A Business Plan Guide for Equipment Rental Companies
A business plan is the first thing you need to think about when starting a new equipment rental company. What? You thought you could just file for the name of your new company and get started? That’s definitely not the best way to get a successful company running.
A business plan allows you to make the best decisions based on facts and data. You will also be able to use this plan to pitch your rental company idea to potential investors and business partners. Frankly, without a business plan, there’s no way that your company is getting off the ground. If you’re aiming to go into the Heavy Equipment Rental business like Rent1USA, keep reading to learn the main points you need to have in your business plan.
1. The Executive Summary
First of all, your executive summary comes into play. This is basically the first pitch of your rental company idea and what you’re seeking from the audience you’re presenting it to you. You will want to include the end goal of the company, the mission statement, and what you’re asking for. For example, if you’re asking a bank owner for a loan of $3,000 to start the business, you’ll want to include those exact numbers in the executive summary.
Think of it as your first impression to whoever’s reading your plan. And remember, first impressions matter more than you think!
2. Company Summary
On the next page of your business plan, you’ll need to go into your company summary. This is all of the basic information about your company. For example, you will have to include the ownership of your company, the location of your facilities, and any past business you may have had.
Next up, you should go into the products that you are going to be renting out. How many pieces of equipment will your company own and what brands/models are they? You can also go into any future products that you hope to add to the fleet if things go well. This is important for any potential investor or business partner to know.
4. Market Analysis Summary
After your product summary, you will have to include a thorough analysis of your market. This is basically your customer base – who you will be selling to. Where are, your customers located? What is the state of the market that you’re entering into? These are all important questions you should answer in this section.
5. Strategy and Implementation
This section will go in-depth to your exact strategy for growth/profit and how you’re going to implement this strategy throughout your company. For example, how many employees are going to hire in order to meet your productivity goals? What is your digital marketing strategy going to look like?
6. Sales Forecast
Next is one of the most important sections. The sales forecast is going to tell your company leadership team and potential investors how much profit you’re expecting in certain periods. This is based on previous sales information and the status of the market at each moment in time. Since profit is your end goal here, this section is crucial to get in your case.
7. Management Summary
The Management summary will go into exactly how is going to be in which position on the management team. Each department or sector of your rental company should have a leader or manager who is managing the employees in those departments. Make sure this is clearly outlined for anyone who reads your business case.
8. Financial Plan
This is essentially the beginning budget of your rental company. This section will detail where your expenses are going to go to and where your profits are going to come from.
Lastly, you can include an appendix that includes any extra information or data points that don’t fit in with the other sections.
A business plan isn’t something that you can create on the fly and get your company started right away. You should spend a lot of time on this plan to ensure that you have enough data and information to back up your case for starting a rental company.