Construction equipment rental business

[alemoney]

you think it's a good idea to open a construction equipment rental business? (earth moving machines, scaffolding....)
How could i do to achive the first costomers?
Thank you

 

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[Jobless]

Please answer some questions:

Is there a lot of new construction in the area? Can you find construction equipment to rent locally? Is population growing? How is the economy doing? Is local construction done by large corporations or mostly small contractors/private homeowners? Is organized crime involved? Do you have connections in the industry? Do you know anything about construction equipment? Will you have insurance? What happens when customers do not pay? How will the equipment be stored and transported?

Can you get a really good deal on construction equipment by ordering a huge quantity, buying used and restoring, importing from abroad? Can you finance the purchase through a bank? etc.

To test the local market, you could call construction companies or place ads. Claim you have scaffolding, excavators or whatever available. If you find people interested (in paying you), then maybe the idea is worth investigating further.

If you can't acquire the equipment yourself, but you are able to acquire customers, you can cooperate with a company that owns equipment.

 

[Niptuck MD]

you think it's a good idea to open a construction equipment rental business?

no its not if you are starting out,

where are you going to get your inventory from? Auctions? will cost a lot for refurbishing dozers and other earth movers..

too saturated, high barrier entry costs and these types of companies go by years of relationships. Construction is a mess now across the board. Those newer companies that need equipment usually find them at auctions and what not... specialized equipment is again done by partnerships and relations that have been built up over the years (decades even)..

I guess you would have to forecast how much new construction is going up in your radius and judge but the numbers wouldnt work at this time of year

 

[Niptuck MD]

Is organized crime involved?

Is this prevalent in germany?
In New york and NJ it USED to be the case (in my own experience). Construction companies where a way for some types to whitewash their 'protection' money haha. Those days are gone mostly (there is still some organized crime at the union level but that is just famlial and will probably die out in a decade haha)
Organized crime however is extremely prevalent in the shipping ports sector (go figure)

 

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[Jobless]

Is this prevalent in germany?
In New york and NJ it USED to be the case (in my own experience). Construction companies where a way for some types to whitewash their 'protection' money haha. Those days are gone mostly (there is still some organized crime at the union level but that is just famlial and will probably die out in a decade haha)
Organized crime however is extremely prevalent in the shipping ports sector (go figure)

OP is in Italy, possibly the southern part, so I think it's a good question to ask

 

[Niptuck MD]

OP is in Italy, possibly the southern part, so I think it's a good question to ask

oh ok, i didnt know they were in Italy as i thought they were in the states. that makes sense now haha

 

[Guest-5ty5s4]

Is there competition? If yes, that is a good sign. Some would say it is a bad sign, but they are wrong. You want there to be a market for the thing you are doing, unless you are a billionaire gambler starting a massive money-losing startup like they do in Silicon Valley.

Look for construction companies in the area and look for existing construction rental companies. Copy them. Start working. Grow. Scale. Hit the CENTS sweet spot.

edit: also, why is everyone assuming you have to go into the big, expensive equipment? small tools are rented too. Shovels, drills, things like that make for a very profitable rental business. There was a family I knew well near my hometown who had such a business for 40-50 years and they thrived in the face of Home Depot and Lowe's.

 

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[BizyDad]

Let's assume you have enough money to start a construction equipment rental business.

If you do not know how to get clients, this is probably not a good place to start your first business.

Pick another business, learn how to do your own marketing, then invest the kind of dollars you'll need for this equipment.

 

[Disciple96]

If you can find a way to disrupt the status quo… making the experience value skewed in your favor while following CENTS, and passing that value on to the customer. It is possible.

The real question is, what can you do for clients that is actually disruptive?

 

[Get Right]

I think it is a great business. I have 3 pieces of equipment that I rent as a sidebar to my other businesses. I make about $3k/month profit with almost no work.

 

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