Starting a rental business can be a difficult—if it was simple, everyone would do it. However, the benefits are often tremendous. Those who have successfully started one know how deeply rewarding, both financially and personally, it can be.
Before we get into the details of starting a rental business, it’s important to be blunt about the odds. It’s true that many companies, no matter how good their idea might be, end up failing. There are myriad reasons for this. Perhaps the competition in a given area was stiff, or perhaps the plan wasn’t fully fleshed out. Difficulties aside, it’s also true that those who approached their business plan tactically and with keen foresight tend to have more success.
Before you try to take your idea off the ground, there are a few preliminary steps that will prepare you for the road ahead.
Do Your Research
Every good company keeps an eye on their competition. It’s part of the game, and those that don’t tend to fall behind. When you’re researching another company, or the field that you want to begin your rental business in, try to identify which companies are the most successful. Ask yourself what contributes to their success, and what they’re doing that sets them apart from the rest. In the same way, look at the least successful companies in the field. Try to determine why they haven’t found success and use your findings to form a list of things to avoid.
No matter how good your business plan might be, without any hands-on experience or time spent working in the field, you will be at a disadvantage. It’s hard to understate the value of first-hand experience working in a given field. If you have the time and patience to briefly sideline your idea—enough time to work for a company that does what you plan to do—you will gain invaluable experience that will help you once your company launches.
Seek Legal Advice
Every single business, no matter the type, will have to check certain legal boxes. Regulations can prove tricky to navigate, and often, fledgling business owners find themselves overwhelmed by the tax documents and permits that are required.
Many rental companies also require liability wavers—documents signed by customers that guarantee they won’t hold the company liable if anything bad should happen to them—and these documents can be tricky to design. If a business fails to carefully construct a liability waver and something might happen to a customer, they can be held accountable and end up paying astronomical fines.
The best way to avoid this scenario is by seeking legal help. Lawyers can help you navigate a rental history report or draft a tax document. This kind of paperwork should never be taken lightly, and with proper guidance you won’t end up in a pitfall that could damage your company.
Establish a Business Plan
Laying out a business plan can be the make-or-break step when it comes to starting your rental business. A business plan should account for all of the factors that relate to your product, your finances, and your predictions for growth.
Every successful business plan has a few common elements. First, you should include a company description—something that highlights the way you will be different from your competitors and achieve profitability. Then, you should attempt to map out your financial targets, your business costs, and come up with a very fine estimate that will help guide your decision making. At the end of the day, your company will live or die based on your ability to turn a profit. This kind of planning will help achieve your goals, and if you’re falling behind, it will help you make the necessary adjustments.
Spread the Word
By using resources like social media, you’ll should be able to spread the word about your rental business. Leverage these platforms by paying for sponsored content—ads which promote your business beyond what you would be able to achieve through your own networks—and ask your friends and business partners to share your company within their networks. Try to be punctual and engaging with your written content, and people will remember you long after your ad has left their screen.
The road to running a successful rental business can be long, but if you follow a few key steps, you will be able to shorten the path and set yourself up for future success.