Whether you’re an experienced investor or a first-time entrepreneur, finding the perfect niche will be key to determining your future success. With your own business, you will have the freedom to work towards your goals without compromises. You can build a legacy and provide meaningful services to the public at the same time.
Frame tent rental can provide the perfect opportunity where you can engage with both the business to business (B2B) and business to consumer (B2C) market segments. Tents are widely used for events of all types, ranging from private parties and weddings right up to trade shows and large corporate events.
If you want to explore this industry for a possible business venture, you’ll need to understand the basics first.
From identifying your market to finding a supplier, here’s what you’ll need to know before you begin.
Understanding the Market
The first thing to understand about the commercial frame tents rental industry is that it is dynamic. You will deal with clients that range significantly in terms of their needs and goals. This can make addressing the market a challenge. You’ll need to build up a tent inventory based on the type of client that you expect to engage with.
In most locations, your market will fall under a few key categories.
- Private individuals looking for DIY tent hire for birthday parties, family reunions, weddings, etc.
- Private individuals looking for tent hire that includes setup and teardown, usually for larger events.
- Businesses looking for frame tents to be used for corporate events, trade shows, retail events, etc.
In addition to the different types of customers, you will also find that the rental business is seasonal and time-sensitive.
- Most events are held during the spring, summer, and autumn when the weather is expected to be clear and comfortable.
- Private events are usually held in the afternoons and evenings, likely on the weekends.
- Corporate events could be held on any day of the week and may run all day, from morning until evening.
Another unique aspect of the frame tent rental business is the distance that is covered by service providers. To put it into perspective, consider a landscaping company. They will typically only serve a small area near their base of operation. Because corporate and private events are held at varied locations, you could find that a local customer may request a hiring service for a location that is up to an hour away from your base of operation.
While the dynamic nature of the market is challenging in terms of time management and logistics, there are also some advantages compared to other business types. For example, because most of your business will be conducted around weekends and holidays, you could have extra time to focus on other ventures, part-time employment, or family commitments. As long as you are in a position to quickly respond to customer inquiries and bookings, you will find that the flexibility is much higher than in other industries.
Understanding the Costs in Frame Tents Rental
When thinking about rental contracts you might assume that there are low overheads and high margins in the tent rental industry. After all, if your business peaks on weekends and holidays, you would think that overheads are reduced throughout the downtime.
This is true to a degree, but there are myriad factors that you will need to keep in mind.
- Tents will need to be stored in a secure facility that can be easily accessed. You’ll need to consider your overheads for a business location rental or storage facility contract.
- If you will serve the market segment that expects delivery, setup, and teardown, you will need to factor in vehicle and fuel costs, as well as any staffing needs.
- Wages and insurance (workers comp, liability, etc.) for your employees could be relatively high, especially as you will need to retain a skeleton staff, even during the slow days of the week.
- A commercial insurance policy will be needed to protect your company from loss and liability.
As you build a reputation and a customer base, your income will offset the overheads. With high-quality commercial frame tents, you will be able to invest in long-lasting inventory that provides a long return on investment.
Building up an Inventory of Frame Tent for Weddings and other Events
Of course, one of the most significant aspects of starting a rental business is buying the frame tents that you will offer.
Anchor Industries is America’s leading frame tent supplier, with more than a century of operating experience. We can design custom frame tents for your unique needs, allowing you to position yourself in any addressable market that you have identified.
It’s OK to start small as you build your business, but there are some things that you should consider as you stock up.
- You will need more than one solution to avoid having to turn customers away. It is recommended to stock smaller simple frame tents for private parties, larger tents for weddings and sports events, etc., and even bigger tents for commercial event rental.
- Look for modular solutions so that you can customize a hiring contract for any customer. Walls, roofing, doors, and even marquee walkways can all be mixed and matched so that you can maximize the use you get from frame structures.
- Insist on a manufacturer that has vast experience and a history of excellence. Anchor Industries is your best option for hiring durable and versatile tents that allow for bigger returns.
Starting a business is exciting, but you should never rush into any venture without exploring your options. Take a look at the frame tents available at Anchor Industries and talk to us if you’re ready to start planning a versatile inventory that will help you reach your business goals.