Are you interested in starting a party rental business? Do you want to know what it takes to run a profitable party rental business? Do you need a sample party rental business plan template or feasibility study? Then i advice you read on.
A party is a gathering of people who have been invited by a host for the purposes of socializing, conversation, or recreation. A party will typically feature food and beverages, and often music and dancing as well.
Some parties are held in honor of a specific person, day, or event, such as a birthday party, a super Bowl party, or a St. Patrick’s Day party. Parties of all this kinds are often called “celebration.” A party is not necessarily a private occasion. Public parties 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.
5 Reasons to Start a Party Rental Business
- There are no much stress involved.
- This business presents you with the opportunity of being your own boss.
- Party rental business is a source of income
- It is a business that can get one connected
- You can run the business part time.
How to Start a Party Rental Business – Sample Business Plan Template
Step 1 – Buy the Needed Equipment
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. Paper, tablecloths, plastic utensils and napkins are appropriate for some gatherings. Others require cloth, tablecloths, flatware and real glassware.
Provide catering services or maintain a list of preferred caterers in order to recommend. Catering options would include all from birthday cake and soft drinks to pizza and beer for a bachelor’s party, so ensure that you have kitchen facilities that are capable of handling all request.
Have a variety of entertainment options. Clowns and magicians are in demands at children parties while a string quartet would be more suitable for an elegant dinner party. Ponies were the initial entertainment of choice at children parties, but nowadays children expect a moon bounce.
Consider offering a banquet room on your premises for individuals and businesses who do not desire hosting their parties on their living premises.
Engage into negotiation with vendors for the best prices on supplies. Learn where the farmer’s markets are, speak to the wholesalers concerning bulk discounts and be aware of sales or special offers on items you use regularly.
Take into account every of your cost when figuring out the rates you will charge. Overhead includes utilities, labor costs, rents, supplies, vehicles, fuel and insurance.
Purchase at least one big van. 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 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. Work out details like the way the tips will be distributed.
Market your party rental business. Create a website. Run an ad in local newspapers every week. Get the business generated by offering discounts in order to repeat customers. Word of mouth canvassing is highly essential in party rentals, so create incentives for your customers to dispatch the word like special offers.
How to obtain a business license for your party rental business
A party rental business is also among the business that requires license and permits in order to operate legally. The owner is expected to get the business registered at the Corporate Affairs Commission (CAC).
Things to put into consideration when estimating cost for your business
One of the most common causes of new business failures is not having huge cash in order to meet expenses, especially in the first 6-12 months of starting. But rather it the failure of new business owner to have a concrete planning before going into the business. You can use this guide to assist in calculating the start up cost so that you will be able to avoid as many surprises as possible.
There are several costs associated with starting a business. These may include:
- Market research
- Preliminary accounting and legal advice
- Stamp duty, tenancy/lease and lease agreement advice
- Telephone/internet installation
- Statutory requirements like licenses
- Power connection and bond
- Power connection and bond
- Signage and initial marketing
- Equipment, fixture and fittings purchases
- Staffing and wages
- Initial raw materials and/or stock purchases
when you might have correctly calculated the cost of the above, then you can know how much you actually need to start this business.
The best areas/places to start a party rental business
A combination of factors makes certain metropolitan areas more attractive than others.
- 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.
Party Rental Equipments
- Games-outdoor equipment
- Baby high chairs
- Bar glassware
- Bar stools
- Bar trays and tray stands
- Bar-tending supplies
- Beverage dispensers
- Beverage tubs
- Booster seats
- Candelabras, lamps, candles
- Carafes and serving pitchers
- Carts and caddies
- Catering baskets
- Catering trays
- Chafing dishes
- Chair washers
- Charger plates
- Chill party tables
- Commercial cooking equipment
- Food delivery bags etc.
Marketing ideas for Party Rental Business
- Partner with other businesses
- Put your logo on your products
- Make use of promotions etc.
- social media advert
- through the mass media
- granting discounts
Challenges of Starting a Party Rental Business
Establishing a business can encompass a variety of tasks. Beginning the legal and financial operations is usually the initial phase in establishing a business. Other steps may involve developing the daily processes or functions for completing tasks and creating business relationships in order to acquire economic resources or business inputs.
Business owners are as well responsible for ensuring that the business meets all operational government rules and regulations requirements. Below are the problems/challenges encountered or likely to be encountered in party rental business.
- It requires much capital.
- Unfavorable weather.
- Dealing with damages
- Handling consumers behaviors etc
The above points are the various steps in starting a party rental business, its benefits, equipments, challenges encountered etc. it was carefully written to feed you with all the information you need before venturing into party rental business.