Introduction
If you are a hotelier by profession or experienced in organizing events and parties, and you aspire to be an entrepreneur check why the party rental business is the most suitable for you.
Companies belonging to the party and furniture rental industry are primarily engaged in the rental of furniture, housewares, tables and party equipment. As per IBIS the party supply rental industry is expected to grow 4.3% in 2022, though the business declined in 2019-2020 due to covid and then gradually improved from early 2021.
Why does the party rental business have potential?
The growth of the industry corelates with the disposable income. According to Trading Economics Global Macro Model the disposable personal income in the US is expected to reach 17400.00 USD billion by the end of this quarter. From a full year perspective, the US disposable personal income is estimated to be around 17800.00 USD billion in 2023. Eventually, in party supply commerce, it is expected to grow @ CAGR 14% which will take the current size 2.13 billion USD to 4.2 billion USD by 2027, just getting double in 5 years.
The nitty gritty of the party rental business.
As per research published in IBIS the party supply rentals in the United States depend on plant, machinery, equipment, and labor. The highest costs for businesses in the party supply rental industry in the United States as a percentage of revenue are wages (27.5%), purchasing (7%), and rent and utilities (7.1%).
Party rental business segments (Event wise)
- Wedding
- Birthday
- Corporate events
- Graduation events
- Awards ceremonies
Why must your party rental business portfolio have wedding niche?
Weddings are a full event industry. Along with engagements, family dinners, bachelor parties, weddings and receptions, a wedding is a completely different event with several lines of revenue generating scope. By focusing exclusively on weddings, your rental business can offer a wide variety of options to your potential customers.
Wedding trends in the USA
A micro wedding followed by a big party or a specialty party. According to Knot’s 2021 real wedding study the average cost of wedding was $28,000 including ceremony and reception, no doubt big deal. In 2020 the wedding count of USA was 1.68 million, in 2021 it was 1.9 million. and a record number 2.5 million are expected in 2022, the most since 1984.
Things to keep in mind to start a party rental business.
For your easy understanding let me list the fifteen things that you need to work on to start a party rental business
- Company formation.
- Licensing and permits.
- Recruitment.
- Outsourcing contract (Services like catering, music, lighting, entertaining events)
- Seating: Chairs, Tables, Sofa (Procurement or renting)
- Dining: Crockery and cutlery, serving gear (Procurement or renting)
- Cooking: Utensils, Stations (Procurement or renting)
- Tenting (Procurement or renting)
- Staging (Procurement or renting)
- Clothing: Linen, Cover (Procurement or renting)
- Sleeping: Bedding (Procurement or renting)
- Washing and Cleaning: Water, Station (Procurement or renting)
- Transportation (Service outsourcing)
- Marketing (Digital, Tie-up)
- Shop and Store
Did I miss anything, I do not think so!
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Conclusion
The USP for a party rental business is to give the customer peace of mind, customers want to source all services related to partying from single contact, hence, you should be ready to render all related services either from you directly or by outsourcing.
Do not forget to use uniforms for deployed manpower, and do not compromise with safety gear for those who will work on heights, and on fire safety equipment.
I hope you have understood the prospect of a party rental business in the current socio-economic context and future projections. In case you have any questions in mind please write to me.
Have a different party rental business idea in mind, kindly share.
Best of luck!
