Many of us are looking to start a business to either replace our current job or to bring in a little extra money on the side. Starting a rental business is a great way to do this. Here are five reasons why you should consider starting a rental business.
1. The Startup Cost Can be Small (Or Nothing at All)
It is totally possible to launch a rental company with very little inventory. When my dad and I began our party rental business, Picnic Table Rental, we bought two or three fold-away picnic tables and drove them around in the back of our old pickup truck to deliver them to customers. After renting them out a few times we had paid off the cost of the tables and were quickly able to save up to buy more.
There is a perception that starting a business requires a lot of money up front. I have not found this to be necessary. Start small and build over time. You might even be able to rent out equipment that you already own, so there would be no start up cost. Say you own a lawn aerator. You are only going to use it a few times a year at most, so rent it out to others nearby who would rather pay a small fee to use yours once a year than pay the full price to buy their own and have store it for the rest of the year.
2. You Can Start It Today
Don’t worry about getting a storefront and putting on a grand opening. You will probably just need a business license to get started (the technicalities vary depending on your location). You can buy an ad in the local newspaper or spend a few dollars advertising on Google or Facebook to let others in your area know what you have available to rent. If you have a product that others are looking for available at a good price, you could be receiving calls for it within a couple of hours.
You may wish to have a physical storefront from which to rent out your product, but it is not necessary right away. If you don’t want others coming to your house to pick up a rental product simply deliver it to them. The goal when you are just starting out is to get some traction – get some experience in the rental industry and build a base of customers that can refer you to others. The beautiful thing is that the internet allows you to do this, and to start making money, today.
3. It Does Not Need to Take Much Time
A good way to make some extra money is to build a deck for somebody over the weekend. A better way to make some extra money is to rent out your tools to somebody who wants to build their own deck over the weekend. Or maybe you rent out your tools to somebody who is spending the weekend building somebody else’s deck for extra money.
Anyway, the point is that you simply have to arrange times for delivery and pickup of the tools, and you can spend the rest of the weekend sitting at your cabin by the lake if you so choose. You are making money for the time that your tools are being used, but you do not have to physically be present the whole time to get paid.
4. No Specialized Skills Are Required
Rental business does not require a special degree or technical skills. You need not spend the time at the local university to learn the ropes because nobody is checking for your degrees before they rent something from you. Provide value to others with an item that they would like to rent, and you are in business.
5. You Can Grow It Quickly
Depending on the type of item that you are renting it should not take long to cover the cost of buying the item by renting it out. If you buy some picnic tables to rent out it is reasonable to think that you can make up the original cost within the first couple of months. Any money coming in after that can be used to increase your inventory if you so choose.
I originally started out renting portable, fold-away plastic picnic tables. They sell for around $200 each. In the early days we would deliver the tables on a Friday night for a Saturday party and then pick them up early Sunday morning and move them to another customer who was having a Sunday party. Locally these tables currently rent for $35 each per day. Three weekends of rental like the one above would pay off the cost of the tables. If there are corporate events during the week that need tables, or large events like a county fair,the cost will be made up even faster.
Have you started a rental business, or are you thinking about doing so? What do you find most intriguing about this business model?