Party Rental Business Plan Template

Party Rental Business Plan

You’ve come to the right place to create your Party Rental business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Party Rental businesses.

Below is a template to help you create each section of your Party Rental business plan.

Executive Summary

Business Overview

Sonny’s Party Rentals is a full-service party rental company located in Portland, Oregon. We provide everything our customers need to turn their dream party or event into a reality, including furniture, linens, decorations, and other supplies. Customers planning weddings, graduations, corporate events, or other gatherings can find every item they need to make their event a success. With our excellent service, fast delivery and setup, and quality supplies, we are bound to become the largest party rental business in the Pacific Northwest in the next several years.

Sonny’s Party Rentals is founded by Sonny Monti, who has been the manager of an event planning company for several decades. As such, he is familiar with the stress that customers experience while planning an event, as well as what it takes to make those events a success. His management experience, expertise, and education will be invaluable to our company.

 

Product Offering

Sonny’s Party Rentals will sell everything needed to create a perfect party or event. This includes furniture, linens, dishes, decorations, and lighting. All of our products will be made with premium quality materials and be given a modern and elegant design to ensure that every party or event is given a luxurious feel.

 

Customer Focus

Sonny’s Party Rentals will serve individuals and businesses in the Portland, Oregon area that are planning a major event. These events will include weddings, graduations, house parties, and corporate events. Since these events are often expensive, we expect most of our clientele will be upper-middle class or affluent.

 

Management Team

Sonny’s Party Rentals is founded by Sonny Monti. Sonny has worked in the event planning industry for several decades. As such, he understands what our customers need to create the perfect party or event. His skills and expertise will help us serve our customers better than the competition, and his experience as a manager at a large company will help guide our business to success.

 

Success Factors

Sonny’s Party Rentals is primed for success by offering the following competitive advantages:

• There are very few party rental companies in the region, which means we will have little competition.
• Sonny has experience working in the event planning industry as well as running the operations of a large business.
• All of our items will be made with an appealing, modern, and elegant design that will turn any event into a luxurious experience. This will make our products more enticing and appealing than the competition’s.

 

Financial Highlights

Sonny’s Party Rentals is currently seeking $700,000 to launch. The funding will be dedicated to the office build-out, purchase of initial inventory and supplies, working capital, marketing costs, and startup overhead expenses. The breakout of the funding is below:

• Facility design/build: $100,000
• Initial equipment and supplies: $300,000
• Three months of overhead expenses (payroll, rent, utilities): $100,000
• Marketing costs: $100,000
• Working capital: $100,000

The following graph below outlines the pro forma financial projections for Sonny’s Party Rentals.

 

Company Overview

Who is Sonny’s Party Rentals?

Sonny’s Party Rentals is a party rental business located in Portland, Oregon. We provide an extensive list of party supplies, including furniture, structures, linens, decorations, and lighting. We aim the be the #1 party supply store in the Pacific Northwest for those who are planning weddings, parties, corporate events, or similar gatherings. Though we are located in Portland, we expect much of our clientele will live outside the city, so we expect to be a major supplier for the entire region.

 
Sonny’s Party Rentals is founded by Sonny Monti. Sonny has been the manager of an event planning company for several decades. As such, he is familiar with the stress that customers experience while planning an event, as well as what it takes to make those events a success. His management experience, expertise, and education will be invaluable to our company.

 

Sonny’s Party Rentals History

Sonny Monti incorporated Sonny’s Party Rentals as an S-Corporation on April 1st, 2023. The business is currently being run out of Sonny’s home, but once the lease for Sonny’s Party Rentals’ retail location is finalized, all operations will be run from there.

Since its incorporation, Sonny’s Party Rentals has achieved the following milestones:

• Found an office space and signed a Letter of Intent to purchase it
• Developed the company’s name, logo, and website
• Determined equipment and inventory requirements
• Begun recruiting key employees

 

Sonny’s Party Rentals Services

Sonny’s Party Rentals will provide everything our customers need to make their event successful. This will include, but is not limited to, the following:

• Chairs
• Tables
• Linens
• Decorations
• Lighting
• Tents
• Staging
• Flowers
• Dishes

We will deliver all the supplies before the event and set everything up. Once the event has finished, we will promptly come by to clean and take down everything.

 

Industry Analysis

According to Business Wire, the party supply rental industry is currently valued at $2,131 million USD and is expected to grow at a CAGR of 14.55% from now until 2027. This shows that the industry is in high demand and that many people around the country require our services to make their party a success.

There are two major factors affecting this growth. The first is the rise in disposable income. As more people have disposable income to spend on parties and other enjoyable experiences, there will be a rise in how many people plan extravagant weddings, parties, and other events. As such, companies like Sonny’s Party Rentals will be in higher demand.

The second factor affecting this growth is the end of the pandemic. For several years, group gatherings were unsafe, so few people were planning large parties and events. Now that the pandemic is over, people are taking full advantage of being able to enjoy time with their loved ones again. As such, we are seeing a dramatic rise in large weddings and parties.

 

Customer Analysis

Demographic Profile of Target Market

Sonny’s Party Rentals will serve individuals and businesses in the Portland, Oregon area that are planning a major event. These events will include weddings, graduations, house parties, and corporate events. Since these events are often expensive, we expect most of our clientele will be upper-middle class or affluent.

 

Customer Segmentation

Sonny’s Party Rentals will primarily target customers who are planning the following events:

• Weddings
• Corporate events
• Parties

 

Competitive Analysis

Direct and Indirect Competitors

Sonny’s Party Rentals will face competition from other companies with similar business profiles. A description of each competitor company is below.

 

Rick’s Party Rentals

For nearly a decade, Rick’s Party Rentals has been a popular source of party supplies and furniture for the residents of the Pacific Northwest. They have an extensive selection of party supplies for their customers, including tents, furniture, dishware, and decorations.

Rick’s is the perfect place for those who want to create a full party experience without worrying about the cost. Their rentals are moderately priced, which makes Rick’s rentals very popular in the area. However, the low costs result in lower-quality products. Those who require premium and elegant supplies for their party will be more inclined to rent with Sonny’s Party Rentals.

 

The Party Warehouse

The Party Warehouse has been a major supplier for local parties and events for decades. Every item that a person could want for their special event is sold at The Party Warehouse. This includes tents, tables, chairs, linens, lighting, dishes, and more.

While The Party Warehouse has a very successful business model, their items are mass produced so they do not have the same quality as the items that Sonny’s will offer. As such, many people who want everything to be perfect for their event will prefer to rent from Sonny’s.

 

The Wedding Store

Established in 2015, The Wedding Store has been one of the most popular businesses in the region to rent wedding furniture and supplies. The Wedding Store is a wholly online store that rents out wedding furniture, decorations, and other supplies to make every wedding a dream come true.

Though The Wedding Store will continue to thrive, the store is completely online, so customers cannot see their items in person until they are delivered. Many customers want to actually see the furniture and decorations before deciding which items to rent. Furthermore, The Wedding Store only supplies rentals for weddings. As such, they will only be a minor competitor since Sonny’s caters to all special events.

 

Competitive Advantage

Sonny’s Party Rentals will be able to offer the following advantages over their competition:

• Management: Sonny’s Party Rentals’ management team has years of industry and marketing experience that allows the company to market to and serve customers in a much more sophisticated manner than competitors.
• Customer service: Sonny’s Party Rentals exhibits a strong dedication to perfect customer service every step of the way. From the first time a customer visits our site to the day their rental equipment arrives, they will receive the best customer service that can be found in the industry.
• Quality: All of our items are made with the highest quality materials and designed with elegance in mind. As such, our products will turn any event into an elegant and luxurious affair.

 

Marketing Plan

Brand & Value Proposition

Sonny’s Party Rentals will offer a unique value proposition to its clientele:

• Luxurious party rental supplies
• Excellent customer service
• Quick delivery, set up, and take down services
• Friendly and professional staff

 

Promotions Strategy

The promotions strategy for Sonny’s Party Rentals is as follows:

Social Media Marketing

The company will have several social media accounts and invest in ads on all social media platforms. These accounts will showcase pictures of the products we sell. The company will use targeted marketing to appeal to our target demographics.

SEO Website Marketing

Sonny’s Party Rentals will invest funds into maintaining a strong SEO presence on search engines like Google and Bing. When a person types in “local party rental companies” or “Portland party rental companies,” Sonny’s Party Rentals will appear in the top three choices.

Advertisement

Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. Sonny’s Party Rentals will advertise its products in popular magazines and journals.

Ongoing Customer Communications

Sonny’s Party Rentals will publish a monthly email newsletter to tell customers about promotions, events, and discounts.

 

Pricing

The pricing of Sonny’s Party Rentals will reflect the premium quality of our party rental equipment but still be on par with our competitors’ prices.

 

Operations Plan

Sonny’s Party Rentals will utilize the following operations plan.
Operation Functions:

• Sonny will be the Owner of Sonny’s Party Rentals and will run the general operations of the company. He will spend the next year hiring the following employees to help him run the business:
• An Accountant who will manage all client invoicing, billing, and payables.
• A Marketing Assistant who will run all the marketing and promotions campaigns.
• Several associates who will deliver party equipment as well as set it up and take it down.

 

Milestones:

Sonny’s Party Rentals will have the following milestones completed in the next six months:

• 5/1/202X – Finalize lease agreement for facility space
• 6/1/202X – Office build-out
• 7/1/202X – Hire and train essential staff
• 8/1/202X – Begin marketing campaign
• 9/1/202X – Launch Sonny’s Party Rentals
• 10/1/202X – Reach break even

 

Management Team

Sonny’s Party Rentals is founded by Sonny Monti. Sonny has worked in the event planning industry for several decades. He understands what our customers need to create the perfect party or event. His skills and expertise will help us serve our customers better than the competition, as he will know exactly what to recommend based on the customer’s event and budget.

Sonny also has considerable experience as a senior manager for a major event planning company. Though he has never run his own business, Sonny’s experience as a senior manager has given him an in-depth knowledge of the operations and management sides of running a business. He will also hire several employees to help him run the aspects of the business he is unfamiliar with.

 

Financial Plan

Key Revenue & Costs

The revenue drivers for Sonny’s Party Rentals will come from the fees we charge for renting out our furniture and supplies.

The cost drivers for Sonny’s Party Rentals will include the overhead costs, salaries, cost of supplies, and marketing expenses.

 

Funding Requirements and Use of Funds

Sonny’s Party Rentals is currently seeking $700,000 to launch. The funding will be dedicated to the office build-out, purchase of initial inventory and supplies, working capital, marketing costs, and startup overhead expenses. The breakout of the funding is below:

• Facility design/build: $100,000
• Initial equipment and supplies: $300,000
• Three months of overhead expenses (payroll, rent, utilities): $100,000
• Marketing costs: $100,000
• Working capital: $100,000

 

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Number of monthly customers: 15
• Annual lease: $100,000
• Monthly expenses: $10,000

 

Financial Projections

Income Statement

Balance Sheet

Cash Flow Statement

Party Rental Business Plan FAQs