Can you start a party rental business with just $500? If you plan it properly, you certainly can. Lee Jones recently shared his guide on creating a party rental business for only...
Can you start a party rental business with just $500? If you plan it properly, you certainly can. Lee Jones recently shared his guide on creating a party rental business for only $500. He goes through every step he would take if he were to start over and makes it sound straightforward. You can view his video below and read on for our detailed breakdown.
Before you start buying equipment, the very minimum you need is somewhere to store equipment like a shed or garage and something to transport the equipment like an SUV or van. You also need $500 that you can afford to invest in your new business venture and Facebook as you will be starting on the marketplace. With the basics out of the way, let’s get started.
For aggressive growth, Lee recommends investing in a party package. This consists of tables, chairs and a tent. As a rough estimate, he says you can get 18 chairs for $230, three 6ft tables for $50 each, and a 10ft x 20ft tent for $145. If you’re counting, that comes out at $525, just slightly over the $500 budget. Although, you should always shop around for deals.
Next, in order to rent out your package, you need to be able to show it off. So, it would be best if you took some pictures of them all set up together. Ideally, you will create an inviting party set up in your garden. This will help to sell your package to potential customers by giving them a feel of what their experience will be like.
Regarding pricing, Lee recommends setting the price for a package rental over a weekend at $150. Then, you can let people pick it up from you or charge them a delivery and setup fee. He says that he found the best price to charge for this was $50 to drop it off and $50 to pick it back up. So, basically, you can charge $100 for this service.
Of course, when you’re just starting out, you won’t have the knowledge or money to invest in a website or marketing. So, Lee recommends that you start with Facebook Marketplace. He explains that many people use the marketplace, so it’s the best place to get eyes on your equipment when you’re just starting without investing too much time.
At $150 per rental/weekend, you should have enough to invest in another whole package after four weeks. Lee recommends investing in a second package so that you can rent out two per weekend. After your second month, you can afford another two packages, and you will have plenty of equipment to rent out throughout the summer.
This might seem counter-intuitive, but Lee recommends selling all of your equipment at the end of the summer. They have excellent resale value, which will seed your next investment. He says you should upgrade your equipment and invest in better quality products. His examples are marquee tents and professional chairs and tables, which you can charge more for.
Once you reach this point, you should be making a decent income from renting out packages. You can now start investing in a website, rental software to manage bookings, and marketing more broadly. Read our guide to starting an online rental business for advice on next steps.
You can check out Lee’s YouTube channel if you want to know more about starting and running a party rental business. It contains wonderful insight and informative guides for getting the most out of your party rental business, what worked for him, and how you can grow your own party rental business.
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