taxes will be reflected on your personal tax return.
This is a form of an unincorporated business with numerous owners that, in terms of registration and taxes, is similar to a sole proprietorship.
Limited liability company (LLC)
In the event that your party supplies rental business is sued, a registered corporation provides personal liability protection to all of its members. You have the option of taxing your business as a partnership or a corporation.
This is one of many incorporated business structures. There are many ways you can register your party supplies rental business as a corporation. However, the most popular ones are S-corp and C-corp. The taxes you’ll pay will depend on the type of corporate structure you register your business in. If you are just getting started in this rental business, I will highly suggest you stay from forming a corporation, as they are usually complex and the process is a bit overwhelming for beginners.
4. Register for Taxes and Obtain an EIN
As a personally liable business owner, you must constantly follow the law. This demands compliance with all tax, licensing, and labor requirements. In the long run, learning about any legal laws that pertain to your party supplies rental business could save you time, money, and hassles. The type of business entity you choose, as well as other aspects of your party, supplies rental business, may influence what taxes you must pay and how you must file. To ensure you’re on the correct route, see a tax expert as soon as feasible.
If your party supplies rental company employs others, you’ll require an employer identification number. It is also referred to as a company’s EIN, or tax identification number. You may obtain an EIN from the IRS online for free and use it to submit taxes for your party supplies rental business. It’s required to open a business bank account, obtain a business credit card, or apply for a business loan. Even if you do not plan to hire employees, getting an EIN has several advantages.
5. Get Funding for your Party Supplies Rental Business
Even if you have the best party supplies rental business in the country and can captivate the hearts of your customers from miles away, your business will fail if you don’t have enough capital. It may seem counterintuitive, but you must first have money in order to make money. It is impossible to deny that acquiring party supplies and stocking them is an expensive investment. If they weren’t so expensive, everyone would purchase one, and the party supplies rental industry would be obsolete. Not to mention paying exorbitant rent, marketing your service, and paying your employees’ salaries and benefits.
A number of incentives, subsidies, loans, and equity investments are available to party supplies rental companies. You must have the following documents (at a minimum) regardless of the funding source you choose:
- A Party Supplies Rental Business Plan
- Projected Financial Statements
- Tax returns of both the business owner and the business itself (when available)
- An explanatory document on how the money will be used
- A description of services offered by your party supplies rental business
After you’ve done the number crunching and figured out how much money you’ll need for your party supplies rental business, you may look into the following choices.
- Obtain funds through SBA-backed lenders (Wells Fargo, US Bank, MidFirst Bank, etc.)
- Get funding through Banks
- Obtain funds through P2P lenders (Prosper, Peerform, Lending Club, Funding Circle)
6. Promote your Party Supplies Rental Business
Most business owners, for some reason, do not incorporate marketing in their business plans. This is one of the most expensive mistakes you can do, so avoid it at all costs. Marketing and promotion activities can make or break your party supplies rental business. Additionally, if you do not have a large sum of money to invest right away, you must understand how to properly promote a party supplies rental business effectively. A solid marketing strategy, as well as effective communication strategies, are essential for starting a successful business venture.
Let’s look at some traditional and innovative party supplies rental marketing strategies.
Build a Website
I can’t emphasize this point enough. You’ll need a website to manage a party supplies rental business. There is no way around it. Since the world has gone digital, your party supplies rental business must have a well-designed website in order to attract clients digitally.
Make the most of the resources available on the internet. Your party supplies rental website should also be unique and consistent with your brand. Include photos of your party supplies and testimonials to make a lasting impact on your visitors. After all, actions speak louder than words.
Remember to include the mission statement for your party supplies rental website. Also, explain why your customers should rent from you. A website also provides a digital presence for your party supplies rental business, allowing potential customers to search for and find you online.
If you want to do it yourself, check out my guide for making a simple website for your small business. If you’d want someone else to manage the technical parts of your party supplies rental business while you concentrate on gaining new customers, we can help. Our $499 digital bundle includes a professionally constructed website, unique email, 24/7 support and maintenance, SEO, and digital marketing services. This is an opportunity you should not miss. Please contact us as soon as possible before the offer ends.
Establish social media accounts
Create social media accounts for your party supplies rental business to give it a digital presence. You must be selective in this regard. You do not want to waste time by appearing on every social media platform available, especially those that do not cater to your target market.
Depending on the size of your operation, You want your party supplies rental business to be on:
Almost everyone nowadays utilizes social media to shop for goods and services as well as communicate with friends and family. More leads and sales can be generated by getting your party supplies rental business in front of your target demographic. It can also be utilized to keep existing consumers updated as well as attract new ones.
Run Paid Ads
Paid advertisements allow you to target certain demographics and geographic areas, making them a fantastic tool for your party supplies rental business. Consider using platforms like Facebook Ads, Yelp, or Google AdWords to conduct paid ads. Furthermore, sponsored promotions deliver results rapidly, helping you to scale your party supplies rental business both vertically and horizontally.
Please contact us if you require any expert assistance in running paid advertisements for your party supplies rental business. We will be more than delighted to give you some free assistance and resources.