In today's crowded market, starting a baby furniture rental business isn't for the faint-hearted. You've got to figure out your differentiation long before you open up shop.
Who Rents Baby Furniture?
At first glance, baby furniture rental and leasing wouldn't appear to be a very lucrative business startup. With an abundance of price points in the baby furniture marketplace and a plethora of secondhand furniture options, nearly all consumers are capable of equipping their newborns with basic furniture -- cribs, changing tables, car seats, etc.
But when you factor travel into the equation, the prospect of baby furniture leasing becomes significantly more attractive. Millions of families travel outside of their local area each year and many lack the ability to bring their baby furniture with them, especially if they travel by plane, train or bus.
To accommodate market demand, baby furniture leasing companies provide everything parents and babies need to make their travels more enjoyable. In addition to leasing cribs, pack-n-plays and other furniture, many providers expand their business models to include stroller and car seat rental, baby food services and diaper services.
Key Selling Points in Baby Furniture Leasing
Traveling with kids is hard enough. But when you add a baby to the mix, an otherwise pleasurable travel experience can quickly become a trip through the deepest rings of hell. As a startup baby furniture rental provider, your primary selling point must be convenience. It's your mission to eliminate the hassle and headaches of infant travel through fast delivery, easy scheduling and turnkey shipping (if necessary).
Packaging (or product bundling) is also a key value point for baby furniture renters. In many cases, parents need access to complete kits for infants or toddlers. By bundling multiple rental products and offering rates on both a daily and weekly basis you can create options for your customers, allowing them to leverage discount pricing through convenient lease packages.
Risk Mitigation for Baby Furniture Rental Startups
Baby furniture rental businesses are inherently risky operations. Furniture malfunctions can lead to injuries; injuries, in turn, lead to lawsuits. To protect your startup, stick with products from major manufacturers (e.g. Graco) and include regularly scheduled safety inspections in your operating plan. Any inventory that is deemed defective needs to be repaired or replaced before it is leased to the next customer.
Likewise, you will need to obtain liability coverage to protect your personal and business assets. General liability insurance policies may (or may not) be enough. Consult your attorney and insurance provider to determine the types of insurance vehicles and coverage levels you will need in order to properly insulate your startup from the effects of litigation.
Characteristics of a Good Baby Furniture Rental Company Business Plan
Your baby furniture rental company's business plan should be tailored to your business's unique traits and goals. However, the most effective business plans do address specific sound business plan elements:
- Mission Statement – Your description of your baby furniture rental business's reason for existing.
- Goals & Objectives – A list of mile markers on your baby furniture rental business's road to success.
- Financial, Marketing & Action Plans – More detailed descriptions of how you will carry out your mission and achieve your baby furniture rental business's goals.
Don't Ignore Competitors
Well in advance of opening a baby furniture rental business in your town, it's worthwhile to see how you will fit in the competitive landscape. Try our link below to find competitors in your area. After following the link, enter your city, state and zip code to get a list of baby furniture rental businesses in your area.
Before you open up shop, make sure you know what you will offer to your customers that provides a significant advantage over your competition's offering.
Learning More About the Industry
If you are interested in starting a baby furniture rental business, be sure to speak with somebody who is already in the business. It's very unlikely that the local competition will talk to you. It'd be crazy for them to teach you the business.
On the other hand, an individual who has a baby furniture rental business in another town may be willing to share their entrepreneurial wisdom with you, provided that you won't be directly competing with them. Indeed, many experienced entrepreneurs enjoy offering advice to startup entrepreneurs. Our estimate is that you may have to contact many business owners to find one who is willing to share his wisdom with you.
Do you know how to find somebody who runs a baby furniture rental business who is willing to advise you because you live in different cities?
No problem! Just use the link below and try a random city/state or zipcode. Then start dialing for advice until you are successful.
Three Arguments for Buying a Baby Furniture Rental Business
It's almost always preferable to buy a baby furniture rental business than to pursue a baby furniture rental business startup.
You'll want to conduct a comprehensive due diligence process, but here are three arguments why you should think about buying instead of a startup.
- Initial Revenue. With a business purchase, you'll have the ability to buy a company that is already operating in the black.
- Operational Efficiency. When you're shopping for a baby furniture rental business, be sure to look for ones that have all of the necessary processes and systems to ensure seamless operations from your first day of ownership.
- Capital Acquisition. Lenders, investors and other funding sources almost always prefer business purchases to startups.
Don't Rule Out Franchising
Franchises reduce the amount of time it takes to launch a business because they leverage the expertise of successful baby furniture rental businesses and enhance the visibility of your startup in the local market. While other startups are struggling to locate vendors and automate workflows, your business could be open for business.
Even though franchising isn't right for every entrepreneur, many startup owners find that a franchise offers the resources and behind-the-scenes support they need to launch their business on solid footing. Our baby franchise directory contains the information you need to evaluate baby furniture rental business franchises. Just click on the link for more details.
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