How to Start a Linen Rental Business in 10 Steps

There’s a lot that goes into a linen rental business. So, where do you start? Our helpful guide on how to start a linen rental business will cover the bases, getting you the information you need to be successful.

1. Familiarize Yourself With the Business

If this is new territory for you, you’ll want to familiarize yourself with the dos and don’ts of the business. Here are a few things to take into consideration before you get started:

• Understand your target audience – Who are you expecting to rent linen to? Think about wedding planners, event coordinators or even individuals. Once you know your intended audience, you can determine the type of linens you need and the best way to market them.


• Identify demand in the area – Research the industry. Is there a need for this type of business in the area? Contact some of the local event planners to see if they would be interested.


• Analyze the competition – What’s going to set you apart from the competition? Is it better quality linen? Lower prices? Check out the local businesses and see what they offer.

2. Understand the Pros and Cons

There are pros and cons to every decision, so be sure to check these out before you begin the real planning.

How to Start a Linen Rental Business: Pros

Linen rental businesses can be very profitable if you’re able to find a niche market and build a good reputation with the industry. Another pro is that this type of business is very low cost to start up and easy to keep running.

How to Start a Linen Rental Business: Cons

On the downside, this type of business can be very time-consuming and labor-intensive. This is because you’ll need to launder and press the linen after each use and have the need to keep track of all inventory.

3. Understand Profitability

It’s important to get a grasp on the profitability of the market when researching how to start a linen rental business. If there aren’t enough customers in that market, then the business won’t be profitable. You also have to factor in the cost of linen, costs of operating and the competition.

How Much Revenue Does a Linen Rental Business Generate?

This can widely vary depending on the size of your business, the types of linens rented and the location of your business. According to estimates in the industry, a small to medium-sized business can generate anywhere between $5,000 to $30,000 in revenue a month. This is an average. Not every business will make this in a month.

4. Start Up Costs

These will differ depending on the size of your business. If you’re on the smaller end, it could be around $5k. On the larger end, it may take somewhere around $50k to get started. Think about the costs of purchasing linen, the cost of advertising and the cost of hiring employees.

How Many Linens Do You Need to Start?

While there is no definitive answer to this question, there are sources that say a good starting point is around 200 linens minimum. This gives you a good selection to offer customers. You can always build your inventory as your business grows.

5. Write a Business Plan

Once you’re ready to get the business end of things started, you’ll want to create a business plan. This is the first step to making your linen rental dreams come true. Here are the points you’ll need to cover in this plan:

• Executive summary – Summarize your business idea, mission, target audience and financial projections.


• Company description – Describe your business in detail. Write out what you offer, what sets your business apart from the rest and include what your structure will look like.


• Market analysis – Put the marketing research you’ve done in writing. Who is your target audience? What are current marketing trends and what is in high demand in your area?


• Products and services – Describe the types of linens you will offer down to the fabric, color and quality. Are you going to offer other items such as table setting and décor as well?


• Marketing and sales – List out how you plan to market your business. Are you planning to advertise online only? What is your pricing strategy and how will you handle rentals and returns?


• Operations – Think about your day-to-day. Are you planning on renting a storefront or solely working online? How do you plan on managing inventory, tracking orders and handling customer service?


• Financial projections – What will the start up costs be? How will you finance them and what is your projected revenue and expenses? What is your plan for future growth and expansion?

6. Choose a Location

Choosing the ideal location for your linen rental business means finding a place with high population density and in close proximity to businesses that use linens such as hotels, restaurants and more. Also keep in mind that if you’re close to a competitor, it may be difficult to compete.

7. Register Your Business

Registering is essential to starting a linen rental business. You’ll need to be established as a legal entity. Here’s how to get started:

• Choose a business structure – Decide on the best business structure for your needs. Some common options include Sole Proprietorship, Partnership, Limited Liability Company (LLC) and Corporation.


• Choose a business name – Think about your business name. What’s a fun and unique name that you want to call your linen rental business?


• Register with the state – Register with the state you plan on working in. The registration process varies by state so be sure to do some research to fill out the correct forms.


• Obtain business licenses and permits – Depending on your location, you may need to obtain certain licenses and permits. Check with your local government to find out what you need.


• Obtain a tax ID number – Obtain a Tax Identification Number (TIN) from the IRS. This is how they will identify your business for tax purposes.


• Open a business bank account – Set up a separate bank account for your business. This will help you separate personal and business finances to make things easier to track.

8. Get Your Linen Rental Business Insured

It’s important to get your linen rental business insured to protect your assets and get proper liability coverage in case something goes awry. Follow these tips before obtaining insurance:

• Determine your insurance needs


• Shop around


• Choose the right coverage


• Review and update your coverage regularly

9. Build Up Your Inventory

Find the linen, materials and more that you’d like to rent out and compare with other companies to find the best option to start out with. If you have to start small, that’s better than compromising quality. You can always grow your inventory later as your business starts to expand.

10. Promote Your Linen Rental Business

An important aspect in starting a linen rental business is marketing. You need to promote your business correctly to ensure the target audience you want to reach sees you and knows exactly what you have to offer. Here are some great ways to get started:

• Make a website – This will include all of the information people need about your services like branding, location, costs, forms and more.


• Develop a strong social media following – Create posts to keep your followers engaged with your business and updated on any new information like new linen, events coming up and more.


• Get involved – If there are local events and wedding vendor fairs, sign up. Here you can meet wedding/event planners, brides and more people that will want to utilize your services.


• Use word-of-mouth marketing – Provide excellent customer service and provide incentives to your customers to leave reviews, getting your business more coverage.