FabJob Guide to Become a Party Store Ownerfabjob.com/sample/Party Store_Sample_Guide.pdf · Party...

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

FabJob Guide to Become a Party Store Owner

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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




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




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




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






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




includespartyrentals,bringsin$35.3billionaccordingtotheAmericanRental Association.

Halloween,thebiggestsalesproduceroftheyearforthepartysupplyindustry,hasconsistentlygrownfrombringingin3.3billionin2005to nearly 6 billion in 2009, despite the downturn in the economy. And theNationalRetailFederationrecentlypredictedthat2016Halloweenspendingwouldhit$8.4billion,with34%ofU.S.adultsover18planningtoeitherattendorthrowaHalloweenparty.Otherholidays,likeChristmasandNewYear’s,consistentlyprovidepartystoreownerswithrevenuefromholidaygatherings,butitistheoff-seasonsdailyoccasionssuchasgraduations,weddings,andbirthdaysthatkeepstoreownersthriving.

Forexample,WeddingWirereportsin2017thattheU.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 in decades! Currently, the ARA (American Rental Association reports equipmentrentals,includingpartyrentals,areexpectedtogrowatanannualrateof4.3%through2020.

1.1.2 TypesofPartyStoresWhilethewords“partystore”maymakeyouthinkofoneparticulartypeofbusiness,infacttherearedifferenttypesofpartystores.Somepartystoresofferawidevarietyofpartyitemsforallpopularholidaysandoccasionswhileothersspecializeinsellingorrentingparticulartypes 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.

TypesofPartyProducts

Thefollowingaretypicalproductssoldorrentedbypartystores:

•Costumes: Adult costumes, children’s costumes, costumejewelry,featherboas,glasses,headgear,makeup,masks,pet




costumes,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,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

• 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

• 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

• 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.




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. For instance, the US Census (in a report entitled “Number of Firms, Number of Establishments, Employment, and Annual Payroll by Enterprise Employment Size for the United States, All Industries: 2014,“ reports that of3,535consumergoodsrentalfirms,overhalfemployfourorfewerpeople,withtheaveragebeingbetween1and2people;these1,941firmsemploy2,982peopleenjoyinganannualpayrolltotalingover$116million--that’sabout$39,000peryearonaverage.

Ifthesebenefitsofbeingapartystoreownersoundgoodtoyou,readontolearnwhat’sinsidethisguide.




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:

Chapter 2 (“Getting Ready”)providesinformationaboutwhatskillsyouwillneedasapartystoreownerandofficeresourcesfordevelopingany skills you may need to acquire or brush up on. It covers ways youcanlearnthroughobservation,professionaltradeorganizations,educationalcourses,andotherlearningopportunities.

Chapter 3 (“Starting Your Party Store Business”)willhelpyouexplorethepossibilitieswithinthisexcitingindustryanddecidewhatkindofstoreyou should open. This chapter will help you decide whether to buy an existingstore,franchise,oropenanewstoreatyourchosenlocation.Italsoexplainswhatyouneedtogetstarted,includingyourbusinessplan,start-upfinancing,storename,andotherimportantmatters.

Chapter 4 (“Setting Up Your Party Store”)offerstheinformationyouneedtoactuallysetupyourstore.Itgivesadviceonhowtochoosealocation,discusses what equipment and supplies you will need, explains how tofindmerchandisefromwholesalevendorsandsuppliers,aswellashowtoarrangeattractivestoredisplaystomaximizeyoursales.

Chapter 5 (“Running Your Party Store Business”)takesyouintotheday-to-daychallengeofrunningyourstoreonceitisopen.Itexplainshowto develop and implement a procedures manual and areas of operation checklists,andcoversinventorymanagement,financialmanagement,andworkingwithstaff.Thischapteralsoincludesadviceonpricingparty supplies and rentals.

Chapter 6 (“Getting and Keeping Customers”)covershowtoeffectivelymarketyourbusiness,fromplanningyourgrandopeningpartytoattractingrepeatcustomers.Thischapteralsoofferstipsonhowtoprovideexcellentcustomerserviceandsuggestionsforadditionalservicesyoucanoffertoincreaseyourincome.

Byfollowingthestepsinthisguide,youwillbewellonyourwaytolivingyourdreamofopeningyourownsuccessfulpartystore.




YouhavereachedtheendofthefreesampleoftheFabJob Guide to Become a Party Store Owner.Toorderanddownloadthecompleteguidegotohttps://fabjob.com/program/become-party-store-owner/.


https://fabjob.com/program/become-party-store-owner/

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