Are you planning to launch a business that rents out equipment? If so, you can use the comprehensive sample business plan template and feasibility report below for FREE. Okay, so we’ve thought of every prerequisite for launching a construction equipment rental company.

We went a step further by researching and creating a sample marketing plan template for heavy equipment rentals that is supported by workable guerrilla marketing concepts. So let’s move on to the section on business planning.

Why Open a Rental Company for Construction Equipment?

Nearly 80% of businesses in the nation rent or lease equipment on a daily basis, according to a facts report from the Equipment Leasing Association of America, making the business extremely lucrative for anyone looking to start one.

Many businesses rent equipment because they don’t think it’s necessary or worthwhile to buy heavy equipment for use, either because of budgetary restrictions or because buying the equipment would be a waste of money compared to leasing it.

Due to the capital-intensive nature of this business, you would require the advice of a professional who is knowledgeable in the field and who would analyze your company in relation to your location to assist you in deciding whether starting the business would be a wise decision.

If the odds are in your favor, the consultant will assist in developing strategies that will give your company a competitive advantage over other businesses in the same region or even same industry. You would need to write a business plan in addition to hiring a business consultant to help you decide whether starting the business is worthwhile.

Sample Business Plan For Equipment Rental Company Pdf

Sample Business Plan For Equipment Rental Company Pdf
  1. Industry Snapshot

According to IBIS World, the equipment rental industry has a number of downstream companies or industries as its clients, including railcars, airplanes, ships, and drilling equipment. This industry generates $38 billion in revenue annually, with a 4.8% projected growth rate from 2011 to 2015. In the United States of America, there are more than 18,000 equipment rental companies that employ more than 78,000 people.

As fewer businesses rented out equipment during the previous economic downturn, industry revenue fell. However, statistics show that from 2016 to 2022, the downstream sector will dominate the market. Additionally, it is stated that this optimistic forecast will benefit the construction and transportation sectors over the

According to the industry’s 2016 revenue, the four largest players accounted for close to 20.2% of total revenue; other players in the industry operated in specialized markets or in dispersed geographical areas, creating a highly fragmented market for heavy equipment rentals. However, as business has slowed in the transportation and construction sectors, many small players have left the market.

The market for renting construction equipment was estimated to be worth over $4 billion globally in 2014, and it is predicted that market will surpass $84 billion by 2022. This is because construction activity increased globally, particularly as governments made investments in developing nations.

  1. Executive Summary 

The standard and go-to equipment rental company, Tack Rentals (TR), is based in Atlanta, Georgia, and plans to rent its inventory to both individuals and companies. We also plan to distribute some of the major equipment manufacturing companies across the United States of America and sell some of our own equipment.

By 2025, our company’s vision is to rank among the top 10 equipment rental companies nationwide and to become the go-to provider of equipment rentals in Atlanta. We intend to make sure that we create the best business structure in order to ensure that we realize the following vision and objectives.

Our equipment rental company is strategically located at Peachtree Street, NE in Atlanta, making it easy for our many customers to find us and inquire about, purchase, or rent from us. Additionally, our online presence makes it very simple for people who enjoy shopping online to find us because we not only rank highly on many search engines, but also quickly respond to any online inquiries.

Because we buy this equipment with our customers in mind and because we want the equipment they receive from us to perform its tasks effectively, it is of the highest quality and is made to last for as long as possible.

Our management team is the best that can be found because we looked carefully for people who not only understood the industry but also shared our values and were prepared to put in the necessary effort to see that we attained our goals.

Our customer service representatives are well-versed in market trends and have received training to comprehend client needs and make sure they are met. Our knowledgeable customer care representatives promptly respond to all complaints and find solutions.

  1. Products and Services We Offer

The target market is where Tack Rentals (TR) plans to offer a wide range of services to its various clients. Our specialty makes it very simple for us to run the only equipment rental company in Atlanta, Georgia.

But rather than just offering our clients our core services, we plan to expand our offerings in order to draw in more clients and generate additional revenue streams. Our goal is to maximize our financial gains while remaining within the bounds of the law in the United States of America.

Consequently, some of the services and goods we plan to provide include;

  • rentals of large machinery like backhoes, trenchers, bulldozers, and excavators
  • sales of tillers, augers, and chainsaws
  • distributor for a number of manufacturers of equipment
  • device repair
  • training advisory and consulting services
Sample Business Plan For Equipment Rental Company Pdf
  1. A statement of our mission and vision

By 2025, we want to rank among the top 10 equipment rental companies in the United States and be the only one renting out equipment in Atlanta.
We intend to carve out a niche for ourselves in the industry in which we operate in order to have little to no competition and to achieve our goals and objectives. As a business, we also intend to develop and grow until we are well-known across the United States of America.

Our Corporate Structure

Since we know that having the proper business structure will put us on the right path to success as an organization, having the right business structure is extremely important to us as a company. In order to achieve our vision of moving from where we are to where we want to be, we would only recruit and hire the best employees.

We are aware of how crucial it is to have a management team that not only comprehends the organization’s core values but also has the necessary skills and knowledge to help the business reach its targets. All of our employees will receive competitive pay, and we’ll make sure they’re properly trained so they can handle the various responsibilities that come with working with our various sales and product lines.

In addition to improving their skills and productivity, the training would also benefit the company as a whole. Consequently, the organizational structure that Tack Rentals (TR) plans to create is listed below.

  • Executive Officers in the following departments: Chief Executive Officer, Rentals and Leasing Manager, Human Resources and Admin Manager, Purchasing Manager, Marketing Executives, Accountants, and Customer Executive Officers.
  • Drivers of trucks
  • Cleaner security guard
  1. Job Responsibilities and Roles

Principal Executive

  • makes corporate strategic decisions.
  • Analyzes business policies, makes improvements, and changes ineffective tactics
  • Meet with influential clients on the company’s behalf

Rentals and Leasing Manager

  • in charge of overseeing the documentation for all equipment that customers rent
  • examines the state of all incoming and outgoing equipment
  • ensures that equipment is purchased in accordance with industry trends by coordinating with the purchasing and maintenance managers.

Admin Manager and Human Resources

  • finds and hires the most qualified candidates for the company’s open positions.
  • in charge of the welfare and training of employees
  • performs routine performance evaluations of the staff on behalf of the business

Maintenance Supervisor

  • examines the quality of new machinery and equipment
  • performs minor repairs on malfunctioning equipment for the organization
  • collaborates with others to repair customers’ equipment

Shopping Manager

  • sources for reputable suppliers and vendors acting on the organization’s behalf
  • compares equipment quotes to make sure the business receives the best deal.
  • ensures that the appropriate funds are transferred for the appropriate equipment by coordinating with the accountant

marketing managers

  • carries out a thorough analysis of the market to find market entry strategies
  • carries out individual marketing for the business
  • examines and dispenses with ineffective marketing strategies

Accountants

  • For Tack Rentals (TR), prepares all accounting and financial reports. Charged with allocating funds for the equipment purchase
  • prepares a tax report to be submitted to the appropriate tax authorities.

Executive Officers for Customers

  • possess up-to-date knowledge of Tack Rentals and the broader equipment rental sector (TR)
  • responds to customer questions and complaints, making sure they are quickly resolved.
  • maintains and updates a correct customer database on behalf of the business.

Drivers of trucks

  • Ensures that the equipment reaches its destination in a timely manner Inspects the equipment’s offloading and onloading
  • performs minor repairs on the truck

Security Officer

  • Make sure the location is always locked up.
  • examines incoming and outgoing equipment, making sure that all paperwork is in order.
  • observes the security cameras to see if anything is off.

Cleaner

  • Make sure the workplace is kept tidy before and after work hours.
  • Make sure the equipment store is clean so that dirt and grease don’t accumulate there.
  • Perform any additional tasks that the admin manager may assign.
Sample Business Plan For Equipment Rental Company Pdf
  1. SWOT evaluation

The SWOT (Strength, Weakness, Opportunities, and Threats) analysis is a common tool for assessing a company’s chances of surviving. It is a crucial tool that the company uses to understand and carry out the best decisions on the organization’s behalf.

We engaged a reputable business consultant in Atlanta to conduct a thorough analysis of our chances in the equipment rental industry. This consultant is well-versed in the industry and would evaluate our strengths and opportunities to see if they outweighed our threats and weaknesses.

The outcome of the SWOT analysis performed on behalf of Tack Rentals (TR) is shown below;

  • Strengths

We have a number of advantages, one of which is that we have competent employees who understand how to deal with customers and foresee their needs, which is what our clients appreciate most about us. One of our strengths is that people can find us online and that we actually respond to their questions and requests.

Atlantans are familiar with our brand, which has increased our customer base. Finally, the fact that our CEO, Mr. Rocha Taylor, has over 10 years of experience working in the equipment rental sector is a huge asset to the company.

  • Weaknesses

The fact that there are so many companies offering equipment rentals is a major weakness for us because it means we will need to work harder to gain a significant portion of the already crowded target market. But we have plans in place that will help us leave a lasting impression on the public.

  • Opportunities

The businesses that are interested in renting our equipment on a long-term basis will be the source of the opportunities that abound for us in this sector, increasing our revenue. Many people are also looking for advice on what equipment is best to use and whether they should buy or rent; we plan to take full advantage of these opportunities.

  • Threats

The threats we will probably encounter in this market come from the entry of new competitors who may be trying to take a piece of our target market by providing lower prices than what we were. Another danger we could encounter is a downturn in the economy, which would impact how often people would borrow equipment from us.

However, every company is aware that threats are likely to arise both during startup and operations, and as a serious company, we are fully equipped to handle any threats.

  1. MARKET ANALYSIS
  • Trends in the market

Due to the fact that many people and businesses need the use of heavy machinery to complete specific tasks, but do not want to buy or have the money to buy such equipment, the equipment rental industry has always been in demand.

Additionally, some heavy equipment is only used sporadically by the end users, so renting the equipment from rental companies is the better option because there is no need to waste money buying items that will only be used occasionally. However, anyone looking to start a business in this industry must make sure they come up with creative ways to make money and stay ahead of the competition.

These days, heavy and light equipment sales are a part of what equipment rental companies do in addition to renting out equipment. Some of this heavy machinery is also distributed by others for equipment manufacturing companies. This is being done so they can capture a sizable portion of the target market and continue to bring in money to maintain a sound financial position.

For equipment rental businesses, the use of the internet has made things quite simple, as the majority have created websites with Search Engine Optimization (SEO) so that they could be among the top searches for customers who searched for equipment rental companies online.

The practice of using online directories or paying Google to appear in various forums, websites, and blogs that sign up for Google’s Adsense is another trend. In addition to this, owners of this type of business constantly network with manufacturing firms and other industry stakeholders to aid in raising awareness of them.

  1. Our intended audience

Since a wide range of people rent equipment for a variety of reasons, we are unable to limit who can become a customer because of the size of our target market in Atlanta, Georgia. Along with having a lot of potential clients, we are strategically located in Atlanta and have also selected a number of other locations to spread the word about Tack Rentals (TR).

But in order to help us understand our target market better, we’ve conducted a market study that will not only help us understand their needs but also show us what they might be expecting from us. According to our market research, we are in the equipment rental business to serve the following demographic and industry:

  • Construction, agriculture, mining, aviation, forestry, and businesses that deal with medical equipment are just a few of the industries represented.
  • Waterways\sRailroads
  • A tugboat
  • Customers who typically rent heavy and light equipment for a variety of purposes include households and other customers

Our edge over the competition

Every company that wants to succeed is aware that there will likely be rivals, so it makes sense for them to develop competitive strategies that will give them an advantage over their rivals, whether they are in the same region or across the entire industry. Due to this, Tack Rentals (TR) has a number of competitive strategies that it plans to use against its industry rivals.

We fully intend to implement several strategies to ensure that we achieve this objective while maintaining a healthy bottom line. Our goal is to rank among the top ten equipment rentals in the United States of America and be the only exclusive go-to equipment rental company in Atlanta, Georgia.

Our various pieces of high-quality equipment won’t cause any problems for our customers once they are rented out. We make sure that our equipment is thoroughly inspected before and after use by our highly qualified maintenance team in addition to stocking only the best equipment.

When leasing our equipment, our customers will have the option of working with our support staff. This will ensure that any problems that arise during use of the equipment are not only quickly fixed but also accurately recorded for use by the business in the future.

Sample Business Plan For Equipment Rental Company Pdf
  1. MARKETING AND SALES STRATEGY

Sources of Income

Tack Rentals (TR) is a well-known business in Atlanta, Georgia, whose goal is to provide a range of services to its clients based in its intended market. We want to provide our clients with a number of specialized services that will prevent them from using our rivals’ services while also generating income for us from a number of different sources.

As a result, Tack Rentals (TR) will make money by providing the following services:

  • rentals of large machinery like backhoes, trenchers, bulldozers, and excavators
  • sales of tillers, augers, and chainsaws
  • distributor for a number of manufacturers of equipment
  • device repair
  • training advisory and consulting services
  1. Sales Prediction

As long as most American businesses need to lease one or more pieces of equipment every day, the equipment rental industry will continue to expand. We are quite confident that we will start bringing in money and turning a profit in our second year of business thanks to Atlanta, Georgia’s strategic location, from which we can then grow and expand our company.

Based on data and information gathered from several similar start-ups in the industry as well as our location, we conducted a critical analysis of our chances in the equipment leasing industry. We developed the sales projections using the results of this critical analysis.

According to the location, the strong state of the economy, and the absence of a competitor entering the market during the specified period, the sales projections for Tack Rentals (TR) are listed below;

  • 800000 in the first financial year
  • Two-year period: $1,600,000
  • Third Fiscal Year: $3.2 million

Note: The aforementioned sales projections were created using a variety of market data and facts. The aforementioned projections are predicated on the assumption that none of the aforementioned factors will change. However, should any alteration take place, whether favorable or unfavorable, it is likely to affect the projected sales figures, either increasing or decreasing them.

  1. Publicity and Advertising Strategy

Any company that wants to actively contribute to revenue generation and build the necessary brand awareness must consider the importance of publicity and advertising. Because of this, it is crucial that we carefully plan our publicity campaigns so that they positively portray us to both our current and potential clients.

In order to ensure that Tack Rentals (TR) is known not only here in Atlanta but throughout the country, we have also hired a brand strategist who is quite knowledgeable about the industry and knows which strategies would likely be beneficial to us in the short and long term.

  1. Our Pricing Policy

We intend to take our pricing strategy very seriously when it comes to setting the rates and prices for our customers because we are aware of how crucial pricing is to a business. We would offer our customers a fair price or rates for our equipment, and we would make sure that the price obtained would bring in a healthy profit that would cover both our overhead and operating expenses.

However, we intend to lower our rates for the first three months of operation in an effort to draw clients to our business and earn their loyalty. However, the rates would not be reduced to the point where it would negatively impact our business; rather, we would only be operating on thin margins. However, we would later increase our prices to match those offered in the rental industry.

  1. Initial Expenses (Budget)

The equipment rental industry requires a lot of capital, especially if one wants to establish a high-quality operation. It should be noted that when raising start-up capital for our equipment rental business, the majority of the money would be spent on buying this large equipment, with the remaining heavy spending being on paying bills and employee salaries.

  1. Sustainability and Growth Plan

Because we started our business not only to make money but also to have a future, we intend to make sure that we put our expansion (reinvestment) and sustainability (employee competence) strategies into practice to our advantage. Without sustainability and expansion strategies, a business has no future.

Making sure we hire people who are extremely competent and have a solid grasp of how to run the business is one of our top priorities for maintaining our business. We intend to pay our employees well, in line with what is typical in the sector for start-ups like ours, and make sure we give them a great welfare package in an effort to ensure that the business runs smoothly.

Conclusion

Equipment rental companies are a great way to get your business started. By researching the equipment you want to rent and getting a rental agreement, you can save money and ensure that you’re renting the best equipment for your business. In addition, making sure to rent the right equipment can be important in order to avoid potential problems down the road. Always read and understand the rental agreement before signing it, and be sure to follow all of the safety tips included.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *