If you are looking for tips on how to start a party rental business, then you’re in the right place! 🎉
If there is one thing to learn from living through pandemics and lockdowns, it’s that a lot can change in a year. As a software provider for party rental businesses and live event suppliers, we’ve experienced firsthand the impact of Covid-19 on our industry.
While this has been a very dark moment for the industry, many companies used this time to work on their strategies and improve their business processes.
And, contrary to popular belief, starting a party rental business today could be one of those milestones that you'll look back on years from now as one of the best decisions you’ve ever made.
But if you want it to be successful, you're going to have to take the time to reflect and strategize on your future business.
To guide you through this, here are 10 steps you can follow on how to start a party rental business:
Types of Party Rental Businesses
Step 1: Study your market
Step 2: Write your business plan
Step 3: Register for business licenses, permits and taxes
Step 4: Purchase the right equipment
Step 5: Implement a pricing strategy
Step 6: Get insurance
Step 7: Keep track of your customers, orders, and due dates
Step 8: Invest in marketing
Step 9: Monitor your progress
Step 10: Grow your team
Things you should consider
Types of Party Rental Businesses
Ready to step into the world of party supplies? Before you dive head-first into the nitty-gritty of your next business success, it is important to determine your niche in the industry.
Let’s explore 4 party rental business ideas ranging from low to high investment costs, but all with the potential for scalable growth!
1. Photo Booth Rental: Capture Memories
“Say cheese!”
Photo booth rentals bring a unique and interactive experience to all kinds of events and for guests of all ages. These kinds of party rental supplies are easily adaptable, making them a worthwhile investment for starters. Set up a photo booth with props and backdrops for festivals, weddings, and corporate events.
Note that there are many different types of photo booths, from selfie stations to 360-degree photo booths. If you decide to go cheap on your initial investment, this means your rental price will be on the lower side as well.
Initial investment: $1.500 - $10.000 (photo booth and props)
ROI:
Revenue per event: $700
Net profit per event: $600
You can also offer various packages including prints, digital copies, and customized photo booth experiences. Have a look at some of the options in the table below.
Photo booth add-on | Average cost |
---|---|
Custom prop box | $40 - $100 |
Photo album, scrapbook or guest book | $110 - $250 |
Personalized photo strips or custom template | $30 - $50 |
Social media sharing, online gallery | $100 - $400 |
GIF or boomerang capabilities, custom/animated backdrop or overlay | $150 - $600 |
Video messaging | $100 - $250 |
Green screen, blacklight, custom start screen | $225 - $675 |
Digital image delivery (CD / DVD / USB) | $25 - $50 |
Red carpet, stanchion, booth branding/vinyl wrap | $200 - $800 |
Keep in mind that idle time or an early setup time can cost you up to $75 per hour. So make sure you keep your photo booth as productive as possible!
Source: Fash.com
2. Chair Rental: Creating Style and Comfort
A chair rental service provides customers with chairs for specific events or occasions. These types of party rental companies offer chairs for a designated period, along with convenient delivery and pick-up services.
Whether it's an intimate gathering or a large-scale affair, your chair rental business can help create the perfect seating arrangement to accommodate guests in comfort and style.
Initial investment: $3.000 - $10.000 (for 100 chairs) and $180 per month for a storage unit
ROI:
Revenue per event: $200 (excl. delivery)
Net profit per event: $190
This business idea can easily be expanded, by facilitating the next concept of tent rentals:
3. Tent Rental: Transforming Spaces
From elegant tents with flowing fabric and delicate lighting to sturdy frame tents, your tent rental business can cater to diverse event needs.
With an emphasis on quality and aesthetics, you can offer a range of options that match different themes and budgets, ensuring that each event is unique and memorable.
Initial investment: $2.000 - $10.000 (depending on the size of the tent) and $180 per month for a storage unit
ROI:
Revenue per event: $750 per day for an event with 100 people
Net profit per event: $650 per day (costs include transport and installation)
The rental price you can charge, really depends on the type and size of events you want to target. Let’s explore a couple of different options.
Event type | Tent size | Number of guests | Rental price of tent |
---|---|---|---|
Small family gathering | 20x20 party tent | Max. 40 people | $550 |
Local pop-up festival with a bar | 30x30 party tent | Max. 100 people | $1,000 |
Wedding with a dance floor & DJ | 30x60 party tent | Max. 120 people | $1,800 |
Business event (seating only) | 40x60 party tent | Max. 240 people | $2,400 |