How to : Open a tuxedo renting business
How to Open a Tuxedo Renting Business
Sometimes, you may walk into a Men's Warehouse or bridal shop, take one look at the tuxedo section, and think, "that's a cool idea... how do I do that?" Ingenuity, determination, and elbow grease go a very long way toward getting you closer to your goal, and making a living renting out tuxes is no different- you just need to be creative, enthusiastic, and possibly to bold to fail.
Make a business plan.This can be a long, drawn out plan that fills up many sheets of printer paper (pages upon pages of standard sized font in your word processor for you computer-savvy folk) or just simply a mental picture in your mind. It doesn't matter in the very beginning whether you know exactly what to down to the day, or if the start of your business plan is the following statement: "I don't know how, but I'm going to rent tuxedos!"
Ask yourself if you really want to do this.This may seem silly, but it works. It is in this step that you fine-tune any kinks in your original plan if you wrote everything down, while it gives you a jumping point to make a formal plan if you couldn't quite narrow it down at step 1. The main purpose of this step is to make sure that you are committed to your business instead of reacting on a whim, saving you time, headaches, and money...
Answer me this:what funds can you access right now? How much money have you saved up? How much of that money can be used towards start-up costs, and how much do you need to save as a rainy day fund? Can you depend on your friends and family to give you a loan or grant, or is this funding tree so dried up that you're more likely to get a ride from a skeleton? What rebates and tax breaks are available in your area that can make the start-up costs of a tuxedo renting business not so- well, costly? The more money and funding sources you have access to, the better. However, don't shy away from business loans, because that is the next step anyway...
Step 4:get a license! This has nothing to do with operating a car or having a "license to kill" (for those that didn't catch it, it's a James Bond reference). Instead, each and every legal business needs to have a unique business ID number, which is usually connected to a business license. You may not need a license to sell crafts or clothes at the swap meet or at a school fundraiser, but if you want to sell to a market that goes beyond your local community- or if you have sold for long enough and people think you run a legitimate tax-paying business already- you need to have that business license! In this case we are trying to rent tuxes, so call it something unique and catchy like Timmy_Tux or Tux Deluxe. Use your imagination and the database for registered business names to come up with a business name to associate with the EIN* so that people don't mix your company up with another rental company down the street from your door...
This is the short and sweet step:raise money! Take out grants and loans from your friends in family by cashing in favors, helping them out with their stubborn poodle, or offering things like full or limited partnerships. Also, since you hopefully have an EIN at this point (or will once you go through the real step by step process) you can apply for a combination of personal loans and business loans. If there are things you never use, never will use, and just sit there collecting dust, sell them immediately to turn your assets liquid (basically, what you can use to buy things immediately)
Two things, one step:you need tuxedos to rent out and a place to do it at. Usually business law enforcers look down upon businesses that rent tuxedos from their parents' garage or the back of their '90 Ford Escort, and in certain cases there might actually be penalties for being so cheap. In addition, if you do try to rent out suits and tuxedos from your car or a garage, you are unlikely to get many customers no matter how good the tuxes are or how competitively priced your services can be. Bottom line: think about how the customer would perceive your service if you did not have a set location, or if that location is in someone's private residence. It doesn't bode well with potential customers no matter how much they need a tux...
Advertise!Invest in your future by purchasing ad space in the newspaper, on the web, or on transportation devices- taxis, buses, your friend's sweet car, and "pedi-cabs" work well for exposure. Let people know about your services using a neat combination of word-of-mouth advertising, email newsletters, and good old fashion snail mail/ weekly print ads in order to keep things interesting.
Rent out tuxedos!This part is pretty self-explanatory, and should be relatively easy to understand. Tuxedo rental companies need to rent out tuxedos, or else they would be called something like tuxedo showrooms...
- Hire people, but don't go overboard with staffing! Make sure your employees understand how to check the fit of a tux on a particular human being. It helps neither you nor your client to let that client leave in a poorly-fitted tux, so make sure your employees do it right every time!
- When choosing a bank, choose a banker that knows what he or she is doing when it comes to managing your account. The business basics are pretty much the same in all business structures, but a banker that's used to dealing with building contractors might not necessarily have the knowledge or contact base you need to buy, rent, and sell tuxedos to the right clientele.
- EIN stands for Employer Identification Number. This is essentially like a Social Security Number (SSN), but instead of being linked to you directly it is linked to the business. You need an EIN in order to legally hire people on payroll as well as to set up shop in a permanent location.
- Never, ever, EVER let anyone else have more power over your money than you. It's YOUR business and not theirs, so don't let one person do all the cash-handling, book-keeping, accounting, and check authorizations. All this does is turn you into the perfect target to rip off...
- Even though I jest about selling out of the back of a car or in the garage, don't risk it. I do in fact drive a 1990 Ford Escort, which is why I used it as an example, but selling or renting out of the back of ANY car seems sketchy at best, criminal at worst.
- Find out the retail and wholesale prices for suits and tuxedos that you want to rent, as well as how much other rental companies charge.
- Be creative! If you notice a trend that seems to stick, then adapt your strategy to best utilize that trend or minimize the negative hit on your business. For example, don't sell off all your tuxedos if you're right next to where the local high school holds their senior prom. If you do sell any tuxes during this time of year, replenish your supply ASAP- you don't want to run out of tuxes too quickly or else those rowdy rebels will rent from somewhere else that does have tuxes available.
- Although I write this how-to to the best of my knowledge and with the best intentions, I cannot guarantee the results of any business venture. If anyone does guarantee results- especially if a deposit is involved- run. I'm not even joking: run! No human being can accurately predict every single variable that goes into how successful a business is. There are economists and social scientists that claim to be able to predict behavior, but variables can change so dramatically that their calculations may sometimes not even come close to reality- this is the way of the world. If the world was as predictable as they claim, the worst thing that would have happened in the history of mankind was that a group of people, for some strange reason, apparently cheated in Tug-of-War...Another disclosure: I am not personally a business owner, especially in the world of tuxedo rentals. I am a freelance journalist, salesman, and Marketing student. My parents have recently acquired their business license, but as a family we have sold hand-crafted jewelry to friends, family, and members of our community. It is from playing my role in this business venture that I have gained some perspective about what can and cannot work, and how they can apply to any field of business. I use my own personal anecdotes, experiences of others, and concepts I've learned to inform you of the process of starting a business.
Video: Menguin: A Tuxedo Rental Revolution
What You Need to Know Before Trying a Soup Cleanse to Lose Weight
8 Powerful Reasons to Love Your Enemies
Original And Bright DIY Leather Strap Clutch
That Tuna You Buy May Not Actually Contain Any Tuna
13 Leggings With Pockets That Can Store All Your Stuff
8 Effective Homemade Conditioners For Dry Hair
30 Seriously Cool Blog Templates—All FromEtsy
Hip Extension Basics
How to Be Single After a Long Relationship
How to Prove Discrimination
10 reasons to buy the April issue of Men’s Health
How to Dismount a Volume
YSL Scandal Fall 2019 Makeup Collection