The commercial and industrial machinery business has been expanding rapidly. If you are looking to start a business in this area, this will be a good start.
The tool & equipment rental sector, which includes the machinery business, has a market size of approximately $ 4.3 billion in sales in the year 2021. This accounts for most of the rental income.
This article will help you to understand how to turn your equipment rental trends into a business opportunity.
Study your market and customers
Observe if you notice any rise in the development in your neighborhood area or any renters seeking the real estate market. If yes, then you should know that your region has booming business opportunities.
To satisfy the rising market trends and stay ahead of everyone, you need to understand what the customers are searching for.
Figuring out this will help you understand what type of equipment your clients want to rent, the average amount you can charge for this equipment, and how much revenue you can forecast.
To understand the customers, you can seek a third-party source that provides you with secondary data. Otherwise, primary data can be secured from the customers based on surveys and interviews.
You have to consider the geographical area and the target audience for your business before conducting primary data collection because larger geographical areas could be difficult to cover.
Quality over quantity
You should always prioritize the quality of the equipment over quantity. Buying less equipment will make the process less expensive and more accessible than buying surplus amounts and then weeding out damaged and undesirable products.
This whole process of buying equipment will be made even easy if you know what your customer will need. Never have an idle inventory because it wastes your money which can be used for other purposes like expanding your firm.
Make sure to have significant discounts redeemed when you are buying an inventory. This way, you will have a palace to save your stock and avoid losses in the future.
Advertise your business
If your customer needs anything these days, the first step they take is to go online and search for the product. For this reason, you should advertise yourself on the internet. Place the details of your business in the local newspaper.
Make sure to keep in touch with the customers that are with you for a long time as these could be the first and longest-serving clients. Your digital presence should be easy to reach out to and reliable.
For this purpose, you will need the following two websites:
- A business website on the internet that will demonstrate your business’s reliability
- A rental website where your customers can browse and see what machinery is available and the process about how they can rent it.
In today’s world, it is crucial to have a presence on social media. Advertise your products and business on as many platforms as possible.
If you are renting to other companies, they might not check sites like Facebook, but your company’s LinkedIn page will be visited as it is a professional website.
Investigate your competitors
Before you start a business, it is critical to know about your competitors. Understand how the business trends are in your area. Research about any rental companies already established in the neighborhood, along with how successful they are.
You need to consider if you will be able to achieve success by standing against the already successful companies established in your area. When you are evaluating the rental market, consider the following points.
- What equipment types are available with the competitors, and what new products can you provide?
- What rental prices are your competitors charging every day, week, and month?
- How big is their size of business and
- What type of services do they provide? Do they rent only used products or new products too?
Later, devise a plan for your company to make it stand out among all your competitors.
Create a budget plan!
It is important to create a budget plan based on your finances and stick to it without going broke. This will also help you to easily apply for any kind of loan like machinery loan, business loan, and MSME loans.
With a budget plan, you will know in detail about your finances. Additionally, if you are considering a business loan or an MSME loan with the budget plan ready, you will know how much to lend from the lender.
When you are selecting equipment for your business, be careful to not spend extra. It is always ok to start slow and grow gradually. You can even take a machinery loan to help you with the growth.
- Machinery loan: This loan helps you receive finance up to 2 cr for upgrading your existing equipment or repairing the damaged ones. This simple loan process doesn’t take a long time to sanction your finances. The procedure to apply for a machinery loan is similar to that of a business loan.
Take care of your stocks!
The profits you will receive in your business depend on the equipment that you have. Therefore, when it comes to your machinery, safety should be the priority. You must look after your equipment in any way possible.
- Fix any technical faults that may be in your equipment through repairs and regular maintenance before your customer discovers them.
- The kit you provide your equipment in for your customers should always be new and clean.
Taking care of your stock will help you avoid losses while increasing the product’s quality.
With appropriate preparation and with the help of a wide range of machinery loans, business loans, and MSME loans available, you are all set to start your business. For details about acquiring loans and GST registration, contact us today at Ziploan.