On construction sites, heavy machinery is frequently needed in huge quantities. Transit mixers, cranes, wheel loaders, generators, and hydraulic rigs are examples of equipment that is not very cost-effective and is unaffordable for mining and construction companies. As a result, they either lease heavy equipment for years or rent it on a project-by-project basis. So, bridging this gap between construction companies and equipment owners by starting an online equipment rental marketplace can be a lucrative business idea.
Statistics show that the $37.5 billion annual income generated by the equipment rental sector is predicted to increase by $5 billion by 2024.
A tracked dozer, telehandler, or heavy construction machinery requires a substantial capital investment. Since the results may not be seen for over a year, proper planning is required. Until you sell the equipment, the money is still locked inside.
However, the resale value decreases if the equipment is kept and utilized for an extended period. In this case, renting provides the best option. It reduces the requirement for an upfront capital commitment that a business could use for maintenance or pursue other projects.
Having a streamlined equipment rental operation requires multiple efforts at different stages. First, you will require to create an agreement that safeguards your rights as a business and keeps in the customers’ interests. Then, to keep customers hooked on your business, you can offer discounts to your customers on bulk orders.
While the internet is on boom everywhere, ignoring the web can cause your business to miss several opportunities to scale and grow. You can ask somebody to create a rental website for you if you don’t know how to code. Additionally, you can choose ready-made Construction equipment rental software that helps business owners build rental websites for their businesses.
To know if starting a heavy equipment rental business would be lucrative, you should research your target region against the equipment you want to rent out. Furthermore, narrowing down the prospective clients and efficiently strategizing business operations can help you get clients during the initial days.
Starting an online rental business these days, the competent online presence for streamlined business operations, detailed market insights for acquiring clients, and several other factors combined. Check out this complete guide that assists business owners in starting an equipment rental business from scratch. Though starting a heavy equipment rental business with a ready-made solution is the easiest way to enter the market with maximum agility, you must invest a fair amount of money in identifying the best rental platform. Also, single-vendor rental businesses turn out to be a restriction to the options for customers. So, starting a multi-vendor solution that provides various custom options has more chances of scalability and growth.
Heavy Equipment Rental software like YoRent can launch a profitable rental marketplace or website for your business.
To get more detailed, in-depth information about the future of the rental industry, you can download this report prepared by FATbit Technologies free of cost. This rental report lets you know about the industry’s growth, market size, trends, opportunities, niche, and more.