How He Makes $700k From His Tent Rental Business

Building Tent-All Rent-All from the Ground Up

Name: Adam Keller

Company: Tent-All Rent-All

Employee Size: 7-10 during season

Technology Tools: Rental programs for inventory and customer interaction

Revenue: $700k

Founded: 2005

Website: www.startapartyrentalcompany.com

Introduction

Hello, my name is Adam, and since 2005, I've been running a party rental company. I didn't start it with the intention of it being my sole pursuit. It began as a way to make extra money on the side when I was younger, just out of college. Initially, I envisioned pursuing an office job or working my way up to a managerial position.

Eventually, I did get that office job. While working there, I would set up tents after hours and take them down on Sundays or Mondays, finding that I was making a significant amount of money doing so. However, I soon realized that the office environment wasn't a good fit for me. I disliked the drama, politics, and having others dictate my actions. I was drawn to the independence and financial rewards of my side gig.

As demand for my services grew, I found myself rarely turning down jobs, leading me to invest in additional equipment to fulfill these commitments. This unintentional expansion required more of my time. Coupled with my dissatisfaction with working at the office, I eventually decided to quit and never looked back.

I reinvested all my earnings back into the party rental company, and one day, I woke up realizing I no longer had any financial worries. It wasn't a gradual realization; it hit me all at once. Since then, I've been dedicated to running and expanding the party rental company, branching out into other areas of the event industry.

The Inspiration Behind Tent-All Rent-All

I had a roommate in college who worked for a party rental company based in the city we were in, Buffalo, and the neighboring city, Rochester, NY. Occasionally, I would accompany him to work on some jobs to earn a little extra money. Using that experience, I secured a job during summer break at a local party rental company when I returned home. There, I began to realize the rental rates and saw the profit potential. Recognizing that I knew how to manage such tasks, I made a decision during the last few months of my final year in college to purchase the necessary equipment, advertise, and see how it would go. It turned out to be a successful venture.

From Idea to Reality

Well, being a 22-year-old kid, I didn't know much about what I was doing, so I simply bought equipment and began marketing it in the phone book and the local newspaper. Yeah, this was way back when. I did that for a few years, during which people paid me cash or sent checks in my name. However, as I started to need to legitimize my operations, I went down to the county clerk's office and opened a DBA (Doing Business As) and a bank account so I could start accepting checks in my business's name. Over time, I had to continue legitimizing my business; I obtained insurance, workers' comp, and eventually rented a warehouse when my garage couldn't hold all the equipment anymore. I also brought on employees and acquired more trucks, steadily expanding.

Along the way, I learned numerous lessons I didn't even know I needed to learn, such as how to accept credit cards, record checks, manage taxes, and various other types of reporting. It was all a learning process through trial and error, and some of those lessons were quite costly.

Attracting Customers

The party rental industry is primarily service-based, so I rely heavily on Google ads. Billboards, radio ads, and newspaper ads are effective for raising awareness of your existence, but they don't necessarily convince anyone to host a party. When people are planning an event, they turn to Google to find what they need. Therefore, I allocate nearly all of my marketing budget to ensuring that my business appears in search results.

Another effective strategy is building relationships with key players in the event industry, such as caterers, wedding planners, and venues. Once you establish rapport with them, they can start recommending your services to their clients who may require party rental equipment.

Overcoming Challenges in Starting the Business

I'd say the biggest challenge was learning when to say no. In the beginning, there's this hunger, and you feel compelled to say yes to every job. But often, you end up at a job feeling annoyed or frustrated, perhaps because you didn't charge enough or for any number of other reasons. Over the years, I've learned that it's okay to decline certain opportunities. For example, we no longer service a particular city because the commute consumes too much time, leaving us unable to take on more lucrative jobs closer to home.

We've also become adept at turning down certain repeat clients in the event industry if they mistreat our equipment or prove difficult to work with. Additionally, I've started saying no to jobs that aren't straightforward and easy, ones that might entail unnecessary difficulty. I've realized that by saying no to those jobs, I open up space for better opportunities. I now understand that it's perfectly acceptable to say no because it allows me to be selective with my clientele. I don't have to accept every offer and compromise my personal life in the process.

Costs and Revenue 

The biggest cost in the event rental industry is primarily twofold. Firstly, there's the equipment itself, which is quite expensive to procure. Secondly, insurance plays a significant role; as the equipment holds substantial value, insurance costs can escalate. Liability insurance is especially crucial, considering the potential risks associated with equipment failure and subsequent injuries to individuals.

Moreover, significant expenses also arise from employing personnel and maintaining a fleet of trucks. These are essential for executing various jobs efficiently. With each addition of a new crew, revenue essentially doubles, as the capacity for work doubles. However, there comes a point of saturation, dictated by the market's capacity to support events. Generally, with each new truck added, the operational capacity almost doubles.

A Day in the Life

I'll break this down into a typical work week rather than just a day, as it involves planning for the entire week. Firstly, I always ensure that I have an overview of the upcoming eight days to anticipate any events we need to prepare for. Beyond that, every Friday before we wrap up for the weekend, I print out all the orders for the following week. This allows me to organize our delivery schedule over the weekend. Creating an efficient delivery schedule is crucial; we aim to minimize unnecessary travel by arranging deliveries in a logical order.

Over the weekend, I finalize the delivery schedule. Then, on Monday, we email everyone their delivery day and approximate time window. Monday and Tuesday are dedicated to completing pickups from the previous weekend and addressing any issues that may arise, such as repairs or cleaning, before returning the equipment to the warehouse.

On Wednesday, we commence deliveries, focusing on setting up large wedding tents. Thursday is reserved for medium and smaller tents, and Friday follows suit. We try to group deliveries based on proximity to optimize efficiency. Events typically take place on Saturday or Sunday, during which I may need to be on call in case of any emergencies, though these are rare. We don't stay on-site for events; instead, we drop off and set up the equipment beforehand.

Sunday involves starting pickups, with completion on Monday and Tuesday. This cycle ensures smooth operations throughout the week.

The Vision for Tent-All Rent-All

For me, in particular, I envision selling this business soon because we've already begun expanding into other areas of the events industry. Currently, I own two event venues and a restroom trailer company, both of which require less manual labor. I've already secured a buyer for this business, set for May 1st, 2027, but if that falls through, the alternative plan is to make this company entirely self-sufficient without my direct involvement, turning it into a passive income source for me.

I may consider scaling down the capacity for certain aspects of our operations, particularly those involving complicated mechanical items, to streamline operations and make everything more straightforward. Additionally, I'm reallocating funds from this business to expand into other ventures, including apartment rentals. This business has proven lucrative, providing me with the financial means to explore ventures that are less labor-intensive and require fewer employees.

Guiding Principles for Entrepreneurial Success

My advice is to consider attending "YouTube University" or investing in my course, haha. Additionally, it's beneficial to gain experience in the field by working for a non-local competitor, even if only for a short period. Experience in this industry is crucial for success.

Another important aspect is not assuming what will rent out. Conduct thorough market research and consider putting items on your website that you're uncertain about but think might generate interest. One of the biggest mistakes I made was purchasing items I thought were appealing and would rent out, only to find they didn't. Now, I gauge interest by putting items on my website before investing in them.

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