Open a party supply or party rental shop!
Katherine Leonard
FabJob Guide to
Become a Party Store
Owner
Visit www.FabJob.com
Contents
1. Introduction ..........................................................................................10
1.1 The Retail Party Business ............................................................10
1.1.1 About the Industry .............................................................10
1.1.2 Types of Party Stores ..........................................................11
1.2 BenefitsofBeingaPartyStoreOwner .......................................17
1.3 Inside This Guide .........................................................................19
2. GettingReady .......................................................................................20
2.1 SkillsandKnowledgeYouWillNeed .......................................20
2.1.1 Self-Evaluation Quiz ..........................................................21
2.1.2 PartyKnowledgeandSkills ..............................................22
2.1.3 Interpersonal Skills .............................................................23
2.1.4 Business Skills .....................................................................25
2.2 LearningbyDoing .......................................................................29
2.2.1 WorkinaPartyStore .........................................................29
2.2.2 VolunteertoHelpOrganizeEvents .................................31
2.2.3 BeYourOwn“MysteryShopper”....................................32
2.2.4 Talk to Party Store Owners ................................................37
2.2.5 Join an Association .............................................................39
2.3 EducationalPrograms ................................................................42
2.3.1 Business Education .............................................................43
2.3.2 Other Courses .....................................................................44
2.4 Resources for Self-Study ..............................................................45
2.4.1 TradeMagazines .................................................................45
2.4.2 Books ....................................................................................46
2.4.3 Trade Shows ........................................................................47
2.4.4 Websites ...............................................................................48
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3. StartingYourPartyStoreBusiness ...................................................49
3.1 ChoosingYourNiche ...................................................................51
3.1.1 Party Rental Stores .............................................................52
3.1.2 Party Supply Stores ............................................................53
3.1.3 Specialty Stores ...................................................................54
3.1.4 Additional Services ............................................................56
3.2 OptionsforStartingaPartyStore ..............................................58
3.2.1 BuyinganEstablishedStore..............................................58
3.2.2 Franchising ..........................................................................65
3.2.3 OpeningaNewPartyStore ...............................................71
3.3 ChoosingaStoreName ...............................................................71
3.4 YourBusinessPlan .......................................................................73
3.4.1 WhatToIncludeInaBusinessPlan .................................75
3.4.2 Start-UpFinancialPlanning ..............................................80
3.4.3 A Sample Business Plan .....................................................90
3.4.4 Business Plan Resources ..................................................101
3.5 Start-UpFinancing .....................................................................102
3.5.1 GettingPrepared ...............................................................102
3.5.2 Equityvs.DebtFinancing ...............................................104
3.5.3 BorrowingMoney .............................................................105
3.5.4 FindingInvestors ..............................................................108
3.5.5 GovernmentPrograms ....................................................110
3.6 LegalMatters ...............................................................................112
3.6.1 YourBusinessLegalStructure ........................................112
3.6.2 Business Licenses ..............................................................118
3.6.3 Taxes ...................................................................................119
3.6.4 Insurance ............................................................................123
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4. SettingupYourPartyStore ..............................................................127
4.1 FindingaLocation ......................................................................127
4.1.1 Possible Locations .............................................................128
4.1.2 LegalRequirements ..........................................................131
4.1.3 SigningaLease ..................................................................134
4.2 StoreDesign ................................................................................146
4.2.1 Outside the Store ..............................................................146
4.2.2 Inside the Store..................................................................148
4.2.3 Store Security ....................................................................152
4.3 DisplayingMerchandise ...........................................................154
4.3.1 MaximizingSales ..............................................................155
4.3.2 CreatingWindowDisplays .............................................156
4.4 Retail Equipment and Supplies ................................................158
4.4.1 ItemsYou’llNeed .............................................................159
4.4.2 Suppliers ............................................................................161
4.5 ObtainingYourInventory .........................................................164
4.5.1 Wholesalers .......................................................................164
4.5.2 Manufacturers ...................................................................166
4.5.3 Prices and Terms ...............................................................166
4.5.4 Consignment .....................................................................167
5. RunningYourBusiness ....................................................................171
5.1 Store Operations .........................................................................172
5.1.1 DevelopingaProceduresManual ..................................172
5.1.2 Areas of Operations Checklists ......................................174
5.1.3 SettingHoursandPolicies ..............................................176
5.2 InventoryManagement .............................................................177
5.2.1 InventorySoftware ...........................................................177
5.2.2 InventoryTagsandLabels ..............................................178
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5.2.3 TakingInventory ...............................................................181
5.3 SettingYourPrices ......................................................................184
5.3.1 RetailPricingFormulas ...................................................185
5.3.2 RentalPricing ....................................................................190
5.4 GettingPaid .................................................................................193
5.4.1 AcceptingDebitCards .....................................................193
5.4.2 AcceptingCreditCards ...................................................194
5.4.3 AcceptingPaymentOnline .............................................195
5.4.4 AcceptingChecks .............................................................196
5.4.5 HandlingCash ..................................................................196
5.5 FinancialManagement ..............................................................198
5.5.1 Bookkeeping ......................................................................198
5.5.2 Financial Statements and Reports ..................................199
5.5.3 BuildingWealth ................................................................209
5.6 Employees ...................................................................................212
5.6.1 Employees versus Contractors .......................................212
5.6.2 BeforeYouHire .................................................................214
5.6.3 RecruitingStaff .................................................................218
5.6.4 TheHiringProcess ...........................................................221
5.6.5 NewEmployees ................................................................225
5.7 WorkingwithServiceProviders ..............................................228
5.7.1 How to Find Service Providers .......................................229
5.7.2 ChoosingServiceProviders ............................................229
5.7.3 ServiceProviderAgreements .........................................230
5.7.4 FinancialArrangementsandReferrals ..........................232
6. GettingandKeepingCustomers ....................................................235
6.1 MarketingTools ..........................................................................236
6.1.1 PrintedMaterials ..............................................................236
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6.1.2 YourWebsite ......................................................................242
6.1.3 SocialMedia .....................................................................248
6.2 MarketingTechniques ...............................................................252
6.2.1 Advertising ........................................................................253
6.2.2 Free Publicity .....................................................................257
6.2.3 NetworkingandReferrals ...............................................262
6.3 MarketingEvents .......................................................................264
6.3.1 YourGrandOpening ........................................................264
6.3.2 Other Special Events ........................................................268
6.4 Customer Service ........................................................................271
6.4.1 GreetingCustomers .........................................................271
6.4.2 MakingtheSale .................................................................273
6.4.3 Return/ExchangePolicy ...................................................275
6.4.4 GettingRepeatBusiness ..................................................277
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1. IntroductionCongratulationsontakingthefirststeptowardsopeningyourownparty store. As the owner of a party store, you will have the opportunity every day to make people happy as they celebrate special occasions.
Youwill learnhowtogetstartedinthisexcitingandrewardingbusiness in the FabJob Guide to Become a Party Store Owner. This chapter beginswithanoverviewoftheindustry.Inthepagesthatfollow,youwillreadaboutdifferenttypesofpartystoresandproducts,learnsomebenefitsofthisexcitingcareerchoice,anddiscoverthestepsneededtogetstarted.
1.1 TheRetailPartyBusiness
1.1.1 AbouttheIndustryWhenyouopenapartystore,youwill joinamulti-billiondollarindustry.Thepartysuppliesbusinessbringsin$27.9billioninyearlyrevenuefrom54,330individualcompanies,accordingtothebusinessresearchfirmHoover’sInc.,whiletheequipmentrentalbusiness,which
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includespartyrentals,bringsin$35.3billionaccordingtotheAmericanRental Association.
Halloween,thebiggestsalesproduceroftheyearforthepartysupplyindustry,hasconsistentlygrownfrombringingin3.3billionin2005tonearly 6 billion in 2009, despite the downturn in the economy. And the NationalRetailFederationrecentlypredicted(athttps://nrf.com/media/press-releases/halloween-spending-reach-84-billion-highest-survey-history)that2016Halloweenspendingwouldhit$8.4billion,with34%ofU.S.adultsover18planningtoeitherattendorthrowaHalloweenparty(http://research.nrffoundation.com/Default.aspx?pg=107). Other holidays,likeChristmasandNewYear’s,consistentlyprovidepartystoreownerswithrevenuefromholidaygatherings,butitistheoff-seasonsdailyoccasionssuchasgraduations,weddings,andbirthdaysthatkeepstoreownersthriving.
Forexample,WeddingWirereports(atwww.weddingwire.com/press-center/press-releases/2017/results-from-industry-s-largest-survey-weddingwire-s-2017-newlywed-report.html)thattheU.S.weddingindustryisover$200billionperyear,withtheaverageweddingceremony/receptioncosting$28,000.Ifyoudecidetocarryweddingsupplies in your party store, your business will benefit from the thrivingweddingindustry.
Nomatterhowtheeconomyisdoing,peoplestillwanttomaketheirspecial days memorable and party store owners make that desire a reality. In fact, a 2009 survey by the industry publication Party & Paper Retailer found more than one-third of party store owners had plans to expand, and this was in the depths of the most powerful recession indecades!Currently,theARA(AmericanRentalAssociation;www.ararental.org/Portals/0/Documents/Press%20Releases/FiveYearForecastStrengthens1.30.17.pdf) reports equipment rentals, includingpartyrentals,areexpectedtogrowatanannualrateof4.3%through2020.
1.1.2 TypesofPartyStoresWhilethewords“partystore”maymakeyouthinkofoneparticulartypeofbusiness,infacttherearedifferenttypesofpartystores.Somepartystoresofferawidevarietyofpartyitemsforallpopularholidaysandoccasionswhileothersspecializeinsellingorrentingparticular
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types of party items. For example, you could choose to open a party storethatspecializesinsellingcostumesforHalloween,abusinessthatoffersbouncehouserentalsandsuppliesforchildren’sbirthdayparties,orastorethatprovideseverythingneededtoplanafabulouswedding.
Themainfactorindeterminingthetypeofpartystoreiswhetheritisa“partysupply”store”ora“partyrentalstore”―althoughsomestoresareboth.We’llexaminethisdistinction,andprovideanoverviewoftheproductsandservicesthatcanbeofferedbybothtypesofstores.
PartySupplyStoresandPartyRentalStores
Party supply stores buy items from the manufacturer or wholesaler toresellforaprofittolocalcustomers.Typicalproductssoldinpartysupply stores include paper products, decorations, party favors, and disposablepartyitemssuchasplasticeatingutensils.Inadditionpartysupply stores may offer lower cost versions of products offered by party rental stores.
Party rental stores rent equipment and supplies for almost any imaginableparty,specialevent,festival,orotherget-together.Typicallyitemswhicharerentedarehigherqualitypartysuppliesandequipmentwhich customers may need only once. For example, many party items, suchasconcessionsandtents,aremoresuitableforrentingthanforsellingbecausemostpeoplecannotuseorstorethemonaregularbasis.
Asmentioned,sometypesofproductsareofferedbybothpartysupplyandpartyrentalstores.Forexample,youmightsell inexpensivecostumes but rent more elaborate costumes that cost hundreds of dollars.Oryoumightsellcolorfulpaperproductsforparties,butrentbeautifuldinnerwareandotheritemsforweddings.
Whileyoucanchoosetofocusentirelyonretailorentirelyonrental,there is no rule that says you must do one or the other. If it makes sense to stock mostly party supplies and supplement those with a few key rentalpiecesthatyouknowyourcustomerswillbelookingforanyway,thenbyallmeansdoit.Asyougetmoreexperienceyouwilllearnjustwhatsellsandwhatdoesn’tandwillbebetterabletodevelopauniquemix of merchandise.
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TypesofPartyProducts
Thefollowingaretypicalproductssoldorrentedbypartystores:
•Costumes: Adult costumes, children’s costumes, costumejewelry,featherboas,glasses,headgear,makeup,masks,petcostumes,temporaryhairdye,wigs,temporarytattoos,tuxedorentals, etc.
•DecorationsandProps: Balloonsofallshapesandsizes,bubblemachines, cake decorations, cake toppers, cardboard cutouts, chuppas,columns,confetti,discoballs,drapes,easels,flags,fogmachines,flowerpetals,gazebos,heliumtanks(forfillingballoons),mirrors, murals, parasols, pennants, plant stands, podiums, props, silkplantsandflowers,ringbearerpillows,tulle,umbrellas,wallurns, etc.
•DisposableProducts: Bags,bannersandsigns,bowsandribbon,boxes,centerpieces,cups,disposablecameras,giftwrap,greetingcards, invitations, napkins, paper plates, party hats, place cards, plasticeatingutensils,posterboard,savethedatecards,tablenumbers, table skirts, tablecloths, thank you notes, tissue paper, etc.
•EventNecessities: Aislerunners,babyseats,bars,canopies,chairs,chaircoversandsashes,cleaningequipment,coatracks,dancefloors,fans,flatscreentelevisions,handcarts,heatingandcoolingsystems,lecterns,loungefurniture,outdoorheaters,projectors,risers,screens,stages,tables,tents,trashcans,etc.
•FoodPreparationandServingWare: Barbecuesandgrills,barware,baskets,cakedecoratingtips,cakeknivesandservers,cake stands, candy dishes and containers, candy wrappers, china, chocolateanddrinkfountains,coffeeurns,cookiecutters,cupcakepapers,fonduewarmers,foodpicks,glassesandstemware,grillingsupplies,icebuckets,noveltycakepans,platters,punchbowls,servingtrays,silverware,tablelinens,vases,etc.
•GamesandConcessions: Admissiontickets,arcadegames,bingo,bouncehouses(alsoknownasbouncycastles),bowlinglanes,casinoequipment,children’scraftprojects,cottoncandymaker,dunktanks,drinkmixes,gamingtables,groupgames,hotdogwarmer,lasertag,limbo,magickits,mechanicalbulls,
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megaphones,minigolfcourses,moonwalks,obstaclecourses,photo booths, piñatas, poker chips, popcorn poppers, pretzel warmers,raffledrums,rockclimbingwalls,slushymachines,water slides, wristbands, etc.
•GiftsandFavors: Artsupplies,awards,beachballs,buttonpins,candy,certificates,coloringandactivitybooks,frisbees,giftbaskets,glow-in-the-darkitems,inflatables,kites,noisemakers,noveltyweddingandpartyfavors,photoalbumspictureframes,pom-poms,poppers,scrapbooks,sillystring,smalltoys,stickers,stuffedanimals,surprisebags,totebags,trophies,windowclings,etc.
•LightingandMusic: Batteryoperatedcandles,candelabras,candleholders,candlesandcandlelighters,chandeliers,karaokemachines, luminaries, mirror balls, paper lanterns, party music CD’s,sparklers,soundsystems,spotlights,stringsoflights,torches,strobelights,etc.
Whilethisisnotanexhaustivelist,itshouldgiveyouagoodstart.Tonarrowdownyourchoices,startthinkingaboutwhatsortsofpartythemesandeventsinterestyoumost,andthennotingwhatproductsarenecessaryforthoseparties.Forexample,althoughitmightmakesensetosellweddingsuppliesalongwithofferingweddingandeventrentals,itmightnotmakeasmuchsensetosellonlyHalloweencostumes and prom decorations.
PartyThemesandEvents
Inadditiontodecidingwhattypesofproductstocarry,youwillalsoneedtoconsiderwhetheryouwillofferproductsandservicesforalltypes of parties or if you will focus on particular events, holidays, or themes.Theseinclude:
Events
• Anniversary Parties
• Baby Showers
•Bachelor/BacheloretteParties
•Bar/BatMitzvah
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• Baptismal Parties
• Birthday Parties
• Bridal Showers
• Charity Fundraisers
•Christenings
• Class Reunions
• Corporate Events
•EngagementParties
• Family Reunions
•GoingAwayParties
• Graduations
•Homecomings
•HousewarmingParties
• Proms
• Quinceañera
• Retirement Parties
• Slumber Parties
• Super Bowl
• Sweet Sixteen
HolidaysandCulturalEvents
•ChineseNewYear
• Christmas
•CincodeMayo
• Easter
•ElDiadelosMuertos
•Father’sDay
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• Halloween
• Hanukkah
•IndependenceDay
• Kwanzaa
•MardiGras
•Mother’sDay
•NewYear’s
• Oktoberfest
•St.Patrick’sDay
•SweetestDay
•Thanksgiving
•Valentine’sDay
Themes
• Animals
• Casino
• Circus
• Fiesta
• Hollywood
• International
• Luau
• Pirates
• Princess
• Pool Party
• Retro
• Safari
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• Sports
•TelevisionShows(e.g.Survivor)
• Vineyard
•Western
•Whateverthemesyouoryourcustomersdreamup
Section3.1ofthisguideprovidesmoredetailaboutpopularpartystorespecializations(alsoknownasniches)andgivessomeadvicetohelpyou decide what type of party store to open.
1.2 BenefitsofBeingaPartyStoreOwnerChances are you have shopped in party supply stores or used the servicesofapartyrentalstore.Youmightevenhaveworkedinapartystore.Butwhileitcanberewardingtoworkinsomeoneelse’spartystore,nothingquitecomparestothebenefitsofrunningyourownbusiness.,including:
Freedom
Nothingquitecomparestothefreedomandsatisfactionofrunningyourownbusiness,implementingyourowncreativeideas,andtakingcreditforyourownsuccesses.That’swhymanystoreownerscitetheabilitytomaketheirowndecisionsasaveryrewardingaspectofthebusiness.Beingyourownbossallowsyoutochoosethekindsofmerchandise you will carry, the power to implement your own ideas, andthesatisfactionofrunningyourbusinessthewayyouwant.
FunandCreativity
Imaginearrangingdisplaysofbrightlycoloreddecorations,selectingfabulousproductsforyourstore,andhelpingcustomersputtogethereverythingthey’llneedfortheperfectbash.Ifthereisonethingthatpartystoreownerscanagreeon,it’sthatthepartybusinessisfun!Youget tohelpyourcommunitycelebratebirthdays,weddings,graduations,andholidaysallyearlong.Notonlythat,butyou’llhaveeverythingyouneedtoputtogetheryourownpartiesrightinyourown store.
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HelpingPeople
“Thepartyindustryisawonderfulbusinesstobeapartofbecauseitcelebratesthewonderfulthingsinlife.I’vehadagreattime.Partysuppliesisaveryhappybusiness.”
— Norma L. Ball, executive director, Paper First Affiliates, LLC
Some people think retail is all about sales. However, in the party storeindustry,it’salsoaboutprovidingawayforcustomerstomakememories.Forexample,abridewhohasimaginedherweddingdayallher life may come to you for ways to make this important day exactly whatshewantsittobe.She’llwantmorethanwhatdepartmentstoreshavetoofferandshe’llwantsomethingthatfitswithheruniquetaste.Youwillhavethesatisfactionofparticipatinginhercelebrationandinthe celebrations of many others. For this reason, the party business is a “feelgood”business,whichmakespartystoreownershipasatisfyingcareer choice.
FinancialRewards
Evenifyoubelievemoneyisn’teverything,it’shardtoignorethefactthatthepartybusinesscanbeverylucrative.Manysuccessfulpartystoreownersearnacomfortableliving.Youcanearnfromtensofthousandstohundredsofthousands,ormoreforalargestore,orevena chain of stores.
Butthere’scertainlyroomforthesmallorevenmicroplayertogetin.Forinstance,theUSCensus(inareportentitled“Number of Firms, Number of Establishments, Employment, and Annual Payroll by Enterprise Employment Size for the United States, All Industries: 2014,“ www.census.gov/data/tables/2014/econ/susb/2014-susb-annual.html) reports that of3,535consumergoodsrentalfirms,overhalfemployfourorfewerpeople,withtheaveragebeingbetween1and2people;these1,941firmsemploy2,982peopleenjoyinganannualpayrolltotalingover$116million--that’sabout$39,000peryearonaverage.
Ifthesebenefitsofbeingapartystoreownersoundgoodtoyou,readontolearnwhat’sinsidethisguide.
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1.3 Inside This GuideThe FabJob Guide to Become a Party Store Ownerisorganizedtohelptakeyoustep-by-stepthroughthebasicsyouwillneedtoopenandoperate your own party supply or party rental store. The chapters are organizedasfollows:
Chapter2(“Getting Ready”) provides information about what skills you willneedasapartystoreownerandofficeresourcesfordevelopingany skills you may need to acquire or brush up on. It covers ways youcanlearnthroughobservation,professionaltradeorganizations,educationalcourses,andotherlearningopportunities.
Chapter3(“Starting Your Party Store Business”) will help you explore the possibilitieswithinthisexcitingindustryanddecidewhatkindofstoreyou should open. This chapter will help you decide whether to buy an existingstore,franchise,oropenanewstoreatyourchosenlocation.Italsoexplainswhatyouneedtogetstarted,includingyourbusinessplan,start-upfinancing,storename,andotherimportantmatters.
Chapter4(“Setting Up Your Party Store”)offerstheinformationyouneedtoactuallysetupyourstore.Itgivesadviceonhowtochoosealocation,discusses what equipment and supplies you will need, explains how tofindmerchandisefromwholesalevendorsandsuppliers,aswellashowtoarrangeattractivestoredisplaystomaximizeyoursales.
Chapter5(“Running Your Party Store Business”) takes you into the day-to-daychallengeofrunningyourstoreonceitisopen.Itexplainshowto develop and implement a procedures manual and areas of operation checklists,andcoversinventorymanagement,financialmanagement,andworkingwithstaff.Thischapteralsoincludesadviceonpricingparty supplies and rentals.
Chapter6(“Getting and Keeping Customers”)covershowtoeffectivelymarketyourbusiness,fromplanningyourgrandopeningpartytoattractingrepeatcustomers.Thischapteralsoofferstipsonhowtoprovideexcellentcustomerserviceandsuggestionsforadditionalservicesyoucanoffertoincreaseyourincome.
Byfollowingthestepsinthisguide,youwillbewellonyourwaytolivingyourdreamofopeningyourownsuccessfulpartystore.
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YouhavereachedtheendofthefreesampleoftheFabJob Guide to Become a Party Store Owner.Toorderanddownloadthecompleteguidegotohttps://fabjob.com/program/become-party-store-owner/.
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