Renting event equipment is truly a most excellent approach to make sure that you have…
The Equipment Leasing Association of America recently released a study that showed that around 80% of all American businesses used equipment leasing on a fairly regular basis. There are a number of excavation hire companies that also rely on vehicle leasing services for an array of vehicle types. That said the high demand for heavy equipment rentals means that starting a hire business is one of the best and possibly the most lucrative ventures today. It is also important to note that vehicle rental plays a very vital role in the success of numerous companies around the world, because it is these companies (vehicle rental) that enable smaller businesses to use heavy equipment which would otherwise cost them thousands of dollars. This is why many small and medium sized businesses prefer to create a long term relationship with a heavy vehicle rental business.
If you want to start an excavation hire business there are a number of steps involved. However, while we have outlined some of the most major steps there are numerous small steps you’ll need to take in addition to get your business off the ground.
Step no. 1: Draft a business plan
Every excavation hire business needs to have a business plan in place. This is regardless of if they are going to apply for a loan. You will need to think about what type of vehicle equipment you want to rent. For instance, very heavy equipment like backhoes and bulldozers or even smaller items like trucks and forklifts will have to be purchased or leased. Your business plan should clearly state what you intend on doing differently or what you want to do that others are currently not. You will also need to craft a few financial projections in the form of a future income statement, cash flow statement and balance sheet. This will help to give both you and investors a very good idea of what to expect when the business gets off the ground.
Step no. 2: Legal aspects of your venture
The next step once you have drawn up your business plan is to setup the legal aspects of the business. The legal aspects involve incorporating the business or even setting up a limited liability company. You’ll have to get a business license from the local government. You will then need to purchase a business owner’s policy which will cover general liability and property. You also need to make sure to always purchase an insurance policy that will cover the equipment that you rent out to clients. In the event of an accident, malfunction or some other issue your insurance company should foot the bill. This will help to prevent any unwanted disasters from hitting your fledgling business.
Step no. 3: Location a premises for your business
Once all the legal aspects have been taken care of the next step is to find a location for your rental business. You will probably need a rental property that has both a warehouse and an office space. You will need to consider the needs of your business closely and find a properly that adequately fits in with what you intend on doing.
Step no. 4: Purchase the equipment you’ll rent
The most expensive yet crucial part of your business is to purchase the equipment you’ll want to rent to customers. If you currently do not have enough money then you’ll need to get a commercial loan. The business plan you prepared above will help you a great deal with getting a loan because most lenders will want to know if your business is really worthy of their investment. When you have the money always purchase equipment manufactured by companies known for their high quality equipment. This will ensure that your equipment can easily withstand years of wear and tear. Since, this is a rental business you can bet that your equipment will be used by possibly hundreds of different operators and so a long service life is very important.
Step no. 5: Market your business
Once you have everything in place you need to start marketing your rental business. You can call businesses that need the equipment that you’re renting. These will mostly be construction services, contractors and utilities companies. You can also advertise on the television, paper and radio. To get things off the ground you’ll need to offer a promotion or some other introductory rate to attract attention.
Mark is one of the most experienced builders and contractors in Australia. He currently works on www.artconcivil.com.au the leading excavation hire services mostly to construction businesses.
License: Creative Commons image source
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