Tent hire business plan for starting your business

So you are planning to start a tent rental? Congratulations! Keep reading this tent rental business plan sample and feasibility report for free.

The best thing of tent rental is that your presence may not be required if you have a skilled team who can handle the business. A huge number of events like parties, wedding ceremonies, and social events are hosted during weekends. If you have no problem with working at weekends, you can easily start a tent rental business. You need some soft skills to run a tent rental business smoothly.

If you are wondering how to start a tent hire business, don’t worry. The process is relatively simple, especially if you don’t have any complimentary service.

Executive Summary

Tent hire business

Tent rentals are known to be a very dynamic business. They often operate without any storefront and provide services at their customer’s place. This way, tent hire businesses have huge reach to the market as compared to other businesses. It also saves the cost of having a costly and lavish commercial space.

Starting a tent rental business usually involves hosting outdoor events like parties, weddings, church benefits, family reunions, fund-raisers, and other outdoor events. If you are wondering how to start a tent hire firm, the process is very simple. It is also a very vibrant and large industry in the US and other countries in the world.

Management of tent rental firm

If you ask how to start a tent hire business, it does not take huge capital like a banquet hall rental. Hence, the management requires you to acquire or build specific tents in different sizes. They can easily be assembled and dismantled in a short time. You should also have a secured space or warehouse facility to keep a truck so you can easily carry them to and fro venues. You can also rent out a truck or add it as a premium service for customers who can rent the tents.

Customers of tent rental service

Your customers are basically individuals and corporate professionals who hire a tent rentals for different occasions like weddings, birthdays, celebrations, corporate events and even more. This way, you can select your niche before marketing for tent rental firms. You may want to offer professional and standard event planning at state, local, national, or even global level.

Business Target

Your target might be renting tents and providing the best and reliable event planning solutions to help businesses, individuals, as well as non-profit companies when it comes to organize all the events.

Tent Rental Business Plan - 3 Years Profit Forecast

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Company Summary

3.1 Company Owner

In this section of tent hire business plan, you need to introduce who will be the owner of the company as well as their experience in event planning business. Have you ever organized an event for your family or even your client?

3.2 Why the Tent Rental Business is being started

Here, you need to explain your passion and inspiration behind staring a tent rental business. Have you been planning to start it for a long time? Have you fully explored the overall expectations and needs of your target customers? Do you feel that you can come up with a compelling solution that makes you stand out?

The business plan for tent Rental Company can be very simple as it requires less capital and investment in comparison to other businesses, which need sufficient resources.

How the tent rental business will be started?

In order to explain this part, you need to have done proper homework regarding the tent hire business. At least for the first year itself, you should have some sort of capital so you will not need any support when starting up. If you have proper experience in event planning and management business, you should know how to promote your tent hire business.

Tent Rental Business Plan - Startup Cost

Start-up Expenses
Legal $72 500
Consultants $0
Insurance $32 750
Rent $222 500
Research and Development $32 750
Expensed Equipment $62 750
Signs $12 250
TOTAL START-UP EXPENSES $435 500
Start-up Assets $22 000
Cash Required $485 000
Start-up Inventory $0
Other Current Assets $322 500
Long-term Assets $52 625
TOTAL ASSETS $882 125
Total Requirements $1 317 625
START-UP FUNDING $1 317 625
Start-up Expenses to Fund $435 500
Start-up Assets to Fund $882 125
TOTAL FUNDING REQUIRED $1 317 625
Assets $121 875
Non-cash Assets from Start-up $195 000
Cash Requirements from Start-up $0
Additional Cash Raised $203 125
Cash Balance on Starting Date $118 750
TOTAL ASSETS $638 750
Liabilities and Capital $118 750
Liabilities $121 875
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
TOTAL LIABILITIES $240 625
Capital $0
Planned Investment $1 317 625
Investor 1 $0
Investor 2 $0
Other $0
Additional Investment Requirement $0
TOTAL PLANNED INVESTMENT $1 317 625
Loss at Start-up (Start-up Expenses) ($919 500)
TOTAL CAPITAL ($919 500)
TOTAL CAPITAL AND LIABILITIES $638 750

First of all, you should be insured, bonded and licensed to start this business. Secondly, you should have a secured space or warehouse facility to store all your tents and trucks, as discussed earlier. Tents are rental for outdoor events like family reunions, weddings, etc. You may also want to offer complimentary services like event planning and party rental to attract customers.

 

By having some experts on your side, you can estimate the cost of inventory. You will also have to forecast the costs for assets, expenses, loans, and investments for your business plan. Here are the detailed start-up funding, requirements, expenses, assets and other requirements –

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Services for Customers

When starting your own tent hire practice, you may want to provide different services in terms of party rental business while considering the needs of event planning industry in the US. Making profits from the industry should be your main goal for tent rental business. You must be ready to do everything as per the law to achieve your goals and aim.

At the same time, your business should also be aimed to improve existing suppliers and inventory by adding your product lines from the market.

Note

You should also be ready to offer specials like discounts to attract potential customers when starting a tent rental business. Meanwhile, it would also help retain solid working capital in the business.

You may want to list down the following services for your customers –

  • Tent hire
  • Corporate events
  • Wedding planning
  • Outdoor parties
  • Conferences/Annual General Meeting
  • Birthday planning
  • Corporate events
  • Wedding supply rentals
  • Banquet hall rentals
  • Competitions/Sports events planning
  • Other events planning

 

When writing a tent business plan, you may want to list down the above services or others that you may provide.

Marketing Analysis of Tent Hire Business

Marketing analysis is the most important part of a tent hire business plan. You need to put a lot of focus on the same for your tent rental startup. Also hire the experts who can help you make a business plan for marketing tent rental firm.

Business Plan for Investors

Market Trends

One thing is for sure. You cannot find a business, which is seriously into tent rentals only. It is not easy to maintain operation cost and overhead or arrange proper income to expand your business in this type of venture. You may easily find a tent rental company these days, which is engaged in offering complimentary solutions like event panning and party rentals.

 

The party rental and event planning industry has been evolving constantly. Hence, your groundbreaking ideas and strategies, which were once successful, may no longer be that productive. If you want to know how to find clients, you have to keep a close eye on the current market trends over the past few years.

 

These days, social media has become a very vital tool for event planners to rely on. It can help interact with attendees, gather details of the events, gather feedback and create engagement all the year round with the target audience. There are apps used for wedding and event planning. These apps can help you gather all the required details to project for the future. Event planners can easily host several events via online platforms and social platforms.

Marketing Segmentation

In the the initial stage, you may want to serve small to medium businesses, individual clients and new ventures to even well-established ones. There is no way to keep you from growing your business and to compete with the party rental companies and event planners in the US.

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As a party rental and event planning organization, you may want to offer different services. For doing this, you should have well-equipped and trained staff to serve a huge range of client’s base. Your target market should be including individuals from different classes and walks of life, including international and local organizations. Here are some of the clients you may want to serve –

Tent Rental Business Plan - Market Segentation

  • Young adults/couples
  • Corporate organizations
  • Blue-chip companies
  • Politicians/ political parties
  • Religious organization
  • Families/households
  • Government
  • Sports organizations
  • High schools, universities, and colleges
  • Startups and enterprises
Market Analysis
Potential Customers Growth YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 CAGR
Young adults/couples 10% 22 334 32 344 43 665 52 544 66 432 10,00%
Corporate organizations 15% 11 433 13 344 16 553 18 745 20 545 13,43%
Blue-chip companies 10% 8 322 9 455 10 655 12 867 14 433 13,00%
Politicians/ political parties 10% 4 333 5 655 6 877 7 877 9 543 10,57%
Religious organization 14% 3 256 5 655 6 877 7 877 9 543 11,00%
Families/households 15% 3 925 5 655 6 877 7 877 9 543 10,00%
Government 8% 2 568 5 655 6 877 7 877 9 543 7,00%
Sports organizations 7% 2 568 5 655 6 877 7 877 9 543 10,00%
High schools, universities, and colleges 6% 2 568 5 655 6 877 7 877 9 543 8,00%
Startups and enterprises 5% 2 568 5 655 6 877 7 877 9 543 7,00%
Total 100% 63 875 94 728 119 012 139 295 168 211 100%

Business Target

Initially, you may want to rent typical tents. Later on, your target must be to provide the reliable and professional event planning services for individuals, businesses as well as non-profit organizations to organize those events. You must be able to be a leading brand in tent rental and event planning businesses as well as one of the top 20 rental and event planning businesses in your area.

Product Pricing

You need to explain the price range of your services in this section. You need to provide has many details as you can regarding pricing. For example, if you are offering hundreds of products, categorize them well. Do not exceed this section more than one page. Just like in consulting and rental business, hourly billing in event management and rental business is also charged as a prolonged industry tradition.

For some kinds of event management or planning services, flat fees also make some sense as they provide a better prediction of service charges. This way, you can charge both hourly billing and flat fee as per the client’s needs.

You may want to keep your charges within the market rate for all your clients. For doing this, you need to save on overhead expenses and collect payment in advance. You can also offer special discounts for non-profits, startups, small businesses, and cooperatives. Some clients need to plan events and hire tent rental services on a regular basis. It should be tailored well to meet the needs of clients.

Tent Rental Marketing Strategy

It is no denying the fact that the competition in event planning and tent rental industry is very tough in the US. Hence, you can hire some of the top experts in order to manage your marketing and sales strategy. You can recruit sales and marketing professionals on the basis of their industry expenses.

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They should also get proper training on a regular basis and well equipped to meet targets and overall business goals. Your work and services should also speak for your business in the market. This way, you need to create a business development plan for a tent rental company that will define your words of mouth publicity from happy clients.

When starting tent rental business, your goal must be to grow your tent rental business to come up as one of the best event planning companies in the US. This way, you need to plan your strategy to get the most of available market. This tent hire business plan sample can be a major driving force for your startup. This way, you need to define the following pointers –

Competitive Analysis

We will have a tough competition ahead of us because of the other Tent Rental Business competitors. Still, we hope to stand out due to the quality of our services. Our second competitive edge will be our unparalleled customer service, which will be the best in town. We will treat every individual with utmost respect and make sure that they will get our good services of Tent Rental. We will also ensure the security and safety of all kids and teens by implementing strict policies.

Sales Strategy

  • We will market and advertise our Tent Rental on social and print media.
  • We will offer a 15% discount on our services for the first three months of our launch.
  • We will conduct seminars in schools and colleges for emphasizing the benefits of tent rental and hence will promote ourselves.

Sales Monthly

Tent Rental Business Plan - Sales Monthly

Sales Yearly

Tent Rental Business Plan - Sales Yearly

Sales Forecast

Tent Rental Business Plan - Unit Sales

Sales Forecast
Unit Sales Year 1 Year 2 Year 3
Outdoor Package 539 770 1 002
Sport Organizations 265 322 393
Religious Organizations 1035 1250 1762
Startups and enterprises 550 750 1 100
TOTAL UNIT SALES 2 389 3 092 4 257
Unit Prices Year 1 Year 2 Year 3
Outdoor Package $870,00 $910,00 $1 200,00
Sport Organizations $650,00 $750,00 $850,00
Religious Organizations $1 050,00 $1 200,00 $1 000,00
Startups and enterprises $1 700,00 $2 100,00 $3 100,00
Sales
Outdoor Package $468 930 $700 700 $1 202 400
Sport Organizations $172 250 $241 500 $334 050
Religious Organizations $1 086 750 $1 500 000 $1 762 000
Startups and enterprises $935 000 $1 575 000 $3 410 000
TOTAL SALES $2 662 930 $4 017 200 $6 708 450
Direct Unit Costs Year 1 Year 2 Year 3
Outdoor Package $560,00 $620,00 $800,00
Sport Organizations $105,00 $170,00 $190,00
Religious Organizations $750,00 $790,00 $940,00
Startups and enterprises $1 000,00 $1 350,00 $2 000,00
Direct Cost of Sales
Outdoor Package $301 840 $477 400 $801 600
Sport Organizations $27 825 $54 740 $74 670
Religious Organizations $776 250 $987 500 $1 656 280
Startups and enterprises $550 000 $1 012 500 $2 200 000
Subtotal Direct Cost of Sales $1 655 915 $2 532 140 $4 732 550

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Personnel plan

To figure out how to set up a tent rental business plan, you may want to work out on your personnel recruitment. This way, you can start from senior management. It should be based on overall staff performance for five years as per the board of trustees.

 

Company staff

When making tent hire business plan, you may want to hire competent and qualified staff in these positions –

  • Chief Executive Office (CEO)
  • Event Planning consultant
  • Tent cum Party Rental Manager
  • HR and Admin Manager
  • Accountant
  • Sales and Marketing Executive
  • Truck Driver
  • Customer Support

Average Salary of Employees

This way, you may want to define the average salary of each employee in your business clearly.

 Personnel Plan
Year 1 Year 2 Year 3
Chief Executive Office (CEO) $45 000 $52 000 $59 000
Event Planning consultant $145 000 $152 000 $159 000
Tent cum Party Rental Manager $410 000 $440 000 $480 000
HR and Admin Manager $55 000 $65 000 $75 000
Accountant $60 000 $63 300 $70 000
Sales and Marketing Executive $20 000 $23 300 $30 000
Truck Driver $10 000 $12 000 $15 000
Customer Support $15 000 $20 000 $25 000
Total Salaries $760 000 $827 600 $913 000

Financial Plan

You need to hire finance experts when making this section of a tent hire business plan. They can help you set the financial plan for our business. It should outline the overall growth of the company in the next three years to come.

To explain it further, here is the rundown of your financial strategies –

Important Assumptions

In this section, list all the estimates of tax and interest rate over the next three months.

General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10,00% 11,00% 12,00%
Long-term Interest Rate 10,00% 10,00% 10,00%
Tax Rate 26,42% 27,76% 28,12%
Other 0 0 0

Brake-even Analysis

Here, you need to show the overall graph in which you can define the revenue of your company and milestones you are expecting to achieve.
Tent Rental Business Plan - Brake-even Analysis

 Brake-Even Analysis
Monthly Units Break-even 5530
Monthly Revenue Break-even $159 740
Assumptions:
Average Per-Unit Revenue $260,87
Average Per-Unit Variable Cost $0,89
Estimated Monthly Fixed Cost $196 410

Projected Profit and Loss

In this table, you need to list all the incomes and expenses you are going to expect in your business.

 Pro Forma Profit And Loss
Year 1 Year 2 Year 3
Sales $2 662 930 $4 017 200 $6 708 450
Direct Cost of Sales $1 655 915 $2 532 140 $4 732 550
Other $0 $0 $0
TOTAL COST OF SALES $1 655 915 $2 532 140 $4 732 550
Gross Profit $1 007 015 $1 485 060 $1 975 900
Gross Margin % 37,82% 36,97% 29,45%
Expenses
Payroll $760 000 $827 600 $913 000
Sales and Marketing and Other Expenses $1 850 $2 000 $2 150
Depreciation $2 070 $2 070 $2 070
Leased Equipment $0 $0 $0
Utilities $4 000 $4 250 $4 500
Insurance $1 800 $1 800 $1 800
Rent $6 500 $7 000 $7 500
Payroll Taxes $34 510 $40 726 $46 942
Other $0 $0 $0
Total Operating Expenses $810 730 $885 446 $977 962
Profit Before Interest and Taxes $196 285 $599 614 $997 938
EBITDA $196 285 $599 614 $997 938
Interest Expense $0 $0 $0
Taxes Incurred $39 257 $119 923 $199 588
Net Profit $157 028 $479 691 $798 350
Net Profit/Sales 5,90% 11,94% 11,90%

Profit Monthly

Here, you need to show the detailed overview of your monthly profits for the 12 months in the next 3 years.

Tent Rental Business Plan - Profit Monthly

Profit Yearly

Your investors may also want to know the annual profits your business can make. It will also help you determine the estimate annual profits for the next 3 years.
Tent Rental Business Plan - Profit Yearly

Gross Margin Monthly

You need to show up your gross margin on monthly basis in your business plan.
Tent Rental Business Plan - Gross Margin Monthly

Gross Margin Yearly

Here, you can come up with annual gross margin you are expecting for the next 3 years.
Tent Rental Business Plan - Gross Margin Yearly

Projected Cash Flow

Here, you need to analyze the balance over the cash flow expected in your business for the upcoming year.

Tent Rental Business Plan - Project Cash Flow

 Pro Forma Cash Flow
Cash Received Year 1 Year 2 Year 3
Cash from Operations
Cash Sales $40 124 $45 046 $50 068
Cash from Receivables $7 023 $8 610 $9 297
SUBTOTAL CASH FROM OPERATIONS $47 147 $53 656 $59 365
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
SUBTOTAL CASH RECEIVED $47 143 $53 651 $55 359
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $21 647 $24 204 $26 951
Bill Payments $13 539 $15 385 $170 631
SUBTOTAL SPENT ON OPERATIONS $35 186 $39 589 $197 582
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
SUBTOTAL CASH SPENT $35 296 $35 489 $43 882
Net Cash Flow $11 551 $13 167 $15 683
Cash Balance $21 823 $22 381 $28 239

Projected Balance Sheet

In this balance sheet, list all the assets and liabilities in your business in the long run.

 Pro Forma Balance Sheet
Assets Year 1 Year 2 Year 3
Current Assets
Cash $184 666 $218 525 $252 384
Accounts Receivable $12 613 $14 493 $16 373
Inventory $2 980 $3 450 $3 920
Other Current Assets $1 000 $1 000 $1 000
TOTAL CURRENT ASSETS $201 259 $237 468 $273 677
Long-term Assets
Long-term Assets $10 000 $10 000 $10 000
Accumulated Depreciation $12 420 $14 490 $16 560
TOTAL LONG-TERM ASSETS $980 $610 $240
TOTAL ASSETS $198 839 $232 978 $267 117
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $9 482 $10 792 $12 102
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
SUBTOTAL CURRENT LIABILITIES $9 482 $10 792 $12 102
Long-term Liabilities $0 $0 $0
TOTAL LIABILITIES $9 482 $10 792 $12 102
Paid-in Capital $30 000 $30 000 $30 000
Retained Earnings $48 651 $72 636 $96 621
Earnings $100 709 $119 555 $138 401
TOTAL CAPITAL $189 360 $222 190 $255 020
TOTAL LIABILITIES AND CAPITAL $198 839 $232 978 $267 117
Net Worth $182 060 $226 240 $270 420

Business Ratios

Detail all the projected sales growth you are going to expect in percentage.

 Ratio Analysis
Year 1 Year 2 Year 3 INDUSTRY
PROFILE
Sales Growth 4,35% 30,82% 63,29% 4,00%
Percent of Total Assets
Accounts Receivable 5,61% 4,71% 3,81% 9,70%
Inventory 1,85% 1,82% 1,79% 9,80%
Other Current Assets 1,75% 2,02% 2,29% 27,40%
Total Current Assets 138,53% 150,99% 163,45% 54,60%
Long-term Assets -9,47% -21,01% -32,55% 58,40%
TOTAL ASSETS 100,00% 100,00% 100,00% 100,00%
Current Liabilities 4,68% 3,04% 2,76% 27,30%
Long-term Liabilities 0,00% 0,00% 0,00% 25,80%
Total Liabilities 4,68% 3,04% 2,76% 54,10%
NET WORTH 99,32% 101,04% 102,76% 44,90%
Percent of Sales
Sales 100,00% 100,00% 100,00% 100,00%
Gross Margin 94,18% 93,85% 93,52% 0,00%
Selling, General & Administrative Expenses 74,29% 71,83% 69,37% 65,20%
Advertising Expenses 2,06% 1,11% 0,28% 1,40%
Profit Before Interest and Taxes 26,47% 29,30% 32,13% 2,86%
Main Ratios
Current 25,86 29,39 32,92 1,63
Quick 25,4 28,88 32,36 0,84
Total Debt to Total Assets 2,68% 1,04% 0,76% 67,10%
Pre-tax Return on Net Worth 66,83% 71,26% 75,69% 4,40%
Pre-tax Return on Assets 64,88% 69,75% 74,62% 9,00%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 19,20% 21,16% 23,12% N.A.
Return on Equity 47,79% 50,53% 53,27% N.A.
Activity Ratios
Accounts Receivable Turnover 4,56 4,56 4,56 N.A.
Collection Days 92 99 106 N.A.
Inventory Turnover 19,7 22,55 25,4 N.A.
Accounts Payable Turnover 14,17 14,67 15,17 N.A.
Payment Days 27 27 27 N.A.
Total Asset Turnover 1,84 1,55 1,26 N.A.
Debt Ratios
Debt to Net Worth 0 -0,02 -0,04 N.A.
Current Liab. to Liab. 1 1 1 N.A.
Liquidity Ratios
Net Working Capital $120 943 $140 664 $160 385 N.A.
Interest Coverage 0 0 0 N.A.
Additional Ratios
Assets to Sales 0,45 0,48 0,51 N.A.
Current Debt/Total Assets 4% 3% 2% N.A.
Acid Test 23,66 27,01 30,36 N.A.
Sales/Net Worth 1,68 1,29 0,9 N.A.
Dividend Payout 0 0 0 N.A.

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