Do you know there is massive wealth in rental business? This post will guide you on how to start a rental business in Nigeria. Maybe you are thinking of starting a business venture, the truth is that you can start any rental services without huge capital and it’s not limited to chairs, tables and canopy. There are over 100s of items you can start renting alongside your rental business and begin to make cool money.
It may interest you to know that despite the hard times, the economic situation of a country, people still find ways to host occasions. Parties are being organized almost every weekend. Be it birthday party, graduation, award ceremony, engagement to wedding ceremonies, meetings, conferences, family reunions among others. Going into a rental business may not be a bad idea as people organize ceremonies every now and then.
The gathering of people for different reasons or purpose is known as a “Party” or “Socializing”. It may be called something else in other part of the world. So as a young entrepreneur looking for a small scale business to invest in, rental business is that profitable enterprise to consider.
Chairs and tables rentals are an essential aspect of the party or social gathering. Event planners have to secure for enough tables and chairs to accommodate the number of guests being invited for the occasion. Since purchasing tables and chairs is costly, it is not wise for the organizers to purchase that numbers of chairs – hence, the boarding will fall on the event planners to source for enough chairs and tables from rental facilities. So if you are an aspiring entrepreneur, you can start a table and chair rental business and offer your services to local event planners. Starting a party rental business may be for you if you want low overhead costs.
The best thing about the party rental business is that it is a part-time kind of job while still in a full-time employment and you can also get your family involved too. Besides the chairs and tables, you can also offer other services like supplying of ice and drinks.
Other items you can rent alongside your rental business include: Table and chair, catering equipment, video camera, mobile toilet, generator, wedding gown.
Why party rental business
1. Profitability
Running a party rental business is highly profitable. With some good years of experience in the market, you can easily make thousands a month. In fact, big rental companies could make millions every month. It all depends on how much hard work and serious effort you put into it.
Most businesses have actually doubled their monthly income within the first five years of their establishment. The scope for growth is virtually unlimited – you can get it as big as you want it to be.
2. Opportunity for expansion
Once you are an established name in the party rental business, you can further expand your business by offering other party-related services such as special photography, organising a wedding event, or planning a church social. Since you are already a reputable party rental company, you will not have much difficulty finding clients to ask you to manage their event for them. This will give you the option to become an event planner later during your business career.
3. Home-Based Business
The great thing about the party rental business is that you can run it as a home-based business. In fact, most people start this business from home. However, there are a few things you need to keep in mind. For example, you are recommended to have a second phone line, as this will make things much easier for you to work with. Do not let your kids attend these calls.
You can definitely get help from other family members who are mature enough to deal with clients, however. If you plan everything well, doing things like this will keep your overheads low and your profits high.
If you already have a decent job, you are recommended to start your party rental business as a part-time business. It is only after you are established and have started making a good profit that you should consider taking it up as a full time job. Once you know how to start a party rental business, though, it won’t be long before the dream of quitting your current job can become a reality.
However to succeed in the business there are major steps you will need to follow and these include the following:
4. Research
Investigate 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.
5. Prepare a Business Plan
The business plan helps you to properly shape your business. If you cannot prepare a business plan, get an expert in that field to prepare it for you as it will guide you on all areas of your business. It will also help you if you want to secure a loan as the bank or lender will need it to evaluate your business.
6. Start-Up Budget
The start-up budget to establish a party rental business will depend upon the type of rental services you are offering. Raise 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, hence you can partner with an established event centre.
7. Purchase
Select a wholesale table and chair supplier and purchase a supply of chairs and tables to fit the target market you want to reach. Decide whether you want to purchase round, square or rectangular tables and whether you want the chairs with padding or not. Start with enough tables and chairs to seat 300 guests. It may also be beneficial to buy at least one big van, if you can afford it. This is if you will be providing tables and chairs or inflatable. Meet commercial laundries if you anticipate having to wash high volumes of tablecloths and napkins.
8. Pricing
Decide how much you plan to charge for table and chair rentals and whether or not you’ll set minimum and maximum quantities for rentals. Take into account every of your cost when figuring out the rates you will charge.
Overhead includes utilities, labor costs, rents, supplies, vehicles, fuel and insurance.
Assess rental fees by the number of chairs and tables rented and the number of hours an individual or group reserves them. It is also important for you to compare notes with other competitors around you.
9. Location
You can purchase or lease garage space or a store-front to hold the tables and chairs you purchase. Set up your location so that potential customers can visit your space and take a look at the types of chairs and tables they can rent from you.
10. Distribution
You have to determine how to move the goods and services from one place to another. Plan to purchase a truck at lease fairly used to start with in case demand comes from a long distance.
11. Marketing
Network with other business professionals in the community and also take out advertisements in the newspaper or other publications that may be read by clients 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.
12. Advertise Your Business
Advertising provides basic information of your business; it increases sales as potential customers get to know your product and services. Advertising both offline and online bring the needed traffic to your business. It helps to inform customers of your offer; it changes people’s perception of your business and makes you stand out from your competitor. Though expensive, there are others ways of advertising like; distributing of hand-bill, placing of banner in a strategic area for people to see, radio announcement.
SOURCE@ businessinfofinder.com
