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Equipment Rental Business Plan PDF Example

• February 28, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful equipment rental business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your equipment rental business’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of an equipment rental business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the service industry, this guide, complete with a business plan example, lays the groundwork for turning your equipment rental business concept into reality. Let’s dive in!

Our equipment rental business plan is structured to encompass all critical components necessary for a detailed strategic approach. It outlines the operations of our rental service, our marketing strategies , the market environment, competitive analysis , our management team, and financial projections.

• Executive Summary : Offers an overview of your equipment rental business’s concept, market analysis , management, and financial strategy.
• Company & Location: Describes the business’s operational setup, storage facilities, and why its location benefits the target market .
• Equipment & Pricing: Lists the types of equipment available for rent, including pricing structure and any special rental terms.
• Key Stats: Shares industry size , growth trends, and relevant statistics for the equipment rental market.
• Key Trends: Highlights recent trends affecting the equipment rental sector, such as technological advancements or shifts in consumer behavior.
• Key Competitors: Analyzes main competitors in your area and how your business offers a competitive edge.
• SWOT: Conducts a Strengths, Weaknesses, Opportunities, and Threats analysis tailored to the equipment rental industry.
• Marketing Plan : Develops strategies for promoting your equipment rental services and building a loyal customer base.
• Timeline : Establishes key milestones and objectives from the initial setup through the first year of operation and beyond.
• Management: Information on who manages the Equipment Rental business, detailing their roles, experience, and qualifications in the industry.
• Financial Plan: Projects the business’s 5-year financial performance, including revenue from different types of equipment rentals, operational expenses, and profitability estimates.

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Equipment Rental Business Plan

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Executive Summary

The executive summary for your equipment rental business plan provides a succinct overview of your company, detailing the types of equipment available for rent, its market positioning, and the specific needs it addresses within the industry. It should outline the variety of equipment offered, the business’s location, size, and a snapshot of daily operations.

This section will also delve into how your equipment rental business will carve out its niche in the local market, including an analysis of direct competitors in the vicinity, identifying who they are, and highlighting your business’s unique selling propositions that set it apart from these competitors.

Moreover, it’s essential to include information about the management and co-founding team, elaborating on their roles and how their expertise and experience contribute to the business’s success.

A summary of your financial projections, including expected revenue and profit margins over the next five years, should also be included to provide a comprehensive view of your business’s financial outlook.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

For an equipment rental business, the Business Overview section can be effectively divided into 2 main segments:

Company & Location

For example: Our equipment rental facility boasts a streamlined, customer-friendly environment, designed to make equipment selection and rental a breeze. Conveniently situated with easy access to major business districts and event locations, our site offers ample parking and is near key transport routes, making it an ideal choice for a wide range of customer needs.

Equipment & Pricing

For example: We offer an extensive array of rental equipment, from heavy-duty construction machinery to essential event gear, all maintained to the highest standards for reliability and performance. Our pricing is competitive and reflects the premium quality of our equipment and service, with flexible rental terms to suit various project timelines. Special incentives, such as loyalty discounts and tailored package deals, are available to enhance value and foster long-term customer relationships.

Make sure to cover here _ Company & Location _ Equipment & Pricing

Market Overview

Industry size & growth.

In the market overview for your equipment rental business plan, begin by analyzing the size of the equipment rental industry and its potential for growth. This examination is vital for grasping the market’s breadth and pinpointing avenues for expansion.

Key Market Trends

Next, delve into the prevailing market trends , such as the growing demand for specialized equipment rental in sectors like construction, events, and film production.

Highlight the shift towards flexible rental solutions that accommodate project-based needs and the increasing preference for renting over purchasing expensive equipment to reduce capital expenditure. For instance, underline the surge in demand for the latest technology and environmentally friendly equipment options.

Key Competitors

Lastly, assess the competitive landscape, which spans from large national chains to local, specialized rental businesses, and even peer-to-peer rental platforms. Focus on what sets your business apart, whether it’s through superior customer support, a wide range of available equipment, or niche offerings tailored to specific industry needs.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

First, perform a SWOT analysis for the equipment rental business, emphasizing Strengths (such as a comprehensive inventory and superior customer service), Weaknesses (like significant upfront investment and market competition), Opportunities (for instance, the increasing preference for renting over buying equipment), and Threats (such as economic shifts that could reduce demand for rental services).

Marketing Plan

Next, devise a marketing plan that delineates strategies to attract and retain customers through targeted advertising, competitive pricing, an engaging online presence, and active participation in industry-related events.

Finally, draft a detailed timeline that specifies key milestones for the equipment rental business’s launch, marketing initiatives, customer base expansion, and goals for scaling up, ensuring a strategic approach to growth and development.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the equipment rental business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the equipment rental toward its financial and operational goals.

For your equipment rental business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your equipment rental’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs , and capital expenditures.

For your equipment rental business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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Construction Equipment Rental Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Service Industry » Equipment Rental Business

Are you about starting an equipment rental company? If YES, here is a complete sample construction equipment rental business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a construction equipment rental business. We also took it further by analyzing and drafting a sample construction equipment rental marketing plan template backed up by actionable guerrilla marketing ideas for heavy equipment rental businesses. So let’s proceed to the business planning section.

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According to a facts report from the Equipment Leasing Association of America, close to 80% of businesses in the country rented or leased equipment on a daily basis, thereby making the business very lucrative for anyone intending to start the business.

The reason why many businesses are renting equipment is due to the fact that they do not consider it necessary or worthwhile to purchase heavy equipment for use either due to budget constraints or the fact that buying the equipment would be a waste of resources as regards to leasing it.

Due to the fact that this is a capital intensive business, you would need the input of an expert who is knowledgeable in the industry and who would carry out an analysis on your company in relation to your location to help you determine if going into the business would be a wise decision.

If the odds are for you, the consultant would then help draft strategies that would help make your business have an edge over others that you might likely be competing with in the same location or even industry. Asides from getting a business consultant to help you determine if going into the business is worthwhile, writing a business plan is another task you would need to undertake.

Below is a sample of an equipment rental business template that should guide you towards writing your own business plan for your equipment rental business;

A Sample Construction Equipment Rental Business Plan Template

1. industry overview.

The equipment rental industry according to IBIS World has several downstream businesses or industries that are its customers such as railcars, aircrafts, ships and drilling machineries.

The revenue from this industry amounts to $38 billion and the projected growth from 2011 to 2015 for this industry was pegged at 4.8%. There are more than 18,000 equipment rental businesses in the united states of America employing more than 78,000 people.

The last economic recession caused a slide in the industry’s revenue as few companies rented equipment during this period. However, according to statistics, the downstream sector will strongly drive the industry from 2016 to 2022.  Also, it is stated that construction and transportation industries will benefit from this strong projection in the next five years.

The equipment rental industry especially the heavy equipment is heavily fragmented as the four largest players in the industry, according to the industry’s 2016 revenue, account for close to 20.2%; other players in the industry operated in specialist markets or in disperse geographical locations.

However, as activities have dropped in the construction and transportation industries, it has caused many small players to exit the industry.

As at 2014, the construction equipment rental market globally was valued at over $4 billion and has been anticipated to go over $84 billion by 2022. This is due to the fact that construction activities were on the increase globally, especially as governments were investing in emerging economies.

The rental market for material handling has been anticipated to grow at 13% from 2015 to 2022 due to the fact that focus has been increased on automated production processes so as to efficiently use raw materials, resources and energy.

Demand for advanced machinery with eco-friendly as well as low maintenance features has continually grown and is likely to surge past demand for conventional equipment in the coming years. Also, another thing that responsible for a high adoption of rental products is the fact that consumers now have high purchasing power with a higher preference for rentals.

As at 2014, the earthmoving rental machinery market was valued at over $19 billion and was expected to see a significant growth of more than 12% by 2022. This is due to the fact that emerging economies have increased the demand for heavy equipment.

The equipment rental industry is very capital in nature and businesses in the industry are usually involved in mergers and acquisitions, strategic alliances and joint ventures so as to increase their penetration to their target markets.

2. Executive Summary

Tack Rentals (TR) is a standard and the exclusive go-to equipment rental business based in Atlanta – Georgia, USA and intends to rent its equipment to individuals and businesses. We also intend to sell some of our equipment and also become distributors for some major equipment manufacturing companies all over the United States of America.

Our vision as a company is to be the preferred equipment rental company here in Atlanta and also be amongst the top 10 equipment rental businesses in the United States of America by 2025. To ensure that we achieve the following vision and objectives, we intend to ensure that we build the best business structure.

Our equipment rental business is strategically located at Peachtree Street, NE in Atlanta and provides the required convenience for our various customers in easily locating us to make enquiries, buy or rent from us. Also, our online presence makes it quite easy for those who love shopping online to locate us, not only are we located on top of various search engines, we also respond promptly to any online enquiries.

Our equipment are of high quality and are designed to last for as long as possible, this is because we procure these equipment with our customers in mind, and we would want that the equipment they get from us carry out its tasks efficiently.

Our management team is the best that can be found as we carefully sourced for those who not only had an understanding of the industry, but who also believe in our core values and were willing to work to ensure we reached our attained height.

Our customer care teams are very knowledgeable about the trends in the industry and have been trained to understand the wants of our clients and ensure that it is fulfilled. All complaints are speedily attended to and resolved by our able customer care executives.

We know how important is it to garner promotion for a business and so we have drafted effective publicity strategies that will ensure that the business gets the awareness it deserves here in Atlanta as well as all over the United States of America.

Finally, our Chief Executive Officer, Mr. Rocha Taylor is one who has the necessary expertise to ensure that the business attains its goals and objectives as he has more than 10 years experience in the rentals industry and will therefore bring in some strategies that will ensure we come up tops above our various competitors.

3. Our Products and Services

Tack Rentals (TR) intends to deal in all sorts of services to its various customers in the target market. Our niche makes it very easy for us to be the exclusive equipment rental business here in Atlanta, Georgia.

However, instead of just providing core services to our customers, we intend to add other services to in order to gain more customers while also creating multiple sources of income. Our aim is to make profit as we legally can and as is permissible under the laws of the United States of America. Therefore some of the services and products we intend to offer are;

• Rentals of heavy equipment such as bulldozers, excavators , trenchers, and backhoes
• Sale of chainsaws, tillers and augers
• Distributor for several equipment manufacturing companies
• Equipment repair
• Consultancy and advisory services

4. Our Mission and Vision Statement

• Our vision is to be the exclusive equipment rental business here in Atlanta; and amongst the top 10 equipment rental businesses in United States of America by 2025.
• In order to achieve our goals and objectives, we intend to create a niche for ourselves in the area where we operate, so as to have little or no competition. We also intend to grow and expand as a company till we are known all over the United States of America

Our Business Structure

Having the right business structure is very important to us as a business, because we know that getting the business structure right will set us on the right path towards attaining success as an organization. It is for this reason that we would sources for and hire only the best employees that will help take our vision from where we are to where we intend to be.

We know how important it is to have the right management team that not only understands the core values of the company but also have the right knowledge and expertise to enable the company achieve its goals and objectives.

We are willing to pay all our employees well and also ensure that they are adequately trained so that they are able to handle the various responsibilities that would be assigned to them through our different sales and products offering. The training would also give them enhanced skills as well as increase their productivity for the overall benefit of the company.  Therefore, below is the business structure we intend to build at Tack Rentals (TR);

Chief Executive Officer

Rentals and Leasing Manager

Human Resources and Admin Manager

Maintenance Manager

Purchasing Manager

Marketing Executives

Accountants

Customer Executive Officers

Truck Drivers

Security Guard

5. Job Roles and Responsibilities

• Makes strategic decisions for the company
• Reviews company’s policies and growth and tweak ineffective strategies
• Meet with high-powered clients on behalf of the company
• In charge of all equipment that are rented by customers and ensure its proper documentation
• Checks the condition of outgoing and incoming equipment
• Liaises with the purchasing and maintenance managers to ensure that equipment procured is in line with industry trends
• Sources for and recruits the best employees for the available positions in the company
• In charge of employee training and welfare
• Conducts periodical performance appraisals on the employees on behalf of the company
• Checks the quality of new equipment and machineries
• Carries out light repairs on faulty equipment on behalf of the organization
• Works with team to effect repairs on customer’s equipment
• Sources for reliable vendors and suppliers on behalf of the organization
• Gets quotes for equipment and makes findings to ensure the company gets the best quote
• Liaises with the accountant to ensure that the right funds are transferred for the right equipment
• Conducts an in-depth analysis of the market to determine ways to penetrate the market
• Carries out one-on-one marketing on behalf of the company
• Reviews and discards ineffective marketing policies
• Prepares all accounting and financial information on behalf of Tack Rentals (TR)
• In charge of channeling funds for the procurement of equipment
• Prepares tax report for onward submission to tax authorities
• Possess updated information about the general equipment rental industry as well as Tack Rentals (TR)
• Attends to customers enquiries and complaints and ensure that they are promptly resolved
• Keeps and update an accurate customer database on behalf of the organization
• Ensures that the equipment arrives at its destination on time
• Inspects the offloading and on-loading of the equipment
•  Carries out light maintenance on truck
• Ensure that the premises is secured at all times
• Checks incoming and outgoing equipment and ensures that all documentation are in order
• Monitors the surveillance cameras to check if anything is amiss
• Ensure that the premises are kept clean before and after work hours
• Clean out the equipment store so as there won’t be buildup of dirt and grease
• Carry out any other tasks as might be assigned by the Admin Manager

6. SWOT Analysis

The SWOT ( Strength, Weakness, Opportunities and Threats ) analysis is usually a method that is used to evaluate the chances of a business’ survival. It is a necessary tool used to help the business understand and also carry out the best decisions on behalf of the organization.

In conducting a thorough analysis on our chances in the equipment rental business, we hired a reputable business consultant here in Atlanta who understands the business thoroughly and would evaluate our strengths and opportunities and use it to determine if they were worth more than our threats and weaknesses.

Below is the result from the SWOT analysis that was conducted on behalf of Tack Rentals (TR);

We have several strengths in our advantage and one of such is that we have competent employees that know how to handle our customers and also how to anticipate their needs, which is what our customers love most about us. Also, the fact that we can be found online and are actually responsive to enquiries and requests is one of our strengths.

Our brand is widely recognized in Atlanta which has led to more customers for us. Finally, our Chief Executive Officer, Mr. Rocha Taylor, has over 10 years experience in the equipment rental industry which is of a huge benefit to the business.

The fact that many businesses are into equipment rentals is a huge weakness for us as this would mean we would need to intensify efforts to get a good share of the target market that is already saturated. We however have strategies in place that would enable us make a huge impression on the public.

• Opportunities

The opportunities that abound to us in this industry stem from companies that will be looking to rent our equipment on a long term basis, thereby causing an increase in our revenue. There are also loads of people looking for advices on what equipment is best for use and whether they should rent or buy; these are opportunities we intend to use to our full advantage.

The threats we are likely to experience in this industry are from the arrival of new competitors who might be looking to grab a share of our target market by offering cheaper prices than what we were offering. Also, another threat we are likely to face is in having an economic downturn which will affect the rate customers lend equipment from us.

However, every business knows that it is likely to encounter threats during the start and running of the business and as a serious business we are fully prepared to handle every threat.

7. MARKET ANALYSIS

• Market Trends

The equipment rental business is one that has always been in demand and this is due to the fact that even though several individuals and companies require the use of heavy machinery to carry out certain tasks, they do not want to buy or have the means to buy such equipment.

Also, some of the heavy equipment are used few times by the end users and so there is no need to waste money purchasing these equipment only to use them once or a few times, hence the need to rent the equipment from rental companies.

However, any entrepreneur looking to go into this business must ensure that they think up innovative ways at earning money and staying on top of competition.

Equipment rental companies these days do not only rent out equipment, they are also involved in the sales of heavy and light equipment. Others also become distributors of some of this heavy equipment for equipment manufacturing companies.

This is so that they can gain a huge share of the target market, and keep generating revenue that would give them a healthy bottom line.

The use of the internet has made things quite easy for equipment rental companies, as most have built websites that has Search Engine Optimization (SEO) so that they could be amongst the top searches for customers who searched for equipment rental companies online.

There is also the trend of using online directories or paying Google so as to be able to appear in different forums, websites and blogs that register for Google’s Adsense. Asides this, owners of this kind of business always network with manufacturing companies as well as other stakeholders in the industry to help increase awareness about them.

8. Our Target Market

There are all sorts of people who make rent equipment for several purposes; this means that we cannot restrict our customers to a certain group as we have a huge target market to cater to here in Atlanta, Georgia.

Asides from having a large number of potential customers, we are also strategically located here in Atlanta, and have also chosen several other strategic locations in which to create awareness about Tack Rentals (TR). However to help us get a better perspective of our target market, we have carried out a market research that will not only help us understand their demands, but will also help us see what they would be expecting from us.

We therefore are in the equipment rental business to cater to the following group of individuals and industries according to our market research:

• construction industry
• agricultural industry
• Mining Industry
• Aviation industry
• Individuals and Businesses dealing In forestry
• Individuals and Businesses dealing in medical equipment
•  Waterways
• And other customers who generally lease heavy and light equipments for various activities

Our competitive advantage

Every business that intends to make profit knows that it is likely to have competitors and so it would be wise for such a business to set out competitive strategies that would ensure that it has an edge over its competitors either in the same location or in the whole industry.

With this, Tack Rentals (TR) has several competitive strategies which it intends to deploy against its competitors in the industry.

Our intention of being amongst the top ten equipment rentals in the United States of America and the only exclusive go-to equipment rental company here in Atlanta, Georgia means that we fully intend to deploy several strategies to ensure that we achieve this objectives, whilst maintaining a healthy bottom line.

Our different equipment are of high quality and so would not give our customers any hitches once they are being rented out. Not only do we stock the best equipment, we also ensure that our equipment are given a thorough inspection before and after use by our highly competent maintenance team.

Our customers would have the option of using our support personnel whenever they lease our equipment, this is so that any hitches that crop up during the use of our equipment would not only be speedily resolved but also recorded accurately for use by the company for future purposes.

Lastly, we offer the best customer care, the type that cannot be found anywhere in other similar start-ups in the industry. Our customer care executives are deeply knowledgeable about trends in the industry and are highly trained to handle our different types of customers no matter their temperaments.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Tack Rentals (TR) is an established company in Atlanta, Georgia whose aim is to offer several services to its customers based within its target location.

We intend to give our customers several niche services that will ensure that they do not have to patronize our competitors, and that will also earn us income from various sources. Therefore, Tack Rentals (TR) will therefore generate income by offering the following services;

• Rentals of heavy equipment such as bulldozers, excavators, trenchers, and backhoes

10. Sales Forecast

The equipment rental business is such that will always grow especially as most businesses in America cannot go without leasing one or several equipment every day.  Our strategic location in Atlanta – Georgia has made us quite optimistic of generating revenue and making profit from the second year of operation and from which we can then grow and expand our business from there.

We conducted a critical analysis of our chances in the equipment leasing industry based on data and information that was gathered from several similar start-ups in the industry and based on our location as well. It is from this critical analysis that we were able to come up with the sales projections.

Below are the sales projections for Tack Rentals (TR) based on factors such as the location, positive state of the economy and lack of a competitor arriving during the stated period;

• First Fiscal Year-: $800,000
• Second Fiscal Year-: $1,600,000
• Third Fiscal Year-: $3,200,000

N.B: The above sales projections were carried out based on several facts and information from the industry. The above projections are based on the facts that there will be no change in the factors listed above. However, should any change occur either positively or negatively, it is likely to have an impact – increase or decrease – in the projected sales figures.

• Marketing Strategy and Sales Strategy

Even though the equipment rental business is a lucrative one, there are still several businesses within this industry collapsing and all because they did not carry out adequate marketing. Marketing is the process by which businesses research on and identify their target market so as to be able to draft the necessary strategies that would be effective on the identified target market.

Marketing is the major source by which a business makes its revenue to sustain and eventually expand it. Therefore, we have conducted a thorough marketing research on our target market and have identified several ways we would attract customers to our equipment rentals business.

To aid us in carrying out this market research, we sourced for the services of a reputable marketing consultant who is knowledgeable in this field to help us look over our market research and not only review it but also draft the right strategies that would see us standing out in our marketing campaigns.

Empowered to work with the hired marketing consultant is out marketing team, who understanding our corporate core values and foundation have to ensure that each marketing strategy promotes the company positively to existing and potential customers while also generating the intended revenue for the company.

We do not also intend to dismiss the importance of technology as we intend to incorporate it into our marketing strategies.

We are fully aware of the power of the internet and will deploy all means to ensure that we maintain a strong online presence that will be helpful when marketing our equipment rental business. Therefore, the marketing and sales strategies we intend to adopt for Tack Rentals (TR) are;

• Ensuring that we introduce our equipment rental business to all our target markets in our location by sending out formal letters that include our rates and a powerful brochure to the management of each companies
• Ensure that we thoroughly advertise our equipment rental business in local newspapers, magazines as well as on radio and television stations
• Make use of direct marketing for our equipment rental business
• Use our official website to market our equipment rental business
• Use our social media platforms – Facebook, Twitter and LinkedIn – to massively market Tack Rentals
• Ensure that we are listed on online as well as offline directories

11. Publicity and Advertising Strategy

Publicity and advertising is a very important aspect for any business that intends to play an active role in generating revenue whilst also creating the necessary awareness it needs for its brand. Due to this it is very essential that we carefully draft our publicity strategies that would project our image positively to our customers – existing and potential.

We have also hired a brand strategist who is quite knowledgeable about the industry and knows which strategies would likely be beneficial to us in the short and long run, to help look over our strategies and help to modify or draft new ones that we would implement in ensuring that Tack Rentals (TR) is not only known here in Atlanta but in other surrounding cities as well.

Therefore the platforms we intend to use in promoting and advertising Tack Rentals (TR) to our various customers are;

• Ensuring that we pay for Google Ads to help advertise our business on all web pages, forums and blogs that is guaranteed to give us the maximum exposure
• To sponsor relevant school programs that is related to equipment in our local community
• To place adverts in local newspapers, magazines as well as on radio and television stations
• To use the social media platforms, such as Facebook, Twitter and LinkedIn to massively educate people about the advantages of patronizing Tack Rentals (TR) as well promoting us as well
• To ensure that our billboards are strategically and conspicuously located all around Atlanta, Georgia
• To ensure that we distribute our handbills and paste our fliers in strategic locations

12. Our Pricing Strategy

We know how important pricing is to a company and so we intend to take our pricing strategy very seriously when it comes to setting the rates and prices for our customers.

We would give our customers an affordable price or rates for our equipment, and will ensure that the price given fetches us a good margin that will cover not only our overhead but our running costs as well. However, in order to attract customers to our business and make them loyal to us, we intend to reduce our rates during the first few months (3 months) of business.

The rates would not however be lowered to the point that they affect our business negatively, we would only be running on low margins. We would however raise our prices later so as to conform to what is obtainable in the rental industry.

• Payment Options

The days where there were only one or two ways by which customers could pay for services or a product is long gone as there are several available platforms available to suit the different needs of the customers. At Tack Rentals (TR), we are a business that understands that our customers might have different preferences and so we have different payment options available.

Therefore, the payment options we intend to offer all our various customers are;

• Payment via cash
• Payment via check
• Payment via bank draft
• Payment via Credit Card
• Payment via Point of Sale (POS) Machine
• Payment via online payment portal

The above payment options were carefully chosen by our bank and we have been assured that they will offer our customers no problems during transactions.

13. Startup Expenditure (Budget)

The equipment rental business is a capital intensive business especially if one intends to set up a business that is of a certain standard.

In generating start-up capital for our equipment rental business, it should be noted that the bulk of the capital would go into purchasing these heavy equipment, while the other heavy spending will be on paying employee salaries and bills. Therefore the key areas where we intend to spend our start-up capital on are;

• Total fee for registering the business in the United States of America – $750
• Obtaining of licenses, permits and accounting software as well as other legalities – $3,250
• Cost of hiring business consultant – $5,000
• Insurance coverage (general liability, asset insurance, workers’ compensation) – $3,000
• Cost of purchasing several equipment for business start-up – $600,000
• Operational cost for the first 6 months (employee salaries and utility payments) – $200,000
• Cost of leasing and renovating a facility for use for at least 1 year – $100,000
• Marketing expenses (grand opening party promotion and general marketing) – $10,000
• Other start-up expenses (furniture, stationeries, computers, printers, and phones) – $9,000
• Cost of store equipment (security, and ventilation) – $3,000
• Cost of purchasing two heavy duty transport trucks – $155,000
• Cost of launching a website – $1,000
• Cost of throwing a launching party – $5,000
• Miscellaneous – $10,000

From the above analysis, we would need the sum of $1,100,000 in order to not only start but successfully run our equipment rental business here in Atlanta, Georgia. It should be noted that the bulk of the capital will go into buying the heavy equipment that would be rented out to various customers as well as payment employee salaries and lease and furnish the facility we intend to use for our business.

Generating Funding / Startup Capital for Tack Rental Business

Tack Rentals (TR) is owned by businessman Mr. Rocha Taylor, who has over 10 years experience in the industry. In seeking for funds to start this business, Mr. Rocha intends to source for funds from different sources including the bank and external investors, so that his business can start off successfully. Therefore the areas where he intends to generate start-up capital for Tack Rentals (TR) are;

• Generate part capital from sale of personal stock and properties
• Approach the bank for a loan
• Approach a private investor for a loan in exchange for part equity

N.B: Mr. Rocha Taylor was able to generate $100,000 from the sale of personal stock and properties. The bank in which Mr. Rocha Taylor approached for a loan of $500,000 has given approval after verifying his documents. The loan from the bank will be repayable in 7 years with a 3% interest rate.

Mr. Taylor has additionally approached a private investor for the sum of $500,000 in return for 3% equity; the deal is nearly being done as both parties are waiting for the lawyers to fine-tune the agreement.

14. Sustainability and Expansion Strategy

A business that has no sustainability and expansion strategies has no future, and so because we have established our business not only to make profit but have a future as well, we intend to ensure that we implement our sustainability – employee competence, customers’ loyalty – and expansion – reinvestment – strategies to our advantage.

One first aim of sustaining our business is to ensure that we employ those who are very competent and have a good understanding of how to run the business. In a bid to ensure that the business runs smoothly, we intend to pay our employees well exactly what is obtainable in the industry for start-ups such as ours, and ensure we provide them with a great welfare package.

We intend to share our profits with our management team especially those who have shown a great commitment and zeal for at least a 3 year period; and we also intend to provide incentives by promoting lower end staff after conducting periodical performance appraisals.

Retaining our customers is such a big deal for us and we intend to ensure we deploy all the strategies that will make our customers stick to us.

We intend to offer them excellent customer care, by always listening and attending promptly to their complaints and also responding to whatever enquiries they might have. We will also reward loyal customers by providing discounts every now.

Having a healthy bottom line is important and so we would ensure that we re-invest part of our profit back into the company so that we do not need to source for external sources to fund our company all the time. We believe that once we apply these strategies, we would be able to not only sustain but also expand our equipment rental business as well.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting feasibility studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
• Purchase of trucks: Completed

• Resources for Entrepreneurs > Opening a Business > How Do I Start a Business

Opening a Plant Rental & Leasing Business

How Do I Start a Business

Starting a plant rental and leasing business is your ticket to owning a good, stable business but it's important to plan out the business in detail before you start. Here is a friendly, comprehensive guide on the startup process.

Thinking about opening a plant rental and leasing business? We tell you what you need to know to get started.

Creating a Business Plan for a Plant Rental & Leasing Business

One of the worst mistakes you can make as a small business owner is to launch your company without having written a business plan.

A good business plan defines the game plan. The absence of an effective business plan inevitably results in impulsive leadership, limiting your plant rental and leasing business's ability to succeed long-term.

The first step in creating a business plan is to develop a mission statement for your organization. With a carefully crafted mission statement in place, the other piece of the business plan puzzle will begin to fall in place.

Consider Competitors

Long before you open a plant rental and leasing business in your town, it's a good idea to determine what the competition looks like. Try our link below to find competitors in your area. Complete the form by entering your city, state and zip code to get a list of plant rental and leasing businesses that are close by.

• Find Local Plant Rental & Leasing Business Competitors

Is the local market large enough to support another plant rental and leasing business? If not, you had better be sure that you are doing things much better than the competition.

Talk to People Who Are Already in the Business

Once you've finished assessing the competion, it's essential that you learn from folks who are already in business. If you think owners of nearby plant rental and leasing businesses will give you advice, think again. The last thing they want to do is help you to be a better competitor.

However, a fellow entrepreneur who has started a plant rental and leasing business outside of your community will be much more likely to talk with you, after they realize you reside far away from them and won't be stealing their local customers. In fact, they are often very willing to share startup advice with you. In my experience, you may have to call ten business owners in order to find one who is willing to share his wisdom with you.

How do you locate somebody who runs a plant rental and leasing business in another community?

It's not that hard. Just use the handy link below and enter in a random city/state or zipcode.

• Find Your Plant Rental & Leasing Business Mentor

Advantages of a Plant Rental & Leasing Business Purchase

Every entrepreneur dreams about building a highly successful company from the ground up. Yet plant rental and leasing business startups aren't easy - many fail within the first year.

There are a lot of factors that need to be considered in buying vs. starting a business . By buying a profitable plant rental and leasing business, you'll shorten the amount of time it takes to achieve a return on your investment because you'll have the advantage of a proven operation and an existing customer base.

If done right, a small business startup takes months and months of preparations just to lay the groundwork for the first day of business.

That makes franchising an attractive alternative to traditional business startups. Our rental franchise directory offers a variety of plant rental and leasing business franchise opportunities, many of which may be the perfect fit for your personal and professional goals.

• List of Rental Franchises

Other Useful Articles for Startup Entrepreneurs

These additional resources regarding starting a business may be of interest to you.

Business Idea Evaluation

Buying a Franchise

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HELPING SMALL BUSINESSES SUCCEED

MORE DONUTS:

What do you need to know about starting a business?

• Start up business ideas
• Set up a business
• Skills and wellbeing
• Business planning
• Financing a business
• Tax and National Insurance
• Business law
• Sales and marketing
• Business premises
• Business IT
• Grow your business
• Types of business
• Testing business ideas
• Product development
• Is running a business really for you?
• Start up stories
• Registering as a sole trader
• Setting up a limited company
• Business names
• Buy a franchise
• Buying a business
• Starting an online business
• Setting up a social enterprise
• Small business support

Protect your wellbeing from the pressures of starting and running a business and develop key business skills.

• Dealing with stress
• Manage your time
• Self-confidence
• Write a business plan
• Business strategy
• Start up costs
• Start up funding
• Setting prices
• How to work out tax and NI
• Accounting and bookkeeping
• Licences and registration
• Protecting intellectual property
• Insurance for business
• Workplace health, safety and environmental rules
• Looking after your customers
• Promote your business
• Your marketing strategy
• Sales techniques
• Research your market
• Creating and optimising a website
• Commercial premises
• Premises security
• People management
• Recruitment, contracts, discipline and grievance
• Employment rights
• Hiring employees
• Buying IT for your new business
• Basic IT security
• Preparing for business growth
• How to scale up your business
• Funding business growth
• Start exporting
• Personal development

How to start up a tool hire business

If you want to start your own tool hire business, you'll need plenty of capital to buy the range of professional quality tools and other equipment that a tool hire venture needs. Our guide covers the key issues for starting and running your own tool hire business.

Research your tool hire business target market

Establish your customer profiles, why will people choose your tool hire business, specialising, pricing your tool hire services, promote your tool hire business, buy an existing tool hire business.

When you plan your tool hire business it's very important to think about who your potential customers will be and make a realistic estimate of the level of demand. It's also important to find out how much existing competition there is.

Estimating demand

Demand for tool and plant hire is closely linked to the strength of the housing market and the construction industry. The state of the local economy also has a big effect on the hire sector - when people have more money to spend they are more likely to carry out home and garden improvements and so to hire tools - or to engage trades-people who hire tools.

Trade customers

If you intend to target trade customers, remember that these will mostly be firms involved in the building and related sectors. Potential demand will depend on the number of such firms in your area. Before investing in expensive equipment, do some research into the number of businesses operating nearby which could be potential customers. A quick online search will give you an idea of the number of builders, decorators, landscape gardeners and so on, who are based locally. Larger firms will probably own most of the equipment that they need for the types of work they carry out. Smaller businesses may be a better source of trade - for many smaller businesses and sole traders it makes more sense to hire than spend lots of money on machinery which is only occasionally used.

Domestic customers

Demand from domestic customers is closely linked to the housing market - people moving to a new home are more likely to carry out some alterations or refurbishment. The size of the local population and any new housing developments will have a large bearing on the amount of trade you can expect. Also bear in mind that affluent homeowners are more likely to pay somebody else to decorate or carry out renovations than do it themselves. As a result, upmarket locations may not be the best location for your tool hire business.

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Other factors

Other things that influence the demand for hire tools include changing fashions in garden and interior design. TV programmes have encouraged more people to try refurbishing their homes and gardens. From time-to-time popular trends emerge - for example garden patios became very popular some years ago, but more recently wooden and composite decking has become fashionable. Inside, polished wooden floors have gained in popularity, increasing demand for sanding machines.

The weather can have an effect too - large parts of the UK have suffered from flooding in recent years, leading to a surge in demand for water pumps and dehumidifiers.

Check out the competition

Having thought about the potential demand locally, you need to consider the level of competition that your business will face. As people are unlikely to travel further than necessary to hire tools, your competitors will be limited to other local firms. These might range from independent hire shops to branches of large chains such as HSS Hire , Brandon Hire , Speedy , or other national or regional chains. Several of the big builders merchant chains offer tool hire, including Travis Perkins and Jewson , as do some of the large national DIY specialists.

Count how many of these businesses are already offering tool hire in your area. Have a look at the services offered by each of these competitors to establish:

• whether they concentrate on domestic or trade customers
• what range of tools they offer
• whether they hire out plant equipment
• if they offer repairs and servicing of customers' equipment
• whether they offer tools or other equipment for sale
• what prices they charge
• if they are members of a trade association
• if they are part of a quality standards scheme
• whether they specialise in any way - for example in garden or horticultural equipment
• what their opening hours are
• how knowledgeable and helpful their staff are
• whether the premises and fittings are modern and smart

Consider carefully how your new business will compete with any existing tool hire outlets.

Research current trends, plus legal and tax issues

• Sector trends for tool hire businesses
• Legal issues for tool hire businesses
• VAT rules for tool hire businesses

Before you can estimate demand, you'll need to consider who your customers will be.

Hire shop customers fall into two main groups with different needs - trade customers like builders and landscapers, and private householders. Trade customers will often want to hire larger items - for example, local building firms may need to make occasional use of an excavator, scaffolding tower or other plant equipment. Private householders (and some of the smallest construction businesses - typically self-employed trades-people who work on their own) are more likely to be looking for smaller items to undertake a DIY project at home. For example, a floor sander, garden rotavator or electric cement mixer, although they might occasionally wish to hire larger pieces of equipment too.

To attract trade customers you will need the financial resources and space to buy and store large pieces of machinery. Heavy plant equipment is expensive, requires costly maintenance and will need a large yard or covered storage area. Special vehicles may be needed to transport equipment to and from sites too. As a result, some small hire businesses concentrate on the domestic/small trades-person end of the market as the tools commonly hired are smaller, cheaper to buy and easier to store and maintain.

While private customers may be prepared to pick up smaller items of hire equipment from your outlet, trade customers may expect a delivery service to their sites. They will expect this to be prompt and efficient - and not too expensive.

There is a lot of overlap between the two sectors, however, and you may decide to target a mixture of both trade and domestic customers. Some smaller firms offer small plant equipment such as mini diggers and excavators and, if necessary, will occasionally hire in a large piece of equipment which a customer needs.

You'll need to make sure that enough people will use your business to make it profitable. There are a number of things to consider when trying to attract customers.

The right range of equipment

You must be able to supply the tools that your customers want to hire. If the tools that people need are not in stock and immediately available, there's a good chance that they will simply try somewhere else.

It is likely that you will be mainly targeting domestic rather than trade customers who require large plant equipment. A lot of your business will come from a range of basic items which are commonly hired, such as concrete mixers and floor sanders. Aim to ensure that you have enough of these to meet demand. Beyond such core items, the range of other tools that you are able to hold in stock will depend on your financial resources and the space available to you.

Having a reasonably wide range of tools and equipment will ensure that you can supply most customers with the item they want, but it may be unwise to try to stock everything - there's no point having money tied up in expensive tools that are very rarely hired. Remember that some outlets hire in specialist items when necessary, to re-hire on to a customer - you can consider doing the same should the need arise.

Price and convenience

When hiring tools, many people will simply look for the cheapest rates they can find. Competing with the prices charged by the large hire chain stores will be difficult, but you should try to ensure that your prices are at least broadly competitive with other nearby outlets.

Potential customers will also be greatly influenced by convenience. Location has a lot to do with this. Ideally the business will be located on or close to a main road, both for the convenience of customers and to attract passing trade. Adequate car parking will be an advantage. Town centre locations are usually expensive and an out-of-town enterprise park might offer a suitable alternative. You may not be able to choose or afford an ideal location, but you can still try to make things convenient for your customers - for example by offering a delivery and collection service.

Standards of service

Offering a high level of service and good quality tools will help to attract and retain business. Helpful, friendly advice from knowledgeable staff will greatly enhance people's opinion of your business. Keep the hire shop tidy and well organised and have efficient servicing and checking procedures for returned tools. Use good quality tools and keep them clean, well maintained, and attractively displayed.

Concentrating on these aspects will help you to attract customers in the first place and keep them coming back. Joining a trade association quality scheme will demonstrate that your business is run to a high standard and help to inspire confidence in it. You can find out about the SafeHIRE scheme and membership of the Hire Association Europe on the HAE website.

Quality of tools and equipment offered

Remember that all tools supplied for hire must comply with set safety standards. Within these standards there is a huge range of equipment of varying quality, cost and specifications. Customers will be concerned that the tools they are hiring are of a good quality and well maintained. As the tools are likely to have to withstand a lot of wear and tear, it makes sense to use sturdy ones to start with. You should put a rigid servicing and checking system in place to ensure that everything that leaves the shop is safe to use and fit for its intended purpose.

You may decide that your business needs to specialise in some way in order to distinguish it from others nearby. You could concentrate on a very specific section of the market, for example hiring out trailers or access equipment. You might decide to focus on plant hire. Alternatively, you could broaden the range of commonly used tools kept in stock to include some specialist items.

Before deciding whether to specialise, consider whether there will be sufficient demand. You don't want to spend lots of money on equipment that is rarely, if ever hired, so you must consider whether the investment will be worthwhile in terms of the extra business brought in.

To attract extra trade you might consider offering some or all of the following in addition to your standard tool hire range:

Garden tools

Gardening is a perennially popular pastime spurred on by the popularity of garden and home makeover programmes. People looking to redesign their gardens may require garden tool hire. The kind of garden equipment you might consider stocking includes items such as mowers, rotavators, chippers, leaf blowers, log splitters, chainsaws, hedge trimmers and rollers.

Mini diggers

Mini diggers are often in demand as they enable domestic customers to carry out larger garden projects that would not have been feasible before, such as garden landscaping, or digging foundations for an extension. Large excavators and other plant such as loaders or dumper trucks are usually hired complete with an operator on an hourly basis by firms that specialise in larger plant hire.

Cleaning equipment

Commonly hired interior cleaning equipment includes carpet cleaners, floor polishers, industrial vacuum cleaners and steam cleaners, which might be required by private householders, shops, offices or other businesses. You might also consider stocking pressure washers and leaf blowers, pumps and dehumidifiers.

Event hire items

Event organisers often need to hire major items when putting on an event such as an exhibition, show or sports meeting. These items might include crowd control barriers and temporary fencing, portable outdoor lighting and power, large-scale space heating and climate control equipment, marquees and tents, portable toilets (perhaps including larger toilet trailers and smartly turned out 'posh toilets'), and outdoor catering equipment. You will need plenty of space to store these if you decide to hire them out, and the capital cost of stocking them can be fairly high.

Sales, repairs and servicing

Some tool hire shops also offer sales of new and ex-hire tools, consumables (such as sanding discs, dust masks, saw blades or cleaning fluids) and safety equipment (such as goggles, masks, gloves and overalls). You might also consider offering repairs or servicing of customers' own equipment. A workshop will be needed for servicing hire tools anyway, so there will be little, if any, additional cost involved in offering this service to customers.

Getting the price right is very important. When you plan your pricing policy, remember that you must be able to cover your costs, overheads and drawings.

Hire charges

Tools are usually hired on a daily, weekly or weekend basis. It's generally cheaper per day to hire a tool for a week than for a single day. For longer-term hire, you might negotiate a significantly reduced rate with the customer. The amount charged generally increases with the size, complexity and initial cost of the equipment - for example, a large floor sander will cost more to hire than a wallpaper stripper. The exact amount you decide to charge will depend to a great extent on the going rate locally, so check to see what your competitors charge. Your customers will not be prepared to pay much over the odds for items that they can easily hire elsewhere. Think about whether you'll charge extra for delivering and collecting large items like cement mixers, and if so how much.

Bear in mind that the hire rate charged for each item must, over time, cover its initial cost, repairs, maintenance and transport if it is delivered and collected. Some items will be regularly hired and so constantly earning money. Other equipment may spend more time in storage than in use - you will have to charge a higher rate for such items if they are going to be worthwhile keeping in stock.

Other things to think about include cleaning charges if applicable and wear charges for machines that come with consumable blades and bits. You'll need to work out prices for other consumables like fluids and abrasives too.

When a customer collects a tool, the hire charge is usually paid and a refundable deposit taken. This is returned to the customer at the end of the hire period provided that the tool is brought back undamaged. Credit/debit card details and some proof of customer identity are usually taken as a safeguard against theft. You might decide to offer customers insurance cover against theft or damage of larger, more expensive items. Some hire firms insist on this.

Other services

Consider how you will cost any other services you provide (for example repairs and servicing of customer's own tools), how often you will review your prices and whether you will offer discounts such as reduced rates to regular customers, special offers and so on.

Special offers and discounts

You might decide to offer a standard discount as a matter of course to any trade customers. How much discount will depend on your pricing policy and the level of local competition.

Hire businesses which mainly target trade customers often offer special weekend hire deals. These are aimed at DIY customers - while trade customers like builders generally work Monday to Friday, this is the time when most DIY gets done. Weekend hire deals might run from Friday afternoon/evening until Monday morning and may be charged for at the same rate as a normal week-day's hire.

Many businesses also give discounts to employees, regular customers, family and friends. A reduced rate could be offered to groups such as pensioners. Check out your local opposition for ideas and keep a close eye on any special offers you do make to be sure that they are working for you. After all, these kinds of promotions might encourage extra business, but they will also affect the amount of profit you make.

If you deal only with business customers then you may well want to show VAT-exclusive prices. Many of your business customers will be VAT registered and will be able to claim back any VAT they pay on things like hire charges. However, if you also deal with private customers at the same outlet then the law says you need to show VAT-inclusive prices. As most tool hire shops have at least some private customers, the best policy may be to display both prices clearly.

Think about how you will market and promote your business, and about what messages you want to get across to potential customers.

The right image

People's first impression of your business will be influenced by the way it looks - so it is vital to project the right image. Try to keep your premises smart, clean and tidy. Use signs to indicate what tools are available and any other services you offer.

As well as a storage area, you will need a retail/display area, where customers can look at the tools available and you can offer them help and advice. You may well decide to display some consumables and items like safety equipment for sale in your retail area too. Provide some leaflets or posters about tool use and safety - a range of signs, posters, leaflets and marketing materials is available from the Hire Association Europe (HAE).

If you offer a delivery and collection service, bear in mind that your van can be a highly visible mobile advertisement for your business. Consider having the van sign written with your details and try to ensure that it looks smart and well-maintained.

Customer relations

Treating customers in a friendly, helpful and polite way is essential. Be prepared to explain to people how various tools work and advise them which will be the safest and most suitable for them to use. Make sure that people know how to use the tools they are hiring and if there is any doubt, offer to demonstrate. Provide printed safety sheets where appropriate and offer the necessary safety equipment for hire or sale. Make sure that the conditions of hire are clearly explained and there is no confusion over damage deposits or insurance cover if this is offered.

A good reputation can only be built over time, but from the outset you should aim to offer a high level of service and ensure customers are satisfied with the service they receive and the tools or other equipment supplied. It may be worthwhile giving your customers a bit of leeway over things like late returns - building up goodwill can pay real dividends when it comes to repeat business, customer loyalty and recommendations. Do your best to deal with any questions or complaints promptly and politely.

Quality standards

Joining a safety and quality accreditation scheme will demonstrate that your business is run to a high standard. Members of the HAE can apply to join the SafeHIRE scheme . This will involve a site assessment and unannounced test hires. Successful applicants earn the right to display a certification plaque and note their status as a member of the scheme in advertising literature. SafeHIRE certified members can also join the Contractors Health and Safety Assessment Scheme (CHAS) register as 'CHAS Accredited' businesses. This is used by many private companies, local authorities, government agencies and so on when shortlisting contractors or suppliers.

Advertising your business

It is important that you advertise your business so that potential customers know about you and the tools and services you offer. There are a number of things you can do to promote your business:

• set up a Google Business profile so that you appear in local searches
• your vehicle can be a very effective means of advertising if you have it sign written and keep it well-maintained and presentable
• use signs effectively to inform and attract passing trade
• advertise in your local newspaper and any local directories
• place an advertisement on Yell.com
• launch your own website to reach a wider market - particularly relevant if you offer specialist tools not usually stocked by others
• place advertising leaflets at local garden centres or builders' suppliers or mail them to local households

Members of the HAE are included in their online member database. This can be accessed by the public in order to locate companies in a certain area or dealing with a particular sector of the market. You can find out more about HAE membership and the SafeHIRE scheme on the HAE website.

Think about using social media, blogs, business directories and forums to market and promote your business.

You might decide to buy an existing tool hire business rather than start your own venture from scratch. Buying a going concern can mean that the products, customers, regular sales, staff, premises and equipment are already in place.

Buying a business  can be a hazardous, expensive process unless you have the right skills and experience on your team, including legal and financial know-how. Establish the genuine trading and financial position, so that the price you pay for the business is not too high.

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Plant Tool Hire Business Plan Template

Explore Options to Get a Business Plan.

Are you interested in starting your own Plant Tool Hire Business?

Introduction

Global market size, target market, business model, competitive landscape, legal and regulatory requirements, financing options, marketing and sales strategies, operations and logistics, human resources & management, why write a business plan.

Why write a business plan? A business plan is an essential tool for any business, including Plant Tool Hire. Here are some reasons why writing a business plan is important for the success of your business: - Clarify your goals and objectives: A business plan helps you to clearly define your business's goals and objectives. This not only helps you stay focused and motivated, but it also allows potential investors or partners to understand your vision and potential for success. - Stay on track: A business plan serves as a roadmap for your business, providing guidance and direction. It can be easy to get sidetracked or lose focus without a clear plan in place. A business plan helps to keep your business on track and on target. - Communicate your vision: A business plan is a valuable communication tool. It allows you to clearly articulate your business's vision to employees, customers, and other key stakeholders. This helps to build trust and confidence in your business. - Affordable and straightforward: Writing a business plan is a cost-effective way to ensure the success of your business. It forces you to think critically about your business and make strategic decisions, leading to a more efficient and profitable operation. - Understand your competition: Through the process of writing a business plan, you will conduct a thorough analysis of your competition. This allows you to better understand your unique selling proposition and differentiate yourself from the market. - Understand your customers: A business plan also involves conducting a customer analysis. This helps you to better understand your target market and their needs, allowing you to create better products and services and market more effectively. - Financial planning: Writing a business plan helps you to determine the financial needs of your business. This includes understanding how much capital is needed to start and grow your business, as well as how much fundraising may be necessary. - Analyze your business model: Putting your business model into words and analyzing it can help you identify areas for improvement and optimize your revenue streams. - Attract investors and partners: A well-written business plan can be a powerful tool for attracting investors and partners. It provides them with a comprehensive understanding of your business and its potential for success. - Position your brand: By understanding your company's role in the marketplace, a business plan can help you to position your brand effectively and stand out from the competition. - Uncover new opportunities: The process of brainstorming and drafting a business plan can lead to new ideas and opportunities for your business. This allows for continuous improvement and growth. - Assess growth and success: Writing a business plan allows you to compare actual results with your initial forecasts and assumptions. This helps you to see where your business is thriving and where improvements can be made, allowing you to update your plan and ensure long-term success. In summary, a business plan is an essential tool for any business, providing numerous benefits such as clarifying goals, staying on track, communicating vision, understanding competition and customers, financial planning, attracting investors, and uncovering new opportunities. It also allows for continuous assessment and improvement, leading to long-term success and survival of the business.

Business plan content

• Executive Summary: This section provides a brief overview of the business, its goals, and its key components. It should be concise and capture the reader's attention. 2. Company Overview: This section provides a more detailed description of the business, its history, mission statement, and legal and ownership structure. 3. Industry Analysis: This section analyzes the current market for plant tool hire businesses, including trends, opportunities, and challenges. It also includes information on the target market and potential customers. 4. Consumer Analysis: This section examines the behavior, needs, and preferences of the target market. It should also include information on the target market's demographics, psychographics, and buying patterns. 5. Competitor Analysis & Advantages: This section identifies and analyzes the company's main competitors and their strengths and weaknesses. It also outlines the unique advantages and differentiators that the business offers. 6. Marketing Strategies & Plan: This section outlines the marketing strategies and tactics that the business will use to reach its target market and achieve its goals. It should include a detailed plan for advertising, promotions, and branding. 7. Plan of Action: This section outlines the specific steps and timelines for achieving the goals and objectives outlined in the business plan. It should also include a budget and resources needed for implementation. 8. Management Team: This section introduces the key members of the business's management team and their roles and responsibilities. It should also outline their qualifications and experience. 9. Financial Plan: This section includes detailed financial projections for the business, including start-up costs, revenue projections, and a break-even analysis. It should also include a budget for the first year of operation and a five-year financial forecast. 10. Appendices: This section includes any additional documents or information that supports the business plan, such as market research data, resumes of key team members, and legal documents. 11. Executive Summary: This section provides a brief overview of the business, its goals, and its key components. It should be concise and capture the reader's attention. 12. Company Overview: This section provides a more detailed description of the business, its history, mission statement, and legal and ownership structure. 13. Industry Analysis: This section analyzes the current market for plant tool hire businesses, including trends, opportunities, and challenges. It also includes information on the target market and potential customers. 14. Consumer Analysis: This section examines the behavior, needs, and preferences of the target market. It should also include information on the target market's demographics, psychographics, and buying patterns. 15. Competitor Analysis & Advantages: This section identifies and analyzes the company's main competitors and their strengths and weaknesses. It also outlines the unique advantages and differentiators that the business offers. 16. Marketing Strategies & Plan: This section outlines the marketing strategies and tactics that the business will use to reach its target market and achieve its goals. It should include a detailed plan for advertising, promotions, and branding. 17. Plan of Action: This section outlines the specific steps and timelines for achieving the goals and objectives outlined in the business plan. It should also include a budget and resources needed for implementation. 18. Management Team: This section introduces the key members of the business's management team and their roles and responsibilities. It should also outline their qualifications and experience. 19. Financial Plan: This section includes detailed financial projections for the business, including start-up costs, revenue projections, and a break-even analysis. It should also include a budget for the first year of operation and a five-year financial forecast. 20. Appendices: This section includes any additional documents or information that supports the business plan, such as market research data, resumes of key team members, and legal documents.

Instructions for the business plan template

Instructions for the Business Plan Template: 1. Download the Plant Tool Hire business plan template. It is a word document that can be edited to include your specific information. 2. The template includes instructions in red font on how to complete each section of the business plan. Follow these instructions carefully to ensure that all necessary information is included. 3. The template also includes tips in blue font to help you with drafting your business plan. These tips can be especially helpful if you are new to creating a business plan. 4. The template includes all sections of a typical business plan, except for the financial forecast. This section is important but may require additional expertise or information. If you need help with this section, please consider setting up a complimentary 30-minute consultation with one of our consultants. 5. As you fill out each section of the business plan template, be sure to include as much detail and information as possible. This will help you present a comprehensive and professional plan to potential investors or lenders. 6. Once you have completed the entire template, review it carefully to ensure that all sections are complete and accurate. It may also be helpful to have someone else review it for a fresh perspective. 7. Make any necessary revisions and finalize your business plan. Congratulations, you now have a comprehensive and professional business plan for your Plant Tool Hire business!

Ongoing business planning

Ongoing business planning is crucial for the success and growth of a Plant Tool Hire business. It involves regularly reviewing and updating the business plan to adapt to changing market conditions, customer needs, and business goals. Here are some important reasons why ongoing business planning is essential for a Plant Tool Hire business: 1. To stay competitive: In today's fast-paced business world, it is important to constantly assess and improve your strategies to stay ahead of the competition. Ongoing business planning allows you to identify new market trends and customer demands, and adapt your services and products accordingly to meet these changing needs. 2. To track progress and set goals: Regularly reviewing your business plan allows you to track your progress against your goals and make adjustments as needed. It also helps you set new goals and targets for your business growth. This ensures that your business is constantly moving forward and not stagnating. 3. To identify potential risks and opportunities: By regularly reviewing and updating your business plan, you can identify potential risks and challenges that may affect your business. This allows you to proactively address these issues and find new opportunities for growth. 4. To secure funding: Ongoing business planning is essential when seeking funding from investors or lenders. A well-developed and updated business plan demonstrates to potential investors that your business is well-managed and has a clear vision for growth. It also helps you justify the need for additional funding and how it will be utilized to achieve your business goals. 5. To improve decision-making: Ongoing business planning provides a framework for making informed decisions. By regularly assessing your business's performance and comparing it to your goals and targets, you can make well-informed decisions that will contribute to the success of your business. 6. To maintain focus: In the day-to-day operations of a Plant Tool Hire business, it is easy to get caught up in the day-to-day tasks and lose sight of the bigger picture. Ongoing business planning helps you stay focused on your long-term goals and ensures that all your actions are aligned with your business objectives. In conclusion, ongoing business planning is a crucial process for any Plant Tool Hire business. It allows you to adapt to changing market conditions, track progress, identify risks and opportunities, secure funding, improve decision-making, and maintain focus. By regularly reviewing and updating your business plan, you can ensure the continued growth and success of your business.

Bespoke business plan services

Transform Your Plant Tool Hire Business with a Bespoke Business Plan Are you looking to grow your plant tool hire business? Do you need a solid plan to guide your business towards success? Look no further! Our bespoke business plan services for plant tool hire businesses can help you achieve your goals. With our customized business plan, we will work closely with you to understand your unique business needs and objectives. We will conduct thorough market research to gain insights into your industry and competition. Our team of experienced business consultants will then use this information to create a comprehensive and realistic plan tailored to your business. Our bespoke business plan services for plant tool hire businesses include: 1. Market Analysis: We will provide an in-depth analysis of your target market, including size, trends, and key players. This will help you identify potential customers and understand their needs and preferences. 2. Competitive Analysis: Knowing your competition is crucial for success in any industry. Our team will research your competitors and analyze their strengths and weaknesses. This will help you differentiate your business and develop a competitive advantage. 3. Financial Projections: Our experts will create realistic financial projections for your business based on your industry, market trends, and growth potential. This will give you a clear understanding of your financial requirements and expected returns. 4. Marketing and Sales Strategy: We will develop a customized marketing and sales strategy that aligns with your business goals. This will help you reach your target audience and promote your services effectively. 5. Operations Plan: Our team will help you streamline your operations and identify ways to improve efficiency and reduce costs. This will ensure smooth day-to-day functioning of your plant tool hire business. 6. Risk Assessment: We will conduct a thorough risk assessment to identify potential risks and develop contingency plans to mitigate them. This will help you prepare for any unexpected challenges that may arise. At Avvale Consulting, we are committed to providing high-quality and personalized business planning services to our clients. Let us help you take your plant tool hire business to the next level with our bespoke business plan services. Contact us today to get started.

Our company, BusinessPlanTemplates.com, is a leading provider of professional and customizable business plan templates for entrepreneurs and businesses of all sizes. We specialize in creating high-quality templates that are easy to use and can be tailored to fit the specific needs and goals of our clients. With years of experience in the startup and business consulting industry, our team at BusinessPlanTemplates.com has helped hundreds of businesses from various industries to create successful business plans and secure funding from investors. Our consultants have a deep understanding of what it takes to make a business plan stand out and have the expertise to guide our clients through the process. We offer a range of business plan templates, including standard templates for different industries, as well as customizable templates that can be tailored to fit the unique needs of a business. Our templates are designed to be user-friendly and can be easily completed by business owners, regardless of their level of expertise or business stage. In addition to our business plan templates, we also offer a range of value-added products and services, such as investor lists and introductions to potential investors. Our goal is to provide our clients with all the resources and support they need to successfully start and grow their businesses. Located in London, United Kingdom, BusinessPlanTemplates.com is a trusted and reputable source for high-quality business plan templates. We are committed to helping entrepreneurs and businesses around the world achieve their goals and reach their full potential. Download our business plan template and start your business growth journey today.

Business plan template FAQ

Q: Who can benefit from using the Plant Tool Hire business plan template? A: The Plant Tool Hire business plan template is designed for anyone looking to start or expand a plant tool hire business. This includes entrepreneurs, business owners, and investors. Q: How detailed is the business plan template? A: The template includes all the necessary sections and information to create a comprehensive business plan for a plant tool hire business. It covers areas such as market analysis, financial projections, and marketing strategies. Q: Is the template customizable? A: Yes, the template is fully customizable to fit your specific business needs. You can edit, add, or delete sections as necessary to create a personalized business plan. Q: Can I use the template for multiple business ventures? A: The template is designed for a plant tool hire business but can also be adapted for other similar businesses. However, we recommend using it for one business venture to maintain its focus and effectiveness. Q: Is the template suitable for obtaining funding? A: Yes, the template includes all the necessary information and financial projections to present to potential investors or lenders. It can help increase your chances of securing funding for your plant tool hire business. Q: Will I need any special software to use the template? A: No, the template is in a user-friendly Microsoft Word format, which can be easily edited on any computer with Microsoft Office or a similar word processing program. Q: How does the template help with market analysis? A: The template includes sections for conducting market research and analyzing the competition. It also provides guidance on identifying your target market and developing a unique selling proposition. Q: Can I get support or assistance with using the template? A: Yes, our customer support team is available to assist with any questions or concerns you may have about using the template. You can also refer to the included instructions and tips for guidance. Q: Is the template regularly updated? A: Yes, we strive to keep our templates up to date with the latest business trends and information. Any updates or improvements will be provided to you at no additional cost. Q: Is there a refund policy? A: Yes, we offer a 30-day money-back guarantee if you are not satisfied with the template. Just contact us and we will issue a full refund.

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plant hire business plan pdf

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The Go Together medium-term management plan is a growth strategy based around the three axes of products, Missing: plant hire Here is a friendly, comprehensive guide on the startup process. Setting up a plant hire company, and supplying heavy machineries such as trucks,cranes, Missing: pdf plant-hire basis.” According to Le Grange, the two ladies in his life were not impressed as the neglected machine had weeds growing out of the fuel tank. The range of function available in 4PS includes the following. We tell you what you need to know to get startedMissing: pdf Tools Rental Business Plan. But he used his savings to buy the machine and soon, not without toil and sweat, his TLB was up and running and earning him a modest wage. Bring on Missing: plant hire project construction and plant hire businesses. Thinking about opening a plant rental and leasing business? It will provide potential lenders with detailed information on all aspects of your company's past and TrANSFOrMATION OF BUSINESS MODEL. The year was and PJ Plant Hire had entered the Plant Everyone has issues surrounding the control of plant plant-hire basis.” According to Le Grange, the two ladies in his life were not impressed as the neglected machine had weeds growing out of the fuel tank. PLANT HIRE BUSINESS PLAN PREPARED AND SUBMITTED BY: LILOTAKI A business plan is a requirement if you are planning to seek a loan. But he used his savings Use our downloadable free business plan template PDF to outline your company’s goals and milestones, including how to structure, run, and grow your new business. View Lilotaki_ from BUSINESS, at University of Johannesburg. Starting an Missing: pdf J·. HOW TO START A PLANT AND MACHINERY HIRE BUSINESS. Borrow My Tools is a start-up company serving the San Mateo, CA community with home improvement tools for lease or rental.

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5 Things to Include in Your Equipment Rental Business Plan

Whether you're just starting an equipment rental company or looking for ways to improve how you do business this year, it's crucial to create and constantly monitor the business plan that works best for achieving your specific goals.

There are multiple aspects to an equipment rental business plan. It should cover how you plan to make your business successful. Just a few of these include working through revenue sources, aligning with business legalities, identifying what innovative equipment you plan to offer, and more.

Starting and growing a business is hard work, and it's important to have a solid foundation. Here are a few must-haves to incorporate into your equipment rental business plan in order to rise to success.

1. Revenue sources

Identifying revenue sources is one of the most important parts of building your business plan–it's what's going to make or break it. In what ways are you going to generate income for your heavy equipment rental business? Here are just two options.

Brick-and-mortar store

Obviously, you need a place to house the equipment you plan to rent out to contractors. If you're not sure where to set up shop, research the customer base in a particular area. Check out your competitors, as well. Will you have enough of business there to be able to grow?

Online presence

Because of the constant rise in technology, you'll want to include having an online platform in your equipment rental business plan, or you'll be left in the dust. Create a plan for how you'll succeed digitally. 

One thing to do is to start a website. Whether you opt for online transactions or you just want to showcase your wide array of equipment, getting onto the World Wide Web is likely to increase your bottom line. Make sure to include these major items on your website:

• Available equipment
• Contact info
• Business hours

Don't forget to optimize for Local SEO. This is a crucial part of your online presence considering your customers will most likely all be local. Learn more about Local SEO here .

2. Business legalities

You can't create an equipment rental business plan without including your plans regarding legalities, taxes, and insurance.

There are several business types you could check out. Limited liability can be a good fit when starting a small rental company. However, make sure you talk to a business mentor or accountant before making a decision.

Insurance is necessary to avoid having your business shut down by a customer who's suing you for injury or damage. The following are a few types of insurance to consider including in your plan:

• General liability
• Property insurance
• Commercial vehicle insurance
• Workers' compensation

3. Equipment maintenance

Your business plan should include an efficient maintenance and repair process that you can implement after receiving equipment back from your customers.

There may be some cases in which contractors bring back your equipment damaged or missing parts. And don't forget to plan a preventive maintenance schedule to make sure your equipment continues functioning to its full potential.

If you're just starting out and you're familiar with the equipment, performing the maintenance yourself can help you cut corners and save money. You could also consider supporting a local shop that specializes in equipment repairs, or you could hire an in-house mechanic. Keep in mind in-house mechanics may be more efficient for your business in the long run.  

BONUS TIP : Be sure to keep up-to-date photos in your equipment maintenance records. Take photos before and after a piece of equipment is examined and repaired (if necessary) upon its return. This will help you determine how the machine was treated in a particular customer's care.

4. Marketing strategy

A marketing strategy is important for the growth of a company, and a brief outline of your strategy should be included in your rental equipment business plan. Here are two aspects to consider:

• Social Media Social media platforms like Facebook and Instagram can help increase brand awareness. From there, you can post and share photos, customer stories, and blog posts you've published. This builds connection and trust with potential and current customers.
• Advertising If you want to advertise your business, consider digital ads on Facebook and Google and print ads in trade magazines. If you're not sure where to get started with Facebook advertising, Boostpoint , a SaaS company associated with Equipter, can help! 

5. Innovative multipurpose equipment

Don't play guessing games when it comes to buying equipment for your business. Potential investors in your business want to know that you've done your research and plan to serve your community to the best of your ability. To find out what equipment you should purchase, scope out your competition and learn what your potential customers need. 

After finding out what's important to them, make sure to stress that you'll focus on quality equipment rather than quantity. It's better to have a few pieces of equipment of superior quality than a large fleet of unreliable and easily damaged machinery. 

The Equipter RB4000 is a low-maintenance, innovative piece of equipment that serves contractors in roofing, general construction, and restoration across the US and in lower parts of Canada. Click the link below to find out how it can enhance how your equipment rental company does business. 

Business plans for equipment rental companies are essential for attracting investors to get a kickstart on your next venture . Be sure to do your research to get a big picture view of how to create a plan unique to your vision.

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• Jun 2, 2023

How to Run a Profitable Earthmoving Plant Hire Business

Updated: Jun 6, 2023

The earthmoving industry plays a crucial role in construction, mining, and infrastructure development. Running a profitable earthmoving plant hire business requires careful planning, effective management, and a thorough understanding of the industry. In this comprehensive guide, we will discuss key strategies and important factors to consider when starting and operating a successful earthmoving plant hire business.

Section 1: Market Research and Planning

1.1 Identifying the Target Market Understanding your target market is crucial to the success of your earthmoving plant hire business. Identify the industries, construction projects, and geographic areas that require earthmoving equipment. Conduct thorough market research to determine the demand for various types of machinery and equipment.

1.2 Competitor Analysis Analyze your competition to gain insights into their pricing, services, and customer base. Identify gaps in the market that your business can fill, and develop strategies to differentiate yourself from competitors.

1.3 Business Plan Development Create a detailed business plan that outlines your goals, target market, pricing structure, marketing strategies, and financial projections. A well-defined business plan will serve as a roadmap for your earthmoving plant hire business and help you make informed decisions.

Section 2: Equipment Acquisition and Maintenance

2.1 Equipment Selection Investing in the right equipment is critical to the success of your business. Determine the types of machinery and equipment that are in high demand in your target market. Consider factors such as versatility, reliability, fuel efficiency, and maintenance requirements when selecting equipment.

2.2 Equipment Financing Purchasing earthmoving equipment can be a significant financial commitment. Explore financing options such as leasing, equipment loans, or partnerships to acquire the necessary machinery. Evaluate the pros and cons of each option and choose the one that aligns with your long-term business goals.

2.3 Maintenance and Repair Regular maintenance and timely repairs are essential to ensure the optimal performance and longevity of your equipment. Develop a comprehensive maintenance schedule and train your staff to conduct routine inspections. Establish relationships with reliable equipment service providers to minimize downtime.

Section 3: Pricing and Financial Management

3.1 Pricing Strategies Determining the right pricing structure is crucial to running a profitable earthmoving plant hire business. Consider factors such as equipment depreciation, operating costs, labor expenses, and market demand when setting your prices. Conduct periodic pricing reviews to ensure competitiveness while maintaining profitability.

3.2 Financial Management Implement robust financial management practices to track revenue, expenses, and cash flow. Use accounting software to monitor financial performance, prepare accurate invoices, and manage payroll. Regularly review financial statements and seek professional advice when necessary to make informed business decisions.

Section 4: Marketing and Customer Acquisition

4.1 Online Presence Build a strong online presence through a well-designed website and active social media profiles. Optimize your website for search engines to increase visibility and attract potential customers. Share relevant content, industry news, and case studies on your website and social media platforms to establish credibility.

4.2 Networking and Partnerships Develop strong relationships with contractors, builders, and other industry professionals who can provide referrals and recommendations. Attend industry conferences, trade shows, and networking events to expand your professional network. Consider forming partnerships with complementary businesses to offer bundled services and increase your customer base.

4.3 Customer Service Provide excellent customer service to foster long-term relationships and generate repeat business. Respond promptly to inquiries, address concerns, and exceed customer expectations. Regularly seek feedback and implement improvements based on customer suggestions to enhance your service quality.

Section 5: Health, Safety, and Compliance

5.1 Health and Safety Standards Maintain a strong focus on health and safety to protect your employees, clients, and the environment. Adhere to all relevant regulations and industry standards. Implement comprehensive safety training programs and conduct regular inspections to ensure compliance.

5.2 Insurance Coverage Obtain appropriate insurance coverage to protect your business from potential liabilities. Consult with an insurance professional to identify the types of insurance required, such as general liability, equipment insurance, and worker's compensation.

Running a profitable earthmoving plant hire business requires careful planning, diligent execution, and continuous adaptation to market conditions. By conducting thorough market research, acquiring the right equipment, implementing effective pricing strategies, and providing exceptional customer service, you can position your business for success. Remember to prioritize safety, maintain strong financial management practices, and stay updated with industry trends to stay ahead of the competition. With dedication and perseverance, your earthmoving plant hire business can thrive and generate substantial profits.

Ten Biggest Challenges When Running a Plant Hire Business

Running a plant hire business, like any other business, comes with its own set of challenges. Some of the significant challenges you may face in running a plant hire business include:

Equipment maintenance and repair: Managing a fleet of equipment requires ongoing maintenance and occasional repairs. This can be a significant challenge, as breakdowns can disrupt projects and incur costs. Ensuring timely maintenance, scheduling repairs, and having backup equipment available are crucial to minimize downtime.

Equipment utilization and availability: Maximizing equipment utilization and availability is essential for profitability. However, achieving a balance between meeting customer demands and avoiding equipment idle time can be challenging. Predicting demand, optimizing scheduling, and managing multiple projects simultaneously require careful planning and coordination.

Capital investment: Acquiring and updating equipment involves substantial capital investment. Balancing the need to expand your fleet with financial constraints can be a challenge. It requires careful financial planning, assessing market demand, and making informed decisions about purchasing or renting equipment.

Hiring and retaining skilled operators: Skilled operators are critical for operating heavy machinery efficiently and safely. However, finding and retaining qualified operators can be challenging due to the competitive job market and specialized skill requirements. Offering competitive wages, training programs, and providing a positive work environment can help attract and retain skilled operators.

Compliance with regulations: The plant hire industry is subject to various regulations related to health and safety, environmental protection, transport, and licensing. Staying up to date with these regulations and ensuring compliance can be complex and time-consuming. Failing to comply with regulations can lead to penalties, legal issues, and damage to your business reputation.

Managing logistics and transportation: Coordinating equipment transport to and from customer sites requires efficient logistics management. Factors such as transport permits, route planning, and timing need to be carefully considered to ensure timely delivery and pick-up. This becomes more challenging when handling multiple projects in different locations simultaneously.

Seasonal demand variations: Plant hire demand can fluctuate based on seasonal factors or economic conditions. Managing these variations and maintaining a steady cash flow can be a challenge. Strategies such as diversifying services, exploring new markets, and building long-term customer relationships can help mitigate the impact of seasonal fluctuations.

Competition: The plant hire industry can be highly competitive, with numerous companies vying for the same projects. Differentiating your business from competitors and providing exceptional customer service becomes crucial. Offering competitive pricing, ensuring equipment quality, and developing a strong reputation can help you stand out in the market.

Insurance and risk management: As a plant hire business, you need to have appropriate insurance coverage to protect against potential risks, such as equipment damage, accidents, and liability claims. Assessing risks, understanding insurance requirements, and implementing effective risk management strategies are essential but can be complex tasks.

Technological advancements: Keeping up with technological advancements in the plant hire industry can be a challenge. New equipment models, telematics, software solutions, and automation are constantly evolving. Evaluating and adopting new technologies that can improve operational efficiency, equipment performance, and customer experience require ongoing research and investment.

Overcoming these challenges requires careful planning, adaptability, continuous learning, and a customer-centric approach. By addressing these hurdles effectively, you can position your plant hire business for success in a competitive market.

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7 Tips for Running a Plant Hire Company for Young Players

1. plant hire cashflow problems - you’re either a hero, or at zero..

The lumpiness of cash flow in construction subcontracting, at every level of the industry, has taken down literally thousands of companies in what seems like a blink of an eye - from some of the biggest and best contractors and plant hire companies, to the smallest of owner-operators. Over the last six years, we’ve watched hundreds of companies go down in smoke over non-payment of contracts, or delayed payments.

This is one aspect of the industry that is spectacularly unfair and not correctly regulated - which is made even more ridiculous when you consider that a big pile of the ‘liquidity’ in the contracting industries is paid by the government, and is done so purely for the purpose of redistribution through the community and economic growth.

But my opinion on the macro-economic flaws of construction aside is you have to play the game, the way its played. If you work in construction, you need to manage your cash-flow to prepare for the worst eventuations and possibly act way more prudently than if you work in any other industry, because these problems are rife. There is no need for you to become a statistic. You need to expect that you won’t get paid, or payment will be delayed, and keep more cash in your business than you otherwise would if you are working in any other industry.

So many of our customers have told us (slightly amusing) tales of mistakenly believing their a ‘big dog’ when they take a lumpy invoice payment, then they start splashing it around on things like helicopter pilot lessons, dirt bikes, tricked out beamers and boats (real-world examples). Indeed, when you start doing things like this, you are on borrowed time and borrowed money. Most of that money will go out the door, with little more than 17% - 20% will stay in the business (based on the average gross margin of plant hire companies across the board). But as per my previous advice, you should keep all the business for a rainy day, and permanently delay your helicopter pilot aspirations until you actually own a helicopter, which for most plant hire companies - is a LONG time from now.

HOT TIP: If you are in a cash-flow bind and you need payment of one of your invoices early to keep the wheels of your business greased, you can use ‘factoring’ or debtors solutions to bring the payment of those invoices forward by outsourcing them to someone else. We have a great partner in this space, called Premium Funding - click here to learn about how debtors solutions can work .

2. BAS payments for plant hire companies - the sneaky buggers really creep up on you

BAS payments in a plant hire company are like the grim reaper lurking in the distance -  they seem to descend on you when you least expect it (even though they are due at the same time every quarter - wink, wink). Given the payment delays of many contractors to payment terms exceeding 90-120 days, your BAS can be due on revenue you’ve not received any cash for. In some cases, you might not receive for another 30-60 days beyond needing to account for it as revenue, and then needing pay your GST.  This can sometimes be the thing that quickly sinks a small business if it's not managed the right way.

HOT TIP: ATO Payment Plans for plant hire companies - the ATO does offer payment plans to going concerns that are in reasonable financial shape and interestingly, let you pay your tax obligations down at an agreed rate, plus about 8% interest (this might be subject to change). Those of us who run small businesses will know that it's really hard (after the banking royal commission) to obtain low cost debt and cash-flow solutions. So the ATO payment plans can actually be, in some cases, the lowest cost debt available to your business. It can just be a good way of smoothing out your statutory payments over a short-term cash-flow issue. Click here to use their calculator .

3. Sponsoring race cars

Sponsoring race cars, in the opinion of a very experienced construction marketer - is straight up the dumbest thing you can do with your money, if you are seeking to invest your hard earned dollary-dos in growing your business. If it's a hobby, fine - go ahead - but don’t do it under the delusional assumption that it will actually provide your business with any meaningful advertising, lead generation or brand awareness for the money you will spend. Having your brand wedged on a speeding car, next to a million other brands, as it wurrs in circles in front of a crowd of drunken monkeys sitting in stadium seating at a distance that makes your tiny brand illegible, provides no meaningful benefit to your business and will not, in anyway, convert a lamen in the stands to a customer. Unless you're Coates Hire and sponsoring the whole event (and even then there are literally A MILLION other things I would do to generate online leads before I did this).

HOT TIP: Don’t sponsor race cars.

4. Dodgy Tax deductions

“No, your mountain bike rack ISN’T a tax deduction’ The above example (of a mountain bike rack being used to store a ladder) is not a tax deduction, it's funny, but it's not a tax deduction. Buying a camping generator and saying it's for the business is not a tax deduction either. Naming your boat ‘Mini Excavator’ and getting the workshop to service it - is borderline, but not a tax deduction and not a normal expense (despite being incredibly creative - and indeed a real-world example).

The ATO is getting very good through the use of data analytics at flagging submissions that have higher-than-average amounts of deductions or claims (based on industry and occupation profile) and can arbitrarily go after you - which causes a costly, life-changing, impossible to actually pass audit and flags all of your future submissions. You cannot underestimate how bad this can be for your business, and generally your quality of life if this happens to you.

HOT TIP: Here is a link from the ATO around the total list of claimable expenses for small businesses . Don’t forget, keep receipts!

5. Bad (or no) Contracts (if your client won’t sign one, run….)

The majority of our smaller plant hire companies are bad at admin. I’m not trying to sledge 47% of my customer base - I’m just being honest about what see going on everyday at iSeekplant . Bad correspondence, non-legally binding agreements, no contracts, no actual paperwork, no PPSR and no correct documentation. It's at chronic levels in the industry - and it's pretty much the source of all other headaches in this article. If you have crap contracts with a customer - that are not complete, not legally binding and not signed, then you have nothing in the case of a dispute over payment or hours, and very limited risk protection if they go under.

If a client won’t sign a contract to hire your machine, don’t hire it to them. You can’t tell me that a civil engineer or project manager isn’t used to signing contracts to hire machines - they do it every day with the big guys when they hire from ( Tutt Bryant , Kennards , Brooks , Delta Rent , you name it). They sign contracts to hire god-damn gensets, they can sign a contract to hire your 20 tonne excavator.

If a client is trying to do handshake deal with you because your a small operator, all the while signing the contracts of other big plant hire companies for smaller machines and companies that have WAY less to lose than you, then they are trying to screw you whether they ever admit it or not, or you can admit it to yourself (even if you are excited to have the work). They want the flexibility, they don’t want liability and they don’t want recourse - which means they are the most likely to off-hire you in a heartbeat, not pay you or screw you down to no margin when you’re onsite.

These guys are used to signing contracts - so get them to sign yours. You have a right to protection.

6. Hitching your wagon (literally and figuratively) to a bad finance company

Most first-time machine purchasers for their business get screwed when financing a machine. This is because they have very little credit leverage to use in a finance conversation, and often-times because they access the wrong types of credit to fund them into a machine. This can have ongoing consequences for burgeoning plant hire companies for years (because you’re paying your machine off for years).

In the early years, as you are building your business - you often have to do a bunch of jobs at lower-than-market rates, so you can prove yourself and develop a reputation and quoting practise that you will evolve and take with you from job-to-job. So, your margin is already low, and your making massive machine repayments. It will put financial pressure on your business, sometimes to the point that you’re in a hole (pardon the pun) that you can’t get out of. HOT TIP: Our partners at Finlease are the experts in finding the right finance product for the stage your business is it, and ensure that you get the best deal available to you. They are also great blokes. Click here, you can tinker with their finance calculator or email them your details.

7. PPSR for plant hire and rental companies - It's so boring and hard, but so worth it.

If you don’t register your machines on the PPSR, and update every time you shift a machine onto a site, then if a contractor becomes insolvent and is forced into liquidation, your machine can be considered their property and retained by the liquidators until you can prove ownership - usually with your PPSR registration. We’ve heard some CRAZY situations where someone’s entire fleet has been locked behind a fence in a contractors yard waiting for the liquidators to pull their finger out and do a stocktake, and determine machine ownership. We’ve also heard other crazy stories where, in lieu of the correct ownership paperwork, the plant hire company has not been able to prove ownership and they’ve lost the machine to the liquidators.

It's boring, it's paperwork, it's hard to get right, but it's critical. Click here for the full work up.

More Helpful Sht

Business tips: 6 free places to list your local construction company, 5 retaining wall planting ideas, our communications platform just got better, do i need planning permission to build a fence.

Cotswold Depot: 01608 644227

Worcester Depot: 01905 356075

Tewkesbury Depot: 01684 377977

The Real Truth of How Plant Hire Works

You are maybe new to the construction industry and therefore have no clue how the plant hire works. If that’s the case, this resource will help you identify the real truths behind choosing a plant hire service to aid your newly started business. Starting a new venture can be a daunting and stressful time, therefore being able to simplify your decisions and costs is important for the planned longevity of your business.

How does plant hire work?

Plant hire offers businesses the opportunity to obtain their choice of required construction equipment temporarily, for a fee. Commonly, the same supplier may also be able to provide a wide range of tools at the same time. Hiring plant equipment is a very common practice in the construction industry. Offering a very effective solution with a wide range of flexibility makes business life that much easier.

Simply put, plant hire offers the solution to getting your hands on the equipment you need to do the job.

Who can benefit from this type of service?

Plant hire does not only serve the construction industry, but many other industries and trades that require equipment to complete their projects. Self-employed construction professionals and smaller businesses might not find owning this kind of equipment and machinery viable, so hiring it when needed is more cost-effective.

Additionally, using a plant hire service removes the stresses of having to store large machinery long-term, as well as removing the responsibility for its maintenance. Plant hire allows business owners to be far more flexible with their funds. Unlike purchasing a single piece of equipment, a far smaller investment can grant access to a wealth of opportunities. It is clear to see why businesses of all shapes and sizes choose to hire no matter their scale. Using a plant hire service also means that you have access to newer equipment, which is far more efficient than purchasing second-hand.

Why is it called ‘plant’ hire??

There are many myths of where the term ‘plant’ came from. However, the closest that can be found is from the Latin word ‘plantare’ meaning to fix in one place or drive into the ground. Plant hire is a common phrase to use in the construction and maintenance industries, as it relates to the acquirement of machinery designed to help complete a specific task. We will provide you with some examples later in this resource.

Plant hire is an effective way for businesses, and in some cases, DIYers, to obtain machinery they would likewise not wish to purchase and be solely responsible for. Plant hire allows users to only pay a set rate for the period they need the equipment. This method offers less financial risk compared to purchasing machinery outright. Hence the reason why thousands of businesses choose to hire on a daily basis.

What is a plant hire company?

Plant hire companies are specifically designed to provide plant equipment to businesses and the public. These businesses can range in size. From small, local, single establishment businesses, to nationwide, multi-depot providers. Plant hire companies are responsible for purchasing the equipment they wish to make available to hire. It is the sole duty of the plant hire company to ensure that the equipment hired is in safe working order for the customer to use. Poor, faulty machinery can lead to fatal accidents occurring. All plant hire companies should have a service/ maintenance program and procedures in place for every piece of equipment. If they haven’t, the truth is you could be setting yourself up for failure.

Plant hire companies can offer a delivery service of the machinery normally for an additional cost. Some machinery can weigh more than 20 tons, therefore, using a plant hire company to organise the logistics of equipment to your site, can be a massive benefit.

What is a plant hire fleet?

A plant hire fleet refers to the size of stock that a plant hire company has to offer. These can range from as little as a few dozen to hundreds, and even thousands of machines of different shapes and sizes. It is common that you will hear the term fleet thrown about when a plant hire company mentions the scale of its assets available. Finding the right size fleet to meet your needs is crucial to choosing the right supplier.

Fleets may be made up of different sizes of equipment in the same category. Especially if the plant hire supplier specialises in a particular piece of equipment. Finding the right provider to meet your needs can be a challenging task. Check out this additional resource to help you find the best local plant hire company for you .

What types of machinery are available from a plant hire service?

Plant hire services offer a wide range of flexible machinery to suit the requirements of its customers. Some may offer a wider range of machinery than others, however here are some examples of the types of machinery you can expect to see from a plant hire service.

Excavators are available in a wide range of sizes from most plant hire suppliers. Ranging from Mini or micro-sized machines up to large earthmoving excavators. Smaller machines are ideal for tight spaced projects, whereas large excavators are designed for big construction sites where space is less of a hazard. Get help choosing the right size excavator here with this resource.

Telehandlers

Telehandlers are an essential piece of equipment to keep a construction site moving. Also known as the telescopic handler, this machine offers a wide variety of highly productive features to assist large projects. These machines can house many attachments to suit and are able to manoeuvre over very uneven ground. These machines are used all across the country for construction, events, emergencies, demolition, etc. Their versatility truly makes them a game changer.

Dumpers are highly productive machines that are designed to transport earth, stone, or waste across a site safely. These machines come in several designs to suit the size, scale and ground pressure of a project. Some machines are fitted with additional features such as swivel skips for more efficient offloading. Dumpers are the ideal pairing with an excavator for large-scale earthmoving projects.

Compactors are specialised pieces of machinery that are used to force laying particles together to create a stable surface to build on. It is common for them to come in several sizes depending on their application. You can expect to see both vibrating plates and rollers available from your local plant hire supplier. Compactors can be used on soil, earth, stone and even on other materials such as blocks and asphalt.  

Plant attachments

Even if you own your own machinery, plant attachments are available from your supplier to help you maximise your productivity. There are many attachments, buckets, or breakers that are designed for the machinery you are currently using. These attachments can also be requested with machinery also, allowing you to have more control of the equipment you need.

Where to plant hire in Gloucestershire

 If you are looking for a trustworthy plant hire service to work with in Gloucestershire, then get in contact with our team at. WHC Hire Services. With 25 years of experience and a large fleet of high-performance equipment, we offer one of the biggest and safest fleets in the UK. From micro to large excavators , telehandlers and more, you will find everything you need to get the job done safely with our plant hire solution service. Call 01684377977 or see our online catalogue here.

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How to start a small plant shop

Table of Contents

Self-funding

Small business loans, investments, physical store, online store, unique selling point, target audience, market research, customer profile, name and logo, brand guidelines, measurable goals, call to action, online payments, in-store payments, bookkeeping with countingup.

If you have a bit of a green thumb and love taking care of foliage, you might consider starting a plant shop. This business could be a great way to bring more colour into your community while earning money for yourself.

With this guide, you can take a seedling of an idea and grow it into a successful venture. We cover everything you need to know to get started. You’ll be sprouting with success in no time.

Learn everything you need to know about:

• Bookkeeping

Before you can start, you’ll need to think about how you’ll fund your plant shop. There are a few methods to consider, and we’ll cover the three most popular.

If you have the necessary capital to start up your business, you’ll benefit from retaining complete control. Plus, you can avoid taking on debt or paying interest on a loan.

On the other hand, you may decide you need to take out a bank loan . You’ll need to submit an application to seek the amount you need. Not all applications are successful, but having a strong business plan will improve your chances.

The third popular funding option is seeking investments. These can be from friends and family, to invest for a share of the business. Or you could approach angel investors, which, again, would require a good business plan. Professional investors may also offer guidance and connections in exchange for a stake in your business.

After you secure funding, you can decide how to structure your shop. Will it be an online-only delivery service or will you open a physical shop? Either way, you are likely going to need a location . 

If you decide to open a physical shop, search for a location that is accessible and think about how you’ll draw customers. If you look to sell small, indoor plants, a town or city centre may be appropriate. But, if you plan to sell larger ones, your shop may need to be accessible to parking. 

If your shop is online, you will need a storage warehouse for the plants. The location must be accessible for a courier company to deliver your goods if you don’t plan to do it yourself. With that said, maintaining a warehouse full of plants may require a lot of electricity and water, so look at the utility rates when choosing a location.

A physical store or warehouse will require you to keep the plants healthy enough to sell. To do this, you will likely need to think about the necessary equipment . 

• Moisture metre: tells you if your plants need watering, which may be challenging to judge indoors.
• Watering vessel: this can range from a watering can to a sprinkler system, depending on the number of plants.
• Humidifier: this releases water vapour to increase moisture in the air.
• Pots: these are necessary to keep plants in.

You could plan to grow the plants yourself, but that will result in extra waiting time before you can sell. Alternatively, you could have a dedicated supplier lined up to purchase the plants. 

There may be wholesale suppliers of plants or local garden centres, depending on your area. If you intend to bulk-buy plants from them, you may be able to negotiate lower prices per unit. Plus, finding a reliable and exclusive supplier could lead to deals or loyalty discounts. 

When choosing suppliers, you also need to think about transportation. Some suppliers may deliver to you, but if that is not the case, you may need to add a van to the equipment your business requires. Driving to restock or deliver to customers, also means you need to keep track of fuel costs. Countingup, which is a business current account and accounting tool, lets you capture receipts with your phone’s camera and record them as expenses.

To succeed with your plant shop, consider your unique selling point (USP) . A USP helps you choose what elements to focus on to bring in customers. By identifying a gap in the market, you can provide people with something only your shop can offer. 

For example, you could choose to sell a particular type of plant, such as tropical plants. 

Alternatively, you could choose to create a unique experience for your customers. For example, you could launch a subscription service where you send customers one plant a month, including all of the plant care instructions. 

Another important aspect to consider for your plant shop is your target audience . This is the group or a few groups of different people who are likely to be interested enough in what you sell to become customers.

To help you discover your target audience, conduct market research . There are many ways to do this, but speaking to the public is most straightforward. For example, you can send out surveys or set up interviews, which allow you to ask questions to find out who will be interested in the shop. 

For further research, look at the overall plant market by seeing what similar businesses offer. It may help you to determine the demand for certain products and the prices others charge. You can use this information to put together a sales forecast which is useful for a business plan.

After conducting market research, you may have found some similarities between the people your plant shop most appeals to. To use that information effectively, you can put together customer profiles (sometimes called customer avatars). These profiles outline hypothetical people who embody the characteristics of your ideal shoppers.

Customer profiles can include:

• Occupations

Together this profile can summarise who the person is and their lifestyle. It will be a helpful asset for effective branding and marketing.

For new ventures, differentiating your business from others is crucial to success. The best way to do this is to create a strong brand for your plant shop. Base this brand on your customer profiles and judge what appeals to that audience.

The two most impactful elements to your brand are your name and logo . They indicate to customers what your business is and can form a solid first impression. Your title should communicate your brand’s personality verbally or in written form, and the logo should show it visually.

Beyond the name and logo, consider other things to form your branding. Making decisions about these early on and creating brand guidelines mean that you will find it easier to build recognition and form relationships with your customers.

When writing brand guidelines, you can include:

• Colour scheme — choose two or three colours that your brand will use visually (e.g. Coca Cola’s red and white ).
• Tone of voice — decide how you would like to communicate to customers (e.g. friendly, conversational and often cheeky like Innocent ).
• Brand story — create a narrative that suits the feelings you aim to bring out in your customers (e.g. IKEA’s ambition to make furniture accessible).
• Typography — choose one or two fonts and use variations (e.g. Instagram uses the Billabong font).

Once you determine your business brand, you can build a marketing strategy around it. So, look back to your customer profiles and think about how you’ll reach those people. To make sure you can get the best out of promoting your business, you should lay out some goals to achieve and a strategy for your campaign. A marketing campaign may involve a few different ways to advertise but they all will aim for the same goal.

Before you launch a campaign to promote your brand, decide what you set out to achieve. It can be easy to say you want to bring in more customers or gain more followers on social media. Your goals will also need to be measurable , so you can track your progress.

To establish these aims, consider specific numbers to strive for. It would also be helpful to set yourself a timeline. You can look back on the goals and see how close you are to achieving them.

If for some reason, you don’t reach the goal by the time your campaign ends, you can decide to change what you do next time. For example, say you aim to increase your followers on Instagram by 200, but only reach 50. To fix this, you may increase output or alter the content you post.  

To work towards your goals, you need to plan out a campaign strategy. Choose the proper channels to put your marketing and what call to action you will use. 

There are many channels you can use to market your plant shop with a range of costs. For example, a television advert involves costs to filming, producing and paying for the space. On the other hand, a radio advert would be cheaper if you use a local station and record it yourself.

Today, social media is a popular place to focus on for marketing because it’s where most customers spend their time. But it depends on your market. If you aim at people above 65 it may not be the best way to reach them. To decide on your channels, think about the ideal customer and compare marketing they could see within your budget.

The CTA (call to action) needs to be defined and follow the strategy you have laid for your marketing. Without a critical message, it could confuse customers and fail to get them to engage with your brand. All of your marketing should follow a call to action that encourages the audience to do something. For example, you may want people to follow your social media page, enter a competition, or visit the shop, for example. 

Depending on the type of business your plant shop is, whether online or at a physical location, you have to consider how you want to take payments from customers.

If customers pay online, you need to have a website that will allow them to do this. Your site will need to be updated regularly with your catalogue and have a dedicated secure payment method. Many eCommerce businesses use website builders like Shopify , which help you to set up a site and let customers pay. 

If you open a physical shop, you will have to decide whether to take cash, cards or both. 

Accepting cash allows you to have the money immediately, which will increase your cash flow (money being transferred in and out) to help you cover business costs. With that said, it can turn your shop into a security risk if you store lots of cash. Another downside is that keeping track of your money is more complex, as it does not leave a paper trail for you to record. Cash makes filing taxes more challenging to look back on the year.

Card payments are much easier to record and follow. Still, if a customer uses a credit card, providers often take a percentage with a transaction fee. Using cards makes paying much quicker and easier for the customer, but some older customers may still like the option to pay cash.

For more information, see: how to accept credit card payments .

Taking payments of any kind through your business would benefit from setting up a separate business account. Having a dedicated place to direct the money from sales makes seeing what is coming into your plant shop more straightforward. 

Countingup is the business’s current account with built-in accounting software, including an expense categorisation feature. It lets you sort your costs in an accessible and transparent way. 

Having your incoming and outgoing available for you to see through the Countingup app also provides you with a cash flow insights feature. It gives you updates on the financial management of your business, which continue as you grow your shop.

Start your three-month free trial today.  Find out more here .

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• Counting Up on LinkedIn

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Get this complete sample business plan as a free text document.

Tools Rental Business Plan

Start your own tools rental business plan

Borrow My Tools

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Borrow My Tools is a start-up company serving the San Mateo, CA community with home improvement tools for lease or rental. The business has been formed as a California S Corporation with Josh Taylor as the primary shareholder. Borrow My Tools will offer customers a range of common home improvement tools with benchmarked levels of customer service.

The Market San Mateo has two distinct market segments that are Borrow My Tools’ most attractive customers. The first segment is individuals who are undertaking a home improvement project on their house. While some of these customers know exactly what they need in terms of tools, many of them are coming to Borrow My Tools specifically for the expertise and guidance for the home improvement project. The individuals have 54,050 potential group members. The annual growth rate of this segment is 5%. The second segment of customers are handymen who have been hired to complete a project for a client. Because the cost of purchasing tools is so high and there are so many tools to lease available, handymen are attracted to Borrow My Tools because of their plentiful leasing and rental options. The handymen have 1,200 potential segment member and a 4% growth rate.

Services Borrow My Tools leases and rents a variety of tools. The tools have been categorized into three large groups: wood, exterior, and assorted. All of the tools that Borrow My Tools leases or rents are of the highest quality and are in outstanding condition. Borrow My Tools has developed a strategic relationship with a premier leasing company to allow customers to lease tools from them. Leasing is advantageous in many ways:  the customer always has the nicest/newest version to work with, precious capital is not tied up, lines of credit from banks are not effected by leases, and certain tax advantages are conferred to the lessee.

Competitive Edge Josh, a veteran of both the contractor industry and the tool rental/leasing industry is taking his industry observations and carving out a niche in the industry by emphasizing two competitive edges that will greatly assist Borrow My Tools in gaining market share:

• Highest-quality product offerings : If customers are going to lease or rent tools they want to use the best products. Borrow My Tools’ procurement process only purchases the finest tools in the respective category, ensuring that customers will be thrilled with the selection. In addition to starting with the highest quality tools, the products are meticulously maintained so that they continue to appear as new.
• Benchmarked customer service : The function of Borrow My Tools sales assistants is to help the customer in any way possible. This includes determining which tool is best for the job, explaining the proper way to use the tool, as well as offering suggestion on how best to complete the job. Every sales agent is the customer’s personal expert. It is Borrow My Tools’ mission to ensure every customer has their expectations exceeded.

Borrow My Tools is an exciting new concept that recognizes the competitor’s customer service short comings and leverages Borrow My Tools’ phenomenal customer support to address the market niche that wants a positive experience and needs assistance with their lease or rental. By adhering to a comprehensive rental business plan strategy, Borrow My Tools will quickly gain market share and transform this start-up’s business into a profitable venture.

Borrow My Tools’ mission is to offer the finest selection of home improvement tools for the San Mateo Community. Borrow My Tools will support the tools with the finest customer service. All customers will have their expectations exceeded.

Keys to Success

• Maintain a sufficient inventory of high-quality tools, kept in excellent condition.
• Ensure all staff are extremely knowledgeable on all of the offered tools.
• Maintain strict inventory and accounting controls, reducing overhead while assuring availability at the same time.
• To have 70% of the tools rented by month seven.
• Reach profitability by year two.
• Achieve self-sustaining revenue by year two.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Borrow My Tools is a CA registered S corporation. Registration took place in January of 2004. The main shareholder is Josh Taylor. Borrow My Tools offers a range of home improvement tools which may be rented for intervals of less than one month and leased for intervals of more than a month. Tools will serve both individuals interested in improving their home as well as handymen.

Start-up Summary

Borrow My Tools will incur a variety of expenses associate with the start up phase of the business. Some expenses will be equipment related, for inventory as well as for operations. Other expenses will be from service providers used to assist in the development of operations. The following is a partial list:

Service providers

• Attorney: Corporate formation.
• Accountant: PeachTree set up including inventory module.

Inventory equipment Assorted range of all the tools that will be rented. For a current complete list of the available tools please view the Services section.

Computer system

• Three workstations with Microsoft Office licenses
• PeachTree Accounting with network access
• Two laser printers
• Broadband Internet connection

Retail space equipment

• Assorted shelving units
• Three desk-based work areas
• Assorted light fixtures

Repair area Variety of tools for maintenance and repair of the tool inventory.

Company Ownership

Borrow My Tools is an S Corp owned primarily by Josh Taylor.

Borrow My Tools offers the San Mateo community a wide range of tools that can be rented or leased depending on the length of time needed. Borrow My Tools will offer a bright, cheerful showroom. Customers will be greeted when they walk in and offered assistance. While Borrow My Tools rents tools, the real service is the attention that the customer receives. This takes the form of assistance in determining what tools are needed. The customer is then shown exactly how to use the tool and given plenty of tips to make them as proficient as possible. 

The tools are available for rent if the borrowing period is less than one month and are available for lease for periods beyond one month. Tools that will be leased/rented are grouped into three broad categories:

• Radial arm saw
• Drum sander
• Industrial cordless drill. This unit is rented with several battery packs
• Air compressor. For use with the nail gun, paint sprayer, and pressure washer

Exterior products

• Pressure washer
• Paint sprayer. Also included is a roller attachment
• Roto tiller

Borrow My Tools provides each customer with an instruction manual for each tool which includes how best to use it, maintenance instructions, and ideal applications for the tool. While customers are likely to find this printed information useful, the knowledge communicated by the sales staff will be even more helpful.

For leasing customers, Borrow My Tools has developed a strategic relationship with a premier local leasing company that will assist with the financials aspect of leasing. Borrow My Tools is also able to work with another leasing company if their preferred vendor is not able to assist the customer. Several leases are available, some that that provide a $1 buyout for the customer at the end of the term. Others leases keep the buy out price higher, effectively reducing the money payments. Leasing equipment for many different people is a very useful option. Leasing provides the following benefits:

• Frees up working capital.
• Protects  line-of-credit. Lease payments do not have an impact on bank credit line.
• Eliminates obsolescence. Provides up-to-date equipment.
• Gain tax advantages. Lease is tax deductible as a business expense.
• Lower monthly payments.

Market Analysis Summary how to do a market analysis for your business plan.">

Borrow My Tools has identified two distinct customer segments that will be the most attractive. The first segment is individuals who will be performing home improvement work themselves. The second is the handyman who will be performing a job in a client’s house and need to use tools which he/she does not own. The Market Segmentation section provides additional detail about the market segment including useful demographic data. This section is also supported by a table with additional detail about the two markets.

Market Segmentation

Borrow My Tools has identified two segments of the market that are most attractive to the tool rental/lease business model: individuals and handymen.

Individuals : This market segment is homeowners who are interested in undertaking a home improvement project but do not have the equipment to compete the project. They may already possess the skills to complete the job or have the aptitude to learn with a Borrow My Tools’ sales assistant’s help.

• The individuals have typically owned the home for one to three years, or for more than ten years.
• 76% have undergraduate schooling
• 59% perform other forms of home improvements around the house
• Only 16% will be coming to Borrow My Tools for their very first home improvement project 
• 43% will be having one of their more experienced friends assisting them with the project on hand

Handymen : This is the market segment of service providers who perform a wide range of home improvement services for customers. The average handyman does not have all the tools needed to complete a job. There are so many different tools out there and the industrial quality ones cost so much that is often not cost effective for a handyman to own all of the tools that he may need. Borrow My Tools will serve the handyman market well with high quality, good condition industrial offerings.

Target Market Segment Strategy

Borrow My Tools has selected these two customer segments because they will provide the most revenue to Borrow My Tools relative to other customer groups. Individuals will be a significant revenue driver since they are all home owners who are looking to make improvements in their home. The unexpected costs of home ownership create a great incentive to pursue improvement projects themselves as a means of saving money. As long as the individual has the time (often what weekends are for) and a sense of adventure, they can go to Borrow My Tools, rent or lease tools, receive instructions on how to use them and complete the home improvement project on their own, saving significant amounts of money. 

Knowledgeable friends and neighbors are often at the disposal of our individuals segment and this is great for Borrow My Tools’ business because it creates incentives for individuals to undertake projects a bit out of their skill range, feeling the comfort that they will have the help of a neighbor/friend to guide them through the project. Often the neighbor will tell then to go and rent a specific tool and that they will show them how to use it. 

Handymen are also a great target segment because they are more likely to undertake the leasing option relative to the individuals. While many handymen have a significant collection of tools, it is difficult for them to have every tool since there are just so many. From a capital expenditure standpoint it makes sense not to buy every conceivable tool, but to rent or lease tools on an as needed basis. The handymen typically already have the skills to operate the tools, they just are being conservative with their limited capital resources. They will rent or lease the tool when they have a job that requires it. Having a leasing option significantly decreases overhead.

Service Business Analysis

The tool/equipment  rental/leasing industry is a large, disperse industry. Some companies only lease high-end expensive equipment, such as equipment that is in excess of $100K. For lower priced equipment you see leasing as well as rentals as an option. Most companies in this industry compete on selection. Their philosophy is the greater the selection, the more competitive they are. This tends to serve a specific type of customer, someone who knows exactly what they want or need. When a customer enters the retail space of one of these companies they are shown a long list of available equipment and are asked to make a choice.

Borrow My Tools has decided to compete on different terms. Selection is not of primarily importance, but customer service and support are. Through a careful selection of the most important or used tools, Borrow My Tools has chosen a good selection of popular tools that are supported with a knowledgeable staff.

The following Competition and Buying Patterns section details the specific competitors that Borrow My Tools faces in the San Mateo market and provides the pro and cons of the different competitors.

Competition and Buying Patterns

A-Z Rentals A large, comprehensive rental company. Selection, not service is key here.

• Pros : Rents a wide range of tools and equipment including wood tools, machining tools, catering supplies, even pianos.
• Cons : The staff is not able to provide support for products.

The Tool Shed A tool leasing company that leases a wide range of tools. The primary customers are contractors.

• Pros : Wide selection of high end tools, a lot of leasing options.
• Cons : Tool experts need only apply, this company does not hold the hands of beginners.

Strategy and Implementation Summary

Competitive edge.

Borrow My Tools will focus on two key elements which comprise the competitive edge, an advantage that will assist in fast growth in the market:

• High quality products : Borrow My Tools will only rent the highest-quality tools. For so many customers the decision of who to lease/rent from comes down to the tools that they have to use. Are the tools high end, industrial quality? What is the condition of the tools, have they been well maintained?
• Outstanding customer service : Borrow My Tools recognizes that in order to be competitive, it must support leases and rentals with the highest quality customer service. All sales agents are trained in the various tools. In fact, the training is supplementary to the existing knowledge of the tools. The sales agents are hired based on their existing knowledge. Another component of the customer service is the assistance the agents provide in terms of offering insight into “best practices” for the given job that the customer is looking to fulfill.

Marketing Strategy

Borrow My Tools will use a targeted marketing campaign as a way of developing visibility for the company. The marketing campaign will concentrate on the following consumer benefits:

• A wide range of leasing and rental options.
• A good selection of the most popular tools.
• All tools are top of the line, meticulously maintained.
• Borrow My Tools offers the highest level of customer service. Each customer’s hand will be held through the entire process ensuring that their needs are met. If a customer has never used a specific tool before, Borrow My Tools will show the customer exactly how to use it so that they have complete comfort in the operation of the tool.

Several different marketing methods will be used:

Newspaper Advertisements Borrow My Tools will place newspaper advertisements in the local newspaper to raise awareness about the various services that it offers. 

Yellow Pages Borrow My Tools will also have a half page advertisement in the Yellow Pages. It expects a significant amount of business from the Yellow Pages. This is based on the philosophy that when a person is interested in a service they are not familiar with they will consult the Yellow Pages.

Sales Strategy

Borrow My Tools’ sales strategy is concerned with the need to convert one-time users into frequent customers. This is especially important because any person that has a home and an improvement project has many different projects. This also applies to the handymen whose full-time job is the completion of projects that require specific tools. If Borrow My Tools is able to impress the handymen then they will make Borrow My Tools their preferred vendor.

The assurance of increased sales, driven on repeat business is quite simple, ensure that customers always have their expectations exceeded. Additionally, a customer who is happy with a service provider is will tell friends about their positive experiences. A referral from a personal friend based on experience are often the strongest recommendations that can be offered.

Sales Forecast

The sales forecast will be tracked by the different tool categories that Borrow My Tools offers. The cost of goods sold will be based on the time it takes for the service department to review each pice of leased/rented equipment and bring it back to like new specifications for the next customer.

The sales forecast is a conservative prediction of sales. It is broken down by month for year one and tracks yearly totals for years two and three. Preceding the following table are graphical representations of the forecast by month as well as year.

Borrow My Tools has identified several milestones that will assist the organization in reaching pre-identified goals. Milestones were chosen to be realistic, achievable, yet lofty. The following table details the specific milestones, what department is responsible and the time frame for accomplishment.

Web Plan Summary

A website will be developed to allow customers to view a lease/rental catalog at their convenience. The site will offer descriptions of the different tools as well as tips on proper use. When the tool selection changes the site will be updated.

Website Marketing Strategy

• Submission to search engines: The site will be submitted to various search engines so when someone enters a common keyword into the search engine, Borrow My Tools’ site comes up on the list of “hits.”
• The Web address will be printed on all forms of literature: This includes all invoices, advertisements, and other promotional material.

Development Requirements

Borrow My Tools has informally discussed the production of the website with a local teacher who does website programming as a side job.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Josh Taylor received his undergraduate degree in small business management from the University of California. Following his schooling, Josh worked for seven years for a contractor. Then he worked at a local tool rental facility and within two years he advanced to the manager’s position.

Personnel Plan

The following people/positions will be needed for Borrow My Tools:

• Josh : Will play the manager position, but will also be doing a little bit of everything.
• Sales : There will be a total of three sales assistants.
• Accounting/bookkeeper : This is a part-time position.
• Service technicians : There will be two technicians who are responsible for the maintenance and preparation of the various tools.

Financial Plan investor-ready personnel plan .">

The following sections will outline important financial information.

Important Assumptions

The following table details important financial assumptions.

Break-even Analysis

The Break-even Analysis table and chart indicate what is needed in monthly revenue to reach the break even point.

Projected Profit and Loss

The following table and charts will indicate projected profit and loss.

Projected Cash Flow

The following table and chart will indicate projected cash flow.

Projected Balance Sheet

The following table will indicate the projected balance sheet.

Business Ratios

The following table represents ratios specific to Borrow My Tools as well as industry average ratios.

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Simple Business Plan Templates

By Joe Weller | April 2, 2020

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In this article, we’ve compiled a variety of simple business plan templates, all of which are free to download in PDF, Word, and Excel formats.

On this page, you’ll find a one-page business plan template , a simple business plan for startups , a small-business plan template , a business plan outline , and more. We also include a business plan sample and the main components of a business plan to help get you started.

Simple Business Plan Template

Download Simple Business Plan Template

This simple business plan template lays out each element of a traditional business plan to assist you as you build your own, and it provides space to add financing information for startups seeking funding. You can use and customize this simple business plan template to fit the needs for organizations of any size.

One-Page Business Plan Template

Download One-Page Business Plan Template

Excel | Word | PDF  | Smartsheet

Use this one-page business plan to document your key ideas in an organized manner. The template can help you create a high-level view of your business plan, and it provides easy scannability for stakeholders. You can use this one-page plan as a reference to build a more detailed blueprint for your business. 

For additional single page plans, take a look at " One-Page Business Plan Templates with a Quick How-To Guide ."

Simple Fill-in-the-Blank Business Plan Template

Download Simple Fill-in-the-Blank Business Plan Template

Use this fill-in-the-blank business plan template to guide you as you build your business plan. Each section comes pre-filled with sample content, with space to add customized verbiage relevant to your product or service.

For additional free, downloadable resources, visit " Free Fill-In-the-Blank Business Plan Templates ."

Simple Business Plan for Startup

‌ Download Startup Business Plan Template — Word

This business plan template is designed with a startup business in mind and contains the essential elements needed to convey key product or service details to investors and stakeholders. Keep all your information organized with this template, which provides space to include an executive summary, a company overview, competitive analysis, a marketing strategy, financial data, and more. For additional resources, visit " Free Startup Business Plan Templates and Examples ."

Simple Small-Business Plan Template

Download Simple Small-Business Plan Template

This template walks you through each component of a small-business plan, including the company background, the introduction of the management team, market analysis, product or service offerings, a financial plan, and more. This template also comes with a built-in table of contents to keep your plan in order, and it can be customized to fit your requirements.

Lean Business Plan Template

Download Lean Business Plan Template

This lean business plan template is a stripped-down version of a traditional business plan that provides only the most essential aspects. Briefly outline your company and industry overview, along with the problem you are solving, as well as your unique value proposition, target market, and key performance metrics. There is also room to list out a timeline of key activities.

Simple Business Plan Outline Template

Download Simple Business Plan Outline Template

Word  | PDF

Use this simple business plan outline as a basis to create your own business plan. This template contains 11 sections, including a title page and a table of contents, which details what each section should cover in a traditional business plan. Simplify or expand this outline to create the foundation for a business plan that fits your business needs.

Simple Business Planning Template with Timeline

Download Simple Business Planning Template with Timeline

Excel | Smartsheet

This template doubles as a project plan and timeline to track progress as you develop your business plan. This business planning template enables you to break down your work into phases and provides room to add key tasks and dates for each activity. Easily fill in the cells according to the start and end dates to create a visual timeline, as well as to ensure your plan stays on track.

Simple Business Plan Rubric Template

Download Simple Business Plan Rubric

Excel | Word | PDF | Smartsheet

Once you complete your business plan, use this business plan rubric template to assess and score each component of your plan. This rubric helps you identify elements of your plan that meet or exceed requirements and pinpoint areas where you need to improve or further elaborate. This template is an invaluable tool to ensure your business plan clearly defines your goals, objectives, and plan of action in order to gain buy-in from potential investors, stakeholders, and partners.

Basic Business Plan Sample

Download Basic Business Plan Sample

This business plan sample serves as an example of a basic business plan that contains all the traditional components. The sample provides a model of what a business plan might look like for a fictional food truck business. Reference this sample as you develop your own business plan.

For additional resources to help support your business planning efforts, check out “ Free Strategic Planning Templates .”

Main Components of a Business Plan

The elements you include in your business plan will depend on your product or service offerings, as well as the size and needs of your business. 

Below are the components of a standard business plan and details you should include in each section:

• Company name and contact information
• Website address
• The name of the company or individual viewing the presentation
• Table of Contents
• Company background and purpose
• Mission and vision statement
• Management team introduction
• Core product and service offerings
• Target customers and segments
• Marketing plan
• Competitive analysis
• Unique value proposition
• Financial plan (and requirements, if applicable)
• Business and industry overview
• Historical timeline of your business
• Offerings and the problem they solve
• Current alternatives
• Competitive advantage
• Market size
• Target market segment(s)
• Projected volume and value of sales compared to competitors
• Differentiation from competitors
• Pricing strategy
• Marketing channels
• Promotional plan
• Distribution methods
• Legal structure of your business
• Names of founders, owners, advisors, etc.
• Management team’s roles, relevant experience, and compensation plan
• Staffing requirements and training plans
• Physical location(s) of your business
• Additional physical requirements (e.g., warehouse, specialized equipment, facilities, etc.)
• Production workflow
• Raw materials and sourcing methods
• Projected income statement
• Projected cash flow statement
• Projected balance sheet
• Break-even analysis
• Charts and graphs
• Market research and competitive analysis
• Information about your industry
• Information about your offerings
• Samples of marketing materials
• Other supporting materials

Tips for Creating a Business Plan

It’s easy to feel overwhelmed at the thought of putting together a business plan. Below, you’ll find top tips to help simplify the process as you develop your own plan. 

• Use a business plan template (you can choose from the variety above), or refer to the previous section to create a standard outline for your plan.
• Modify your outline to reflect the requirements of your specific business. If you use a standard business plan outline, remove sections that aren’t relevant to you or aren’t necessary to run your business.
• Gather all the information you currently have about your business first, and then use that information to fill out each section in your plan outline.
• Use your resources and conduct additional research to fill in the remaining gaps. (Note: It isn’t necessary to fill out your plan in order, but the executive summary needs to be completed last, as it summarizes the key points in your plan.)
• Ensure your plan clearly communicates the relationship between your marketing, sales, and financial objectives.
• Provide details in your plan that illustrate your strategic plan of action, looking forward three to five years.
• Revisit your plan regularly as strategies and objectives evolve.
• What product or service are we offering?
• Who is the product or service for?
• What problem does our product or service offering solve?
• How will we get the product or service to our target customers?
• Why is our product or service better than the alternatives?
• How can we outperform our competitors?
• What is our unique value proposition?
• When will things get done, and who is responsible for doing them?
• If you need to obtain funding, how will you use the funding?
• When are payments due, and when do payments come in?
• What is the ultimate purpose of your business?
• When do you expect to be profitable?

To identify which type of business plan you should write, and for more helpful tips, take a look at our guide to writing a simple business plan .

Benefits of Using a Business Plan Template

Creating a business plan can be very time-consuming, especially if you aren’t sure where to begin. Finding the right template for your business needs can be beneficial for a variety of reasons. 

Using a business plan template — instead of creating your plan from scratch — can benefit you in the following ways:

• Enables you to immediately write down your thoughts and ideas in an organized manner
• Provides structure to help outline your plan
• Saves time and valuable resources
• Helps ensure you don’t miss essential details

Limitations of a Business Plan Template

A business plan template can be convenient, but it has its drawbacks — especially if you use a template that doesn’t fit the specific needs of your business.

Below are some limitations of using a business plan template:

• Each business is unique and needs a business plan that reflects that. A template may not fit your needs.
• A template may restrict collaboration with other team members on different aspects of the plan’s development (sales, marketing, and accounting teams).
• Multiple files containing different versions of the plan may be stored in more than one place.
• You still have to manually create charts and graphs to add to the plan to support your strategy.
• Updates to the plan, spreadsheets, and supporting documents have to be made in multiple places (all documents may not update in real time as changes are made).

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The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done. Report on key metrics and get real-time visibility into work as it happens with roll-up reports, dashboards, and automated workflows built to keep your team connected and informed. 

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How To Write A Business Plan (2024 Guide)

Updated: Apr 17, 2024, 11:59am

Table of Contents

Brainstorm an executive summary, create a company description, brainstorm your business goals, describe your services or products, conduct market research, create financial plans, bottom line, frequently asked questions.

Every business starts with a vision, which is distilled and communicated through a business plan. In addition to your high-level hopes and dreams, a strong business plan outlines short-term and long-term goals, budget and whatever else you might need to get started. In this guide, we’ll walk you through how to write a business plan that you can stick to and help guide your operations as you get started.

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Drafting the Summary

An executive summary is an extremely important first step in your business. You have to be able to put the basic facts of your business in an elevator pitch-style sentence to grab investors’ attention and keep their interest. This should communicate your business’s name, what the products or services you’re selling are and what marketplace you’re entering.

Ask for Help

When drafting the executive summary, you should have a few different options. Enlist a few thought partners to review your executive summary possibilities to determine which one is best.

After you have the executive summary in place, you can work on the company description, which contains more specific information. In the description, you’ll need to include your business’s registered name , your business address and any key employees involved in the business. 

The business description should also include the structure of your business, such as sole proprietorship , limited liability company (LLC) , partnership or corporation. This is the time to specify how much of an ownership stake everyone has in the company. Finally, include a section that outlines the history of the company and how it has evolved over time.

Wherever you are on the business journey, you return to your goals and assess where you are in meeting your in-progress targets and setting new goals to work toward.

Numbers-based Goals

Goals can cover a variety of sections of your business. Financial and profit goals are a given for when you’re establishing your business, but there are other goals to take into account as well with regard to brand awareness and growth. For example, you might want to hit a certain number of followers across social channels or raise your engagement rates.

Another goal could be to attract new investors or find grants if you’re a nonprofit business. If you’re looking to grow, you’ll want to set revenue targets to make that happen as well.

Intangible Goals

Goals unrelated to traceable numbers are important as well. These can include seeing your business’s advertisement reach the general public or receiving a terrific client review. These goals are important for the direction you take your business and the direction you want it to go in the future.

The business plan should have a section that explains the services or products that you’re offering. This is the part where you can also describe how they fit in the current market or are providing something necessary or entirely new. If you have any patents or trademarks, this is where you can include those too.

If you have any visual aids, they should be included here as well. This would also be a good place to include pricing strategy and explain your materials.

This is the part of the business plan where you can explain your expertise and different approach in greater depth. Show how what you’re offering is vital to the market and fills an important gap.

You can also situate your business in your industry and compare it to other ones and how you have a competitive advantage in the marketplace.

Other than financial goals, you want to have a budget and set your planned weekly, monthly and annual spending. There are several different costs to consider, such as operational costs.

Business Operations Costs

Rent for your business is the first big cost to factor into your budget. If your business is remote, the cost that replaces rent will be the software that maintains your virtual operations.

Marketing and sales costs should be next on your list. Devoting money to making sure people know about your business is as important as making sure it functions.

Other Costs

Although you can’t anticipate disasters, there are likely to be unanticipated costs that come up at some point in your business’s existence. It’s important to factor these possible costs into your financial plans so you’re not caught totally unaware.

Business plans are important for businesses of all sizes so that you can define where your business is and where you want it to go. Growing your business requires a vision, and giving yourself a roadmap in the form of a business plan will set you up for success.

How do I write a simple business plan?

When you’re working on a business plan, make sure you have as much information as possible so that you can simplify it to the most relevant information. A simple business plan still needs all of the parts included in this article, but you can be very clear and direct.

What are some common mistakes in a business plan?

The most common mistakes in a business plan are common writing issues like grammar errors or misspellings. It’s important to be clear in your sentence structure and proofread your business plan before sending it to any investors or partners.

What basic items should be included in a business plan?

When writing out a business plan, you want to make sure that you cover everything related to your concept for the business,  an analysis of the industry―including potential customers and an overview of the market for your goods or services―how you plan to execute your vision for the business, how you plan to grow the business if it becomes successful and all financial data around the business, including current cash on hand, potential investors and budget plans for the next few years.

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Julia is a writer in New York and started covering tech and business during the pandemic. She also covers books and the publishing industry.