Today, in connection with the active carrying out of repair and construction works, the rental of necessary tools for this is again becoming popular in Russia. For many citizens, this can be quite convenient.
Not everyone will buy expensive tools in order to make repairs in one apartment. It is much cheaper to rent them by paying for daily use.
In addition to professional and household tools, you can rent petrol, vibro-devices, parquet grinders. In general, renting construction equipment can bring considerable income. The organization of this type of activity will be considered in more detail below.
Business Plan: Tool Rental
When organizing any business, everything should be carefully thought out and calculated. This case is no exception. To implement the idea, you need to properly draw up a business plan. Tool rental is not as simple as it may seem.
The documents should describe all the main aspects of this field of activity. It is also necessary to analyze the main problems that may arise when opening a specified business, and determine the main ways to solve them. This will be described later.
Choice of premises
An individual approach is required here. The room where your tool rental will be located can be about 20 square meters in any residential area of the city. An ideal place would be a small corner in an existing store to make it easy to access by car.
Not every customer will drag 20-25 kilograms of rental equipment. If the store is located on the busy side of a street or highway, you need to make an office window case well so that it attracts the attention of consumers from afar.
Staff recruitment
In this case, you need such specialists:
- Master repair of units and tools.
- Receiver of equipment. He may be responsible for concluding contracts and engage in financial accounting.
- Accountant.
- Lawyer (if the tool is not returned for a long time).
Advertising
This is an integral part of business development, which reflects a business plan. Tool rental should begin with active advertising of the company. You can post your ad in local newspapers or hand out flyers.
Item Hours
Based on the experience of other entrepreneurs, the optimal mode will be from 09.00 to 19.00 without a break. The day off is Sunday.
Determine what can be rented
The list of the main most popular tools includes the following:
- Devices of a rotational nature - a jackhammer, a drill, a wrench, etc.
- Grinding and cutting tools - saws, grinding machines, etc.
- Welding equipment and fixtures.
- Mounting and compressor devices.
- Construction tools - concrete mixer, heat gun, etc.
It should be remembered that the rental will be in demand if you offer a large assortment of goods, preferably about 30 items. Also, rental of construction equipment greatly diversifies the list of services. It must be of a professional type in order to be in demand by serious construction crews. It is better to take care of this long before you open a rental point. It is necessary to decide where the purchase of equipment and tools will be made.Get them in places where they will provide warranty documents and a discount when buying in bulk.
Potential consumers
Typically, customers fall into three main categories:
- Builders who are engaged in private repairs. The rental of tools from them is included in the estimated cost of the work. This category of clients is subject to mandatory safety training and the use of electrical equipment, because not all builders in practice turn out to be professionals, they can easily break rented goods.
- Private individuals. This is the most problematic and frequently encountered category of tenants. They should be given a lot of attention, and a detailed briefing on all issues and a detailed study of the client’s personality should be carried out.
- Legal entities, organizations. This category of customers usually fails their power tools. It’s easy for a manager to work with such clients. A detailed briefing is not needed, experience is available.
We consider the presence of risk factors
Be sure to include this item in your business plan. Tool rental implies the following main risk factors:
- It often happens that the tenants of the tool or equipment may be people who have absolutely no experience with them. So, it is very likely to get a broken device back, or, even worse, the client can cripple himself with careless use. To avoid these troubles, managers should provide detailed instruction on the use of tools and equipment. This is important.
- At all rental points there should be stands with instructions and operating rules for various tools and equipment, as well as with regulatory documents on safety measures when using them. It is better to familiarize with these consumer materials for signature.
- When concluding a lease, the client must provide his passport, from which it is better to take a photocopy so that in case of failure to fulfill the agreed obligations it would be possible to find an unscrupulous tenant without any problems. Usually rental points do not require a deposit, but it is better to insure yourself and still take 100% of the cost of equipment. However, not every person carries this amount. After all, for example, on average, an ordinary hammer drill costs about $ 1,000. Then, in this case, they are limited only to insurance of the instruments, as well as to the identification of the tenant.
When to expect returns on investments?
As a rule, rental points provide their services on a per-day basis. The average rental price for one unit of equipment for one day is about 9-10% of its value. Typically, customers can take at least two types of any tool per day. Simple builders with small amounts of work do this. But large teams can rent immediately ten units of a tool for a period of more than a week. The average payback period of one device is about six months.
It is better to open this business in the summer, more precisely, even from the beginning of May to the end of October. At this time, about five to seven customers can visit a tool rental just opened in one day. Toward the end of the year, demand will decline significantly. As a result of this, there will be only two to three customers daily.
The average cost of renting an instrument per day will be about 500-600 rubles. As experience accumulates in the coming year, the tool rental business will bring its owners 15 contracts a day worth about 1 thousand rubles each.
You can also simultaneously sell supplies to various devices, freeing the client from going to the store. It will be convenient for the tenant to purchase dowels, drills and much more right at the rental point of the instrument, and for you this will become an additional source of income.
Tip
If within half a year from the moment of opening this business the average monthly income of a rental point will be below one and a half thousand dollars, think about whether it is worth continuing to do this business. In this case, the tools can be sold for 50% of the cost, as well as to sell stands and tables, gaining about 25% of the initial investment.
But let's not talk about sad things. Renting tools can bring a fairly stable income, if everything is well planned and carefully treated by clients, trying to feel those who are ready to cheat. It would be nice to know about the device tools, because sometimes you have to hand them in for up to 20 days a month, and you need to be prepared for everything. If during the first year of work the entrepreneur will have enough money to issue salaries and rent premises, then we can assume that the business was a success, profit will soon go. It remains to wait quite a bit, you are on the right track.
