How to Start a Party Rental Business

Industry size and growth

The market size, measured by revenue of the Party Supply Rental business is $5.9 billion in 2022 and it’s expected to increase 4% in 2023. 

Trends and challenges

Trends in the Party rental industry include:

• With the trend towards “go-big” in 2022, outdoor events are expected to become more common. This presents an opportunity for specialty retailers who specialize tents and other items related to them–a perfect chance at establishing themselves as topnotch providers. In addition, rental décor such as decorative backdrops and items has become more common. These can help you stage your event in the perfect setting for everyone’s enjoyment. 

Challenges in the Party industry include:

• The pandemic continues to cast its shadow over the party rental industry as people may postpone or cancel events at the last minute.The party rental industry is experiencing higher than usual seasonality because of increased demand for outdoor events and slower business in indoor activities.

Pros and cons

There are many pros and cons to consider before deciding if starting an Party rental business is right for you.

Pros

• You can start small and add more items to your inventory as you go.  
• Join the party while working ? 
• The flexibility to work around your own schedule is one of the best things about this job. You can start part-time and still make money!

Cons

• High Startup Costs – lots of items to purchase
• High Risk – things break easily. Injuries are a risk.

So what rental equipment does a new business owner need to get started? The biggest mistake you can make when starting out is buying the same as your future competitors. Many times, websites will list items that don’t work well for renting and these could be things like office chairs or coffee makers; even though they may look good on paper! One thing we recommend at Sharefox is looking into all aspects of location before making any purchases because this plays an important role in determining which products would best suit YOUR needs – not someone else’s’.

As far as “starter” sets go:

• Wet/Dry Bounce House Slide Combos are great summer renters and can also be used in the colder months.
• Water Slides are great summer renters.
• Obstacle Courses are popular for schools and churches but wouldn’t recommend buying one your first year.
• Inflatable Interactive Games are popular for schools and churches but wouldn’t recommend buying one your first year or two. 
• Dunk Tanks have a lot of potential and are usually easy to set up since they are usually designed for “drop and go”. 
• Mechanical Bulls while there is demand for mechanical bulls, the safety and insurance requirements make them highly NOT RECOMMENDED for newer operators.

When starting a new business, one of the most important decisions you’ll have to make is how much time and money will be required for your venture. Create a busienss plan to get the overview for your party rental business. Dont know how to rite a business plan? Luckily we’ve got everything covered here at Sharefox so just start by writing down these subjects;

1. Write an executive summary
2. Company description
3. List your products and services
4. Perform a market analysis
5. Organization overview
6. Who is your customer?
7. Make a marketing plan
8. Provide a logistics and operations plan
9. Make a financial plan

READ: ”How to create a business plan for rental business”

What are the requirements for an well oiled rental machine? In this day and age, you cannot start anything without the correct rental software.  We have written a whole blog for you to use as a checklist. Make sure that you read it carefully.

A good rental software must contain these two functions:

• Online booking system: What your customer can actually see and experience on the website. Choosing, booking and paying.

• Management system: The part of the software that you use for handling orders, control inventory and have an efficient admin operation.

READ: ”Essential software and tools for a rental business”

Marketing isn’t a static industry. The top digital marketing strategies change with the consumer and technology trends of today, which is why every company needs to have an updated plan that they can get behind; a strategy built on what matters most: your customers’ needs and where to find them. Read our take on how to create a sustainable marketing strategy.

READ: ‘’How to create a marketing strategy for rental businesses’’