When starting and equipment rental business there are many things to keep in mind. These include researching and catering to your target market, figuring out your ideal client, and making sure you can get them what they need in the budget they want and in the easiest way possible.
Here are a few questions to ask yourself before starting an equipment rental business:
Who is your target market?
Having a firm understanding of whom your customers are is the first step in creating any successful new business. Regardless of your specialty, and whether you are dealing in trucks, trailers, or cranes, and an equipment rental business is no different from any other business in this regard. Without a firm grasp on whom you are planning to target with your new products and services, it will be hard for you to effectively market to them where they are, or provide them the services they really need.
Understanding all aspects of your client demographic will help you shape not only your business plan, but your expansion plans as well. It will ensure that you are working in the most efficient way and bringing in the clients best matched to what you have to offer. Marketing to the wrong businesses and people is not going to help you grow and will translate into a ton of wasted time, effort, money and human resources. Try to be as specific as possible and narrow down your focus in order to provide the best service possible for your clients.
What are their needs?
Perhaps there is a need that you are currently not meeting and they are currently looking elsewhere to get that need fulfilled. Is there a way that you can provide that additional service to them and become a one-stop-shop? It’s important to continually check in with them as well and make sure that their needs are being met. If you are not already meeting their needs there is going to be room for improvements and that is where the strategic expansion plans of your business need to come into play.
What are their budgets?
Knowing what your client’s average budget is will help you decide what types of equipment to keep in stock and rent out. While it may still work to say, “This is the price, take it or leave it” having a variety of equipment available to fit a range of budgets will ultimately result in happier clients and more referrals. If you can keep your big, and small, clients happy, you gain in the long run. Remember, with proper support, little clients can grow into big ones and they WILL remember you as the company that helped them when they were first starting out.
Where are they located?
Know where your clients are based and makes sure you understand the logistics of getting them the equipment they need. Make connections with transportation services companies, and offer to deliver materials to your client’s doorstep – the less work they have to do on their end the better and the more services you can offer in-house the more money you’ll make.
How are you planning to store the equipment when it is not in use?
Make sure you factor in the downtime for the equipment when it is not on-site with your clients. Are there any seasonal adverse weather conditions that you need to keep in mind? What maintenance will need to be performed on a routine basis, even when the equipment is not in use? Will it need to be stored in the off-season or be otherwise “down” for long stretches? Where should the equipment be stored so that it as accessible, and as easily transportable as possible?
Though most of clients projects may be located in the middle of major cities, is may not be practical or possible to house all your equipment nearby. Think about locating yourself slightly outside of town, near main roadways and freeways to make transportation easier and more efficient.
Starting a new equipment rental business is much like starting any other business – you need to understand your client’s needs and then cater to them. Plan to grow your business alongside your clients in order to serve them in the best way possible. With proper planning and consideration, you will be serving up the best equipment, in the most convenient way, and at the most affordable rates in no time.