Whether you're just starting an equipment rental company or looking for ways to improve how you do business this year, it's crucial to create and constantly monitor the business plan that works best for achieving your specific goals.
There are multiple aspects to an equipment rental business plan. It should cover how you plan to make your business successful. Just a few of these include working through revenue sources, aligning with business legalities, identifying what innovative equipment you plan to offer, and more.
Starting and growing a business is hard work, and it's important to have a solid foundation. Here are a few must-haves to incorporate into your equipment rental business plan in order to rise to success.
1. Revenue sources
Identifying revenue sources is one of the most important parts of building your business plan–it's what's going to make or break it. In what ways are you going to generate income for your heavy equipment rental business? Here are just two options.
Obviously, you need a place to house the equipment you plan to rent out to contractors. If you're not sure where to set up shop, research the customer base in a particular area. Check out your competitors, as well. Will you have enough of business there to be able to grow?
Because of the constant rise in technology, you'll want to include having an online platform in your equipment rental business plan, or you'll be left in the dust. Create a plan for how you'll succeed digitally.
One thing to do is to start a website. Whether you opt for online transactions or you just want to showcase your wide array of equipment, getting onto the World Wide Web is likely to increase your bottom line. Make sure to include these major items on your website:
- Available equipment
- Contact info
- Business hours
Don't forget to optimize for Local SEO. This is a crucial part of your online presence considering your customers will most likely all be local. Learn more about Local SEO here.
2. Business legalities
You can't create an equipment rental business plan without including your plans regarding legalities, taxes, and insurance.
There are several business types you could check out. Limited liability can be a good fit when starting a small rental company. However, make sure you talk to a business mentor or accountant before making a decision.
Insurance is necessary to avoid having your business shut down by a customer who's suing you for injury or damage. The following are a few types of insurance to consider including in your plan:
- General liability
- Property insurance
- Commercial vehicle insurance
- Workers' compensation
3. Equipment maintenance
Your business plan should include an efficient maintenance and repair process that you can implement after receiving equipment back from your customers.
There may be some cases in which contractors bring back your equipment damaged or missing parts. And don't forget to plan a preventive maintenance schedule to make sure your equipment continues functioning to its full potential.
If you're just starting out and you're familiar with the equipment, performing the maintenance yourself can help you cut corners and save money. You could also consider supporting a local shop that specializes in equipment repairs, or you could hire an in-house mechanic. Keep in mind in-house mechanics may be more efficient for your business in the long run.
BONUS TIP: Be sure to keep up-to-date photos in your equipment maintenance records. Take photos before and after a piece of equipment is examined and repaired (if necessary) upon its return. This will help you determine how the machine was treated in a particular customer's care.
4. Marketing strategy
A marketing strategy is important for the growth of a company, and a brief outline of your strategy should be included in your rental equipment business plan. Here are two aspects to consider:
- Social Media
Social media platforms like Facebook and Instagram can help increase brand awareness. From there, you can post and share photos, customer stories, and blog posts you've published. This builds connection and trust with potential and current customers.
If you want to advertise your business, consider digital ads on Facebook and Google and print ads in trade magazines. If you're not sure where to get started with Facebook advertising, Boostpoint, a SaaS company associated with Equipter, can help!
5. Innovative multipurpose equipment
Don't play guessing games when it comes to buying equipment for your business. Potential investors in your business want to know that you've done your research and plan to serve your community to the best of your ability. To find out what equipment you should purchase, scope out your competition and learn what your potential customers need.
After finding out what's important to them, make sure to stress that you'll focus on quality equipment rather than quantity. It's better to have a few pieces of equipment of superior quality than a large fleet of unreliable and easily damaged machinery.
The Equipter RB4000 is a low-maintenance, innovative piece of equipment that serves contractors in roofing, general construction, and restoration across the US and in lower parts of Canada. Click the link below to find out how it can enhance how your equipment rental company does business.
Business plans for equipment rental companies are essential for attracting investors to get a kickstart on your next venture. Be sure to do your research to get a big picture view of how to create a plan unique to your vision.