If you are looking to start a business that does not require a lot of stress or perhaps an extended period of training, then you should consider opening a buy-to-sell or starting a rental business. It is one of the companies that you can comfortably combine with other companies and yet you have enough time to manage both companies effectively.
One of the businesses you can start that is highly profitable is a tool rental business. There are countless technicians, farmers, and craftspeople who do not have the capital required to acquire all the tools needed to run their business, but who can afford to rent such tools if they can find a place to rent.
Much more than technicians and craftsmen, some organizations also rent tools to carry out a project or job because it is profitable for them to rent rather than properly purchase such tools. Ideally, people would prefer to rent tools to do a unique job.
There are various tools that people can rent to accomplish the task at hand. Tools such as lawnmowers, hand drills, heavy-duty drills, welding machines, forklift trucks, hand tools (pliers, wrenches, screwdrivers, hammers, chisels, and others), wheelbarrows, spades, rakes, sickles, electric saws, filling machines, and virtually any tool needed to perform any task. Therefore, it is your responsibility to look for such tools and make sure you have them in your store.
Below are 7 foolproof tips that will help you start your own tool rental business from scratch and then build the business to profitability in the shortest period;
Starting a Tool Rental Business – Sample Business Plan Template
1. Do your market research
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 let you know if that business is needed where you want to start it, the type of tools that are in high demand, and the right price to quote.
Your market survey will allow you to interview artisans, farmers, and technicians to find out what kind of tools they lack and how much they will be willing to pay to rent those tools if it is available for rent.
2. Write your business plan
The next thing you’re expected to do when you’re done with your market survey is written a good business plan. The idea of writing a business plan is not to be righteous as a business person, but rather to establish plans and structures that help you effectively run the business, maintain your cash flow, and manage your customer base. You can leverage your business plan to raise startup capital for your business.
3. Register your business
Since you will be dealing with individuals and corporate organizations, it is important to register your tool rental business before you open a shop. It will put your business in a position to sue any defaulters, et al. Therefore, make sure to approach the corporate affairs commissions in your country or the institution responsible for registering new businesses and registering your company.
Please note that you are expected to choose a business name before you can register. It is advisable to choose a name that indicates the type of business you are involved in. For example, a name like Tony Sons Tools Rental Company © is appropriate for a tool rental company. Also, be sure to get your taxpayer ID and any necessary insurance policies as well.
4. Rent an office facility in a good location
When looking for an office for your tool rental company, be sure to lease a facility that is spacious enough for you to store a large number of tools and an easily accessible location. The general rule of thumb is to make sure your business is close to the people who need your services or products.
5. Buy multiple tools
There are various tools that people rent and it is your responsibility to find out the tools that are in high demand and stock them in your shop.
Some of the tools that you are expected to have installed if you want to start your tool rental business are; lawnmowers, hand drills, heavy-duty drills, welding machines, forklifts, hand tools (pliers, wrenches, screwdrivers, hammers, chisels, and others), wheelbarrows, spades, shovels, rakes, sickles, electric saws, filling machines, and filling machines, etc to the.
It is important to order these tools from a reputable manufacturing company if you want tools that will last longer and give you value for your money.
6. Draft Your legal document
One of the challenges that owners of rental companies face are defaulters; people who will keep the tools or what they rented for longer than agreed or even absconded with such tools and others.
So, to prevent this from happening or minimize its occurrence, you should talk to a lawyer to help you draft a legal document that will begin the terms and conditions for renting any tools and the implications for non-compliance, et al.
Just make sure anyone who wants to rent your tools reads and understands the document and also make sure you sign the document before you give them your tools. It will help you manage and grow your tool rental business effectively.
7. Promote and market your business
Finally, if you have everything in place, then the next step is to open your store to the public. The report you get from your market survey will help you identify areas where you can locate your target market. Your focus should be on 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 foolproof tips to follow if you want to start your own tools rental company.