Starting a Costume Rental Business from the Ground Up

Overview of a Costume Rental Business

A costume rental business provides outfits and accessories for short-term use. Customers pay a rental fee, use the costume for an event or production, and then return it by an agreed date.

The same item can earn income many times if it is cared for and kept in good condition.

Costumes can cover many themes. You might carry Halloween outfits, historical pieces, theatrical wardrobes, cosplay looks, mascots, and formal wear.

You can also offer wigs, hats, masks, shoes, props, and other accessories to complete each look.

This type of business can start small with one owner and a modest inventory. Over time you can add more costumes, staff, and services as demand grows.

You decide how far you want to grow, but even at a small scale you still need solid planning and the right setup from day one.

Business Models for a Costume Rental Business

Before you go any further, step back and think about how you want to run this business. The business model you choose will affect your location, your costs, and how your customers find you.

It also shapes how much help you need from staff or partners.

Some models work well for a solo owner starting from a small space. Others need a larger storefront, a bigger inventory, and a team to handle fittings and customer flow.

Think about what fits your budget, your skills, and your lifestyle, not only what sounds exciting.

You can mix and match parts of these models over time. Many owners start simple and add more services as they gain experience and cash flow. You do not need to build the final version of the business on day one.

• Local storefront rental: A physical shop with walk-in and appointment customers for holidays, parties, schools, and theater groups.
• Appointment-only studio or home-based showroom: A smaller space with scheduled fittings, often focused on theater, dance, or cosplay clients.
• Online-first rental with shipping: Customers browse a catalog online, receive costumes by courier, and ship them back after the event.
• Business-to-business focus: Contracts with schools, community theaters, dance studios, and production companies for entire seasons or specific shows.

Step 1: Decide if This Business Is Right for You

Before you think about costumes, ask if owning any business fits you. You are trading a steady paycheck for uncertainty and full responsibility. You may face long days, few breaks, and decisions that affect your income and your family.

Spend time with questions like, “Am I moving toward something I want, or just running away from my current job?”

If you are only trying to escape a problem, that energy often fades when things get hard. Passion and genuine interest help you stay focused when problems show up.

Use a practical resource like this guide to points to consider before starting a business to walk through the realities.

Also think about how passion influences your staying power by reviewing how passion affects your business. These ideas shape whether a costume rental shop is a good fit for you or whether another path would be better.

Step 2: Get an Inside Look From Existing Owners

You can save a lot of trial and error by learning from people already running similar businesses. The key is to talk only to owners you will not compete against. That usually means people in other cities or even other states.

Ask them about the realities you cannot see from the outside. What do they wish they had known before they opened? Which parts of the business are harder than they expected? Which services bring in the most profit, and which just take up space?

For a structured way to approach those talks, see this guide on getting an inside look at a business from the right people. Good questions now can save you money, time, and stress later.

Step 3: Clarify Your Niche and Ideal Customers

Once you decide this path might fit you, narrow down who you want to serve. “Everyone who needs a costume” is too broad. Your choices about customers will shape your inventory, layout, and marketing.

Think about the types of events and groups in your area. Do you have many schools with drama programs, community theaters, or dance studios? Are there local conventions or a strong cosplay community? Are you near event venues that host themed parties or corporate events?

List the customer groups that make sense for you, then decide which ones you want to focus on first. You can add more groups later, but starting with a clear target will help you make better decisions about stock, space, and services.

Step 4: Check Demand and Profit Potential

Now look at demand and potential profit. You need enough rental volume and pricing power to cover your costs and pay yourself. Otherwise you will only build stress, not a sustainable business.

Start by looking at your competitors. Visit their websites and, if appropriate, their stores.

See what they offer, what seems to be in demand, and where there are gaps. Then compare that to the number of schools, theaters, event planners, and households in your area.

If you need help thinking about supply, demand, and pricing, review this article on supply and demand. You want a realistic view of whether there is room for another costume rental business or whether you need a different angle, such as a niche theme or stronger focus on business clients.

Step 5: Choose Your Scale, Business Model, and Team

At this point, decide how large you want to start. A costume rental business can be a solo operation from a small space, or a larger store with many staff and a big inventory. Your decision affects every step that follows, from legal structure to funding.

A very small, local operation can sometimes begin as a sole proprietorship, with you doing most tasks and maybe using your savings or a small loan.

A larger operation with staff, a big lease, and investors usually needs a more formal structure and more planning. Think about what level of risk and responsibility you want right now.

Also be honest about your skills. You do not need to do everything yourself. You can learn many skills over time or hire professionals for accounting, legal work, design, or even inventory planning.

This business should work for you, not the other way around.

Step 6: Plan Your Location and Space

Your location should match your model and customers. A storefront that depends on walk-in traffic needs good visibility and convenient parking.

A studio that serves schools and theaters might work fine in a quieter area if it is easy to reach and safe.

Think about zoning and local rules before you sign a lease or plan a home-based showroom. Some areas limit customer visits, signage, and storage in residential spaces. Others have rules for commercial units, especially where textiles are stored.

For help thinking about what matters in a site, see this guide to choosing a business location. Use it as a checklist when you compare possible spaces.

Step 7: List Equipment, Software, and Setup Needs

Before you can estimate your costs, you need a clear list of what you must have to open. This list will vary based on your size and model, but the main categories stay similar.

It is better to list too much now and trim later than to forget key items.

Think about three areas: what the customer sees, what happens behind the scenes, and what you need at the desk or in the office. Also include software and tools for record keeping and online bookings. Your list becomes the basis for your budget and your shopping plan.

Use this section as a starting point, then adjust it for your own concept and local rules.

• Storage and display
  • Rolling garment racks suitable for heavy costumes.
  • Wall-mounted rails or gridwall panels with hooks.
  • Shelving for shoes, hats, props, and folded items.
  • Assorted hangers, including padded and wide-shoulder styles.
  • Clear storage bins or totes for accessories.
  • Label printer, tags, and barcode labels.
• Fitting and customer areas
  • Fitting rooms with doors or curtains and adequate space.
  • Full-length mirrors and extra mirrors in fitting rooms.
  • Stools or chairs for customers and helpers.
  • Shoe horns and disposable foot covers.
• Garment care and preparation
  • Professional clothes steamer.
  • Iron and ironing board.
  • Dress forms or mannequins for display and adjustments.
  • Basic sewing machine and serger.
  • Sewing tools: scissors, pins, needles, thread, zippers, buttons, elastic, measuring tapes.
  • Lint rollers, garment brushes, and stain-removal products suitable for delicate fabrics.
• Laundry and cleaning (if done in-house)
  • Washer and dryer sized for business use.
  • Laundry carts and hampers.
  • Laundry detergents and fabric treatments that match label directions.
  • Protective gloves and aprons when handling chemicals.
• Front desk and office
  • Counter or reception desk.
  • Computer, monitor, and printer.
  • Point-of-sale system with rental tracking features.
  • Card payment terminal and secure cash drawer.
  • Locked storage for contracts and customer records if kept on paper.
• Photography and catalog
  • Neutral photo backdrop.
  • Tripod and simple continuous lighting.
  • Camera or smartphone with good image quality.
• Facility and safety
  • Fire extinguishers and smoke detectors as required by local code.
  • First aid kit.
  • Non-slip mats in work areas.
  • Step stools or ladders for safe access to higher racks.
• Software to consider
  • Rental or inventory management software that tracks items, sizes, and return dates.
  • Accounting software for income, expenses, and tax records.
  • Scheduling or booking tools for appointments and group fittings.
  • Website platform or content management system for your online catalog.
  • Email marketing or customer relationship tools for reminders and updates.

Step 8: Estimate Your Startup Costs and Funding Needs

With your equipment list in hand, start gathering prices. Include rent, deposits, utilities, initial inventory, furniture, software subscriptions, and professional services such as legal or accounting work.

Do not forget some cash reserve for slow periods and unexpected expenses.

This step gives you a realistic sense of how much money you need to open and stay open long enough to build customers.

You might discover that your first concept is too large for your current budget. If that happens, consider starting smaller rather than dropping the idea.

You can use a structured resource such as this guide for estimating startup costs. It will help you think of items you might overlook and plan for both one-time and ongoing expenses.

Step 9: Choose a Business Name and Brand Basics

Your business name should be easy to say, easy to spell, and clear enough that customers know you rent costumes.

It should also be available for registration, for your website, and for social profiles. Take your time, because changing a name later can be expensive and confusing.

Check that no one else is using the name in your state and that you can register the domain.

You may also want matching names on major social platforms if you plan to market there. Think about how the name looks on a sign and on a business card.

For ideas and checks, see this guide on selecting a business name. When you settle on a name, you can start sketching your logo and overall look, even before you finalize all permits.

Step 10: Handle Legal Structure, Registration, and Licenses

Next, choose your legal structure. Many small owner-run businesses start as sole proprietorships by default. As the business grows or if you bring in partners or investors, you may consider forming a limited liability company for more protection and a clearer structure.

Registration steps can feel heavy, but you do not have to do them alone. You can ask a lawyer, accountant, or formation service for help. Your goal is not to become an expert in law but to make sure the business is properly set up.

A practical way to approach this is to review this guide on how to register a business, then contact the right offices:

• Check with your state’s Secretary of State or business registry to see how to form or register your entity and whether you need a “doing business as” filing.
• Visit the Internal Revenue Service website to apply for an Employer Identification Number if you need one.
• Contact your state department of revenue about sales tax on rentals and any state-level tax IDs.
• Ask your city or county about local business licenses, zoning rules, and a Certificate of Occupancy for your space.

Step 11: Arrange Insurance and Risk Protection

Costume rental involves customers on your premises, costumes used off-site, and assets stored in one place.

Insurance helps protect you from accidents, property damage, and some legal claims. Some coverage is optional but wise, while other policies can be required by law or by a landlord.

Common policies include general liability, property coverage for your inventory and equipment, and workers’ compensation if you have staff.

In some locations, workers’ compensation is mandatory once you reach a certain number of employees. Landlords often require proof of liability coverage before you move in.

To understand the basics, review this overview of business insurance. Then speak with a licensed agent who has experience with retail or rental businesses and can explain which options match your situation.

Step 12: Build Your Startup Team and Advisors

Even if you open as a solo owner, you do not need to face every issue on your own. A small circle of advisors can help you avoid costly problems and give you clearer options when you must make a tough choice. Think of them as part of your support system.

Your advisor group might include an accountant, a lawyer, an insurance agent, and perhaps a marketing or web specialist.

You might only see them a few times a year, but their guidance can be worth the cost. In many cases they will spot issues long before you do.

For ideas on how to set this up, see this article about building a team of professional advisors. It is easier to learn from the experience of others than to fix serious problems after they happen.

Step 13: Create Your Business Plan

A business plan does not have to impress anyone but you. It does not need fancy charts or perfect wording.

Its main job is to help you think clearly about how your costume rental business will work and how you will handle key points such as slow seasons and inventory choices.

Write down your concept, your target customers, your pricing, your startup costs, and your plan for marketing.

Include how you will respond if demand is lower than expected or if a main supplier suddenly changes their terms. The goal is to reduce surprises, not to predict every event.

To guide your writing, follow this practical resource on how to write a business plan. Even if you never show the plan to a lender, it will help you stay focused as you move through startup.

Step 14: Set Up Banking, Accounting, and Payment Systems

Open a separate business bank account once your entity and registrations are set.

Keeping business and personal money apart makes bookkeeping, tax filing, and financial tracking much easier. It also looks more professional to landlords, suppliers, and lenders.

Choose bookkeeping software that fits the size of your operation. You can handle basic entries yourself or ask a bookkeeper or accountant to set up your system.

The important part is tracking income, expenses, deposits, and taxes from the first day.

Set up payment systems so you can accept card payments and any other methods your customers expect. Think through how you will handle deposits, security holds, and refunds when costumes come back in good shape.

Step 15: Secure Funding for Your Startup

After you know your costs, decide how you will pay for them. Some owners use savings, help from family, or profits from another business. Others need a loan, a line of credit, or investors to cover build-out and inventory.

Each option has trade-offs. Using your own cash keeps control in your hands but can strain your household.

Loans add payment pressure but might let you open at a better location. Investors spread risk but require clear agreements and shared decision-making.

To understand borrowing options, review this guide on how to get a business loan. You can also ask your advisor team to help you compare options and choose what fits your risk level and time frame.

Step 16: Build Your Brand, Identity, and Website

Your brand is more than a logo. It is the overall experience customers have when they find you, visit your space, and rent from you.

The design of your sign, your business cards, your website, and your forms should all feel consistent and clear.

Start with simple, clean design choices that match your target market. A cosplay-focused shop might lean creative and bold. A store serving theaters and schools might use a more classic look. The goal is clarity, not complexity.

For the visual pieces, you can review resources about corporate identity, business cards, and business signs. When you are ready to go online, this article on how to build a business website can help you plan your site and catalog.

Step 17: Set Your Pricing and Rental Policies

Your prices must cover your costs, reflect the local market, and still make sense to your customers. Costumes that are hard to replace or that require special care should bring in more than simple pieces. Your policies also matter because they protect your stock and your cash flow.

Decide on rental periods, deposits, late fees, and damage charges. Think about how you will handle partial sets, lost accessories, and last-minute cancellations. Clear rules create fewer arguments and help your staff stay consistent once you grow.

To create a structure that fits your situation, study this guide to pricing your products and services. Use it to balance what customers are willing to pay with what you need to stay in business.

Step 18: Source Inventory and Suppliers

Now you are ready to select your first round of costumes and accessories. Start with the themes that fit your target market and local events. Focus on quality and durability. A slightly higher initial cost can be worth it if an item rents many times before it wears out.

Look for suppliers who allow rentals under their terms and who can provide consistent sizing and stock. You can also add selected items from closeout sources and second-hand finds if they are in excellent condition.

Always check for damage, stains, and missing parts before adding anything to your rental line.

Build strong working relationships with your main suppliers. Clear communication about lead times, backorders, and new lines will help you keep your collection fresh without overcommitting your cash.

Step 19: Prepare Your Physical Setup

With inventory on the way, set up your space so customers can move easily and staff can work safely.

Group costumes by theme, size, or event type so people can find what they need without digging through racks for too long. Leave enough room for people to pass each other without bumping into displays.

In the back areas, arrange your cleaning, repair, and storage zones for smooth flow. Dirty returns should not mix with clean, ready-to-rent stock. Keep chemicals in safe places, follow product labels, and meet local safety rules for fire and building codes.

If you have a storefront, think about how people will see you from the street. Use your sign and window displays to show you rent costumes, not just sell them. For more ideas, this article on getting customers through the door offers practical tips for brick-and-mortar businesses.

Step 20: Pre-Launch Testing and Soft Opening

Before your official opening, test your systems with a small group. Ask friends, family, or a few early customers to go through the full process: booking, fitting, pickup, return, and payment. Watch where people get confused or where your tools slow things down.

Use their feedback to adjust your layout, signs, forms, and wording in your policies. It is easier to make changes when traffic is still light. Check that your contracts, invoices, and payment methods all work smoothly.

When you are ready, plan a modest opening push. You might invite local schools, theaters, or event planners to a preview. If a larger event makes sense for your location, you can draw ideas from this guide on planning a grand opening.

Pros and Cons of a Costume Rental Business

It helps to look at both sides before you commit. Every business model brings opportunity and risk. Costume rental is no different.

On the positive side, the same costume can earn money many times over its life. You can serve a mix of families, schools, and organizations. You can also start compact and grow as demand builds, instead of taking on a large location from the beginning.

On the challenging side, demand can be highly seasonal. You may be extremely busy around certain holidays and much slower at other times.

Costumes wear out, get damaged, or go out of style. Cleaning and repairs take time and money. Understanding both sides now will help you plan instead of being caught off guard.

Skills That Help You Succeed

You do not need every skill on the first day, but certain abilities make this business easier to handle. You can learn many of them or bring in help for areas that are not your strength. The important part is to be honest about where you stand today.

Core skills include basic garment care, simple sewing, and the ability to match costumes to events and body types. You also need to stay organized, track inventory, and keep clear records of each rental.

Customer service skills matter because many people feel self-conscious during fittings.

Over time you will also benefit from skills in marketing, budgeting, and hiring. To think ahead about building a team, review this piece on how and when to hire. Remember, you can always train, delegate, or use outside services for work that does not fit you.

Red Flags to Watch Before You Commit

Some warning signs are worth paying attention to early. Ignoring them can lead to stress and money loss later. It is better to pause and rethink than to move ahead with a weak setup.

Be careful if zoning does not clearly allow your type of operation at the location you want. Also watch for situations where there is already heavy competition and little sign of unmet demand. If you cannot see a clear reason why customers would switch to you, consider a different angle or area.

Another red flag is a plan that depends on one busy season with no backup. Ask what happens if your first Halloween is slower than expected.

Also pause if you feel rushed into signing a lease, buying inventory, or borrowing money without a clear plan. When in doubt, review this guide on mistakes to avoid when starting a small business and adjust your course.

A Day in the Life of a Costume Rental Owner at Startup

It helps to picture a typical day once your doors open. This is not about perfection but about seeing whether the rhythm of the work fits your life. Think about your energy level, family needs, and other commitments.

In the morning, you might check bookings, pull costumes for pickups, and inspect returns from the prior evening. You would note any damage, start cleaning and steaming, and update your system. Early in the day is also a good time to handle supplier orders and bookkeeping.

Afternoons and evenings often bring more fittings and pickups, especially near weekends. You will help customers choose outfits, manage the counter, and put returned items back into rotation.

At closing, you might tidy the floor, finish cleaning tasks, answer messages, and plan for tomorrow. If that picture seems manageable and even appealing, you are closer to knowing this business could be a good match.

101 Tips to Run a Successful Costume Rental Business

These tips come from different parts of running a costume rental business and are meant to give you options.

Some will fit your situation right now, others may become useful as you grow.

Keep this list handy, start with one tip you can use today, and return for more as your needs change.

What to Do Before Starting

1. Write down why you want to run a costume rental business so you can see if you are moving toward a goal you care about instead of only trying to escape your current job.
2. Decide who you want as your main customers, such as families, schools, theaters, dance studios, or cosplay fans, because each group needs different stock and service levels.
3. Walk through your area and make a list of schools, theaters, event venues, and party supply shops to judge how much local demand there may be for rentals.
4. Visit other costume and formalwear rental shops as a regular customer to see their strengths, weaknesses, and gaps you could fill.
5. Choose a business model early, such as a walk-in store, appointment-only studio, home-based showroom, or online rental with shipping, so your later decisions fit together.
6. Estimate your startup costs by listing rent, utilities, inventory, fixtures, cleaning supplies, software, insurance, and professional help, then adjust your plan to what you can realistically support.
7. Decide how large you want to start and avoid ordering more inventory than you can store, clean, and manage well in your first season.
8. Check zoning and business license rules before signing a lease or using your home to make sure retail or customer visits are allowed at that location.
9. Speak with costume rental owners in other cities or states so you can ask what they would change if they were starting again today.
10. Decide whether you will operate alone, with a partner, or with investors, because this choice affects your legal structure, control, and profit sharing.
11. Assess your skills in sewing, garment care, customer service, marketing, and basic bookkeeping so you know what you must learn or outsource.
12. Identify an accountant, attorney, and insurance agent you can call on, even if you only need a few hours of help at first, to avoid expensive problems later.

What Successful Costume Rental Business Owners Do

13. Review which costumes rent often and which rarely leave the rack, then shift your buying budget toward themes and sizes that actually move.
14. Set a standard process for inspecting, cleaning, and repairing every costume after each rental so quality stays consistent.
15. Use a basic system to track customer details, rental history, and preferences so you can anticipate needs and suggest the right outfits next time.
16. Create a seasonal calendar that marks school plays, holidays, conventions, and local events so you can plan inventory and staffing around real peaks.
17. Commit to reinvesting part of your profit each year into fresh costumes, accessories, and upgrades to keep your selection current.
18. Build relationships with reliable suppliers who can handle rush orders and special sizes instead of jumping between vendors based only on price.
19. Train staff to understand costume themes, sizing, and fit so they can guide customers instead of just pointing at racks.
20. Use simple checklists for opening and closing tasks so key duties such as securing returns and backing up data are never skipped.
21. Keep rental terms, damage rules, and deposit policies written down in clear language so everyone on the team explains them the same way.
22. Set time regularly to review what is going well and what is not, then adjust your systems rather than waiting for problems to pile up.

Running the Business (Operations, Staffing, SOPs)

23. Write step-by-step procedures for checking costumes out and back in so every transaction follows the same flow and errors drop.
24. Give every costume and accessory a unique tag or barcode and use it consistently, even for small items, so you always know what is rented and what is on hand.
25. Keep clearly marked zones for clean and dirty items so returned costumes never mix with ready-to-rent stock.
26. Schedule regular inventory counts to catch missing pieces, damaged items, and sizing gaps before the next busy period.
27. Plan work hours so you have extra hands on evenings and weekends when most pickups and returns occur.
28. Cross-train staff to handle fittings, point-of-sale, basic repairs, and phone inquiries so you stay flexible when someone is absent.
29. Use an appointment system for complex fittings and group orders so you can give each client enough attention without overbooking.
30. Set up a repair station with thread, trims, closures, and tools close to your storage area so small fixes do not get delayed.
31. Create photo records that show every piece in a complete costume set so staff can quickly confirm that all parts are present at return.
32. Use clearly labeled shelves or racks for reserved costumes, grouped by pickup date, to reduce mix-ups and last-minute stress.
33. Define objective rules for when to retire a costume, such as unrepaired damage, heavy staining, or style that no longer rents, and follow them.
34. Keep a maintenance log for washers, dryers, steamers, and sewing machines so you know when equipment needs service.
35. Maintain a simple incident log for damages, late returns, and safety concerns so you can spot repeat patterns and address root causes.
36. Review your rental agreement at least once a year with professional input to make sure it fits your current services and risks.
37. Develop a short training guide for new staff that covers safety, customer handling, and key policies before they serve clients alone.
38. Keep at least one backup method for processing transactions, such as a manual receipt process, in case your software goes down.
39. Store sensitive customer records securely and restrict access so you protect privacy and meet basic data security expectations.
40. Consider outsourcing complex or regulated cleaning processes if your volume or local rules make in-house handling too costly or risky.

What to Know About the Industry (Rules, Seasons, Supply, Risks)

41. Know that formal wear and costume rental is classified under a specific industry code, which can help when you research statistics, insurance, and financing options.
42. Expect strong seasonality with peaks around Halloween, school productions, holidays, and local festivals, and plan your cash flow and staffing with that in mind.
43. Understand that in many states, rentals of physical goods are treated like sales for tax purposes and require you to collect and remit sales tax.
44. Recognize that costumes and props can pose safety risks, such as tripping, restricted vision, or flammability, and factor that into your selection and policies.
45. Realize that sharing costumes among customers increases the importance of clear cleaning and hygiene practices to protect both health and reputation.
46. Know that cleaning products and processes are regulated, especially when chemicals and ventilation are involved, and follow label and safety guidance carefully.
47. Understand that shipping rental items introduces risks such as lost packages and delayed deliveries, which you must cover with time buffers and clear terms.
48. Anticipate that trends in film, television, and games can quickly shift what customers ask for, and adjust your buying decisions accordingly.
49. Remember that storage space is a real cost, and crowded racks make operations slower, so treat square footage as part of your inventory planning.
50. Stay aware that liability claims can arise from accidents or allergic reactions linked to costumes, so you need informed policies and appropriate insurance.

Marketing (Local, Digital, Offers, Community)

51. Claim and regularly update your business information on major local search platforms so people can find your address, hours, and contact details easily.
52. Create a simple website that clearly explains what you rent, who you serve, and how the rental process works, even if you do not add online booking yet.
53. Use high-quality photos that show full costumes on people or mannequins from several angles so customers can imagine how they will look.
54. Highlight your main niches, such as school productions or cosplay, on all marketing materials so the right customers recognize your specialty.
55. Offer early-bird booking incentives for major seasons to spread out demand and lock in orders ahead of time.
56. Design in-store displays around current events, popular shows, or upcoming holidays so your space feels fresh and relevant.
57. Post behind-the-scenes content, such as repair work and restyling sessions, to show care and expertise without revealing private customer details.
58. Collect email addresses with permission and send seasonal reminders, fitting tips, and news about new arrivals to stay top of mind.
59. Build partnerships with event planners, photographers, and venues so they recommend your shop when their clients need costumes.
60. Offer group packages tailored to schools, community theaters, and dance studios to make rental planning easier for them.
61. Encourage satisfied clients to leave honest reviews on trusted platforms and thank them personally when they do.
62. Use simple tracking for your marketing efforts so you know which channels bring paying customers, not just social engagement.
63. Develop a referral program where returning customers receive a clear reward when someone they refer completes a rental.
64. Keep your branding consistent on business cards, hang tags, garment bags, and signage so your business looks organized and reliable.
65. Promote uses beyond parties, such as photo shoots, classroom projects, and promotional events, to create demand in slower months.
66. Attend or sponsor local events where people already think about costumes, such as conventions or themed fundraisers, to meet motivated customers face to face.

Dealing with Customers (Trust, Education, Retention)

67. Walk every new customer through the rental steps, from choosing a costume to returning it, so they feel guided rather than lost.
68. Explain deposits, late fees, and damage charges in plain language before the customer signs anything so there are no surprises later.
69. Teach customers how to handle costumes at home, such as how to hang them, what to avoid spilling on them, and when not to attempt home cleaning.
70. Offer clear options when you cannot meet a request, such as alternative sizes, different themes, or add-on pieces that still give the feel the customer wants.
71. Keep simple notes on repeat customers’ sizes, favorite themes, and past rentals to make future visits faster and more personal.
72. Respect comfort and privacy in fitting rooms, including adequate coverage, clear rules about who can enter, and prompt help when asked.
73. Show customers how to pack costumes for return so delicate pieces, hats, and accessories do not arrive tangled or crushed.
74. Send a short thank-you message after big rentals, especially for schools and production groups, to reinforce the relationship.
75. Create small perks for loyal customers, such as priority booking or occasional discounts, so they have a reason to come back to your shop.
76. Use everyday words when you talk about fabrics, alterations, and policies, and avoid technical jargon that may confuse first-time renters.

Customer Service (Policies, Guarantees, Feedback)

77. Keep your most important policies printed near the counter and on your website so customers can review them before and after they rent.
78. Train staff to listen fully to customer concerns before responding, which often reduces tension and leads to faster solutions.
79. Set guidelines for handling common issues, such as a costume not fitting as expected, and empower staff to use agreed options without calling a manager every time.
80. Give realistic time frames for alterations and special requests so you are not pressured into rushed work that leads to mistakes.
81. Invite customers to share feedback by asking a few targeted questions rather than a vague “How was everything?” so you get useful details.
82. Review feedback on a schedule and identify patterns that signal weak points in your operations, then adjust your processes accordingly.
83. Respond to negative reviews calmly and factually, showing that you take concerns seriously without arguing in public.
84. Keep your store clean, organized, and well lit so customers feel confident about the care you put into your costumes and your business.

Sustainability (Waste, Sourcing, Long-Term)

85. Choose costumes made from fabrics and construction methods that can handle repeated wear and cleaning so they stay rentable longer.
86. Set aside time to repair minor damage instead of throwing out pieces that can be saved with simple stitching or part replacement.
87. Use cleaning products and methods that balance hygiene with fabric care, following label instructions to avoid needless damage and replacement.
88. Repurpose damaged costumes into accessories, trim, or display items when possible so you get extra value from items that can no longer be rented as full outfits.
89. Track how many rentals each costume completes before retirement and use that information to guide future buying decisions toward longer-lasting options.

Staying Informed (Trends, Sources, Cadence)

90. Set a recurring monthly reminder to review trends in movies, streaming shows, games, and events so you can predict which themes may see rising demand.
91. Monitor official public health and cleaning guidance a few times a year so your cleaning practices for shared textiles remain current.
92. Review small business and industry statistics annually to compare your revenue, costs, and growth with typical figures for similar rental businesses.
93. Follow organizations and communities focused on costuming and performance so you see new ideas in materials, construction, and styling.

Adapting to Change (Seasonality, Shocks, Competition, Tech)

94. Build a cash reserve that can cover several months of fixed expenses so you can survive a slow season or unexpected event without panicking.
95. Test new services, such as shipping or subscription packages, on a small scale first so you can learn and adjust before rolling them out widely.
96. Be ready to update cleaning, fitting, and customer flow procedures quickly during public health events while still complying with official rules.
97. Watch how competitors change their offerings and think about how you can respond with better value, service, or specialization rather than only lower prices.

What Not to Do

98. Do not skip detailed inspection of returned costumes, because missing parts or unnoticed stains become much harder to fix right before the next rental.
99. Do not accept every donated costume or accessory, since low-quality items take up space and time that could be used for reliable, profitable pieces.
100. Do not depend on a single event season or one large client for most of your income, because losing that source can put your business at risk.
101. Do not sign leases, loan agreements, or supplier contracts that you do not fully understand; ask qualified professionals to explain the terms before you commit.

A costume rental business can be both creative and profitable when you treat it like a real operation instead of a hobby. Use these tips to build structure, protect your reputation, and make smarter decisions as you grow. Start with a few changes you can make this week, then return to the list whenever you are ready for the next step.

 

Sources: U.S. Small Business Administration, U.S. Census Bureau, OSHA, CDC, International Costumers’ Guild, American Cleaning Institute, A Touch of Business, Internal Revenue Service, NAICS, EPA