Booking Calendar: A must have tool for growing your rental business
In the rental industry, one tool has emerged as a game-changer – the booking calendar. Read why this is a must have for any serious rental businesses
Are you considering venturing into the world of event space rental business or looking to automate and optimize your current rental business? If so, you’re in for an exciting and potentially lucrative endeavor. Event spaces have become increasingly popular for various occasions, from weddings and corporate meetings to birthday parties and workshops. However, to succeed in this competitive industry, you need more than just a vacant space. This comprehensive guide will walk you through the process of starting and running a successful event space business, providing you with valuable insights and strategies to outrank your competitors and thrive in the market.
Before diving into the nitty-gritty details of starting an event space rental business, let’s define what an event space is. An event space is a versatile location that individuals or organizations can rent to host a wide range of events. These spaces can vary in size and style, catering to different event types and preferences. They may include banquet halls, outdoor gardens, industrial lofts, football stadiums with conference rooms and even unique venues like historic mansions or art galleries.
Event spaces serve as blank canvases for clients to transform according to their event’s theme and purpose. As an event space owner, you provide the canvas, and your clients bring their creative visions to life.
Now, let’s address the elephant in the room: profitability. Starting an event space rental business can be highly profitable, but it requires careful planning and execution. The revenue potential of your event space depends on several factors, including location, capacity, amenities, and marketing efforts.
Now that we’ve laid the groundwork, let’s explore the challenges and pain points faced by both event space seekers and owners and how you can address them to make your business stand out.
The pricing for an event venue is contingent on the event’s size, but on average, it hovers around $13,000. You should aim for a profit margin of approximately 30% after accounting for labor and overhead costs.
During your initial one or two years, you may host around 15 events annually, resulting in $195,000 in yearly revenue. This, in turn, would yield a profit of $58,000, assuming a 30% profit margin.
Event space rentals represent significant capital investments that are often underutilized.
Through full automation of rentals, each rental could potentially contribute nearly 100% in net profit, with minimal expenses. Unlike items like cars, properties typically do not depreciate significantly in value over time or with use.
Many organizations own properties that they do not rent out for various reasons, including:
This situation is common among numerous commercial organizations.
On the other hand, some organizations do rent out properties but do so in a limited or unprofessional manner, leaving ample room for improvement and increased revenue. This scenario is prevalent among many well-suited organizations.
To optimize your event space business, it’s crucial to understand your customers’ journey. This involves recognizing their pain points and finding solutions to make their experience seamless.
Here are some of the main issues that our clients encounter:
Key Box Insecurity: Using a key box poses security concerns and maintenance hassles.
Now that you’re aware of the challenges and solutions, consider incorporating a comprehensive platform like Sharefox rental software into your event space rental business. Sharefox can transform your operation and provide a seamless experience for both clients and event space owners. It is an all-in-one platform, so Sharefox will function as your one stop solution for all your rental operations.
Let’s address all the pain points from above and see how Sharefox is handling this:
By embracing Sharefox and implementing the strategies outlined in this guide, you can not only address common pain points but also elevate your event space rental business to new heights.
In conclusion, starting an event space rental business can be a rewarding endeavor, both creatively and financially. By understanding the needs and pain points of your potential clients and addressing them effectively, you can set yourself apart in this competitive industry and in the beginning of your rental journey instead of being 5-7 years into your dream before realizing these pain points. . Invest in a well-designed website, utilize SEO strategies to boost visibility, and consider adopting a comprehensive platform like Sharefox to streamline operations and get a live availability calendar.
Remember that success in the event space business is not just about renting out a physical location; it’s about creating memorable experiences for your clients. Offer exceptional customer service, provide a wide range of services and amenities, and continuously seek ways to improve and innovate. This is mostly doable by automating all your processes so that you have the time to create great experiences for your customers.