Need Advice on Business Idea

[kerala]

Hi all, I would like some advice on renting out/ hiring out power tools such as pressure washers and carpet cleaners along with ladders, wallpaper strippers, cement mixers etc. I think my customers might be someone who is a new home owner and does not have these tools in their garage. I am aiming to advertise these services on gumtree and facebook first where these customers might be looking for a cheap one, this is where they will find that a very good/powerful/superior model can be hired out.

1) Do you think this is a good business idea
2) Other than the PLI and registering as a sole trader, Is there anything that I need to be doing on the legal side
3) Any mistakes to avoid / any red flags with this sort of business.

Regards
Kerala

 

[alan1302]

1 - it must be a good idea as there are already successful companies that hire power tools etc - your question should be why would someone use you rather than using them? Will you be cheaper? if so why? Will you be able to supply different/better tools? How?

 

[MOIC]

Red flags. . . .

Can you afford to buy all the tools to make it viable?

Do you have funds for marketing other than gumtree & Facebook to get the business off the ground and become viable?

Do you understand the service requirements needed for power tools after each hire?

Have you checked to see if you can get insurance?

What will be the costs involved in delivering/returning the products?

What happens if a tool gets damaged?

What will you do if an expensive tool is not returned?

There’s a very long list. . . . .

 

[WaveJumper]

All of the above and the ability to hold deposits via your card payment supplier. For H&S you will need to make sure sure your covered on paper work etc

 

[Mark T Jones]

It's a mature market - which saves you the trouble of having to explain it to people.

But, as others have said, you need to differentiate yourself from others who are already doing it (preferably not on price)

Things you need to cover are

Stock levels - enough to meet mainstream demand, without stuff ring left on the shelf

Payments/deposits

Contracts.

Collection and delivery (potentially a differentiator)

Maintenance (particularly breakdowns while on hire)

Insurance, security etc

 

[MBE2017]

Biggest red flag from the original post, is the OP thinking homeowners are going to be his main customers. OP, you need to research if they will be, and if they would choose you over a well established tool hire company.

Personally I think trade users are your market, but the costs to service such clients will be higher at the beginning, and I get a feeling you do not have enough atm.

Most home owners for many items would buy, wallpaper strippers from £25/50 new, from £5 secondhand, pressure washers from £50 new, secondhand £10/20 etc. I suggest you reconsider your target market.

 

[Mitch3473]

I once bought a 10 KVA generator off Ebay and once I'd explained my purchase to detective Geraint Jones of the Sth Wales constabulary all was well. I had bought it in good faith, It still had the hirers details etched on the crankcase.....It was nicked. So, If you dont have yourself completely covered twice over, every scallyway and ne'er do well within a 5 mile radius will be 'hiring ' off you.

 

[OhSimon]

There's an app called Fat Llamma where you can rent almost anything. There are quite a few people who have a large inventory of specilialist equipment whether it be DIY tools, or film production stuff etc.

You could very quickly list stuff on there for free (even if you have no goods) and you'd could see straight away the type of demand there is from individuals. Obviously theres other market research you can do in addition but this would be rapid and no cost.

 

[Lucan Unlordly]

You mentioned ladders and home owners and I had a sharp intake of breath!

I bought a £400 near new Podium Tower (standing heigh 1m) off of Ebay for an unbelievably cheap £75 delivered, which came from an existing hire company. The driver told me they were just getting shot as Health & Safety requirements meant having them X-rayed every year to comply with insurance. For on site use, suitable training also had to be made available.

H&S may be your Achilles heel if dealing with the general public?

 

[kerala]

Thank you all for your input. I will not be continuing with this venture anymore due to the health and safety concerns making it unviable.