Going through the process of starting your very own business can be rather overwhelming, especially when dealing with high-powered machinery. The majority of machines used in construction require at least some sort of additional licensing in order to be safely transported and used. Furthermore, general contracting often involves a certain degree of occupational and safety risks, which only adds to the overall importance of devising a proper safety plan in case something happens. With that in mind, here are five tips you can use to successfully launch your own construction rental company.
1. Research the market
Retail businesses operate by supplying an existing demand. Market research is performed to figure out what people need; products are then manufactured and marketed in order to satisfy that need. On the other hand, most rental businesses already have the products in question and only need to find the appropriate demand. If you don’t have the necessary equipment, perform an in-depth analysis of the market to see what brands and types of equipment are in popular demand.
2. Secure the necessary funding
Both the equipment and tools used in construction work come with a hefty price tag. Heavy machinery, however, can burn a hole in your pocket the size of Manhattan. Unless you have some serious dough casually sitting in your savings account, you might want to consider looking for an outside investment. The majority of investors will provide you with the necessary funding in return for a small percent of the company. Just make sure you have a decent business plan, or you will hardly have any success grabbing the investor’s attention.
3. Buy only as much as you need
You might think that getting all the latest and greatest construction equipment manufacturers have to offer is your best course of action. That way, you will not have to worry about lacking a specific piece of equipment. However, this is simply a waste of resources and you will most likely be left with idle inventory taking up space that could potentially be used to expand the business. Consult the market research results and base you shopping decisions accordingly. You should buy new equipment only if the old one is no longer usable or if you’re generating more than enough revenue and the market is in high demand.
4. Make sure your company owns the necessary paperwork
There are dozens of formalities that come with starting a new business, but since you’re working with rentals most of the time, you will have to take care of all those additional insurance liabilities. Getting all the necessary bonds and licenses can quickly turn into a bureaucratic nightmare but once your customers see the amount of attention you place on protection, they will be more inclined to work with your company in the future and are more likely to recommend you to friends and family members.
5. Build a strong online presence
Building an online presence will allow potential customers to find your company more easily. Create a website and fill it out with the necessary contact and product information. You can also use the information you obtained from market research to support and refine your marketing efforts. If your clients are searching for top of the line products, make sure to look up to the experts who specialize in scissor lift rent, and take a leaf out of their book.
All that is left now is to create a suitable agreement with your attorney in order to avoid any potential mishaps and legal issues with the customers. Since your equipment will be rented out, make sure to check it for any structural and safety issues every time you get it back. Once your company is large enough to support its growth, then and only then should you consider expanding your business and investing in new equipment.
Written by Carolin Petterson
About the Author
Carolin Petterson is a Business Lady and contributor for number of high-class websites. She loves to share her experiences and talk about practical solutions, but her specialties are sustainability, sustainable business and green living.
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