Rental business is one of the most lucrative businesses in Nigeria. There is always an event going on in some place. Many people into rental business are millionaires. In this post, I will show you steps to start rental business and make lots of money.
Events take place almost every day or during the weekend and most people invite many guests, and some uninvited guests also take part.
Such events include; Child dedication, Birthday party, August meetings, Convocation ceremonies, Award ceremonies, Church programs, Wedding ceremonies, Conferences, and so on.
In most event, there are usually many guests. When these guests arrive, they wouldn’t stand throughout the time the event takes place.
There is a need to provide a place for them to sit, and the organisers of events can go an extra mile in making sure their guests feel comfortable.
To achieve this, they seek for rental services to gain the equipments needed for few hours which the event would last. So, you can start a business of renting these equipments.
Rental Business Equipments
If you are considering starting a rental business in Nigeria, then these are the equipments you can rent out;
1. Tables and Chairs,
2. Canopies,
3. Cars
4. Catering items,
5. Video Camera,
6. Mobile Toilet,
7. Generator,
5. Wedding Gown,
6. Hall or Building,
7. Landed Space.
8. Sound equipments
Starting a rental business is not what you just dive into without adequate preparations. Likewise, to being successful, there are steps to start a rental business that you need to strictly follow.
Below are step by step guide to start a rental business
1. Carry out a Survey
Anywhere you wish to start a rental business carry out a survey to know if the location is good for the business.
Check out the population of the area because the higher the population, the more business opportunity that comes your way.
Also check out if there are businesses likes yours within the vicinity so you will know the amount of people you are competing with. With this you will know how to package your business to look different from all others.
2. Have a business Guide
After you carry out a survey, the next thing is to have a business guide. A business guide is a business plan that organizes your business and helps you achieved certain goals.
The business guide should contain how you will run your daily activities, contains an estimation of the budget required to start the business and how much you intend to earn within a week or in a month. With this plan you can source for a loan from the bank.
3. Form a Budget
A budget summarizes intended expenditures. Draft out a budget to determine the amount need to start up the business and the amount needed to purchase equipments.
The amount depends on the rental service you want to establish and the customers demand.
4. Start on a small scale
As a newcomer into this business you can start on a small scale from your home by renting out to people within your vicinity.
Have a parking space where you can store these equipments at home. With as you make more profit you can expand your business.
5. Getting the equipments
The acquisition of these equipments should be based on the number of customers or persons that will be accommodated in an event.
For instance, during an event the organisers may come to you to rent 100 chairs and 50 tables. There should be more than enough chairs and tables.
Therefore it is necessary to acquire a large quantity of this equipment to meet the market demand. You also need to consider customers preference.
Some people prefer armless chairs, round, square or rectangular tables. So it is best to have a variety of these equipments.
6. Rental fees (Fixing price)
When fixing a price to charge for the rent of your equipments put into consideration the number of tables, chairs demanded, the time this equipment will be used, every other expenditures, overhead cost such as labour, vehicles, fuel, utilities and others. As a starter let your cost be moderate and affordable.
7. Storage Space
It is necessary to have a good storage space that is well accessible. Either you purchase a space or storehouse.
Another way is to acquire it on lease. A place where customers can approach and views the equipment (tables and chairs) you have. Look for a good location especially a more populated area with opportunities.
8. Transportation
This is very important especially when dealing with customers from a far distance and you will have to convey this equipment to their location.
One way to have a means of transport is to acquire a vehicle under a term of contract (lease).
The vehicle will be in your possession but it is not fully yours until you complete the payment. This is a very good way you acquire a means of transport.
9. Business Promotion
This involves advertising your business within your vicinity by telling people about the business you do. So that whenever there is an event they would contact you.
Other ways to advertise your rental business is through social media platform; such as Facebook and WhatsApp, giving out business cards, hand-bill, making radio announcement, and many others.
Final thoughts on steps to start rental business
Establishing a rental business is highly rewarding which can be an alternative channel of income. Within a month you can make a huge amount of profit just renting out a few of these equipments because there is always an event going on somewhere and people will need rental services.