Starting a Business?
Adding to an existing Business?
Business Center
You are here because you have a business or planning to start a business. We want to offer tips and ideas for this new venture. We cannot guarantee your success and every business is completely different but hope to point you in the right direction from our experience.
The information on this page is focused for current or future business owners. If you are an event planner or facility owner/ manager you may also find the information useful but you might be more interested in the actual products and frequently asked questions.
Benefits of Starting a Business
- Independence and Flexibility: Owning your own business allows you to be your own boss. You have the flexibility to make decisions that align with your vision and values, setting your own hours and work environment.
- Financial Potential: While starting a business involves risks, it also offers the potential for significant financial rewards. Successful entrepreneurs can earn more than they would in traditional employment, with the possibility of building wealth.
- Pursuing Your Passion: Starting a business provides the opportunity to turn your passion or hobby into a career. Doing what you love can lead to greater job satisfaction and fulfillment.
- Job Creation: As a business owner, you have the opportunity to create jobs and contribute to your community's economy. This can lead to a positive impact on local employment and economic growth.
- Skill Development: Running a business offers a unique opportunity to develop a wide range of skills, from marketing and finance to customer service and leadership. This experience can be invaluable for your personal and professional growth.
- Building an Asset: Your business can become a valuable asset over time. With the right strategies, it can grow in value, allowing you to potentially sell it for a profit or pass it down to future generations.
- Tax Benefits: Entrepreneurs can take advantage of various tax deductions and credits, which can lower their overall tax burden. Business expenses, such as office supplies, travel, and utilities, may be deductible.
- Innovation and Creativity: Starting a business encourages innovation as you find new solutions to problems or create unique products and services. This creative process can be fulfilling and stimulating.
- Networking Opportunities: Running a business often leads to valuable networking opportunities. Building relationships with other entrepreneurs, customers, and industry professionals can lead to collaborations and partnerships that enhance your business.
- Community Impact: Small businesses often contribute to their local communities through charitable efforts, sponsorships, and community events. This involvement can foster goodwill and strengthen community ties.
Strategic Considerations for Inventory Selection
We appreciate your understanding that selecting inventory for your rental business represents a significant investment. It is essential to assess both the financial risks involved and the potential return on that investment. While lower-cost items, such as our tub games or jumbo stacker, require comparatively less financial commitment than a miniature golf set, the return on investment can be surprisingly similar.
Our goal is to ensure that each item you rent out effectively pays for itself within approximately ten rentals. We will discuss pricing strategies shortly to illustrate how this model operates.
If you currently own an inflatable business, or specialize in party rentals or gaming services, integrating these games and mini golf sets into your offerings can enhance your product lineup. For those venturing into this industry for the first time, we encourage you to ask any questions you may have. When you feel prepared, we invite you to take the next steps confidently.
Pricing Strategies for Your Rental Business
With years of experience in the rental industry, we've gained valuable insights into customer preferences and pricing dynamics. Understanding your customer base and their willingness to pay is crucial to your success. Striking the right balance in pricing is essential; you want to avoid pricing yourself too high or too low. Our primary goal is to ensure profitability.
We recommend starting with a rental price that's approximately 10%-15% of the total purchase price of your items. For instance, a complete mini golf set costing around $4,500 could be priced between $450 and $675 per event. Similarly, a tub game priced at $350 can be rented for $35 to $50 per event.
Keep in mind that these figures are estimates and can vary significantly based on your location and target market. In metropolitan areas or when catering to high-end clients, you may have the opportunity to charge higher rates, potentially doubling these amounts as demand and client expectations increase.
By carefully considering your pricing strategy, you can maximize your revenue while offering value to your customers.
Considerations for Delivery and Setup
When renting large items like mini golf sets or inflatables, it’s essential to factor in the costs and logistics of delivery, setup, and teardown. These processes require significant time and resources, and while some items may be suitable for customer pick-up, larger rentals will typically necessitate professional delivery.
Our initial strategy included offering free delivery and setup to attract customers, but we quickly discovered that rising fuel and vehicle costs required us to implement a fee of $1.00 per loaded mile just to cover fuel expenses. As our business expanded and we began hiring additional labor, it became necessary to adjust this rate to between $2 and $3 per mile. Additionally, we often charge for hourly labor for delivery and setup. It's important to note that these rates can vary based on your client base and the geographical area you serve.
If you choose to allow customers to pick up items, be mindful of the potential liabilities associated with them transporting large equipment. Furthermore, keep in mind that customers may not treat your property with the same level of care and attention that your trained staff would provide. Prioritizing safe and professional delivery can help preserve the condition of your rental items and enhance customer satisfaction.
Importance of Insurance
In today’s world, having comprehensive insurance coverage is essential for every aspect of your business. This includes ensuring that all your vehicles and property are adequately protected. Equally important is obtaining liability insurance. Should an injury occur on or around your rental equipment, you could face a lawsuit, even if a customer has signed a waiver of liability. While such incidents may be rare, they can happen.
Liability insurance serves as a critical safeguard, providing you with legal support to address claims made against you. It helps to cover the costs associated with defending against lawsuits, protecting your assets and your peace of mind.
It’s crucial, however, to prioritize safety in all your operations. Always ensure that your equipment is set up correctly and safely for use. By taking these precautions, you not only protect your business but also promote a safe and enjoyable experience for your customers.
