Starting your own party rental business is a big step that can be life-changing. Therefore, you want to ensure you’re on the right track and learn as much about the industry as possible before taking the first step.
This post will go over the steps needed to start your party rental business, followed by a collection of resources that can help you during the startup phase and when your business is open to the public.
Let’s get started with the steps.
Steps to Starting a Party Rental Business
1. Make Sure Running a Business Is Right For You
Owning and operating a business is not for everyone. Many people are used to an eight-hour shift, and in business, this is rare business owners are always working even after hours. They are thinking and preparing most of the time; sometimes, that’s what it takes to become successful. Understanding what it takes to run a business will help ensure you’re on the right track.
Another important point about running a business is that you want to get into something you are interested in. If you have no interest, you won’t “give it your all,” If a problem arises, you’ll look for ways to quit instead of finding solutions.
For more, see Business Startup Considerations.
2. Research
Business Research
Researching party rental businesses it’s something you should do before you get started. Speaking with people already in the industry is the best advice you can get. How do you contact these people, and will they talk to you?
There are ways to approach this concept, and I have a separate article that I suggest you look into before taking any steps to start your own party rental business.
See An Inside Look Into the Business You Want To Start for more.
Target Audience
Understanding your target audience before starting your business helps you set up your business with your target customers in mind.
When it comes time to advertise your service, you will create better campaigns when you understand your audience.
For more, see, How To Understand Your Target Market.
3. Startup Considerations
You need to have a vision of what your business will be like once your doors are open. Of course, as you are learning more about the industry, your vision may change, and that’s normal, but you start with one vision for now.
For example, will you specialize in; tents, tables, and chair rentals, or will you be supplying giant inflatables for children’s parties?
You can start off small and expand as demand increases. However, you don’t want to start off with everything under the sun until you can get established and find out what’s in demand.
With this type of business, you could offer a free setup, especially if you rent large tents, because of liability and ensure your products aren’t damaged during the setup and removal process.
One very important aspect of this business is being on time. This may seem obvious, but imagine someone having a party and your 3 hours late because of a breakdown. Or you didn’t show up the day you were supposed to because your installer didn’t show up. Deadlines are important. Miss one, and you have tarnished your reputation.
This is a fairly low-cost operation to run once you have purchased your inventory to rent out and vehicles for transporting rentals to your customers. Then, you can expand as the demand grows. For example, you can get into booths for trade shows, themed party rentals, etc.
4. Choosing The Right Business Location
With any business opportunity you’re considering, you need to find out what the market is like in the area you’re planning to open. If there is no demand, opening in that area is no use.
If the market is saturated, you’ll need to bring something to the market to help you compete. One point about market saturation is everyone may compete on price. If the price becomes too low, there won’t be any profit left to run a successful business.
For more, see Choosing The Best Location for Your Business.
5. Choose a Business Name
The name you select for your party rental business is the name you’ll probably have for as long as you own it; therefore, you want to spend some time on the step to ensure you have a name you’ll be happy with years from now.
So, naturally, you want a memorable, appropriate name available for registration. You will also want to ensure you find a matching domain name for your website.
See the following links for more on business names.
6. Business Registration
Becoming a legal entity is an essential step to starting your business. There are different structures to choose from, and your situation and the size of your business will determine what type of structure you should choose.
I suggest you become familiar with the different structures available and speak with a professional, such as your accountant and a lawyer, to ensure you properly set up your business.
See, How to Register Your Business for all the details.
7. Create Your Corporate ID
A corporate ID consists of a logo, your business, sign, business cards, stationary, promotional items, website, brochures, etc.
One of the most important points about a corporate ID is that it must be created by a professional graphic designer because you want to impress customers.
When starting out, you don’t need all of the components of a corporate ID. Instead, you can create your logo, business cards, and business sign along with your website and add other components as needed.
See A Complete Introduction to Corporate Identity Packages for more.
8. Estimating Your Startup Cost
To start listing everything, you need to open your doors to the public. Then, other issues will appear when researching the costs, and you can add them to your list.
In addition, you need to estimate your operating costs for at least three months because revenues may be low during the early stages of operation, but the bills still need to be paid.
For more, see, Estimating Start-up Costs: Are you Missing Anything? Also, see, Business Expenses To Consider.
9. Writing a Business Plan
You’ll need a business plan when you apply for a startup loan and if you plan to attract investors.
There are options to create a business plan, such as creating one from scratch, hiring a professional, using a template, or using software.
Your business plan is a document that will help keep you on track. It should be reviewed every few months, and make adjustments to the plan or your business.
For details, see How to Write a Business Plan.
10. Set up Your Banking
You’ll need to choose a bank, set up a checking account, and apply for a merchant account that will allow you to accept credit card payments from your customers.
One key point about setting up your banking is to find a banker you can build a strong professional relationship. Your banker can help you when you are in a financial pinch.
Your banker can provide financial advice, help with loan applications, and help you get a merchant account.
For more, see, How to Open a Business Bank Account and What Is a Merchant Account, and How to Get One.
11. Get the Funding for Your Operation
Now it’s time to make copies of your business plan and meet with lenders to get the funds you need to open and operate your party rental business.
You need to be prepared before you apply for a business loan. Since banks view startup loans as high-risk, you need to show your lender you are skilled to run a business successfully, have a plan, and have the collateral to cover the loan in case something goes wrong.
For ideas, see our article, Getting a Small Business Loan.
12. Software Setup
You’ll need software to help you run your business. For example, you may need a program to help you schedule rentals and a program for bookkeeping. You can also consider productivity applications, etc.
Take some time to research and see what applications appeal to you.
13. Get The Right Business Insurance
It’s imperative to have sufficient coverage in case of any incident on your premises or customer’s location.
You want sufficient insurance to protect your customers, employees, and property. Speak with an experienced insurance broker to help you choose the right coverage.
For more on business insurance, see What to Know About Business Insurance.
14. Choose Suppliers
The right supplier is a key factor in smooth operations. Take some time to choose the right supplier and work on building a professional relationship.
For points to consider, see our article, How To Choose a Supplier, for tips and insights.
15. Physical Setup
You will want to focus on the physical setup of your business. For example, your storage area must be clean and organized and have sufficient space to store your rental equipment without damage.
If you plan on a showroom, the appearance of a well-decorated one will help build confidence.
Office Setup
Your office is where you’ll be spending time managing your business. So naturally, you want it set up in a way that’s comfortable, appealing to you, and fully equipped.
See, Here are Considerations for The Setup of Your Office for the details.
Company Sign Considerations
Your company sign is your invitation for people to do business with you.
Your company sign is the first thing people will see when entering your place of business. Therefore, you want to ensure your sign is legible, appealing, and includes your logo.
Although there are many considerations when creating an appropriate business sign, see the link below for more information and ideas you can use for your sign.
For more, see, All About Company Signs.
16. Creating a Website
Your website is a marketing tool, your main online property, and a tool you can use to convey information to your customers.
To ensure you have complete control over your website, you’ll want to register a domain name and sign up for web hosting.
For more, see our page on How to Build a Website.
17. Create an External Support Team
A support team is a group of people not on your payroll, but you use their services and advice.
The professionals in your support team may include a lawyer, an accountant, various consultants, an IT specialist, a marketing expert, a banker, etc.
It takes time to create your team, and you don’t have to build a complete team before using it. However, building it may take a few months or years, and that’s okay. You want to ensure you have the right people you can depend on for advice or if you plan to expand your business.
For more, see, Building a Team of Professional Advisors.
18. Hiring Employees
During the early stages of operation, you may be planning to manage and operate your business as a one-person operation. That’s a smart move because you want to keep your expenses as low as possible, especially during the startup phase. However, once your business becomes busier, you may need to hire employees to keep up with demand.
Make sure you only hire for those positions needed. As a business owner, you never want to be overstaffed because payroll is a large expense.
When looking to fill a position, you want to ensure you choose the right candidate. You don’t want to just choose the first person that comes along to have filled the position.
For more, see, How and When to Hire a New Employee.