How to Start a Party Supply Store

Start a party supply store by following these 10 steps:

1. Plan your Party Supply Store
2. Form your Party Supply Store into a Legal Entity
3. Register your Party Supply Store for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Party Supply Store
6. Get the Necessary Permits & Licenses for your Party Supply Store
7. Get Party Supply Store Insurance
8. Define your Party Supply Store Brand
9. Create your Party Supply Store Website
10. Set up your Business Phone System

We have put together this simple guide to starting your party supply store. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out othersmall business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit ourHow to Name a Businessguide or get help brainstorming a name with ourParty Supply Store Name Generator

If you operate asole proprietorship, you might want to operate under a business name other than your own name. Visit ourDBAguide to learn more.

Whenregistering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a party supply store?

A party supply store’s initial investment is about $90,300. This accounts for all certifications, insurance and products. A starting party supply store needs to obtain a number of products, including paper products, decorations, banners and tablecloths. It will also need a full line of wedding accessories, such as cake tops, server sets and similar items. Halloween costumes, candy and entertainment supplies will need to be purchased. In some cases, an additional $10,000 in startup expenses will exist, channeled into etching and engraving machinery.

What are the ongoing expenses for a party supply store?

作为一个经验法则:每1美元花在劳动力,operators can expect to spend $0.30 on capital investment. These investments are minimal, and yearly expenses can be as low as $15,000. These expenses account for utility costs, annual rent, product sourcing and advertising. Assuming the party supply store is of average size, and in a profitable shopping location, a rent expense of about $3,000 per month is acceptable.

Who is the target market?

一方供应商店最好的客户将节日nal “holiday shoppers.” Holiday shoppers may shop exclusively at a party supply store during Christmas, Halloween and the Fourth of July. That said, holiday shoppers can often be rushed. For this reason, an ideal shopper will be one who doesn’t exploit holiday product return policies. Because holiday-purchased items aren’t useful during non-holiday hours, product purchase exploitation frequently happens.

How does a party supply store make money?

While a party supply store can make money year-round, much of its revenue will be gained during the holidays—specifically Halloween. A store makes money by selling costumes, party favors, candy, balloons, costume makeup and decorations. Several party supply stores offer bounce house, fogger and professional party display rentals, too. If a party store offers such big-cot rentals, they frequently limit their availability. Again, a party supply store’s ability to maximize sales greatly depends on its customers’ holiday and party needs. Often, a party supply store is a local area’sonly服装和特色节日产品的提供者s. It simply isn’t profitable for department stores to carry such items, year-round.

How much can you charge customers?

Basic party supplies should cost between $4 and $15, depending on their use. High-demand, disposable items like paper cups, plates and banners will be slightly less expensive. Costumes, meanwhile, will need to be priced competitively whilealsomaking money. Average costumes should be priced between $40 and $80, depending on their complexity. Low-quality costumes—and child costumes—can be sold for about $20. Candy, balloons and other small, bulk-purchase items can be sold for under $5.

How much profit can a party supply store make?

A party supply store can make a little over $100,000, if it’s operating efficiently. Once expenses, investments and advertisement are paid, a party supply store manager can make approximately $57,000 per year. Assistant managers can expect to make approximately $33,000 per year.

How can you make your business more profitable?

Attract local support. Once your business has grown, vary its services to suit monetary needs. A party supply store capable of offering the area’s only bounce houses, professional displays and specialty costumes will thrive. Effective cost control, too, will help a costume supply store thrive.

STEP 2: Form a legal entity

The most commonbusiness structuretypes are thesole proprietorship,partnership,118bet金博宝 , andcorporation.

Establishing a legal business entity such as anLLCorcorporationprotects you from being held personally liable if your party supply store is sued.

You can金宝搏188是什么公司yourself and pay only the minimal stateLLC costsor hire one of the118金宝app for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more aboutstate sales taxand franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to aspiercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting abusiness credit cardhelps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with ourLLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a party supply store. Learn more about licensing requirements in your state by visitingSBA’s reference to state licenses and permits.

Certificate of Occupancy

A party supply store is usually run out of a storefront. Businesses operating out of a physical location typically require aCertificate of Occupancy(CO). A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a storefront:
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a party supply store.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening,it is recommendedto include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.

• If you plan to purchase or storefront:
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for you business’ location to ensure your party supply store will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully.Business Insuranceprotects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face,begin withGeneral Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need isWorkers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

A party supply store is often a small business. While large party store chains exist, any who own or manage a local party store will need to enjoy small business operations. Perfect for party-lovers, retail gurus and fun-loving store owners, a party supply store is an excellent business for those interested in advertising, professional selling, and merchandising.

What happens during a typical day at a party supply store?

A party supply store needs to be a preferred location during the holidays, due to its niche product stock. For this reason, day-to-day activities during holiday hours are drastically different than during non-holiday hours.

Over the holidays, a holiday supply store owner must handle rush orders, filing go-back items, handling costume fittings, managing increased product shipments, creating a custom return policy, and prioritizing customer service. During non-holiday hours, an owner must be able to conduct the regular responsibilities associated with any small business owner. In-house finances, marketing, management, promotion, and shop upkeep are important.

While owners shouldn't focus on product upkeep too much, several items in part stores—due to their disposable nature—may need to be replaced over time. Party supply stores often face slow periods when holidays aren’t near. These time periods deserve extra attention, so as to keep the shop operational.

What are some skills and experiences that will help you build a successful party supply store?

Above all, a strong sense of finance and marketing is needed. Because party supply stores face considerable difficulties with year-round financing, a strong grasp on local economics, product sourcing, and promotion is needed. A successful party supply store owner is often well-read in local customer needs, too.

客户服务的技巧也很重要。杜ring holiday hours, a party supply store can become hectic. All staff should be capable of handling tough customer decisions. Professional selling, a background in retail—specifically clothing—and knowledge of current trends certainly helps. Because Halloween is a notoriously party-store-centric holiday, having knowledge about current costume favorites is a must.

What is the growth potential for a party supply store?

Party supply stores do have difficulty growing. Because they’re in a niche product and service category, they often have financial growth and scaling difficulties during non-holiday hours. For this reason, larger chains like Party Land and Party City dominate the market. A party supply store can, however, become a local area’s preferred location rather easily. Party supply store franchises certainly exist, but they’re difficult to obtain.