party rental business plan pdf

Party Rental Business Plan Template

Written by Dave Lavinsky

Party Rental Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their party rental companies. 

If you’re unfamiliar with creating a party rental business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a party rental business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Party Rental Business Plan?

A business plan provides a snapshot of your party rental business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Party Rental Business

If you’re looking to start a party rental business or grow your existing party rental company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your party rental business to improve your chances of success. Your party rental business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Party Rental Businesses

With regards to funding, the main sources of funding for a party rental business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan (hand it to them in person or email to them as a PDF file) and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for party rental companies.

Finish Your Business Plan Today!

How to write a business plan for a party rental business.

If you want to start a party rental business or expand your current one, you need a business plan. The guide and sample below details the necessary information for how to write each essential component of your party rental business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of party rental business you are running and the status. For example, are you a startup, do you have a party rental business that you would like to grow, or are you operating a chain of party rental businesses?

Next, provide an overview of each of the subsequent sections of your plan. 

• Give a brief overv iew of the party rental industry. 
• Discuss the type of party rental business you are operating. 
• Detail your direct competitors. Give an overview of your target customers. 
• Provide a snapshot of your marketing strategy. Identify the key members of your team. 
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of party rental business you are operating.

For example, you m ight specialize in one of the following types of party rental businesses:

• Full-service party rental retail store : This is the store to visit when you need everything from A to Z for your next party. Whether it’s chairs and tables, linens, or special cooking equipment, this store delivers your items and picks them up after your party.
• Partial-service party rental store : You may choose everything you need for your party at this type of party rental store; however, you will need to provide transport to pick up and return all party rental items the next day. 
• Online party rental business: An online party rental store generally has excellent pricing; however, you will need to go to various locations to pick up and return party items. This may involve visiting more than one location for various items, as the online store doesn’t have a brick and mortar store location. 

In addition to explaining the type of party rental business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of rentals serviced, the number of positive social media reviews, reaching X number of customers served, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the party rental industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the party rental industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your party rental business plan:

• How big is the party rental industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your party rental business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your party rental business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, families, party groups and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of party rental business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers. Ideally you can speak with a sample of your target customers before writing your plan to better understand their needs.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are othe r party rental businesses. 

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes stores that sell tables, chairs, linens, etc., online stores that sell party items, and DIY services for parties. You need to mention direct competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of party rental business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide options for delivery and pick up of party supplies?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a party rental business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type o f party rental company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide a petting zoo experience, a holiday-themed party setup and take down, or a casino or bingo fundraiser setup and take down?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your party rental company. Document where your company is situated and mention how the site will impact your success. For example, is your party rental business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your party rental marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites 
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your party rental business, including answering calls, planning and providing rental equipment, linens, furnishings, etc.  

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth party rental delivery, or when you hope to reach $X in revenue. It could also be when you expect to expand your party rental business to a second location.

Management Team

To demonstrate your party rental business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally, you and/or your team members have direct experience in managing party rental businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a party rental business or successfully working in an equipment rental store.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance s heet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you see 25 customers per week, and/or offer large-group rental discounts ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your party rental business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a party rental business:

• Cost of rental furnishings, linens and equipment
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of contracted parties booked six months ahead. 

Writing a business plan for your party rental business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert and know everything you need about how to start a party rental business. You will understand the party rental industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful party rental business.

Party Rental Business Plan FAQs

What is the easiest way to complete my party rental business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your party rental business plan.

How Do You Start a Party Rental Business?

Starting a party rental business is easy with these 14 steps:

• Choose the Name for Your Party Rental Business
• Create Your Party Rental Business Plan
• Choose the Legal Structure for Your Party Rental Business
• Secure Startup Funding for Your Party Rental Business (If Needed)
• Secure a Location for Your Business
• Register Your Party Rental Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Party Rental Business
• Buy or Lease the Right Party Rental Business Equipment
• Develop Your Party Rental Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Party Rental Business
• Open for Business

Where Can I Download a Free Business Plan Template PDF?

Click here to download the pdf version of our basic business plan template.

Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.

We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.

Don’t you wish there was a faster, easier way to finish your Party Rental business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how a Growthink business planning advisor can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Party Rental Business Plan Template

Written by Dave Lavinsky

Party Rental Business Plan

You’ve come to the right place to create your Party Rental business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Party Rental businesses.

Below is a template to help you create each section of your Party Rental business plan.

Executive Summary

Business overview.

Sonny’s Party Rentals is a full-service party rental company located in Portland, Oregon. We provide everything our customers need to turn their dream party or event into a reality, including furniture, linens, decorations, and other supplies. Customers planning weddings, graduations, corporate events, or other gatherings can find every item they need to make their event a success. With our excellent service, fast delivery and setup, and quality supplies, we are bound to become the largest party rental business in the Pacific Northwest in the next several years.

Sonny’s Party Rentals is founded by Sonny Monti, who has been the manager of an event planning company for several decades. As such, he is familiar with the stress that customers experience while planning an event, as well as what it takes to make those events a success. His management experience, expertise, and education will be invaluable to our company.

Product Offering

Sonny’s Party Rentals will sell everything needed to create a perfect party or event. This includes furniture, linens, dishes, decorations, and lighting. All of our products will be made with premium quality materials and be given a modern and elegant design to ensure that every party or event is given a luxurious feel.

Customer Focus

Sonny’s Party Rentals will serve individuals and businesses in the Portland, Oregon area that are planning a major event. These events will include weddings, graduations, house parties, and corporate events. Since these events are often expensive, we expect most of our clientele will be upper-middle class or affluent.

Management Team

Sonny’s Party Rentals is founded by Sonny Monti. Sonny has worked in the event planning industry for several decades. As such, he understands what our customers need to create the perfect party or event. His skills and expertise will help us serve our customers better than the competition, and his experience as a manager at a large company will help guide our business to success.

Success Factors

Sonny’s Party Rentals is primed for success by offering the following competitive advantages:

• There are very few party rental companies in the region, which means we will have little competition.
• Sonny has experience working in the event planning industry as well as running the operations of a large business.
• All of our items will be made with an appealing, modern, and elegant design that will turn any event into a luxurious experience. This will make our products more enticing and appealing than the competition’s.

Financial Highlights

Sonny’s Party Rentals is currently seeking $700,000 to launch. The funding will be dedicated to the office build-out, purchase of initial inventory and supplies, working capital, marketing costs, and startup overhead expenses. The breakout of the funding is below:

• Facility design/build: $100,000
• Initial equipment and supplies: $300,000
• Three months of overhead expenses (payroll, rent, utilities): $100,000
• Marketing costs: $100,000
• Working capital: $100,000

The following graph below outlines the pro forma financial projections for Sonny’s Party Rentals.

Company Overview

Who is sonny’s party rentals.

Sonny’s Party Rentals is a party rental business located in Portland, Oregon. We provide an extensive list of party supplies, including furniture, structures, linens, decorations, and lighting. We aim the be the #1 party supply store in the Pacific Northwest for those who are planning weddings, parties, corporate events, or similar gatherings. Though we are located in Portland, we expect much of our clientele will live outside the city, so we expect to be a major supplier for the entire region.

  Sonny’s Party Rentals is founded by Sonny Monti. Sonny has been the manager of an event planning company for several decades. As such, he is familiar with the stress that customers experience while planning an event, as well as what it takes to make those events a success. His management experience, expertise, and education will be invaluable to our company.

Sonny’s Party Rentals History

Sonny Monti incorporated Sonny’s Party Rentals as an S-Corporation on April 1st, 2023. The business is currently being run out of Sonny’s home, but once the lease for Sonny’s Party Rentals’ retail location is finalized, all operations will be run from there.

Since its incorporation, Sonny’s Party Rentals has achieved the following milestones:

• Found an office space and signed a Letter of Intent to purchase it
• Developed the company’s name, logo, and website
• Determined equipment and inventory requirements
• Begun recruiting key employees

Sonny’s Party Rentals Services

Sonny’s Party Rentals will provide everything our customers need to make their event successful. This will include, but is not limited to, the following:

• Decorations

We will deliver all the supplies before the event and set everything up. Once the event has finished, we will promptly come by to clean and take down everything.

Industry Analysis

According to Business Wire, the party supply rental industry is currently valued at $2,131 million USD and is expected to grow at a CAGR of 14.55% from now until 2027. This shows that the industry is in high demand and that many people around the country require our services to make their party a success.

There are two major factors affecting this growth. The first is the rise in disposable income. As more people have disposable income to spend on parties and other enjoyable experiences, there will be a rise in how many people plan extravagant weddings, parties, and other events. As such, companies like Sonny’s Party Rentals will be in higher demand.

The second factor affecting this growth is the end of the pandemic. For several years, group gatherings were unsafe, so few people were planning large parties and events. Now that the pandemic is over, people are taking full advantage of being able to enjoy time with their loved ones again. As such, we are seeing a dramatic rise in large weddings and parties.

Customer Analysis

Demographic profile of target market, customer segmentation.

Sonny’s Party Rentals will primarily target customers who are planning the following events:

• Corporate events

Competitive Analysis

Direct and indirect competitors.

Sonny’s Party Rentals will face competition from other companies with similar business profiles. A description of each competitor company is below.

Rick’s Party Rentals

For nearly a decade, Rick’s Party Rentals has been a popular source of party supplies and furniture for the residents of the Pacific Northwest. They have an extensive selection of party supplies for their customers, including tents, furniture, dishware, and decorations.

Rick’s is the perfect place for those who want to create a full party experience without worrying about the cost. Their rentals are moderately priced, which makes Rick’s rentals very popular in the area. However, the low costs result in lower-quality products. Those who require premium and elegant supplies for their party will be more inclined to rent with Sonny’s Party Rentals.

The Party Warehouse

The Party Warehouse has been a major supplier for local parties and events for decades. Every item that a person could want for their special event is sold at The Party Warehouse. This includes tents, tables, chairs, linens, lighting, dishes, and more.

While The Party Warehouse has a very successful business model, their items are mass produced so they do not have the same quality as the items that Sonny’s will offer. As such, many people who want everything to be perfect for their event will prefer to rent from Sonny’s.

The Wedding Store

Established in 2015, The Wedding Store has been one of the most popular businesses in the region to rent wedding furniture and supplies. The Wedding Store is a wholly online store that rents out wedding furniture, decorations, and other supplies to make every wedding a dream come true.

Though The Wedding Store will continue to thrive, the store is completely online, so customers cannot see their items in person until they are delivered. Many customers want to actually see the furniture and decorations before deciding which items to rent. Furthermore, The Wedding Store only supplies rentals for weddings. As such, they will only be a minor competitor since Sonny’s caters to all special events.

Competitive Advantage

Sonny’s Party Rentals will be able to offer the following advantages over their competition:

• Management : Sonny’s Party Rentals’ management team has years of industry and marketing experience that allows the company to market to and serve customers in a much more sophisticated manner than competitors.
• Customer service : Sonny’s Party Rentals exhibits a strong dedication to perfect customer service every step of the way. From the first time a customer visits our site to the day their rental equipment arrives, they will receive the best customer service that can be found in the industry.
• Quality : All of our items are made with the highest quality materials and designed with elegance in mind. As such, our products will turn any event into an elegant and luxurious affair.

Marketing Plan

Brand & value proposition.

Sonny’s Party Rentals will offer a unique value proposition to its clientele:

• Luxurious party rental supplies
• Excellent customer service
• Quick delivery, set up, and take down services
• Friendly and professional staff

Promotions Strategy

The promotions strategy for Sonny’s Party Rentals is as follows:

Social Media Marketing

The company will have several social media accounts and invest in ads on all social media platforms. These accounts will showcase pictures of the products we sell. The company will use targeted marketing to appeal to our target demographics.

SEO Website Marketing

Sonny’s Party Rentals will invest funds into maintaining a strong SEO presence on search engines like Google and Bing. When a person types in “local party rental companies” or “Portland party rental companies,” Sonny’s Party Rentals will appear in the top three choices.

Advertisement

Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. Sonny’s Party Rentals will advertise its products in popular magazines and journals.

Ongoing Customer Communications

Sonny’s Party Rentals will publish a monthly email newsletter to tell customers about promotions, events, and discounts.

The pricing of Sonny’s Party Rentals will reflect the premium quality of our party rental equipment but still be on par with our competitors’ prices.

Operations Plan

Sonny’s Party Rentals will utilize the following operations plan. Operation Functions:

• Sonny will be the Owner of Sonny’s Party Rentals and will run the general operations of the company. He will spend the next year hiring the following employees to help him run the business:
• An Accountant who will manage all client invoicing, billing, and payables.
• A Marketing Assistant who will run all the marketing and promotions campaigns.
• Several associates who will deliver party equipment as well as set it up and take it down.

Milestones:

Sonny’s Party Rentals will have the following milestones completed in the next six months:

• 5/1/202X – Finalize lease agreement for facility space
• 6/1/202X – Office build-out
• 7/1/202X – Hire and train essential staff
• 8/1/202X – Begin marketing campaign
• 9/1/202X – Launch Sonny’s Party Rentals
• 10/1/202X – Reach break even

Sonny’s Party Rentals is founded by Sonny Monti. Sonny has worked in the event planning industry for several decades. He understands what our customers need to create the perfect party or event. His skills and expertise will help us serve our customers better than the competition, as he will know exactly what to recommend based on the customer’s event and budget.

Sonny also has considerable experience as a senior manager for a major event planning company. Though he has never run his own business, Sonny’s experience as a senior manager has given him an in-depth knowledge of the operations and management sides of running a business. He will also hire several employees to help him run the aspects of the business he is unfamiliar with.

Financial Plan

Key revenue & costs.

The revenue drivers for Sonny’s Party Rentals will come from the fees we charge for renting out our furniture and supplies.

The cost drivers for Sonny’s Party Rentals will include the overhead costs, salaries, cost of supplies, and marketing expenses.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Number of monthly customers: 15
• Annual lease: $100,000
• Monthly expenses: $10,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Party Rental Business Plan FAQs

What is a party rental business plan.

A party rental business plan is a plan to start and/or grow your party rental business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Party Rental business plan using our Party Rental Business Plan Template here .

What are the Main Types of Party Rental Businesses? 

There are a number of different kinds of party rental businesses , some examples include: Full-service party rental retail store, Partial-service party rental store, and Online party rental business.

How Do You Get Funding for Your Party Rental Business Plan?

Party Rental businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Party Rental Business?

Starting a party rental business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Party Rental Business Plan - The first step in starting a business is to create a detailed party rental business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your party rental business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your party rental business is in compliance with local laws.

3. Register Your Party Rental Business - Once you have chosen a legal structure, the next step is to register your party rental business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your party rental business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Party Rental Equipment & Supplies - In order to start your party rental business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your party rental business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Party Rental Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Entertainment Industry » Party Rental Business

Are you about starting a party rental company? If YES, here is a complete sample party rental business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a party rental business . We also took it further by analyzing and drafting a sample party rental marketing plan template backed up by actionable guerrilla marketing ideas for party rental businesses. So let’s proceed to the business planning section.

Starting a party rental business is not as capital intensive as starting a business such as a banquet hall rental business. This is so because all that is required of you is to purchase tables, chairs, flatware, linens, centerpieces, stages, tents, canopies and other items for public and private parties and events.

You will also need a warehouse facility or well secured space to keep your items and also a truck to take them to and fro event venues as requested by your clients. You can decide to rent out the truck or include it as a premium service to those who rent party items from you.

One good thing about party supply rental business is that most often than not, your presence may not be needed as long as you have a competent team handling the business for you.

Besides a good percent of events such as wedding ceremonies, parties and most social events et al, are done during weekends and if you are lucky not to keep a 9 to 5 job that you only work Mondays to Fridays, you can successfully test run a party supply rental business.

The truth is that, most of the basic skills needed to effectively run a party supply rental business are some of the soft skills you are likely going to acquire in your workplace. Over and above, the service delivery for a party supply rental business is simple and straightforward, especially if they are not involved in other complimentary services within the scope of their business.

So if you have decided to start a party supply rental business, then you should ensure that you carry out feasibility studies and also market survey.

This will enable you properly locate the business and then hit the ground running. Business plan is yet another very important business document that you should not take for granted in the bid to launching your own business. Below is a sample party supply rental business plan template that can help you to successfully write your own with little or no difficulty.

A Sample Party Rental Business Plan Template

1. industry overview.

The party supply rental business are basically involved in renting out tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address system, red carpet, drums, plates, glasses, cutleries and other items for public and private parties and events.

In the face of economic recovery, the overall revenue generated in the party supply rental industry shrink slightly in 2011 as businesses and consumers wary of the recent recession held off on event spending. On the other hand, renewed assurance in the economy in successive years has encouraged business and consumers to host events that require products from the Party Supply Rental industry.

Continued economic recoveries will likely aid growth through 2022. So also, with higher personal and corporate income, households and businesses are projected to expand their party budgets, which will allow them to spend more on rentals beyond basic necessities to full-service products et al.

The Party Supply Rental Industry is indeed a large and vibrant industry not only in the united states of America and but also in most countries of the world as long as parties are organized there. Statistics has it that the Tent Rental cum Party Rental industry in the United States of America, is worth about $5 billion, with an estimated growth rate of 2.3 percent between 2011 and 2016.

There are about 9,645 registered and licensed party rental businesses in the United States and they are responsible for employing about 50,470 people. In the United States, only Classic Party Rental Company can boast of having a lion market share in the industry.

Despite that, the industry is still very much open for competitions from aspiring investors who would want to launch their own tent rental business.

According to report recently published by IBISWORLD, in the United States, the regions that have the greatest concentration of party supply rental companies are the Southeast, the West, the Great Lakes and the Mid-Atlantic. The distribution of companies is based mainly on the number of households and median income levels by region.

Besides, party rental cum tent rental companies tend to locate their business near major metropolitan areas, which generate a steady stream of demand for corporate and social events.

The Southeast region has the greatest concentration of industry establishments, estimated at 31.9 percent of the total in 2015. The Southeast is the most populated region of the United States; therefore, given the high proportion of households, there is a greater demand for tent rental and rental supplies for social events and corporate events.

No doubt the party supply rental industry is indeed a profitable industry to venture in despite the fact that that the entry bar for starting the business is not too difficult to scale through.

The truth is that, if a party supply rental business is well – stocked with party rental items and also well positioned in an environment with the right demography, they will sure attract regular clients and their items will be well booked all through the year.

2. Executive Summary

Caroline Packer® Party Rentals, LLC is a standard and licensed party supply rental company that will be based in Carson City – Nevada. We have been able to secure a corner piece property in a centralized and busy location in the heart of the city; a location with the right demography for the kind of business we want to run.

We are a standard party supply rental company that will be involved in renting out tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address system, red carpet, drums, plates, glasses, cutleries and other items for public and private parties and events.

We will engage in business activities such as wedding rentals, birthday rentals, corporate event rentals, banquets and other event rentals.

Caroline Packer® Party Rentals, LLC is a client-focused and result driven party supply rentals outfit that provides standard and reliable party equipment/items at an affordable fee that won’t in any way put a hole in the pocket of our clients.

We will offer standard and professional services to all to our individual clients, and corporate clients at local, state, national, and international level. We will ensure that we work hard to meet and surpass our clients’ expectations whenever they rent party items from our organization.

Caroline Packer® Party Rentals, LLC will at all times demonstrates her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Our plan is to position Caroline Packer® Party Rentals, LLC to become the leading brand in the party supply rental industry in the whole of Nevada, and also to be amongst the top 10 party supply rental outfits in the United States of America within the first 10 years of operations.

This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are enthusiastic and confident that Carson City – Nevada is the right place to launch our party supply rental business before spreading to other parts of the United States.

Caroline Packer® Party Rentals, LLC is family business that is owned by Mrs. Caroline Packer and her immediate family members.

The organization will be managed by Mrs. Caroline Packer who has over 12 years of hands on experience working at various capacities within the party rental and event planning industry in the United States.  Mrs. Caroline Packer is a graduate of Business Management from the University of Nevada – Las Vegas.

3. Our Products and Services

Caroline Packer® Party Rentals, LLC is going to offer varieties of services within the scope of party supply rental services industry in the United States of America. Our intention of starting our party supply rental company is to make profits from the industry and we will do all that is permitted by the law in the US to achieve our aim and ambition. Our business offering are listed below;

• Party supply rental (tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address system, red carpet, drums, plates, glasses, cutleries and other items for public and private parties and events)
• Corporate party and banquet equipment rental
• Wedding supply rental
• Birthday rentals
• Corporate event rentals
• BBQ party rentals
• Outdoors party rentals
• Other event rentals

4. Our Mission and Vision Statement

• Our vision is to build a party supply rental business – brand that will become the number one choice for both individual clients and corporate clients in the whole of Carson City – Nevada. Our vision reflects our values: integrity, service, excellence and teamwork.
• Our mission as a party supply rental company is to rent out tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address system, red carpet, plates, glasses, cutleries and other items for public and private parties and events.

We are going to position the business to become the leading brand in the party supply rental industry in the whole of Carson City – Nevada, and also to be amongst the top 10 party supply rental companies in the United States of America within the first 10 years of fully launching the business.

Our Business Structure

Caroline Packer® Party Rentals, LLC is a party supply rental company that intends to start small in Carson City – Nevada, but looks to grow big in order to compete favorably with leading party supply rental companies both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class party supply rental business we want to own. This is why we are committed to only hiring the best hands within our area of operations.

At Caroline Packer® Party Rentals, LLC, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions in our organization;

• Chief Executive Officer (Owner)

Party Supply Rental Manager

Admin and HR Manager

Marketing and Sales Executive

• Customer Services Executive
• Truck Driver

5. Job Roles and Responsibilities

Chief Executive Office:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Manages the rental of tents and other party rental equipment (tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address system, red carpet, drums, plates, glasses, cutleries and other items for public and private parties and events)
• Achieves maximum profitability and over-all success by controlling costs and quality of equipment and service.
• Completes weekly schedules. Schedule employees as necessary to ensure adequate and consistent levels of service.
• Supervises weekly schedules. Schedule staff as necessary to ensure adequate and consistent levels of service
• Responsible for party supply rental control policies and completion of necessary forms.
• Follows proper purchasing and requisitioning procedures.
• Co-ordinates the general assembling and dismantling of tents, tables, chairs, stage and ensure that they are safely transported to and fro event venues.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Designs job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversees the smooth running of the daily office activities.
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Writes winning proposal documents, negotiate fees and rates in line with company policy
• Responsible for handling business research, marker surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Client Service Executive

• Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

Truck Driver:

• Responsible for transporting tents, party rental items/equipment, supplies and workers to project site
• Runs errand for the organization
• Handles any other duty as assigned by the party supply rental manager.

6. SWOT Analysis

Because of our drive for excellence when it comes to running a standard and world – class party supply rental company, we were able to engage some of the finest business consultants in Carson City – Nevada to look through our business concept and together we were able to critically examine the prospect of the business and to access ourselves to be sure we have what it takes to run a standard and world – class party supply rental business.

In view of that, we were able to take stock of our strengths, our weakness, our opportunities and also the threats that we are likely going to be exposed to in Carson City – Nevada. Here is a of what we got from the critically conducted SWOT Analysis Caroline Packer® Party Rentals, LLC;

Notwithstanding the fact that all our party rental items/equipment and tents are of world – class standard and the business is well positioned and well – equipped to meet the 21 st century demand of both high profile corporate and individual clients.

We have a team that can go all the way to give our clients value for their money; a team that are trained and equipped to pay attention to details as regard setting up party venues. We are well positioned and we know we will attract loads of clients from the first day we open our doors for business.

As a new party supply rental company, it might take some time for our organization to break into the market and gain acceptance in the already saturated party supply rental industry especially from corporate clients; that is perhaps our major weakness.

• Opportunities:

The opportunities in the party supply rental industry is massive considering the number of corporate events, weddings, parties and other events that takes places on a daily basis in the United States. As a standard and well – equipped party supply rental company, we are ready to take advantage of any opportunity that comes our way.

Some of the threats that we may likely face as a party supply rental company operating in the United States are unfavorable government policies, the arrival of a competitor within our location of operations and global economic downturn which usually affects purchasing power.

There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

• Market Trends

One thing is certain; it is difficult to find a business that is strictly into just party supply rentals. This is so because such a business will find it difficult to maintain its overhead and operational cost or generate enough income needed for business expansion.

In recent time, it is common to find party supply rental companies engage in other complimentary services such as event planning services and the likes.

The party supply rental industry is in a continuous state of evolution and as such, ground breaking strategies and ideas that are once highly successful are no longer as productive as they were in time past. Close observation of the trend in the industry reveals that the past few years have seen the rise and proliferation of social media and new tech tools.

The trends also extends to increased attention paid to engagement and new market segments, adopting eco-friendly measures and sustainability when planning events, and of course increase in demands from event sponsors.

Lastly, aside from excellent customer services, party supply rental companies ensure that they have some of the best and comfortable party rental items they can get even if it means importing them or customizing them. This will enable them to continue to welcome repeated customers on a regular basis.

8. Our Target Market

Even though Caroline Packer® Party Rentals, LLC will initially serve small to medium sized business, from individual clients to well established businesses and corporate clients, but that does not in any way stop us from growing to be able to compete with the leading party supply rental companies in the United States.

As an all – round and world – class party supply rental company, Caroline Packer® Party Rentals, LLC offers a wide range of services hence we are well trained and equipped to services a wide range of clientele base.

Our target market cuts across people of different class and people from all walks of life, local and international organizations as well.

We are coming into the industry with a business concept that will enable us work with the highly placed people and companies in the country and at the same with the lowly placed people and smaller businesses. Below is a list of the people and organizations that we have specifically design our products and services for;

• Potential Couples/Young Adults
• Blue Chips Companies
• Corporate Organizations
• Religious Organizations
• Political Parties/Politicians
• Households/Families
• The Government (Public Sector)
• Schools (High Schools, Colleges and Universities)
• Sport Organizations
• Entrepreneurs and Start – Ups

Our competitive advantage

We know that to be highly competitive in the event party supply rental industry means that your tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address system, red carpet, drums, plates, glasses, cutleries and other items for public and private parties and events must be of high standard.

Your business must be well – positioned and well – equipped, you should be able to deliver consistent quality service, your clients should be able to experience remarkable difference cum improvement and you should be able to meet the expectations of both participants and organizers of events.

Caroline Packer® Party Rentals, LLC might be a new entrant into the party supply rental industry in the United States of America, but the management staffs and owners of the business are considered gurus. They are people who are core professionals and licensed and highly qualified to run such business; people who have the magic wand to turn a start – up business into a mega business.

Our tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address system, red carpet, drums, plates, glasses, cutleries and other items are of world – class standard and the business is well positioned and well – equipped to meet the 21 st century demand of both high profile corporate and individual clients. These are part of what will count as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be amongst the best within our category (startups party supply rental companies) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Caroline Packer® Party Rentals, LLC is established with the aim of maximizing profits in the party supply rental industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis and sign retainer – ship with most of our clients.

Caroline Packer® Party Rentals, LLC will generate income by offering the following party supply rental services for individuals clients and for corporate organizations;

• Other event rentals.

10. Sales Forecast

One thing is certain, there would always be parties, indoor and outdoor events in the United States of America and as such the services of party supply rental companies will always be needed. This, we have at the back of our minds always.

We are well positioned to take on the available market in Carson City – Nevada and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six month of operations and grow the business and our clientele base beyond Carson City – Nevada to other cities in Nevada and other states in the U.S.

We have been able to critically examine the party supply rental market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Carson City – Nevada.

Below are the sales projection for Caroline Packer® Party Rentals, LLC, it is based on the location of our business and the wide range of party supply items that we will be offering;

• First Fiscal Year-: $250,000
• Second Fiscal Year-: $600,000
• Third Fiscal Year-: $900,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. There won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiffer competition amongst party supply rental companies in the United States of America; hence we have been able to hire some of the best business developer to handle our sales and marketing concerns.

Our sales and marketing team will be recruited based on their vast experience in the party supply rental industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization.

We will also ensure that our excellent job deliveries speak for us in the market place; we want to build a standard party supply rental business that will leverage on word of mouth advertisement from satisfied clients (both individuals and corporate organizations).

Our goal is to grow our party supply rental company to become one of the top 10 party supply rental companies in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the Carson City – Nevada but also in other cities in the United States of America.

Caroline Packer® Party Rentals, LLC is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our business by sending introductory letters alongside our brochure to corporate organizations, religious organizations, schools, households and key stake holders in Carson City and other cities in Nevada
• Advertise our business in relevant event related magazines, newspapers, TV stations, and radio station.
• List our business on yellow pages ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets and still deliver quality supply and services to them
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients
• Join local chambers of commerce and industry with the aim of marketing our business
• Make use of attractive hand bills to create awareness and also to give direction to our facility
• Adopt direct mailing coupon marketing approach
• Position our signage/flexi banners at strategic places in and around Los Angeles – California
• Create a loyalty plan that will enable us reward our consistent clients especially those that refer clients to us.
• Engage in road shows within our neighborhood to create awareness for our party supply rental business.

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to take the event planning and party rental industry by storm which is why we have made provisions for effective publicity and advertisement of our party supply rental company. Below are the platforms we intend to leverage on to promote and advertise Caroline Packer® Party Rentals, LLC;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events/programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
• Install our Bill Boards on strategic locations all around Carson City – Nevada
• Engage in road show from time to time in target neighborhoods
• Distribute our fliers and handbills in target areas
• Ensure that all our workers wear our branded shirts and all our vehicles and trucks are well branded with our company’s logo et al.

12. Our Pricing Strategy

Just like in rental and consulting business, hourly billing for rental services is also a long – time tradition in the industry.  However, for some types of rental services, flat fees make more sense because they allow clients to better predict the overall service charges.

As a result of this, Caroline Packer® Party Rentals, LLC will charge our clients both flat fee and hourly billing as long as it favors both parties.

At Caroline Packer® Party Rentals, LLC we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance.  In addition, we will also offer special discounted rates to start – ups, nonprofits, cooperatives, and small social enterprises.

We are aware that there are some clients especially event planning outfits that would need regular party rental items, we will offer flat rate for such services that will be tailored to take care of such clients’ needs.

• Payment Options

The payment policy adopted by Caroline Packer® Party Rentals, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America. Here are the payment options that Caroline Packer® Party Rentals, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards/Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for the party rental items.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a party supply rental business; it might differ in other countries due to the value of their money. However, this is what it would cost us to set up Caroline Packer® Party Rentals, LLC in the United of America;

• The Total Fee for incorporating the Business in the United States of America- $750.
• The budget for basic insurance policy covers, permits and business license – $2,500
• The Amount needed to acquire a suitable facility that will accommodate our dismantled tents, trucks and small office facility (Re – Construction of the facility inclusive) – $150,000.
• The Cost for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
• The Cost of Launching an official Website – $600
• The cost for the construction of standard tents – $10,000
• The cost for the purchase of standard party supply items (tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address system, red carpet, drums, plates, glasses, cutleries and other items for public and private parties and events) – $50,000
• The cost for the purchase of a truck – $10,000
• Budget for paying  at least 4 employees for 2 months plus utility bills – $100,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
• Miscellaneous: $5,000

Going by the report from the market research and feasibility studies conducted, we will need about four hundred and fifty thousand ( 450,000 ) U.S. dollars to successfully set – up a medium scale but standard and well – equipped party supply rental business firm in the United States of America.

Generating Funds/Startup Capital for Caroline Packer® Party Rentals, LLC

Caroline Packer® Party Rentals, LLC is a family business that will be owned by Mrs. Caroline Packer and his immediate family members.

They are the sole financial of the firm, but may likely welcome partners later which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources. These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $150,000 ( Personal savings $100,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Caroline Packer® Party Rentals, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to rental out our party supply items/equipment a little bit lower than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Caroline Packer® Party Rentals, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Securing a standard facility and reconstruction inclusive: In Progress
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed furniture, office equipment, electronic appliances and facility facelift: In progress
• Purchase of various sizes of standard tents and other party rentals items: Completed
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in the industry: In Progress

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Party Rental Business Plan Template [Updated 2024]

Party Rental Business Plan Template

If you want to start a party rental business or expand your current party rental business, you need a business plan.

The following Party Rental business plan template gives you the key elements to include in a winning Party Rental business plan. In addition to this template, a solid plan will also include market research to help you better understand market trends, your competitive advantage and your target customers. It will also help you craft your mission statement, marketing plan and strong financial projections.

You can download our Ultimate Business Plan Template (including a full, customizable financial model) to your computer here.

Party Rental Business Plan Example

Below are links to each of the key sections of your Party Rental business plan: I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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Party Rental Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

How to Start a Party Rental Business in 10 Steps

Starting a party rental business is a fantastic way to bring joy and excitement into people's lives while building a profitable venture for yourself.

So, if you're ready to create memorable events and grow a thriving business, let's get started on this exciting adventure together!

What Is a Party Rental?

A party rental business leases out equipment, furniture, and accessories needed to host various events, ranging from intimate gatherings to grand celebrations. This service provides customers with the essentials for their events, such as tents, tables, chairs, linens, lighting, sound systems, and decorative items, without the need for them to purchase these items outright. Party rentals cater to a wide array of events, including weddings, birthday parties, corporate events, festivals, and family reunions.

In case you’re wondering how you can provide such a service, many party rentals use a digital inventory management system . This flexibility allows for the creation of unique and memorable experiences tailored to each event's needs.

Why Start a Party Rental Business?

Here are several compelling reasons to consider launching a party rental business:

1. Consistent Demand

Events, celebrations, and gatherings are timeless. From weddings and birthday parties to corporate events and community gatherings, the need for rental equipment and decorations is perennial. This constant demand provides a stable foundation for a party rental business, ensuring year-round opportunities for revenue.

2. Low Entry Barriers

Starting a party rental business can have relatively low entry barriers compared to other ventures. While the initial investment in inventory can be significant, the business does not necessarily require a physical storefront, reducing overhead costs.

3. High-Profit Margins

Party rental businesses often enjoy high-profit margins. The cost of renting out equipment and accessories is significantly higher than the maintenance and purchase costs, especially as items are rented out multiple times.

4. Flexibility

This type of business offers great flexibility in terms of operation. You can choose to specialize in certain types of events, such as weddings or corporate functions, or offer a broad range of equipment for all kinds of gatherings.

5. Creativity and Satisfaction

For those with a creative streak, a party rental business provides a canvas to express creativity through event themes, decorations, and setups. Seeing your inventory transform spaces into extraordinary settings for clients’ special moments is a profound sense of satisfaction.

6. Networking Opportunities

Operating in the event industry opens up extensive networking opportunities. Collaborating with event planners, caterers, venue owners, and other vendors can not only expand your business reach but also lead to strategic partnerships and referrals, fueling business growth.

7. Market Expansion and Innovation

The event planning industry is dynamic, with new trends emerging regularly. This allows for continuous innovation and expansion in your offerings, from eco-friendly products to tech-savvy solutions like digital photo booths.

8. Community Impact

Lastly, a party rental business positively impacts the community by facilitating celebrations and gatherings that unite people. Whether it’s a wedding, a milestone birthday, or a charity event, your business plays a crucial role in creating joyous experiences and lasting memories.

10 Steps to Start a Party Rental Business

Starting a party rental business involves careful planning and execution. Here are ten essential steps to establish and launch your venture successfully:

1. Conduct Market Research

Begin by thoroughly researching the market to understand the demand for party rentals in your area, identify your potential competitors, and recognize the needs of your target market. This will help you determine what types of events are most common and which rental items are in high demand, guiding you to make informed decisions about your inventory and marketing strategies.

2. Create a Party Rental Business Plan

Draft a detailed business plan outlining your business goals, target market, competition analysis, marketing, and financial plans. This document will serve as a roadmap for your business, helping you to stay focused and organized.

3. Identify Profitable Niches

Based on your market research, identify niches within the party rental industry where you can specialize. Whether it's weddings, corporate events, or backyard parties, focusing on a niche can help you tailor your inventory and marketing efforts to meet specific needs, setting you apart from competitors.

4. Form a Legal Business Entity

Decide on the legal structure of your business (e.g., sole proprietorship, partnership, LLC) and register your company. This step is essential for legal protection, tax purposes, and establishing credibility with customers and vendors.

5. Secure Funding for Your Party Rental Business

Calculate the initial investment needed to start your business, including costs for inventory, storage, delivery vehicles, and marketing. Explore funding options such as small business loans, investors, or crowdfunding to cover these startup costs.

6. Purchase Party Rental Equipment

Invest in high-quality, durable party rental equipment that will withstand frequent use. Focus on versatile items that can be used for a variety of events, such as tables, chairs, tents, and decorations. Building a diverse inventory will allow you to cater to different customer needs and preferences.

7. Build an Effective Website and Online Presence

In today's digital age, a professional website and strong online presence are crucial for attracting customers. Ensure your website is user-friendly, showcases your inventory with high-quality images, and includes clear contact information and a booking system. Utilize social media platforms to engage with potential customers and promote your services.

8. Select a Delivery Vehicle

Choose a reliable delivery vehicle that can accommodate your equipment and facilitate easy transportation to and from event locations. The size and type of vehicle will depend on the scale of your inventory and the types of events you cater to.

9. Acquire Storage for Your Party Rental Business

Find a suitable storage solution for your inventory that is secure, accessible, and scalable. Consider the size of your inventory and potential growth when selecting a storage facility or warehouse.

10. Obtain Necessary Permits and Licenses

Research and obtain any required permits and licenses to operate your party rental business in your area legally. Depending on your local regulations, this may include a business license, sales tax permit, and health and safety certifications.

How to Grow Your Party Rental Business

Expanding your party rental business requires a strategic approach, focusing on enhancing your services, reaching new markets, and continuously meeting the evolving needs of your customers. Here are key strategies to consider for growth:

Upgrade Your Party Rental Equipment as Needed

• Stay Current with Trends: Regularly research the latest trends in the event industry and update your inventory with popular and in-demand items. Offering trendy and unique rental options can set your business apart and attract a broader client base.
• Invest in Quality: Prioritize the quality and condition of your rental equipment. Upgrading to higher-quality, durable items can reduce maintenance costs over time and improve customer satisfaction.
• Expand Your Inventory: Continuously assess your inventory and consider adding new types of items that complement your existing offerings. This could include expanding into new categories like technology-enhanced products or eco-friendly options.

Expand to New Locations

• Market Research: Before expanding, conduct thorough market research in potential new locations to understand the local demand, competition, and event trends. This will help you tailor your offerings and marketing strategies to the new market.
• Strategic Partnerships: Establish partnerships with local venues, event planners, and other vendors in the new location. These relationships can provide valuable referrals and insights into the local event scene.
• Localized Marketing: Implement marketing strategies that resonate with the local community. Engage in local events, sponsor community activities, and use targeted advertising to raise awareness of your brand in the new area.

Offer Additional Services and Upselling

• Complementary Services: Consider offering services that complement your rental business, such as event planning, coordination, or decoration services. This can provide a more comprehensive solution for your clients, enhancing their experience and increasing your revenue.
• Package Deals: Create package deals that bundle various items and services at a discounted rate. Packages make decision-making easier for clients and can increase the average transaction size.

How Much Does it Cost to Start a Party Rental Business?

Venturing into the party rental business offers an exciting opportunity for entrepreneurs looking to tap into the vibrant event industry. This sector is about bringing joy and entertainment to various celebrations and creating a sustainable and profitable business model with a relatively low barrier to entry. 

Initial Costs Breakdown

Embarking on a party rental business journey can begin with an investment of under $5,000. * This initial investment covers essential equipment, such as inflatable bounces or slides, which are staples for any party rental company. 

While keeping the investment on the lower end, around $4,000 to $5,000, it's imperative to account for necessary expenses beyond just equipment, with insurance being a notable example . * Insurance is vital in this industry, protecting your assets and operations.

Exploring the Income Potential

The income potential in the party rental business varies significantly based on scale, location, and the diversity of services offered. Some businesses may see earnings starting at $20,000, while others in more lucrative markets or with a broader service range can achieve incomes in the millions . *

Operating from Home: A Cost-Effective Strategy

One of the appealing aspects of starting a party rental business is the feasibility of operating from home during the initial phases. This approach significantly reduces overhead costs, allowing entrepreneurs to reinvest profits into expanding their inventory and services. Starting part-time and gradually transitioning to a full-time operation as the business grows is a common and strategic approach, providing flexibility and minimizing financial strain.

Key Takeaways

• Profitability Potential : A party rental business offers significant profitability potential through strategic planning, diversified inventory, and effective marketing, especially when operational costs are minimized.
• Insurance Requirement : Obtaining comprehensive insurance coverage, including general liability and property insurance, is crucial for protecting the business against liabilities and accidents, thereby ensuring its financial stability and enhancing credibility with clients.
• Storefront Not Essential : Starting and operating a party rental business does not require a physical storefront, allowing for a more flexible and cost-effective business model that can significantly reduce initial overhead expenses.

Frequently Asked Questions

Is a party rental business profitable.

Yes, a party rental business is profitable with proper planning, a diverse inventory, and effective marketing. Profitability varies based on operational efficiency and market demand, with the potential for significant income growth by keeping overhead costs low.

Do I Need Insurance for My Party Rental Business?

Yes, you need insurance to start a party rental business. Insurance is essential for a party rental business to protect against liability and accidents. Essential coverage includes general liability, property, and potentially workers' compensation. 

Do I Need a Physical Storefront to Operate a Party Rental Business?

No, a physical storefront is not necessary to start a party rental business. Many operate successfully from home or a storage facility, reducing overhead costs. A storefront may be considered for growth but is not essential for initial operations.

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How to start a party rental business in 10 steps + Free rental business plan template

If you are looking for tips on how to start a party rental business , then you’re in the right place! 🎉

If there is one thing to learn from living through pandemics and lockdowns, it’s that a lot can change in a year. As a software provider for party rental businesses and live event suppliers , we’ve experienced firsthand the impact of Covid-19 on our industry .

While this has been a very dark moment for the industry, many companies used this time to work on their strategies and improve their business processes.

And, contrary to popular belief, starting a party rental business today could be one of those milestones that you'll look back on years from now as one of the best decisions you’ve ever made.

But if you want it to be successful, you're going to have to take the time to reflect and strategize on your future business.

To guide you through this, here are 10 steps you can follow on how to start a party rental business :

Types of Party Rental Businesses Step 1: Study your market Step 2: Write your business plan Step 3: Register for business licenses, permits and taxes Step 4: Purchase the right equipment Step 5: Implement a pricing strategy Step 6: Get insurance Step 7: Keep track of your customers, orders, and due dates Step 8: Invest in marketing Step 9: Monitor your progress Step 10: Grow your team Things you should consider

Types of Party Rental Businesses

Ready to step into the world of party supplies ? Before you dive head-first into the nitty-gritty of your next business success, it is important to determine your niche in the industry.

Let’s explore 4 party rental business ideas ranging from low to high investment costs, but all with the potential for scalable growth!

1. Photo Booth Rental: Capture Memories

“Say cheese!”

Photo booth rentals bring a unique and interactive experience to all kinds of events and for guests of all ages. These kinds of party rental supplies are easily adaptable, making them a worthwhile investment for starters. Set up a photo booth with props and backdrops for festivals, weddings, and corporate events.

Note that there are many different types of photo booths, from selfie stations to 360-degree photo booths. If you decide to go cheap on your initial investment, this means your rental price will be on the lower side as well.

Initial investment: $1.500 - $10.000 (photo booth and props)

ROI: Revenue per event: $700 Net profit per event: $600

You can also offer various packages including prints, digital copies, and customized photo booth experiences. Have a look at some of the options in the table below.

Keep in mind that idle time or an early setup time can cost you up to $75 per hour. So make sure you keep your photo booth as productive as possible!

Source:  Fash.com

2. Chair Rental: Creating Style and Comfort

A chair rental service provides customers with chairs for specific events or occasions. These types of party rental companies offer chairs for a designated period, along with convenient delivery and pick-up services.

Whether it's an intimate gathering or a large-scale affair, your chair rental business can help create the perfect seating arrangement to accommodate guests in comfort and style.

Initial investment: $3.000 - $10.000 (for 100 chairs) and $180 per month for a storage unit

ROI: Revenue per event: $200 (excl. delivery) Net profit per event: $190

This business idea can easily be expanded, by facilitating the next concept of tent rentals:

3. Tent Rental: Transforming Spaces

From elegant tents with flowing fabric and delicate lighting to sturdy frame tents, your tent rental business can cater to diverse event needs.

With an emphasis on quality and aesthetics, you can offer a range of options that match different themes and budgets, ensuring that each event is unique and memorable.

Initial investment: $2.000 - $10.000 (depending on the size of the tent) and $180 per month for a storage unit

ROI: Revenue per event: $750 per day for an event with 100 people Net profit per event: $650 per day (costs include transport and installation)

The rental price you can charge, really depends on the type and size of events you want to target. Let’s explore a couple of different options.

Source:  A Party center and  Meadow Valey Party Rentals  

4. Wedding Party Rental: Unforgettable Celebrations

Excited about all three? Why not combine them and start a wedding rental business!

Whether it's an intimate gathering or a grand extravaganza, wedding rental supply businesses play a crucial role in offering a comprehensive range of options to realize a dream wedding.

Let's explore some successful examples of wedding rental businesses that have left a mark on the industry:

• Ship Our Wedding : has shaken up the event rental scene with their cool DIY platform. They have a large supply of rental items you can easily ship to any kind of venue.
• Rustic Wedding Chic : has successfully chosen a specific niche in the wedding rental industry, by solely focusing on the rustic aesthetic.
• Rent my Wedding : as the very first online wedding rental, this business is focused on shipping lighting, draping, and photo booths.

Haven’t found your niche yet? Here are 5 more creative ideas for a party rental business!

• Dance floors to rent
• Staging to rent
• Sound equipment to rent
• Cocktail bars to rent
• Inflatables to rent

Will you say ‘I do’ to one of these ideas? Then head on over to the next section, where we dive into the 10 steps to start a party rental business.

Step 1: Study your market

When starting a party rental business , the first thing that you should do is study your market. This step is called market research.

Market research is the process of gathering information on your target audience and market to understand their wants and needs.

Studying your market will provide you with insight into what methods work for your competitors, how they operate, and the services and prices they offer.

You can then use this information to determine how you should structure your product or services to bring an added value to your target market and find a competitive advantage for your party rental business.

Here are some questions that you can ask when conducting market research:

• Who are the current customers?
• What is their purchasing power?
• What types of products or services are they looking for?
• Where do these customers look for solutions?
• What are the current options available?
• What added value can you bring?
• What challenges do customers face?
• What are the challenges for the current market?
• How many people would be interested in your offer?
• What alternatives are currently available?
• What do potential customers pay for these alternatives?
• What influences purchases and conversions among your target audience?

Step 2: Write your business plan

After you’ve studied your market and identified business ideas, the next step in starting a party rental business is to start structuring your ideas in a business plan .

A business plan is a document that outlines your business’s objectives , and the strategies that will be implemented to help you achieve them.

In your business plan, you should include:

• findings from your market research
• your target market
• your go-to-market strategy
• your starting capital
• financial projections
• your business purpose, and mission

Writing a business plan down is an essential part of starting a party rental business because it makes you consider and research important aspects of the business that you may have ignored previously.

You should keep in mind that a good business plan is never completely done. As your business starts to grow, you will start making changes. It is always a good idea to review and update your business plan as things change or at least once a year to reflect on your goals for the upcoming year.

Updating your business plan will help you strategize , stay relevant in your market, and plan for what needs to be done to achieve your desired results.

Ready to take action and start your own party rental company? That's great, this is the spirit we're looking for! Feel free to use our very own free rental business plan to get you started right away. Good luck!

Step 3: Register for business licenses, permits and taxes

When starting a business, you are expected to have the right licenses and permits for the country or state that you are operating in. Failure to do so can result in hefty fines, or even cause your business to be shut down.

Although there are generally no licenses required specifically for party rental businesses in most countries, business owners should check the local requirements of their country or state to be sure that they are in compliance with the laws and regulations that apply there.

If you are in the United States, you can apply for federal or state licenses and permits here .

It's also essential to have a clear understanding of the financial aspects, including tax obligations.

Registering for taxes is a crucial step for any business, ensuring compliance with legal requirements and avoiding potential penalties. To facilitate this, you will require an Employer Identification Number, which can be conveniently obtained through the IRS of your country, via their website, phone, or email.

US citizens can follow these steps:

• Decide in which states you want to conduct business.
• Look for the registration threshold for these states, to determine for which states your need to get a tax permit.
• Search for the taxing agencies in those states (usually called the State Department of Revenue).
• Follow the steps required by the taxing agency. Usually, this means you need to download the Sales and Use Tax Form from your state or fill it out online.
• It can take up to 4 weeks to receive your tax permits. Until that time, you are not allowed to  collect rental sales tax from your customers.

Do not forget this crucial step before heading for success!

Step 4: Purchase the right equipment

When it comes to purchasing equipment for your party rental business, you should take the time to ask customers for the types of party rental equipment they tend to look for.

By doing so, you will start seeing trends emerge pointing toward popular items such as:

• folding tables
• folding chairs
• and party tents

But you will also see unique items such as:

• lighting systems
• photo booths
• bounce houses
• or food displays

Since purchasing equipment is likely to be one of your biggest investments, you want to make sure that you avoid idle inventory and that you don’t overspend in the beginning. It is cheaper and easier to buy more equipment later than to get rid of excess unwanted equipment.

🔎 Idle inventory is having items in your inventory that are not being used and are not needed to generate profit.

Therefore, you should not purchase all of the equipment that they mention when you launch your company, instead, you should make a priority list of equipment you need to purchase and a list of equipment that can be subrented .

By having a combination of your own inventory and a list of equipment you can subrent, you will be able to fulfill more of a customer’s needs in one sitting.

And if they can get all of the items they need from a single vendor instead of relying on three or four separate companies, that’s the option they’re most likely to take.

⚠️ When purchasing equipment, you should also consider investing in vehicles that can be used to transport and set up the equipment at the location of the events.

Step 5: Implement a pricing strategy

Based on your research in step 1 and 2, you will have information on:

• what your competitors are charging,
• what your potential customers are willing to pay,
• and how much you need to charge in order to break even or be profitable.

Pricing your services can be tough, but you can use the prices that your competitors charge as a reference.

However, you should keep in mind that if you set your prices too low , it will be harder for your company to break even, and it can make potential customers think twice about renting from you because they might think that there is a catch or that something might be wrong with your services.

And of course, if you set your prices too high , you will miss out on valuable sales.

There are dozens of pricing models and strategies that can help you better understand how to set the right prices for your audience and revenue goals.

Here are some pricing strategies examples that you can consider using:

• Cost-Plus Margin : A pricing method in which the selling price of a service is determined by adding a profit margin to the costs of the service.
• Demand-Based Pricing : With this pricing method, the increase and decrease in consumer demand determines the pricing.
• Competition-Based Pricing : Here, prices are determined by the prices set by your competition.
• Price Bundling : The pricing is set for a group of products and grouped products are not rented out separately.

Step 6: Get insurance

Just like business licenses and permits, you will need business insurance in order to operate safely and legally.

Running a party rental business means purchasing and renting both indoor and outdoor equipment, like lights, speakers, or tents. Since you've invested money into these equipment, and your company relies on them, you should insure them in case any accidents happen.

You also want to make sure that you are protected in the event that someone gets hurt or injured while using your equipment, this is usually covered with liability insurance .

Liability insurance is mandatory for party rental businesses in some places and sometimes your business isn’t legally allowed to operate without it. You should check your local laws to see if this applies to you.

It is strongly recommended to have liability insurance for your own safety, even if it isn’t mandatory in your area. Many potential customers will also consider you more trustworthy if you present them with proof of that insurance.

You should consider consulting with an insurance broker to help you choose the best insurance policies for your party rental company, they will help you assess the risks involved in the industry, and tell you what are the best insurances you should choose.

Step 7: Keep track of your customers, orders, and due dates

Managing a party rental business requires having strong organizational skills . You are in an industry with strict deadlines and many moving parts, so it is essential that you keep track of your projects and resources accurately if you want to plan events successfully.

Whether you are planning weddings, parties, or corporate events, you can use a dedicated rental management tool like Rentman, to keep track of your customers , orders , and inventory availability in a single platform.

Rentman will help you manage all of the steps involved in running a party rental business more efficiently, save you time in planning events and give your financial documents a more professional look.

With Rentman’s built-in template editor , you customize your own templates with images, personal texts, and your corporate branding to make your quotes easily recognizable.

You can also connect Rentman to Mollie , Stripe , and WooCommerce to accept online payments , and showcase your products in a webshop .

Step 8: Invest in marketing

Starting a party rental business can be difficult, let alone learning how to market one. However, investing in marketing should be one of the first things you should consider doing when starting your business.

Marketing helps you build brand awareness and credibility , which is very important in the early stages of your business, as you want to make potential customers familiar with your brand and convince them why they should choose you over your competitors.

As a result, marketing efforts will have an effect on your turnover, pricing, promotions, and your advertising strategies.

Here are some examples of marketing techniques that you can use to build brand awareness:

• networking with local businesses (event planners, event venues…)
• advertising your business in relevant business magazines, tv and radio stations
• social media advertising (Facebook ads, Youtube ads…)
• search engine advertising , by posting ads on Google and Bing result pages or other websites using CPC (cost per click)
• creating and managing your “Google My Business” listing

Step 9: Monitor your progress

When you track your progress, you naturally become more purposeful about the work you do.

You also have more insight into the value that you’re creating for your business so you can show your team the results of your efforts.

With Rentman, you can create a personal dashboard to monitor your progress and use your data to make better decisions:

• identify which equipment is the most profitable,
• what your next purchase should be,
• where you lose revenue,
• and much more…

Step 10: Grow your team

The final step is to grow your team.

Hiring your first employees is a huge step when starting a party rental business. Having the extra manpower means that you can assign tasks to members of your team and dedicate your time to other tasks with a higher priority.

But before bringing just anyone on board, you need to understand that extra manpower entails a whole new string of legal obligations, liabilities, expenses, and, of course, paperwork.

The number of employees you decide to hire in the first stages of your business will depend on your needs. But, as your business grows, you will need at least a few employees to take and prepare orders , deliver and pick up equipment and deal with customer service .

Here are some examples of the types of employees you can recruit when starting a party rental business:

• delivery drivers
• crew members
• bookkeepers
• technicians
• sales/marketing specialists

The employees that you hire should have a few key qualities, this includes:  flexibility , passion,  and trustworthiness . It is important to hire people who are flexible enough to take on diverse responsibilities until you can expand further. And, since every employee plays a key role in your business, it is important to hire people you trust.

💡 Another option you have is to outsource some of these tasks to freelancers or independent contractors.

“No one can whistle a symphony. It takes a whole orchestra to play it.”

H.E. Luccock

Things you should consider

The party rental industry can be very seasonal, there are usually more events during holidays or when there is good weather.

It is also a competitive industry . As a business owner, you’ll need to be creative and stay up-to-date with current trends.

Finally, networking is an important factor in a party rental business’ success. You’ll need to create and maintain a good relationship with local event planners and event venues to bring in new business and explore new opportunities.

Start a free 30-day trial of Rentman today and start running your party rental business more efficiently!

Cover photo provided by  Blunotte Eventi

• What is a party rental business? In a party rental business, you provide various resources to ensure that a party or a small-scale event goes successfully. This can go from renting out equipment such as tents, chairs or tables, all the way up to renting event venues and operating staff.
• What are some common types of party rental businesses? You can rent out anything you want, as long as you think it helps a party become successful. However, some of the most popular party rental business ideas are the following: photo booth rental, chair rental, tent rental and wedding party rental.
• What steps should I take to start a party rental business? To start a party rental business, make sure to study your market, develop a business plan, as well as register for licenses and permits. The next steps are purchasing the right equipment, pricing them to ensure profits, as well as getting insurance for any potential damage. Lastly, you need to make sure you can easily track all your orders. Pro tip! Use a resource management platform like Rentman to have the best overview over your customers, orders and due dates.
• Can I start a party rental business as a side job? Yes, you can start a party rental business as a side gig. If you start small and rent out equipment for various events (such as chairs, tables or tents), you can definitely do this in your spare time, as long as you make sure you work on a business plan and your equipment is priced accordingly for subrenting.
• How much should I invest to start a party rental business? Starting a party rental business might not be as expensive as you might think. For example, purchasing chairs, tables or tents can cost you anything between $2.000 and $10.000, as well as storage monthly costs of up to $200.
• 
How much revenue does a party rental business make? It depends on the size of events and your inventory. However, to give some examples, chair rental businesses can have revenues of around $200 per event, whereas tent rental businesses can have revenues of up to $750 per day for an event.
• Is a party rental business profitable? Yes, party rental businesses can be really profitable, as long as you price your equipment accordingly for subrenting. For example, chair rental businesses can have profits of $190 per event and tent rental businesses can have profits of up to $650 per day for an event.
• What type of equipment do I need to buy for a party rental business? Always check trends before purchasing any equipment, for example using tools such as Google Trends. Since purchasing equipment will most likely be your biggest investment, you also need to make sure to avoid buying idle inventory, which is equipment that will not be used for all your events and that will not generate profit every time. With that said, the most common items you can purchase are folding tables, folding chairs, party tents and even photo booths or bounce houses.
• How do I determine equipment pricing for a party rental business? Always price your equipment based on your business plan. With that said, make sure to find out what your competitors are charging, what your potential customers are willing to pay, as well as how much you need to charge in order to break even or be profitable while renting out your equipment (for example, for a lifespan of two years). Here are some pricing strategies: cost-plus margin, demand-based pricing, competition-based pricing and price bundling.
• How do I keep track of orders in a party rental business? While starting a party rental business might seem easy, maintaining an overview over your processes requires strong organizational skills. While starting out, spreadsheets might be the easiest solution to keep track of everything. However, once more orders come in, you’ll definitely need a rental management tool, like Rentman. With Rentman you can manage all steps involved in running a party rental business in a more efficient way, saving you lots of time and giving you a better financial overview for your projects

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Published on Nov 26, 2021

A full guide on how to start a party rental business

16 min read

The party rental industry has been a whirlwind these last two years. Since lockdowns and social distancing were enforced, the whole party scene disappeared overnight.

But now that restrictions have eased up, people have begun to embrace partying again as they gather together to socialize or converse. It's easy to see why: parties have existed since the dawn of man, and people will always seek to gather together when an opportunity for celebration arises. Whether it's a wedding, a birthday party, or a corporate event — there's always a good reason to throw a party!

So, starting a party rental business isn't a bad business idea since the global economy is recovering and events are popping up left and right.

The party supply rental industry deals with providing the necessary resources for a particular party to be successful. This can include the rental of event venues such as a building or room space, chairs, tables, tents, cooking, and sound equipment. These equipment are either rented by organizations or individuals for the success of their event.

This detailed article will provide a complete guide on starting a party rental business and running it. Keep reading and start your company in this massive and trending industry.

Create a party rental business plan

When starting a party rental business, it would be wise to go with what you know. So, if you, for example, worked as a wedding receptionist at one point, maybe you should start a wedding rental business as you already know how the industry operates.

Let's go over what starting a party rental business requires, a few different business types, and then explore some of the essential steps to launching your business – including understanding the market, identifying competitors, and forecasting inventory costs.

Different types of party rental businesses

Before we get into how to start a party rental business or an event rental business, we understand that a bit of inspiration would be helpful. There are as many party rental business niches for every type of event and need out there. A few of these include:

Event planning and production companies

While the core business might be on the event planning and design side of things, an equipment rental business can provide a solid secondary income source.

There are several types of event production companies, some focusing on corporate events and some on private parties. Either way, if you have found it difficult to find equipment suppliers to match your needs, you might be on the verge of something. There are likely more people who have struggled with the same issues.

So, why not expand to the rental business?

Wedding rental business

Many consider a wedding the most important day in a romantic couple's life. So, it's no surprise they need some help making it all happen. Don't get all lovey-dovey on us, though; this is a seriously lucrative market that new business owners always try to break into. 

To be in the wedding rental industry, you don't necessarily have to be able to offer hundreds of seats and tables. It could be as simple as providing decorations for different styles, including boho decor, lighting, dry flowers, table centerpieces, and all that stuff that might seem pointless to buy for that one day.

You can quickly start building your business up from there by doing a little research on the most popular wedding styles and venues.

AV Equipment rental business

Yet another profitable rental business you can start. One advantage of this business is that people will always need your services as long as there are events. Since AV equipment is so expensive and only necessary once in a blue moon, local event planners and individuals prefer to rent than buy. 

Again, this is one of those industries that doesn't necessarily mean that you have to have the biggest sound systems or latest camera equipment; you can also start small and offer smaller speakers, mic setups, and smoke machines and build your way up.

This is also an ideal business model if you already own many of these things, whether because of your hobbies or something else. So while you're not using your equipment, you can just rent it out and ensure you're getting your money's worth of your investment.

Bounce house rental business

Bounce house rental businesses are becoming increasingly popular, especially among parents of young children. These businesses provide inflatable bounce houses for rent, often for birthday parties or other events — private or public.

They are usually staffed by one or more people who set up the bounce house and supervise it during use. Many bounce house rental businesses also offer other inflatable products, such as slides and obstacle courses.

Whether you're looking to add some excitement to a kids' birthday party or want to relive your childhood at a variety of events, a bounce house rental business can provide hours of fun for all ages.

Kitchen equipment rental business

It isn't a party without any food, right? One key tip to keep in mind with this particular business is that less is more. Rather than buying every kitchen equipment and utensil, only buy the essentials that most clients are asking for. Otherwise, you risk collecting useless inventory. 

These are just a few different party rental business types. Other ones that have been gaining popularity recently:

Event venues

Catering companies

Photobooth rentals

Glamping and tent rental services

Seasonal event rentals (e.g., Christmas decorum)

Birthday decoration rental services

Do market research

A party rental business is a simple business idea that can make good money, especially when done full-time. As much as you can dive in headfirst by buying equipment and advertising your party rental company, it would be wise to understand how the industry works. This includes:

researching the market

getting contacts for wholesalers and other people in the industry

figuring out where to acquire the necessary supplies

You can't forget that no successful party rental business can fly without a solid business plan and go-to-market strategy .

Despite a lucrative industry, you might not get the best out of it without proper market research. The best way to do this is to determine who requires event rental services and define your target audience.

Since this is a diverse industry, your target market might be found in the most unexpected places like sports organizations, prominent business people, religious organizations, and cultural centers, to mention a few. Market research will help you establish clients' different preferences and needs and offer the best services for your potential customers.

→ Get started with our guide to financial planning and budgeting .

Identify your main competitors 

As mentioned earlier, this is a fast-growing industry with a lot of demand. It will have an influx of rental businesses that operate in your area. Find out who your main competitors are, what they're doing, and what makes them successful – this will also give a pretty good idea of what kind of demand there is for different services.

If you're just starting and there's a prominent competitor in your area, don't be discouraged! Having already successful rental companies within reach can prove to be beneficial for you. Since they're already attracting potential customers to your area, or if people are already searching for similar services online, you can almost piggyback off of their visibility, so identify what's missing in their offering or services and do it better.

Establish a legal entity for your business

You've four main choices when deciding how to run your business legally. They are listed below. Note that there are differences in the business entity legislation from country to country. So, consider these more general guidelines, and at the end of the day, always rely on your local authorities. That being said, let's move on.

Partnership

Corporation

Sole proprietorship

Limited Liability Company (LLC)

Each of these structures has its pros and cons. But which business structure is best for a party rental business?

A business partnership is a good choice if you start a business with someone else. However, this form of a company makes you financially responsible for your partner's actions.

A corporation can be a good choice for some businesses because they separate your business assets from your personal property and assets. However, this business structure is far more complex to set up and maintain.

So, this leaves you with two of the more common options that party rental business owners typically choose: sole proprietorship or LLC.

Setting up as a sole proprietor is easy and inexpensive. However, if anything happens to the business, you are personally liable. So think this through carefully.

However, setting up a limited liability company (LLC) protects your personal assets in the event of any business problems or debts. This liability protection makes LLCs a good choice for party rental businesses.

Register for taxes

Before opening your own party rental business, you must register for state and federal taxes. You'll need an Employer Identification Number (EIN) to do this. These are easy to access through the IRS, via their website, phone, or mail.

Otherwise, it's essential to register your details because running a business in some states means you'll need to pay sales tax.

Depending on which legal entity you choose, you may have some options about how you are taxed. You can read more about this on the IRS website.

Set up a business bank account

You should always have separate bank accounts for your business and personal spending. There are a few good reasons for this, but primarily it:

keeps your personal assets protected

helps you accurately track your business account

doing your taxes is much easier

Some new business owners make the mistake of not having a separate bank account. But it's vital to do, especially if you want to build up business credit to help with cash flow or eventually secure expansion loans with low-interest rates.

Party rental business insurance

To ensure long-term party rental business success is to get insurance.

General liability insurance : This type of insurance helps protect you and your business from third-party claims of bodily injury or property damage. Accidents can happen due to the typical environment and risks involved in party rentals. So, general liability insurance is essential.

Worker's compensation insurance : Setting up parties and building event venues happens in an environment where something can always go wrong – no matter how careful you and your employees are. Therefore, you will need an insurance policy that protects your workers in case of accidents.

Create a party rental website

Having a website is essential to reaching your target audience effectively. Without an online presence, you miss the opportunity for local search and digital marketing opportunities, which are some of the best ways to boost brand awareness.

Unlike selling and the linear business model, the rental industry requires tools and processes to support the business with bookings, inventory management, and payment-related aspects, like deposits.

A complete guide on creating a stunning party rental website →

Luckily, these days there are user-friendly website builders with all the features you need to build a professional-looking website via drag-and-drop interfaces. You don't necessarily even need a separate website builder and hosting because Twice provides small businesses with a ready-made rental website . It's easy to customize, SEO optimized and comes with an integrated online booking calendar and payment processing – everything in one platform.

However, if you prefer another website builder, check out Squarespace — it makes building beautiful party rental websites super easy.

What makes a great website?

A good party rental website must deliver relevant information effectively, be visually appealing, and function flawlessly. Your website should have straightforward navigation and structure , as these aspects lay the foundation for an overall good user experience .

Furthermore, ensure your website has high-quality photos to give your customers a sense of feeling of the events you have arranged, compelling copywriting , transparent pricing details, and clear contact information. To increase online sales, you should also keep the checkout of online bookings as straightforward as possible.

What makes a good eCommerce website →

Because the inventory circles back and forth rather than moving linearly (like in retail), it's a more complex process that requires rental-specific tools, which usually cannot be found in traditional e-commerce platforms.

You can start by integrating party rental software into your website to make managing your bookings easier. In the long run, investing in software that is made specifically for renting will ensure that you can have a real-time inventory management tool that will help avoid double-bookings, have inventory-related analytics, offer your customers the option to pay in advance, set up deposits to prevent monetary loss, and so on.

Marketing plan

You'll need to plan your marketing efforts and advertising strategies to get your business off the ground and running. Party rental businesses can take several approaches here, but below, you'll get some ideas of the most cost-effective tactics to acquire new customers.

Pay-per-click (PPC) ads are a great and cost-effective way for small businesses to promote their products and services and acquire new customers . With a little effort, you get a massive reach, and the best part is that you don't need to spend a ton of money to get great results.

Different ad platforms offer various possibilities to reach your customers when and where they are ready to do business with your company. These platforms use their knowledge of your audience's demographics, interests, and geographical location to deliver your ads to the people they think are the most interested in your products and services.

You can, for example, deliver ads on search engines when people type in specific keywords you target or create custom audiences on social media platforms to target with more creative messaging.

Here's why and how you can get started with Facebook ads →

Partnerships

Partnerships are a great way to find synergies between companies that complement each other's offerings. For example, a party rental business can partner up with a catering company to extend the offering and make it more convenient for the customers as they can book everything they need from one place.

Social media marketing

We live in the day and age of social media. Whether advertising on different platforms or generally just sharing your customers' experiences and what your business has been up to, it's the easiest way to stay in touch with your current and potential customers.

Having a community in business means that your brand is already established and you have loyal customers who will buy your services anytime they need to. However, the main challenge is building that community.

One excellent way is by making the best out of your social media platforms. Using social media to connect with your customers or share experiences from your work is bound to attract followers and potential customers.

At the end of the day, people want to know the people behind the brand and are interested in seeing how everything works behind the scenes, so don't be afraid to get up close and personal with your content.

Search Engine Optimization

People search for information about local businesses, services, sights, and experiences online. The key to success in SEO is to understand people's search intent.

Search engines are likely the first place where people start finding information about companies that offer event planning and rental services in their area. As party rentals are local companies by nature, you must optimize your website and other online touchpoints for local searches .

If you need more ideas and inspiration to market your business, check out the 12 digital marketing strategies that every business owner should know .

How to choose the right rental equipment for your party rental company

No one gets into this business with expectations of closing it down shortly. We all hope our businesses will keep climbing to greater heights. 

And it is for this reason, you should be keen when selecting the equipment you will be renting, whether it's chairs, tables, sound, or cooking equipment. Remember: it's an investment. You don't want to go back and buy the same thing just a few months after you initially bought it.

While there are many things you should consider before investing in a piece of equipment, here are some main factors you should keep in mind.

Product demand and fit

This is the first thing you have to mind. Since this is a business venture, you should only buy equipment that will increase your party rental business's profitability.

Depending on what kind of party or event rental business you're running, your products' demand might highly depend on trends and seasonality.

The location also has a lot to do with your offering. If your customer base is located in the heart of the city and needs to rent out a space for an event, they'll most likely need basics like matching chairs and table sets, canopies, cutlery, and decoration.

If you operate in the suburbs, your customer base is more likely to own some of the things they might need but still be on the lookout for something special, like themed decorations, inflatables, sound systems that fit a festival, and so on.

As mentioned earlier, you are in business to stay, so whatever equipment you need in the company should be durable. You don't want to buy chairs and tables that will break during the first party and disappoint your customer's guests.

Since, occasionally, parties tend to get rough, you'll need equipment that can withstand day-to-day wear and tear. Ask yourself: will this equipment handle the test of time and grow with you? Is it future-proof? These questions will help you pick gear that will serve you for a long time and give a lot of value for your money.

Maintenance cost

An essential part of running a rental business, especially if we're talking about small companies just getting started in the party rental industry, is managing the inventory. Purchasing equipment is one part of inventory management and getting started, and the other is maintenance.

To put it short: the longer your products last and can be utilized, the more profit you will get.

So, in addition to making sure that you're purchasing equipment relevant to your target market, make sure that they're high-quality and serve you a long time. Consider also the spare parts that you might need for them.

Let's say you have a luxurious, high-tech sound system up for rent, and something happens to it. Repairing costs and replacing some parts can become extremely costly and a loss-making product for your business. For example, having products from the same brand often makes finding spare parts much easier and cheaper.

Check out our guide on choosing the perfect products for your rental business →

How to grow your party rental business

If you've already got some wins, you might be wondering where to go from there. Here are a few ideas on how to give your party rental business the boost it needs to grow to the next level.

Additional services

There are many options for complementing party rental equipment with services. Some relevant examples include offering delivery, building, and dismantling services. You can choose to have the cost of the work to the price of the rental equipment, but it might be a good idea to offer it as an extra service. It depends obviously on the type of equipment you rent.

Other possibilities include offering design services, catering, program planning, etc. You need to pay great attention to the quality of these services as they determine your business reputation and customer retention. Nothing puts a customer off more than a late delivery or an event that didn't match expectations. 

The biggest tragedy in any business is not telling a client about all your services. And this is a mistake that most people in the party rental business make. Upselling is a powerful business technique for generating more revenue.

Upselling confirms how well your company understands your customers' needs. Do they know that décor services are also a package you can provide?

Sometimes, up-selling might even be where the real money is made in your business. Aside from increasing revenue, upselling also increases customer loyalty since people buy more from you.

Give your customers real-life examples

This is another upselling trick. Most customers only believe in you after seeing what you can do. So use photos and reviews from other clients to give your clients a picture of what they can expect from you.

For example, if you have a décor package, show them photos of previous décor themes that you used and left your clients pleased. Pro tip: social media is also an excellent channel for this.

Build a strong customer care team

The most significant resource in your business is your workers. This is why you should continuously invest in them since they are the face of your business to the world. They are the ones who deal directly with your clients both in-person and online.

Teach them how to spot upselling opportunities and tie them back to solving the customer's problems. You can even arm them with tools that help them convince customers of your upsell offer. For example, a tablet to show off your portfolio. Lastly, offer incentives (for example, a sales commission) to your employees to keep them excited and motivated about upselling.

New Locations

Opening second locations is one of the best ways to scale the business. Finding new locations will, in turn, help you reach more people. However, don't forget to do some geographical research to see whether your services are needed in a given region.

The demand for party supplies is increasing in all cities across the globe. However, the competition is also stiff. But don't let that scare you. The market could always use a new perspective.

If you treat your customers with care and conveniently offer what they need for their parties at reasonable prices, you'll have a hard time keeping up with the demand!

Make anything rentable in just a few clicks.

Article written by Eliisa L.

The storyteller that spends her time in the studio, outdoors, or creating the best, most relevant content for rental shops.

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How to Start a Party Rental Business

A party rental service helps people add a little more spice to their events. Children’s birthday parties are made more fun with a bouncy house, fundraisers make more of a splash with a dunk tank, and weddings get more elegant with a styled tent. Party rental businesses help hosts and hostesses everywhere create lasting memories for themselves and their guests.

Learn how to start your own Party Rental Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a party rental business by following these 10 steps:

• Plan your Party Rental Business
• Form your Party Rental Business into a Legal Entity
• Register your Party Rental Business for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Party Rental Business
• Get the Necessary Permits & Licenses for your Party Rental Business
• Get Party Rental Business Insurance
• Define your Party Rental Business Brand
• Create your Party Rental Business Website
• Set up your Business Phone System

We have put together this simple guide to starting your party rental business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Party Rental Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your party rental business?

Business name generator, what are the costs involved in opening a party rental business.

Costs can be quite high. You’ll need to buy all of the equipment to start, and then find a place to house it. Just a single tent can cost thousands of dollars. Party rentals don’t necessarily need a retail space, but you may need one to establish credibility to would-be customers. If you can’t afford to rent a retail space, you can store the equipment in a storage facility, and then have appointment-only showings to potential renters.

What are the ongoing expenses for a party rental business?

You can expect the following ongoing expenses if you own a party rental business:

• Equipment maintenance/replacement costs
• Rent/storage fees
• Employee salaries
• Website maintenance/advertising costs

Who is the target market?

The target market depends on where you’re located. If you’re operating in or near a high-income neighborhood, then your clients will likely be homeowners who throw elaborate events for themselves and their loved ones. If you’re in a middle-class neighborhood, you may find that your clientele are the larger organizations (e.g., schools, the VA, community boards, etc.) holding major gatherings from fundraisers to festivals.

How does a party rental business make money?

Party rentals make money by purchasing equipment at wholesale prices and then renting that equipment out for a set fee. Renters will normally pay a deposit or leave their credit card information to cover any accidental or intentional damage the equipment may suffer while the renter has it in their possession.

This is heavily dependent on where you work. Check rates in your area to see what other businesses are charging before you set your fees in stone. In Michigan, a 20 x 20 foot wedding tent costs $3500 dollars to start and rents for about $225 per weekend. In a wealthier city, you may be able to charge double this amount.

How much profit can a party rental business make?

Your profit is determined by how long your equipment lasts, and how much you charge for each rental. In the case of the wedding tent, you would need to rent a $3500 tent (at $225 a weekend) for at least 16 weekends before you started seeing a profit. However, seeing as how a wedding tent can handle far more than 17 weekends, then you enjoy practically unlimited profit after that.

How can you make your business more profitable?

Party rental businesses can consider branching out into everything that an outdoor event may need. From portable toilets to caterers/bartenders, there's a lot of needs to be met for the many party throwers of the world.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your party rental business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a party rental business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Certificate of Occupancy

Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a location :
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a party rental business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
• If you plan to purchase or build a location :
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business’ location to ensure your party rental business will be in compliance and able to obtain a CO.

Services Contract

Party rental businesses should require clients to sign a services agreement before starting a new project.  This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations, and intellectual property ownership.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Party Rental Business needs and how much it will cost you by reading our guide Business Insurance for Party Rental Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a party rental business

The best way to promote yourself is to start networking with the major organizations—even if your primary market is personal parties. The more you make yourself well known to the party planners of the major events, the more likely it is your name will start to trickle down to the home planners in the area. In addition to forming personal relationships, create a professional website built with the most popular search terms in mind. Once you know what the big draws are in your area (e.g., sporting equipment, luxury toys, etc.), then you can feature those items prominently on your website to hook more people to your services.

How to keep customers coming back

Excellent customer service and quality equipment will attract people back to you. Ensure all deliveries are on time, and that each item is delivered as promised.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

This business is excellent for people who enjoy event planning, and who have an appreciation for and understanding of the party equipment that’s on the market today.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a party rental business?

Party rental owner can expect the following to-do list on any given day.

• Researching equipment
• Preparing rental contracts
• Selling rentals to customers
• Repairing and replacing equipment
• Advertising and marketing the business

What are some skills and experiences that will help you build a successful party rental business?

It helps to have some experience with party planning before you go into this business. You’ll also need to be detail-oriented and highly organized. Party rentals can get messy when equipment is damaged, so your verbal communication and written contracts need to address potential problems before they have a chance to become full-blown catastrophes.

What is the growth potential for a party rental business?

Growth is highly dependent on the area you serve. If you’re catering more to larger organizations in your area, there may be only a few events they throw a year around the holidays. On the other hand, birthdays, retirement parties, and promotions are everyday occurrences, meaning you’ll have a larger business if you service the full neighborhood.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a party rental business?

The best advice for party rentals is to start thinking outside the box. Maybe the people in your area can't afford to spend $100 an hour on an expensive jet ski for a water-themed birthday party, but they can afford to pool their money together to rent a boat to go tubing on the lake. You can rent the boat to party goers, and safety equipment to each person attending. If you live near a ski resort, consider renting skis at group rates for ski parties.

Write up your customer contracts very carefully before you start renting, and ensure they're iron-clad in case of any legal disputes. And while it may be difficult to do, you'll need to invest in quality equipment. The only way you'll become profitable is to get durable goods that can last you through party after party. If you don't have a lot of start-up capital, you can even consider 'renting out' party characters rather than physical equipment. Hire a few talented actors in your area to dress up for children's birthday parties, and then use the profits to start saving money for more physical equipment. Just remember that there are plenty of things that people love to do for the day, but won’t necessarily do again for another year.

Everyone knows what it's like to buy something expensive and then never use it. Your job is to show potential customers that it makes far mores sense to rent equipment for parties than to buy. Being flexible and persuasive are two of the best ways you'll get your business off the ground.

How and when to build a team

You’ll likely only need a team if you’re planning on being open 7 days a week in a big rental space. Generally, you can consider doing limited hours or appointment-only rentals to start, so you can save yourself the cost of employees salaries. Just ensure that if you do appointment only, your customers can count on you to get back to them quickly and to schedule an appointment on their schedule and not yours.

Useful Links

Industry opportunities.

• American Party Rental Association
• True Value Company (Rental Franchise)
• Party Princess Productions (Franchise)

Real World Examples

• Party Perfect -- Richmond, Virginia
• Party Rental Ltd. -- Teterboro, New Jersey
• Colorado Party Rentals -- Denver, Colorado

Further Reading

• Should I Start My Own Party Rental Company

Have a Question? Leave a Comment!

Sample Party Rental Business Plan

Party supply rental business plan sample.

We all love parties, could be because of the happy faces, the music, the food and drinks, the merry nature of the party or the opportunity to network with like minds. People will always have something to celebrate no matter the economic situation, so this is a very good business to do.

Apart from the juicy income associated with wedding party rental business , you can run it part time and you get the chance to meet high class people. Though most of the skills required to run the business are soft skills you already have, ability to communicate well, a likeable personality, good leadership skill, and orderliness are vital to this business.

You will need a business plan if you are going to do this professionally, it will give you a guide and should you ever need a loan, it will be a compulsory requirement. Do not worry if you don’t know how to write a business plan, here is a sample from which you can make your own.

Need to write a plan for your venture? Download a FREE Business Plan PDF Sample to develop a template for your own startup.

Here is a sample business plan for starting a party table and chair rental business.

Name of business Kings and Queens® Party Rentals, LLC

Table of Content

Executive Summary

Products and Services

Vision Statement

Mission Statement

Business Structure

Market Analysis

• Cost of starting
• Source of capital

Kings and Queens® Party Rentals, LLC is a party rental service company that will be based in the ever active city of Chicago. We have successfully secured a space in strategic area in Chicago which will serve as our business base, we have been licensed as a standard business and have permit to begin operations immediately.

We will supply a wide range of party equipment for the fulfilment of our client’s occasion and we will do so for all kinds of events. Our services will come at a price that customers will find affordable because we will have different classifications of services which we will show to clients who will pick the one they can afford comfortably.

We will connect with the best manufacturers of the equipment we need to run our business and buy from them so that when our clients and those they invite for the events see the quality of the supplies, they will have no choice but to ask for the contact of the party rental company that made it possible.

Our aim is to satisfy all those who make the smart choice of patronizing us and be one of the leading party rental brands in the city of Chicago in less than five years of operation. This may look like a tall dream but we are confident of achieving it because we have studied the already competitive party rental industry and we have seen how the top companies operate, we have taken note of the areas where customers complain of poor service and will use that information to our advantage.

Kings and Queens® Party Rentals, LLC is founded by Alex Bohemia. He is a graduate of Harvard University and has over 18 years experience in the party rental industry and has held many leadership positions in the top companies before deciding to start Kings and Queens® Party Rentals, LLC. With his expertise, we are sure to meet and surpass expectations.

We will offer a wide range of services within the scope of the industry. Kings and Queens® Party Rentals, LLC will provide the following services;

• Birthday rental
• Wedding supply rental
• General party supply rentals such as plates, canopies (  tent hire   ), cutlery, red carpet, loud speakers, tables and chairs, cameras, and many more.
• Corporate event rentals
• Barbeque rentals
• Outdoor party rentals

Our vision is to build a party rental company that will offer world class services and be the most sought after in the city of Chicago and the United States as a whole.

To position Kings and Queens® Party Rentals, LLC as the leading brand in the party rental industry and be ranked among the top 3 under five years of operation.

Kings and Queens® Party Rentals, LLC is a business that is focused on excellence so, our workforce will be equipped with the best and most qualified hands in the industry to build the business of our dream. Here is what our business structure will look like;

• Chief Executive Officer
• Party rental manager
• Human resources manager
• Sales and marketing officers
• Customer service personnel
• Bus drivers
• Security personnel

Our target will be potential couples, religious organizations, schools, and every other body likely to host parties.

We will use printed, electronic and social media platforms to publicize our business.

Cost of Starting

The sum of $380,000 will be needed to startup, this should cover all equipment and salary of workers for the first three months.

Sources of Capital

The founder will be the chief source of funds for the business.

Conclusion Alex Bohemia and his immediate family members will run the business and will only be open to partnership after six years of operation.

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How to Create a Business Plan for Your Party and Events Rental Business

When it comes to starting a new business endeavor , you need to make sure that you have a firm foundation to build upon. An event rental business plan is an essential document that you can refer back to as the company grows or shifts over time.

However, it is also a key piece of the puzzle if you are attempting to get a small business loan from the bank. You need to prove that your party and events rental business can turn a profit so that the lender can rest easy about their investment in you. With a party rental business plan in hand, you can make a great first impression.

Let’s look at the different sections your business plan should include:

Industry Overview

The foundation of your business plan begins with the industry overview. This overview doesn’t have to be a long section of your plan, but it should be enough to give lenders an idea of why your particular business could be profitable.

In this section, you will list specific statistics about the industry as a whole, revenue expectations, and growth percentages for your particular area.

Executive Summary

In your party tent rental business plan, you will want to have a small section for an executive summary. This key component of the business plan details why you want to start this business, a short biography about why you are the best person to run the company, and a brief description of the services you plan to provide.

Keep in mind that this is meant to be just a summary and does not need to be too lengthy. You may have the best success writing this section last. Once you have a firm idea of what else is included in the business plan, summarizing it should be simple.

Service List

If you want to make a great impression with your business plan, you need to have a clear idea of what services your company will provide. Most party and event rental companies offer tents and other items that are easily rented by customers. However, you may want to consider renting out additional items such as:

• Tablecloths, napkins, and other linens
• Centerpieces
• Tables and chairs
• Audio or visual equipment

In a tent rental business model, you might have an extensive list of equipment that you need to purchase to get your company off the ground. Make sure to thoroughly list all of the rental services you intend to offer to potential customers in this section of your business plan.

This list also gives the lender some idea of how much initial capital you will need to get the company off the ground.

Mission Statement and Vision

While the other parts of your event rental business plan are likely to be focused on the services and bottom line, you also need a clear idea of where your business is headed. Relaying your vision and mission statement clearly is essential. This section is the area where you will set long-term goals for the company.

Keep in mind that you are here to run a business, so this section can focus on the growth you hope to see in the market and how you can become a leader in the event and party rental industries.

Structure and Roles

Who is going to help you run your business? Even if you are the sole employee, you need to be very clear on what roles you will play within the company. You might be the CEO but also be in charge of the day-to-day operations. However, if your organization isn’t limited to just you, then you will need to define the roles within your company.

SWOT Analysis

The chances are that you have heard of the SWOT analysis before, even if you haven’t done one for your event rental business plan. It stands for strengths, weaknesses, opportunities, and threats. The primary goal of this section of the party rental business plan is to demonstrate how your company will fare in the marketplace.

Where will your business shine, and where will you face more struggles? It is a good idea to be as specific as possible about the strengths of your business. However, you may want to be a little vague about the potential weaknesses of the company. For example, you might cite more competition as the major weakness for your company.

Marketing Strategies

How will your business get in front of more people? There should be a dedicated section in your tent rental business plan about your marketing strategies.

In this section, you can include print materials or advertisements in local publications. You might also include the costs of creating a website, investing in search engine optimization, and paid social media advertisements.

Under this section, you should also identify who you are marketing to. Does your event rental business cater to party-planning professionals, wedding planners, or a unique section of the local population? Narrowing down who you are marketing to helps you to spend your advertising budget wisely.

Sales Forecast

When it comes to securing a loan for your tent rental business model, the lender wants to know how you plan to make money. If you haven’t yet opened the doors to your business, predicting this can be a bit of a challenge. You may have to base your sales forecast numbers on the industry averages for your local area.

Of course, your business will hopefully grow over the first years of operation. As a result, most business owners will want to include separate sections for their first, second, and even third year in business.

This segmented approach allows you to account for the initial investment in equipment such as tents and tables so that you can demonstrate how much more profit you will make in subsequent years of operation.

Pricing Strategy

Whether you have to purchase all new equipment or already own some of the materials, it is crucial to outline how your business will make money. Compare how much you will rent out your party supplies with how much of an investment you must make in them.

This section is also the place to sort out the details regarding additional fees you might charge and how deposits for your rentals will be handled.

Business Expenses

No business plan would be complete without a closer look at how much money you will spend on your expenses. This assessment can include the initial startup costs of purchasing tents, tables, and chairs. It also includes any month-to-month expenses such as storage rentals or operational costs such as rental management software.

Once you know what you expect to spend on your business, it can be easier to justify a business loan to the bank and prove that your events rental business will start to turn a profit quickly. Take your time filling out this section making sure that everything you need is included.

Software for Success in Your Rental Business with Quipli

A business plan for your party and events rental business is essential, but you will also need something to help you manage on a day-to-day basis. Quipli provides software that makes it easier than ever before to manage your inventory online, accept customer payments, and track your equipment rentals.

Learn more about the best features Quipli has to offer your rental business by scheduling a demo of our software today!

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About the author

Kyle Clements is the Founder & CEO of Quipli, a provider of modern software for independent equipment rental companies. Kyle has a decade of software startup experience and has been part of several successful ventures that have become publicly traded or been privately acquired, such as Uber and Clutch Technologies. In the past few years, Kyle has completed thousands of customer interviews understanding needs and trends in the growing equipment rental market. Kyle brings a unique perspective to the equipment rental industry and is passionate about partnering with independent equipment rental companies to run their operations more effectively and assist them in creating an impactful experience for their customers.

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How to Start a Party Rental Business

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I. Answer a few quick questions on your business. It takes 2 minutes, tops.

II. Our team will reach out immediately to take you through a demo of Quipli.

III. Once you’re up and running with Quipli you’ll wonder how you ever managed without it.

How to Start a Profitable Party Rental Business [11 Steps]

Business steps:, 1. perform market analysis., are party rental businesses profitable, 2. draft a party rental business plan..

Creating a business plan is a crucial step when starting a party rental business. It will serve as a roadmap, outlining your business objectives, strategies, and financial projections. Below are key elements to include in your draft:

How does a party rental business make money?

3. develop a party rental brand., how to come up with a name for your party rental business, 4. formalize your business registration., resources to help get you started:, 5. acquire necessary licenses and permits for party rental., what licenses and permits are needed to run a party rental business, 6. open a business bank account and secure funding as needed., 7. set pricing for party rental services., what does it cost to start a party rental business, 8. acquire party rental equipment and supplies., list of software, tools and supplies needed to start a party rental business:, 9. obtain business insurance for party rental, if required., 10. begin marketing your party rental services., 11. expand your party rental business..

Event Rental Business Plan Sample PDF Example | Free Download Presented by BizMove

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Checklist for Starting a Event Rental Business: Essential Ingredients for Success

If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a Event Rental business. This will allow you to predict problems before they happen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!

For more insightful videos visit our Small Business and Management Skills YouTube Chanel .

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How to Forecast Your Profits

Forecasting, particularly on a short-term basis (one year to three years), is essential to planning for business success. This process, estimating future business performance based on the actual results from prior periods, enables the business owner/manager to modify the operation of the business on a timely basis. This allows the business to avoid losses or major financial problems should some future results from operations not conform with reasonable expectations. Forecasts - or Pro Forma Income Statements and Cash Flow Statements as they are usually called - also provide the most persuasive management tools to apply for loans or attract investor money. As a business expands, there will inevitably be a need for more money than can be internally generated from profits.

Facts Affecting Pro Forma Statements

Preparation of Forecasts (Pro Forma Statements) requires assembling a wide array of pertinent, verifiable facts affecting your business and its past performance. These include:

Data from prior financial statements, particularly:

a. Previous sales levels and trends

b. Past gross percentages

c. Average past general, administrative, and selling expenses necessary to generate your former sales volumes

d. Trends in the company's need to borrow (supplier, trade credit, and bank credit) to support various levels of inventory and trends in accounts receivable required to achieve previous sales volumes

Unique company data, particularly:

a. Plant capacity

b. Competition

c. Financial constraints

d. Personnel availability

Industry-wide factors, including:

a. Overall state of the economy

b. Economic status of your industry within the economy

c. Population growth

d. Elasticity of demand for the product or service your business provides ( Demand is said to be "elastic" if it decreases as prices increase, a demonstration that consumers can do without or with less of the goods or service. If demand for something is relatively steady as prices increase, it is "inelastic.")

e. Availability of raw materials

Once these factors are identified, they may be used in Pro Formas, which estimate the level of sales, expense, and profitability that seem possible in a future period of operations.

The Pro Forma Income Statement

In preparing the Pro Forma Income Statement, the estimate of total sales during a selected period is the most critical "guesstimate:" Employ business experience from past financial statements. Get help from management and salespeople in developing this all-important number.

Then assume, for example, that a 10 percent increase in sales volume is a realistic and attainable goal. Multiply last year's net sales by 1.10 to get this year's estimate of total net sales. Next, break down this total, month by month, by looking at the historical monthly sales volume. From this you can determine what percentage of total annual sales fell on the average in each of those months over a minimum of the past three years. You may find that 75 percent of total annual sales volume was realized during the six months from July through December in each of those years and that the remaining 25 percent of sales was spread fairly evenly over the first six months of the year.

Next, estimate the cost of goods sold by analyzing operating data to determine on a monthly basis what percentage of sales has gone into cost of goods sold in the past. This percentage can then be adjusted for expected variations in costs, price trends, and efficiency of operations.

Operating expenses (sales, general and administrative expenses, depreciation, and interest), other expenses, other income, and taxes can then be estimated through detailed analysis and adjustment of what they were in the past and what you expect them to be in the future.

Comparison with Actual Monthly Performance

Putting together this information month by month for a year into the future will result in your business's Pro Forma Statement of Income. Use it to compare with the actual monthly results from operations. Preparation of the information is summarized below:

Revenue (Sales)

List the departments within the business. For example, if your business is appliance sales and service, the departments would include new appliances, used appliances, parts, in-shop service, on-site service.

In the "Estimate" columns, enter a reasonable projection of monthly sales for each department of the business. Include cash and on-account sales. In the "Actual" columns, enter the actual sales for the month as they become available.

Exclude from the Revenue section any revenue not strictly related to the business.

Cost of Sales

Cite costs by department of the business, as above.

In the "Estimate" columns, enter the cost of sales estimated for each month for each department. For product inventory, calculate the cost of the goods sold for each department (beginning inventory plus purchases and transportation costs during the month minus the inventory). Enter "Actual" costs each month as they accrue.

Gross Profit

Subtract the total cost of sales from the total revenue.

Salary Expenses: Base pay plus overtime.

Payroll Expenses: Include paid vacations, sick leave, health insurance, unemployment insurance, Social Security taxes.

Outside Services: Include costs of subcontracts, overflow work farmed-out, special or one-time services.

Supplies: Services and items purchased for use in the business, not for resale.

Repairs and Maintenance: Regular maintenance and repair, including periodic large expenditures, such as painting or decorating.

Advertising: Include desired sales volume, classified directory listing expense, etc.

Car, Delivery and Travel: Include charges if personal car is used in the business. Include parking, tolls, mileage on buying trips, repairs, etc.

Accounting and Legal: Outside professional services.

Rent: List only real estate used in the business.

Utilities: Water, heat, light, etc.

Insurance: Fire or liability on property or products, worker's compensation.

Taxes: Inventory, sales, excise, real estate, others.

Depreciation: Amortization of capital assets.

Other Expenses (specify each): Tools, leased equipment, etc.

Miscellaneous (unspecified): Small expenditures without separate accounts.

To find net profit, subtract total expenses from gross profit.

The Pro Forma Statement of Income, prepared on a monthly basis and culminating in an annual projection for the next business fiscal year, should be revised not less than quarterly. It must reflect the actual performance achieved in the immediately preceding three months to ensure its continuing usefulness as one of the two most valuable planning tools available to management.

Should the Pro Forma reveal that the business will likely not generate a profit from operations, plans must immediately be developed to identify what to do to at least break even - increase volume, decrease expenses, or put more owner capital in to pay some debts and reduce interest expenses.

Compare your budget periodically with real operations figures. With powerful records you can accomplish this. Then, where discrepancies show up you can take corrective actions before it is too late. The right choices for the ideal corrective action will depend upon your understanding of management techniques in buying, pricing, selling, selecting and training personnel, and handling other management problems. You probably are thinking you can employ a bookkeeper or a Accountant to deal with the record keeping for you. Yes, you can. But remember two very important facts: 1. Provide the accountant with true input. If You Purchase something And do not record the sum in your organization checkbook, the accountant can't enter it. If you sell something for money and don't record it, then the accountant will not understand about it. The records the accountant prepares will probably be no greater than the info that you provide. 2. Utilize the documents to make decisions. If you moved to a physician And he told you you were ill and wanted certain medicine to get well, you'd follow his guidance. Should you pay an accountant and he informs you your earnings are down this season, don't hide your head in the sand and pretend that the problem will go away. It won't. Business Management Roll in Personnel Selection. If your Small Business Will be large enough to require external help, an important duty will be the choice and training of one or more employees. You may start out with relatives or business partners that will assist you. But when the company grows - as you expect it will - that the time will come when you must select and train employees. Careful choice of employees is essential. To Pick the right Employees determine beforehand what you need each one to do. Then look for applicants to fulfill these specific needs. In a small Business you will need flexible employees who can shift from task to task as needed. Include this in the outline of those tasks you would like to fill. At precisely the same time, look ahead and plan your hiring to assure an organization of individuals capable of accomplishing every essential role. In a retail store, a salesperson may likewise do stock-keeping or accounting at the outset, but as the company grows you'll need sales people, stock-keepers and bookkeepers. When the project descriptions are composed, line up applicants from whom To make a selection. Do not be swayed by customers who may suggest relatives. If the applicant doesn't succeed, you may lose a customer as well as a worker. Some sources of possible new employees are: 1. Tips by friends, business acquaintances. 2. Employment agencies. 3. Placement bureaus of high schools, business schools, and schools. 4. Trade and industrial associations. 5. Help-wanted ads in neighborhood newspapers. Your next task is to screen want ad answers or program Forms sent by employment agencies. Some applicants will be removed sight unseen. For each of the other people, the application form or letter will act as a foundation for the interview which should be conducted in private. Put the applicant at ease by describing your business in general and the job in particular. Once you have completed this, encourage the applicant to speak. Selecting the proper person is extremely important. Consult your questions carefully to find out everything about the applicant that's pertinent to the job. References are a must, and should be assessed before making a final decision. Check through an individual visit or a telephone call directly to the applicant's immediate previous supervisor, whenever possible. Confirm that the advice given you is correct. Consider, with conclusion, any negative comments you hear and what isn't said. Checking references can bring to light important information Which may help save you money and future inconvenience. Personnel Training. A well-selected employee is only a possible Asset to your business. Whether or not he or she becomes a real advantage depends upon your training. Recall: To allow adequate time for instruction. Not to expect too much from The trainee in too brief a time. To allow the worker learn by doing under actual working conditions, together with close supervision. To follow up on your training. Check the worker's operation after he or she was in work For a time. Re-explain important points and short cuts; bring the employee current on new developments and encourage inquiries. Training is a continuous process which becomes excruciating supervision. Personnel Supervision. Supervision is the third essential of employees control. Fantastic oversight will lessen the cost of operating your company by cutting back on the number of employee errors. When errors are corrected early, workers will find more satisfaction from their tasks and perform better. Motivating Employees. Small businesses occasionally face special Problems in motivating employees. In a large business, a good employee can see An opportunity to progress into management. In a small business, You're the management. 1 thing you Might Wish to Think about is to provide good workers a Small share of the proceeds, either via part-ownership or a profit-sharing plan. Someone who has a"share of the activity" will be more Concerned about helping to make a success of the business.

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How To Start A Party Rental Business

The rental industry is all about supporting each other. Party rental companies target different customers and only need to compete with the few local companies in their area. This allows for an industry to grow from the support of one another. This article is not to be taken as a step-by-step guide to get your party rental company raking in millions. Instead, you should use this article as a tool to build a foundation for what will be a prosperous business. It will take time, dedication, resources, and a passion for the event industry. A large portion of our business and the products we offer are sold to rental companies and event venues. Knowledge of the rental industry and the plethora of information that is involved with it is something we feel should be passed along to our customers. If you are familiar with the industry, then some of this information may be familiar to you. Take what you will from it and pass it along.

Research Your Industry

Starting a business first requires researching your intended market. In the rental industry this consists of looking at your demographics, your competition, what your services should cost, and what the demand is for these services in your area. When researching the demographics, there are a few questions you should ask. For example:

Who are the current customers?

What is the purchasing power of your target customers?

What is the lifestyle of the customers you are trying to target?

Looking at your competition, will give insight on what methods work for them, how they operate, and the services and prices they offer. Do not copy your competitor’s business or you will most likely fail. In fact, you should try to think outside the box. Look at your competition not for a business strategy that can be copied, but as a way to see how you can do things differently. What can your party rental company offer that these other guys do not? When doing research, look around the city you will be doing business in. Are you only renting to customers in the same city? Perhaps you want to offer delivery services to the surrounding cities. What kinds of venues and how many are available in your neighborhood?

Look at your competition not for a business strategy that can be copied, but as a way to see how you can do things differently.

Develop a Business Plan

Before hitting the ground running, a business plan should be one of the first things you develop. You will need a clear strategy that defines your goals as a business and provides a road map for you as you start your journey to building your company and image. New businesses often neglect or even disregard creating a business plan because of its reputation for being an overwhelmingly difficult task. However , the only way to properly track progress and results is by laying out your company's plans on paper. It is also worth noting, that if you are needing business financing from a lender they will require a submitted proposal / business plan.

Your business plan should summarize your business and your overall goals as a company. You will also need to include an analysis of the rental market, a marketing and sales plan, a description of your products & services, and financial projections based on your market analysis. The best way to prevent your rental company from flopping is by planning ahead.

The only way to properly track progress and results is by laying out your company's plans on paper

Determine Your Starting Capital

There are a few ways to save and set aside funds as you’re starting capital for your rental business. The Small Business Administration lists a few ways to save cash when you are starting a business: Distinguish Needs from Wants 

Discipline yourself and determine the things that are necessary purchases and which ones can be put on hold. Invest in a coffee pot for your office instead of going to the coffee shop for that $3.50 coffee every morning. That adds up to an extra $875 a year in savings. Buy in Bulk When Possible

In this article, we talk about purchasing your rental equipment and the importance of not over-purchasing. However, if you know that you will need a certain level of inventory, it's typically cheaper to order everything at once. We provide affordable equipment financing to our customers that need product but may not have the cash to make the purchase all at once. Instead of buying 50 chairs to start and 50 chairs at a later date, financing the purchase allows you to order your full inventory all at once. This reduces overall shipping costs and wholesalers provide bulk discounts with the majority of these rental products. Factor In Your Expenses

When working on your budget, don't forget about the most important factor: YOU. This is assuming you will be attempting a startup party rental business head on and plan on dedicating all your time towards it. If you are not working another full-time or part-time job, your day to day living expenses will need to be handled. Whatever your current job pays you each month, it's recommended to have a three months salary saved in advance so your bills can still be paid while building your business.

Whatever your current job pays you each month, it's recommended to have a three months salary saved in advance so your bills can still be paid while building your business.

Purchasing Equipment

A large part of your initial costs for starting your rental company is the equipment you plan to rent to the public. Your business cards, website, and any other marketing materials are small costs compared to the cost of the equipment. You will need to sharpen your pencil and really focus on how to invest your startup capital. Here is a good list of items that several of our rental customers have purchased from us: 20 - 6 Ft. Rectangular Folding Tables 15 - 48" Round Folding Tables 15 - 60" Round Folding Tables 15 - Round Highboy Cocktail Tables 100 - White Plastic Folding Chairs 100 - Black Plastic Folding Chairs 100 - White Wood or Resin Folding Chairs Depending on your budget your tables can either be plastic or plywood. Plywood will be more durable and will allow you to rent more times before needing to purchase replacement tables, but the initial cost per table will be more. When shopping for folding chairs, you want focus on the structure of the chair. The cheap $9 folding chair will look almost identical to the $12 folding chair. However, some chairs use stronger steel than others, some have drain holes in the seats, stronger hinge plates, others use steel rivets instead of screws. Speak with someone that specializes in this type of commercial furniture and ask questions about the different types of chairs. This equipment is an investment for your future and you want it to give you the highest possible return on investment (ROI). It's also important to not over-purchase equipment. Most new rental companies start with tables and chairs. Long term, you may want to add popcorn machines, tents, umbrellas , portable dance floors, or Chiavari / Tiffany chairs . Again, don't over-purchase to start. Work up to adding these products to your rental line.

The equipment is an investment for your future and you want it to give you the highest possible return on investment (ROI).

Pricing Your Equipment

Once the equipment has been rented enough times to pay off any initial cost, your rental business becomes pure profit. When you researched the rental market in your area, you should have pulled pricing from your local competition to get an idea of what they price their equipment at.  Goodshuffle Pro advises you not to just look to your competitors’ pricing ; that should only be one component in the equation. If you decid to invest in the high-end equipment, but your competitors are renting the low-end equipment, your rental costs will not be the same. In fact, you will want to price your rental equipment higher to avoid losing money. 

It's important to market your products as a high-end commercial product if your prices are going to be higher than your competition, because customers will more than likely be price shopping and you need to give them a reason to rent the more expensive stuff. Most plastic folding chairs rent anywhere from $1.25 - $3.00 depending on your location. Folding tables rent anywhere from $7.00 - $15.00 depending on the size and material. Figure your cost of each chair and/or table, and determine how many times you will need to rent each piece before you start seeing profit.

Insurance and Liability

You've invested money into your equipment, and your company relies on this equipment. If you are storing your product in a warehouse or storage unit, you want to make sure your investment is insured in case of accidents or acts of God. Sometimes rented items come back damaged, or maybe they don't come back at all. Either way you want to be covered and not have to worry about these concerns. On top of property insurance, you will want to look into liability insurance for your rental business. Liability insurance can cover anyone that was injured while utilizing your equipment. This means protection to you against equipment failure, damage, breakage and personal injury accidents. Shop around and find agencies that specialize in party rental equipment and liability insurance.

Licenses and Permits

If you are planning on signing a lease for a commercial location, or if you plan to use your home to start, you will need a business license. Home businesses are subject to all legal permits and requirements like any other business. Posting business signs outside your house may require a sign permit, and there may be zoning restrictions in using your home as a business location. In addition to a business license, you will need a federal tax ID number, and a re-seller tax ID number. All new businesses must register as one of the following: Sole proprietor, Partnership, Corporation, or Limited Liability Company (LLC).

Building a Website

Several recent surveys show that over 45% of small businesses still don't have an online presence, and of the ones that do, only 6% bother giving a mobile experience to their customers. This is hard to believe seeing how the majority of consumers now do some form of search on the Internet prior to making a purchase. Every small business should have a website. It's cheap to set up, easy to maintain, and yet half of small businesses refuse to hop on board. Why? Your website is a form of exposure that can bring in a lot of business. Websites give your company a way to explain your products and services to the public without printing catalogs or mailing flyers out. If you feel you don't have the time to devote to this part of your business, then find someone who can manage this for you. A couple hours a week is all you need to maintain a website. 

Other than your website, it is also recommended to dedicate time towards social media. (Facebook, Instagram, Pinterest). The more effort you put into marketing your business using methods that involve word of mouth, an Internet presence, and social media, the less money you will spend long term. Long term, you will want to invest either time or funds to pay someone towards improving the visibility of your website on search engines when people are searching for your types of products and services.

Marketing to the Public

There are several directions you can take when it comes to marketing your rental equipment locally: Newspaper Advertising Search Engine Marketing (Pay Per Click). Signs and flyers Word of mouth from friends and family. Social Media (Facebook, Instagram, Pinterest, Twitter) You can also hand out business cards to other business owners or drive out to venues and speak with event planners. Several event planners rent equipment for their events instead of maintaining an inventory of their own. Whatever methods you go with, it's important to analyze your marketing data so you can track which marketing efforts are giving you a good ROI and which ones are draining your resources. The ones that don't give a good return can be scraped and that money can be put towards marketing efforts that work.

Going Above and Beyond

The holy grail of your business, and the only thing that will separate you from the rest of the competition: customer service. You will service all types, from customers looking to plan small backyard parties to corporate event planners. Whether they are a one-time customer, or they continue to purchase rental equipment from you, they all have one thing in common: they will give you the best advertisement for your business. This all depends on the level of customer service you can provide to them. The customer may not always be right, but they are the customer.  No matter how far you go to provide quality service, issues can still arise. It's important to be prepared for anything and handle the situation appropriately. Don't think of these service related issues as problems for you, but as an opportunity to show the customer you will go above and beyond to resolve anything. People appreciate this level of service from companies and they will tell others about what happened, and what you did to fix it.

I hope this guide serves as a useful tool for all new and prospering rental businesses around the world. Share some of your thoughts, experiences, and advice in the comment section below for those starting in this industry!

• #party rental

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