Management- a controllable variable impacts the success of a business greatly. In terms of time, inventory, or even customer relations, how activities are managed decides a company’s future to a certain extent.
Of course, uncontrollable variables, especially market forces, play a vital role in breaking even or driving revenue, but that is a discussion for another day.
For an entrepreneur, the focus must remain on finding ways to grow and scale their business. For instance, the goal of an equipment rental business may be to create a solid base of repeat customers, break even the first year, or expand into more than one city.
While these may seem like goals almost all start-ups aim for, it is different for each business depending on the product or service they are providing.
Growth and Scaling in the digital world
Taking a page out of Brian Chesky’s (CEO Airbnb) book, a rental business must prepare for the aftermath of the pandemic. The return of tourism, travel, and vacations, in general, will most likely open venues for a car and equipment rental business, isn’t it?
While this assumption rings true, it remains an assumption. What if all this planning to scale and grow your business drives you towards bankruptcy? We have seen it happen. What with Host maker and Stay Alfred losing everything in the wake of “important” investments?
So how does a business tackle uncertainty? By using all available tools to their advantage. Fortunately, this is the 21st century, and business management activities are in the palm of your hands.
All you need is the right software, a communication portal, and the drive to grow for your business to be successful.
How to Grow and scale your Rental Equipment business
Once your business starts doing fairly well, you are bound to ask, what next? The growth and expansion seem like the obvious next step. But it is easier said than done. Growing your business is just as complicated as starting it in the first place.
A new demographic may not respond to your offering the way your current clientele does, or you may not be equipped to handle the volume of consumers efficiently. These are real scenarios that ultimately affect the sustainability of your business in the long run.
Therefore, careful planning and targeted resource acquisition are necessary. Following are things you can do to scale and grow as an equipment rental business.
a. Project management
As discussed earlier, management is the key to success. Companies often rely on business management functions to create a plan of action when growing as a business.
The trick is to treat your scaling activities as a project in itself. Some businesses mistake relying on projections and statistics that they created when first beginning.
This can completely derail your company’s potential to grow. You are not beginning from scratch but rather from a foundation where you have experience, information, and historical data.
Once you have established trends, revenue patterns and understood the supply and demand for your vehicles and equipment rental business, you can move on to creating a project management plan.
This will include the following phases:
When brainstorming the concept, you can build on the existing service by creating a new charter and initiation plan.
· Definition and planning
This phase includes allotting part of your capital towards the expanding venture and defining a budget and designing a risk-management advisory.
In addition to this, this part of the plan must include communication methods, a work breakdown schedule, and the scope of the rental business under new circumstances.
· Execution and Launch
This must include details on how you will execute your business plan. Aspects such as rental equipment inventory management, communication with customers, how you will book the orders, and projections must be included in this phase of the plan.
This should be followed by standard operating procedures and key performance indicators for your business based on changing industrial standards.
· Quality control and performance evaluation
The performance evaluation must be based on how many goals and projections have been achieved. Moreover, if you could not reach your targets, what measures can you take to do so?
Are expenses outweighing the revenue significantly? If so, what are changes you can make to your business model?
Being prepared for such possibilities gives you control over your growth as a business. KPIs can prevent a scaling company from premature bankruptcy.
· The Next phase
While traditional project management ends at project closure, for an expanding business this is a phase where they can expand further.
For an equipment rental business, this is a perfect opportunity to build industrial relationships such as partnering with tourist vacation rentals, hotels, and resorts to provide vehicles and equipment for rent.
b. Arrange Capital
Using the project management approach will give you a number to work with. Once you have finalized the sum you will need to scale your service, you can move on to procuring this capital.
The most common way to do so is by using up profit for the new venture. You can take the revenue of your existing business, eliminate overhead and payables and find the exact profit amount.
This profit can be used to invest in a facility, more inventory, and a new team that will handle affairs at the new location.
If not, you can always search for investors or go for a business loan to inject funds into your business.
c. Sales, Sales, Sales
Without enough orders to sustain your business, there is zero possibility of growth. Therefore, it is crucial to invest in marketing, content management, promotions, and resources that generate leads for your business.
Partnerships are also valuable for an equipment rental business in terms of generating sufficient demand. Besides this, a system must be in place to manage the volume of orders you are expecting when growing as a business.
d. Technology is your Best Friend
If you know someone who tells you how it was done “back in the day” and how they “made it” without these fancy gadgets, cut them out of your life!
Today there is no “made-it” without technology. Also, why not make things easier for yourself by buying rental software to manage things for you?
Do you really need A software for your Equipment Rental business?
In a word yes. For an old school business transitioning from manual excel sheets, signed documents and telephonic communication may be cumbersome. But, for a start-up that just ventured into the world of equipment and vehicle rental business, the right software can be a tremendous asset, here’s why:
ü Automatically Optimized Website
Purpose-built rental software optimizes your website automatically to improve visibility on search engines. Moreover, your potential customers can browse through your inventory with ease and find what they are looking for.
You don’t have to pay for additional upgrades to your website with changing search engine algorithms.
If you haven’t got on the customizable bandwagon yet, then you aren’t going to survive in the current business dynamic. Software designed for your equipment rental business will give your customers access to additional features that only your business offers.
For instance, fuel top-up, helmets, and other accessories can be added to the order directly from your website. This will make your business stand apart from your peers.
ü Streamlines Business Management
And we are back where we started. It is all about management and for a rental business, getting things in order is quite an ordeal. It is a business that includes returning “purchases” and managing all necessary documents and communication is overwhelming.
Well-designed rental software will streamline business management activities, documentation, and communication for you. It can also give your customers the freedom to sign said documents online and to upload proof of identity directly.
In addition to this, you can create a platform where renters can view what is and isn’t available during their preferred hours.
These are features a vehicle and equipment rental business can make the most out of. Given that you work with a software business that can bring your business to the 21st century without a hitch.
With customized software, you can find customers, remember appointments, jot down bookings, access previous bookings, search for customer history and do so much more for your company.
You can access rental numbers with just a few clicks. You see how many leads have been generated, how many converted, website traffic, and the profit you have made over a given time.
Everything is organized based on the transactions your rental equipment business makes. You can choose a dashboard feature that shows everything under designated expenses, costs, and profit.
Grow and scale your rental equipment business with the right people
Rides Rental software is committed to providing you convenience and efficiency under one roof. We will program software that never fails and gives you access to business management tools that are purpose-built for your business.