If you’re like most people, you probably spend at least some time each week looking for ways to make money. You might have heard about event rentals and thought, “That sounds like a great idea!” But before you start booking events, you need to know a few things. Event rentals can be a great way to make money, but there are a few key things you need to think about in order to get started correctly.
Types of Party Rental Businesses
We realize that some motivation would be useful before we discuss how to launch a party rental business or an event rental business. For every occasion and need, there are as many party rental business niches as there are. Some examples of these are:
Event production and planning firms
While the planning and design aspect of the business may be the main focus, renting out equipment can be a reliable secondary source of income.
There are various kinds of event production companies, some of which concentrate on private parties and others on corporate events. In either case, if you have had trouble locating equipment suppliers who can meet your needs, something could be about to happen. There are probably more people who have experienced the same difficulties.
So why not diversify into the rental industry?
Rental companies for weddings
Most people view a romantic couple’s wedding as the most significant event in their lives. It should therefore come as no surprise that they require assistance in making everything happen. Don’t be too sentimental, though; new business owners constantly try to break into this market because it is very profitable.
You don’t necessarily need to have access to thousands of chairs and tables to work in the wedding rental business. Providing various decorations, such as boho decor, lighting, dried flowers, table centerpieces, and other items that might seem pointless to purchase for a single occasion, could be as easy as that.
By doing a little research on the most well-liked wedding styles and locations, you can quickly start growing your business from there.
Rental of AV equipment
You can start yet another lucrative rental business. People will always need your services as long as there are events, which is a benefit of this line of work. Local event planners and individuals prefer to rent rather than buy AV equipment because it is so expensive and only occasionally necessary.
Once more, this is one of those professions where having the most advanced camera technology or the largest sound system isn’t a requirement; you can start small by providing more modest speakers, mic setups, and smoke machines and work your way up.
If you already own a lot of these items—whether as a result of your hobbies or something else entirely—this is also an excellent business model. Therefore, you can simply rent out your equipment when you’re not using it to make sure you’re getting the most out of your investment.
Business renting out kitchen appliances
It isn’t a party without any food, right? With this particular business, it’s important to remember that less is more. Instead of purchasing every piece of kitchenware and appliance, only purchase the necessities that the majority of your customers request. If not, you run the risk of stockpiling useless items.
These are merely a few of the various party rental business varieties. Other ones that have recently grown in popularity:
- event locations
- catering businesses
- photo booth services
- Services for glamping and renting tents
- seasonal rentals for events (e.g., Christmas decorum)
- rental services for birthday decorations
- rentals for kids parties (e.g., bouncy castles)
How to Start Your Own Event Rental Business.
- First, research your market.
The first step in starting a party rental business is to research your market. Market research is the term for this stage.
The process of gathering data on your target market and audience in order to comprehend their needs and wants is known as market research.
You can gain knowledge about your competitors’ strategies, business practices, and products and prices by researching your market.
Utilizing this knowledge, you can structure your goods and services in a way that adds value for your target market and gives your party rental company a competitive edge.
When conducting market research, you can use the following questions:
- Who are the present clients?
- What is their capacity to pay?
- What kinds of goods or services do they require?
- Where do these clients search for answers?
- What choices are there right now?
- What unique contribution can you make?
- What difficulties do customers encounter?
- What are the market’s current challenges?
- What percentage of people would be drawn to your offer?
- What alternatives are accessible right now?
- How much do prospective clients pay for these alternatives?
step two: Write your business plan
The next step in starting a party rental business is to begin organizing your ideas in a business plan after researching your market and identifying potential business ventures.
A business plan is a written document that lists the goals for your company and the tactics you’ll use to get there.
Your business plan should contain the following:
- the results of your market research
- your target market, your go-to-market plan, your initial investment, and your financial expectations
- Your company’s mission and purpose
Writing a business plan is a crucial step in starting a party rental company because it forces you to think about and research crucial business factors that you might have overlooked in the past.
A good business plan is never finished, so keep that in mind. You’ll start making changes as your company expands. A business plan should always be reviewed and updated as circumstances change or at least once a year to consider your objectives for the coming year.
You can strategize, stay current in your market, and plan for what needs to be done to get the results you want by updating your business plan.
Step 3: Apply for business permits and licenses
You must have the appropriate licenses and permits for the nation or state you are operating in when starting a business. If you don’t, you risk paying hefty fines or even having your business shut down.
Business owners should check the local requirements of their country or state to ensure that they are in compliance with the laws and regulations that apply there, even though most countries do not typically require licenses specifically for businesses that rent out party supplies.
Step 4: Invest in the appropriate tools.
You should take the time to ask customers what kinds of party rental equipment they typically look for when buying equipment for your party rental business.
By doing this, you’ll start to notice patterns developing that point to commodities like:
- folding chairs
- Party tents and portable chairs
But you’ll also find unusual things like:
- systems for lighting, photos, boots, bounce houses, or food displays
Since buying equipment is probably one of your biggest investments, you want to be careful to avoid idle inventory and starting out too expensively. Later, purchasing additional equipment is more affordable and simple than getting rid of extra, unnecessary equipment.
As a result, you shouldn’t buy all the equipment they list when you start your business; instead, you should make a list of the equipment you must buy first and a list of the equipment that can be rented out.
You will be able to meet more of a customer’s needs in one sitting if you have both your own inventory and a list of equipment that you can sublet.
And if they can get everything they require from a single vendor rather than relying on three or four different businesses, they’re more likely to choose that route.
Step 5: Put a pricing strategy into action
Your research in steps 1 and 2 will have provided you with information on:
- how much you need to charge to break even or be profitable, what your competitors are charging, and what your potential customers are willing to pay.
Pricing your services can be challenging, but you can use what your rivals charge as a guide.
It’s important to keep in mind that if you set your prices too low, it will be more difficult for your business to turn a profit and it may discourage potential clients from renting from you because they may assume there is a catch or that there is a problem with your offerings.
Of course, you will lose out on important sales if you set your prices too high.
Numerous pricing models and techniques exist that can aid in your understanding of how to choose the appropriate prices for your target market and financial objectives.
Here are some examples of pricing strategies you might want to use:
- Cost-Plus Margin: A pricing strategy in which a profit margin is added to the costs of the service to determine the selling price.
- Demand-Based Pricing: With this pricing strategy, pricing is based on changes in consumer demand.
- Pricing that is based on the prices set by your competitors is known as competition-based pricing.
- Price bundling: A group of products are priced together and are not rented out separately.
Step 6: Obtain coverage
Business insurance is a requirement for safe and legal operation, just like business licenses and permits.
Buying and renting both indoor and outdoor equipment, such as lights, speakers, or tents, is required to operate a party rental business. You should insure them in case an accident occurs because you have invested money in them and your business depends on them.
Additionally, you want to ensure that you are covered in the event that someone is hurt or injured while utilizing your equipment; liability insurance typically provides this protection.
In some locations, having liability insurance is a requirement for party rental businesses, and in some cases, doing so is against the law. For more information on whether this applies to you, check your local laws.
Step 7: Monitor your clients, orders, and deadlines
Strong organizational abilities are necessary for running a party rental company. If you want to successfully plan events, you must accurately keep track of your projects and resources because your industry has many moving parts and strict deadlines.
Use a specialized rental management tool, such as Rentman, to keep track of your customers, orders, and inventory availability on a single platform whether you are organizing weddings, parties, or corporate events.
Rentman will help you run your party rental business more effectively, save you time when organizing events, and give your financial documents a more polished appearance.
By adding images, unique text, and your company branding to your own templates using Rentman’s built-in template editor, you can easily brand your quotes.
Additionally, you can integrate Rentman with Stripe, WooCommerce, and Mollie to accept online payments and display your products in an online store.
Step 8: Spend money on marketing.
Even learning how to market a party rental business can be challenging. However, one of the first things you should think about doing when starting your business is investing in marketing.
In the beginning of your business, you need to familiarize potential customers with your brand and persuade them to choose you over your rivals. Marketing helps you build brand awareness and credibility.
As a result, your turnover, pricing, promotions, and advertising strategies will be impacted by your marketing efforts.
Here are some examples of marketing strategies you can employ to increase brand recognition:
- networking with regional companies (event planners, venues, etc.)
- promoting your company on television, radio, and in appropriate business magazines
- social media marketing (YouTube ads, Facebook ads, etc.)
- search engine marketing, using CPC advertisements on other websites or the result pages of Google and Bing (cost per click)
- the process of making and maintaining a “Google My Business” listing
Step 9: Track your development
You inevitably become more focused on your work when you track your progress.
Additionally, you can more clearly see the value you’re adding to your company and demonstrate to your team what you’ve accomplished.
You can use Rentman to build a personal dashboard to track your progress and use your data to help you make better choices:
- Find out which equipment is most profitable, what to buy next, where you lose money, and much more.
Step 10: Build your team
Developing your team is the last step.
Starting a party rental company requires you to take a big step: hiring your first employees. With more personnel, you can delegate work to team members and focus your attention on tasks with a higher priority.
However, you should be aware that adding more staff comes with a whole new set of legal responsibilities, liabilities, costs, and, of course, paperwork before you hire just anyone.
Your needs will determine how many employees you decide to hire in the early stages of your business. But as your company expands, you’ll need at least a few staff members to handle customer service, take and prepare orders, deliver and pick up equipment, and so on.
The following are a few examples of the kinds of workers you can hire when opening a party rental company:
- crew members who deliver
- technicians, sales/marketing experts, and bookkeepers
Tips for Start Your Own Event Rental Business.
When choosing an event rental venue, it’s important to consider the cost of rent, security, and other amenities. also make sure the property is available for events and that there are no any special restrictions on who can rent it.
research the Event Rental Industry
Many businesses that provide event rental services rely on online resources or databases to find events and venues. This can be a helpful way to save time and money by checking out venues before planning your event. Additionally, using social media platforms (Facebook, Twitter, etc.) and search engines (Yahoo! or Google) can help you identify potential event rentals in your area.
plan the Event
Once you have selected an event rental venue and researched the industry, it’s time to start planning yourEvent! This includes creating a table of contents for your website or blog with information about what type of events you want to offer, setting up dates and times for your event, registering guests, and more!
manage the Event
Although managing an event is typically done by an individual or small team, it can be effective to have a manager in charge who will be responsible for keeping all aspects of the business running smoothly. This person should have strong communication skills as well as experience in managing large groups of people.
achieve success in Event Rental
Many people who start their own event rental businesses achieve success by learning from their failures. If you have any questions or concerns about your business, don’t hesitate to reach out to your team or ask for help. This way, you can move forward smoothly and confidently with your new venture.
Starting your own Event Rental business can be a great way to make money and boost sales. However, it’s important to take some time to research the Event Rentals Industry and confirm the event rental venue. Additionally, it’s important to plan the event well in advance so that you can ensure a successful launch. By following these tips, you can create an event that is both profitable and enjoyable for all involved.