Business Idea

Start A Party Rental Business

About

Starting a party rental business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell party rental services, or selling party rental services online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$12.7B
starting costs
$22.7K
gross margin
43%
time to build
9 months

About

Starting a party rental business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell party rental services, or selling party rental services online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$12.7B
starting costs
$22.7K

 

gross margin
43%
time to build
9 months

Startup Costs

Min Startup Costs Max Startup Costs
Equipment & Supply Expenses $566 $6,200
Retail Business Expenses $1,250 $11,650
Inventory Expenses $350 $14,750
Advertising & Marketing Costs $75 $9,636
Software Expenses $0 $425
Website Costs $13 $215
Other Expenses $0 $300
Total Startup Costs $2,254 $43,176

Successful Businesses

Business URL Rank
InflatableOffice inflatableoffice.com #267,987
American Rental Association ararental.org #535,764
Capital Online Auctions capitolonlineauctions.com #539,852
Signature Party Rentals signatureparty.com #576,462
Movie Screen Rentals funflicks.com #632,239
Colorado Party Rentals cpartyrentals.com #823,165
Town & Country Event Rentals tacer.biz #1,079,817
National Event Pros nationaleventpros.com #1,096,410
Peerless Events & Tents peerlesseventsandtents.com #1,106,565
Flatables cuttingedgecreations.com #1,174,788
Welcome to Danny Thomas Party Rentals dannythomaspartyrentals.com #1,235,880

Pros & Cons

Pros Description
Rewarding work Starting a party rental business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Meaningful business connections You never know who you will meet as a party rental business. This could be the start of an incredible business opportunity!
Daily physical activity Party Rental Business's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health.
Amazing perks and discounts Working in the party rental business comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.
You are your own boss! With starting a party rental business, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!
Local Community One of the best parts of starting a party rental business is that you can develop a local following by selling your products at craft shows, farmers' markets, or even local storefront businesses! This gives you access to additional revenue streams and loyal customers.
Cons Description
Crowded Space Competition is high when it comes to your party rental business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
Finding The Right Supplier Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Low margins The gross margins for your party rental business are typically around 43%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover In the party rental business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes As a party rental business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

Marketing Ideas

  • 1

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.