Do you want to start a sound system rental business and need to write a plan? If YES, here is a sample sound system rental business plan template & FREE feasibility report.
Sound system rental business is one of the many business ideas that can possibly thrive not just in the United States of America, but also all across the globe as long as parties and public events are organized. The truth is that anyone who intends to organize a party or public event would need to rent sound systems because it is not the norm for people to keep large sound systems in their homes.
Starting a sound system rental business requires reasonable startup capital, but it is indeed a money-spinning business if it is well located and if you are able to purchase effective and excellent sound systems.
If you are certain that starting a sound system rental business is what you truly want to do after you must have conducted your market research and feasibility studies, then you need to write a good business plan; a detailed blueprint of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your services.
Here is a sample sound system rental business plan template that will help you successfully write yours without stressing yourself.
A Sample Sound System Rental Business Plan Template
1. Industry Overview
Sound system rental business is part of the party supply rental industry and companies that operate in the industry basically engage in renting out party supplies such as tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, public address system (sound systems), 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 shrunk slightly in 2020 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.
Statistics has it that the Party Rental industry in the United States of America is worth about $5 billion, with an estimated growth rate of 2.3 percent between 2015 and 2020. 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 competition.
According to report recently published by IBISWORLD, in the United States, the regions that have the greatest concentration of sound system 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 sound system rental business is well – stocked with standard and latest sound systems 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
Jake Austin® Sound System Rental Services, Inc. is incorporated under the law of the United States of America and the business will be located in Los Angeles – California.
We are a well-organized and well-equipped sound system rental company that will be involved in renting out different types and sizes of sound systems (speakers, mixers, and other sound equipment) for public and private parties and events. We will engage in wedding rentals, birthday rentals, corporate event rentals, banquets, political rallies and other event rentals.
Jake Austin® Sound System Rental Services, Inc. is a client-focused and result driven sound system rental outfit that provides standard and reliable party equipment at an affordable fee that won’t in any way put a hole in the pocket of our clients.
Jake Austin® Sound System Rental Services, Inc. will at all times demonstrate 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.
Jake Austin® Sound System Rental Services, Inc. is family business that is owned by Jake Austin and her immediate family members. Ruston Branch has a BSc. in Business Administration from the University of Texas and an MBA in Finance from the University of California.
Ruston who is a native of Jonesboro, Arkansas, began his career at Walmart as a summer associate at the company’s distribution center. He was also an assistant manager and a buyer trainee.
3. Our Products and Services
Jake Austin® Sound System Rental Services, Inc. is in the party supply rental industry to service a wide range of clients and of course to make profits, which is why we will ensure we go all the way to make available a wide range of sound systems from top manufacturing brands in the United States and other countries of the world.
Our product offerings are listed below;
- Sound system rentals (speakers, mixers, and other sound equipment) and public address system
- Other related rental services
4. Our Mission and Vision Statement
Our vision is to become a sound system rental business that other players in the industry look up to for direction is our ultimate vision.
We are a company that is equipped to make available a wide range of sound system (speakers, mixers, and other sound equipment) to clients who wants to rent them for their parties, private and public events.
Jake Austin® Sound System Rental Services, Inc. is a sound system rental company that plans to start small in Los Angeles – California, but looks to grow big in order to compete favorably with leading brands throughout the United States of America.
We are aware of the importance of building a solid business structure that can support the kind of world class sound system rental business we want to own. This is why we are committed to only hiring the best hands within our area of operation.
At Jake Austin® Sound System Rental Services, Inc., 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 stakeholders (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)
- Manager/Admin and HR Manager
- Marketing and Sales Executive
- Accountant
- 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
- 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
Manager
- Manages the rental of sound systems
- Achieves maximum profitability and over-all success by controlling costs and quality of equipment and service.
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- 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 induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities.
Marketing and Sales Executive
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Writes winning proposal documents, negotiate fees and rates in line with company policy
- Responsible for handling business research, marker surveys and feasibility studies for the organization
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
Accountant
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- 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
- Responsible for transporting sound systems and workers to site
- Runs errand for the organization
- Handles any other duty as assigned by the manager.
6. SWOT Analysis
Due to our knack for details, we were able to work with result driven business consultants in Los Angeles – California 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 sound system 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 Los Angeles – California. Here is a preview of what we got from the critically conducted SWOT Analysis for Jake Austin® Sound System Rental Services, Inc.;
- Strength:
Some of our key strength as a sound system rental business is that we have multiple dozens of each of the types and sizes of the sound systems, meaning that even if the request doubled overnight, we can still meet up, we offer free deliveries and pickups and we are centrally positioned in a city that is notable for political rallies, public and private events and parties on a regular basis.
- Weakness:
One obvious weakness that we will be confronted with is the fact that we are only operating from a location especially when compared that sound system rental businesses that runs franchise or operate from different locations.
- Opportunities:
The opportunities in the party supply rental industry is massive considering the number of corporate events, weddings, parties, political rallies and other events that takes places on a daily basis in the United States. As a standard and well – equipped sound system rental company, we are ready to take advantage of any opportunity that comes our way.
- Threat:
Some of the threats that we may likely face as a sound system rental company operating in the United States are unfavorable government policies, the arrival of a competitor within our location of operation and global economic downturn which usually affects the rate at which people organize parties and other public events.
7. MARKET ANALYSIS
- Market Trends
One thing is certain; it is difficult to find a business that is strictly into just sound system 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 sound system rental companies engage in other complimentary services such as event planning services, other party rentals and the likes. The party supply rental industry is in a continuous state of evolution and as such, ground breaking strategies and ideas that were 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 extend 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.
8. Our Target Market
Although Jake Austin® Sound System Rental Services, Inc. will initially serve individual clients, small to medium sized business, and then 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 companies in the United States.
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 time smaller businesses. Below is a list of the people and organizations that we have specifically design our products and services for;
- Event Planners
- Party Planners
- Wedding Planners
- Corporate Organizations
- Religious Organizations
- Political Parties/Politicians
- Households/Families
- The Government (Public Sector)
- Schools (High Schools, Colleges and Universities)
- Sport Organizations
We are fully aware that to be highly competitive in the event party supply rental industry means that your sound systems must be of high standard and your business must be well – positioned, you should be able to deliver consistent quality service and you should be able to meet the expectations of both participants and organizers of events.
Jake Austin® Sound System Rental Services, Inc. might be a new entrant into the party supply rental industry in the United States of America, but the management are licensed and highly qualified to run such business; people who have the magic wand to turn a startup into a mega business.
Our sound systems are of world class standard and the business is well positioned and well – equipped to meet the 21st century demand. These are part of what will count as a competitive advantage for us.
Last of all, our employees will be well taken care of, and their welfare package will be amongst the best within our category (startups sound system 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
We are mindful of the fact that there is stiff competition amongst sound system rental companies in the United States of America; hence we have been able to hire some of the best business developers to handle our sales and marketing concerns.
Our sales and marketing team will be recruited based on their vast experience in the 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.
Our goal is to grow our sound system rental company to become one of the top 10 sound system rental companies in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in the Los Angeles – California but also in other cities in the United States of America.
Jake Austin® Sound System Rental Services, Inc. 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 event planners, corporate organizations, religious organizations, schools, households and key stake holders in Los Angeles and other cities in and around California
- 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
Sources of Income
Jake Austin® Sound System Rental Services, Inc. is established with the aim of maximizing profits in the party supply rental industry and we are going to go ensure that we do all it takes to attract clients on a regular basis. Jake Austin® Sound System Rental Services, Inc. will generate income by offering the following party supply rental services;
- Sound system rentals (speakers, mixers, and other sound equipment) and public address system
- Other related rental services
10. Sales Forecast
It is a fact that there would always be parties, indoor and outdoor events in the United States of America and as such the services of sound system rental companies will always be needed.
We are well positioned to take on the available market in Los Angeles – California, scale all up our income on a regular basis and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base beyond Los Angeles – California to other cities in California 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 Los Angeles – California.
Below are the sales projection for Jake Austin® Sound System Rental Services, Inc., it is based on the location of our business and the wide range of sound systems and public address systems that we will be offering;
- First Fiscal Year (FY1): $240,000
- Second Fiscal Year (FY2): $300,000
- Third Fiscal Year (FY3): $500,000
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 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.
11. Our Pricing Strategy
At Jake Austin® Sound System Rental Services, Inc. we will keep the fees for renting our sound systems below the average market rate 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.
- Payment Options
The payment policy adopted by Jake Austin® Sound System Rental Services, Inc. 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 Jake Austin® Sound System Rental Services, Inc. will make available to her clients;
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
In view of the above, we have chosen banking platforms that will enable our client make payment for renting our sound systems without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
12. Publicity and Advertising Strategy
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 sound system rental company. Below are the platforms we intend to leverage on to promote and advertise Jake Austin® Sound System Rental Services, Inc.;
- We will place adverts on both print (community – based newspapers and magazines) and electronic media platforms
- We will sponsor relevant community – based events/programs
- We will leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
- We will install our Bill Boards in strategic locations all around Los Angeles – California
- We will distribute our fliers and handbills in target areas
- We will 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.
13. Startup Expenditure (Budget)
From our market survey and feasibility studies, we have been able to come up with a detailed budget on achieving our aim of establishing a standard and highly competitive sound system rental business in Los Angeles – California and here are the key areas where we will spend our startup capital on;
- 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 sound systems, public address systems, 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 sound systems and public address systems – $100,000
- The cost for the purchase of a truck – $10,000
- Budget for paying at least 4 employees for 2 months plus utility bills – $60,000
- 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 three hundred and fifty thousand (350,000) U.S. dollars to successfully set – up a medium scale but standard and well – equipped sound system rental business firm in the United States of America.
Generating Funds/Startup Capital for Jake Austin® Sound System Rental Services, Inc.
Jake Austin® Sound System Rental Services, Inc. is owned by Mr. Jake Austin and his immediate family members. They are the only financiers of the business, but may likely welcome partners later which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.
These are the areas we intend generating our start – up capital;
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the 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 $200,000 from our bank. All the papers and document have 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 number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all these factors are missing from a business (company), then it won’t be too long before the business closes shop.
One of our most important goals of starting Jake Austin® Sound System Rental Services, Inc. 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 rent out our sound systems and public address systems a little bit lower than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Jake Austin® Sound System Rental Services, Inc. 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.
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: 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
- Printing of 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 types and sizes of standard sound systems and public address systems: 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, event planners, churches and key players in the industry: In Progress