Tag Archives: Heavy Equipment Rental Business

Rental contract is a must before you let your machine

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Just like before you buy or sell your property, you make a purchase agreement which states all the information about the purchase in detail, in the same way, it is also a must to form a rental agreement before you let your machine to someone else. Heavy equipment are unquestionably one of the most expensive items that you possess in your construction business and in case you decide to rent it, you got to ensure that at the end of the contract you get the machine in order. Just in case, you do not form a proper rental agreement, there are high chances that the user may use the machine according to his whims and fancies and completely deteriorate the quality of the machine. So by the time you get the heavy equipment back in your possession, you got to spend a lot on the repairs and fixtures part which may not sound quite economical to you.

Rent the equipment to a person who has no issue signing a rental contract:-

It is always advisable that you let your heavy equipment to a person who does not have any issue in signing the rental contract. A rental contract is just a document that speaks about the terms and conditions that both the parties have agreed to before the owner handing the possession of the machine to the other party. It basically protects the rights of both the giver and the user. By forming a concrete rental agreement, there are less chances of the user misusing the machine. For instance, the user will give importance to regular servicing which he might otherwise not have paid much heed to. There is lot of advantages of forming a rental contract as it proves to be a healthy affair for both the parties.

Catch hold of a good attorney to draft your agreement:-

Drafting the rental agreement from an attorney who has ample of experience in this profession is of immense importance. An experienced attorney may suggest few points which you must have not even considered and which are quite important. They may charge you little extra but that will be really worthy. You can keep the same draft and use it again if you rent the machine to the next user. You may need the attorney but do not have to pay him the same fee as you did in the previous occasion.

Go to internet to check few drafts of rental agreement:-

In case you are renting the heavy equipment to a close friend or someone in your family then you perhaps do not have to form a stringent rental agreement. A simple one will do in this case. However, you still got to draft an agreement for which you need some help. It is recommended that you go to google and check few rental agreements over there. It will be really helpful and also you get that for free. You only need the help of an attorney to complete the legal proceedings for which they will charge you a very nominal fee.

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How to grow your heavy equipment rental business

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Construction business like any other kind of business has its ups and downs. There will be occasions when you will have a lot of work to do and at times you may not get any work for months or you may have very limited work to do for which you may hardly require a couple of small equipment to get your work done. So the major question is what one should do who have a bunch of heavy equipment at his disposal. This is a quite a tricky one because he can’t sell them off as he may require those machines as soon as he gets some projects but since he is not sure how soon he can end with one, he also can’t leave his machines idle. In such a situation, the best option would be to rent the machines and earn good rental amount till the time he thinks he anticipates that he will remain out of work.

Simultaneously, if he wishes he can also set up a similar form of business where his sole job would be to rent heavy equipment to the end users. There are many new construction companies that are small in size and also can’t afford to buy machine that are so expensive. They hugely depend on people who are willing to rent their machines at a reasonable price. Now the issue is there is no intermediary who can bring both the parties at a common junction from where they can do this transaction. This gives rise to another form of business; that is setting up a company that deals exclusively with machines that can be taken on rent. So if you start up a business where you are dealing with rental machines, you need to ensure that you have good contacts from people who are willing to give their machines on rent and people who want them on rent.

Do business on internet:-

People love to do internet. For every small thing, they are highly dependent on internet and they get the answers of most of their queries from there. So you can clearly envisage the potential prospect you will get if you set up an online business where you are putting up machines on rent and people who are interested to do business with you contacts you. You give them what they want, take your cut from both the parties and your work is done. You can also register yourself in some online selling store that deals with selling/renting of heavy equipment. Post the images of machines that you can give on rent and wait for someone to reach you.

Internet has the potential to connect you to large number of people. This means that you have a large customer base and can make the most of it from them.

Advertising it in different forums:-

You can also advertise about your business in magazines that are related with the construction, mining and heavy equipment domain. So people who are in this industry will go through your piece of advertisement and give you businesses.

How to start Heavy Equipment Leasing Business

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With increase in construction and mining projects worldwide the demand for leasing heavy equipment has increased tremendously. Starting a heavy equipment construction business can turn out to be a lucrative enterprise considering the fact that you know the tricks. According to the USA based Equipment Leasing Association almost 80 % of the businesses in America requires the heavy equipments. So it is evident that heavy equipment rental contributes largely to a company’s success. Hiring heavy equipment is an attractive proposition for companies as they get their desired equipments without spending huge money. Here are a few steps which would be beneficial for you to start the business of leasing heavy equipment. Read it carefully:

Create a Proper Business plan

Firstly decide whether you want to lease heavy construction equipment like Bulldozers, Tractors, Excavators, Wheel Loaders etc or smaller equipment. Add information on monetary projections and revenue statement including balance sheet and cash flow report. Also do not forget to mention what are your plans to surpass your competitors.

Find a suitable location:

Choose a warehouse or a spacious office to conduct your business. The location should be appropriate for your business and cater to your needs.

Look in to your budget:

Look into your funds and spend it accordingly. It is essential that you purchase the right heavy equipment so that it maximizes your profits and productivity. Do extensive research about the various heavy equipment available in the market as well as online. It will help you to acquire information about the latest equipment with upgraded machine technologies. It will also provide you education about which equipment will cater to your needs and which will be suitable for your business.

Buy the heavy equipment to be used for leasing

It is important to invest wisely in the buying procedure of the heavy equipment that will be leased. Quality should come first as the equipment should be able to endure daily wear and tear. You can avail loans from commercial banks if you do not have adequate money. The equipments should be robust and long lasting so that it can be leased and rented to numerous customers or heavy equipment users.

Make good publicity of your business:

In this era of globalisation and dynamic business scenario competition has become part and parcel of every business. To make sure that your rental business reaches to wider customers it is important that you get good publicity. Advertising on Radio, Newspaper and TV are effective and powerful promotional mass media and will help your business to reach larger customers worldwide. These days internet or online marketing can give you good exposure and that much needed publicity. It will help to create a brand image about your business.

Over the years leasing of heavy equipment have been preferred over buying. Considering it is a capital-intensive business it is a safe option to lease them. The article will give you all the information that you need to commence heavy equipment leasing business.

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Secrets to Boost Heavy Equipment Rental Business

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Heavy equipment rental companies are those organizations that provide the heavy equipments to the different industries in rent. These heavy equipment are normally used in construction purposes. Nowadays the urge of these rental companies increase a lot because of the price rise of the modern heavy equipment.  So if anyone wants to start the business of renting heavy equipments, this piece of writing is helpful for them. Whenever we start any business, it is requisite for us to have a good knowledge about that material. Therefore it is essential to acquire knowledge about the heavy equipments before starting the business.

Tips to Achieve Success in Heavy Equipment Rental Industry 

  • We all know the proverb that old is gold. It is usual that an old rental company is more renowned than a budding company. Therefore it is essential to understand the position of the budding company and how much effort is required to achieve the top rank.
  • It is important for a rental company businessman to check the revenue and payroll expenses weekly.
  • It is requisite for the businessman to examine in monthly basis the cash flow of his business.
  • The administration department of the heavy equipment rental company should be active and updated in monitoring and collecting receivable accounts.
  • Before starting the business it is necessary for the businessman to understand that how much money he can invest.
  • Selling of underutilised equipment helps in boosting the industry.
  • The businessman should use the rental software that assists in solving the problem.
  • There is a strategy that every equipment rental businessman should apply and that is to enlarge the guarantee period of the rental asset.
  • The businessman can save his capital by buying the old modelled equipments or the second hand apparatus.
  • It is important for the equipment rental company to give entire focus on the customers and customer’s service.

Responsibilities of a Heavy Equipment Rental Salesman

  • It is essential for a salesman to greet the customer with smile in his face. The friendly nature of the salesman augments the interest of the customer to know the services provided by the company.
  • The salesman should listen to and understand completely the need of every customer so that the customers never feel dissatisfied with the company.
  • It is the duty of the salesman to try utmost to fulfil the requirements of the customers based on company’s policies and rules.
  • The salesman has to converse with the customer in such a way that at last the customer is totally convinced to accept the contract of renting equipment from the company.
  • The salesman should have complete knowledge about the features and applications of the equipments and also well-informed about the competitor’s service.
  • The salesman should be proficient on the computer so that he can do the computerised work like filling the contractual rental form, writes quotes and shipping orders quickly.
  • The salesman should be well-informed about the features of the new products that are to be provided in rent to other industries. He should be knowledgeable about the promotions and advertisings of his company.

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