A Step by Step Guide to Starting a Party and Special-Event Rentals Business

Description of Job

• Set up an inventory of party furniture and entertainment equipment for rental to individual and business clients.
• Act as a broker to use the equipment of other companies, as needed.
• Establish contacts with other suppliers of unusual equipment for rent.
• Deliver and set up equipment at client’s location.
• Pick up and clean equipment after the party.

The Need

Most of us put on a big bash only a handful of times in our lives:weddings,major anniversaries and birthdays, graduations, and the like. Very few of us have a garage full of folding chairs, banquet tables, umbrellas, audio equipment, and other elements of a successful party. A business may want to throw a party to celebrate a product introduction or a holiday, but is not likely to have tables and chairs and other equipment for guests. The job of the party and special-event rental company is to maintain an inventory of portable furniture and equipment, or establish and maintain relationships with other companies who can supply necessary equipment as needed. Most of the jobs for this sort of business will occur in places other than hotels, banquet halls, or church basements. Those locations will likely have their own chairs,tables,and equipment,or they may have master contracts with major companies. As a start-up company, you will be looking for jobs in nontraditional locations: perhaps a wedding on the beach at sunset or a graduation party in someone’s own backyard.

Challenges

If you will be offering your own equipment for rent, this sort of business can involve a large investment. You will also have to clean and maintain the furniture and equipment. The peak periods for special events and parties include summertime and holidays. At other times of the year there may be much less business, and competition with other suppliers may reduce prices and profits. However, if you will be working as a broker, you can let others make the investment and earn your profit as a percentage of the rental charges plus any other fees you might assess the client directly.
Know the Territory Learn as much as you can about the party and special-event calendar in your area; read the social pages of the newspaper as though they were a scouting report. Check the prices for rentals from competitors to help you draw up your business plan. Check wholesale supply companies for chairs and tables and other items you will be buying in quantity. Be on the lookout for restaurants or hotels going out of business or disposing of surplus equipment. Contact major rental companies and seek an arrangement as a broker. In doing so, you will be similar to party planners who offer their services in return for a percentage of the rental fee or the markup. Bill yourself as a specialist who can provide just about any piece of furniture and equipment—or an entire lawnful of them—from your various sources.

How to Get Started

Post flyers and ads at community centers, on church bulletin boards, and in stores. Place ads in local newspapers and shopping guides, including special wedding and holiday sections. Make your services known to party planners and caterers; offer to share commissions or a finder’s fee for business they direct to you. Ask satisfied customers to recommend you to friends and acquaintances; offer a bonus or discount for new business. Send letters to corporate event planners.

Up-front Expenses

If you will be establishing your own inventory, there will be a substantial upfront investment. Among the items you’ll need are chairs, chair covers, tables, umbrellas, a dance floor, and a portable bar. You’ll also need linens. For meals,you’ll need to provide utensils and china service. You may be able to partner with a caterer who will bring serving trays and equipment for the food preparation. If you will be operating as a broker,you will need to create a catalog of available items. Other expenses include advertising and promotion.

How Much to Charge

Rental companies generally charge a flat rate for each piece of furniture or equipment, taking into account the cost of equipment and depreciation. You can offer packages of blocks of tables, chairs, and other furniture at a discounted rate. Add a fee for delivery and pickup. If you will be functioning as a broker, seek a discount from the owner of the furniture or equipment and mark the prices up to the retail rate.

Legal and Insurance Issues

Special notes: You’ll want insurance on your equipment; don’t expect to collect if a single umbrella is stolen or if a table breaks, but you should be covered in case the tent burns down or the beach floods, resulting in the tragic loss of hundreds of folding chairs.