In today’s article, we will be looking at how you can start a rental business in Nigeria. The capital you will possibly need and the every other thing you need to know about the business to be successful in Nigeria. Rental business is very lucrative because all you need to do is buy your rental equipment once and you begin to make money with the equipment every time there’s a party or it is needed.
There are many rental businesses in Nigeria, the most common ones are the catering equipment rental business, sound equipment rental business and table and chair rental business. Depending on the capital you have at hand you can choose one of these rental businesses above or simply do all.
Is Rental Business Profitable?
The need for equipment during parties in Nigeria has created a huge need for rental businesses. Today, it is impossible to have a party in Nigeria without renting all you will need from table and chair down to canopies. This is why the rental business is lucrative in Nigeria today.
Capital Needed to Start Rental Business
Depending on the type of rental business you want to start in Nigeria, you will need a minimum capital of #500,000 to #100,000 to set up. This money will be used to buy your renting equipment. It will also be used to get a place where you will keep your equipment if you do not want to keep them at home.
How to Start a Rental Business in Nigeria
Below are the steps you should take to start a rental business in Nigeria today.
1. Conduct a Market Survey
It is very important to conduct your market survey before going into your rental business in Nigeria. You need to know the kind of rental business that is perfect in your area. In some areas, the rental of catering equipment is more lucrative than a chair and table rental business.
Conducting your market research will make you stand out from other rental businesses in the area. We have written an article on how you can conduct your market survey personally. You should read this post to get everything you need to know.
2. Write a Business Plan
The use of business plans in starting a business in Nigeria cannot be underestimated. Especially due to the fact that Nigeria is highly underdeveloped, one needs to be sure that any business proposed has at least an 80% chance to be successful.
As an entrepreneur in Nigeria, you do not want a business plan, you need a business plan because using it to start your rental business will make sure that you are able to run the business successfully and make profits from it. We have an article on how to write a business plan in Nigeria you should read it for more tips.
3. Get the Required Capital
The capital needed to start a rental business in Nigeria is relatively small. As I explained earlier, with a minimum capital of #500,000 you can start the business. However, it is important to note that not all pockets are the same. If you do not have up to this money, you can save up for it.
There are many online investment apps in Nigeria today that can help you achieve this within a short while with the massive interest they place in their savings. We have an article on these investment platforms where you can put your money to achieve your savings aim.
If you cannot do this, you can look for other ways to get funding for the business. We have an article on how to get funding for your business in Nigeria. You should read this article to check out the options you have.
4. Buy your Rental Equipment
The quality of your equipment will determine how well it will last. Some equipment can last up to 10 years before you start replacing them while some will not last up to 5 years. This is where quality comes into play.
You need to do your findings to make sure that the equipment you want to use for your rental business is quality equipment. There are many markets in Nigeria where you can go to buy your equipment with a warranty.
5. Create your Rental Charges
Charges differ depending on the equipment you are putting on rent and the quality of the equipment. For example; the cost of renting steel chairs is more expensive than the cost of renting plastic chairs. Charges for stage rugs are also different based on their designs and size.
You need to do a finding on how much rental businesses in your area put their equipment on rent. Chairs and tables are mostly rented in dozens, catering equipment is mostly rented based on necessary and unnecessary equipment.
6. Create Adverts to get Patronage
The advert is a way of creating awareness for a product or service. You need to create an advert for your rental business, especially within the first 3 months of opening your business. For offline advertisements, fliers and posters are perfect.
While for online advertising WhatsApp is good. You can use your WhatsApp status to create awareness. We have an article on how to promote your business on WhatsApp too.
7. Hiring Staff for Equipment
The moving of your rental equipment from one place to another can be cumbersome. You will need to hire workers that will help you to arrange the equipment in delivery trucks all the time both at party venues and at the store. You can pay your workers per day or monthly. It depends on what you prefer.
8. Making Profit from Rental Business
There are different ways you can make money from a rental business in Nigeria. You can increase profit by partnering with event planners. Since they manage events they will always rent your equipment. You can also partner with event halls.
Send a proposal to their managers informing them what they stand to gain if they patronize you. An example is a commission they will get each time they come to rent your equipment. MCs too can bring customers to your doorstep since they know people who organize events. Partner with all the MCs in your locality.
The rental business is a lucrative business in Nigeria because Nigerians love to party. At every point in their lives they are holding a celebration of some sort and those celebrations cannot be done without the necessary equipment.