Business plan - rental of special equipment: necessary equipment, cost calculation, list of documents. Rental of special equipment as a business from A to Z

Entrepreneurs who already have some experience in running their own business understand that the business of renting special equipment is one of the most profitable, but at the same time, costly activities. As you know, it is simply impossible to build buildings without special equipment. This may require excavators, cranes, and bulldozers. All this is very expensive, but for one-time work it makes no sense to buy such expensive equipment, so many people try to rent everything they need. Entrepreneurs have long realized that this is a good and fairly free niche for business. Not every businessman has the means to maintain such an impressive fleet of special equipment, so the competition here is quite low.

• What equipment to choose for rental business?
• What documents are needed to open a business?
• Which taxation system to choose?
• Wage-earners
• How much money do you need to start?
• How much can you earn on the rental of special equipment?
• How to start a business for renting special equipment
• Which OKVED to indicate
• Do you need permission

Nowadays, the business of renting special equipment is developing rapidly, so while this niche is relatively free, businessmen have the opportunity to take their place. However, you need to remember that serious investments are required here. The thing is that in addition to buying the equipment itself, you will have to spend money on parking, maintenance, salaries for specialists and advertising.

What equipment to choose for rental business?

First of all, the task of the entrepreneur will be to study the demand in the region and locality. In addition, it is necessary to determine the presence of competition. The easiest and most profitable way would be to purchase universal construction equipment.

But there may be too many such offers in the region, so the rental business may simply burn out. Highly specialized equipment may be less in demand, but competition here will be minimal.

As for the manufacturers and the quality of equipment, this plays an important role for customers. Today, imported special equipment is in the greatest demand. Such options are of high quality, but their cost is quite high. Japanese, American and European equipment can be 3 times more expensive than domestic and Chinese ones, but most often customers choose just such cars.

Of course, it is best to buy a completely new equipment under warranty. But it is expensive, so many novice businessmen try to save money and buy special vehicles in the secondary market. In this case, it is advisable to take products from famous brands. It lasts longer, and it will be easier to find spare parts for it.

If we talk about the price, then new excavators can be bought for 2 million rubles, and in the secondary market they are sold up to 1.5 million rubles. A good motor grader from the assembly line will cost at least 10 million rubles, and the price of a used one is already dropping to 7 million rubles. Thus, you can save money, but you need to do it wisely. It is possible to acquire such expensive equipment in the secondary market only if you have special knowledge. Otherwise, you can get scrap metal.

What documents are needed to open a business?

Russian legislation provides for mandatory registration of construction equipment, that is, a businessman will have to register his entire fleet of vehicles. The list of cars required for registration with Gostekhnadzor includes all special equipment that does not have to be registered with the traffic police. This includes excavators, electric cars, rollers, graders, combines, tractors and other similar equipment with an engine capacity of more than 50 cm³.

Registration is carried out at the place of official residence of the owner of the special equipment. For individual businessmen, the state duty is 1,900 rubles, and legal entities will have to pay about 5,000 rubles.

No modern construction can do without special equipment. Even the ancient Egyptians, when building the pyramids, used ingenious devices to deliver stones from the quarry to the construction site and to lift them to great heights. What can we say about modern residential high-rise buildings and business centers! But will the idea of ​​creating a business for renting construction equipment be profitable? Our business plan for renting special equipment will answer this question. Based on it, you can make your own plan and find out whether such a business will be profitable in these conditions.

Project Summary

The first thing to understand when planning such an enterprise is the enormous investment that it will require. The cost of one unit of construction equipment starts from 3 million, and for some positions it reaches 10 million or more. And to ensure a more or less adequate assortment of such units in the hangars, there must be at least two dozen different cars. Ideally, 100 million rubles is the amount with which, in principle, it is worth starting such an enterprise from scratch.

Another nuance is that in order to acquire any kind of profit, such a quantity of equipment must be provided with orders. At least 70% of the time, but better up to 90%. All the time that the equipment is in the hangar and does not bring money automatically becomes unprofitable. And in this industry, this is a really serious risk.

In our case, it is not possible to immediately enter the market with a full range of construction equipment. There is no sufficient budget for this and there is no certainty that the company will immediately start making a profit sufficient to recoup leasing payments.

Therefore, a strategy is chosen for targeted closing of positions, which are especially needed by the construction industry in the region.

The market analysis algorithm is chosen as follows:

1. A list of construction companies in the city is being compiled. Separately, those who have their own equipment are taken out, separately - those that use the services of rental organizations. The second category can become our regular customers.
2. A list of organizations and private entrepreneurs who own any kind of construction equipment is compiled. It is prescribed what specific types of special equipment they offer.
3. Telephone conversations are held with the heads of construction companies or heads of departments that are responsible for renting equipment. It turns out who they work with, what are the pros and cons of current partners and what equipment the company needs in addition. Let's make a reservation here: ideally, the founder of a company in this direction should have connections in the management of construction organizations and / or have his own construction company. Personal relationships make it possible to obtain information more accurately. Otherwise, serious obstacles will have to be overcome, since it will not be easy for third parties to obtain commercial information, especially those who are not yet ready to make a specific offer.
4. The most problematic positions for this region are identified, for which there is a shortage of proposals in the region.
5. Estimated construction volumes for the coming years and data for past years are being clarified from open sources. Based on these data and information about the needs of construction companies, an indicative plan is drawn up for loading priority units of construction equipment.
6. The most profitable positions in which it is planned to invest are highlighted.

Our research yielded the following results:

• Most of all in the region there is a shortage of the following pieces of equipment: concrete pump trucks, cement trucks and motor graders.
• At the same time, it was found that the pace of construction of roads in the region in recent and future years is insufficient to provide motor graders with work. In addition, the work of this special equipment is more affected by the seasonal factor (up to 4-5 months a year, its loading is expected to be minimal). Therefore, we refuse to purchase motor graders at the first stage.
• It was revealed that companies renting special equipment can be divided into categories: capital construction, road construction, public utilities, car evacuation.

In order to optimize the budget, it is planned to invest in the purchase of equipment in one area, establish itself in it, and then expand the range of offers. It is also planned to conclude agreements with private entrepreneurs with personal special equipment and also work as a dispatch service on the basis of a sublease agreement and receive a commission. We focus on the construction industry.

Purchase of equipment

It is planned that when starting the business, 10 units of construction equipment will be acquired. More details in the table:

The equipment is supplied by one supplier, who are provided with a 10% discount for a one-time purchase of 10 units of equipment on lease and an advance payment of 50% of the total cost.

Thus, the total investment in equipment will amount to 43,285,000 rubles, of which 21,642,500 rubles are paid at a time, and the rest is leased for 5 years at 5% per annum with the right to early repayment of the amount.

The amount of monthly payments in this scenario will be 745 thousand rubles.

Registration

The advantage of the field of activity in the leasing of special equipment, in contrast to the activities of the same construction companies, is that entry into the SRO is not required. Licensing and other certification, in principle, is also not needed. But there are some difficulties:

• Registration in Gostekhnadzor.
• Registration in the traffic police.
• CASCO insurance.

About 3 million rubles will have to be paid at a time for registration and insurance. The major part is insurance, but the cost of it is included in a separate line in the contract with the tenant, and, as a rule, insurance payments for each equipment are paid off in a year. Therefore, we include them in the starting costs, but in the final calculation of expenses / incomes we will not include insurance in fixed costs.

For doing business, the LLC format is chosen, since we will work mainly with construction companies. The volume of cooperation with individuals will be minimal, so there is no point in opening an additional IP for this purpose.

OSNO is chosen as the taxation system.

OKVED 43.99 "Other specialized construction work not included in other groups, including rental of cranes and other construction equipment with an operator" is selected.

Room search

To work, you need an area on the outskirts of the city. An industrial zone or an area on the territory of a former motor depot is suitable. We managed to find a place in the industrial area of ​​600 sq. m, which will be enough to accommodate and store construction equipment. There is also a 50 sq. m suitable for office space.

Consider the costs in the table:

On the territory of the base there is a hangar with an area of ​​350 sq. m, which can be used for overnight storage of special equipment. It is undesirable to leave it on the street, since precipitation can adversely affect its condition.

Recruitment

This is one of the key positions of the profitability of this business, since it is not enough just to purchase expensive equipment. It must be able to manage, which will require qualified drivers and operators. All breakdowns will fall on the owner, since the driver-culprit will not physically be able to pay several hundred thousand for its repair and 10-15 thousand rubles of daily losses from downtime.

In addition, the law in this case is on the side of the driver: he can be fired, withhold part of the costs from his salary (minuscule in this case), but it will not be possible to force him to sell the apartment.

Therefore, initially the task is to hire qualified employees who have been trained to work with this equipment and have at least 3 years of experience in their specialty. If you can’t recruit a full staff of those, you will have to invest in training employees yourself.

Established unit	Salary (including funds)	Units in the state	Sum
Concrete mixer operator	45 000	3	135 000
truck driver	40 000	3	120 000
Concrete pump operator	45 000	1	45 000
Bulldozer	40 000	2	80 000
Director	50 000	1	50 000
Accountant	35 000	1	35 000
Chief mechanical engineer	40 000	1	40 000
Logistics Manager	35 000	1	35 000
Dispatcher	25 000	2	50 000
Nurse (combination)	10 000	1	10 000
Checkpoint guard	20 000	3	60 000
Total		16	660 000

The calculations were made taking into account the fact that specialists do not need to be trained additionally. However, it is possible that this will also require additional costs. For example, a truck-mounted concrete pump is a complex installation, and there are not so many specialists in working with it in the regions. It may be necessary to send a specialist to train how to work with it.

The checkpoint guards will work in shifts, according to a day/two schedule. Their functions include the release of transport on the line and the return mark.

The chief mechanic controls the work of driver-operators, puts a resolution on the waybills, confirming the suitability of the technical condition of the equipment to perform the assigned tasks. They also solve the issues of organizing repairs, providing equipment with fuel, consumables.

The head of the logistics department is responsible for the interaction of dispatchers and drivers, document management with contractors. Dispatchers are in charge of direct communication with clients on work issues, as well as the search for subcontracts for the execution of orders for equipment that is not owned.

The nurse goes to work in the morning and allows drivers to work for medical reasons, including checking the absence of alcohol in the blood.

Advertising and marketing

In view of the rather narrow target audience - construction organizations - the main promotion channel will be the direction of commercial offers and the conquest of the market with a level of services that exceeds competitors. The main thing that construction organizations look at when working with companies:

• Strict observance of the agreements (timely delivery of equipment to the site, high qualification and skill of drivers, the minimum number of breakdowns that harm not only the lessor, but also disrupt the construction time).
• Having all the necessary equipment in one place to simplify documentation (working with one reliable counterparty is always easier than several).
• Competitive price level.

Negotiations at the first stage are handled personally by the director of the company (founder). Further, these functions are shifted to dispatchers, only negotiations at the level of top management remain in the director's jurisdiction.

A good option would be branding equipment, in which case it will become an advertisement for itself.

A business card website is being created and promoted, which contains information about the organization and the services provided. The site can also become a tool to attract customers who need truck cranes, tow trucks and other equipment aimed at individuals. Orders are transferred to private owners of special equipment and a commission is taken.

Income and expenses

At startup

Income

Let's calculate the monthly profitability for each transport unit, based on the load at 80% of the time:

Thus, 10 pieces of equipment per season will "bring" about 2 million rubles a month. However, it is necessary to take into account seasonal drops in demand up to 40% from October to February. They can be minimized only by establishing cooperation with large construction companies, which, as a rule, build all year round.

Profitability fluctuates between 30-50%, depending on the season.

In addition, it is assumed that at least 300-400 thousand rubles can generate income from the commission on attracting outside performers.

An additional effect of working in the status of a dispatch center is that it provides statistics on demand, which in the future will become the basis for a decision in favor of purchasing one or another type of transport to expand the fleet. The profitability of using your own equipment is at least twice as high as attracting a third-party entrepreneur.

The budget of 2.4 million rubles is planned to be divided as follows:

• 50% - creation of a reserve fund for urgent business needs and expansion of the vehicle fleet.
• 30% - tax payments and commissions for cashing LLC funds.
• 20% - return on investment in the form of dividends to the founders.

In this scenario, the payback of the business will be about 3-4 years. We take into account that the reserve funds will be used to purchase new equipment, which will annually increase the profitability of the business.

Risks

Businesses have a lot of risks, and they should be taken into account in advance:

1. Changes in the economic situation in the state and a slowdown in construction, a drop in the need for special equipment (medium). Since this risk is unpredictable, it is almost impossible to foresee any measures in this direction in advance.
2. Emergence of strong competitors (low). Due to high investments, the probability of the appearance of large competitors is close to zero (but there is). The risk is neutralized by the high quality of the service and maintaining the status of a reliable partner.
3. Breakdowns and simple appliances (medium). This risk is also difficult to predict. As measures to minimize it, only new equipment of Russian and Belarusian production is purchased, the repair of which is inexpensive. The park is planned to be gradually updated to minimize maintenance downtime. In addition, the purchase of domestic equipment is much less risky in terms of currency fluctuations.
4. Problems with personnel (medium). In some regions, it is not easy to find good employees for work. It is planned to establish strict requirements for hiring and to conduct a thorough control in the process.
5. Too optimistic planning (low). Planning is based on marketing research and direct contact with the leaders of construction companies. Accordingly, it can be expected that the planned indicators will be achieved already in the first season of operation.
6. Changes in legislation (high). The state is constantly tightening the requirements for organizations working in the construction industry. It is important to track them in order to avoid problems with Gostekhnadzor and other regulatory authorities.

prospects

Business prospects are seen in the constant expansion of the offer for the rental of special equipment and the capture of other areas of activity, except for construction: public utilities, road construction and much more.

Eventually

As shown by the business plan for renting special equipment with calculations, an example of which we proposed, this business can be classified as highly profitable. However, large initial investments (about 50 million for a rather modest offer of 10 pieces of equipment) will be an obstacle in the way of the vast majority of potential entrepreneurs.

In addition, a simple truth works in this business: it is not so important how many pieces of equipment you have, it is important how much you can provide work. Overly optimistic pre-launch planning or insufficient service delivery during the process can cause a business to fail. Moreover, it is much more difficult to sell used special equipment and recover the costs than a passenger car and even a truck. Remember this!

Calculations are current for 2019

MS Word Volume: 36 pages

Business plan

Reviews (72)

Reviews on the business plan for renting special equipment (72)

1 2 3 4 5

Vladimir


I plan to invest in the business a smaller amount than you indicated. But, in any case, your business plan is a solid model to work with. Thanks.


Vladimir, thank you for your feedback. What will be the scale of the rental of special equipment is up to you. We only offer a basis with approximate calculation options for the convenience of independent development. We wish you success in business.

Semyon


We have been in the business of selling equipment for a long time. Quite often we are asked a question about rent. But we don't have that direction. We decided to think, see what kind of thing it is and how profitable it is. With your business plan, everything fell into place. We will try to expand activities. Thanks to.


Simon, thanks for your response. Indeed, the rental of special equipment is a rather profitable direction. Moreover, you are engaged in sales, and the machines are available. Equipment, with a competent approach to rent, quickly pays off and begins to generate net income. We wish you successful change.

Alexey


Thanks for the business plan. He helped a lot, especially at the initial stage. It is difficult to overestimate such help when the head explodes from thoughts and it is not clear what to take on in the first place.


Alexey, thanks for the feedback. When there are too many ideas, you need to sit down, calm down and try to write everything down on paper. This will greatly free the brain and allow everything to be structured. A business plan is undoubtedly a great help when planning a business. We wish you successful organization of special equipment rental.

We offer you an example of a business plan for renting special equipment with ready-made calculations, which will certainly help you organize your own successful enterprise. The use of special automotive equipment occurs in many sectors of the national economy. This technique is most widely used in construction, repair, road, loading and unloading operations. This equipment can be rented to government organizations and individuals, thereby bringing a constant profit to the owner of the company.

A professional document includes: market segment research, marketing research, financial plan, risk insurance accounting, economic calculations. When purchasing equipment and machinery, the specifics of the industry should be taken into account. For example, when purchasing a front loader, you can rent it to those who intend to use it as a bulldozer, excavator, dumper. A compact truck crane also compares favorably, which has additional functions of rotation and maneuverability, it is profitable to rent and lease it due to its multifunctional properties.

Study the construction equipment rental services business plan, and then you will be able to identify potential customers. Construction organizations that do not have all the necessary pieces of equipment for construction, individuals conducting construction work, government organizations - all of the above associations and individuals can become your clients. Also, sometimes leasing companies that deal with special equipment arrange sales of equipment or give the right to use special equipment with a subsequent possible purchase. Such a move makes it possible to acquire new pieces of equipment for further business. This analytical document will help you prioritize your undertaking.

In stock 5 12

The construction equipment rental business is a highly profitable business with the right approach. The right approach is pre-compiled, high-quality. This type of business is not complicated, but here you need to analyze everything.

The construction sector is one of the most significant and financially profitable in the Russian economy. Until 2016, it stubbornly increased growth, after which the pace slowed down slightly. The sector dependent on it is construction equipment rental services: truck cranes, bulldozers, excavators, loaders.

Construction companies to reduce the cost of construction get rid of the fleet of special equipment. It is more profitable and easier for them to rent it. This sector of the economy has just begun to develop and competition is still low.

Key features of a construction equipment rental business plan

Construction equipment rental business needs to be planned

Rental of special equipment for construction companies is a replacement for maintaining your own fleet. Saving money, time and nerves are the main reasons to rent rather than buy.

Despite the seeming simplicity, construction equipment rental business needs to planning. It has its own characteristics, but the most important thing here is marketing research and preliminary negotiations with potential customers.

A thorough market research will allow you to understand whether there is a demand in your region for the rental of equipment, if so, for which one specifically and to what extent it is covered by the offer. This will help you find your niche - which will minimize competition and give you a high profit opportunity.

Description

Files

Stages planning construction equipment rental business are issues that require close attention.

In the construction and maintenance of urban infrastructure, construction and special equipment is the main production resource. But even large companies prefer to rent it, not to mention medium-sized firms, private builders and teams. Buying, maintaining, storing equipment and maintaining a staff of employees are costly processes.

It is much easier to rent the necessary equipment and pay for its use for a period.

The clients of this business are installation and construction organizations, housing and communal services, electric and thermal power companies, construction teams and individuals.

The choice of types of equipment that will be rented out depends on many factors, all these factors are reflected in the business plan.

1 - Summary

1.1. The essence of the project

1.2. Amount of investment to launch rental of construction equipment

1.3. Work results

2 - Concept

2.1. Project concept

2.2. Description/Properties/Characteristics

2.3. Goals for 5 years

3 - Market

3.1. Market size

3.2. Market Dynamics

4 - Staff

4.1. staffing

4.2. Processes

4.3. Wage

5 - Financial plan

5.1. Investment plan

5.2. Funding plan

5.3. Development sales plan rental of construction equipment

5.4. Spending plan

5.5. Tax payment plan

5.6. Reports

5.7. Investor income

6 - Analysis

6.1. Investment analysis

6.2. The financial analysis

6.3. Risks rental of construction equipment

7 - Conclusions

The construction equipment rental business plan is provided in MS Word format - it already has all the tables, graphs, diagrams and descriptions. You can use them "as is" because it's ready to use. Or you can adjust any section for yourself.

For example: if you need to change the name of the project or the region where the business is located, then this is easy to do in the "Project Concept" section.

Financial calculations are provided in MS Excel format - parameters are highlighted in the financial model - this means that you can change any parameter, and the model will automatically calculate everything: it will build all tables, graphs and charts.

For example: if you need to increase the sales plan, then it is enough to change the sales volume for a given product (service) - the model will recalculate everything automatically, and all tables and charts will be ready immediately: monthly sales plan, sales structure, sales dynamics - all this will be ready .

A feature of the financial model is that all formulas, parameters and variables are available for change, which means that any specialist who knows how to work in MS Excel can adjust the model for themselves.

Tariffs

Feedback from our clients

Feedback on the business plan for the production of paving slabs

The goal of planning was, on the one hand, to attract funding, and on the other hand, we also wanted to have a clear picture of how we would develop. In the end, I liked the plan. In the business plan of the paving slab production workshop, I liked the financial model, I liked that it was convenient to use, it was easy to adjust it for myself, there were no questions about it in the bank either. So far, a loan of 19 million has been received. rubles. Thanks! This result was obtained, including with your help. Good luck!

Maksimov K.O., Nizhny Novgorod,

Feedback on the business plan for the development of a sand quarry for the extraction of sand

To expand production, we needed to attract investors. More precisely, we had our own investor, but in order to work with him, we needed a business plan. Representatives of the site company provided us with invaluable assistance in compiling this document, as a result of which the investor was satisfied with the quality of the business plan. We received investments in the amount of 40 million rubles for the purchase of new equipment.

Egor Valerievich, Kostroma, General Director

Feedback on a business plan for a concrete plant

We were satisfied with the business plan of the concrete plant. All formulas are easy to use and very simple, all explanations are clear, and any changes can be made to the finished model. In fact, this is the first business plan that has proven to be user-friendly and clear to understand.

M. L. Ivanova, Financial Director, OJSC "World of Construction"

Feedback on a business plan for renting construction equipment

I am a builder by education, I work in a large construction company, I have gone from an engineer to a director. I made some initial capital, I wanted to open some kind of business, but I just couldn’t think of what to do. And then the son-in-law suggested opening a company for renting special equipment. I think: "Young, green.", It is necessary that everything be exactly.

Ordered in the company Plan Pro individual construction equipment rental business plan. Professionally done - a complete analysis of the business, a clear structure, a block of financial calculations, everything is laid out on the shelves. As a result, with a business plan, I didn’t even have to persuade investors for a long time. We have invested 30 million, of which a third is mine. We bought the equipment and the business is already functioning. I did not regret the money spent, especially since they fully paid off.

Shumakov I.K., Rostov region

Before creating a business plan, a starting point is prescribed: geographical location, climatic conditions, types of products / services, business scale, investment opportunities, and others. This article will discuss the general rental business plan construction equipment. The type of equipment will be determined in the process of detailed business planning.

Equipment is acquired in ownership, parking areas are rented.

The volume of services provided and revenue at the level of small or medium-sized enterprises.

Stages of a business plan

The main stages of the business plan are the calculation of the necessary investments, the determination of the break-even point and the payback period for investments.

But before that, a lot of work needs to be done.

Preparatory stages rental business plan construction machinery: market research to determine guaranteed sales volumes, study of business features, requirements of supervisory authorities, and so on.

Supply and Demand Research in a Construction Equipment Rental Business Plan

In the business that is considered in this project, the determining factor for success is to study the market and find your niche in it. It is very important to correctly determine the types of equipment purchased for the business.

Demand research - potential customers

The rental market for special equipment is quite large: from small developers to large construction corporations, housing and communal services enterprises: electric and thermal power plants, water utilities, enterprises serving other urban infrastructure.

The analysis is carried out across all distribution channels, for this you need to distribute potential customers by areas, technologies and needs.

For each distribution channel, determine:

• Availability of a vehicle fleet, types of special equipment in possession;
• Is your technique enough?
• Scarce, as well as the most in demand type of equipment.

Completely different from this direction, but no less promising can be a brick business. will help you understand how much profit you can expect and what to expect.

Studying the offer - competitors

In this subsection construction equipment rental business planning competitors are listed, their types of equipment, its quantity, price range for rent and additional services. The competition in this market is small, but there is. The disadvantages and advantages of each of the competitors are assessed.

The result of the entire section on market analysis will be the definition of a scarce type of construction equipment and the most in demand. As well as the availability of prospects for the local market and the establishment of its competitive advantage.

Necessary resources to start a business.

In this section investment project for the rental of construction equipment based on the analysis of the previous section, indicate the types of purchased equipment, its quantity. Based on the amount of equipment, the necessary dimensions and characteristics of parking areas or boxes, the number of personnel, the need for fuel and lubricants, types of insurance, etc. are determined.

Acquisition of equipment

All-purpose construction equipment in this business can prove to be a win-win, but there can be significant competition. Therefore, after researching the market, it is better to purchase even more specialized equipment. There will be no competitors and then the price is not limited to the market level.

For your customers, the quality and manufacturer of the equipment can be the deciding factor in ordering. Therefore, it is worth buying high-quality imported equipment of well-known brands, but, of course, it will be more expensive.

It is not necessary to purchase new equipment with a guarantee, it makes sense to look for already used ones. Then it will be possible to purchase more types, the range is one of the factors for ordering a rental from you.

Registration with the traffic police, Gostekhnadzor, insurance and precautions

Equipment that does not have to be registered with the traffic police is subject to mandatory registration with Gostekhnadzor. Registration is required for equipment with an engine capacity of more than 50 cm³, these are excavators, tractors, graders, hydraulic hammers, combines and others.

Registration is carried out at the place of residence where the owner of the special equipment is registered. For individual entrepreneurs, the size of the state duty is 2.5 times less than for legal ones.

Special equipment is insured under OSAGO. According to CASCO, you need to insure mainly against theft. Construction sites are often unguarded, and drivers can get away and leave the car.

It is necessary to take security measures for vehicles:

• Signaling;
• Change of locks on cars;
• Satellite tracking system.

Parking lot and office.

The site where the cars will stand must have:

• A place for repair and storage of tools;
• security;
• A place to stay for drivers and craftsmen.

The summary of this subsection of the business plan contains the result of a study of proposals for renting an office and suitable sites or boxes: availability, remoteness and cost.

Personnel

This business needs responsible workers, professionals. Especially if you are purchasing expensive and high-quality machines, hire only specialists with extensive experience. Equipment must be properly used and serviced in a timely manner, the life of its operation depends on it. Savings are inappropriate here, pay high wages to specialists. This is justified, avoid repairs.

Approximate composition of the staff:

• Supervisor
• Accountant
• Sales manager
• Dispatcher
• Driver-operators

Based on the staffing table business plan for a company planning to rent construction equipment, calculate the monthly payroll.

fuel and lubricants

This subsection indicates the consumption and prices of fuels and lubricants per unit of work selected on the basis of the analysis of equipment.

The amount of investment to start a business.

The amount of investment depends on the chosen construction equipment and its quantity. Therefore, we do not present the investment amount. But we can download construction equipment rental business plan with calculations. It will calculate the necessary indicators depending on the specified conditions of the project.

Let's designate the main investments that are planned at the start of the enterprise:

1. Preparatory work (registration of the enterprise) ХХХ r;
2. Acquisition of special equipment XXX r;
3. State duty to the traffic police or Gostekhnadzor, insurance premium XXX r;
4. Alarm, satellite tracking system XXX r;
5. Rent of the site and office XXX r;
6. Acquisition of equipment, tools for the repair of XXX r;
7. Marketing and advertising at the initial stage XXX p;
8. Working capital XXX r;

TOTAL:_________________

The volume of investments when starting this business is from xxx million rubles. This is the minimum level.

Income and expenses in the project

EXPENSES:

The cost of a business for renting special equipment is the sum of fixed and variable costs (fuels and lubricants, piecework wages for drivers and deductions for it).

FIXED COSTS:

• Rent for the site and office;
• Depreciation of equipment;
• Wages - salary and contributions to social funds;
• Insurance premium and state duty to Gostekhnadzor;
• Spare parts and repair costs;
• Connection;
• Other expenses.

VARIABLE COSTS per month are calculated based on the work plan, piecework wages, specific consumption of fuels and lubricants, prices for them.

INCOME:

Revenue consists of the market rental price by type of equipment and the planned volume of orders.

Return on investment - the result of a business plan for renting construction equipment

The business has perspectives– highly profitable and justifies large investments.

It is able to pay off in one and a half to two years if there is good demand. But it depends on many factors that must be considered in the business plan.

The business plan has a clear structure, contains detailed financial calculations, and the financial model allows you to flexibly change any business parameter. This is the best solution for those who plan to attract investments, want to get a loan or have a ready-made template for developing their business plan.

Download a ready-made construction equipment rental business plan with financial calculations and an Excel financial model

Development construction equipment rental business plan is required, as this is a business with considerable investments. And here you can not do withoutsearching for an investor, partner or obtaining a loan from a bank. If you do not have the opportunity to develop it or do not know where to start, we suggest that you get a sample of a ready-made business plan. The calculation model will give all investment indicators for the plan. In addition, it is possible to download a ready-made business plan by clicking on the link below.

The construction industry is developing despite the crisis. Therefore, the business of providing rental services for special equipment has every chance of becoming highly profitable. To attract optimal investments, be sure to draw up a business plan. If you have financing for the purchase of high-quality equipment, and you know this industry, you can safely start organizing this business.

Have you thought about creating a business from scratch for renting special equipment? The idea is worthy of attention, but first it is necessary to study the specifics and evaluate the local rental market.
We offer you to read the story of a business owner, this material will answer complex questions in simple terms - opening, organizing business processes, as well as the emerging problems and intricacies of running a rental business in Russia.

About the specifics of the business

Many beginners find that renting special equipment is easy and profitable. Full of enthusiasm, they buy equipment on credit at crazy interest rates and think that now the money will flow to them like a river. However, not everything is so simple and unambiguous here. The strategies that worked for almost everyone a few years ago no longer bring the same profit today, and tactics in a millionaire and a small town will differ markedly from each other.

In the four years of running this business, I have faced all sorts of difficulties that I could not have imagined at the stage of buying my first loader. Difficulties that were dictated by the market itself, its constantly changing conditions.

Start. How I got started in business

I started my business of leasing special equipment in Ufa in 2011, when there was a catastrophic shortage of construction equipment in the rapidly growing city. At that time, my acquaintances were already engaged in this type of business, so I looked at their activities with interest and also thought about doing something similar. My brother and I started at the moment when we had a real chance to provide special equipment for one of the construction sites. Then we bought a backhoe loader, and while it was sinking into the bowels of construction sites, we plunged more and more into this new type of business for us.

Understanding the rules of the game

Over several years of communication with other entrepreneurs, I noticed that when starting in this business segment, many newcomers do not really understand either its specifics or how exactly they will build relationships with the customer. However, if you want to succeed in the construction industry, you will have to learn how to assess the prospects of the market, understand all its subtleties and adapt to the customer. Be prepared for the fact that you will have to deal not only with gardeners who need a small trench in the country, but also with seasoned managers of construction companies who have been working on the same scheme for decades.

My first backhoe loader or what to choose?

Purchase of special equipment. Before starting a business, you will have to spend a lot on acquiring a brand new skid steer loader, light truck, or a 15-year-old mining excavator. However, the choice of special equipment today is so great that a natural choice problem arises. I recommend starting with a small, versatile piece of equipment that is suitable for several construction and transport tasks. For example, it can be a backhoe loader.

Why did I buy a backhoe loader?

Multifunctionality. In simple terms, a backhoe loader is a tractor with a front loading bucket with a volume of 0.5-1.1 cubic meters and a backhoe with a volume of 0.1-0.5 cubic meters. A big plus of this type of equipment is its versatility, since the backhoe loader can transport materials, load / unload, and dig holes or trenches. If it is equipped with attachments, for example, a snow blower, a hydraulic hammer, a hole drill or a log grab, then this technique becomes simply indispensable for performing a wide variety of tasks.

Compactness and maneuverability. Due to its compact size, the backhoe loader can turn around and go where large equipment is simply not able to work. A miniature wheeled assistant is able to literally "fly" at a speed of 35-40 km / h, while its large-sized counterparts will crawl for hours to the place of work. For example, a heavy dragline excavator can move only 100 meters in one hour, and its transportation over long distances requires a complete disassembly of the structure. At the same time, compact equipment is able to cope with many tasks of a large excavator or front loader. So, the JCB 3CX model I purchased is capable of digging to a depth of 4.5 meters and even up to 5.5 meters with a telescopic handle.

The backhoe loader is the most popular earthmoving machine in the construction equipment rental business.

Application area. The backhoe loader will be ideal for solving those tasks that are difficult to carry out with regular special equipment. Typically, such work is carried out during the construction of small or medium-sized buildings, as well as the construction of cottages or garden structures.

Profit. Currently, in the Ufa rental market, the average cost of an hour of operation of a foreign-made backhoe loader is 1,300 rubles. If we take into account that in winter it is rented for at least 4 hours, then when ordering for 8 hours, a good daily profit is already obtained.

After evaluating all the pros and cons of buying this type of special equipment, in the end I purchased a JCB 3CX backhoe loader.

Four years later

What was my attitude towards this business? Over the four years of my career in the rental of special equipment, a lot has changed noticeably, as well as my vision of the possibilities of this business. If a few years ago, to the question of whether it is worth making money on renting out special equipment, I would have answered with inspiration: “Yes! Definitely!”, but now my attitude to this has changed significantly.

For several years of work, we have grown significantly and managed to acquire several machines. However, we did not manage to avoid both small and large mistakes, and in this type of business there have been changes that are far from being for the better for entrepreneurs.

Who puts spokes in the wheels?

Just 3-4 years ago, we had a natural “Klondike” in Ufa in terms of orders for the rental of special equipment. City
With a population of more than 1 million people, it grew so rapidly that there was simply a catastrophic shortage of cars at the construction site. It was at this time that many individual entrepreneurs began to buy special equipment and rent it out. My own phone was ringing, so there were 8-10 orders per day for my three backhoe loaders. It is clear that in such relaxed conditions we could afford to place a minimum order of 8 hours at a very good price and did not even think about any bargaining.

"Come here!"

Gradually, the most enterprising guys quickly realized that you can earn good money by renting out special equipment. This was also facilitated by the flourishing of the leasing market. If five years ago the number of companies providing special equipment for leasing was very modest, and the terms of the transaction themselves in the form of a high down payment and gigantic interest rates were not particularly attractive, now everything has changed. A huge number of offers on the leasing market with a low down payment, reduced requirements and preferential rates have led to wholesale buying of equipment.

Interestingly, not only entrepreneurs who had enough ideas about business, but also those who had no idea about it, bought special equipment. Young guys full of ambitions and old people inspired by the idea bought cars without really understanding how exactly they would make money on them. 70% of new owners of special equipment could not explain what an LLC, individual entrepreneur, cashless payment is, how to advertise or make a website, so they tried to get orders the way it was done before. That is, they simply went to a kind of "patch of special equipment" in the center of Ufa and limited themselves to placing ads in a large local newspaper. The result of such actions was quite natural. Nobody got orders. The owners of their own customer bases did not know worries for some time, however, they were soon covered by a wave of merciless dumping.

cruel dumping

In order to somehow recoup the huge costs of the purchased equipment, the newly-minted businessmen began to reduce the hourly rate, first by 5%, then by 10, 15 and even 25%. At the same time, there was a sharp reduction in the minimum order from 8 hours to 4 hours in the warm period and even to 3 hours in the winter.

Our customers quickly felt that they could no longer pay the previous amounts and after a while they began to resent the high prices and the excessive minimum order. Whatever one may say, the presence of “Uncle Vasya”, who will take only a four-hour order, and even make it much cheaper, has led
to reduce the minimum wage for “experienced sailors”. Although we continued to work at the old prices and often received good orders, our order flow decreased significantly. That is, in just a year and a half, such a promising market collapsed both in terms of prices and the minimum order. From my colleagues, I learned that in other million-plus cities, exactly the same situation was observed.

We are not the only ones growing

Gradually, we acquired new customers, acquired more equipment, but our regular customers also developed along with us. If before that we served small companies, then over time, many of them have grown to the point that they were able to purchase their own special equipment. At the same time, we lost some of our customers completely, and some began to order machines from us only when their own equipment could not cope with a large amount of work. The number of orders from cottage settlements has also decreased, since now each of them has its own equipment.

Technology is getting old

When I got my first brand new backhoe loader, it worked well and made a good profit. However, after 3-5 years, I and other owners of special equipment encountered in practice the effect of its aging. The machines began to literally crumble, increasingly requiring investments for their restoration. Since the repair of some equipment can cost no less than half a million rubles, it is better to sell such unprofitable mechanisms.

Is it worth it to engage in this segment of the business today?

Conditions for starting a business

After all of the above, a reasonable question arises under what conditions it is worth doing this type of business.

In my opinion, these conditions should be:

1. You have the opportunity to buy special equipment without a loan, leasing or the need to spend the last “honestly acquired”. In this case, you can easily endure a long absence of orders.
2. You will be able to serve a very specific object, where your services will be needed for at least two years. This will allow you to at least recoup your costs.
3. You yourself are a construction company that can provide itself with sufficient volumes of work.

What not to do

Definitely, you should not take special equipment on credit at huge interest rates, without having any guaranteed orders. This strategy worked 3-5 years ago when there was little competition, but today it is a direct way to lose money and get into debt.

You should not start a business without having the slightest idea about its specifics and the situation in a particular city. If in a small town the owner of several units of backhoe loaders or other equipment can feel like the master of the situation and serve the entire city, then in cities with a population of about a million people or more today there is very tough competition. And this must be taken into account at the stage of business planning.

In a word, today the conditions for entering the business of renting special equipment are not as simple as before. Therefore, it is worth weighing everything carefully and thinking it over again. As they say, think for yourself, decide for yourself.

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