If you have been thinking about starting an equipment rental business, you could be onto a winner. Equipment rental is one of the most profitable businesses types to start, but you need to make sure you are doing it right from the get go. Here are a few tips that you should follow to ensure you start your equipment rental business the right way…
Study your market well
You must do as much market research as you can before you start your equipment rental business. Some niche business like FriendwithA. are already doing great. Before you even give your company a name, you have to know which equipment you should buy and who your potential customers are. You should buy equipment that you know is in high demand, also considering the brand and quality so that your business does not slow down due to unexpected faults and breakages. You can visit your local stores and rental companies of a certain product and talk to its buyers and sellers to do some market research and gather feedback. They will provide you with ideas to choose the right product for rental purpose and determine its buying cost.
Make your moves online
In this digitalized world, people are seriously bent on online businesses to avoid burdens like engaging more manpower, taking time and implementing face to face communication etc. of traditional business systems. In this way they can also make maximum area coverage for their products and secure maximum profit.
Launch a professional website
You need to have a professional website so that customers can easily get in touch with you. A professional website also gives you credibility and builds trust with your customers too.
Start with minimum investment
Avoid too much investment at the start and buy products of popular companies so that your equipment doesn’t have to sit idle at home and occupy space in the store room. It’s always wise to take time to understand public demand to choose the right brand. You can also buy second hand equipment that is in good condition if you can find any- Ebay and Facebook marketplace are great places to look for second hand goods and equipment.
Create an innovative marketing strategy
Renting is a sale in rental business. If you have an innovative marketing strategy that ensures reaching the maximum number of people in your target market, you will certainly sell more and consequently make more profit. So you will have to keep finding such strategies that can help you attract more people.
Use social media for marketing
Besides maintaining a professional website, you need to be using social media effectively. Place advertisements on popular blogs and YouTube channels to attract more people in your target market that may want to rent your equipment.
Create referral partnerships with other companies
Creating referral partnerships with your local rental companies can boost your business without spending too much on marketing. You can send a customer to your referral partner who wants to rent certain equipment that you don’t have, and the partner will simply do the same for you in the same situation. Win win!
Protect your business with written rental agreements and contracts
You must avoid any unexpected disputes with your customers because disputes may result in a financial or reputational loss. So before you enter into a contract, you have to carefully set your terms and conditions very clearly. When you deliver equipment to a customer, you need to have a deal in black and white where you and your customer stand on clear terms and conditions regarding the safety of your equipment. Make it clear when your equipment will be returned, how they will be used and what remedy can be claimed by you in case any equipment gets lost or damaged in your client’s custody.
Ensure safety of your equipment
Since your equipment is vital to run your business, you cannot mishandle your equipment. You make sure your storage space is safe and dry, and compliant with any requirements of your business insurance.
Use modern technology to monitor the business
In this age of super technology, you can also adopt custom made software solutions to run your business. Both you and your customers can be benefited if you have a booking app designed according to your business need. Your customers will be able to apply for a rent any time and you also can receive the application and make a deal instantly. You can also use a GPS tracking tool to monitor your rented equipment and thus avoid theft of your equipment. A safe online payment system would do you a big favor too.
Bring your business under insurance coverage
Since you have a rental business, you have more risks than others. You will need to find good insurance to cover the loss or any damage or theft of your equipment. Generally an equipment rental business owner has two major concerns. One is to insure his own equipment against theft or damage, and the other is to see whether the rent takers have insurance coverage to use the equipment or not.
The above tips are some of the important basics to give your business a great start. I strongly believe if you can implement all these tips together, you can gradually grow a successful rental business!