Learn everything you need to know to set up a successful party rental business in Kuwait, including how to pick what items to rent, register your business and use QR code technology to get paid easily.

Party rentals are in great demand these days due to more people adopting the GCC lifestyle, meaning they are willing to pay more for fun party activities (such as bounce houses and disc jockeying), catering, cutlery, and decorations. As far as business ideas go, party rentals are a safe, low-risk venture that could yield good money over time.

If you are not local and are considering how to start a party rental business from home in Kuwait, then you can face restrictions on foreign ownership and a complex business startup process.

Therefore, we have explored these topics in detail and compiled a list of applicable steps for expats to start a party rental business in Kuwait.

We’ll cover the following:

1. 5 types of party rental businesses in Kuwait
2. 14 steps for starting your own party rental business
3. Challenges and solutions of starting a party rental business in Kuwait
4. How to simplify online business payment in Kuwait?
5. Party rental business frequently asked questions

[Looking to start a new business in Kuwait and want to ensure your payments go smoothly? With Kem, making and receiving payments is super easy— download the Kem app for free on Google Play and Apple today.]

5 types of party rental businesses in Kuwait

1. Table and chair rental business

Tables and chairs are non-negotiable furniture at any party, and clients will demand them for all types of events. The overhead cost and initial capital for such a business are relatively low.

Additionally, the price of party chairs at IKEA starts at KD 20, and a large party table can cost about KD 50 or more. Investing in different types of tables and chairs allows a business to cater to all types of events, from birthday parties to corporate events.

Recommendations

1. Consider offering delivery and setup services for an additional fee.
2. Partner with local event planners and venues to offer package deals.
3. Offer discounts for long-term rentals or bulk orders.

2. Entertainment equipment rental business

While many people in Kuwait prefer to throw parties in their own homes and villas, they often lack efficient entertainment equipment. Items such as karaoke machines, DJ equipment, speakers, and microphones add the "party" element to the dance floor and are in great demand. It's worth noting that investing in high-quality equipment is crucial, as maintenance works for electronic equipment can be quite costly.

Recommendations

1. Offer a variety of entertainment packages to meet the needs of different budgets and event types.
2. Provide setup and takedown services for an additional fee.
3. Partner with local DJs and entertainers to offer discounted rates to your customers.

3. Wedding decoration items rental business

Weddings require unique decoration items such as flowers, centerpieces, arches, tablecloths, chair covers, and more that aren't found in most homes. A specialized wedding rental business can provide these items to transform a normal venue into an unforgettable event.

Perhaps surprisingly, a wedding decoration items rental business can have low startup costs. Going the extra mile by collaborating with a wedding decorator can provide an advantage for possible clients and offer them all their wedding decoration necessities in one place.

Recommendations

1. Offer a wide range of wedding rental items to meet the needs of different budgets and styles.
2. Provide delivery and setup services for an additional fee.
3. Partner with local specialists in wedding event planning as well as popular venues to offer cross-promotional opportunities.

4. Inflatables rental business

Inflatables have become key entertainment features at all children's birthday parties. Investing in inflatables of different sizes is recommended to allow all types of clients to take advantage of the rental service, whether it's a birthday at home, in a park, or by a pool.

All one will need is a bounce house, water slides, inflatable sports games, blowers, and air bumps. This business idea is stress-free and profitable. One of the key advantages of this party rental is that it takes up very little space when deflated, saving money on renting storage space.

Recommendations

1. Offer a variety of inflatables to meet the needs of different ages and interests.
2. Provide delivery and setup services for an additional fee.
3. Partner with local schools and event planners to offer your services.
4. Get some form of business insurance to cover any personal harm liabilities.

5. Catering equipment rental business

Food is a highly important part of any party, and clients would very much appreciate finding all their party catering necessities in one service provider. Items such as plates, bowls, cups, forks, spoons, knives, and buffet tables are in high demand, especially for expats with mid-income who can’t hire a caterer or rent a fully equipped venue.

Recommendations

To gain a competitive advantage, offer the delicacies desired by expats (who often struggle to find a caterer to provide their traditional food).

2. 14 steps for starting your own party rental business

Step 1: Study the market

To start a productive new party rental business in Kuwait, one must begin on a solid foundation and familiarize themselves with the ins and outs of the local party rental industry.

Conducting market research by browsing websites of similar businesses in Kuwait can be immensely helpful in finding inspiration and understanding the current needs and preferences of your local target market.

This can provide entrepreneurs with a broad and valuable understanding of the services, equipment, and pricing that a party rental company in Kuwait offers. With this knowledge, you can build a small startup according to your customers' budget and available resources.

According to Yasser Ahmad, a digital marketing consultant, “It is wise to stop thinking of advertising and start with conducting market research and strategy. Business owners tend to save the time and budget that is spent on conducting strategy, and this is a fatal mistake.”

Step 2: Decide your specialty

Different parties require different types of supplies, colors, and designs, and as a small business, one must define their niche and restrict it to no more than three or four types of events. This is especially important in Kuwait, where there is a strong demand for party rental services for a variety of occasions, including weddings, birthdays, graduations, and religious holidays.

For example, birthday parties, weddings, and gender reveal parties fall under the same category and require a similar setup. This means businesses specializing in these types of events can invest in a wider range of party equipment, such as tables, chairs, tents, decorations, and sound systems. And even if the budget is limited and one wants to start on a narrow scale, restricting the party equipment to tables and chairs is a safe, affordable investment.

Step 3: Set a budget  

Good money can be generated from a party rental business in Kuwait, even with a reasonable budget. However, it is important to set a flexible startup budget to stay on the safe side and remain organized. This will allow you to tailor your business plan accordingly and make informed decisions about your purchases and expenses.

Having a set budget will help you narrow down your options, starting from the number and quality of equipment you purchase to the amount of money you spend on maintenance and repairs.

Identifying all large and small expenses from the start is important to avoid unexpected costs. These include the following:

• Cost of equipment
• Delivery
• Business License
• Party rental software
• Marketing expenses
• Utilities
• Liability insurance
• Payroll
• Website development

It is recommended to be as generous as possible on your startup budget. Starting on solid ground will eventually pay off. As John Carrier, MIT Senior Lecturer, said, "If you constantly chase cost reduction, you will ultimately wear the system down into total failure."

Step 4: Register your business

After the business's specialty, budget, and all other details are set, it must become official through registration with the Kuwaiti Ministry of Commerce and Industry. This is a crucial step, as online businesses require registration just like their brick-and-mortar counterparts. A commercial license, a unique business name, and certain paperwork are necessary.

According to Seth Sadeq, Co-founder and CEO of Kem, “The hardest part of starting a business in Kuwait is getting the right paperwork and finding a payment solution.”

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Irrespective, people have continued registering businesses in Kuwait, even at a very high pace. The chart below shows an upward trend in business registrations since 2014.  

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The Kuwaiti Ministry of Commerce and Industry (MOCI) has launched an online platform that allows individuals to register online in a simplified process. The platform also provides information on the requirements for registering an online business in Kuwait. In addition, the MOCI has reduced the registration costs for online businesses significantly.

Step 5: Open a business bank account

Separating the personal bank account from the business one is a critical step when starting any type of business, as it simplifies expense management, income tracking, and taxation. In addition, providing personal bank information for clients would be very unprofessional.

In Kuwait, many banks offer business banking solutions, including the National Bank of Kuwait, Boubyan Kuwait, Gulf Bank, and others.

It is important to note that different banks offer different plans and solutions, so it is essential to understand the details of each plan before making a decision. Moreover, you need to research what internal regulations these banks have for expats establishing a business in Kuwait.

Most banks in Kuwait require a minimum opening deposit for business bank accounts. However, innovative solutions now use mobile applications to process money transfers without needing any minimum opening deposit.

Step 6: Fund your business

Whether an entrepreneur has enough startup capital to kick off their party rental business or not, many loan options are available in Kuwait. Several banks offer loans up to KD 25,000, which are accessible to foreigners with flexible repayment options and reasonable interest rates. Among the top banks offering such loans are Al Ahli Bank, Commercial Bank of Kuwait, and National Bank of Kuwait.

Step 7: Use influencers

Instagram, Snapchat, and Pinterest are great sources to draw inspiration from. With millions of pictures showcasing decorated parties, one can find limitless ideas and inspirations for decorating their party leasing equipment, whether it's tables, chairs, tents, photo booths, arches, etc. There's no need to strain the budget, as using budget-friendly items like fake flowers, tulle fabric, glitter, and balloons is affordable and can dramatically affect any basic party furniture.

Step 8: Purchase an insurance policy

The need for insurance in the context of online businesses in Kuwait is highly important. This is due to the various risks that a business may face, including equipment damage or loss, customer injuries, customer dissatisfaction, and economic downturn. Purchasing insurance is a safe investment that ensures the business's security. Some of the most popular insurance companies in Kuwait that offer coverage for online businesses include AIG Kuwait, Kuwait Insurance Company, and Gulf Insurance Group.

Step 9: Purchase the equipment

The quality and uniqueness of the party rental items you offer are what will grab the attention of an event host.

As a matter of fact, investing in high-quality party equipment is definitely worth it, as they will generate double their cost – if not more – in the long run. However, one must thoroughly research equipment providers and examine everything in person to ensure the items are indeed high quality.

Actually, following trends and purchasing items that are in high demand, especially if the prices are economical, will help generate customers. Examples are items needed for gender reveal parties, which is now a global phenomenon, and the Henna night, which is a customary and special pre-wedding celebration for brides in Kuwait.

With all that in mind, one must set their business purchase list accordingly and opt to give the customer the quality they want.

Step 10: Research target customers

Choosing a target audience is crucial when starting any business, but it is especially important for a party rental business in Kuwait. While Kuwaiti citizens are a significant customer base, the expat community in Kuwait is also very large and diverse. This presents a great opportunity for party rental businesses to target a wider range of customers and increase their profits.

According to Yasser Ahmad, a digital marketing consultant, “Localize not only your marketing content and campaigns but localize the strategy and the brand to be able to reach your target segment.”

It is important to target the expat community in Kuwait for several reasons. The expat community is growing rapidly. Expats comprise over 70% of Kuwait's population, according to a report by the World Population.

Step 11: Find a storage facility

Storing many tables, chairs, and other party essentials requires a sizable storage space. Since basements in compounds and apartments where foreigners reside in Kuwait are primarily designated for car parking, a storage facility becomes necessary.

There are many affordable storage and inventory management services in Kuwait where one can pay for space rather than a whole room. Additionally, since the business is still in its early stages, opting for personal storage is the more cost-effective and suitable choice, considering the limited number of equipment. It's essential to compare quotes from several service providers to get the best deal.

However, one must also factor in transportation costs. Renting a storage facility near residential areas and party locations, even if slightly more expensive than others, will ultimately minimize transportation expenses in the long run.

Step 12: Set a pricing plan

The pricing plan is one of the most challenging steps for any business owner: balancing profit, considering clients' purchasing power, and recovering startup capital is a lot to handle.

However, many references are available; for example, getting to know competitors' pricing strategies can enlighten an entrepreneur on how to set their own.

Moreover, the pricing must be set after considering all expenses, including the rentals and their setup, the transportation to and from clients' party locations, and the profit margin.

Aiming to gain more recognition and encourage clients to come on board, one must set the prices slightly lower than those of other prominent, mature businesses. Nevertheless, equipment rental mustn't be too cheap either because if people notice a significant price gap, they may doubt the service's quality and lose interest immediately.

Step 13: Create a business website

After all the foundations are laid, the startup is good to go and must have an official online presence. Creating a business website builds credibility and acts as an anchor to establish available services and offers. And it's not as big of a deal as it may seem, as creating websites has become easier than ever with simple-to-use, reasonably priced tools like GoDaddy Website Builder, WordPress, and others.

It's worth noting that social media platforms cannot, by any means, replace a website, as it's the official digital home of the business. As a start, the website must include a catchy description of the business, a contact page, and a page to showcase the products and services the business provides.

Following are some tips for a successful online business website in Kuwait.

Opt for a user-friendly design

The website is sometimes the first point of contact between a client and a business, so it must convey a positive and professional image.

A professional web developer needn't create a user-friendly website must it cost a fortune. Instead, it should be visually appealing and easy to navigate; in other words, visitors should find all the information they need clearly and effortlessly. The web design tools mentioned above come in handy for these purposes.

Display clear contact information

Potential customers may have many questions about services, prices, offers, and location, among others. Therefore, clear contact information is a must and should be prominently displayed on the website. It should include a business email and phone number.

Use engaging visuals

Today's clients are more occupied with their party decorations than ever, and a well-decorated location with attractive furniture and equipment can serve as an effective magnet for any customer. So, posting pictures showcasing the furniture's quality in a lively setting on the business's website and social media platforms would attract visitors and enhance credibility.

Create a reviews section

Giving clients the chance to express their opinion on the service's quality, whether positive or negative, has several advantages. It will enlighten entrepreneurs about things they might not have considered, show clients their opinions matter, and communicate a more professional, reliable business image. In Kuwait, a small and competitive market where customer service is highly valued, collecting and responding to customer feedback is essential for any business that wants to succeed.

As Bill Gates, co-founder of Microsoft, says, “Your most unhappy customers are your greatest source of learning."

Step 14: Utilize social media

As a startup, the budget won't be flexible enough to launch a huge marketing campaign; however, the business might gain the required recognition by using freely available tools and resources correctly.

Actually, social media platforms are the best free marketing channels today, as people in Kuwait spend around five hours a day on social media platforms, mostly on Facebook and Instagram, which are the two major social media platforms in the country, as the chart below shows:

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Filming reels and using the most trending reel songs can be a good marketing plan to reach a wide audience and grab their attention; a free and effective idea that requires no more than an attractive location, a smartphone, and an internet connection.

In addition, Instagram influencer marketing is an effective strategy that most online businesses use nowadays. Providing party rental services in exchange for an advertisement by a blogger is a fair deal that satisfies both parties. In Kuwait, many popular Instagram bloggers specialize in promoting local businesses.

You can also implement some SEO strategies or use pre-made SEO-optimized landing page templates to improve the website’s visibility on search engines and attract as many local customers as possible.

3. Solutions to common challenges of starting a party rental business in Kuwait

Kuwait's extremely hot weather

As seen below, Kuwait is known for its extremely hot and dusty summers that extend from June to August and also affect some days in September. As a result, outdoor parties and activities diminish in the summer, meaning that demand for outdoor party supplies is seasonal.

Solution

Offering special discounts and packages limited to the summer season can tempt customers to opt for indoor parties and save on their budgets. These offers can also serve as marketing channels that further promote the business's name in the market.

Limited funding options

While the Kuwaiti government is trying to support entrepreneurship, funding options for online businesses remain limited for Kuwaiti citizens and expats. The available options are primarily limited to bank loans and government grants, but these are typically granted for specific types and sizes of businesses.

Solution

Relying on personal savings and launching a small business within the available budget is a good way to start. Once the business grows, you can reinvest profits and consider one of the above options.

Language barriers

Arabic is the official language in Kuwait, and English is also widely spoken. However, Kuwait is a culturally diverse country with approximately 70% expatriate population, and each person may have their own accent and dialect that can be challenging for others to understand. This can pose communication challenges for entrepreneurs.

Solution

One way to overcome language barriers is to utilize emails and messages rather than phone calls for client communication. Moreover, if someone possesses a basic knowledge of English, there is no need to worry, as messages can be conveyed using simple and straightforward terms.

4. How to simplify online business payment in Kuwait?

QR code payments offer an efficient service that's perfectly suitable for online businesses. This service allows for completing transactions between two parties, the client and the business owner, without the intrusion of a third party or a bank.

By utilizing the QR code payments through P2P payment apps, a business owner can avoid the trouble of dealing with tons of documents and providing an initial deposit of no less than KD 1000, which opening a business bank account requires. A P2P payment app can be linked to an entrepreneur's personal bank account or even a card, and the transaction will be completed using only the payee's phone number and email.

Kem is a prominent P2P payment application based in Kuwait that allows you to send and receive money from the comfort of your home.

It supports beneficial features such as data encryption, a high level of account security, and fraud protection.

If the client is also a Kem user, there are no transaction fees, and for non-Kem users, the transaction fee is a paltry 1% of the amount transferred.

According to Seth Sadeq, Co-founder and CEO of Kem, the application can be used for a diverse set of businesses in Kuwait, including “freelance designers, those who sell goods from home, pop-up businesses, fitness trainers, crafts sellers, those selling second-hand clothing, DJ's, small food businesses, sport court rental, boat rental, and many more.”

[Kem is a very flexible P2P payment platform that doesn't restrict users to one payment method; instead, it accepts Visa, MasterCard, American Express, Discover, Apple Pay, and KNET. It only takes less than a minute to sign up; download the Kem app for free on Google Play and Apple today!]

5. Party Rental Business Frequently Asked Questions

How many chairs and tables do I need to start a business?

There isn't a need to stack many chairs and tables to kick off the event rental business. Sticking to the budget and starting with two high-quality sets serving multiple party types is sufficient. Additionally, utilizing affordable and attractive decoration items can completely transform any table and chair set, making them appear new.

What are some supplies necessary to start a business?

As a startup, there's no need to break the bank by spending on a secondary type of equipment. Starting with tables, chairs, party tents, lighting, an arch, and some decorating items is sufficient. However, investing in high-quality equipment is crucial, as they will have a longer lifespan and pay off in the long run.

How can I get started with party rentals?

This type of business could be a side business to earn extra money without risking significant startup capital; it's a relatively safe investment. So, it only needs time, organization, and a modest budget. Once the necessary equipment is purchased, the rest of the business launching procedures are uncomplicated.

There are many business opportunities to explore wherever you are located; it only requires research, a suitable budget, and a little courage.

Takeaways

• Party rentals are in high demand in Kuwait, offering a low-risk business opportunity with good profit potential.
• Starting a party rental business in Kuwait involves studying the market, choosing a specialty, setting a budget, registering the business, and opening a business bank account.
• Funding options for online businesses in Kuwait are limited, so starting small and reinvesting profits can be a secure approach.
• Language barriers can be overcome by using email and messaging for client communication.
• P2P payment apps like Kem simplifies online business transactions in Kuwait, removing the need for a business bank account.