How To Start an Equipment Rental Business

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As with any other enterprise, you need to know the importance of a carefully structured business plan in order to start your equipment rental business. It should contain information about your market and your existing competitors. 

Sales strategy, marketing options, advertising and pricing of products and services are likewise some of the vital aspects you have to give serious consideration. Prior to creating that structured business plan, however, it would be best for starters to begin with a list of everything you deem important in order to commence the business, and that is what you call your Startup Plan.

  1. Market, industry and feasibility study. This is primarily important because putting up an equipment rental business in your area may not be practical in the first place. You do not want your venture to be just another tool rental outlet or construction equipment shop in your neighborhood. Conducting market, industry and feasibility research will help you validate the viability of your business and determine your chances of success.
  2. Business plan. This is where you itemize your strategies, financial analysis, products or services, marketing plans including details of your startup plan, which is expected to fall under company description. For products and services, describe what equipment you are selling or what services you are providing. Will your services include equipment repair? What benefits do your customers get by availing of your services? What will be your terms of agreement, rates and contract? These are just a few things you will need to enumerate in your business plan.
  3. Secure financial resources. How much is your startup capital? More importantly, do you even have the funds? Here you will identify if your financial resources would be coming from your own savings or would you need to borrow from family or friends. Would you consider getting business loans from financial companies or institutions?
  4. Build relationship with merchandisers. This is significant, as you will have to acquire your materials from other vendors. Equipment leasing companies will have to establish association with similar types of business and merchants who will possibly provide your supplies.
  5. Inventory list. This is where you identify the number of units you have on hand. You need to accurately know the number of supplies you have in storage, categorized as equipment for party rental, construction equipment and other tools.
  6. Location and permits. When you have obtained your location where you are putting up your business, secure all necessary permits, licenses and contracts.
  7. Staff and employees. Unless you are doing a one-man show, which is not practical for this type of business, this is another important aspect that needs your attention, as you and your people will be the ones to market your products and services.
  8. Advertise. Prior to launching, this is necessary to get your target customers flocking to your equipment rental outlet as soon as you open for business.

You may also want to consider a website plan for e-commerce. However, you can enumerate the rest of the requirements in your detailed business plan. For starters, especially if you never have had a background in entrepreneurship, it will be beneficial if you have a software application that is designed for making business plans. It includes financial projection plans and other helpful tips in starting your equipment rental business.  For more information on putting together a workable business plan, consider enrolling in an online business management program.


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