How to Start an Inflatable Rental Business
This entry was posted on July 22, 2015.
With the onset of spring, the question of starting a bounce house rental company pops in your head. The next question you immediately think of is how to start the business? Establishing and owning your own rental business could certainly be a worthwhile venture; however, for it to succeed you need to put in a lot of hard work and have a well formulated business plan. This business is not a quick way to earn fast cash at all; it takes quite a while to build long term revenue.
The main purpose of this article is to help you create a long term revenue stream to your business. It has been seen over the ages that there are generalized concepts that can be incorporated for starting a rental business and also that there are some innovative strategies that can benefit individual businesses. However, the most important factor has always been the basics. So, this article first talks of the basics and advances to some unique concepts that can be fruitful for your business depending upon its location.
It is often observed that people want to start their own bounce house business and they plan for 10 inflatables to start with. This is a critical mistake! A supplier will be more than happy to sell you 10 inflatables for you to start your business; it is very less likely that you will have to buy another one anytime in the near future. This is because you will have a low success rate in the first place.
The reason that contributes to the downfall of your rental business in its initial stage is that many of the inflatables will lay idle. This will cost you some unnecessary investment. You only earn cash when your products are rented. And this should be the principle of your business. Let's look into an illustration.
Assume you purchase 10 inflatables for $2000 each which amounts to $20,000 in total. Now let's say you rent out 2 inflatables every Saturday and Sunday for $100 a day each. This amounts to $400 a week and $4800 for 12 weeks. Therefore, you incur a loss of $15200 over the 12 weeks. Now suppose you start your business with 2 inflatables. Then the total investment equals $4000. Following the same rental scenario, you clearly earn a small profit. Therefore the bottom line is, start your rental business with 2 or 3 inflatables and as the business develops purchase more inflatables. Additionally, generic themed items like castles are also recommended.
One of the most effective plans while starting your own inflatable rental business is to stick to basic designs. Since you are just starting off, you need to focus on the basic products commonly rented by the masses. As your business expands, you will know which products are preferred by which type of clients.
You will also need to consult an attorney. This is crucial as they will provide advice on incorporating and starting a business under your local laws. They will also provide you a rental agreement, which is very crucial for this business. However, you must remember not to accept any rental agreement from anyone other than your attorney, who will provide you a legal one.
Besides a workable business plan and hiring an attorney, starting an inflatable rental business demands consideration on some other categories:
- *A heavy-duty commercial grade dolly
- *Rental agreements
- *Vehicle for transporting equipment
- *Rental Insurance
- *Cleaning supplies
- *Power source
- *Tents, tables and chairs
- *Concessions like popcorn and cotton candy machines
At Tent and Table, in addition to supplying the inflatables you require, we can also supply many of the other items you will need to make your business a success.