Do you know that companies such as MTI Events are part of the more than 142,000 businesses driving the party planning industry, which generated about $5 billion in revenue as of March 2019?
Because of the growing industry and its 2.9% annual growth rate, other related businesses are thriving as well. The typical companies that form relationships with planners include caterers, photographers, and florists. If you’re thinking of starting a business and these options aren’t too attractive for you, why not consider starting a light and sound business rental?
Here are a few things to note when starting this business:
An Overview of the Light and Sound Rental
Light and sound rental falls under the motion picture and theatrical equipment rental industry. While there are still few businesses in America, it already generated $2 billion in revenue as of September 2019. However, since the sector covers not only events but also big movies and other theatrical projects, these might account for the substantial income of the businesses.
Apart from light and sound equipment, rentals also include platforms and backdrops, which are found during big concerts and other shows.
Like any business, you need to start with writing a business plan. Experts advise that this need not be complicated. When you’ve begun your operation, you can always go back to your project and consider some revisions if they are warranted. Here are more things to note when starting light and sound rental:
1. Your competition and the market.
These two things should be a significant discussion in your business plan. Knowing your competitors helps determine key moves for your business, like what your price point should be or what unique offering you can make. If you find that the market might be too saturated with the same business as yours, consider finding a new location.
2. Options for starting.
There is always the temptation to start from scratch and get all the new gear. Be warned that this approach will require a bottomless pocket. Also, you will have to deal with nurturing your idea, which includes dealing with issues associated with start-up initiatives. Buying an existing business might be a better and cost-effective strategy. The supplies, while not new, are already there and perhaps correctly maintained for the rigors of multiple weddings, birthday parties, and concerts in a month.
If you choose the option to start from scratch, you will then need to buy equipment. Manage your cash flow by not acquiring inventory that will stay on the shelf for long periods. Try outsourcing, for example, a special light requested by a client. You will need to be creative with your pricing so that you can “pass on” the outsourced charge to your client without looking too expensive. Check online stores for pre-owned items that still work well, like speakers or smoke machines.
4. Marketing and partnership.
Don’t limit your friendship or relationship with just the party planner. Reach out to the other vendors and exchange business cards. Caterers and florists operate in different circles. They might be able to recommend prospects for you. Online marketing is already inevitable for any business this day. Come up with a robust online presence that will attract visitors to your website.
Finally, your business plan must include the discussion on sound financials, including cash flow and sales projections. Make sure to comply with the legal requirement for running your business.