Starting a rental or leasing business isn't as different as any other business in general – in fact, it's much easier than you think. Here are our quick tips that you might be worth to consider:
1. Market Research
Like any other business, you can start the journey with a market study to understand in greater detail who your equipment industry rivals or competitors are. Here's the short guide we find very useful and applies to the rental or leasing industry as well.
Start collecting primary details by conducting short and quick interviews with prospective customers, conducting surveys, friendly questionnaires to a specific group of identified customers they can turn into potential clients or customers.
2. Customer Relationship
Getting feedback from your customers on an ongoing basis, learning and evolving quickly is one of the best strategies to gain confidence in your customers – which also gives them the impression that you really care about them. You can actually apply the Lean Startup Approach which has three pillars of prototyping, experimenting and pivoting, i.e. by pushing your services, getting feedback and improving the service to stay relevant and ahead of your competition.
3. Inventory Assets
If you are in the Fashion Industry and the rental store in a prime location, then keeping the right inventory is the key, so that when your customer browses, they would want to see the latest trendy clothes. You would also like to give your customers a one-time purchase option if they really like the dress and want to keep it for themselves.
In order to price the product, you must know the Rental Industry well enough and should have a rough idea of your targeted group of customers how much they are willing to pay and on the other hand should also know how much your rental rivals are charging. It is not a straight forward approach to match them directly because you also need to consider the mix of other pricing strategies such as working out the costing. You may also look at the Rental Utilization and Time Utilization along with the Return On Investment in order to adjust the rental pricing strategy. Here is the ultimate guide which discusses the Pricing Strategy.
5. Service & Maintenance
Periodic inspections, repairs, maintenance and service is necessary for the equipment rental industry and a great deal of specialization is required from highly competitive individuals to carry out this activity. Depending on the rental or lease agreement or the contract of maintenance, service records should be kept in greater detail, such as the date and time of commencement, completion, duration of completion of the work, replacement of any spare parts, the performance of the work by the supplier, dollar value spent on each repair, etc.
6. Rental Agreement
Learning, drafting or writing the rental agreement which will be the legal document in between you as a Rental Merchant and the customer. This document will get into play when the customer agrees to rent an asset from your Rental Store for a specific period and price, then agreed to return the asset on or before the “Return Date” with the acceptable condition. There are many samples you would be able to find with a simple search in the Google but it would be best that you discuss with your lawyer and get it done in the country you will be operating.
7. Register Entity
It is essential to have the right company structure for your rental business. The chosen business structure will allow you to operate efficiently and meet the required business objectives in the country in which you operate.
Choosing a business name can be a daunting task, but choosing the name that represents your rental service gives you an edge over your rental industry rivals. Write down a few names, then get feedback from people without actually telling them a lot about your business to make sure they can relate to your rental business.
Depending on the country in which you start the Rental Company, obtaining valid permits, licenses and understanding of taxation can be convenient along with bank accounts so that, when your customers make a bank-to-bank transaction against the Rental Advance Payment or settle Rental Invoice via the online banking, the amount should be automatically credited to your Merchant Account.
Last but not least, trademarks or copyrights relating to your logo and the website may also be considered. It is highly recommended that you approach a reputable lawyer and chartered an accountant who will help you with legal and accounting systems.
8. Bonus: Take your business online!!!
I'm so glad you're still reading this article. Now, let's learn how to connect your Rental Business online to a more targeted group of clients. Your customers would actually spend a lot of time online exploring new trends in the rental industry designs on Instagram, Facebook, Pinterest, depending on the segment you're targeting.
Some rental companies or stores start with a simple Instagram, Twitter or Facebook page, and posting on a regular basis is the key to building your brand awareness. But, in fact, you can do a lot of activities to get more rental orders from repeat customers by applying some of the proven strategies.
Stay tuned for a dedicated post about how to get your Rental Business online.
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