How to Start an Equipment Rental Business ($384K a Year)

There is a BIG OPPORTUNITY to start an equipment rental business. Due to the increase of interest rates, contractors cannot afford to continue to buy large equipment they don't use very often.

What are the expenses of running a construction equipment rental business with $1M of construction Equipment:
4 - $150K Excavators
4 - $100K Skidsteers
20% down - $200,000
Monthly loan at: $11,020
Insurance: $1,000 a month
Lease: $1,500 a month

How much can you make:
$600 a day for Excavator
$400 a day for skid steer
Average rent time - 4 days
4 days every other week, = 8 days a month
All Equipment Rented = $4,000
$4,000 * 8 = $32,000 a month = $384,000 a year

CASHFLOW:
$32,000 a month
$13,500 in expenses
CASH FLOW = $18,500
$222,000 profit.
$50,000 in maintenance
$172,000 gross profit.

You only put down $200K almost get your entire investment back year 1.
Someone else paid your loan like real estate.

Think of ways it won’t work
No rentals - You made a sales mistake. You made a marketing mistake. You failed to get your business name out there.
Your equipment gets destroyed or stolen. Make sure you have a contract and make sure they have insurance or charge them for an insurance cover.
People fail to pay you. Are you collecting money up front? Are you screening your rentals?
Unforeseen equipment expenses - people being hard on equipment.

Legal Up
LLC
Insurance
Client Contract.

#excavator #construction #contractor #heavyequipment #businessideas #entrepreneur #entrepreneurship