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Business idea rent construction tools or rent things

The rental (sharing) business is gaining momentum in the United States of America. Rental points in the classical sense can be conditionally divided into two large independent categories: rental of construction tools and rental of a wide range of things.

Business idea rent construction tools or rent things

For example, in the European Union or the USA it reaches from 70 to 90%. We have about 20-30% when it comes to construction equipment rentals and 10-15% when it comes to rental items. 

Huge reserves! At the same time, after the epidemic, people increasingly began to invest in the construction of suburban real estate - on the one hand, they pay more and more attention to their families and children; recreation or outdoor travel; Concern for health or leisure - on the other hand.

As a result, they are set in 2021, and in 2022-2023. Additional pent-up demand is expected for rental construction tools, sporting or children's goods, medical equipment, electronics, cleaning, camping and travel products, and sound and light.

The rise in prices for necessary goods is also important - it is becoming increasingly difficult for people to buy them.

In such conditions, not only individuals increasingly want to rent construction equipment, but also legal entities, foremen and workers in charge. This is exactly the circle - potential customers (only about 10-12% of the active population) when renting gadgets. 

In turn, broad masses seeking to diversify their lives often want to expand the range of everyday objects of different categories - bicycles, trampolines, skis, washing machines, tents, boats, professional cameras, game consoles, music centers and lights.

This is where rentals come to the rescue:

  • construction tool - more expensive, but marginal;
  • Things for Life - Getting started requires significantly less investment.

Characteristic of this entrepreneurial activity is that 80% of clients go to zero-deposit rentals and a high level of customer focus. To do this, a company, individual entrepreneur, or independent business owner needs a subtle set of no-return tools and strong internal instructions. This is a whole set of measures that have been developed over the years.

If you add factors like:

  •  a tight system of attracting customers at a low cost to each potential customer;
  • A powerful site with SEO promotion and social networks with high-quality content;
  • CRM rental accounting system.
  • discounted prices for the purchase of fixed assets in bulk;
  • selection of reliable employees;
  • The mechanisms of action of the rental point described in the business book: regulations, instructions, samples of organization, personnel, legal documents and reports, video instructions
  • Setting up ads in Yandex, VK and Instagram

Add to this the personal assistance of the management at the opening stage - you get a functional and profitable business. The main thing is not to make expensive mistakes at the beginning, which usually happens when starting blindly and without strong support.

For example, with an investment of $10,000 in construction equipment, depending on the size of the city, the profitability ranges from 27 to 42%, and the net profit from the second year is $3,000 per month. And this is only from a rental point in a small or medium-sized city with a population of 150-300 thousand people. The payback period is from 6 to 12 months taking into account the high residual value of the device and about a year and a half without it.

In contrast, the numbers for starting a business in a rental point are about two times lower, but no such resources are needed to get started.

At first glance, renting may seem like a complicated business. Is also? Surprisingly, the answer is contradictory. Yes and no. On the other hand, if you do not have experience in this field, yes, it is difficult. There will be problems of no return, ignorance of the choice of location, the matrix of goods purchased at a profit, repairs, the selection and control of reliable personnel. 

However, on the other hand, having complete information on how to start it, joining the powerful IT resources of a reliable company, buying the right matrix of tools or things for profit, the business becomes not only simple and understandable, but also profitable . For example, some centers from TOP-5 can pay every 2-3 months.

This is what makes this direction of financial investment attractive both as an investor and when opening a lease "for oneself". why? The competition in most cities is small, new rentals without basic knowledge quickly fade into the background and then shut down completely. In turn, the most technologically advanced players get the best results, becoming No. 

1 in rentals, or occupying one of the leading positions in their territories from the first year or two after opening. The synergy effect also works: the more points in the network, the higher the rent in Yandex and Google search engines.

An excellent addition to a reliable mechanism can be the participation of highly qualified personnel in the head office: from a content manager and programmer to a representative of security services, a technician and a lawyer. 

Their knowledge and skills are often necessary, but to keep them in all branches is very expensive and therefore impractical.

At the same time, open leases in a single system have a high degree of protection against market risks:

  • Most of the money goes to fixed assets - the rental fund, which always has high liquidity
  • The lower fixed costs is due to the possibility of renting small premises from 15 square meters. And only one manager or owner worked
  • The current experience of the parent company will save more than a million rubles on possible errors during self-discovery and several precious years of life
  • The brand book and the files of the main products of the brand are transferred: tags, clothing, business cards, as well as well-prepared advertisements
  • Discounts from partners at wholesale prices
  • All operating processes are organized
  • Connection to the aggregator of IT communications, website, social networks, Yandex directory and Google
  • Training and support
  • Assistance in choosing the site and buildings

It remains only to choose - which option is closest to you: rent a gadget or rent things for life!