Starting a rental business is an exciting and rewarding venture, but it can also feel overwhelming if you’re unsure where to begin. This checklist will guide you through the essential steps to get your rental company off the ground, from filing paperwork to purchasing inventory and beyond.
Checklist for Starting a Rental Company
1. File for LLC or Entity/Trade Name
Register your business, and don’t forget to do a thorough check for trademark infringement or any companies using the same name in other states or countries. Legal issues can slow you down, so get this right from the start!
2. Apply for City/State Sales Tax License
Every business must file and pay sales tax. Set up online accounts with your local city or state to handle monthly filings and payments efficiently.
3. Set Up Bank & Credit Card Accounts
Create separate bank and credit card accounts for your business. This helps streamline your finances and simplifies your bookkeeping.
4. Purchase a Domain Name
Even if you’re not ready to build your website, securing a domain name early on is crucial. Consider purchasing similar names as well to protect your brand.
5. Design Your Logo
Your logo represents your brand, so take the time to design something professional and memorable. It will be on everything from your website to invoices.
6. Obtain Liability Insurance
You’ll need a variety of insurance policies, including liability, vehicle, umbrella, inland marine, and workers’ comp to protect your business from unexpected events.
7. Build & Launch Your Website
Create a professional-looking website that showcases your services and makes it easy for potential customers to contact you.
8. Purchase Initial Inventory
Start small but smart. Purchase the bare essentials like 10 tables, 100 chairs, and a couple of tents (e.g., 2-3 20×20 tents). Expand your inventory as your business grows.
9. Build Vendor Relationships
Find a few reliable vendors for sub-rentals (linens, tents, catering supplies) and try to negotiate a 20% discount for your bulk purchases.
10. Obtain Storage/Warehouse Space
You’ll need space to store your growing inventory. Secure a warehouse or storage facility that accommodates your needs.
11. Purchase Delivery Vehicles
Invest in reliable delivery vehicles to transport your rentals to clients. Depending on your business size, you may need one or several vehicles.
12. Set Up Call Tracking
Install a call tracking system to monitor and analyze the effectiveness of your marketing efforts. This helps you fine-tune your strategy as your business grows.
13. Create Social Media Profiles
Set up a presence on Facebook, Instagram, Twitter, and Pinterest to market your services and engage with customers.
14. Set Up Inventory & Accounting Software
Streamline your operations by setting up inventory tracking software and accounting software like QuickBooks. This will keep you organized from day one.
15. Write Canned Email Responses
Pre-write responses for common inquiries such as estimates, invoices, payment receipts, and donation denials to save time and ensure consistency in your communication.
16. Organize Your Expense Accounts
Track costs by rental category (tables, chairs, tents, etc.) to determine which products and services yield the highest profit margins.
17. Create a Thoughtful Item List
When building your item list, ensure it’s well-organized and easy to navigate. A clear naming structure will save you time and minimize confusion.
18. Design Your Estimate & Invoice Templates
Create professional-looking templates that reflect your business name and logo. Consistency is key to making a great impression.
19. Set Up Sales Tax Reporting in QuickBooks
Establish sales tax preferences in QuickBooks to manage percentages and ensure timely and accurate reporting.
20. Research Competitor Pricing
Do some competitive research in your area to understand pricing. Don’t forget to account for additional fees like late-night pick-up, set-up, and damage insurance.
21. Launch Google Ads Campaign
Kickstart your online marketing with a $500 monthly Google Ads spend and a $100 management fee to drive targeted traffic to your website.
22. Start a Search Engine Optimization (SEO) Campaign
Invest $500 monthly in an SEO campaign to improve your website’s visibility in search engine results and attract organic traffic.
23. Write Rental Terms/Contract
Have a lawyer review your rental terms and contract to ensure your business is protected from potential liabilities.
24. Ask for Reviews After Sales
Immediately after completing a sale, start requesting online reviews from your customers to build trust and enhance your reputation.
25. Join Professional Organizations
Consider joining your local Chamber of Commerce and the American Rental Association (ARA) to network with other professionals and stay on top of industry trends.
26. Build Tent Anchor Blocks
If you plan to rent tents, start making your own concrete blocks for tent anchors. One block per day for a month should be enough to get started. Consider using Block N Roll for their efficient form and transport system.
27. Choose a Linen Vendor Early
Linen quality matters! Select a vendor early on, and stick with them to maintain consistent color and quality throughout your business’s lifespan.
28. Document Processes for Each Department
Start documenting processes for each department (front office, warehouse, delivery crews, etc.). These service manuals will help train new hires and be valuable if you ever decide to sell your business.
29. Attend ARA Rental Shows
Attend the ARA rental show for the first 2-3 years. Not only can you secure discounted rates on inventory, but you’ll also learn valuable insights from industry experts.
30. Utilize Data for Inventory Purchases
Use historical data from QuickCount to decide on new inventory purchases. Look at overbooked items or customer requests to guide your decisions.
31. Keep Track of Customer Requests
Ask your receptionist to track items that customers frequently request but you don’t currently offer. Use this feedback to expand your inventory in high-demand areas.
32. Buy Used Dance Floors
If you’re planning to rent dance floors, check Craigslist or OfferUp for great deals on used options. You can often find companies looking to offload their inventory at a fraction of the cost.
By following this comprehensive checklist, you’ll ensure that your rental business gets off to a strong start and is set up for long-term success. From securing the right paperwork to building relationships and acquiring inventory, every step you take brings you closer to building a thriving rental company. Happy renting!
