I am often asked how much money is needed in order to open a party rental business, and the answer I give always seems to shock people. A Tax Return is really all the money you need in order to bounce into the inflatable rental industry.
Now my answer is not as vague as it may seem being that tax returns come in a variety of amounts, so lets say for the sake of this article we use an average tax return of $3500. This amount almost seems laughable as start up capital for any other business, but for inflatable rentals an amount this small can actually get you started.
This is the reason I consider the party rental business the world's greatest business opportunity that everyone ignores. No one really pays attention or even wonders' how much money we're actually making, and I hope it remains that way. I like being ignored by the investment community because it keeps market saturation to a minimum which means more money for me and my colleagues.
Like you, I use to rent a princess castle and other forms of entertainment every year for my daughter's birthday parties prior to me getting into the business, until one day I asked the guy who was delivering the castle a question that changed my life forever.
"Hey buddy are you making any money doing this?"
The guy looked at me with a real conceited grin and answered my question with a more powerful question. "Well how much money did you pay me? When I actually though about it I paid him $380 for the castle, cotton candy machine, and a one hour trackless train ride. Then the guy when on to say,"I have 10 parties just like this one for Saturday and Sunday".
As he walked away I had the feeling like I was in a Spike Lee movie when the actor is standing still but the room is circling around him. I can honestly say his answer changed my life because it was at that moment I realized that not only did I book him every year for my daughter's party, but I also referred him to all of my friends and family. He was making a killing off us and no one even though to add it up until that day. It was at that exact moment I wanted in on the party rental business, and nothing was going to stop me.
Now this conversation with the owner of that company took place in 1994, by the end of 1995 I was delivering my own castles to my own friends and family. The reason I shared that story was to say this, I started my rental company with a $3500 tax return. Sure that small investment on my end didn't buy my me enough units to put any of the existing rental operations out of business, but it did get me in the game. I took my tax return that year and purchased two 13x13 castles, and the rest is now inflatable history.
Despite the fact that I didn't have enough inventory to put anyone out of business or even threaten their existing clientele, I did have enough inventory to service my own friends and family which instantly cut off the cash flow going to the guy we hired every year. With only two castles and a lot of creative promotions my little business grew into one of the largest rental companies in my town.
As I always say, think of how many people you know who have elementary age children? Now multiply that number times 10, because there are at least 10 kids at every birthday party. Here is the best part that I saved for last, you already know all the people you need in order to make at least a $100,000 a year. I promise you almost every adult you know has children, and all of their kids have a birthday party every year. Think about it!
I have just given you the pathway to world greatest business, you can continue to ignore our earning potential to the delight of me and my colleagues, or you can join us. The choice is yours.
Tyronne Jacques
Bouncer Boss
Bouncing N Cash
http://www.bouncingncash.com
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