Business plan for tool rental - “Thirst”

Today, due to active repair and construction work, rental of the necessary tools is becoming popular again in Russia. For many citizens this may turn out to be quite convenient.

Not everyone will buy expensive tools in order to make repairs in one apartment. It is much cheaper to rent them, paying for use daily.

In addition to professional and household tools, you can rent gas-powered equipment, vibrating devices, and parquet sanding machines. Overall, renting construction equipment can generate considerable income. We will consider the organization of this type of activity in more detail below.

Business plan: tool rental

When organizing any business, everything should be carefully thought out and calculated. This case is no exception. To implement an idea, you need to properly draw up a business plan. Renting a tool is not as simple as it might seem.

The documents should describe all the main aspects of this field of activity. It is also necessary to analyze the main problems that may arise when opening this business and determine the main ways to solve them. This will be discussed further below.

Business registration required licenses and permits

To start such a business, it will be enough to register as an individual entrepreneur.

State the duty will be only 800 rubles. and in about a week you will receive a certificate of an individual entrepreneur and can start. Special licenses or permits are not needed for this, but the standard rules for opening a rental point or retail outlet are not canceled. These include:

obtaining permission from the sanitary and epidemiological station;
registering a business with the tax service and choosing a taxation system;
opening a current account for monetary transactions with clients (required when opening an LLC).

If you plan to open a business with a partner, register a limited liability company.

Select the appropriate OKVED code:

32 – rental of construction machinery and equipment;
40.1 – rental of other household products and personal items for households.

Selecting a room

This requires an individual approach. The room in which your tool rental shop will be located can be about 20 square meters in area, and in any residential area of the city. The ideal would be a small corner in an existing store so that access by car is convenient.

Not every client can carry 20-25 kilograms of rented equipment. If the store is located on a busy side of the street or highway, you need to design the office window well so that it attracts the attention of consumers from afar.

Marketing plan

One of the ways to promote services to the market will be advertising - the most powerful stimulator of demand. The power tool rental shop plans to use the following advertising distribution channels:

Outdoor advertising at the rental point.
A pavement sign in the area of greatest traffic nearby.
Advertising on the Internet (bulletin boards, targeting in social networks).

In order to compete with other rental points, it is proposed to set an initially reduced price for services. This will allow the point to operate with a profitability of at least 60%, therefore, the method is economically justified.

Deciding what can be rented

The list of the main most popular tools includes the following:

Rotational devices – jackhammer, drill, impact wrench, etc.
Grinding and cutting tools - saws, grinders, etc.
Welding equipment and fixtures.
Assembly and compressor devices.
Construction tools - concrete mixer, heat gun, etc.

It should be remembered that rental will be in demand if you offer a large assortment of goods, preferably about 30 items. Also, renting construction equipment significantly diversifies the list of services. It must be of a professional type in order to be in demand among serious construction teams. It is better to take care of this long before opening a rental office. You need to decide where the equipment and tools will be purchased. Buy them from places that will provide warranty documents and a discount for buying in bulk.

Potential consumers

Typically, clients fall into three main categories:

Builders who do private renovations. The rental of tools is included in the estimated cost of the work. This category of clients is subject to mandatory training on safety precautions and the use of electrical equipment, because not all builders in practice turn out to be professionals; they can easily break the rented goods.
Private individuals. This is the most problematic and common category of tenants. They should be given a lot of attention, and they should also be given detailed instructions on all issues and a detailed study of the client’s personality.
Legal entities, organizations. This category of clients usually has their power tools break down. It’s easy for a manager to work with such clients. Detailed instructions are not required; work experience is available.

Staff

To work at a rental point, a person is required who will directly work with clients, make payments, draw up paperwork and hand out tools.

It is also important to have a general repairman on staff. It is he who will monitor the serviceability of both the equipment issued and that returned by the client, and carry out routine repairs.

At first, you can combine these two positions and assign a master not only to carry out repairs, but also to work with visitors.

Don’t forget about maintaining accounting and documents. In the beginning, the owner of the item himself can do this.

We take into account the presence of risk factors

Be sure to include this point in your business plan. Tool rental involves the following main risk factors:

It often happens that the renters of tools or equipment may be people who have absolutely no experience working with them. This means that there is a high probability of getting back an already broken device or, even worse, the client may injure himself if he uses it carelessly. To avoid these troubles, managers should provide detailed instructions on the use of tools and equipment. This is important.

All rental points should have stands with instructions and operating rules for various tools and equipment, as well as safety regulations for their use. It is better to familiarize the consumer with these materials upon signature.

When concluding a lease agreement, the client must provide his passport, of which it is better to take a photocopy, so that in case of failure to fulfill the agreed obligations, the unscrupulous tenant can be easily found. Usually rental points do not require a deposit, but it is better to insure yourself and still take 100% of the cost of the equipment. However, not every person carries such an amount with them. After all, for example, on average, an ordinary hammer drill costs about $1,000. Then, in this case, they are limited only to insuring the instruments, as well as determining the identity of the tenant.

Business organization

When developing a business, you need to register your activities. For beginning businessmen, it will be more profitable to do this in the form of individual entrepreneurship. In addition, it must be taken into account that in this case the entrepreneur has the opportunity to choose the most convenient taxation system for him.

Official registration of a business implies that it must comply with the requirements of existing legislation.

In particular, the following requirements exist:

The premises in which work takes place must comply with fire safety standards.
It is necessary to ensure compliance with the requirements of the sanitary and epidemiological service.
To get started, you will need to register with the tax office.
To work, you will need to open a current account.
Experts recommend that novice businessmen use the patent tax system. It is not available for all types of businesses, but when providing services related to the rental of various tools, it is possible to switch to a patent.

To carry out activities, you must select the appropriate OKVED codes. Codes for those involved in this activity:

32 — this code corresponds to the activity of leasing machinery or equipment for construction purposes;
code 71.40 means that the entrepreneur will rent out items related to personal use or various household products.

The target audience

According to surveys in Yekaterinburg, it was found that approximately 10% of residents are ready to rent tools if they have such an opportunity. It is believed that this procedure will be most in demand among the following categories of clients:

The provision of tools for rent is usually in great demand among employees of construction teams of various types and purposes.
The number of active consumers in this case includes owners of private houses and summer cottages, who will always find work in their homes and yards.
Persons who build their own private residential building perform a large variety of construction work. The use of high-quality and productive tools is in great demand among them.
Another area where high-quality rental tools will be useful is apartment renovation.

Selecting a room

If you have to solve the problem of choosing the right premises for conducting business, then the first thing that comes to mind is the intention to rent on the central city streets. However, when weighing this idea, you need to take into account that many people do not go to the central areas very often, but spend most of their time in their area.

Often the clients of a tool rental business are residents of nearby houses. Therefore, it would be a good idea to organize a rental point near a large area of residential buildings.

One such opportunity is a pavilion near a hypermarket among a large number of high-rise buildings.

Another option is to rent a place in a shopping center. A good option would be to organize a rental station in the basement of a residential building. It is important that the entrance is located on the side where the street is. It is believed that a room with an area of 40 square meters is suitable for work. m.

In order for a business to generate stable income, it needs to be properly organized.

Staff

Tools are actively used. Tenants, having rented them, try to use them with maximum benefit for themselves, and therefore with high intensity. In this case, equipment breakdowns cannot be ruled out. To repair them, there must be a special worker on staff.

It would be a smart move to hire a person with a technical background who has worked in a factory for many years. You can collaborate with him in various ways:

If there is usually a sufficient amount of work for him, then it would be better to hire him as a full-time employee.
If there is a lot of repair work, it makes sense to contact a specialist only for one-time repairs.

People play an important role in the operation of a rental shop. Which is directly involved in accounting and issuing rental equipment. His task should include instructions that the client must receive before receiving the tool. It must be taken into account that in some situations, due to ignorance or lack of experience, the client may misuse the received equipment and damage it.

For this purpose, it is not necessary to hire a separate employee to work at the rental center. At first, when the business is just starting, this work can be done by the business owner or repairman.

It is recommended to use the services of a law firm to resolve problems that have arisen in this area. This can be secured, for example, in a service agreement.

Rental office opening hours

In most cases, tool rental as a business uses the following work routine:

Work takes place from Monday to Saturday from 9 am to 7 pm.
Day off is Sunday.

What tools are in demand?

In order for the business to be profitable, it is important to choose the right tools that will be provided for rental. In this case, you need to proceed from certain selection rules. An example would be tool rental in Leroy Merlin.

It is desirable that the tools meet the following criteria:

The implication is that customers must need them. There shouldn't be any tools that no one wants to rent.
Each thing has its own service life. Equipment rented out will be constantly used and, accordingly, wear out. It is important that the tools have great reliability and durability.
The assortment significantly depends on which category of customers is predominant at a given rental point. If, for example, we are talking about summer residents, then they will most likely need trimmers for mowing lawns and chainsaws. Construction workers may need jackhammers, grinders and other construction tools.

It should be taken into account that the most popular tools are most likely already purchased by target customers. But those that are expensive and of the highest quality, most likely not. Renting an instrument is much more profitable for a short time than purchasing it for a fairly high price and using it only occasionally.

Among the many tools, it is worth highlighting those that are especially popular

You can consider the classification of the tools and equipment provided according to their purpose:

Rotary and impact - these include, for example, drills and hammer drills.
For grinding or cutting. This includes grinders, saws, gas cutters and other similar tools.
Construction tools that use compressors (for example, jackhammers) in their work.
Multifunctional machines and equipment, including for construction purposes.

Experts believe that a rental store should contain at least 30 items in its assortment. Since it is impossible to predict the demand for a particular type of equipment, they usually buy one copy first, and then see how much it is in demand. If it is constantly used, buy another copy of this type. If an instrument is not in demand at all, then it is better to sell it.

In practice, the following rental instruments are most often in demand:

Jigsaws. Although they do not belong to the category of very expensive instruments, they are used quite rarely. Therefore, keeping a jigsaw at home in most cases is unprofitable.
Hammers, drills, and other equipment from this category.
Chainsaws. With their help you can easily cut down a tree or trim thick branches, but they are rarely used.
Generators.
Grinding machines.
Concrete mixers.

When purchasing tools and equipment in large quantities, you can try to get a discount from the seller of 5 to 10%. It is quite possible to obtain it due to the large volume of purchases.

There is no need to save when choosing this or that brand of manufacturer. It is recommended to buy well-known, expensive and high-quality items. They will cost more, but there will be more demand for them. It is recommended that each variety of instruments consist of copies of the same brand. Subsequently, in the event of a malfunction, such a selection will allow you to use parts from another to repair one tool.

Risk factors

In this activity there is always a risk that the renter may damage the borrowed tool. In this case, the enterprise should establish fines. It is necessary for a lawyer to develop a sample tool rental agreement that will oblige the client to bear responsibility in such a case.

Financial calculations

When determining the cost of renting rental items, it is usually based on the purchase price of the tool. The cost of a one-day rental is usually within 5-7% of this price. This principle of setting prices leads to the fact that the purchase pays for itself in 15-20 days of renting the instrument. Over their entire service life, each of them pays for itself up to five times.

Some entrepreneurs rent out very expensive equipment. An example would be a diamond wall saw, the price of which is 250 thousand rubles. Small construction companies often cannot afford to make such a purchase. At the same time, it is more profitable for them to use the lease than to refuse such use. A business plan for tool rental involves spending from 500 thousand to one million rubles on the purchase of equipment.

When can I expect profit from investments?

As a rule, rental points provide their services on the basis of payment for the tool on a daily basis. The average rental price for one unit of equipment for one day is about 9-10% of its cost. Typically, clients can take at least two types of any instrument per day. This is what simple builders who have small amounts of work do. But large teams can rent ten units of tools at once for a period of more than a week. The average payback period for one device is about six months.

It is better to open this business in the summer, more precisely, even from the beginning of May to the end of October. At this time, the newly opened tool rental can be visited by about five to seven clients in one day. Towards the end of the year, demand will decrease significantly. As a result, there will be only two or three clients every day.

The average cost of renting a tool per day will be about 500-600 rubles. As work experience accumulates, in the coming year the tool rental business will bring its owners 15 contracts each day worth about 1 thousand rubles each.

You can also sell consumables for various devices along the way, freeing the client from going to the store. It will be convenient for the renter to purchase dowels, drills and much more directly at the tool rental point, and for you this will become an additional source of income.

First clients and first profit

I began posting advertisements for the rental of my acquisitions on social networks, running on local television, and even posted advertisements on boards and bus stops, poles and entrances.

I offered not only rental of these tools, but also assistance in performing work with them (counting on a female audience).

And so, after a couple of days I received my first money from this business. The man took the thickness gauge for two days to travel to another city and buy a car there. Here I had a little doubt about the integrity of my client and was afraid that the thickness gauge would go to waste. But still I decided on the following conditions: we drew up an equipment rental agreement, signed it, the man gave me a copy of his passport, 1000 rubles payment and 1000 rubles deposit. And everything went well. My thickness gauge came back to me like new.

A motor drill with an auger turned out to be indispensable

Literally a few days later, a woman approached me with a request to install 2 poles for her in a dacha near the city for a fee, and I gladly took on this task. Here my motorized drill with an auger for excavation work was simply irreplaceable. In the evening after my main job, I earned 800 rubles. Then this same woman, as it turned out, was lonely, having learned what other tools I had, she asked me to hang a cabinet in her bathroom at home, and in just 30 minutes I again earned 300 rubles. Things were going great.

Winter began, and my motorized auger with an ice auger began to be in great demand. Companies of avid fishermen rented it for winter ice fishing for 1,500 rubles for the whole day. Also in demand was a heat gun, which was used, for example, for rare work in unheated garages.

A motor drill with an auger is one of the most popular tools.

Advice

If within six months from the opening of this business the average monthly income of the rental office is below one and a half thousand dollars, think about whether it is worth continuing to do this business. In this case, the tools can be sold for 50% of the cost, as well as stands and tables, gaining about 25% of the initial investment.

But let's not talk about sad things. Renting tools can bring a fairly stable income if you plan everything well and pay attention to clients and try to sense those who are ready to deceive. It would be nice to know about the structure of the tools, because sometimes you will have to rent them out for up to 20 days a month, and you need to be prepared for anything. If during the first year of work the entrepreneur has enough money to pay salaries and rent premises, then we can assume that the business has been a success and profits will soon begin to flow. Just a little time left to wait, you are on the right track.