Do you want to start a tool rental company from scratch? Or you need a sample tool rental business plan template? If YES, then i advice you read on. If you are looking towards starting a business that doesn’t require much stress or perhaps extensive period of training, then you should either look at opening a shop to sell stuff or start a rental business. It is one of the businesses that you can comfortably combine with other business and yet have enough time to effectively manage both businesses.
One of the businesses that you can start that is highly profitable is a tool rental business. There are countless numbers of technicians, farmers and artisans who don’t have the required capital to acquire all the tools needed to run their business but can afford to rent such tools if they can find a place to rent from.
Much more than the technicians and artisans, some organizations also rent tools to carry out a project or job because it is cost effective for them to rent as against out – rightly purchasing such tools. Ideally, people would prefer to rent tools to do a one – off job.
There are several tools that people can rent to accomplish the task they have at hand. Tools like, mower, hand drillers, heavy duty drillers, welding machines, forklifts, hand tools (pliers, spanners, screwdrivers, hammers, chisels et al), wheelbarrows, spade, rakes, sickles, power saw, filling machine, and virtually any tool that is needed to get any task done. So your responsibility is to look for such tools and ensure that you have them in your store.
Below are 7 surefire tips that will help you start your own tool rental business from the scratch and then build the business to profitability within the shortest time frame possible;
Starting a Tool Rental Company – Sample Business Plan Template
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If you want to start your own tool rental company, it is advisable to first conduct a thorough market survey before venturing into this type of business. This is important because it will enable you know whether such business is needed in the location you want to start it, the kind of tools that are in high demand and the right price to quote.
Your market survey will give you the opportunity to interview artisans, farmers and technicians to know the kind of tools they lack and how much they will be willing to pay to rent such tools if it is available for rent.
The next thing that you are expected to do when you are done with your market survey is to write a good business plan. The idea of writing a business plan is not to fulfill all righteousness as a business person but to put plans and structures in place that will help you effectively manage the business, maintain your cash flow and manage your clientele base. As a matter of fact, you can leverage on your business plan to raise start-up capital for your business.
3. Register Your Business
Since you will be dealing with both individuals and corporate organizations, it is important to register your tools rental business before opening shop. It will put your business in a position to sue any defaulter, et al. So, ensure that you approach the corporate affairs commissions of your country or the institution responsible for registering new business and get your company registered.
Note that you are expected to choose a name for the company before it can be registered. It is advisable to choose a name that clearly states the kind of business that you are into. For example a name such as Tony & Sons Tools Rental Company© is suitable for a tool rental company. Also ensure that you obtain your tax payer ID and also the necessary insurance policies.
4. Lease an Office Facility in a Good Location
When sourcing for an office facility for your tool rental company, ensure that you lease a facility that is spacious enough for you to store large numbers of tools, and a location that is easily accessible. The rule of thumb is to ensure that your business is close to the people that need your services or products.
5. Purchase Various Tools
There are several tools that people rent and it is your responsibility to find out the tools that are in high demand and stock them in your store.
Some of the tools that you are expected to have in place if you want to start your tools rental company are; mower, hand drillers, heavy duty drillers, welding machines, forklifts, hand tools (pliers, spanners, screwdrivers, hammers, chisels et al), wheelbarrows, spade, shovels, rakes, sickles, power saw, filling machine and filling machines, et al.
It is important to order for these tools from a reputable manufacturing company if you truly want tools that will last long and give you value for your money.
6. Draft Your Legal Document
One of the challenges that people who are owns rental businesses faces is defaulters; people who will keep the tools or whatever they rented longer than agreed or even abscond with such tools et al.
So, in order to prevent this from happening or minimize its occurrence, then you must talk to a lawyer to help you draft a legal document that will clearly start the terms and conditions for renting any tools and the implications for defaulting, et al.
Just ensure that anyone who want to rent your tools read and understand the document and also ensure that the sign the document before releasing your tools to them. It will help you effectively manage and grow your tool rental business.
Lastly, if you have put everything in place, then the next step is to open your shop to the public. The report you get from your market survey will help you identify areas where you can locate your target market. You attention should be how to market your business to your target market. You can also create a website to promote your tool rental business.
There you have it; the 7 surefire tips to follow if you want to start your own tools Rental Company.