Rental service business is becoming a lucrative venture anywhere in Nigeria. Anywhere you go in Nigeria, there is always one celebration or occasion going on and in a largely populated country like Nigeria, one can only imagine the profit that can be made from doing a rental service business.
Rentals services offered in form of canopies, plastic chairs, tables, drums, coolers, cooking pots and utensils for occasions as birthday ceremonies, weddings, burials or any other occasion is good income venture. Both the rich and poor celebrate occasions and they make use of these facilities without the need to go and buy them.
In most environments, such celebrations always occur during the weekends and some week days; and one can continue to make endless income in millions annually from starting such a business.
In this write up, I will show you how you can start rental service business and how to go about ensuring optimal profit and success.
All You Need To Start a Rental Service Business
To kick-start this business you would need to purchase the following.
- 8 canopies which should cost about N200, 000
- 40 plastic chairs which should cost about N20, 000
- 20 plastic tables which should cost about N20, 000
- 20 coolers which should cost about N40, 000
- 20 drums which should cost about N60, 000
The total start-up expenses should be about N340, 000.
Estimated Profit For 1 Month
Since most occasions take place during the weekends, we will assume that the items will be rented out on Fridays and Saturdays every single month. This will give us 4 Fridays and 4 Saturdays every month. That’s a total of 8 rental days. However, you should note that there are instances where celebrations or festivities take place during the week days between Sundays and Fridays. We will only consider Fridays and Saturdays for this estimate though.
Doing it as stated we give us 8 rental days.
- 8 canopies at N1, 000 per canopy will give N8,000 daily × 8 rental days = N64, 000
- 40 plastic chairs at N50 per chair will give N2, 000 daily × 8 rental days = N16, 000
- 20 plastic tables at N200 per table will give N4, 000 daily × 8 rental days = N32, 000
- 20 coolers at N200 per cooler will give N4, 000 daily × 8 rental days = N32, 000
- 20 drums at N200 per drum will give N4, 000 daily × 8 rental days = N32, 000
Grand total for 1 month = N176, 000.
During the course of going about the running around for the business, it is most likely that you would incur expenses; whether foreseen or unforeseeable expenses. These expenses could be form loading and repacking of your facilities after services offered.
Assuming such expenses run into the tune of N76, 000 which is most unlikely, then profit for 1 month will be:
Earnings for 1 month (N176, 000) – Expenses for 1 month (N76, 000) = N100, 000
Therefore profit for 1 year will be N100, 000 × 12 months = N1, 200, 000 (N1.2 million)
Who Is This Rental Service Business Meant For?
Many people seem to erroneously believe that rental services should be reserved for the less privileged and uneducated. How wrong this thinking is! Having seen then huge returns that could be obtained by engaging in this venture, you can see that everyone and anyone with a mind for business with good returns can go into this business; education or no education. What matters in the end is having good returns.
One good thing about rental service business is that you don’t need the whole money in the world to start. You can start small then increase later. This is very good business especially for fresh graduates and corp members or job seekers just fresh out of the compulsory NYSC.
It’s my sincere wish that you succeed in this business should you decide to go into it.
See you at the top!