What You Should Know About Starting Up a Rental Business

It makes no difference what you are renting, party supplies, luxury yachts, equipment, industrial surplus or bikes… the same rules apply. If you have been considering breaking into the rental business, here are some important things that you should know.

1. Study your market

You could be starting the exact same business, but even if they are separated by just a couple of miles the difference between them can be very large. For example, the bike rental by the beach will have different needs and customers than a bike rental downtown. With this in mind you want to carefully consider what the needs of your customers are before you get started. How will you do this? It’s quite simple!

The best way to get to know more about the market you will be serving is to talk to your potential customers. If you will be construction materials, call up the workers and ask them what they expect in a top-notch construction equipment rental company. Will you be renting kayaks? Talk to the local tourists and get their input.

Here are some good questions to ask:

- What kind of rentals are you looking for? Medium level or high end? Are there any specific brands in demand for their popularity or reliability?

- How much are you willing to pay for this service? It can be hard to make a guess at this very important marketing point, so don’t guess at all. Talk to your potential clients and ask what they would be happy to pay for this specific service.

- What else would be needed? As about any other supplementary services that would make this rental service a truly well-rounded option.

2. Don’t buy more, buy smarter

If you begin with smart market insights and knowledge you can rely on enlightened perspectives to guide your decisions. One of the most important decisions to make will be how much inventory to open with. Idle inventory is a waste of resources and should be avoided.

Begin with the absolute smallest amount of inventory needed to meet the market and make a profit, based on the investigations you have made into the market. Then after you get a feel for the deal, you can expand the most lucrative aspects of your business. It is far cheaper to buy more equipment to meet demands as they come then to spend on inventory that doesn’t get used.

3. Find the best deal for your equipment

Unless you have unlimited resources and are opening this business for the sheer joy of renting stuff, you will want to make sure that every penny of your investments is met with full value.

With this in mind you will do well to consider carefully where you place your money in terms of the value your rental company provides. For example, it may seem that pacing your cash on the best and brightest is the best way to go but you also have alternatives.

Are your customers looking for high value-costly rentals, or will they be perfectly happy with budget rentals? If you can include used inventory you can also save greatly. This will allow you to apply your limited resources to other areas of your business.

4. Treat your equipment right

Your business will depend on the inventory you are using. Your business will die with the inventory. For this reason, you will want to think carefully of the inventory you have and how you plan to keep it in mint conditions.

i) Regular Maintenance

Inspect, locate and repair potential problems before your customers notice!

ii) Prompt Repairs

Fix small issues right away so they don’t become larger more serious issues in the future.

iii) Cosmetic Fixes

It’s great to keep your inventory running optimally, but it is just as important to keep them looking good as well. Make sure you have a plan to keep them sharp and protected while in use.

iv) Stake your claim online

Getting your name online will make all the difference in reaching customers you may have never expected. By keeping your options available where everyone can see them, you maximize the value of each investment.

The first thing many of your customers will do when looking to rent your equipment is conduct a search into the options available to them. If your website is operational and professionals, you can expect greater amounts of business and subsequent profits.