The demand for rental furniture is growing by leaps and bounds with the restrictions imposed by the pandemic finally loosened, and events, weddings, exhibitions, fairs, sports events, conventions, etc., kicking off big time. The pandemic has also made many large organizations wary of investing in office infrastructure, making rentals preferable. According to Fortune Business Insights, the global furniture rental market will grow at a CAGR of 9.6% to reach $139.05 billion by 2029. It is a good time for entrepreneurs to enter the furniture rental market. Some tips to make the venture successful:
Decide Your Furniture Rental Niche
The most important decision to make is the niche in which you will operate. While you can classify the furniture rental market in many different ways, one of the most convenient is by way of use. For example, you could look at furniture for offices, homes, outdoors, and events. The reason for focusing on one or two specific categories is each has its challenges, hazards, and rewards. The setup needed to cater to the events market is different from that required to serve the home or office segment. The best way to decide on the niche is to evaluate your capabilities, the market demand in a specific geography, and the presence of competition.
Acquire and Manage Your Inventory
Regardless of the niche, you should not plan to have all the furniture in the very first year. The best way of acquiring stock is to identify the items with maximum demand and find sources of used furniture you can refurbish cheaply. You may also focus on items offering a better margin than the most common ones with a thin profit margin. Furniture brand names may also be important to discerning customers, so you may need to buy accordingly to meet that demand. You must be clear about the rental lifetime of each furniture category because you have to be clear whether the rentals will exceed the acquisition cost. Maintaining tight control over your inventory is the secret to success.
Focus on Marketing
The kind of marketing strategy you need to adopt will depend on the niche you are serving. You must invest in local advertising and encourage word-of-mouth referrals to address the home market. Optimizing your website for local SEO can be fruitful. If you are in office furniture rentals, you need to network with property management companies and participate in exhibitions and trade fairs to boost your brand reach. Investing in a top-class website and being active on social media to promote your brand and engage with your target audience is essential. Networking at the community level and supporting local causes and charities can get you noticed in the right places.
Making your furniture rental business profitable and sustainable depends on how well you can estimate and cater to the emerging market demand. You should focus on getting your brand noticed and market yourself to acquire clients. You can meet inventory gaps by partnering with other suppliers of rental furniture in your area. Make sure you have the required licenses and permits to operate your business and adequate insurance cover for the furniture and customer liability.