How To Start A Lucrative Party Equipment Rental Business In Nigeria: The Complete Guide
Nigeria is arguably one of the top countries in the world where an entrepreneur can make a lot of money from the party equipment rental business. This is because Nigerians love coming together to mark or celebrate almost every type of significant events that happen in their lives.
Every weekend, numerous events or parties take place in towns, villages, and cities. Somewhere in each locale, activities like weddings, birthdays, naming ceremonies, reunions, holiday parties, corporate events, and funeral ceremonies bring people together. The party zeal/spirit is deeply rooted in many aspects of the local culture and lifestyle in the country, and so, people who run a party equipment rental business in the country have a steady recurring income stream.
To take advantage of this business opportunity, here’s how to start a party equipment rental business in Nigeria.
What Is A Party And Event Equipment Rental Business About?
The aim of event planners, professional or not, is to organize a memorable party. For them, a party must cater to guests needs, and make the occasion special. They also know that a successful party depends on how quickly and efficiently they secure the right/necessary equipment.
The event planner can either choose to rent or purchase the equipment they need. Since it’s a waste of money to buy equipment they may not use any time soon, the better option is mostly always to rent. And that’s where the party equipment rental business comes in.
Party equipment rental businesses earn profits from providing party equipment for various occasions. As a result, residual income can be generated from renting out equipment like chairs, tables, speakers, and lighting devices.
Once a party equipment rental business starts to grow, it can further diversify into renting out different types of the same equipment. For instance, a chair rental business can add steel, wood or glass-like chairs to its plastic chair collection.
How It Works
Party equipment rentals are capital intensive but profitable ventures. While equipment like chairs, catering utensils, and tents tend to be bulk purchases, complex items like lighting require more funds.
To minimize cost, some new business owners store their equipment at home. One or two rooms in a house are cleared out for this purpose. As the business continues to grow and demand increases, renting a larger office/storage room becomes necessary and feasible.
Most businesses within this field start out by buying a set of equipment which they rent out on weekends. Also, the rental business fixes specific prices on each item they lease out. A chair rental business, for instance, might start up with 100 plastic chairs and 50 plastics tables. As each plastic chair costs N1000 to N1300 in the markets, 100 chairs would be no less than N100, 000. Purchasing 50 tables would draw the figures close to N200,000.
After buying the chairs, rental businesses would then lease them out per hour or day. The rental price for one chair is about N100 while the table can be as much N150. And so, one weekend could bring in a revenue of N15,000 to N20,000. If the business continues to grow, more equipment are purchased, and is well managed, the business could go on to generate anywhere from 100,000 Naira to over 1,000,000 Naia weekly.
Business Opportunities In the Party And Event Equipment Rental Business Around The World
Almost all parties, events, and ceremonies demand the services of the party equipment rental business. Some of the lucrative opportunities of this venture in Nigeria and other parts of the world are;
1). Frame Tents And Canopy Tents Rental Business:
Tents provide shelter for guests during outdoor activities like parties and other events. Setting up tents is less expensive than leasing a hall. More so, it is a stylish way to provide shelter for guests from the rain or Sun.
The market for the frame tents and canopy tents business cuts across all works of life. Meaning that there is no outdoor event that cannot benefit from the shelter a tent provides. A tent rental business can provide one or all types of tents like canopies, pop-ups, and frame tents. Canopies are held up with aluminium poles at four corners while frame tents are larger and usually pinned to the ground. Both have polyester tops covering which can be folded and stored after each use.
This is one of the most demanded businesses within the party equipment rental industry. On the small-scale side of things, 5-10 tents are enough to get started. The business thrives because people will always want to hold outdoor events.
2). Chairs And Tables Rental Business:
In organizing seating arrangements for guests, the number of chairs and tables have to be sufficient. These items are a source of income for chair rentals each week. There are several types and shapes of chairs and tables for different types of occasions. Renters buy in bulk and then rent out to party planners and hosts at a fixed price per item and per hour/day.
3). Audio And Visual Equipment Rentals:
The sound and lighting equipment rental businesses are very lucrative ventures. All that’s required is buying and renting out high-quality, durable devices. Some of the equipment includes speakers, microphones, stage lightings, and spotlights.
In this business, knowledge of how to install lighting and sound devices is essential. Some technical training before exploiting this business opportunity is beneficial.
Other types of audio and visual equipment for special events are fog machines, screens, projectors, and mixers.
4). Games And Sports Equipment Rental Business:
Outdoor events that involve sports and games create a profitable opportunity for prospective entrepreneurs. Gaming and sports equipment include slides, electronic basketball machines, wheels, table tennis equipment, and much more.
5). Decor Rental business:
Professional party planners and hosts love showcasing well decorated and appealing venues to guests. To achieve that, they spend money on renting décor equipment. That is why this business is one of the most lucrative and competitive ventures in the industry.
Décor rental involves leasing out items that venue decorators need. These items include table centrepieces, backdrop fabrics, special effect lightings, stage décor items, and chair accessories.
6). Catering Equipment Rentals:
Catering equipment rental business supplies all kinds of cooking and dining equipment for parties and events. In Nigeria, caterers combine cooking services with this business opportunity to make extra money. A set of catering equipment comes with a fixed or negotiable price. Two dozens of eating spoons might go for N100 to N150 while renting two large cooking spoons is about N400.
Parties and food are mutually inclusive. So without a doubt, buying catering equipment and renting them out is a productive business.
How To Start A Party Equipment Rental Business In Nigeria; A Step By Step Guide
1). Determine What Type Of Party Equipment Rental Business You Want To Start:
The first step to starting a party equipment rental business is to determine what aspect you want to focus on. This is largely determined by the customer base you intend to target, where they’re located, and what they need.
Choosing the right type of business to venture into based on the market will determine how successful or not you’ll become.
2). Register Your Business:
The next step is to register your party equipment rental business with the CAC. This is essential to reassure your customers that you’re a legally registered business that will take their requests seriously and deliver the quality of service they want.
3). Purchase The Right Equipment:
Depending on the type of party equipment rental business you’re into, you’ll need to get the right corresponding equipment that is highly demanded in the market. The equipment you buy must be durable, attractive, and up to the task.
You can also charge customers a replacement fee for any equipment damaged or misplaced while in their care.
4) Storage And Maintenance:
When you’re starting out, you can first use one or two empty rooms in your house to store some of your equipment. You could also use a space in your compound if you still can’t afford to rent a place for your business.
It is also key to know that several large rental companies started their businesses from the comfort of their homes. But if your funds are sufficient enough to rent a location, choose a commercial area. A building close to busy roads will advertise your business and bring in more clients.
Lastly, regularly maintaining your equipment preserves its durability. Clean and package each item carefully before storage.
5). Transportation Arrangements:
At the start of this business, you would have to consider how to move equipment from place to place with minimum stress. A transport vehicle will help you move heavy equipment to short or long distance venues with ease. Ideally, the best vehicles for transporting equipment are pick-up trucks or vans. You can either buy or make arrangements with a truck/van owner.
And if you choose to buy a vehicle, brand it with your business name and contact details. It serves as a form of advertisement for the business. In cases where driving a truck or van is a challenge, hire a skilled driver that would help haul the equipment.
Do note that you can charge customers a separate fee for transportation or integrate it into rental costs.
6). Employ Assistants:
Hiring one or two persons to assist you in loading the equipment into the vehicle and off-loading them at venues will save you time and efforts. Initially, these employees can work part-time and be paid by the hour or day.
Be sure to negotiate a fair price for their wages and give them some training on how to properly handle the equipment.
7). Source Clients:
With your equipment and transportation vehicle in place, the next thing to do is to start renting them out. Getting customers as quickly as you can is a priority. Be on the lookout for opportunities to market your business. If anyone around is planning a party, reach out and offer your services.
Build a relationship with suppliers, venue owners, decorators, and event organizers. Make cards and share them with friends, colleagues, and family members.
8). Promotion, Discounts, and Offers:
Growth in this business depends on the size of your client base. To make profits, you need incoming customers weekly. This requires using all the available means to promote your business. Social media, print media and business cards are some of the tools that would raise awareness and bring more customers your way.
Discounts and special offers on equipment rentals are other ways of promoting your business. They would give you an edge of over the competition and also help promote your business through referrals.
As the demand for your services grows, consider reinvesting. Purchase more equipment to add to your inventory. Additionally, acquiring variations of your equipment will move your business to the next level because of the diversity and wide option pool it would provide for your clients.
For instance, if you started out by renting plastic chairs and tables, adding folding lawn or Chiavari chairs will increase propspects desires to rent from your business instead of the competition.
Challenges Of The Party And Event Equipment Rental Business In Nigeria
- Beginners in this industry put in lots of effort just to get their first customers.
- Start-up costs of equipment like sound systems and lighting equipment are capital intensive.
- Transportation arrangements become challenging without self-owned trucks or vans.
The party equipment rental business in Nigeria is a competitive enterprise with high turnovers. The ever-increasing number of parties organized every week continues to boost the economy by providing profitable business opportunities for full and part-time business people. So, anyone interested in starting up a lucrative venture that requires little or no experience can tap into this million-dollar industry.
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