BUSINESS IDEA: MINI-SIZE CONSTRUCTION EQUIPMENT FOR RENTAL

The idea of rental of mini-size construction equipment that is purchased for these purposes by large companies justifies itself profit-wise. For the last years demand on loaders and excavators shows good growth pace. Thus, the small equipment is frequently engaged in:

• Landscaping of countryside plots;
• Construction of private houses and country houses;
• Network and phone cabling;
• Well drilling.

The last sphere is the most demanded for residents of small residential area and keepers of country houses. The application field of loaders is smaller and it is important to be able to find clients here:

• Street cleaning (for this purpose it is mandatory to have a contract with zhilkomkhoz);
• Removal of asphalt layer (this service is in big demand, but such process reduces the operational life cycle of equipment significantly due to high loads);
• Concrete works during construction.

Those who intend to rent small loaders are in minority. Despite the specialized machinery of this type moves faster than caterpillar excavators, its movability is lower. It means that it cannot be used at boggy soils. Provided that, part of works where a small loader is engaged in may be processed with other equipment successfully. Thus, when selecting the optimal type of the specialized equipment that will be demanded by renters, it is better to select an excavator as more universal and demanded. How does the small equipment rental business work? First of all, it should be defined what is the right way to deliver the project. One of the options is to purchase an equipment unit and work with it on your own. If you can afford hiring operators, than there are the following procedures available.

1. Equipment rental through known managers of a third party construction company.
2. Sub rental of other property on the company’s behalf.
3. Purchase of own machinery for rental.
4. Arrangement of area for equipment storage for several companies.

In case of setting up a full own business, the first option is less convenient as it does not guarantee a big number of orders. The second scheme is applicable to you if you have you own vehicle fleet available but some equipment units are missing. Rental of a caterpillar excavator or a loader that have been purchased for this purpose is the most profitable option. But here it faces the money issue. Not all start uppers have money for purchase of expensive equipment provided that the small size equipment is cheaper than a standard one. It is worth remembering about payback period. In case of misfortune this process might take up to 72 months. Implementation of the project in accordance with the forth type is the most complicated task that requires big investments. Its key point is to rent areas in an industrial town zone and place equipment of private and small companies there. This activity requires arrangement of strong security system as such equipment is very attractive for bad people and such cases are very seldom to be solved. In conclusion, it is reminded that purchase of specialized equipment shall be made from credible companies, which are ready to provide with warranties on its goods and after sale maintenance. In other case you are taking risks to bear loss instead of increasing your capital.