How to start a lucrative rental business in Nigeria
No doubt, Nigeria is one among the top countries of the world where a serious entrepreneur can make huge amount of money from party equipment rental business. Do you know why? Nigerians so much love coming together to have fun and celebrate one event or the other.
Every now and then people come together for marriage/wedding celebration, school graduation, birthdays; meetings etc. One can easily take advantage of this opportunity and here is how you can start up a party equipment rental business that can fetch you huge income in Nigeria.
The goal of every event planner is to make sure they cater for the needs of their guest and this they know depends on how quickly they are able to get the right equipment needed for the event.
Here, the event planner can either choose to rent or purchase the equipment needed. But out of 10 event planners, just 2 may choose to purchase the equipment while the remaining 8 will prefer to rent the equipment they need because they may not be making use of it all the time. And this is where the party equipment rental business comes in to play and if only you can read on, you will get to see the need to delve into this lucrative business. You can make a lot of money from renting equipment like chairs, speakers, tables, canopies etc.
How Does it Work?
Party equipment rentals business can be expensive to start but profitable in the long run. To reduce cost, you need to prepare one or two rooms to store your equipment and as the business booms you can get a larger storage room.
Also, the rental business fixes specific prices on each item they rent out. You can start with a 100 chairs, 50 tables. Each chair is around the price of #1200 to #1500 in the market. So, 100 chairs would cost around #120,000 to #150,000 and getting the table would sum it up to around #200,000 plus.
Once you have gotten these for a start, you can start renting it out on hourly or daily basis. The rental price for a chair is #100 while for each table is #150. Now, if for example, you rented out 50 chairs and maybe 10 tables during the weekend, you find out you would have made #6500 to #10, 000. As you continue to grow and acquire more equipment, you would find out you’d be making close to #150,000 weekly. Isn’t that amazing?
You would agree with me that virtually all parties, events and ceremonies need the services of party rentals. Some of these services could be;
- Canopy and tents
- Chairs and tables
- Audio and visual equipment
- Games and sports equipment
- Decoration equipment
- Catering equipment
How To Start
- Make up your mind on the party equipment rental business to start with: This could be determined by the kind of customers you want to target and their location and what they need. Once you have this information, you can then decide on the one to start with.
- Get your business registered with CAC. This is very important in order to give your customers the assurance that your business is legally registered and this will make them to take you serious, knowing very well that you will provide quality service.
- Get the right equipment: after you must have concluded on the kind of party rental business to start with, you need to go get the right equipment for it. The equipment you are purchasing should be attractive, strong, and durable and can serve the right purpose.
- Once you have started, you need to have a room for storing your equipment, you don’t have to rent a big compound at first, just spare a moderate room and make sure the room is safe and secure. Also, you need to constantly maintain your equipment for them to serve a longer period. After use, clean them very well and pack them properly in the storage room.
- You also need to consider the movement of your rental equipment from one location to another. Pick-up trucks or vans can serve and you need to make arrangement for this. If you are renting a van, you can choose to add the cost to the price of renting out the equipment. If you are financially okay to buy a van, brand it with your business name and if you find driving to be a tedious task, hire a driver.
- The rental business work is not what can be handled by just one person. You need to employ some persons who can assist you in the work. As you employ few hands to join, properly educate them on how to handle the equipment to avoid damage.
- Be on the lookout for potential clients. People will not know that you have started a party rental business until you talk to them. Build a strong, cordial relationship with party planners, managers and the likes. Promote yourself by printing out your business card and sharing it with potential clients. Giving out discounts and special offers on equipment is another medium to get yourself known.
- As you progress in the party rental business, you need to reinvest back into the business so as to keep it going and booming. Get more equipment and replace damaged ones
Having seen how to start a party rental business, you need to be focus on it, maintain good relationship with your clients, treat your employees well, secure your equipment and keep the business going.
Please do leave a comment as to what you think about the party equipment rental business.