If we give a look around our society then we can easily figure out that nearly in every few days one or the other of our acquaintances celebrate some kind of party in the USA. As the society evolved socially, economically and culturally, people have felt a need to celebrate on every small occasion. This can easily be seen in places or cities that are economically growing or have already achieved that target. Many of these people who party on every second week don’t arrange things on their own or buy party related items but either hire an event manager or hire party rental items.
Since there is a rise in party activities there is also a rise in rental items for party. There is a huge market with steady profits lying for party rental business. If you are planning to open up your own party rental business then here’s a grand business plan regarding this.
Business Opportunities – types of party in our society:
People on need some reason to celebrate especially in socioeconomic advanced areas. Some of such party types are:
- Birthday Parties
- Anniversary Parties
- Festive Parties
- Wedding parties
- Party in celebration of promotions or success
- Seasonal parties
- New Year parties
- Corporate party
- Team success parties and many more.
Such types of parties require either a small or big celebration that based on them require equipment and other such items.
Reasons why you need to start party rental business:
If you look a bit deep then you can easily find that people living in socioeconomic advanced places need reasons to party. Weekend parties, birthday parties, team success parties are few common reasons that they celebrate. Given the rise in parties one can easily assume that they need party celebration items and thus you have a reason to cater to them to earn good returns. Here are other some reasons:
- Huge demand of party rental items.
- Party rental business profits has increased manyfold in recent years.
- On time investment is there with steady returns in party rental business.
- People spend lots of sum on party thus giving good returns.
- Party rental business is a start-up business where you are your own boss.
- It’s just another creative method of income with decent returns.
Decide what you need in a party rental business:
If you are starting new in a limited budget then it is obvious that your equipment will be limited. Thus you need to decide what actual important items you can own and what you can outsource for your use in initial time when your business is in growing stage. Your business equipment should be based on party types. Here are few ideas:
Professional Parties: A professional party is often known as office parties where you invite people with whom you have business or professional relations. Such kind of parties have different requirements like drinks, special cuisines, some great entertainment options like a cultural program, classic dance, jazz, standard equipment, music, etc.
Small Parties: Small parties like weekend ones, celebration parties among college friends and other such parties that are organized in small budget. Such parties need drinks, one or two entertainment options, some tasty foods items, good music system and some thrilling activities.
Wedding Parties: Wedding parties are mostly grand that invites many people thus your organization needs to be big covering all aspects like decorations, food, drinks, entertainment, service, etc.
Social Parties involving children: You need to cater especially to children in such parties thus you need bounce house for kids, photo booths, jokers, balloons, etc. Thus as party rental business you need to have such equipment.
Equipment and items you need for party rental business:
There are many items that you need for your business but based on your budget you need to buy only those items which are basic necessities in any party types and which are in demand as always. Some of the items which you don’t have can be arranged by renting them further or you can partner with them. But here are some basic equipment that you need to have.
Prepare a checklist according to your business needs:
- Decoration items that include tent, cloth, flowers, etc.
- Tables, chairs, sofas, mat, stage set-up, etc.
- Cooking items that include cutlery, catering items, plates, spoons, trays, etc.
- Machines like refrigerator, coffee vending machines, stove, oven, microwave, etc.
- Lighting items that include chandeliers, bulbs, fans, air coolers, candelabras, chain lamps, etc.
- Music system that includes music set-up system, DJ player, DJ floor, DJ lighting, etc.
- Entertainment items like bounce house for kids, jokers, photo booths, balloons, and other such outdoor game equipment
- Supporting items like wires, generators for power supply, men power, professional entertainers, cleaning utensils, etc.
- Transporting vehicles like motorbikes, car, bus, truck for transporting goods and people in case of traveling, animals like elephant, horse, etc.
The above given items are generalized items but in realty there are much more items that are required in each party. Make down the list and come to conclusion where you can figure out which item you can buy and which item you can further rent or partner with to have access.
Business strategy & planning:
What strategy do you need that can make your business a success? Any business that flourishes is based on a plan that has a strategy for every problem that can arise. Here is a basic understanding about your party rental business.
Research the market and identify demands:
Your business can only succeed when there is demand for parties on almost daily basis. You need to serve your business to a place that has demands. Now the demand doesn’t pops up with surprise but is based on many factors as mentioned below.
- It depends on social background of the region or society.
- It depends on the profession of the people living there and their culture and living standards.
- It depends on their economic situations. No one will give lavish party if they can’t afford one.
- It depends on issues to issues, conditions and circumstances, type of place, etc.
These four factors always play role in this business and thus your plan should always revolve on these four important factors for your success.
Sync between party budget and your service budget:
If your business revolves around small parties that have low budget then you can’t afford party items that are too cozy, costly and standard types rather you need to have equipment that is cheap, and reusable. Your service also needs to be based on your budget and so is your catering and management.
It is quite an important things which needs caring. If your customer is organising a grand party then it is obvious that your equipment and service should match that standard and that is how people will love your work and you will have good returns.
Arrangements of capital & business setup:
If you have calculated what you need for your business then it is obvious to calculate the capital for setting up your business. Remember that whatever amount you put into your business you need to at least recover 30-50% of that amount within a specific period of time. Do not invest without reason and plan if you don’t have assurance for returns. Don’t buy expensive items that may not be always needed or are too expensive to buy or keep. Buy only those items that are basic and are always required.
The set-up is also important. You need to register your own business and get a logo for it to advertise about your business. You need an office that is open to customers, a well maintained service staff, other paper work, etc.
It is not possible that you have all the money that is required in the business set-up. The best option therefore is to take a loan from the bank to setup your business. Since bank loans are interest based therefore you need to have a master plan that can guarantee returns so that you don’t end up messing everything. Capital can also be arranged through partnership and investment of the third party. You can also take franchise of professional companies that deal with party rentals.
Many party items are there which you may not purchase in the initial time therefore partner with other such rental organizations so that you can get those items at lower cost and then earn from the difference. You can also make deals with many reputed party equipment manufacturer who may give you some discount in initial stage which can boost your business.
Boosting your business through advertisement and marketing:
It is of utmost importance to have a presence in market and for this you need to advertise and market. The firs initial step in this is to have your business name that is unique and easy to remember. Second, you need to have a logo on each of your equipment and party place so that people attending there remember it.
Have something unique in each of your party so that people get attracted towards it. This can directly boost your business. Presence on internet through website and social media platforms is also very important.
The last important point is word of mouth. This comes when your customer really enjoys your service. Most party rental business strongly work on this philosophy. People usually inquire about the service provider from their host if they like about the service and this has huge tremendous success.