How to Start a Party Rental Business from Home

Do you want to start a party rental business from home? If YES, here is a 22-step guide on how to start a party rental business with no money or experience.

A party as it is known is a gathering which consists of people who have been invited by a host for the purposes of socializing, conversation, or recreation. Typically and majorly it features foods, and beverages, music drinks etc. While some parties are held in honour of a specific persons, day, or event, such as a birthday party.

Parties of all this kinds are often called “celebration.” A party could also be Public parties which are sometimes held in restaurants, beer gardens, pubs, bars or nightclubs and people attending such parties may be charged an admission/entrance fee by the host.

It is a well-known fact that these parties are as old as the existence of man and will always occur when there is need for celebrations. The party rental businesses thus provides the necessary equipment for a party such as chairs, tables, tents, cooking equipment and the likes will be required for the success of the event.

Generally a Party Equipment rental services involves, renting or leasing equipment like chairs, tables, commercial cooking equipment, tents and so on, to individuals, corporate organisations and so on, for the smooth running of an event or occasion.

Steps to Starting a Party Rental Business from Home

1. Understand the Industry

A party rental business is indeed a good way to make extra money and in the long run can turn into a lucrative, full-time business.

While it is a business that can be started from home, which can begin by renting the equipment that is needed to set up the parties. Eventually, however, you are going to want to get your own supplies that can be rented to those who are planning on having parties.

Interesting Statistics About the Industry

It is a business that has a lot of potentials and can grow from a small business to a large corporation done the right way. While it is necessary to learn the rudiments of the business before starting in order to achieve success. Getting in touch with wholesalers who deal in party supplies, brainstorming new ideas and working with complementary businesses will help a business flourish.

Whilst the revival and economic recovery, revenue contracted slightly over 2011 as businesses and consumers wary of the recent recession held off on event spending.

However, renewed confidence in the economy in subsequent years has encouraged business and consumers to host events that require products from the Party Supply Rental industry. It has also been projected that continued economic recovery will likely aid growth through 2022.

This is due to the fact that 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.

The industry has a moderate level of capital intensity. In 2015, for every $1.00 spent on labour, operators are expected to spend $0.19 in capital investment. In general, the capital requirements that are necessary to begin operations are relatively minimal.

To begin a small party rental company that specializes in household parties, entrants can spend as little as $5,000, but companies will typically invest at least $15,000 in order to have a more extensive product and equipment range for their clients.

The industry is growing, as many and more people are venturing into the party rental business even in developed economies like the united states. Christine Wehrman, ARA’s executive vice president and CEO, said about the booming industry:

“The industry remains vibrant and strong, and will benefit even more in the coming years due to non-residential growth, supplemented with residential construction growth and the strong influence of the energy boom in North America,”

Many persons are encouraged to venture into the business due to its viability, accessibility and the output in terms of monetary that could be accrued from it, to say the least it is the business industry for the future.

2. Conduct Market Research and Feasibility Studies

Demographics and Psychographics

The demographic and psychographic composition of those who need the services of party rental business is multi-faceted.

In fact it cuts across all aspects of human endeavours and it includes the public sector, the organized private sector, households, communities and people of different class and from all walks of life. Below is a list of the people and organizations that need the services of private security companies;

The public sector (public facilities et al)
Organized private sector (Corporate organizations)
Celebrities
Businessmen and Businesswomen
University Campuses and Schools
Event Planners
Estates and Communities
Religious Centres
Sport Organizations
Cultural organizations
Night Clubs
Press Clubs etc.

3. Decide What Niche to Concentrate On

Just like in other businesses, there are a variety of niches that one can avail himself/herself of especially in this industry.

Those niches if well planned and followed to the latter can propel a person’s prosperity in the business and pave ways for him/her even in the midst of competitors and brands that have not only made a mark but also a name for themselves in the industry.

Here are some niches/areas that a party rental business can be specialized in;

Wedding rentals
Birthday rentals
Corporate event rentals
Other event rentals
Party supply rental
Corporate party and banquet equipment rental
Wedding supply rental etc.

The Level of Competition in the Industry

Parties happen every now and then, hence boosting the acceptability of this business, and every businessman or businesswoman with foresight have found it lucrative enough and are ready to venture into it. But, Surviving in the business such as in most others in the business world as a party rental business requires a lot, in fact more than, your expertise.

Because it is a business that has direct bearing on people, and therefore having the right connection and knowing how well to network with those that matter and delivering standard rents at all times can aid a person significantly in the business.

Although, there are lot of big time investors who have a stake in the industry; there is always a room big enough to accommodate both the upcoming businesses and the established ones. As a beginner in this industry, you have to create a niche that is well acceptable and also serves the interest of those in lower classes before expanding your base and your reach.

4. Know the Major Competitors in the Industry

There are no industries in the world without the big names. These big names are the gig businesses, the movers and shakers of the industry that has over the years continue to wax stronger and stronger in the business despite any challenges.

The party rental business is also not an exception, as there are big party rental businesses therein too. Here are some of the well known party rental businesses in the United States of America;

United rentals
Sunbelt Rentals
Hertz Equipment Rental Corp
Home depot rentals
Blueline Rental
Aggreko North America
H&E Equipment Services
Sunstate Equipment Services
Finning
NES Rentals
NEFF Rentals
Maxim Crane Rental Corp.
Ameco
Ringpower
Holt Cat

Economic Analysis

Starting a party rental business is indeed a cost-consuming one, and needs a lot of planning and logistics to be put appropriately in place.

It is indeed a serious business and requires a lot of critical economic planning and analysis which must be conducted to ensure that the risks and other threats associated with starting a business from the scratch or investing in a business idea are reduced to the barest minimum.

If you are considering starting a party rental business in the United States, your concern should not just be limited to just acquiring an office facility and equipping the facility, you must really be concerned about attracting clients, getting referrals from them and landing more projects in the process.

Averagely, it might not cost much to start a party rental business largely due to the fact that there are no much technicalities involved if the necessary logistics can be put in place. But if you have a dedicated staff that knows the nitty-gritty of the business and the processes involved in winning and executing a particular project, you are sure of setting yourself up for the path to glory.

5. Decide Whether to Buy a Franchise or Start from Scratch

Although there is the possibility of buying a franchise from a successful party rental business or even partnering with a big rental company if you are interested in only owning an investment in the party rental industry.

Certainly, we are motivated to start a business based on various factors and incentives you’re your goal is to build a business that you intend controlling, a business brand that you hope to one day transfer ownership to your children and perhaps also sell franchise in future, then starting from the scratch should be your best bet.

But if you only interested in making money and multiplying your wealth, then you may as well buy the franchise of a successful party rental company that is willing to sell its franchise.

6. Know the Possible Threats and Challenges You Will Face

Generally in the party rental industry, both the already established ones and the upcoming ones are subject to threat and challenges from government policies, global economic downturn which usually affects spending and unforeseen natural disasters (disasters that may cause setback).

Another threat which is major is that of competing with well-known and established party rental companies in the industry.

7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)

As far as choosing a legal entity for your party rental business is considered, it is either you choose a general partnership, a limited partnership, an LLC, a “C” corporation, or an “S” corporation.

You must know that all these entities for different business has its own advantages and disadvantages; which is why you must weigh your options properly before making your choice on the legal structure to build your party rental business on.

These are some of the factors you should consider before choosing a legal entity for your party rental business, which includes but not limited to: limitation of personal liability, ease of transferability, admission of new owners and investors’ expectation and tax issues.

You can start your party rental business as a Limited Liability Company (LLC) and in future convert it to a ‘C’ corporation or even a ‘S’ corporations especially when you have the plans of going public.

Upgrading to a ‘C’ corporation or ‘S’ corporation will afford you the opportunity to grow your party rental company so as to compete with major players in the rental industry; you will be able to generate capital from venture capital firms, stock market, you will enjoy separate tax structure, and you can easily transfer ownership of the company; you will enjoy flexibility in ownership and in your management structures as well.

8. Choose a Catchy Business Name from the ideas Below

As far as choosing a name for your party rental business is concerned, you have to choose a name that is catchy and definitely attract lots of customers to you.

This is so because; a name only can attract people to your company. Therefore, you must be meticulous and selective in your choice of names, and it is needed to get the business on track and set it up on a sure path to greatness. Here are some catchy business name ideas you can choose for your party rental company;

Regal rents
Classical Party rentals
Wash First Rentals
WWW Party rentals services
Jackson’s Party rentals
A rentals coop.
Caroline Party rentals
G&F Rents

9. Discuss With an Agent to Know the Best Insurance Policies for You

It is important to create a budget for insurance and perhaps consult an insurance broker to guide you in choosing the best insurance policies for your party rental company; they will guide you aright by assessing the risks involved in the industry, and tell you the best insurance to go for.

Here are some of the basic insurance covers that you should consider purchasing if you want to start your own party rental business in the United States of America;

General insurance
Health insurance
Risk Insurance
Payment protection insurance
Liability insurance
Workers Compensation
Overhead expense disability insurance
Business owner’s policy group insurance

10. Protect your Intellectual Property With Trademark, Copyrights, Patents

Though, intellectual protection might not be a necessary step to take in this industry. It is pertinent that you make sure that all equipment and tools used by your company are properly gotten, and all the necessary steps required to checking its originality and authenticity in the state that you reside is followed to the latter.

11. Get the Necessary Professional Certification

The rental industry is one of the industries that is highly regulated so as to prevent costly breaches as it relates to persons and their properties. It is for this reason that if you are looking towards beginning a party rental business, then you should acquire some necessary qualifications that is needed to ensure that you remain tops in whatever you do.

Though in the United States of America, the most recognised examination that must be taken is the Certified Event Rental Professional (CERP) organised by the American Rental Association (ARA). It makes you more professional, and shows that you have been certified to venture into the business.

12. Get the Necessary Legal Documents You Need to Operate

In The United States of America and of course all the world, the rental industry is amongst the industries that is highly regulated so as to avoid costly breaches in the country that could result from not paying attention to details. If you are considering starting a party rental company, then you are expected to meet the legal documents requirements as stipulated in the constitution of your country.

These are some of the basic legal document that you are expected to have in place if you want to start a party rental company in the United States of America;

Certificate of Incorporation
Security Clearance Certificate
Business License
Party Rental Business Plan
Non – disclosure Agreement
Memorandum of Understanding (MoU)
Apostille
Employment Agreement (offer letters)
Operating Agreement
Company Bylaws
Operating Agreement for LLCs
Insurance Policy

13. Prepare a Detailed Cost Analysis

It is very important to have concluded and analysed your feasibility studies and market surveys before drawing up a budget and sourcing for funding for your business. Here are some of the basic costs you must look towards fulfilling when starting a party rental business in the United States of America;

The Total Fee for incorporating the Business in United States of America – $750.
The budget for Insurance, permits and license – $5,000
The Amount needed to rent a suitable office facility with enough space in the United States of America (Re – Construction of the facility inclusive) – $50,000.
The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $15,000
The cost for acquiring rental equipment such as Tables, Chairs, Canopies, Plates, Pots etc. – $15,000
The Cost of Launching an official Website – $700
Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
Other miscellaneous – $1,000

Going by the report from our research and feasibility studies, we will need about $100,000 to set up a small scale party rental company in the United States of America.

Averagely, you would need an over 180,000 US dollars to start a medium scale party rental company in the United States of America. If you choose to start a large scale private security company, then you should look towards budgeting about 2 million US dollars and above.

14. Raise the Needed Startup Capital

If you choose to start your party rental company on a small scale, you might not need a lot of resources to launch the business, but if you decide to start the business on a large scale, you will surely need to raise the required start – up capital to launch the business.

When it comes to financing a business, one of the first thing and perhaps the major factors that you should consider is to write a good business plan.

If you have a good and workable business plan in place, you may not really stress yourself before getting the right personnel to invest in your business. Here are some of the options you can explore when sourcing for start – up capital for your party rental company;

Raising money from personal savings and sale of personal stocks and properties
Raising money from investors and business partners
Applying for Loan from your Bank / banks
Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
Source for soft loans from your family members and your friends.

15. Choose a Suitable Location for your Business

Choosing a location for your business is not something that can be done in isolation. The fact is that if you get it wrong with the location where you have decided to pitch your business tent, you are more likely going to struggle to make headway with the business.

If you decide to choose a wrong location for your business, you might just be on the part of setting up the business into oblivion. These are some of the factors that you should consider before choosing a location for your party rental business;

Areas with strong economics.
Areas with expanding populations.
Areas that has access to an educated and talented workforce.
Areas that are densely packed with like-minded entrepreneurs.
Areas with no corporate income tax.
Areas that have a relatively low cost of living and available office space.
Party rental business should be located near residential areas
It should be located close to schools; both primary, secondary and tertiary institutions.

16. Hire Employees for your Technical and Manpower Needs

If you are about starting a party rental business, then you must put in place the necessary logistics to make it a successful one. Some of the technical and manpower are as follows:

Buy the Needed Equipment: You have to buy enough equipment to be able to comfortably plan for many parties at once. Create an inventory for each kind of party and the equipment you require for it.
Provide catering services or maintain a list of preferred caterers in order to recommend. Such as birthday cake and soft drinks to pizza and beer for a bachelor’s party.
Offering a banquet room on your premises for individuals and businesses who do not desire hosting their parties on their living premises.
Purchase of big vans: This is if you will be providing tables and chairs or inflatables. Meet commercial laundries if you anticipate having to wash high volumes of tablecloths and napkins.
Hire the necessary staff such as wait staff, laborers to establish and take note of tables and tents, kitchen assistance and office staff such as a bookkeeper and someone that will be keeping record of orders and inventory.

The Service Delivery Process of the Business

The services process involved in this industry requires that you get the contracts to provide rental services for either organisations/individuals, and also ensure that this is carried out effectively, likewise you might be required to carry out some extra services such as been in charge of catering for a particular business, and other things.

17. Write a Marketing Plan Packed With ideas & Strategies

When you are drafting your marketing ideas and strategies for your party rental company, you must be meticulous to ensure that all the details are well spelt out, and it is catchy enough. Here are some of the platforms you can utilize to market your party rental company;

Advertise your business in relevant business magazines, TV and radio station and also make yourself available for security related talk shows and interactive sessions on TV and Radios)
List your business on local directories / yellow pages (both online and offline)
Leverage on the internet to promote your business
Join local chambers of commerce around you with the main aim of networking and marketing your private security company.
Introduce your business by sending introductory letters alongside your brochure to all the corporate organizations, community leaders, schools, hospitals, hotels and government offices in your target area.
Promptness in bidding for contracts
Create different packages for different category of clients in order to work with their budgets.
Engage in direct marketing, referral marketing and also email marketing.

18. Develop Iron-clad Competitive Strategies to Help You Win

It might be challenging competing as a newbie in the party rental business especially in a highly organized market like that of the United States of America, which is why you must be deliberate in choosing your board members and your core management team.

As a party rental company, if you have the required expertise and equipment to carry out a contract, then you are likely not going to struggle to compete in the industry. Hence, ensure that you put in your best whenever you have the opportunity to handle any rental contract.

You should be known for delivering excellent services at all times. This will boost your image and make your company renowned.

19. Brainstorm Possible Ways to Retain Clients & Customers

When it comes to business no matter the industry you choose to pitch your tent in, one of the easiest ways to increase customers’ retention and perhaps to attract new customers is to satisfy your customers always. If your customers are satisfied with your services delivery, they can hardly source for alternative service provider or products.

One of the major reasons why customer’s source for alternative service provider or product is when there is a drop in quality. Another reason is poor customer service. If you can continue to improve on the quality or your services and your customer service delivery, then you won’t struggle to maintain your loyal customers.

20. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity

Regarding creating brand awareness for your business, the nature of contracts you have handled in the past, and the marketing strategy employed by your company goes a long way to make it easily achievable.

It is therefore very important to work with your consultants to help you map out publicity and advertising strategies that will help you penetrate into the heart of your target market. You should ensure that you make provisions to work with different kinds of persons in the society.

Below are some of the platforms you should leverage on to boost your brand awareness and create a corporate identity for your party rental company;

Introduce your business by sending introductory letters alongside your brochure to all the corporate organizations, community leaders, schools, hospitals, hotels and government offices in your target area.
Advertise your business in relevant magazines and websites
List your business on local directories / yellow pages (both online and offline)
Promote your business on satellite TV stations and radio stations.
Engage in direct email marketing
Leverage on the internet (social media platforms and your official websites) to promote your business
Ensures that your workers wear your branded shirts at all times during working hours and also make sure you brand all your company’s official vans, trucks and cars et al.

21. Create a Suppliers / Distribution Network

The nature of the party rental industry gives room for rental companies to network amongst. This is so because the industry is a large one, and to ensure optimal performance and success, the supplier and distribution network must be large enough.

It is important to state that there will always be room for a party rental firm to form strategic alliance with one another which is why it is important to maintain a good network within the industry. In a case whereby a particular supply of services is required from you, and it’s not readily available, you can network with others in the industry to ensure that, that area is adequately covered.

22. Tips for Running a Party Rental Business Successfully

The truth is that, irrespective of the kind of business you run, your ability to get all the members of your team on same page at all times is one of the keys you need to successfully run the organization.

As the chief executive officer of a party rental company, you must ensure that you show direction always. You should ensure that you create time for office meetings; a time where challenges, feedbacks, projections and relevant issues are discussed, this could be daily, once in a week, twice a week or once in a month. The bottom line is that there should be consistent meetings in your organization.

Carrying out appraisals on a regular basis and training your employees will help you run your organization effectively. Encourage your employees to pursue certifications in their various areas of specialization; as this will have a long lasting effect on your organisation

Finally, you should keep your doors open for suggestions from members of your team and your clients. It is very important to reward excellent performance in your organization; it will go a long way to encourage healthy competition in your organization.

Frequently Asked Questions

How Do You Start A Party Rental Business?

Conduct your market survey and feasibility studies
Learn everything you need to learn about owning and operating an Art Gallery
Choose a name and register the business (art gallery)
Draft a detailed Business Plan
Secure the needed licenses and permits
Apply for an EIN (Employer Identification Number)/Federal Tax ID Number.
Open a corporate bank account
Lease, or rent a warehouse facility
Purchase 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.
Hire employees
Market and promote your party rental business

How Does A Party Rental Business Make Money?

Party rental business make money from renting out party supply items such as 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.

How Much Can You Potentially Make Owning A Party Rental Business?

There are loads of factors that can influence the amount you can make owning a party rental business, but on the average, you can potentially make between $250,000 to $900,000 annually from your party rental business.

What Are The Costs Involved In Opening A Party Rental Business?

The cost of registering the business
Legal expenses for obtaining licenses and permits
The cost of purchasing insurance
The cost of renting, equipping and furnishing a warehouse
The cost of installing signpost and promoting the business
The cost for start-up inventory
The cost of launching a website
The cost for our opening party
The cost required to take care of miscellaneous et al

What Are The Ongoing Expenses For A Party Rental Business?

Fueling for transport and logistics
Utility bills
Telephone and internet subscription
Replacement of missing items (it’s regular)
Salaries of employees

How Do You Choose A Party Equipment Rental Business Name?

You try as much as possible to follow the norm or trend in the industry, but you must be ready to tweak the name to sound or look attractive to your target market.

What Is The Growth Potential For A Party Rental Business?

The growth potential for a party rental business is promising. As matter of fact, the Party Rental industry in the United States of America, is worth about $5 billion, with an estimated growth rate of 2.3 percent going forward. 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.

What Are Some Good Ways To Market And Advertise A Party Rental Business?

Introduce your party supply rental store by sending introductory letters alongside your brochure to potential young adults, corporate organizations, religious organizations, households/families, entrepreneurs and startups in the neighborhood where your party supply rental store will be located
Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across
Create a basic website for your business so as to give your business an online presence
Directly market your products.
Join local party supply rental associations for industry trends and tips
Provide discount days for your customers
Advertise your business in community based newspapers, local TV and radio stations
List your business on yellow pages ads (local directories)
Encourage the use of word of mouth marketing (referrals)

What Are Some Catchy Party Equipment Rental Business Names?

Back Street® Party Supply Rental Services, Inc.
Part Ryders™ Party Equipment Rental Service, LLC
House of Party™ Party Supply Rental Services, Inc.
Broadway® Party Equipment Rental Service, LLC
Ruston Branch® Party Supply Rental Services, Inc.
Jael Clarkson & Family® Party Supply Rental Services, Inc.
Taylor West™ Party Equipment Rental Service, LLC
Parry Rainbow™ Party Supply Rental Services, Inc.
Party Foundation® Party Equipment Rental Service, Inc.

How Much Profit Can A Party Rental Business Make?

Making profit from a party rental business might not be automatic especially if you are just starting the business newly, you might have to wait for a while to recoup the amount spent in purchasing the items you are renting out. If you’ve successfully recouped your startup capital, you can make as high as 90 percent profit from every rental done.

How Much Money Does It Take To Get Started In The Party Rental Business?

The amount required to start a party rental business is not fixed, and it will depend on the types and number of party rental items you want to start with. Having said, you can start the business with as low as $10,000 and as high as $250,000.

12. What Are Some Insider Tips For Jump Starting A Party Rental Business?

Choose a good location and shop facility to launch the business
Make sure your warehouse is well stocked with different brands of party supply items
Be deliberate with your marketing sales approach
Encourage the use of work of mouth to promote your party supply rental business
Leverage on all available online and offline platforms to promote your party supply rental business

13. What Happens During A Typical Day At A Party Rental Business?

The store is opened, cleaned and arranged
The stocks are taken and damaged supplies are replaced
The store is then opened for business
When customers walk in, they are attended to and the party supply items they want to rent are rented out to them.
Items rented out are received back as agreed
The store is closed for the day, account is balanced and the workers go home hoping to resume the next day.

14. Why Do You Need An Online Rental Booking Software?

You would need an online rental booking software because it will help you plan your business, make adequate preparation for your customers, track your items and above all, it will help you scale up with less stress.

15. What Are Some Skills And Experiences That Will Help You Build A Successful Party Rental Business?

Property management and maintenance skills and experience
Customer services skills
Marketing and sales skills
Interpersonal skill
Accounting and bookkeeping skills
Business management skills
Bargaining skill

16. Is A Wedding Rental Business Profitable?

Yes, wedding rental business is a profitable business venture because weddings happen every weekend and in some cases during the week.

17. Why Join Rental Organizations Like The ARA And IAAPA?

You should join rental organizations like the American Rental Association (ARA) and IAAPA because they represent more than 6000 attraction, supplier, and individual members from more than 100 countries hence giving you leverage to grow your business with less stress and based on referrals.

18. Is A Rental Business Profitable?

Yes, a rental business is profitable business, but you are not expected to start making profits within your first 2 or even 3 years of starting the business.

19. How Do You Find Money To Start Your Party Rental Business?

Raise money from personal savings and sale of personal stocks and properties
Raise money from investors and business partners
Sell shares to interested investors
Applying for loan from your bank
Source for soft loans from your family members and your friends.

20. What Are The Biggest Mistakes People Make When Starting A Party Rental Company?

They expect to start making profits immediately
They buy what they think people and organization would need as against asking their target market the items they would like to rent
They do not make adequate provisions for the replacement of missing or stolen items

21. What Are The Most Rented Items?

Top rentals items include musical instruments, vehicles, furniture, recreational equipment, construction machinery, small watercraft, portable tubs, and camping and hiking stuff.

22. Is Renting Really A Waste Of Money?

Renting an item that you need is not a waste of money. As a matter of fact, it will save you the stress of maintaining the items who you own them.