Party Rental Business Plan Template
If you want to start a party rental business or expand your current party rental business, you need a business plan.
The following Party Rental business plan template gives you the key elements to include in a winning Party Rental business plan. In addition to this template, a solid plan will also include market research to help you better understand market trends, your competitive advantage and your target customers. It will also help you craft your mission statement, marketing plan and strong financial projections.
Party Rental Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a new party rental business located in [Location]. Our mission is to provide high-quality decor and supplies to make every party or special gathering an unforgettable event. Our massive catalog includes furniture, inflatables, catering supplies, and activities. These all come in numerous styles and designs to fit any aesthetic. We offer short-term and long-term rentals and provide both pickup and delivery services. So whether our customers are planning a low-key birthday party or a luxurious corporate event, we have all the supplies needed to make their party unforgettable.
Products Served
[Company Name] offers a variety of party supplies, furniture, and gear for rent. Whether a customer is setting up a birthday party or a more formal occasion, we have all the supplies needed to make it unforgettable. Some of the items we rent out include:
- Tents
- Furniture
- Catering supplies
- Decorations
- Linens
- Games and activities
- Inflatables
Rentals can be booked on our website or in our store. We offer both short-term and long-term rentals on all of our supplies. We also provide a delivery and set-up service for larger gatherings and events. Minimum purchase applies.
Customer Focus
[Company Name] will serve residents living within 20 miles of the company’s location. The demographics of this area are as follows:
- 94,308 residents
- Median age: 35
- Average salary: $75,000
- 45% married
- 31% with families/children under 18
Management Team
[Company Name] is led by [Founder’s Name] who graduated from [University] where he majored in Business Administration. While [Founder’s Name] has never run his own party rental business before, he has worked in the party rental industry most recently as a general manager, and has helped customers set up their numerous events. As such [Founder’s Name] has in-depth knowledge of the operations and the management (e.g., scheduling, organizing, marketing, etc.) sides of this business.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- There is a high demand for party rental supply businesses. Party planning is stressful and expensive. Party rental stores help reduce stress by providing all the supplies needed and delivering them to the event.
- The management team has a track record of success in the party rental industry.
- The party rental business is a proven business and has succeeded in communities throughout the United States.
Financial Highlights
[Company Name] is currently seeking $500,000 to launch. The funding will be dedicated to the store build-out, equipment and supplies, overhead, marketing expenses, and working capital. The breakout of the funding is below:
- Store design/build: $250,000
- Initial supplies and inventory: $150,000
- Working capital: $100,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name] is a new party rental business located in [Location]. Our mission is to provide high-quality decor and supplies to make every party or special gathering an unforgettable event. Our massive catalog includes furniture, inflatables, catering supplies, and activities that come in all styles and designs to fit any aesthetic. We offer short-term and long-term rentals and provide both pickup and delivery services. So whether our customers are planning a low-key birthday party or a luxurious corporate event, we have all the supplies needed to make their party unforgettable.
[Company Name] is led by [Founder’s Name], who has worked in the party rental industry for [X] years. [Founder’s Name] has helped hundreds of customers plan and set up their events, ensuring each one was properly supplied with all the furniture, items, and decor it needed to be a success. As such, he has a keen intuition that helps him understand what his customers are looking for and what supplies are needed to make each event unforgettable.
[Company Name]’s History
[Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation]. The business is currently being run out of [Founder’s Name] home, but once the build-out on [Company Name]’s retail location is finalized, all operations will be run from there.
Since incorporation, [Company Name] has achieved the following milestones:
- Found a retail space and signed a Letter of Intent to purchase it
- Developed the company’s name, logo, and website located at [website]
- Determined equipment and inventory requirements
- Begun recruiting key employees
[Company Name]’s Products/Services
[Company Name] provides a full suite of products, furniture, and supplies to ensure every party is an unforgettable experience. This includes tents, chairs, tables, catering equipment, games, inflatables, and more. Every category offers items in numerous styles to ensure we have something that suits every aesthetic.
III. Industry Analysis
Everyone loves a good party but few people enjoy planning them. The most important aspect of party planning is ensuring that there is enough furniture, activities, decorations, and other items to keep all the guests happy throughout the event. Anyone doing this on their own knows how expensive and stressful this all can be. That’s why they trust party rental companies to handle the work for them.
As such, the party rental industry is in high demand. According to Global Newswire, the party supply rental market was valued at $12.38 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 14.86% from now until 2030. This shows that the party rental industry is a booming and necessary industry that is showing no signs of slowing down.
However, the industry is dependent on several factors for continued success. The party rental industry depends on the willingness of households and businesses to spend money on social gatherings. American households seek supplies for birthday parties, reunions, and other special family gatherings. Businesses seek supplies for corporate meetings, holiday dinners, fundraisers, and client appreciation events. Therefore, the demand for the industry’s services is primarily driven by increases in per capita disposable income as well as corporate profit levels.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the community residents of [Location] and its surrounding areas.
The community has a much higher median salary than most cities, which shows that many residents have the disposable income to spend on parties and events. Furthermore, the community is full of families looking for amazing party experiences that include high-quality supplies, gear, and activities. Therefore, numerous customer segments would be interested in our products.
Customer Segmentation
[Company Name] will primarily target the following customer segments:
- Families: Families often plan many special events throughout the year, including birthday parties, reunions, holidays, and other special occasions. Therefore, we will ensure to make our marketing family-friendly and showcase all the typical gear that would be rented for these occasions.
- Small Corporations: Small businesses often set up special events for team building, meetings, and corporate gatherings. We will offer a wide selection of professional supplies and decor that will accommodate this segment.
- Mstrong>Affluent Residents: Planning a party can be expensive. So although we work hard to price our rentals affordably, we still expect most of our customers to belong to the upper middle or affluent classes of [Location].
V. Competitive Analysis
Direct & Indirect Competitors
The following businesses are located within a 20-mile radius of [Company Name], thus providing either direct or indirect competition for customers:
The Event Pros
Since the 1980s, The Event Pros has been the nationwide go-to store for all party rental supplies and products. The Event Pros offers a variety of party gear and supplies to rent, including tents, catering supplies, furniture, and inflatables. Customers can find everything they need on The Event Pros website and receive the supplies in time for their scheduled event. Since they have a nationwide presence, we expect The Event Pros to be our biggest competitor in this market.
Party Rentals USA
Party Rentals USA has been a supplier of all things event-related for three decades. When customers want to plan the perfect party or event, they can find everything they need at Party Rentals USA. The company rents out a wide selection of supplies and decor to create the perfect atmosphere for any birthday, reunion, or other celebration.
Though Party Rentals USA will continue to thrive, the company specifically caters to a middle-class market. They focus on family gatherings and do not typically supply corporate or fancier events. As such, we expect that they will only be a minor competitor for our customer base.
Rick’s Party Rentals
Rick’s Party Rentals has been the most popular local establishment to rent out gear and supplies for parties and special events since its humble beginnings in 2005. With a focus on long-term relationships and customer satisfaction, Rick’s has established a loyal customer base that depends on the establishment for every event they plan. At Rick’s, customers can rent anything they need for their party, including furniture, decor, and activities. With such a loyal customer base, we expect Rick’s to be a difficult competitor for our target market.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Location: [Company Name] is located in the downtown area, providing the company with the best access to corporate centers, schools, offices, and high-end residences. This makes our store easy to access for customers who want to choose their rentals in person.
- Management: [Company Name]’s management team has years of business and marketing experience in addition to experience running a party rental store. This allows the company to market to and serve customers in a much more sophisticated manner than competitors.
- Customer service: [Company Name] exhibits a strong dedication to perfect customer service. All customers will experience friendly and knowledgeable professionals at every step of the rental process.
- Relationships: Having lived in the community for several years, [Founder’s Name] knows all of the local leaders, newspapers, and other influences. As such, it will be relatively easy for us to build the brand and awareness of the venue.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the company’s unique value proposition:
- Offering high-quality party supplies and gear
- Offering a central location in the downtown area
- Providing excellent customer service
Promotions Strategy
[Company Name] expects its target market to be residents within a 20-mile radius of its location. The company’s promotion strategy to reach these customers includes:
Social Media
[Company Name] will invest heavily in a social media advertising campaign. [Founder’s Name] will create the company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.
Website/SEO
[Company Name] will invest heavily in developing a professional website that displays all of the products in our store. It will also invest heavily in SEO so that the company’s website will appear at the top of search engine results.
Direct Mail
[Company Name] will blanket neighborhoods surrounding its location with direct mail pieces. These pieces will offer discounts and promotional incentives for people to visit our store.
Ongoing Customer Communications
[Company Name] will publish a monthly email newsletter to tell customers about promotions, events, and discounts.
Billboard Advertising
We will drive attention toward [Company Name] by leasing a billboard alongside [route or highway]. Advertising on heavily traveled commute routes is an opportunity to alert large numbers of individuals who need party supplies to our opening.
Publications
The company will also invest in advertising in selected local and national publications such as magazines, newspapers, and other publications to build brand awareness and draw in new customers.
Pricing Strategy
[Company Name]’s pricing will be moderate and on par with competitors so consumers feel they receive great value when renting our party supplies.
VII. Operations Plan
Functional Roles
To execute [Company Name]’s business model, the company needs to perform several functions:
Service Functions
- Party rental consultations
- Rental delivery and set-up
- Confirm rental bookings
- Customer service/cash register functions
Administrative Functions
- Marketing
- Bookkeeping
- Sourcing and storing supplies and inventory
- Hiring and training staff
- General maintenance functions
- Other general administrative functions
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is led by [Founder’s Name] who graduated from [University] where he majored in Business Administration. When he was young, he loved going to parties and other special gatherings. He was always impressed with how much planning went into creating such a special event. He decided before graduating from college that he would use his skills in the party rental industry to help others who are planning special and unforgettable events.
Though he has never run his own business before, [Founder’s Name] has enough party rental knowledge and industry experience to run this business successfully. During his time managing a party rental store, [Founder’s Name] learned all aspects of party planning and supplies. This includes an in-depth knowledge of gear, brands, and supplies, as well as a solid understanding of the operations and management sides of the business. His knowledge and expertise will prove invaluable to the business.
Hiring Plan
[Founder’s Name] will serve as the President of the company and the Store Manager. To launch, he needs to hire the following personnel:
- Assistant Managers (2 to start)
- Store Representatives (3 to start)
- Delivery/Set-Up Personnel (2 to start)
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will primarily come from renting out party gear and supplies.
The major costs for the company will include the inventory and supplies costs, salaries of the staff, and rent/overhead costs. In the initial years, the company’s marketing spending will be high as it establishes itself in the market.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $500,000 to launch. Specifically, these funds will be used as follows:
- Store design/build: $250,000
- Initial supplies and inventory: $150,000
- Working capital: $100,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
