PartyZone Entertainment

How to start a Rental Co.

1. Why would I want to start a Party Rental Business?

Party Rentals are a great home based business with a low initial investment with extremely fast cash return.
Very low overhead...can start simply with a phone, some fliers and 1 piece of equipment.
It's great fun for the whole family!
Very little advertising costs...word of mouth is the biggest advertisement.
Great part-time starter business..keep your present job and grow as you desire.


2. What will I be doing?

Renting equipment for children's parties and special events. Start up equipment usually consists of moon bounces, spin art, temporary tatoos, carnival games, cotton candy or snowcone machines and themed party decorations.


3. How do I get started and what's the cost?

Set up your company. Talk to an account to check out the local business laws and make sure your business is set up correctly for accounting. Assume you're going to grow quite a bit. (It's alot easier to act like a business from the beginning than backtrack later). Pick a name that's fun and exciting. Decide what kind of rentals you'd like to do...birthday parties, large events...or both! **'s less expensive and easier to start with parties...once you get your feet wet you'll automatically grow to the bigger stuff. Don't forget to check on insurance. (Average ins costs are 900-1200.00 per unit per year). Talk to your inflatable sales person again and again if necessary. Learn all you can about the business. A good sales person will take the time to help you design your business.

Once you've decided what pieces of equipment you're starting with...Place your order! Most pieces take 3-4 weeks for delivery unless they're in stock.

Start up costs are around $2500.00 and up depending on the amount of equipment you purchase.


4. While you're waiting for your equipment!

Tell EVERYONE about your new business! Make up some simple fliers & business cards. Put fliers in grocery stores. Put in a 2nd phone line. This business grows in leaps and bounds and you'll need it for some control in your life. Remember...word of mouth is the best advertisement. Set up pricing for your parties...will there be a delivery fee? Do you want to offer package prices or just straight bounce rentals? After you get your unit...offer to set it up at a local soccer meet or other event. Set it up across from and elementary school with a Rent ME sign in front of it. And START MAKING MONEY!!!


5. Where do I look for customers?

Kids everywhere! Birthday parties, church events, family reunions, post prom parties, summer camps, corporate picnics & events, holiday parties, store promotions, school parties, street fairs and festivals (be careful with street fairs and to your salesperson about the risks of "pay for play"), swap meets, pre-schools, day cares, Halloween festivals, fund raisers, car dealerships, grand openings, shopping malls and lots lots more...don't forget family reunions. Look for all the posibilities!


6. How long before I'll show a profit? depends on how hard you'll work. Rentals for small bounces run from $75.00-250.00 for a 4-8 hour day. You'll make much more if you sell packages made up of a bounce/fun food/and games or spin art. You're dropping off equipment anyway..why not maximize your profits! Each bounce should rent a minimum of 1 1/2 times a week on the average. You should push to rent 1 bounce as many times as possible each week. Offer a lower rate for Monday-Thurs rentals. If your bounce rental is $150.00 (which is a low standard in much of the country...based on average rentals of 1 1/2 times a week for 7 months (very few of us work 12 mos/year, You should make approx $6750.00 for that one unit. If you want to maximize your rentals...really push that unit. Assume you rent another 2 times a week at 1/2 price. This adds $4500.00 for the 7 mos. Total income turning into $11,250....for just one unit that costs less than 3,000.00. Just image what you can do if you add to your profit with packages...or purchase 3 more bounces! 4 bounces averaging $225.00 each week for 30 weeks + $27,000.00. Not bad for a part time home business!


7. Are there any hidden costs?

You'll need access to a vehicle for deliveries..either your own or you'll need to pay someone to make deliveries. You need a garage or small trailer to store the units.

Assume you'll have some small advertising costs for brochures, business cards, etc. And you'll need an accountant periodically.

Don't forget insurance.

You'll need a dolly, good extension cords, sandbags, cleaning solution & a broom.

That's about it for hidden costs. You will have to pay freight on the delivery of your units. The freight costs vary based on shipping points and the size of the units ordered.


8. Where do I go to grow?

Just start adding more equipment. Just don't purchase too much at a time. The most successful rental companies maximize the use of their equipment. Before you spend a fortune on a "showpiece" work the numbers and make sure it'll make you more money than you would make if you bought 2-3 less expensive pieces.


9. What kind of headaches can I expect?

Just like any business're going to have a number of them. Weather problems are big. If you're using subcontract help for deliveries..assume there are times they won't show on time. If you purchase your equipment too close to your rental date...there's always the chance it'll be late. Remember, for the most part you're not dealing with stock items....though it's the nature for purchasers in this industry to place their order when they start booking their units (many times after the unit is booked)a number of people have gotten burned by doing this. Sometimes the unit just doesn't arrive on time due to delivery problems or manufacturing problems. Just stay in touch with your salesperson...and be aware to all posibilities.

One last thing...remember..inflatables are sewn vinyl..Should by chance you have an act of vandalism before an event....units can always be patched. Check with your salesperson on how to handle any possible emergency that might come up.

Also, ask for a usage guideline that might help you with any unforseen problems.


10. Now what???


If you're looking for even MORE information on party rental start up...check out our booklet on "How to Start Party Rentals". It's got all the tips you need...and the cost is taken off your first order.


Order your 2004 pricelist!




PartyZone Entertainment
708 West Main Street: Plainfield, IN 46168
phone:  1-317-838-9406  fax:  1-317-838-9424

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