Life Notes Plus More

How would you like to start a business that can be operated from your home office and doesn’t require any special skills or education. A business that can cost you under $4,000 a month to operate but can earn you over $50,0000 a month. These numbers are possible with an event space rental business.

I was not aware of this type business until recently so I decided to research it.

This is an easy business to get into. There is a market for this type business because people are always searching for space to host parties, baby showers, seminars, business meetings, art shows, book signings, church meetings, workshops, club and organizations meetings, weddings, family get togethers, etc.

If you are interested in starting a simple business with a very high profit potential, this business may be what you have been looking for.

All you have to do is find a large space to rent. Pay the landlord first month’s rent and a security deposit of a month or two, do any necessary refurbishing, get the necessary permits, start marketing and open your doors for business.

Does this sound too easy? Let’s look a little closer at what my research found.

My research centered primarily on the rental of macro spaces — 2,000 to 3,000 square feet, which can service events that host approximately 50 to 150 people at a time.

Event space rental is an hour based business. One venue owner stated that he earns $500 and up per 4 hour event and he can book 2-3 events a day.

Some event space rental businesses offer only the event space for rent, including tables and chairs. The customers must supply their own food, decorations, music and set-up. Some spaces offer event planning with themes, decorations, disc jockey and catering to choose from. Some event space planners specialize in weddings only. The depth of the customer’s request and what the site offer will determine what price is charged.

Should you decide to start a business like this check out your competition. Check their location and what services they offer. How much do they charge, etc. Do a walk through of their venue if possible.

Some venue proprietors have automated their event space rental business to the point they barely have to be present to operate it . They use digital appointment scheduling. They use lock boxes for keys that can be opened with supplied combinations and they use cameras to monitor the events. Their customer has to agree to leave the space the way they found it and leave at the agreed upon time or they will be charged extra. Everything is spelled out in the digital contract that customers must sign when they submit their payment information.

Apparently the hardest part of this business is finding the right space. When looking, you want a space with a good location, good parking and one that is not in a high crime area.

After finding a space, before you make any commitments, you should check with the municipality where the space is located to make certain the location is zoned to allow you to use it the way you intend. If it is not, you will not be able to get an occupancy permit to open your business.

As you evaluate different spaces you should consider the answers to the following questions: Does the space have a sprinkler system or are fire extinguishers sufficient. What does the municipality require? Is there a noise ordinance for this area? Is the space handicap accessible? Is the space turn key or will you have to invest money to make it conducive to your needs. How is the ceiling, walls and floor? Will you be required to do more than paint the space? How is the heating and air conditioning? What type of lighting will you have. What type sound system will you need to supply?

How will you address ongoing maintenance issues such as stopped up toilet, leaky faucets, etc? You will need a kitchenette, a counter or a large table to hold food. You may also need an area for hand washing. If you think that it will take more than a month to make the space business ready, you may be able to negotiate with the landlord to allow you to start paying rent when all work to the space is done.

Will you allow liquor on the premises? This opens up a new and unique set of problems and legal requirements. To avoid them, most venues do not allow liquor.

There may be other issues not covered here. In fact, when you get ready to open a business you should have access to a business support team consisting of a lawyer, insurance agent and a bookkeeper.

It is advisable that you have an attorney look over your lease before you sign to make certain you have covered your basis and nothing is going to pop up later to cost you money. You also have to decide on a legal structure for your business. A sole proprietorship may not be in your best interest.

Your attorney should also help you review the contract you plan to require your customers to sign in order to clarify all of your expectations.

You will also need liability insurance to protect you and your assets from any unforeseen incident that may occur on your rented property.

Your bookkeeper will help you keep track of your taxes and all the money you are sure to earn with your event space rental business.

If you find this information helpful click like and/or leave a comment. This will help me determine what future blog posts will be most helpful. Thanks.