Equipment rental as a business strategy

During inventory tracking, you may want to sell unused and even underused machinery. Instead, convert these liabilities into assets. Make them pay for themselves by diversifying as a rental team. In an economy where it is cheaper to borrow than to buy your own supplies, this could be a worthwhile endeavor.

Borrow, don’t buy

Rental equipment has become a service industry as more companies are choosing to pay small monthly charges rather than a significantly larger one-time purchase. The first allows them to show a monthly income higher than the investment return study required by the second. Renting a machine and using existing labor is also cheaper than finding a contractor who has his own machinery.

Rental basics

Aside from the legal paperwork, a good equipment rental company should have a solid business plan that includes an accessible location, regular maintenance, and an attractive marketing strategy:

The company must be registered with the best commercial office and the equipment must comply with safety and industry standards.

Most equipment should be stored in a large, secure warehouse that is accessible to the perceived market, especially if you plan to offer delivery and collection services.

As is customary with good asset management, make sure machines are always in good working order.

Membership in the American Rental Association is always an advantage, offering a broader network of business opportunities and a broader market.

Get a head start

With many companies offering rental equipment, it is important that yours stand out. Offer customers varied selections in terms of equipment packages, additional services, or payment options:

Group the devices that are normally used for the same project into a single set. Landscaping, for example, would require lawn mowers, weed trimmers, stump grinders, and the like.

Ensure the safety and quality of your rental equipment. Once you have the capital for it, provide newer tools, especially those that meet the latest safety regulations and standards.

· Expand professional work and training. Highlight the skills of your workforce not only to get the job done, but also to teach it to others.

· Formulate payment plans that are more flexible. Invoice by period, rental equipment, project or according to your selected package.

The possibilities with equipment rental are endless. Not only is it an inexpensive alternative for the homeowner, it is also an outsourcing and networking opportunity for construction companies. So reevaluate your inventory. There could be even more rental equipment to collect.