How to Start Your Own Party Goods Business

A party goods business is a great option for many would-be entrepreneurs.  It does not involve a huge start-up cost and can bring in a good profit.  In order to be successful, you must be a thoughtful and creative business owner and find a way to reach out to your ideal customer base.

1. Take care of the official business.  This includes obtaining a business license by registering with your Secretary of State.  The business licensing process varies greatly between jurisdictions, so check with your state licensing board to learn about the process.  If you plan to incorporate or hire employees, you will also need to contact the IRS to obtain a federal tax ID number.  Obtain a vendors license from your county and open a business checking account with your bank.  If you need to secure business funding, you should be prepared to draft a business plan and apply for a small business loan through your bank.


2. Plan your business.  Consider what types of products and services you will offer.  Decide whether you want to sell items on consignment, or whether you will purchase your inventory from wholesalers and then offer them to sale to the public.  Another option could be to open an established party supply franchise, such as Party City.  The type of business you choose to run depends on your own personal ideas and desires.


3. Decide the theme or focus of your store.  You might want to run a general party store that caters to all types of parties and sell basic party supplies.  These include balloons, decorations, plates and plasticwear, pinatas and invitations.  Depending on your plans, you might want to focus your store on a specific party niche, such as wedding receptions in which you will cater exclusively to wedding events and carry all of the supplies one will need when planning a wedding.


4. Find a location for your business.  It is a good idea to open your store in a high-traffic, well-established area such as a shoppers plaza or mall.  Determine whether you want to rent or purchase your storefront.  A commercial real estate agent can be a great help in this process.  They can help you locate available property listings and view spaces that might be suitable for your business.


5. Advertise your business.  Depending on your advertising budget, you might want to run a commercial on TV, run ads in the local newspaper.  Post signs leading up to your big day.  Consider hosting a grand opening party with food and drinks to draw customers in the door.  Great customer service is the best way to ensure that your customers keep coming back.