![]() Ventilated and spacious, with good natural light.Central location accessible via public transport.When choosing a commercial space, you may want to follow these rules of thumb: You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out a storage space for your equipment. In the early stages, you may want to run your business from home to keep costs low. ![]() You should spread out your marketing to include TikTok, Instagram, Facebook, and LinkedIn. Your target market will either be construction-related companies or homeowners. Remember, the prices you use at launch should be subject to change if warranted by the market. Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. You should aim for a profit margin of about 80%. Check local market prices to make sure you’re competitive. Prices will vary based on the type of equipment that you rent. How much should you charge for equipment rental? You might want to call construction or remodeling companies to see what they are most likely to rent. You should specialize in a certain type of equipment so that you can focus on a certain target market. You’ll just need to determine what equipment you want to rent. What? Determine your products or services ![]() This could jumpstart your word-of-mouth marketing and attract clients right away. You might consider targeting a niche market by specializing in a certain aspect of your industry, such as construction equipment or larger tools for the do-it-yourself-er. With annual revenue of $156,000, you’d make a healthy profit of $125,000. As your business gains traction, you could add 10 more pieces of equipment and rent 15 of them five days a week. ![]() This would mean $50,000 in profit, assuming that 80% margin. In your first year or two, you might have 10 pieces of equipment and rent six of them five days per week, bringing in more than $62,000 in annual revenue. How much can you earn from an equipment rental business?ĭaily rental rates for most smaller tools average about $40. Setting up a business name and corporationĭown payment on a truck to transport equipment Also, make sure that your equipment is properly insured. Costs also include the down payment on a truck or van to transport your equipment.īe sure to have an equipment rental agreement in place that customers must sign, and it should include a liability waiver in case someone is injured by the equipment. These calculations assume that you will start out with large tools such as chainsaws, tile saws, drills, power washers, and so on. Startup costs for an equipment rental business range from $8,500 to $18,000, although the costs vary widely depending on the type of equipment. How much does it cost to start an equipment rental business? ![]()
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