Business plan for renting special equipment

Business plan

Construction is one of the most promising industries. Construction often requires special equipment to perform heavy general construction work, such as excavators, dump trucks, bulldozers.

Construction companies, of course, have their own special equipment. However, it is often more profitable for them to hire technicians with payment for the hours worked.

Thus, construction companies form the main demand for special equipment rental services, so this business has fairly broad prospects.

But for its successful opening and future development, it is necessary to draw up a business plan for renting special equipment.

How to start such a business of providing special equipment rental services?

First of all, to open a business for renting special equipment, you need to register an enterprise.

Then you need to register with the tax office and find a good insurance company to insure expensive equipment.

Business plan for renting special equipment: finding customers

Before opening such a business, you need to conduct a thorough analysis of future customers.

It is necessary to take care of accounting and accumulation of the client base of companies in need of special equipment. You can search the Internet or newspaper ads in search of businesses in need of this kind of service.

The main thing is to provide the business, after opening, with an uninterrupted flow of customers so that the company’s efficiency and profitability increase.

What equipment should you focus on buying?

The main criterion for choosing equipment for your fleet is efficiency. The main thing here is that for less money there is an opportunity to earn more profit.

To achieve this, a number of factors must be taken into account:

  • the equipment you buy should be the most versatile — it should be suitable for a wide range of customers,
  • in addition, it is necessary to purchase only the equipment that your future customers already use or plan to use.

It is conditionally possible to divide the technique into two types:

— often used: excavator, bulldozer, crane, dump truck.
This is a technique that will often be used and, as a result, quickly pay for itself.
– highly specialized equipment: installations with a hydraulic system, forklifts.
It makes sense to buy such equipment for a specific client.

Special equipment rental business plan: recruitment

In order to deliver the maximum benefit to the tenant, it would be better to send a professionally trained driver along with special equipment.
You also need to take care of hiring a manager and dispatcher:

  • the first will work with clients, sign contracts,
  • the second is to control the equipment itself on the territory of the customer.
The financial component of this business

Initial costs:

— purchase of specialized equipment — from 2 million dollars per unit;
— equipment insurance — from 40 thousand dollars a year;
— registration of all equipment — about 8 thousand;
— the driver’s salary — about 22 thousand per month;
— fuel — from 50 thousand per month;

The enterprise, after successful opening and development, will bring good profit. 10-15 thousand dollars of net income per unit of equipment will be received per day.