Starting a Tent Rental Company

Many potential customers contact Celina Tent, Inc. to purchase tents with the hope of starting a rental company. Usually the inquiry sounds something like this:

“We end up renting tents two or three times every year…We figure that if we owned a tent or two, we could save that money AND we could rent them out and have another source of income….

OR

“I am looking for a way to make money on the side of my full time job. A tent rental appears to be something I could do in the evenings and on weekends that has the potential to become a full time business….”

So what’s involved with starting your own rental service?
(Usually that’s the second question…the first question is usually
“How much money can I make?!”)
Both questions are very subjective, but are fun to explore.

When Celina Tent rented out tents we charged $200.00* per event for a 20’ x 20’ pole tent. A new 20’ x 20’ tent can cost between $1,065.00 and $2,200.00 depending on the model, accessories, and hardware strength.

Let’s say that you were to buy a Classic 14oz. 20’x20’ pole tent with ratchets, galvanized poles, 42” stakes, anti-sink wood plates, and economy sidewalls with bags (our most popular choice). This tent costs $1,559.04 (before any rental discounts are applied by Celina Tent, Inc.) which would mean that it would take 8 rentals before the tent and shipping costs are paid for.

In most areas, especially metropolitan, this could be done in two months. With good maintenance, a tent can last up to ten years or longer which could equate to tens of thousands of dollars over the life of the tent. The real cost and effort is marketing and advertising to let people know that you have tents for rent! If you have even basic computer skills, the Internet is a great, free place to tell people about your service.

*Celina Tent is located in a rural West Central Ohio where our prices reflected our market. Many markets will be able to withstand much higher rental rates.

So what’s involved with starting your own rental service?
The key to any successful business venture is good management. Here are some general tips:

• Give a detailed description of the business and its goals
• Discuss the ownership of the business and the legal structure
• Write down the advantages you and your business have over your competitors

Marketing

• Write an accurate description of the products / services offered
• Identify the customer demand for your product / service
• Identify your market, its size and locations
• Explain how your product / service will be advertised and marketed
• Explain the pricing strategy

Financial Management

• Explain your source and the amount of initial equity capital (Minimal in the case of tents!)
• Develop a monthly operating budget for the first year
• Develop an expected return on investment, or ROI, and monthly cash flow for the first year
• Work up projected income statements and balance sheets for a two-year period
• Discuss your break-even point
• Explain your personal balance sheet and method of compensation
• Discuss who will maintain your accounting records and how they will be kept
• Provide “what if” statements that address alternative approaches to any problem that may develop

Operations

• Explain how the business will be managed on a day-to-day basis
• Discuss hiring and personnel procedures
• Discuss insurance, lease or rent agreements, and issues pertinent to your business
• Account for delivery of rental services

Concluding Statement

Summarize your business goals and objectives and express your commitment to the success of your business. If you have a reasonable plan to roll profits back into inventory; If you are honest and provide “customer-first” service; If you are shrewd enough to use caution in financial matters; If you are patient enough to grow slow, but secure – Than you should look into starting your own rental company.

Consulting

Celina Tent, Inc. is pleased to offer our no cost, no obligation consulting service to customers who are interested in purchasing tents and rental accessories. As a leading party tent manufacturer and our experience as former full service rental company give us an edge over the competition because we have been there – We have seen what happens to weddings when a thunderstorm strikes; we have had phone calls from people who purchased cheap tents from other companies and are bewildered by the poor craftsmanship, complicated parts, and the absence of customer service; and we have, through our own lengthy experience, found out tips and tricks for installing tents and for keeping in tents in good condition longer.
Let us help you, both in choosing the perfect tent for your needs, and with tips so that your event is successful and safe.

Disclaimer

Celina Tent, Inc. provides this consulting service to customers interested in purchasing tents and rental accessories based on the honor system. Please do not abuse our generosity. Also, we simply cannot accept liability for any advice that we give, either spoken, written, or implied. Our advice does not constitute a binding contract and the customer must assume final responsibility for their own actions.