How to Start a Party Rental Business (25 Proven Ways & Tips)

Thinking of starting a party rental business but not sure what you need to do and/or do?

Then this article is a must-read! It explains the process of starting a party renting business and proven ways/tips to help you.

 

Importance

You are invited!

Typically, those are the three words that you read or hear when you are extended an invitation to attend a party.

Just about everybody enjoys attending a party and celebrating a special event in the lives of family, friends, and acquaintances.

A party is synonymous with having a good time relaxing, enjoying the fun and festivities, etc.

However, if you are the host of a party there is a considerable amount of planning and work that goes into providing a successful experience for the individual who is being celebrated.

To help in the process there are a number of services that are provided to individuals who wish to throw a gala event.

In addition to party planners there are companies that provide party equipment.

By taking advantage of the renting of party equipment you don’t have to worry about making the arrangements, transporting, unloading, setting up, breaking down, reloading, and transporting the party equipment back to where it came from.

Therefore, a party equipment company is a viable business to start and succeed at because individuals often look for an opportunity to celebrate or party and have a good time.

 

25 Proven Ways & Tips for Starting a Party Rental Business

 

1. Know all about Party Rental Business

A party rental business is a company that specializes in having available a variety of equipment that is available to meet the needs of a party that is being planned.

The benefits of engaging a party rental equipment company are that rather than buying the items that you need you can rent them at a fairly reasonable cost.

Included in the contract would be the proper transport of the items to the event, setting up as needed, and at the end of the day tearing down the equipment and carting it off

Typical items that you can rent through a party rental business would include:

• Tables and chairs
• Bounce houses
• Themed packaged items
• Tents
• Cutlery
• Dunk tanks
• And more

 

2. Research

When looking to start a party rental business it is important to do your research.

You can find out more about the business and what it details and the types of equipment that you may need to have available by searching online.

Also, to get a full picture, it would be prudent for you to do a word search on starting a party rental business by also researching the pros and cons.

This way you can approach the start of your business having a wide-eyed approach as to what are the benefits and what are some of the negatives as it relates to this business.

Some of the possible negatives could include:

• Insurance premiums
• Repair of equipment
• Replacing broken equipment
• Collecting on billings
• And so forth

 

3. Competition

Another important aspect that should be done preliminarily when approaching the start of a party rental equipment company is to identify the competition.

When researching the competition, you should endeavor to determine:

• The number of rental companies in the area
• Their pricing
• Evaluating their website
• Reading customer reviews
• Areas they serve
• Products they offer
• Etc.

 

4. Business Plan

The important part of starting any business is the development of a business plan.

The business plan is the business owner’s roadmap of how they will start the business and continue on to success.

Features of the business plan could include:

• Executive summary
• Budget
• Marketing analysis
• SWOT analysis
• Marketing plan
• Staffing needed
• Equipment
• How the company raises money for capital needs
• And so forth

 

5. Budget

A critical aspect of starting the business is to formulate a budget as to what the anticipated income and expenses will be.

Most likely, starting on the expense side of the ledger would be a good beginning as it will help you determine what the expenses will be and will aid in formulating the pricing and the income needed to match the expenses and allowing for profitability.

Some of the expense line items could include:

• Equipment purchase
• Equipment repair
• Staffing costs
• Storage for the equipment
• Utilities
• Transportation costs
• Insurance
• Marketing
• And so forth

Once the expense side of the budget has been determined you then can work out what your fee structures will be as it relates to rental costs for the customer.

 

6. Market Research 

Another important aspect of gathering information to potentially start a party rental business is to conduct market research.

Market research is the process in which you gather information about your target audience or customer.

The process involves knowing about them, where they live, who they are, and what are their party rental needs?

Some of the effective ways that you can collect this data needed would be by doing:

• Surveys
• Interviews
• Focus groups
• And observing

 

Niches

 

7. Wedding

When considering your party rental business, it may be a good idea to focus on a certain segment of the party business by serving one particular party element.

One of those party elements would be to provide party equipment for a wedding.

This particular party venue of equipment needs would include:

• Tables and chairs
• Linens
• Tents
• Fountains
• And so forth

 

8. Equipment Rental

Another option would be to just provide generic equipment rentals for parties which would include:

• Tables and chairs
• Chocolate fountain
• Margarita making machine
• Etc.

 

9. Kitchen Equipment

Another aspect of the party rental business could be the renting of kitchen equipment.

Individuals may have a need to rent:

• Portable ice machine
• Portable freezers
• Mixer
• And so forth

 

10. Kid’s Party

Another popular niche in which the party rental business can be productive is by supplying the needs for a kid’s party.

Some of the equipment rentals for a kid’s party could include:

• Bounce house
• Dunk tank
• Inflatable castle
• Slumber tents
• Dessert cart
• Child size tables and chairs
• And so forth

 

11. Business Model

In order to register your company at your chosen state level as well as in your local community it is important that you decide upon how your company will be legally operated as a business.

Your choice of legal model determines how you will pay taxes, file reports, etc.

Choices of your structure could include:

• LLC or limited liability company
• Sole proprietorship
• SCorp
• And so on

It is important that you research all of the options and determine which is the best legal structure to register your company under.

You can utilize a lawyer to help you in this process or there are companies online that will provide the same service and documentation needed.

One such online site can be accessed at www.legalzoom.com.

 

12. Contracts/Agreements

When renting out your equipment it is important that you have clear and understandable contracts that outline the agreements between both you as the renter and the customer.

Concise terms would include:

• Return dates of the equipment
• Deposits required
• Damaged equipment
• Indemnify and hold harmless verbiage
• And so forth

It would be in your best interest to have these contracts drawn up by a professional attorney to ensure that the contract is binding and clear.

 

13. Bank Account

To separate your business financial dealings from your personal finances it is important to set up your business with its own separate bank account.

When choosing your financial institution, it is important to minimize any associated fees and to see what perks might be offered.

Additionally, many business hours do not correspond with banking hours and therefore it is important to know what might be available for after-hour deposits of money received.

Also, you may be dealing with cash, checks, and credit cards.

Therefore, it is important to ask about how your bank will help you with processing credit card transactions.

 

14. Insurance

The party rental business can come with its own set of liability issues in the use of the rented-out equipment.

To protect your business and your assets it is important to contact an insurance carrier to see what recommended insurance policies are available.

At a minimum you would need general liability insurance and a good idea is to shop around and obtain different bids to get the best coverage at the best premium price per month.

 

15. Website

An important part of marketing your party rental business is having an engaging website.

The website should have the standard links associated with it including testimonials, a contact page, and a link in which a reservation for the rental of equipment can be made.

 

16. Marketing Plan

In order to fully realize the full revenue generating potential of your company you should have a marketing plan in place.

The marketing plan should include the use of social media, email campaigns, the power of word-of-mouth advertising, newspaper advertising, and so forth.

 

17. Partnerships

As part of your business strategy, you may choose to enter into informal and non-formal partnerships with other businesses.

For example, if you have chosen to concentrate on party equipment to support weddings you may work with local florists in the area with both companies promoting their line of business to wedding couples that are planning their marriage.

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18. Associations

As the owner of a company, it is important that you are involved with other associations to make your presence known and to promote your company’s service.

This can be accomplished by joining a variety of service-oriented organizations that meet on a regular basis and consist of other business leaders.

Examples of associations that you may wish to belong to in order to promote your business could include:

• Chamber of Commerce
• Rotary
• Kiwanis
• Lions
• Soroptomists

 

19. Equipment

When starting out with your rental of party equipment business you may want to start by investing in basic equipment available for customers.

If, for example, your niche is children’s parties you may want to invest in a couple of bounce houses.

As your business proves to be successful you then can add additional pieces of equipment to broaden your offerings to your customers.

 

20. Staff

Depending upon the extensiveness of your equipment rental available you may need to hire staff or work with staff on a contract basis.

You may need individuals to help with:

• Manual labor
• Scheduling equipment delivery and pick up
• Accounting

It is important to remember that staffing is typically one of your biggest business expenses.

 

21. Blog

Another way to promote your business is by blogging.

Through your blog you can offer practical advice about what to do and how to navigate through the planning of an event.

For example, one of your blog entries could talk about how to plan for a children’s exciting birthday party and the steps that need to be thought through and taken to make it a success.

The idea behind creating a blog is to be helpful by providing good information to customers and potential customers as well as promoting your company.

Therefore it is important to drive people to your website through your blog.

 

22. Pricing

Charging your customers for the use of your equipment depends upon what the market will bear and being price competitive with other rental businesses.

Also, as part of your pricing you can package rental equipment together.

An example could include renting individual chairs or packaging together a number of chairs with a number of tables and offering a reduced or packaged rate.

 

23. Start-up Costs

One of the big challenges in starting a business is obtaining the needed investment capital to purchase the equipment required to be successful.

Ways that you can endeavor to obtain the needed money can be through:

• Banking loans
• Investment money from friends and family
• Angel investor
• Crowdfunding
• Using your own personal assets as collateral

 

24. Charity

A good strategy for spreading the word about your business is to be involved with charitable events.

Often charities have special events and need party rental equipment for the success of their fundraiser.

You could offer to provide various pieces of equipment at no charge or at a reduced cost.

The value of this is that many charities are supported by influential business leaders within the community.

As they observe your commitment and giving back to the community, they may also engage your services for their own business and personal needs.

 

25. Networking

Networking in your community is critical to the health and productivity of your business.

That work can be accomplished by attending various events in which other business leaders gather.

These networking opportunities could be through the opening of new businesses, special fundraising events, United Way events, etc.

 

Personal Story

Being involved in a church, for special events, we would often rent party equipment to entertain members of our church and attract new members to be part of our family.

We would rent tents, bounce houses, and a variety of other fun and enjoyable pieces of party equipment.

One summer we were having our vacation Bible school, and someone suggested that we rent a dunk tank so that the kids could line up and take turns at throwing the ball, hit the target and dunk the person who was honored to be seated in the dunk tank chair.

Of course, everyone took their turn in the seat of honor and taunted the thrower of the ball to be better at aiming.

If the truth be known, when I was taking my turn in the dunk tank, I welcomed an individual who had a good pitching arm and was accurate as a dip in the dunk tank was so refreshing on that hot summer afternoon

Out of all of the party equipment that we ever rented the dunk tank, by far, was the most popular.

 

Party Rental Business FAQs

 

What is the Most Popular Equipment Rental for a Party?

According to Abbey Rentals the most popular rental items include:

• Tables
• Chairs
• Bounce houses
• Carnival games
• Sound systems

 

What is the Market Size of the Party Equipment Rental Business?

The party rental business earns $5.9 billion, and the growth is anticipated to be 4.3% in the current year of 2022.

 

You Can Do It

You are focusing on operating a business with the business being a party rental service.

It is a good business to pursue because people enjoy celebrating and planning parties for special events.

With your preliminary work in researching this business possibility coupled with your business acumen there is a strong possibility that you can be successful.

 

Conclusion

An important part of life is a celebration of various significant events that we wish to celebrate and honor individuals who have reached milestones in their life.

There are wedding vows to be exchanged, anniversaries to celebrate marital commitments, being another year older, and so forth.

Often, these events need an added dimension to maximize the celebration.

That is why a party rental business is more than just an opportunity to earn money and provide the needed equipment.

It is a component of maximizing the celebration of various events in individuals and couple’s lives.