Starting a party rental business may be for you if you want low overhead costs. Birthdays happen every day, and a party rental company can provide a much-needed service to assist parents in setting up the perfect birthday party for their children.
Step 1Research your market; determine whether a party rental business is suitable for the area in which you live and intend to operate your business. Things to consider when doing your research include demographics, other party rental businesses in the area, the specific location in which you intend to open your business and any licensing requirements.
Step 2Create a business plan. The U.S. Small Business Administration recommends a malleable plan that can evolve as you feel out your business and market. In your plan, include a summary of how you will execute your business, a company description, market analysis, a marketing and sales plan, a description of your organization, a product or service description, a description of your funding sources and financial projections based on your market analysis.
Step 3Raise the necessary capital and purchase or lease your equipment. Base your purchase decisions on your market analysis and how much demand you think there will be for your services. Many people start party businesses out of the home and may simply rent equipment. However, having an established location out of the house can also be beneficial because it provides a location for families to have a birthday celebration.
Step 4Obtain the necessary licenses and permits to start a business. You can generally learn what licenses are needed and apply for such licenses through city hall.
Step 5Purchase liability insurance. Your city may require you to purchase a minimum amount of liability insurance to run your business, or you may have to determine how much you need on your own. Because you will be operating a business involving physical activity such as children and adults jumping around on inflatable toys, you should consider purchasing as much liability insurance as you can possibly afford. You want to be covered as much as possible in the event that someone is injured on your equipment or property and decides to sue.
Step 6Market your business. Network with other business professionals in the community and also take out advertisements in the newspaper or other publications that may be read by parents. Distribute your business cards to other business owners, friends and other acquaintances. Also market your business in areas where children are likely to be found. Create signs to put up in parks and fliers to distribute at skating rinks.