More people are taking up hobbies and trying to build things themselves. It seems like DIY content is on the rise on all social platforms out there. Without a doubt, the DIY craze is here to stay. People are particularly interested in creating home projects. And this means it’s the perfect time to start a tool rental business. But before you jump the gun with this project, here are some things you need to know.
Have a Business Plan
Every business requires a plan. If you fail to plan for your business, you are planning to fail. This should be the first thing you do before you even register a business name or start stocking up on tools to rent.
Creating a business plan allows you to do a variety of important things. Risk assessment is one of the main reasons for creating a business plan. You need to know the strengths and shortcomings of your tool rental business.
The plan will also allow you to look at the amount of capital required to start your business. This is where you need to find out things such as how much you’ll need for rental space. You’ll also need to know the operational cost of your business too. That way, you can make projections and calculate profits. Your business plan doesn’t need to be several pages. You can create a business model canvas, which is only a single page.
Have the Right Legal Documents
If you don’t want any trouble with the authorities you’ll need to get your business registered. This allows you to get a business certificate. Some clients may ask to see a copy of this before transacting with you. Once you get your certificate and licenses it will also be easier for you to deal with the taxman as well.
Now that you’ve gotten the legal stuff out of the way, you need to find out what the market looks like. Get to know whether there’s a need for the type of tools you’d like to rent out near you. This must happen as early as possible before you launch the business.
There are several ways to find out whether your rental business is something people need. To find out how much demand there is for such a business, you will need to join a couple of social forums. Facebook groups are perfect for such research.
If you find such a business already exists, it means there’s a demand for what you have to offer. You only need to look at what they can do better. Browse through their reviews to whether clients have anything to complain about. This way, you can improve on what they have to offer.
Create a Marketing Strategy
When launching such a business, you should come up with the right strategy to get noticed. You can have the best tools and equipment, but if nobody knows you exist you will be leaving a lot of money on the table. Most people use Google when they want to buy anything. This search engine will help you know what types of tools people are searching to rent. Google can help you know the search volume for something like the pneumatic deck crawler.
You should know how to position yourself the right way by creating a website for your business. When you first set up your site, you may not rank at the top of the search engine for certain keywords. But, with an expert PPC advertising campaign, you can get an edge over your competition. Your website allows you to answer all your client’s questions in one place. You can have a listing of all the tools you are renting out, and even create a price table for each tool.
Other than a website, you will need to consider going social. Clients search for most services on social media too. Creating a Facebook, and an Instagram page will help you get more clients in your area. Additionally, these platforms will also allow you to run sponsored advertisements.
The best marketing strategy is content creation. This allows you to build a loyal audience that trusts you. Give away as much value as you can by educating people about different tools. People will always buy or rent from you when they feel you give more value and do less selling.
Know What Tools You Want to Stock
Many factors will determine the types of tools you want to stock. These include things such as capital, client’s demands, and your access to these tools. When starting, it is a good idea not to stock everything at once. Start with a few types of tools. For instance, if you’ve been creating content on how to use the pneumatic deck crawler, you should stock a few. This can help you keep an eye on the demand and frequency of renting such tools.
Pick the Right Location
Picking the right place to open up your tool rental business is critical to your success. You can find some guidance based on your market research. Look at any of the existing tool rentals and find out their exact locations. It’s never a good idea to set up a business right next to one of the same kind. Also, you need to make sure that your clients will be able to access your store with ease.
Research On How to Price
If you aren’t making a profit then you’re not in business. Do your research on how to price the tools. Find out how much money others are charging, and consider all factors before settling on a price.
Such a business can be risky to start. The tools you are renting out are far more expensive to buy compared to the cost of hiring them. Do your best to ensure you avoid big losses. You need to draft a legal agreement signed by each client. That way, you can be sure that in case anything happens to your equipment you can seek legal redress.
Wrapping Up: Taking Actionable Steps
To wrap things up, it is important for you to have a timeline of activities and when to get things done. Many people have created business plans and failed to act on their business goals. In as much as you try to do all the preparations, you need to understand that taking action is vital. There are certain things you will only get to learn once you get started. You will encounter setbacks, and you may fail a couple of times. But, the most important thing is learning fast and getting back up to do your best.