Thinking of Buying a Party Plan Business in Australia? Here Are 3 Vital Questions to Ask

The Australian party supply rental industry, which underpins party plan businesses, generated $494 million in revenue in 2024, with profit margins averaging 11.0% . The sector employs 2,457 people across 855 enterprises .

Revenue fell at 2.4% annually over the past five years due to COVID-19 restrictions, but a recovery is underway. The industry is forecast to grow at 3.0% annually through 2029, reaching $578.4 million. Demand will be supported by rising discretionary incomes, increasing marriage numbers, and business confidence, although competition from online retailers and event trends such as micro-weddings remain challenges.

1. Is the Business Financially Resilient in a Volatile Market?

Why It Matters

Party plan businesses face strong seasonal and economic fluctuations. Demand collapsed during COVID-19, showing the industry’s vulnerability to external shocks. Profitability depends on efficient stock rotation, premium rental offerings, and the ability to manage fixed costs during quieter periods.

What to Check

• Profit margins – Benchmark against the industry average of 11.0%.
  
  

• Revenue sources – Assess balance between household parties, corporate events, and weddings.
  
  

• Cost exposure – Review wages (34.5% of revenue) and purchases (16% of revenue).
  
  

• Cash flow resilience – Evaluate how the business handles downturns and seasonality.
  
  

2. Does the Client Base Provide Sustainable Demand?

Why It Matters

Households account for more than half of revenue, while corporate events, weddings, and community functions make up the balance. Businesses with strong wedding and corporate client bases tend to outperform, as these segments spend more on premium products such as marquees, stages, and lighting.

What to Check

• Client mix – Identify reliance on weddings, corporate functions, or household parties.
  
  

• Geographic presence – NSW, VIC, and QLD host nearly 80% of enterprises, reflecting stronger demand in populous states.
  
  

• Reputation – Review standing with households, event organisers, and corporate clients.
  
  

• Service range – Consider if the business offers related services like event management or delivery.
  
  

3. Is the Business Positioned for Industry Trends and Competition?

Why It Matters

Consumer behaviour is shifting toward premiumisation and online convenience. Customers increasingly rent luxury items for weddings and milestone events, while online retailers encourage direct purchasing of lower-cost supplies. Party plan businesses that adapt with eco-friendly, premium, or tech-enabled offerings are best placed for growth.

What to Check

• Product range – Confirm mix across furniture (22.7% of revenue), marquees (19.2%), tableware (15.2%), and lighting and sound (11.9%).
  
  

• Technology adoption – Review ecommerce platforms, booking systems, and mobile POS capabilities.
  
  

• Sustainability – Assess practices around eco-friendly supplies and safe marquee standards.
  
  

• Competitive position – Benchmark against major operators like Harry the Hirer (15.3% market share).
  
  

Ready to Invest in a Thriving Party Plan Business?

With weddings, milestone events, and corporate functions driving steady demand, party plan businesses remain attractive investments in Australia.

Success will depend on cost control, strong client relationships, and alignment with premium, sustainable, and tech-driven trends.

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