As the economy struggles to rebound many companies, especially in the construction industry, are cutting back on new equipment purchases. This trend has actually created some new business opportunities for those who are interested in how to start a power tool rentals business.
Rental tool companies are experiencing a wave of new business as smaller companies and individuals are now starting to do their own construction projects to save money, instead of hiring someone else to do them. Also, renting power tools for a short duration just makes sense, rather than coughing up the money to buy brand new ones. There is much money to be made in renting power tools, as everyone at some point needs to use them, from large hotels and hospitals to handymen, housewives and husbands, large and small power tools are always in demand.
How to start a power tool rental business
As the price of power tools become more expensive, out of necessity people who need to use such tools begin to look at renting as an option, rather than buying them. How to start a power tool rentals business of your own is really not that difficult. Like any business start-up venture you will need to choose a type of business entity to form.
Contact your state’s department of commerce or equivalent office to obtain the proper documents. There may be some special requirements you may have to fulfill to start a power tool rental business, but the requirements should be easy enough to satisfy. The main benefit from incorporating your new power tool rental business is that you can purchase the equipment and tools you will rent out in your company’s name, instead of your own. This allows you to create a vital personal tax shelter. It’s advisable that you consult with an attorney that specializes in forming or incorporating business entities.
What kind of tools to rent?
Before you get carried away buying just any kind of tools; you need to decide which industry you will cater to. For example, residential demand for power tools would include such things as electric and gas powered weed cutters, lawn mowers, cement mixers and even small jack hammers. While commercial businesses will need larger power tools like large jack hammers, pumps, power cords, generators and electric saws?
Take a drive around your town and observe the construction activities of neighbors and commercial business, also check to see if other power tool rental companies exist. If there are, then find out what their particular niche is, and then offer power tools they don’t have.
Location, location, location and public awareness
Like any business, you need to do market research of your area. Make a list of all the possible businesses that can benefit from your power tool renting business, such as remodeling companies, contractors and residential areas you want to service. Once you have refined your equipment rental list, then send out direct mail to let people know where your new location is. How to start a power tool rentals business isn’t hard, and like any new business it just takes time and effort to get started, but you will benefit greatly if you build your business around your community’s needs.