Friday, 7 August 2015

Setting up your Rental Business

With the development of construction industry and infrastructure, the demand for the equipment used in this field is also increasing. In America alone, 80% of businesses and projects are taking advantage of rented equipment on a regular basis.

The set-up of local manufacturers in Jakarta, Indonesia also set up ways for heavy equipment rentals and sales to a big boom. In Singapore, Axis Capital Group, one of the companies in the same field has a lot in their sleeves since the lion city has set up to be one of the most developed countries in Asia.

Many individuals are also wondering how they could get into the game. Despite the warnings of a very fierce competition between local and foreign manufacturers and distributors, a lot are still willing to risk. How do you set up your own business then?

1. Evaluate the Competition

Prior to launching a heavy construction equipment rental business in your area, it's a smart move to see how strong the competition is. Know them and identify their strengths, marketing practice as well as their weaknesses. Knowing their products they offer and their partnership can be a little over-the-top but it can be an advantage. Review it and compare on your own. You may learn some lessons from their own way of making their business.

2. Learn from Experts

Since you are just a start-up business and the industry is a tough one, you can be humble enough and ask those who had been in the game longer than you are. An owner of a heavy construction equipment rental business in another town may be willing to share their entrepreneurial wisdom with you, after they realize you reside far away from them and won't be stealing their local customers. In that case, the business owner may be more than happy to discuss the industry with you. Based on Axis’ experience, you may have to call ten business owners in order to find one who is willing to share his wisdom with you.

3. Every business needs to be marketed

Market your rental business. Let everyone know you exist in the game. Call on businesses that have need of your equipment. Advertise on radio, in the paper or on TV. As an introductory offer, you can give promotions so you can gain a good customer base. Marketing your business can also give you a good branding.

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