How to rent your special equipment
If you have a solid start-up capital, and you are thinking of where to invest your money, then renting out special equipment is a good solution to get a stable profit for many years.
Demand in this area of activity appears due to the fact that every year many small construction companies open up that take orders for private housing construction, and it is not profitable for them or they do not have the opportunity to buy and maintain special equipment at their base ... It will not be used often, but the budget required for its purchase in their case can pay off for many years. The second point is the need to maintain a staff of drivers and technical specialists who will work in this technique.
The success of the special equipment business will largely depend on your managers who will be selling services. The main thing here is to hire specialists who can convince small companies to sign an agreement with you. They will need to pay a percentage of the profits but it will be worth it. Let's take a closer look at all the details of this business.
This type of service is in great demand in many cities, including small ones.
Of the main areas where the services of special equipment are in demand, one can single out: the construction sector, the sphere of servicing individuals (pumping holes, drilling wells, planning sites, digging holes, etc.).
As we wrote above, you need to focus on firms, since they will rent equipment for a long time, usually a week or two. At the same time, such companies, for example, first plan the site using an escalator, then they drill piles using a drill, then they need to unload the building material using a crane, and so on. In all these cases, they will contact you.
The private sector also does not need to be let out of target customers, since good orders are slipping through here too. And the earnings for renting special equipment for individuals are higher, and the payment goes for at least 1 hour of work.
The next step to decide on is the format of your case. There are two main approaches.
- Full lease of equipment. The company comes with its driver and takes the equipment, say for a week, after which they return it to the base.
- Comprehensive services of special equipment, from delivery to the execution of all work at the facility.
The second option is the most preferable for the implementation of this business idea, since you will be able to control how carefully the equipment will be used, and in this case, earnings will be higher. In addition, it is this business format that is suitable for servicing individuals.
Construction today is considered one of the steadily developing industries. At the same time, this area "pulls" upward and related areas of activity. For example, services for the provision of excavators, bulldozers, dump trucks for use. To successfully launch a business like this, you need a well thought out business plan. Rental of special equipment is a promising and profitable business.
Today, many construction companies refuse from the costs of maintaining and maintaining their own fleet of equipment. It is much more profitable to rent the necessary cars by concluding an agreement with the relevant company. This reduces the cost per square meter of the facility being built, since there is no need to pay for the labor of drivers, repair and service of equipment. Abroad, this practice no longer surprises anyone. And Russia has already appreciated its economic benefits.
In addition to builders, the consumers of this service are road workers, repairmen, organizations that maintain houses and territories.
How to find clients
How can you find clients who need to rent equipment? Before starting your own project, analyze the circle of potential customers. Try to establish cooperation agreements with large organizations in advance.
Build a prospective client base of companies interested in your services. This can be done by viewing ads in newspapers, the Internet, and on television. Call construction organizations, DSU, housing and communal services.
In addition to guaranteed contracts, this preliminary work will give you information on what kind of equipment should be purchased first. And put the appropriate investment amount into your business plan.
Rental of special equipment will only start to make a profit when you have a constant workload. Downtime should be kept to a minimum.
It is better to design your company in the form of an individual entrepreneur. An individual entrepreneur does not need to collect many documents for registration.
But if you are going to open a business together with a partner, then you need to organize a limited liability company. And this form is preferable when working with large clients.
Then you need to register with the tax office and select the form of taxation. This is usually a simplified system.
Do you want to make money by renting special equipment? Not a bad choice. But first, you need to know all the subtleties and sides of this niche. After all, any business rests on its correct organization and conduct.
Only inexperienced people might think that the business of renting special equipment is simple and at the same time profitable. The mistake of many beginners is that they throw themselves headlong into the pool. Confident in the future success of the business started by them, they purchase special equipment, spending crazy money, while getting into debts and loans. But, unfortunately, such expenses do not pay off quickly. For example, a business for renting special equipment in a small town, even with very significant investments in it, will not bring the profit that is received from it in cities with a population of over one million. Beginners who are ready to take the risk of taking a place in this niche should be prepared for all sorts of difficulties in their work.
"Pitfalls" at the beginning of the path
Undoubtedly, the business of renting special equipment is relevant and in demand. Significant territories are being built up every day in cities and towns. And none of the buildings is being built without the involvement of special equipment. Demand creates supply. Do you need special equipment? You should contact companies willing to lease it. Therefore, the desire to make money in a niche that will always have customers is a good idea. But to be successful in this business, you need a well-thought-out business plan, the right strategy for building relationships with customers.
The main rule for newbies is to adapt to the wishes of the client. Therefore, it is necessary to work under those conditions that are convenient for the customer, and not for you. Such a flexible approach to clients will make it possible to turn one-time orders into permanent cooperation. Rent of special equipment is needed not only for summer residents to dig trenches on the site, but also for large construction companies that have been working in the field of building for many years. Both with those and with other clients it is necessary to look for a more convenient option for them. And then they will certainly contact you the next time when the need arises to attract special equipment.
The most demanded special equipment for rent
For a beginner-businessman who has decided to make money by renting special equipment, the purchase of construction machinery will become a mandatory item in the expense item. Mini-loader, light truck, mining excavator ... It can take a long time to list the types of special equipment presented by manufacturers. But for a beginner in order to do business, the best option, in our opinion, would be to purchase a backhoe loader for rent.
Why him? First, it is multifunctional. Indeed, in fact, this machine is a tractor equipped with a front loading bucket and a backhoe. Thanks to the backhoe loader, you can carry out the transportation of construction materials, dig trenches and foundation pits. In addition, it can be equipped with attachments (snow removal mechanism, hydraulic hammer, yamobur, log grab, etc.). And then the versatility and relevance of the backhoe loader will be really impressive.
Due to its relatively small size, this machine can easily turn around and drive in places where other special equipment cannot maneuver and move, and easily perform the same tasks as its more "overall" counterparts. The advantage of the backhoe loader is its good speed (up to 40 km / h). In general, this car can be safely called the most demanded special equipment in the rental market.
Today, renting a backhoe loader, even in small towns, you can earn at least 1300 rubles. in an hour. If we take into account that in winter it is ordered for at least 4 hours, then tangible profit will be already from an 8-hour rental of this car.
Rental of special equipment is a relevant and profitable type of business in Russia today. Construction of buildings, roads, earthmoving and agricultural work requires excavators, cranes, tractors and other special-purpose machines. But in times of crisis, many enterprises consider it unprofitable to keep their own equipment, therefore, if necessary, they simply rent it. According to statistics, the demand for special equipment is growing by 20% annually. The demand for such machines is especially great in spring and summer.
Selection of special equipment
What kind of special equipment is better to buy to get the maximum income? It all depends on the available budget and the work for which it is purchased.
Most popular construction equipment:
- Crane-manipulator ;
- Front loader;
- Dump truck;
- Concrete pump;
- Aerial platform;
All these machines are in great demand in the construction industry. The trawl is also rented for the transportation of oversized cargo over short and long distances. Aerial platforms are necessary for advertising companies to install and dismantle banners and posters.
Prices for renting special equipment
The cost of renting special-purpose equipment depends on the terms of employment (with or without a driver), duration of work (number of shifts), season (in summer it may be more expensive) and other conditions.
Approximate rental price (per shift):
- truck crane - 13-15 thousand rubles.
- excavator —11 - 18 thousand rubles.
- bulldozer —15—27 thousand rubles.
- dump truck — 12 thousand rubles.
- trawl - 14 thousand rubles. and 150 rubles / km.
Sludge pumps, boring and drilling vehicles, agricultural machines (combines, tractors, seeders, grain carriers and others) belong to the economic special equipment. It is much more difficult to rent such equipment.
Sludge pumps are used to clean wells, cesspools, septic tanks, sedimentation tanks of industrial enterprises, sewage systems. Tractors are required for processing the soil and clearing the area from snow and debris. Working household equipment is also necessary when replacing pipes, laying and repairing roads.
The construction industry is gradually developing. In some regions, residential complexes, private houses, schools, and hospitals are being actively built. In each case, the crews use bulldozers, concrete mixers, truck cranes and other capacities. The technique is most often rented for a certain period, and its owners earn a lot of money. The ready-made business plan for the rental of special equipment with calculations presented below will allow you to assess how profitable this business is.
Features of the special equipment rental business
The main feature of a business idea is the need for large cash infusions. The cost of one unit of special equipment varies within 3-5 million rubles. The entrepreneur should have at least 10 positions of the demanded aggregates at his disposal.
It should be taken into account - this business is influenced by the seasonality factor. In the cold season, most construction projects are frozen, that is, the equipment will be idle. To reduce this risk, it is necessary to purchase some of the items that are always in demand - dump trucks, sewer trucks.
Help. Successful entrepreneurs who do not have enough of their own equipment often lease someone else's equipment on behalf of their company. This approach helps to retain clients and increase the company's profits.
Since you have to work with expensive equipment, you should take care of its safety - there are frequent cases of car theft. We will have to insure the equipment, paying from 1 to 3% of the cost of the capacity of the insurance company.
The investor's goal is to open a company that provides special equipment for rent in a city where construction is actively underway. The equipment will be leased on terms - 50% of the amount is paid upon purchase, the rest of the funds are paid over 5 years at 5% per annum.
The total investment in the project is 44,000,000 rubles, of which 21,750,000 must be paid to the equipment seller at a time. For this, a bank loan will be taken at 10% for 5 years. The amount of monthly payments to repay the bank's debt will amount to 553,750, leasing payments - 453,125. The total amount of payments on debt obligations for the month is 1,006,125 rubles.
The company provides such special equipment for rent: