Are you thinking of how to start an equipment rental business? There are a few things you need to bear in mind to be successful in the business.
Whether you will be renting out party supplies, bikes, or luxury cars, starting a rental business is work. It goes beyond just getting equipment and renting it out to people. To help you become a successful rental business entrepreneur, here are some tips for you.
Tips for Starting a Successful Equipment Rental Business
1. You need to first do your homework
Before you start a rental business, you need to first do your homework diligently. And that starts with a proper study of the market. You need to know that a bike rental by the beach will not have the same customers as one situated downtown. Because their customers are different, they will also have different needs. That is why it is important you have a full understanding of who your customers are before you even start the business at all.
A market study is, however, not rocket science. It is quite simple. Do you want to know the needs of your customers? Talk to them. For instance, if you are looking to start a rental business renting out construction equipment, local construction companies are the people you should meet. If you will be going into renting out canoes and kayaks, you will need to talk to tourists to know their needs.
Ask what type of equipment they will need – either high-end or just basic equipment. Know if they have any specific brands they will like and also how much they are willing to pay for such equipment. Ask to know if they will need any other services aside from rentals. Knowing all of these things is a great way to start off your business on good ground.
Starting a construction equipment rental business can indeed be challenging due to the substantial funding required for heavy machinery. A prudent approach is to begin with more portable equipment such as spreader bars for lifting. Other similar equipment to consider include hydraulic jacks, chain hoists, and lifting slings. Offering these items alongside spreader beam rental can provide a diverse range of solutions while easing the financial burden of acquiring larger machinery upfront. This strategy allows for gradual expansion as the business grows.
2. Know the right equipment to buy and buy only that
When you know what your customers exactly need, you need to use that to your advantage. Only buy the equipment you know they will want to rent. There is no need to buy any idle inventory that will only eat up your space and tie-down your money. It usually doesn’t help a business grow. So when starting a rental business, you need to avoid idle inventory at all costs.
Also, while buying the right equipment, make sure you don’t overspend on any equipment when your business is still at the baby stage. Buy more of the equipment you know is in demand, based on the report of your market research.
Remember, it costs more to get rid of excess unwanted equipment later than to buy more equipment.
3. Get your equipment where you can get the best deal
This is very important, especially for people just starting a rental business. At this stage of your business, you want to judiciously manage every penny that comes, and getting god deals for your equipment will help you save a lot in the long run.
Instead of blowing your money on the best and newest equipment on the market, consider your alternatives. Only buy what your customers are looking for. If they are looking for basic equipment, there is no point in investing your money buying high-end equipment. Invest your money wisely.
Also, consider buying used equipment if you think it won’t matter to your customer. That will help you save a huge amount of money on procuring equipment for your rental business.
4. Treat your equipment right
It is one thing to buy that equipment, but another thing to maintain them. Remember your business depends on the equipment, so do your best to make sure you treat them well. When your equipment is down, your business will also be going down. In case you can’t keep track of everything you can always hire construction estimating services for a professional opinion. So take care of your equipment by:
- Observing regular maintenance. Make sure you spot any problem with your equipment before your customers do.
- Quickly making any necessary repairs
- Taking care of the equipment and make them always appear new. Cosmetic fixes to your equipment can do a lot of good to your business. It helps you create a good impression with your potential customers. No one wants to rent a piece of equipment that looks old and rugged.
5. Treat your customers right
Your customers are the soul of your business. So when starting a rental business, you will need to treat both your customers and equipment well. A happy customer makes a happy and successful business.
6. Get your business in front of the right people
Having an online presence is a good and effective way to make more people see what you are doing. You will need to create a website for your business and get it online. Remember, more than70% of the search for rental services today starts from a search online. Even before your potential customers will ask people around for your services, they would have made a search online.
So if you want to start a rental business, you will need to device a means to get yourself online to win more people for your business.
7. Make sure your paperwork is in order
This is also a very important topic you should know if you are asking how to start a rental business. There will be some official steps you need to take before you kick start your rental business. Ask around to see what policies apply to your environment. These policies vary from location to location.
You may also need to get extra insurance liabilities. Remember, you will be having more of non-employees interacting with your equipment. So having good insurance to cover you and your equipment will be a wise decision you should consider.
Final Note
Above are good tips to give you an insight into how you can start a successful rental business. But don’t just read them and keep in your head. Bring them all together and make a business plan out the tips for your rental business.
No business actually succeeds without a proper business plan. Don’t forget the usual saying that any business that fails to plan is planning to fail. To know if a business idea is good enough to pursue, you might need to read this piece before launching such a business idea.
