How to Start a Rental Service Business in Nigeria
You cannot buy or have everything you need in this life; especially tents; chairs; tables; DJ equipment; cooking utensils and materials; vans, etc. There are certain things you just have to hire. Renting service businesses are labor-intensive. While you need money to start, you need labor or staff and you would still have to pay them every other month. Most times, rented equipment is delivered in very far areas and these workers would have to follow you to the venue of the event. For an event to take place, hiring of equipment must be taken care of and these equipment must be in good shape and working conditions.
Rental business is not limited to chairs, tables and canopy. There are many kinds of items you can start renting along side your rental business and begin to make cool money. Do you know that despite the hard times; he economic situation of a country; people still find ways to host occasions? Events take place almost every weekends. Be it birthday party, graduation, award ceremony, engagement to wedding ceremonies, meetings, conferences, family reunions among others. Doing a rental business is scarcely a bad idea as people organize events more often than you think. The assemble of people for different reasons or purpose is known as an occasion or party. It is called different things in other parts of the world. Rental business is a business entrepreneurs should look into or be interested in.
Hiring of tables, chairs and canopies are important aspects of a party or social gathering. Event planners have to arrange for adequate tables and chairs to accommodate the number of guests invited to the occasion. Since purchasing tables and chairs is costly, it is not wise for the organizers to purchase those numbers of chairs . If you are an aspiring entrepreneur, you can start a table and chair rental business and offer your services to local event planners. Starting a party rental business may be for you if you want low overhead costs. The best thing about the party rental business is that it is a part-time kind of job while still in a full-time employment and you can also get your family involved in the business. Moreover, you can offer other services like supplying of refreshments food, etc. Apart from tables and chairs, there are other items you can rent out to event organizers. These items include: catering equipment, video camera, mobile toilet, generator, wedding gown, etc.
Rental Businesses You Should Consider.
Rental business in Nigeria is a reliable way of making passive income. Though you are expected to maintain the rental equipment from time to time, you earn from these equipment over a long period of time. According to the Business Nigeria Creating Wealth, below are some of the rental businesses an entrepreneur in Nigeria should consider:
Catering Equipment::
Equipment like gas burners, cooking pots, spoons, coolers, serving cups and plates are materials that can be invested on and then rented out to caterers who do not have this equipment. This is a good way to make money from your backyard if you have enough space to shelter them. The good thing about catering equipment is that they hardly need expensive maintenance but they are easily damaged if care is not taken.
Event and Occasion Supplies::
These include chairs, tables, backdrops, red carpets, decorations, table and chair covers etc. These are good event materials that can be considered for business as there is always a high demand for them from time to time. Having a strategic outlet where people can easily notice and patronize you is a good way to make money from a business like this. Offering a means for delivery is another way to attract customers.
Book Rentals and Libraries:
Opening a private library where people can register and read good books at their leisure time is another business option to consider. There could also be an opportunity for renting and buying books depending on your business plan and how you choose to invest.
Agricultural Equipment:
For people who are familiar with the agriculture sector and who have enough capital to invest, leasing and renting of agricultural equipment is another business that can be considered. Such equipment includes tractors, bulldozers, caterpillars etc. This type of business should best be located in areas that are close to commercial farmers so that the business can thrive.
Vehicle Rentals or Lease:
For aspiring business owners who can afford to buy vehicles for lease, this is a viable business option in developing countries like Nigeria. People buy cars on lease and pay on instalment after using them for business. Also, hiring of cars for events such as weddings, burials, etc. is another way to make money.
Musical Instruments:
There are many expensive musical instruments that small business owners and churches cannot afford. Renting is always a readily available option. This makes buying and renting out of musical instruments a good business that can be done to make money.
Sport Equipment:
This is a good business option for entrepreneurs in related field. Bicycles, hover boards, basketballs and other sport accessories can be rented for business.
Benefits of Starting a Rental Business
There are many benefits of opening and maintaining a rental business; chief among them are as follows:
* Passive Income: you earn money continuously overtime in the rental business.
* Rental business gives you time for other things.
* It does not require a lot of money.
* Rental business is flexible. You can start small and grow with the business.
* Rental business is easy to start and maintain.
* It is a low risk business.
Research as One of the Major Steps to Starting a Rental Business in Nigeria.
No one expects you to start any business in a vacuum. Just like every other business, rental business requires you to take guided, calculated and wise steps. This is because a particular business might not suit you or the environment you plan on starting the business. According to ClickMagick, below are the steps you must pursue to achieve your rental goals:
Research:
Investigate whether a party rental business is suitable for the area in which you live and intend to operate your business. Things to consider when doing your research include demographics, other party rental businesses in the area, the specific location in which you intend to open your business and any licensing requirements.
Prepare a Business Plan
The business plan helps you to properly shape your business. If you cannot prepare a business plan, get an expert in that field to prepare it for you as it will guide you on all areas of your business. It will also help you if you want to secure a loan as the bank or lender will need it to evaluate your business.
Start-Up Budget:
The start-up budget to establish a party rental business will depend upon the type of rental services you are offering. Raise the necessary capital and purchase or lease your equipment. Base your purchase decisions on your market analysis and how much demand you think there will be for your services. Many people start party businesses out of the home and may simply rent equipment. However, having an established location out of the house can also be beneficial because it provides a location for families to have a birthday celebration, hence you can partner with an established event center.
Purchase:
Select a wholesale table and chair supplier and purchase a supply of chairs and tables to fit the target market you want to reach. Decide whether you want to purchase round, square or rectangular tables and whether you want the chairs with padding or not. Start with enough tables and chairs to seat 300 guests. It may also be beneficial to buy at least one big van, if you can afford it. This is if you will be providing tables and chairs or inflatables. Meet commercial laundries if you anticipate having to wash high volumes of tablecloths and napkins.
Pricing:
Decide how much you plan to charge for table and chair rentals and whether or not you’ll set minimum and maximum quantities for rentals. Take into account every of your cost when figuring out the rates you will charge. Overhead includes utilities, labor costs, rents, supplies, vehicles, fuel and insurance. Assess rental fees by the number of chairs and tables rented and the number of hours an individual or group reserves them. It is also important for you to compare notes with other competitors around you.
Location:
You can purchase or lease garage space or a store-front to hold the tables and chairs you purchase. Set up your location so that potential customers can visit your space and take a look at the types of chairs and tables they can rent from you.
Distribution:
You have to determine how to move the goods and services from one place to another. Plane to purchase a truck at lease fairly used to start with in case demand comes from a long distance. You would also need your workers to follow you.
Marketing:
Network with other business professionals in the community and also take out advertisements in the newspaper or other publications that may be read by clients Distribute your business cards to other business owners, friends and other acquaintances. Also market your business in areas where children are likely to be found. Create signs to put up in parks and fliers to distribute.
Advertise Your Business:
Advertising provides basic information of your business; it increases sales as potential customers get to know your product and services. Advertising both offline and online bring the needed traffic to your business. It helps to inform customers of your offer; it changes people’s perception of your business and makes you stand out from your competitor. Though expensive. there are others ways of advertising like; distributing of hand-bill, placing of banner in a strategic area for people to see, radio announcement. etc
Conclusion
Making money in Nigeria is not the exclusive right of the privileged or nouveau riche. With the right business, you can just change your life and the lives of everyone around you forever. The rental business is a business that allows you monitor the inflow and outflow of your business effectively without you fearing that your workers might be stealing from you. You can do other things while running the business. You can even allow your family members or friends get involved in the business without fearing for the worst. Sometimes, it can be difficult to do certain businesses; especially when they require able hands. But rental business allows you the flexibility to maintain it while you take care of other vested interests. Compared to some other businesses, rental business accommodates mistakes and creates an enabling environment to learn on the business without damages. To help ease your financial transactional activities, you will need a bank account from a bank that allows you remain in charge. As a rental service provider, you will need to do your business without much stress.
Well, the Mint Digital Bank, for instance, does not just offer 15% interests on your savings or charge you little or no charges for transactions; they also allow you do banking at the snap of your fingers and at the comfort of your home. Hardly there are banks in Nigeria that offer such ease to banking. The union between rental business and Mint Digital Bank is a marriage made in heaven. Every business comes with its signature risks. Hence, if you must do well in your rental business, you must ensure that you are properly guided on “the dos” and “the don’ts” of the business you intend to venture into. Knowing the nitty-gritty your choice of business is as important as adhering to personal hygiene principles. Doing business can be hard sometimes but rental business is unique because it is far easier to start and maintain. Rental business is a gift to some families in Nigeria that keeps giving.