While many people purchase tools and other items they need for work or pleasure, many are choosing to rent what they need. In doing so, they can save money and not have something setting around that they may only need to use once or twice. Because of this emerging trend, there is no better time than now to start an equipment rental business. If you want to do so, follow these tips to ensure your business is successful and grows year after year.
Study The Local Market
Like any potential business owner, you should always study your local market before beginning your equipment rental business. This is especially important if there are other similar businesses in your area, since you will want to find out what works and what doesn't for your competitors. For example, if you are wanting to rent out construction equipment such as a deck crawler by Aurand, talk to local construction companies to find out such things as what types of equipment are in high demand, how much people would be willing to pay to rent various types of equipment, and if there are additional services you could add on to your business.
Gradually Build Your Inventory
Rather than spend thousands of dollars upfront on all types of equipment, try gradually building up your inventory. By taking this approach, you'll have plenty of equipment to get started without overspending at the beginning. After all, the last thing you want starting out is a bunch of equipment setting around collecting dust and not being rented out by customers. As your business grows, you can add more equipment later on as you get a better idea of what your customers need.
Find Good Deals On Your Equipment
Since the idea is for you to make as much money as possible, make sure you shop around when looking for equipment to purchase for your business. While you of course want to offer excellent equipment to your customers, that doesn't mean you have to spend a fortune along the way. For example, you may be able to find some equipment that is slightly-used but still in excellent condition. If you do, you'll save thousands of dollars on these purchases, which will free up money that can be used in other areas of your business. Also, work closely with your local lenders to get the best financing deals on purchasing your equipment, since this can also save you thousands of dollars in interest on your loans.
Maintain Your Equipment
Once you've got your equipment and have started renting out your deck crawler by Aurand and other items, make sure you spend time properly maintaining your equipment. Since your equipment is your business, renting out poorly-maintained equipment will sink your company's reputation in a hurry. By performing regular maintenance, making sure any problems get fixed fast, and keeping your equipment looking as good as possible, your business will come to be relied on by customers more and more.
Develop A Website
Like any other business in today's modern world, your equipment rental business will need to have an online presence. Thus, be willing to invest in a professional-quality website. While you can set up a website on your own, it's probably best to invest some money into letting website pros handle this for you. By doing so, they can make sure your website not only looks great and is easy for visitors to navigate, but is also SEO-friendly and will show up at or near the top of a Google search.
Develop Partnerships
As a business owner, developing partnerships with non-competing businesses can help your business grow. For example, if you are renting out construction equipment, try developing partnerships with local real estate agencies. Since many people buy pieces of land and are planning to build new homes or businesses, creating these partnerships can pay off handsomely. By working hand-in-hand with other local businesses, you can start a referral network that can be a win-win situation for everyone.
Have Your Paperwork In Order
Just as you would need to do with any type of business, make sure you have your paperwork in order before you open your doors. Along with getting the appropriate business license and other permits, make sure you also place a premium on obtaining liability insurance for your business. If you don't, you could find yourself going out of business should a customer be injured while using equipment rented from your company.
Place A Premium On Customer Service
If you can combine reliable, affordable rental equipment with giving your customers the best service they have ever experienced, you will have a winning combination that will serve you well for many years. By making people feel welcome, having a hassle-free experience while renting, and giving them equipment at rental rates that are affordable, you can blow past your competition. Also, if you can become known as the person who can easily explain how to use various types of equipment, customers will flock to you each and every time they are in need of something.
Develop Easy-To-Understand Rental Agreements
Finally, if there is one thing you don't want happening on a regular basis, it is disputes involving the rental agreements for your equipment. Should you find yourself in constant disputes with customers, word will spread quickly and your business will be all but finished. To avoid this, always have rental agreements that are as detailed as possible, yet are still easy for your customers to understand. Also, if your customers have questions, make sure you can explain any and all aspects of the rental agreement very clearly. By emphasizing clear communication from the start, you'll be able to avoid conflicts later on.
Rev Up Your Rental Business ROI
While there are certainly many details associated with starting an equipment rental business, the good news is that more and more people are using this type of service every day. By taking care of the details and having a commitment to excellence, you can become a successful business owner renting construction equipment and heavy machinery.
