Equipment rental has long been a lucrative industry. Particularly those who serve the segment of heavy equipment stand to gain a lot. According to KPMG, the Indian rental equipment market is worth $4000-$5000 million and is rising at an estimated CAGR of over 40 per cent at a brisk pace. Equipment rental near me offers excellent info on this. With lots of activities occurring in the field of infrastructure and construction, the equipment rental market is booming. If you want to be part of that capital, here are a few steps to take:
Steps to be taken to start rental equipment business
Phase 1: Build a business plan: You have to agree about the type of equipment you are renting out. There are 2 categories: large machinery such as backhoeing, cranes, bulldozers and smaller items such as trucks and forklifts. Since there are plenty of people on the market, you need to coin a specific selling point to show how different you are from the competitors. Financial forecast and planned turnover will ably help this. They are all to be listed in the business plan.
Step 2: Obtain legal permission: All formalities for setting up a business must be completed. Completing them is critical, and having the required license to operate the company. Provide the insurance policy next to policy your assets and your liabilities. Ensure all of the assets are covered by the policies. This will prevent avoidable start-up hiccups from working in an coordinated way.
Phase 3: Place for the rental equipment business: If they are not on hire, rental companies will have to house their equipment. Care should be taken to identify places where there is ample room for secure storage of all the equipment. Besides this, it would also require space for administrative purposes. Getting office near where lots of construction activities are taking place will be a good strategy for those looking for rental companies to stay in the radar.