Not many jobs offer the owner the advantage of being on the beach all day and still make money. An umbrella rental business does just that. While you're soaking up the sunshine you still need to cover the basics of business to get your company off to a good start.
One of the most important factors to consider before starting any business is whether a demand exists for your product. If you see that beach goers in your area need some cover from the unrelenting sun, an umbrella rental business may be a lucrative venture. However, you cannot typically just operate a business on a beach without certain permits and licenses. Failure to register your business could create legal and tax problems later on.
Get Street Legal
Acquire the necessary business permits and licenses. You may need a peddler's license if you don't have a storefront. Check with the city and state business development offices to find out exactly what you'll need. For example, you may have to obtain a sales tax license and remit sales tax on the umbrella rental. Check to see who owns the beachfront. You may have to acquire the owner's permission to be on that beach. Public beaches may prohibit solicitors.
Getting Paid for the Shade
You have to have a way to get paid for the umbrella rentals. Cash is always cool but doesn't protect you in the case of theft or the customer forgetting to return the umbrella. To protect your investment in umbrellas accept credit cards or ask for a cash deposit to cover the cost of the umbrella. Merchant accounts require an application, good credit and a fee. If you don't qualify for your own merchant account, go through a third party processor such as Paypal or Square that allows you to accept credit cards through a smartphone reader. That works for a customer who doesn't carry her credit cards with her, allowing her to pay through the phone app.
Buy the Umbrellas
Many beach umbrellas have a pointed end to stick in the sand rather than in an umbrella stand. There are also beach umbrellas that clip onto a chair. Whichever kinds you decide to specialize in, you'll need to obtain the umbrellas from a wholesaler. You may need to provide your sales tax license number to get the wholesale price. After the umbrellas arrive stencil the name of your beach rental business on the umbrellas as well as your contact information. That prevents some theft but it also is a marketing tactic. Potential customers can tweet you or leave a Facebook message on your social media site to reserve their umbrella before they get into the car.
Go Social
Set up a social media site. If you use Facebook, include photos of the different types of umbrellas, the beaches where you rent the umbrellas, and snapshots of people using your umbrellas.
Choose Your Beach
Beaches by hotels and resorts are a better location than beaches frequented by surfers or locals. Surfers are interested in being in the water, not on the sand. Locals will bring their own umbrellas. Travelers and vacationers are the primary market for umbrellas, since umbrellas may be too bulky for them to bring their own from home.
Spread the Word
If vacationers don't know about your umbrellas, they won't rent them. Drop off fliers at non-competing shops. Tell the concierge or front desk staff at nearby hotels about your umbrellas. Some hotels have a brochure rack filled with information about local sites, events and things to do. Ask if you can include your fliers in the rack. Hire teenagers to hand out your fliers to beach goers. Be careful that the fliers don't end up as litter, or you could be fined.
More Instruction:
Step 1
Register for a Doing Business As (DBA) name in the beach's city. Your DBA license lets you use a name other than your own for your umbrella rental business. DBA licenses are typically available at the city's county clerk office. Present photo identification and fill out the form with your name, contact information, the name of your rental business and the type of business. A DBA license typically costs less than $50 as of 2011.
Step 2
Obtain a business license from the city's courthouse or county clerk office. Most cities require business owners to register their business for regulatory and tax reasons. Once you obtain the form, fill it out with your business name, contact information and the proposed location for your umbrella rental stand. The cost for a business license varies by city. Some licenses may cost as little as $20 or as much as $300.
Step 3
Apply for an Employer Identification Number (EIN) from the Internal Revenue Service if you plan to hire employees. Your employees will need your EIN to file their taxes at the end of the year. The EIN is free from the IRS. To apply, give the IRS your business name, your Social Security Number, the proposed business address and the type of business.
Step 4
Contact the county clerk office for the city in which the beach is located and ask about commercially zoned areas on the beach. The county clerk has maps showing the commercially zoned and residential zoned areas of the beachfront. Choose a spot in a commercially zoned area popular with beachgoers. Ask the clerk if permits are needed, in addition to your business license, to operate on the beach. If you need a permit, fill out the form and pay the fee to operate.
Step 5
Ask investors for start-up capital if you do not have the funds to start your business. To operate an umbrella rental business on the beach, you must build a stand for you or employees to operate and buy umbrellas. Umbrellas may cost a few thousand dollars initially. Approach family and friends, if possible, to invest money into your umbrella stand. Small business banks also offer start-up loans for new businesses. You can use the beach umbrellas you intend to buy as a secured asset for the loan.
Step 6
Obtain beach umbrellas from a wholesale beach supply company. Do not buy a large number of umbrellas at once. Determine the demand for your product and buy inventory as needed. Start with 10 to 20 umbrellas and increase the amount if necessary.
Step 7
Set a rental rate for your umbrellas and offer your product on the beach. Your rental rate should take into account the cost of the umbrella and your operating costs. Decide whether you want rentals to last all day or for a specific amount of time.
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