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Guide To Starting A Profitable Equipment Rental Company In 2021

Sept. 18, 2021

The equipment rental industry has outgrown the overall construction industry over the past few decades. Learn how you can start your own equipment rental company.

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Equipment Rental Industry Overview

Owning and operating an equipment rental business can be very rewarding and profitable. Many equipment rental business owners started out with one used machine, and gradually built up their businesses through hard work, great customer service and maintaining a fresh and healthy equipment fleet.

Starting an equipment rental company is not as expensive or encumbering as you would think. With some careful planning, initial capital, and passion for the industry, you can start your own equipment rental company in a few weeks.

The equipment rental industry has grown at about 5% per year over the past few decades. The outlook for the industry is very positive, with many industry experts forecasting 4-5% annual growth over the coming years. The long-term shift by contractors to rent more equipment is causing the equipment rental industry to outgrow the overall construction industry.

Equipment Rental Industry Market Share

The equipment rental industry is very fragmented - this means that the vast majority of industry sales are generated by small and medium-sized rental companies. According to the American Rental Association (ARA), the top 10 equipment rental companies have about 35% market share, and the top 3 companies have about 25% market share.

The largest North American equipment rental companies include United Rentals , Sunbelt Rentals , Herc Rentals , Home Depot Rentals , and Ahern Rentals . The total annual industry sales are over $50 billion, and the long-term growth rate is about 5% per year.

Equipment Rental Market Share Pie Chart Source United Rentals

Source: United Rentals and Equipment Radar Takeaway: The top three industry players have a 25% combined market share. This means the industry is very fragmented and comprised mostly of small and medium-size companies.

Combined US Equipment Rental Industry Market Size

Source: United Rentals , American Rental Association (ARA) , Rental Equipment Register (RER) , and US Census Bureau Takeaway: The US Equipment Rental industry size is over $50 billion, with a growth rate of about 5% each year.

US Equipment Rental Industry Growth

Source: United Rentals, ARA, RER, and US Census Bureau Takeaway: The US Equipment Rental industry has outgrown overall construction spending since 1997.

Equipment Rental Covers More Than Just Construction Machinery

Many equipment rental companies augment their equipment fleets to include general tools, HVAC, power generation, and event (party, wedding, concerts, etc) equipment.

The ARA segments the rental industry into three primary categories:

  • Construction and Industrial Equipment: This category primarily serves construction firms and contractors. Equipment typically includes earthmoving equipment such as excavators, loaders, backhoes and compaction machinery, light towers, aerial work platforms. This segment can also include road infrastructure, energy projects, commercial buildings, malls, demolition and more.
  • DIY General Tool Equipment: This category includes equipment typically rented by professional contractors and do-it-yourself (DIY) homeowners. Equipment includes small and light construction equipment such as power tools, air compressors, aerators, lawn tractors, compact tractors, skid-steer loaders and small excavators, etc.
  • Party/Wedding/Event Equipment: This category includes equipment rented by consumers, homeowners and businesses for parties and events. Items can include tents, tables, chairs, lights, dance floors, decorations, linens, plates and glassware, portable restrooms, concession equipment, inflatables (moonwalks), and other furniture. Projects can range from large corporate events to small family gatherings.

When you start your rental company, you can choose to serve one or more categories. Many established rental companies offer an all-in-one stop rental offering. You should research your local market demand for each category to understand which suits your local market best.

Aerial lifts and earthmoving equipment tend to be popular categories for equipment rental companies. When you choose your categories, you should study the local rental rates, seasonality (demand fluctuates through the year based on weather and construction patterns) and competition.

Herc Rentals Equipment Fleet Mix

Herc Rentals Equipment Fleet Composition Mix

Source: Herc Rentals Takeaway: Large rental companies such as Herc Rentals have diverse fleets. Both United Rentals and Herc Rentals have placed increased focus on expanding into the specialty rentals category over the past few years.

Equipment Rental Customers

The equipment and event rental industry offers customers the opportunity to gain the benefit of using goods (from excavators and aerial lifts to party tents) for a defined time. Customers are attracted to rentals instead of purchasing equipment for multiple reasons, including:

  • Control expenses and inventory
  • Wide selection of equipment
  • Professional customer care / service
  • No need for maintenance or downtime
  • Save on storage / warehousing
  • Reliability
  • Equipment tracking
  • Conserve capital
  • Manage risk

Customers can range from professional contractors who need aerial lifts for several months to an average homeowner who needs a stump grinder for a weekend project.

Steps to Starting Your Equipment Rental Business

1. business plan.

Every great business out there today started with a simple idea. To transform that idea from something imaginary into something real, you should make a business plan that outlines your strategy and thoughts. Writing a business plan is one of the best ways to force yourself to think about your business from many angles. It also is a helpful document to share with potential investors and lenders.

When you create your business plan, it is important to keep your expectations realistic. Setting goals and metrics too high at the beginning can lead to wasted time and money down the road. Remember that there are always unforeseen costs and challenges with any new venture, so it is prudent to bake in padding and leeway.

A typical business plan includes the following sections:

  • Summary: Wait to write this at the end. This is the 30,000-foot view of your entire business plan summarized in a few paragraphs. This helps others understand the business plan without reading the entire document.
  • Company Description: Write about what your company will do, who it will involve (you and any others), where it will be located, what kind of equipment you will buy for your fleet, what hours you plan on working, etc.
  • Market Analysis: Understand the rental industry in your area. Get to know the rental rates in your area. Talk with people in the industry to understand who your main customers would include.
  • Competitive Analysis: List out the competition, what they do, how big they are, and how you plan to offer a better value proposition.
  • Product/Service Offering: Determine which types of equipment you will offer for rent. Also, make a road map of where you plan on expanding as your business grows. Will you offer parts and service too?
  • Marketing Plan: Figure out how you will tell the world about your new company. Create social media pages and advertise in local publications. Make sure you add your business to online directories such as Google Maps and the Equipment Radar Directory so people can find it.
  • Financial Plan: Spend a lot of time thinking about the capital resources you have to deploy and how you plan on deploying them. Most equipment rental companies borrow money from banks to make new and used machinery purchases. Figure out which lenders you can work with to buy your machinery.

2. Form Your Company

You should create a legal entity such as a corporation or LLC to separate your business interests from your personal interests. You must register your business with your state, pay a registration fee, and also register with the IRS . Once you have formed your company, you should open a bank account and deposit initial capital into it.

3. Purchase New or Used Equipment For Fleet

Many newly-formed rental companies start with just one used machine, and later they upgrade and expand their fleets over time. You can shop online for new and used equipment to buy your first equipment.

4. Create Safety & Risk Management Plans

Buy proper insurance to cover your business from accidents and injuries. Talk with your business insurer, so you understand what is covered and what is not covered.

Create safety guidelines for your shop, and teach employees how to handle the equipment safely. Make sure any dangerous areas in your storage or warehouse are safeguarded.

5. Organize Business Operations

Choose a store location. You will need enough space to store your equipment, an office area for you and other workers to work, a service area, a check-in/out counter to handle customers, and a showroom for equipment, accessories and more.

A nice-looking showroom can be a strong selling point for your business. It gives your customers an opportunity to look around and see what you have to offer. You should think of your showroom as your marketing platform.

6. Make Maintenance & Fleet Refresh Plan

You should pay close attention to the condition of your fleet. Inspect it after every rental, and perform both scheduled and unscheduled maintenance as needed. The top-performing rental companies typically have a systematized process to inspect, clean and renew equipment after it is returned from a job site.

As your equipment begins to age, you should consider selling your older equipment and buying newer equipment to keep your overall rental fleet relatively new. Large rental companies typically target an average fleet age of about 50 months (4 years old), which means that they sell equipment when it gets to be about 7-8 years old. Customers often prefer newer equipment that looks good.

Financial Planning

Rental rates.

Rental rates are often determined by local supply and demand for rental equipment in your area. Rates go up and down based on time of year, type of equipment and equipment condition.

Rental rate changes are very important to monitor. Each $1 change in rental rate is a $1 increase or decrease to the bottom line. When your rental rate changes, your other costs do not change much.

Typically most companies will provide daily, weekly and monthly rental rates. As the rental term extends, the average daily rate tends to go lower. Weekly and monthly rentals can often be more profitable for equipment rental companies even if their average daily rental rates are lower because there are not as many inefficiencies associated with them (transportation to and from the location, downtime for inspection and servicing, etc).

Utilization

Utilization is an important metric that you should watch carefully. Higher utilization typically means higher profitability. The equipment rental business is largely a fixed-cost business - your equipment, building lease, employee costs all stay about the same whether you have your equipment out on rent or not.

Utilization is a two-edged sword. If your utilization is too high and you do not have any equipment available for rent, then customers may be forced to go with a competitor. It's best to increase your fleet size if utilization goes too high, and reduce your fleet size if your utilization goes too low.

Seasonality

Construction tends to be very seasonal, depending on your geographic location. You should research the swings in seasonality to understand business trends during the busy summertime and slower wintertime.

Cyclicality

Equipment rental is susceptible to economic cycles. When the broader economy slows and construction pulls back, the demand for rental equipment also slows. Typically rental rates will soften or fall during a downturn.

Rental Industry Terms & Metrics

The industry uses several common terms to measure equipment fleets and financial performance. Below is a list created by the ARA to help you get acquainted with industry standards:

Original Equipment Cost (OEC)

Time (physical) utilization (tu), financial utilization ($u), fleet age (age), change in rental rate %rr.

Keeping a fresh fleet that is well-maintained and serviced is very important to managing customer relations and expectations. Typically rental companies will target an average age for the entire fleet. By regularly buying newer equipment and selling older equipment, the rental company can maintain a constant fleet age.

Below is a sample overview of United Rental's fleet statistics from its 2020 annual report :

Starting your own equipment rental company is within the realm of possibilities. Spend time researching your local market and creating a business plan, and soon enough, you will be ready to launch your new venture.

Find Similar Articles By Topic

#construction #material handling #United Rentals #Herc Rentals #Sunbelt Rentals #checklists

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Equipment Rental Business

Back to All Business Ideas

How to Start an Equipment Rental Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on April 13, 2022 Updated on February 14, 2024

How to Start an Equipment Rental Business

Investment range

$8,550 - $18,100

Revenue potential

$62,000 - $156,000 p.a.

Time to build

1 – 3 months

Profit potential

$50,000 - $125,000 p.a.

Industry trend

If you’re looking to start a business from home and make good money, an equipment rental business may be just the ticket. It’s a large and growing industry, expected to rebound more than 60% from a huge dip in 2020. Equipment rental offers all kinds of opportunities – from party equipment to large tool rental and heavy construction equipment. You’ll need to make an investment to get started, but you should start seeing a return relatively quickly. 

Before you start shopping for your items of choice, you’ll need to learn more about the business side of things. Luckily, this step-by-step guide details the entire process of developing and launching a successful equipment rental business. 

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting an equipment rental business has pros and cons to consider before deciding if it’s right for you. 

  • Good Money – Depending on the equipment, you can make hundreds a day
  • Flexible – Run your business from home on your hours
  • Minimal Labor – Pickups and drop-offs only
  • Big Competition – Compete with companies like Home Depot
  • Up Front Investment – Spend some money get started

Equipment rental industry trends

Industry size and growth.

  • Industry size and past growth – The global equipment rental business was worth $53.2 billion in 2020, after more than a 60% decline from 2019 numbers.(( https://www.statista.com/topics/8063/equipment-rental-market-in-the-united-states/?#dossierKeyfigures )) 
  • Growth forecast – The global equipment rental business is projected to grow more than 60% by 2023 to regain its 2019 total of more than $87 billion. 
  • Number of businesses – In 2021, 10,873 tool and equipment rental businesses were operating in the US.(( https://www.ibisworld.com/united-states/market-research-reports/tool-equipment-rental-industry/ )) 
  • Number of people employed – In 2021, the US tool and equipment rental business employed 27,798 people. 

equipment rental industry size and growth

Trends and challenges

Trends in the equipment rental industry include:

  • More and more construction companies and builders are opting to rent large equipment rather than buy, which is good news for the equipment rental industry.
  • The new infrastructure bill, which is driving the construction industry, is also expected to increase the equipment rental industry.
  • DIY projects are trending, with homeowners attempting to do remodeling and repairs on their own, and these people tend to rent rather than buy tools and equipment.

Challenges in the equipment rental industry include:

  • Evolving technology makes it necessary for equipment rental companies to periodically upgrade their equipment.
  • New technologies are being used to track equipment, which is solving a consistent problem in the equipment rental business but is an added expense for rental companies to assume. 

equipment rental industry Trends and Challenges

How much does it cost to start an equipment rental business?

Startup costs for an equipment rental business range from $8,500 to $18,000, although the costs vary widely depending on the type of equipment. These calculations assume that you will start out with large tools such as chainsaws, tile saws, drills, power washers, and so on. Costs also include the down payment on a truck or van to transport your equipment. 

Be sure to have an equipment rental agreement in place that customers must sign, and it should include a liability waiver in case someone is injured by the equipment. Also, make sure that your equipment is properly insured. 

How much can you earn from an equipment rental business?

Daily rental rates for most smaller tools average about $40. Your profit margin should be about 80%. 

In your first year or two, you might have 10 pieces of equipment and rent six of them five days per week, bringing in more than $62,000 in annual revenue. This would mean $50,000 in profit, assuming that 80% margin. As your business gains traction, you could add 10 more pieces of equipment and rent 15 of them five days a week. With annual revenue of $156,000, you’d make a healthy profit of $125,000.

equipment rental business earnings forecast

What barriers to entry are there?

There are a few barriers to entry for an equipment rental business. Your biggest challenges will be:

  • The startup costs to purchase equipment
  • The space to store your equipment

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Step 2: hone your idea.

Now that you know what’s involved in starting an equipment rental business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research equipment rental businesses in your area to examine their products, price points, and what rents best. You’re looking for a market gap to fill. For instance, maybe the local market is missing a business that rents wet tile saws, or party supplies and party equipment like bouncy houses and karaoke machines.  

machine rental business plan

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as construction equipment or larger tools for the do-it-yourself-er.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

You’ll just need to determine what equipment you want to rent. You should specialize in a certain type of equipment so that you can focus on a certain target market. You might want to call construction or remodeling companies to see what they are most likely to rent. 

How much should you charge for equipment rental?

Prices will vary based on the type of equipment that you rent. Check local market prices to make sure you’re competitive. You should aim for a profit margin of about 80%. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will either be construction-related companies or homeowners. You should spread out your marketing to include TikTok, Instagram, Facebook, and LinkedIn. 

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out a storage space for your equipment. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

  • Central location accessible via public transport
  • Ventilated and spacious, with good natural light
  • Flexible lease that can be extended as your business grows
  • Ready-to-use space with no major renovations or repairs needed

equipment rental business idea rating

Step 3: Brainstorm a Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

  • Short, unique, and catchy names tend to stand out
  • Names that are easy to say and spell tend to do better 
  • Name should be relevant to your product or service offerings
  • Ask around — family, friends, colleagues, social media — for suggestions
  • Including keywords, such as “equipment rental” or “tool rental”, boosts SEO
  • Name should allow for expansion, for ex: “Premier Rental Solutions” over “Power Tools Rental Solutions”
  • Avoid location-based names that might hinder future expansion
  • Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

  • Executive Summary: Summarize your equipment rental business’s goal to provide a wide range of quality, well-maintained equipment for short-term or long-term rental to various industries.
  • Business Overview: Describe your business’s focus on renting out equipment such as construction machinery, event gear, or audio-visual technology to meet diverse client needs.
  • Product and Services: Detail the types of equipment available for rent, including categories like heavy machinery, landscaping tools, party supplies, or audio-visual equipment.
  • Market Analysis: Assess the demand for rental equipment, considering target markets like construction companies, event planners, or DIY homeowners.
  • Competitive Analysis: Compare your rental offerings to other equipment rental businesses, focusing on your strengths like equipment variety, maintenance quality, or flexible rental terms.
  • Sales and Marketing: Outline your strategy for attracting customers, including digital marketing, building relationships with industry professionals, or offering competitive pricing.
  • Management Team: Highlight the experience and qualifications of your team, especially in areas like equipment maintenance, customer service, and business management.
  • Operations Plan: Describe the process of equipment rental, from inventory management and maintenance to customer service and delivery logistics.
  • Financial Plan: Provide an overview of financial aspects, covering startup costs, pricing strategy, and expected revenue.
  • Appendix: Include supplementary documents such as equipment catalogs, maintenance records, or market research data to support your business plan.

what to include in a business plan

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to equipment rental. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your equipment rental business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

  • Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
  • General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
  • Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
  • C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
  • S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

types of business structures

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2023

machine rental business plan

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

machine rental business plan

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

  • Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
  • SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
  • Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
  • Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
  • Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
  • Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding an equipment rental business. You might also try crowdfunding if you have an innovative concept. 

types of business financing

Step 8: Apply for Licenses/Permits

Starting an equipment rental business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your equipment rental business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

  • General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
  • Business Property: Provides coverage for your equipment and supplies.
  • Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
  • Worker’s compensation: Provides compensation to employees injured on the job.
  • Property: Covers your physical space, whether it is a cart, storefront, or office.
  • Commercial auto: Protection for your company-owned vehicle.
  • Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
  • Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

types of business insurance

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as Rental 360 , EZ Rent Out , or Point of Rental , to manage your inventory, schedule, invoices, and payments. 

  • Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
  • If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.

Here are some powerful marketing strategies for your future business:

  • Strategic Partnerships: Forge partnerships with construction companies, event planners, or other businesses that frequently require equipment, offering them exclusive deals or discounts for consistent rental agreements.
  • Social Media Campaigns: Leverage platforms like Instagram and LinkedIn to showcase your equipment in action, share success stories, and engage with your audience by running targeted ads to reach potential customers in your local area.
  • Referral Programs: Implement a referral program that rewards existing customers who refer new clients, encouraging word-of-mouth marketing and building a strong network of satisfied clients.
  • Local SEO Optimization: Optimize your online presence for local search by ensuring your business information is accurate and consistent across online directories, making it easier for potential customers in your area to find you.
  • Specialized Equipment Packages: Create bundled packages for specific industries or events, offering a convenient and cost-effective solution for customers who may need a variety of equipment for a particular project or occasion.
  • Community Involvement: Sponsor local events, join community groups, and participate in relevant industry associations to raise awareness about your business and build trust within your community.
  • Online Reviews and Testimonials: Encourage satisfied customers to leave positive reviews on online platforms like Google, Yelp, or industry-specific websites, boosting your credibility and influencing potential clients.
  • Seasonal Promotions: Introduce seasonal promotions or discounts during peak periods when demand for certain types of equipment is higher, attracting more customers during specific times of the year.
  • Educational Content: Create informative content, such as blog posts, videos, or webinars, that educates your audience on how to use different types of equipment safely and effectively, positioning your business as an industry authority.
  • Customer Loyalty Programs: Implement a loyalty program that rewards repeat customers with discounts, exclusive offers, or priority access to new equipment, fostering long-term relationships and customer retention.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your equipment rental business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your equipment rental business could be: 

  • Rent top-of-the-line tools for your DIY projects
  • Why buy when you can rent everything you need for your party?
  • Heavy construction equipment at great rates 

unique selling proposition

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running an equipment rental business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in equipment rental for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in equipment rental. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for an equipment rental business include:

  • Drivers – equipment drop-offs and pickups
  • General Manager – scheduling, inventory management, accounting
  • Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Start Making Money!

An equipment rental business is a great opportunity to start a company that can grow. You can run your business from home and make an excellent living. Start with small stuff, work your way up to larger items and someday your business could rival United Rentals, the largest equipment rental company in the world! 

Now that you understand the business of equipment rental, it’s time to head to the hardware store and start shopping so you can start your successful entrepreneurial journey.

  • Equipment Rental Business FAQs

Yes, you can make good money from equipment rentals since your ongoing expenses will be low. The key is to purchase the equipment that people will be most likely to rent.

Prices will vary based on the type of equipment you rent. Check local market prices to make sure that you’re competitive. You should aim for a profit margin of about 80%. Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points.

It is important to establish a maintenance schedule and set procedures for handling repairs, including regular inspections and preventative maintenance, as well as prompt response to customer complaints or concerns. 

Yes, it is possible to start an equipment rental business on the side, although it may require significant time and effort to manage both the business and your other commitments. It is important to carefully consider your available time, resources, and expertise, as well as the potential demand for your services and the competition in the market.

Renting out heavy machinery or specialized equipment may be subject to additional regulations and safety requirements, depending on the type of equipment and the industry in which it is used. It is important to research and comply with all relevant regulations and safety standards, and to ensure that your staff and customers are trained and educated on safe operation and handling of the equipment.

To increase customer retention for your equipment rental business, you can focus on providing exceptional customer service, including prompt response to inquiries and complaints, flexible rental terms, and personalized attention to each customer’s needs. You can also offer loyalty programs or incentives for repeat business, and regularly communicate with customers to stay top of mind and offer new promotions or deals. 

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  • Decide if the Business Is Right for You
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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.

equipment business plan

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. 

rb4000 for roofing

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. 

Why Choose Equipter Equipment for Your Rental Fleet?

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.

machine rental business plan

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EZRentOut Blogs Equipment Rental Business

Starting an Equipment Rental Business – A Complete Guide

  • November 28, 2023

Equipment rental business - a complete guide on how to start it with EZRentOut

The equipment rental industry is expected to reach USD 58.49 billion by 2029, up from USD 42.64 billion in 2022. The constant industry growth means it is ripe for investment. Creating a robust plan can help you start your business in this industry today. 

If you are looking to start your own equipment rental business, there are numerous aspects to consider before you jump in. From finding the right niche to targeting the right audience, and from buying the right equipment to marketing it correctly – we cover every step. 

Here are 7 steps for you to follow to get your equipment rental business up and running : 

1. Get started with your equipment rental business 

The first step towards starting your equipment rental business is to understand the market, industry, and technical jargon. Get the idea down on paper or create a digital mindmap to get a clear picture of the business roadmap. Connect all the relevant dots to verify your idea and its realistic implementation. 

Conceptualize and refine your idea 

Conceptualize and refine your idea 

Once you have the first machine rental business idea drafted, sit down to refine it further. Funnel it repeatedly through different filters like industry saturation, niche saturation, local competition, etc. This will help you refine the exact idea that will work best for you. 

Here are a few tips that will help you: 

  • Find the right equipment 

You can find different types of equipment to rent out for different purposes. For instance, if you have enough capital, you can build a fleet of heavy construction equipment like bulldozers, loaders, etc. You can also get portable and handheld equipment like drills, chainsaws, etc. that cater to a specific industry. 

You can buy everyday tools and equipment to rent out to customers in your neighborhood. So, choose the equipment that you are well-informed about as having ample information will help you at every step of the equipment lifecycle. 

  • Target a specific niche

Find a niche within the umbrella of the equipment rental business that you either have some knowledge of or have experience in. This will give you a competitive advantage from the get-go. 

Some of the popular niches in equipment rental are: 

  • Construction equipment 
  • Heavy equipment 
  • Tools and small equipment 
  • Machinery equipment 
  • Road equipment 
  • Dumpster rental equipment
  • Lawn and garden equipment
  • Carpentry or metalwork equipment 
  • Determine the demand 

The next step is to research the demand in the market you are targeting. Make sure that you choose the right equipment rental business that has ample demand. For instance, if you are in a small city or town, you can offer a one-stop-shop rental solution. 

Get everything under your roof, buy equipment that is used regularly, and sign an agreement with other vendors for low-utilization equipment. If your city or town is rebuilding its infrastructure, you can primarily, offer construction equipment. Research what is in demand and stays in demand for a good chunk of the year. 

  • Identify gaps and opportunities 

Once you know what equipment you will be renting out, find your competitors. Research them. Find out any business gaps that you can fill in. For instance, their business may not have specific high-utilization equipment, or maybe it is always rented out. Find these gaps and fill them in. As the saying goes, if you can’t beat them, join them. 

So, find partnership opportunities with competitors. If they have a high-revenue customer that they can’t fulfill the demand for, step in and become their vendor. There are always multiple opportunities that can be utilized to stand out from the competition. Find them and use them to your advantage. 

Equipment rental industry terms and metrics

Equipment rental industry terms and metrics 

Every industry has its unique jargon which has evolved over time to be commonly used and understood by those belonging to that industry in the equipment rental industry, this jargon has officially been listed by the American Rental Association (ARA) to keep the industry standardized. 

Here are a few terms and metrics you need to be aware of: 

  • Original Equipment Cost (OEC)

OEC measures the size of a rental fleet expressed in a base currency. Consistent with the concept of gross book value under U.S. GAAP, it represents the undepreciated cost of acquiring a piece of equipment.

  • For assets bought off lease, OEC represents the cost paid to buy out the lease 
  • OEC includes the cost of any refurbishments that can be capitalized under U.S. GAAP
  • Time (Physical) Utilization (TU) 

TU is the time an equipment unit is rented divided by the total time available. Fleet-wide TU is weighted by OEC and is a measure of fleet efficiency expressed as a percentage of the time the fleet is on rent.

  • TU per equipment unit = (OEC on rent during the period)/(Total OEC for the period)
  • Financial Utilization ($U)

$U is a function of annualized rental revenue exclusive of ancillary fees weighted by OEC. 

  • $U is calculated by dividing ‘pure’ rental revenue by the average OEC 
  •  ‘Pure’ rental revenue excludes ancillary fees such as environmental fees, damage waivers, delivery charges and re-rent revenue
  • Fleet Age (Age)

Age is the OEC-weighted average age (expressed in months) of the equipment in the fleet.

  • The in-service date is used to calculate fleet age 
  • No adjustments for refurbishments
  • Change in Rental Rate (%RR) 

The period-over-period change in rental rates measures the change in average contract rental rates. Rates vary depending on contract type (daily, weekly, or monthly) and the equipment rented. 

  • When reporting period-over-period rental rate changes, rental companies measure the average change in contract rental rates weighted by the prior period revenue mix

(These terms have been taken directly from the ARA Rental Market Metrics ) 

Research your market and locality

2. Research your market and locality 

Conducting a detailed analysis of your target market and locality will give you meaningful insights that will help you make informed decisions about your equipment rental business. Analyze and understand the competition to effectively offer better rentals to your customers. 

Do an in-depth analysis

This is where pen and paper or a digital notetaking app will help you. Write down everything your competitors are offering, learn how they offer it, what prices they have, and how they’re able to retain their customers. These small details will significantly help you in the long run. 

Take these steps to set up Northstar for your equipment rental business: 

  • Conduct thorough market research

In in-depth market research, try to find your competitors locally, county-wide, and in your state. The wider your scope of research, the more insights you will get. Keep in mind that if you’re starting a heavy equipment rental business, you may have to shorten the radius since logistics will be an important financial aspect to consider. However, you can bypass that by offering delivery and pickups as an additional service. 

  • Analyze pricing strategies

The next step will be to check the average pricing for the equipment you are planning to rent out. The price may vary depending on factors like availability, time of the year, weather conditions, etc. For instance, the weather-specific equipment will be priced differently during high-utilization and low-utilization months. Consider all factors before finalizing the pricing for your equipment. 

  • Figure out your USP 

The unique selling point (USP) of your business will be the decisive factor for customers to come to you rather than your competitors. So, stand out among the competition with a meaningful USP. For instance, you can offer to rent during days when all other competitors are closed. You can add extra services such as logistics, on-the-spot maintenance of your equipment, etc. Find something that solves crucial challenges your customer base is facing. 

Plan your equipment rental business

3. Plan your equipment rental business 

The next phase in starting your construction rental equipment business is to plan it in detail. Take the initial concepts to the next stage. Define a future-proof business plan, estimate and set budgets, and keep all financial aspects in mind. 

Chalk out a future-proof business plan 

If you want to future-proof your business, you start with a roadmap that accounts for all factors that may affect your operations. You will have to define a proper business plan including deep dives into operations, finances, and marketing. 

Here’s what to do: 

  • Detail the business plan

Outline a business model that covers all aspects of your operational workflows. Understand how your business will operate, which equipment rental software to use, what a single workday will look like, etc. From day-to-day operations to monthly reporting, and from quarterly projections to yearly goals – write down everything. 

  • Define business goals for your target market

Once you have your unique value proposition in place, you will have a clear picture of what your business goals should be. Consider your target market. If you’re targeting construction equipment rentals, what value will your rental business provide to construction companies?

 If you are starting a small equipment rental business, why should your community come to you instead of buying their own? Have clear goals regarding what you want to achieve, and highlight the value you’ll add for your customers.

  • Outline marketing strategy 

Once your business plan is ready, you will then have to figure out how you will market it to your customer base. Define a few ideal customer profiles (ICPs) that will help you provide more value to individual customers. For instance, if you are a small equipment rental business, one of your ICPs may be a hobbyist who enjoys making wood furniture as a side gig. Define your ICPs and market your business around them. 

Set a budget for your equipment rental business

Set a budget for your equipment rental business 

Once you’re done with the business plan, move on to budgeting your rental business. This will help you forecast all kinds of financials you need to be aware of. A robust financial plan will include equipment, startup, leasing, permits, insurance, logistics, marketing, and operational costs. 

These tips will help you create a solid financial plan: 

  • Calculate all initial business costs 

Anticipate and note down every kind of cost that you will have to bear from the start of your rental business to when it’s operational. If there’s anything you think will have a price attached to it, note it down. It is always better to be prepared. 

  • Identify operational costs 

It is important to be aware of all costs associated with running your equipment rental business. Depending on the type of equipment you offer, you will have to consider the cost of regular maintenance, servicing, repairs, and even breakdowns. Have a strategy in place to recover damages easily. Include costs for rental software, staffing, overheads, and marketing in operations as well. 

  • Set revenue targets 

Once you have decided on the rental prices for your equipment, it will be easier for you to forecast your regular expected cash flow. Set revenue targets for every quarter and plan your business strategies accordingly. It is easier to set a revenue target first and then try to achieve it rather than jumping in and hoping for the best. Revenue targets will help you align your marketing and rental strategies. 

  • Review quarterly and align 

Consider the first year of your rental business as a trial period. You will be testing out various strategies to find the one that works for you. Schedule weekly, monthly, and quarterly reviews to nudge your business in the right direction. This is crucial. 

Highlight what is working for you, what can be improved, and what needs to be eliminated. If you’re using holistic rental software , it will highlight which equipment is performing well and which has low utilization. You can add and subtract equipment to your rental assets to retain and increase revenue every quarter. 

Financial aspects to keep in mind 

For an equipment rental business, there are a few key financial aspects that you need to consider. These can easily make or break your business. Think them through properly, and come up with a strategy customized for your rental business and your customers. 

Here are the crucial financial metrics to consider: 

  • Rental rates

You can set your own rental rates for your equipment depending on the market, locality, demand, and customers. The rental rate for one specific piece of equipment will also vary depending on its type, the time of year, and the condition of the equipment. Generally, all equipment rental businesses offer a daily, weekly, and monthly rate. As a rule of thumb, the longer your equipment is rented, the higher the profit will be, even if the daily rate for that period is lower than the average daily rate. This is because you will have fewer costs added to it like maintenance, downtime, and delivery and pickup. 

  • Utilization 

Keep in mind that equipment with high utilization will always yield a higher profit. But to cater to this high demand, you have to add more rental equipment to fulfill the demand. You can very easily lose business to a competitor if your high-utilization equipment is frequently unavailable due to being rented out or maintenance. Your competitors will happily jump in to fill this gap for your customers. 

  • Seasonality 

Depending on where your business is located in the States, you have to consider seasons as a factor that will affect your rental business. The summer months are usually busier and the winter months are slower. You can add a wide range of equipment to cover both seasons. For instance, you can offer construction equipment during the summer and winter equipment during the snowy months. 

How to buy the right equipment for your business 

4. How to buy the right equipment for your business 

When buying equipment for your rental business, ensure that you get the best deal. The condition and durability of your equipment will determine how successful your rental business will be. Buy, lease, and get what your customers need. 

Think through the equipment purchases 

There can be multiple ways you can populate the assets and inventory of your equipment rental business. You should always get the best bargain via payment options that suit your needs and budget. 

Here’s what to look for: 

  • Choose to lease or buy the equipment 

If you have enough capital to buy all the necessary equipment at the beginning of your business journey, go ahead and buy it all. If not, you can segment your equipment purchases into high-utilization and low-utilization, and buy the former first and buy the latter down the line. If you’re low on capital, leasing can be a great option to minimize startup costs. You won’t have to dip into too much capital upfront. 

  • Find out the value of individual pieces of equipment 

Evaluate every single piece of equipment to assess its utilization level and profit margin. This way you’ll be able to get the right tools that get you the revenue you want to achieve your fiscal targets. Keep in mind that high-value equipment usually has regular high maintenance costs as well. If you’re only starting out, you can avoid the high-value equipment for the initial 3 to 6 months. As your business grows, you can buy those as well. 

  • Buy the equipment your customers need 

Another best practice is to customize your equipment purchases to cater to the needs of your customers. Rather than buying the equipment you want, you can buy the equipment your customers need. That way, you will ensure regular bookings and rentals for your assets. 

Get the best possible deals 

Let your bargaining prowess shine through when you go out to buy the equipment you want for your business. It’s a simple game of getting the best deal possible after searching for what’s available in the market and for how much. 

Here are a few tips that will help you get the right equipment: 

  • Get rates locally and online 

Although the same piece of equipment may be available at different prices in different States, you should always be aware of the price differences. First, go out into your local market, browse through the vendors, and compare prices there. Then, tally these prices with online stores even if they’re not from your own State. 

This will set a good baseline price for you. When comparing prices, include shipping costs, wherever applicable, in the overall price. Logistically, heavier equipment will be cheaper to buy locally, but you may get a better deal online for small equipment. 

  • View warranties and reviews beforehand 

To make an informed decision when purchasing equipment, make sure you compare not only the prices but also the warranties offered. If you are buying equipment you personally have not used before, it is better to read customer reviews in depth, especially for high-value equipment. Chances are that a similar piece of equipment from two different manufacturers may have different longevity and durability. Also, dive deep into the troubleshooting forums of high-value equipment to find out if customers have faced a similar maintenance issue with certain equipment. It’s good to know all this before making a bad investment. 

  • Buy in bulk or ask for further discounts 

Lastly, if you are purchasing more than one piece, buy it in bulk as it will reduce the overall cost. Find wholesalers who may be able to get you a better deal. Even if you are buying from a retailer, don’t shy away from asking for a further discount. Build good vendor relationships from the start. Let your vendors know you are here for the long run. It will help in creating a lasting customer relationship with them. 

Increase the lifecycle of your equipment

Increase the lifecycle of your equipment 

Once you have bought the equipment you need for your rental business, the next step is to ensure that you increase their lifetime value. Your equipment will be your bread and butter, so make sure you maintain, service, and repair regularly. Well-maintained equipment will have zero to low downtime since it will keep on running like a well-oiled engine. 

Follow these tips to ensure longer equipment lifecycles: 

  • Schedule and perform regular maintenance and inspections 

Great rental software will help you create regular maintenance checkups for your equipment. You can also schedule inspections to check if there is any problem that needs fixing. For heavy construction equipment, you will have to change oil, filters, etc. Maintain a way to schedule these regularly. A best practice is to fix a timeline or use the odometer readings. For instance, you can plan maintenance after every 100 hours or every 100 miles. 

  • Track and analyze maintenance, servicing, and repairs 

Keep track of all your maintenance, servicing, and repairs to quickly assess the health of your equipment. Vehicles and construction equipment that have been cleaned, maintained, serviced, and repaired on time will always have a higher probability of being rented out frequently. Analyze your maintenance, schedule accordingly, and minimize your costs. 

  • Provide necessary guidelines or train customers 

Most equipment breakdown happens when the equipment is not handled properly. To ensure that this doesn’t happen, provide guidelines to your customers on how to correctly operate and use the equipment. If your customer is a first-timer, you can offer to train them on the equipment, for free or with an additional charge. Always be available for support in case an experienced customer faces a mechanical breakdown while using your equipment. 

The best equipment to rent

The best equipment to rent 

To get an idea of which equipment you should buy for your equipment rental business, you can browse this list. These items are utilized regularly and are rented frequently:  

  • Regular and mini excavators for excavator rental business
  • Skid steers
  • Wheel loaders
  • Graders 
  • Bulldozers 
  • Track loaders 
  • Multi-terrain loaders 
  • Wheel excavators 
  • Trailers 
  • DIY and everyday tools for small equipment rental business 
  • Equipment for machine rental business 
  • Lawn and garden tools 

5. Prep your equipment rental business for the web  

After purchasing the right equipment for your business, you have to find the right channels to market it. If your target market is local, you can print out flyers and put up a billboard in a strategic location. Apart from this, you can leverage the power of the internet to increase your outreach. 

How to rent out equipment online 

You can use rental software to manage your rentals online. You can also create a website and webstore to redirect your customers to your online portal. Since the rental software is a turnkey solution, you’ll be able to kickstart your rental business from day one. 

Here are a few steps you can take to highlight your online presence: 

  • Create a professional website and webstore 

Start with a professional website for your equipment rental business. Research the available options as some rental software comes packed with the ability to create a website or a webstore directly. You can populate your equipment assets onto the webstore so your customers can book rentals online. An online webstore will take your business to the next level by allowing your customers to check availability and rent instantly. You won’t have to worry about the time and costs involved in booking orders on a one-on-one call. 

  • Integrate industry keywords and SEO 

Research your industry and competitors, and find out what your customers are searching for on all popular search engines. Once you have a list of keywords they are using, you can incorporate them into your website to achieve higher discoverability. The more eyeballs you get on your business website, the more customers you may be able to do business with. 

  • Leverage social media to build trust 

In this time and age when everyone is present on social media, leverage it for your business. Be present where your customers are, and engage with them frequently. Resolve their issues there, inform them of discounts, attract them to your business, and build long-lasting relationships.  

Build your team

Build your team 

For a business to successfully grow, you need to hire a team of specialized professionals who can help you in different aspects of your rental business. To reduce costs at the start, you can be a one-person-army and handle everything yourself. But if you want to grow, you will have to build a team. 

These tips will be useful in building a dream team: 

  • Identify critical roles 

Find out what the critical roles are for your equipment rental business. You may not need the conventional roles a regular company has, or you may have the margin to merge two similar roles into one. Plan your business team accordingly. Whatever you can do quickly, do it yourself, whatever else remains, delegate it. You can take ownership of sensitive business roles and hire professionals for all other tasks. This is where powerful rental software will act as another member of your team by automating a high number of your rental workflows. 

  • Empower your team with knowledge 

A great business owner takes a leadership role and enables their team to take ownership of their individual departments. Take time out to train your employees with the right tools and knowledge so they can handle everything on their own rather than escalating every minor issue to you. Train them on the rental software as well or get the help of the rental software company to get your employees onboarded quickly. 

6. Consider legal aspects from every perspective  

There are certain legal considerations you need to be aware of for your equipment rental business. Safeguard your business by getting relevant guidance online and from related authorities. You will have to get permits, licenses, insurance, etc. before you can actually start your business. Research online, visit helpdesks of relevant government agencies or get insights from similar businesses in your area. 

Create robust procedures 

To streamline your rental operations and ensure consistency in the quality of your business, get proper and robust procedures in place. Fill the gaps and cover all contingencies by creating a process for every rental business workflow. 

Here are a few guiding points to help you get started: 

  • Write down comprehensive rental agreements, contracts, and policies 

Have proper rental agreements and contracts on your rentals. In all of your customer-business interactions before, during, and after renting out, get an agreement document signed. Write clauses in that agreement or contract to cover all your bases. If it is high-value equipment, you can get pre-booking agreements signed by your customers as well. Jot down comprehensive agreements that help your customer understand how and what action needs to be taken in case of a contingency. 

  • Detailed inventory management 

Manage your rental assets efficiently via rental software to always know where every piece of equipment is and for how long. Your inventory management will ensure that you get the best ROI on every piece of equipment available at your rental business. 

  • Streamlined logistics, pickups, and deliveries 

If you are planning on offering delivery and pickup services to your customers, you can charge them for this service. If you want them to manage this on their own, make sure that you have a few logistics companies at your disposal to offer to them. Build trust with logistics and ensure peace of mind knowing your equipment won’t be damaged during transportation. 

  • Establish maintenance and servicing protocols 

Have proper protocols in place for checking in and out of your rental equipment. Ensure that regular cleaning, maintenance, servicing, and repair protocols are followed. The time you spend in creating these protocols will save you time and money you won’t spend on breakdowns and equipment downtime. 

Power up with rental software

  • Power up with rental software 

Get equipment rental software to automate your workflows. A holistic software will include every workflow your rental business needs. These crucial workflows are order management, customer management, bookings, tracking, invoice management, recurring orders, sub-renting, documentation, analysis, custom reports, customer portal, rental webstore, and much more. Go with rental software that helps you automate as many of your workflows as possible. 

7. Launch your equipment rental business 

Finally, when you have taken all the necessary steps, get ready to launch your equipment rental business. Market it to your customers through the right channels, book orders, and let the equipment rental business begin. 

Happy renting!

What construction equipment is rented out the most?

Some of the most rented-out pieces of equipment in construction rentals are: Excavators and mini-excavators Bulldozers Forklifts and scissor lifts Dump trucks Backhoes Skid Steers Wheel loaders Trailers Bucket truck, and more These are some of the construction equipment that have the highest profit margins. All of these have high utilization as well which means that each unit may frequently be unavailable for rent unless you have a larger fleet.

How profitable is an equipment rental business?

The type of assets you have for rent will determine the profitability of your equipment rental business. If you have a fleet of high-value construction equipment, expect high-profit margins. If you are primarily renting out tools and equipment for everyday DIY projects, the profit margin will be low. You can either mix and match your range of equipment to cater to every kind of customer or you can target a specific niche in your local market that has zero to low competition.

What is the most profitable construction machinery?

The most profitable construction machinery to rent out is wheel loaders. These come in various sizes for maximum flexibility. They can be transported with ease and the medium to small ones can be driven directly to a job (if the traffic laws allow it). This piece of equipment has a high profit margin as well with reasonable servicing costs.

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machine rental business plan

How to write a business plan for an equipment rental company?

equipment rental company business plan

Writing a business plan for an equipment rental company can be an intimidating task, especially for those just starting.

This in-depth guide is designed to help entrepreneurs like you understand how to create a comprehensive business plan so that you can approach the exercise with method and confidence.

We'll cover: why writing an equipment rental company business plan is so important - both when starting up, and when running and growing the business - what information you need to include in your plan, how it should be structured, and what tools you can use to get the job done efficiently.

Let's get started!

In this guide:

Why write a business plan for an equipment rental company?

What information is needed to create a business plan for an equipment rental company.

  • What goes in the financial forecast for an equipment rental company?
  • What goes in the written part of an equipment rental company business plan?
  • What tool can I use to write my equipment rental company business plan?

Having a clear understanding of why you want to write a business plan for your equipment rental company will make it simpler for you to grasp the rationale behind its structure and content. So before delving into the plan's actual details, let's take a moment to remind ourselves of the primary reasons why you'd want to create an equipment rental company business plan.

To have a clear roadmap to grow the business

It's rarely business as usual for small businesses. The economy follows cycles where years of growth are followed by recessions, and the business environment is always changing with new technologies, new regulations, new competitors, and new consumer behaviours appearing all the time...

In this context, running a business without a clear roadmap is like driving blindfolded: it's dangerous at best. That's why writing a business plan for an equipment rental company is essential to create successful and sustainable businesses.

To write an effective business plan, you will need to take stock of where you are (if you are already in business) and where you want the business to go in the next three to five years.

Once you know where you want your equipment rental company to be, you'll have to identify:

  • what resources (human, equipment, and capital) are needed to get there,
  • at what pace the business needs to progress to get there in time,
  • and what risks you'll face along the way.

Going through this process regularly is beneficial, both for startups and existing companies, as it helps make informed decisions about how best to allocate resources to ensure the long-term success of the business.

To get visibility on future cash flows

If your small equipment rental company runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your equipment rental company's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your equipment rental company business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your equipment rental company's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

Whether you are a startup or an existing business, writing a detailed equipment rental company business plan is essential when seeking financing from banks or investors.

This makes sense given what we've just seen: financiers want to ensure you have a clear roadmap and visibility on your future cash flows.

Banks will use the information included in the plan to assess your borrowing capacity (how much debt your business can support) and your ability to repay the loan before deciding whether they will extend credit to your business and on what terms.

Similarly, investors will review your plan carefully to assess if their investment can generate an attractive return on investment.

To do so, they will be looking for evidence that your equipment rental company has the potential for healthy growth, profitability, and cash flow generation over time.

Now that you understand why it is important to create a business plan for an equipment rental company, let's take a look at what information is needed to create one.

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Writing an equipment rental company business plan requires research so that you can project sales, investments and cost accurately in your financial forecast.

In this section, we cover three key pieces of information you should gather before drafting your business plan!

Carrying out market research for an equipment rental company

As you consider writing your business plan for an equipment rental company, conducting market research becomes a vital step to ensure accurate and realistic financial projections.

Market research provides valuable insights into your target customer base, competitors, pricing strategies, and other key factors that can significantly impact the commercial success of your business.

Through this research, you may uncover trends that could influence your equipment rental company.

Your market research may reveal that your customers may be looking for rental equipment with more advanced features. Additionally, it could reveal that they may be interested in renting equipment at a lower cost.

Such market trends play a significant role in forecasting revenue, as they offer valuable data about potential customers' spending habits and preferences.

By incorporating these findings into your financial projections, you can present investors with more accurate information, helping them make informed decisions about investing in your equipment rental company.

Developing the sales and marketing plan for an equipment rental company

Budgeting sales and marketing expenses is essential before creating an equipment rental company business plan.

A comprehensive sales and marketing plan should provide an accurate projection of what actions need to be implemented to acquire and retain customers, how many people are needed to carry out these initiatives, and how much needs to be spent on promotions, advertising, and other aspects.

This helps ensure that the right amount of resources is allocated to these activities in order to hit the sales and growth objectives forecasted in your business plan.

The staffing and capital expenditure requirements of an equipment rental company

Whether you are starting or expanding an equipment rental company, it is important to have a clear plan for recruitment and capital expenditures (investment in equipment and real estate) in order to ensure the success of the business.

Both the recruitment and investment plans need to be coherent with the timing and level of growth planned in your forecast, and require appropriate funding.

A equipment rental company might incur staffing costs such as salaries for administrative staff, customer service staff, and sales staff. Additionally, they might incur costs for equipment such as forklifts, generators, and scaffolding. They may also need to purchase tools and parts to maintain their equipment, as well as transport and safety equipment.

In order to create a realistic financial forecast, you will also need to consider the other operating expenses associated with running the business on a day-to-day basis (insurance, bookkeeping, etc.). 

Once you have all the necessary information to create a business plan for your equipment rental company, it is time to start creating your financial forecast.

What goes into your equipment rental company's financial forecast?

The financial forecast of your equipment rental company's business plan will enable you to assess the growth, profitability, funding requirements, and cash generation potential of your business in the coming years.

The four key outputs of a financial forecast for a equipment rental company are:

  • The profit and loss (P&L) statement ,
  • The projected balance sheet ,
  • The cash flow forecast ,
  • And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

The projected P&L statement for an equipment rental company shows how much revenue and profits your business is expected to generate in the future.

projected profit and loss statement example in a equipment rental company business plan

Ideally, your equipment rental company's P&L statement should show:

  • Healthy growth - above inflation level
  • Improving or stable profit margins
  • Positive net profit

Expectations will vary based on the stage of your business. A startup will be expected to grow faster than an established equipment rental company. And similarly, an established company should showcase a higher level of profitability than a new venture.

The forecasted balance sheet of your equipment rental company

The projected balance sheet of your equipment rental company will enable the reader of your business plan to assess the overall financial health of your business.

It shows three elements: assets, liabilities and equity:

  • Assets: are productive resources owned by the business, such as equipment, cash, and accounts receivable (money owed by clients).
  • Liabilities: are debts owed to creditors, lenders, and other entities, such as accounts payable (money owed to suppliers).
  • Equity: includes the sums invested by the shareholders or business owners and the profits and losses accumulated by the business to date (which are called retained earnings). It is a proxy for the value of the owner's stake in the business.

projected balance sheet in a equipment rental company business plan example

Analysing your equipment rental company projected balance sheet provides an understanding of your equipment rental company's working capital structure, investment and financing policies.

In particular, the readers of your plan can compare the level of financial debt on the balance sheet to the equity value to measure the level of financial risk (equity doesn't need to be reimbursed, while financial debt must be repaid, making it riskier).

They can also use your balance sheet to assess your equipment rental company's liquidity and solvency:

  • A liquidity analysis: focuses on whether or not your business has sufficient cash and short-term assets to cover its liabilities due in the next 12 months.
  • A solvency analysis: takes and longer view to assess whether or not your business has the capacity to repay its debts over the medium-term.

The cash flow forecast

As we've seen earlier in this guide, monitoring future cash flows is the key to success and the only way of ensuring that your equipment rental company has enough cash to operate.

As you can expect showing future cash flows is the main role of the cash flow forecast in your equipment rental company business plan.

example of projected cash flow forecast in a equipment rental company business plan

It is best practice to organise the cash flow statement by nature in order to show the cash impact of the following areas:

  • Cash flow generated from operations: the operating cash flow shows how much cash is generated or consumed by the business's commercial activities
  • Cash flow from investing activities: the investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.) either to maintain the business's equipment or to expand its capabilities
  • Cash flow from financing activities: the financing cash flow shows how much cash is raised or distributed to financiers

Looking at the cash flow forecast helps you to make sure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

Your equipment rental company business plan will normally include both yearly and monthly cash flow forecasts so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The sources and uses table or initial financing plan is a key component of your business plan when starting an equipment rental company.

It shows where the capital needed to set up the business will come from (sources) and how it will be spent (uses).

sources and uses table in a equipment rental company business plan

This table helps size the investment required to set up the equipment rental company, and understand how risks will be distributed between the business owners, and the financiers.

The sources and uses table also highlights what the starting cash position will be. This is key for startups as the business needs to have sufficient funding to sustain operations until the break-even point is reached.

Now that you have a clear understanding of what will go into the financial forecast of your equipment rental company business plan, let's have a look at the written part of the plan.

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The written part of an equipment rental company business plan

The written part of an equipment rental company business plan is composed of 7 main sections:

  • The executive summary
  • The presentation of the company
  • The products and services
  • The market analysis
  • The strategy
  • The operations
  • The financial plan

Throughout these sections, you will seek to provide the reader with the details and context needed for them to form a view on whether or not your business plan is achievable and your forecast a realistic possibility.

Let's go through the content of each section in more detail!

1. The executive summary

The executive summary, the first section of your equipment rental company's business plan, serves as an inviting snapshot of your entire plan, leaving readers eager to know more about your business.

To compose an effective executive summary, start with a concise introduction of your business, covering its name, concept, location, history, and unique aspects. Share insights about the services or products you intend to offer and your target customer base.

Subsequently, provide an overview of your equipment rental company's addressable market, highlighting current trends and potential growth opportunities.

Then, present a summary of critical financial figures, such as projected revenues, profits, and cash flows.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Lastly, address any funding needs in the "ask" section of your executive summary.

2. The presentation of the company

In your equipment rental company business plan, the second section should focus on the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide an overview of the business's legal structure, details about the owners, and their respective investments and ownership shares. This clarity is crucial, especially if you're seeking financing, as it helps the reader understand which legal entity will receive the funds and who controls the business.

Moving on to the location part, you'll offer an overview of the company's premises and their surroundings. Explain why this particular location is of interest, highlighting factors like catchment area, accessibility, and nearby amenities.

When describing the location of your equipment rental company to a third party financier, you could emphasize the potential for growth in the area. The company could be located in an area with a high population density, which could increase the potential customer base. You could also note the availability of resources in the area, such as materials, transportation, and labor that could help the company to succeed. Additionally, you might point out the proximity to major markets and transportation hubs, which could help the company access new clients and expand its operations. Finally, you could highlight the potential for tax incentives and subsidies in the area, which could help reduce the company's operating costs.

Finally, you should introduce your management team. Describe each member's role, background, and experience.

Don't forget to emphasize any past successes achieved by the management team and how long they've been working together. Demonstrating their track record and teamwork will help potential lenders or investors gain confidence in their leadership and ability to execute the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of the offerings that your company provides to its customers. 

For example, your equipment rental company might offer rental of construction tools, party supplies, and outdoor recreation equipment. Construction tools could include anything from drills and saws to ladders and scaffolding for larger projects. Party supplies could include tables, chairs, tents, and decorations to accommodate large events. Outdoor recreation equipment could include kayaks, canoes, and bicycles for customers looking to explore the outdoors. These products and services offer customers the convenience of using quality equipment without having to make a large upfront investment.

When drafting this section, you should be precise about the categories of products or services you sell, the types of customers you are targeting and how customers can buy them.

4. The market analysis

When presenting your market analysis in your equipment rental company business plan, you should detail the customers' demographics and segmentation, target market, competition, barriers to entry, and any regulations that may apply.

The goal of this section is to help the reader understand how big and attractive your market is, and demonstrate that you have a solid understanding of the industry.

You should start with the demographics and segmentation subsection, which gives an overview of the addressable market for your equipment rental company, the main trends in the marketplace, and introduces the different customer segments and their preferences in terms of purchasing habits and budgets.

The target market section should follow and zoom on the customer segments your equipment rental company is targeting, and explain how your products and services meet the specific needs of these customers.

For example, your target market might include large construction companies. These companies need to rent heavy equipment for large projects and would likely need to rent such equipment on a regular basis. These companies have the financial resources to make large investments in heavy equipment and may even need to rent specialized equipment that they do not have.

Then comes the competition subsection, where you should introduce your main competitors and explain what differentiates you from them.

Finally, you should finish your market analysis by giving an overview of the main regulations applicable to your equipment rental company.

5. The strategy section

When crafting the strategy section of your business plan for your equipment rental company, it's important to cover several key aspects, including your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, clearly explain what sets your company apart from competitors. This is particularly critical if you're a startup, as you'll be trying to establish your presence in the marketplace among entrenched players.

The pricing strategy subsection should demonstrate how you aim to maintain profitability while offering competitive prices to your customers.

For the sales & marketing plan, outline how you plan to reach and acquire new customers, as well as retain existing ones through loyalty programs or special offers.

In the milestones subsection, detail what your company has achieved thus far and outline your primary objectives for the coming years by including specific dates for expected progress. This ensures everyone involved has clear expectations.

Lastly, in the risks and mitigants subsection, list the main risks that could potentially impact the execution of your plan. Explain the measures you've taken to minimize these risks. This is vital for investors or lenders to feel confident in supporting your venture - try to proactively address any objection they might have.

Your equipment rental company may face a variety of risks. For example, there is the risk of equipment damage or loss due to improper use or theft. This could lead to costly repairs or replacements, and possibly even a drop in customer satisfaction. Additionally, there could be risks related to employee safety. For example, if your company rents out heavy machinery, there is a chance that a customer may not know how to properly use the equipment, leading to employee injury.

6. The operations section

The operations of your equipment rental company must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your equipment rental company - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You could have key assets such as the rental equipment itself and the inventory of items available. These may include items such as tools, vehicles, and heavy machinery. You might also have Intellectual Property such as the software associated with the rental company and the branding associated with the company. These could be trademarks, logos, and other designs that help the rental company stand out from the competition.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we discussed earlier in this guide.

Now that you have a clear idea of what goes into an equipment rental company business plan, let's look at some of the tools you can use to create yours efficiently.

What tool should I use to write my equipment rental company's business plan?

There are two main ways of creating your equipment rental company business plan:

  • Using specialized business planning software,
  • Hiring a business plan writer.

Using an online business plan software for your equipment rental company's business plan

Using online business planning software is the most efficient and modern way to write an equipment rental company business plan.

There are several advantages to using specialized software:

  • You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
  • You are guided through the writing process by detailed instructions and examples for each part of the plan
  • You can access a library of dozens of complete business plan samples and templates for inspiration
  • You get a professional business plan, formatted and ready to be sent to your bank or investors
  • You can easily track your actual financial performance against your financial forecast
  • You can create scenarios to stress test your forecast's main assumptions
  • You can easily update your forecast as time goes by to maintain visibility on future cash flows
  • You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

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Screenshot from The Business Plan Shop's Financial Forecasting Software

Hiring a business plan writer to write your equipment rental company's business plan

Outsourcing your equipment rental company business plan to a business plan writer can also be a viable option.

Business plan writers are skilled in creating error-free business plans and accurate financial forecasts. Moreover, hiring a consultant can save you valuable time, allowing you to focus on day-to-day business operations.

However, it's essential to be aware that hiring business plan writers will be expensive, as you're not only paying for their time but also the software they use and their profit margin.

Based on experience, you should budget at least £1.5k ($2.0k) excluding tax for a comprehensive business plan, and more if you require changes after initial discussions with lenders or investors.

Also, exercise caution when seeking investment. Investors prefer their funds to be directed towards business growth rather than spent on consulting fees. Therefore, the amount you spend on business plan writing services and other consulting services should be insignificant compared to the amount raised.

Keep in mind that one drawback is that you usually don't own the business plan itself; you only receive the output, while the actual document is saved in the consultant's business planning software. This can make it challenging to update the document without retaining the consultant's services.

For these reasons, carefully consider outsourcing your equipment rental company business plan to a business plan writer, weighing the advantages and disadvantages of seeking outside assistance.

Why not create your equipment rental company's business plan using Word or Excel?

I must advise against using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write your equipment rental company business plan. Let me explain why.

Firstly, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is highly technical and requires a strong grasp of accounting principles and financial modelling skills. It is, therefore, unlikely that anyone will fully trust your numbers unless you have both a degree in finance and accounting and significant financial modelling experience, like us at The Business Plan Shop.

Secondly, relying on spreadsheets is inefficient. While it may have been the only option in the past, technology has advanced significantly, and software can now perform these tasks much faster and with greater accuracy. With the rise of AI, software can even help us detect mistakes in forecasts and analyze the numbers for better decision-making.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software makes it easier to compare actuals versus forecasts and maintain up-to-date forecasts to keep visibility on future cash flows, as we discussed earlier in this guide. This task is cumbersome when using spreadsheets.

Now, let's talk about the written part of your equipment rental company business plan. While it may be less error-prone, using software can bring tremendous gains in productivity. Word processors, for example, lack instructions and examples for each part of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they don't handle formatting for you.

Overall, while Word or Excel may seem viable for some entrepreneurs to create a business plan, it's by far becoming an antiquated way of doing things.

  • Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
  • A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
  • A business plan has 2 main parts: a financial forecast outlining the funding requirements of your equipment rental company and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your equipment rental company business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.

Also on The Business Plan Shop

  • How to write a business plan to secure a bank loan?
  • How to write the business plan for a grant application?
  • How to write the location section of your business plan?
  • How do business plans differ from business proposals?
  • Key steps to write a business plan?
  • Top mistakes to avoid in your business plan

Do you know entrepreneurs interested in starting or growing an equipment rental company? Share this article with them!

Guillaume Le Brouster

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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How To Start An Equipment Rental Business: Your Guide to Success

In this article, we discuss how to start an equipment rental business, what to consider when planning to start your business, and offer proven tips and insights to help your business thrive.

machine rental business plan

An equipment rental business start-up can be an extremely lucrative and effective form of business or income that you can grow to a (relatively) passive income stream. In order to keep your business viable and profitable, there are several key considerations that you should think about when it comes to administrative functions, hiring out equipment and other elements of your business operations.

Is an equipment rental business profitable? 

Before beginning your business, it is important for you to consider if the model will suit your current needs. One of the key ways to do this is to consider a simple question: “Is an equipment rental business profitable?” Equipment rental business profitability can vary greatly depending on your connections, location, ability to procure top-quality equipment in the industry, and more. Because of this, you may begin to find new and best ways to boost your equipment rental business profitability. 

Learning how to make your tool rental business profitable comes down to determining what barriers you have to overcome in order to reach success. It is possible to make a rental business profitable and to reinvest that profit to continue gaining additional benefits. However, you must start off with a significant investment in industry-leading tools and equipment to make your business competitive against other competitors. 

There is no true limit to the amount of profit that your rental business can make. This is due to the fact that these businesses are easy to delegate, leaving you more opportunity to expand your reach and start new sectors in more profitable areas. Your first rental business will ultimately be a learning experience and can serve as a framework for additional businesses if you feel so inclined. 

Most profitable rental equipment

Before you make your equipment investment, you’re likely working to evaluate which investments will get you the most profitable rental equipment. If you plan to serve a certain subsect of the industry, that is vital to take into account. However, if you’re looking to serve the general event and performance space, there are certain timeless pieces that you can begin with, and continue to expand upon over time. Consider conducting micro surveys of individuals in your space through services such as OnePulse or other e-services, allowing you to get real-time data based on current trends. You can also conduct a competitor analysis to determine which offerings are most appropriate for your current phase of business. 

How much money do you need to start a rental business?

An equipment rental business can be a significant upfront investment as you purchase your gear, and can continue to offer additional instances of cost for one-time or recurring events — such as repairs or travel and shipment costs. You can also factor a variety of different factors into account, such as: 

  • Business licensing fees 
  • Incorporation costs 
  • Recouperation costs 
  • Location rent fees or monthly costs
  • Other operating costs, such as employee payroll 

These elements are important to consider when you’re creating your budget for starting a rental budget of any type. While the cost up front may seem significant, you can easily obtain a small business loan from banking institutions in the form of credit or a lump sum. You can also consider private loans or financing as well. 

No matter how you choose to fund your business, you may consider putting together a detailed financial plan and budget for your equipment rental business to show investors exactly what you plan to do with their cost, and how you plan to recoup the amount and pay it back in full. Being as detailed and as up front as possible can help to increase your chances of securing financing on the first few rounds of attempts, and can speed your process to launch. 

Equipment rental business model 

A business plan can serve as a guiding framework for your business, and acts as your roadmap to success. Your business plan should have all considerations of your business listed, explained, and planned for, ranging from logistical needs to overall short and long-term goals. While there is no explicit equipment rental business model, you will be following a B2C framework if you are dealing in rentals only. Using this, you can craft a thorough business plan for your tool rental business. Below, we’ve listed everything that you should include in your small equipment rental business plan: 

Market Analysis

Conducting a market analysis is valuable, and shows investors and stakeholders that you have considered the needs of your target market. This should be toward the front of your business plan, and can illustrate how your business can best meet the needs of your ideal customer. When conducting market analysis, consider including a form of a customer profile timeline, highlighting their journey through your marketing funnel. This isn’t just advantageous to your marketing team and salespeople, this can help you to identify any points of weakness before presenting your business plan, helping you to make it as strong as possible before pitching to investors. 

When creating your market analysis, micro-surveys may be helpful, as well as any spec sheets that highlight your specific product features or offerings that can directly address customer needs. You can connect with this concept more by creating customer profiles, otherwise known as personas or avatars. In this part of your analysis, you’ll be identifying core demographic and defining characteristics of your audience, and demonstrating how your products can help each sub-class of your potential customers. Illustrating these concepts with as many visualizations as possible can help you to accurately organize your information in a digestible way. Always be sure to cite your sources, and verify all data points and statistics that you choose to use to protect your credibility. 

Competitor Analysis 

Now that you know your ideal customer, you will want to analyze your competition. Honesty is vital here, and can more accurately enable you to see what your competitors do well, and what they can improve on. Taking this information and creating strategies that apply to your equipment rental business can help to easily cement your place in the market and elevate you to a viable choice for your ideal customer. 

When conducting your competitor analysis, it’s important to leave no stone unturned. Review everything that you can find, including their social media presence across all platforms, customer reviews, website content and ads, as well as their offerings and price points. Be as thorough as possible, as all of this information can inform your own lucrative business and marketing strategy, which we’ll cover next. 

Marketing Strategy 

Before you launch your business, it’s important to solidify an initial marketing strategy that you will use to begin to reach your ideal customers. Taking a diverse, multi-channel approach to outreach can significantly boost your opportunity to convert your prospects within a shorter timeframe, especially if you rely on your previously created avatars or personas. Taking information learned from your competitor analysis and creating outreach around their gaps can be a great place to start, and you can continue to refine your messaging over time as you determine what “works” for your ideal audience and business. 

Your marketing strategy should be dynamic and reach across a wide variety of channels. Beyond doing online ads, you may consider the following social media channels to use when building your presence: 

  • Facebook 
  • TikTok 
  • Twitter 
  • LinkedIn 

Additionally, there are other avenues of marketing you can use as well, which we’ve summarized below: 

  • Content Marketing : Content marketing is done through your website and blogs, using organic content and optimizing it to have certain keyword density that is attractive to search engine algorithms. This is usually under the umbrella of SEO, otherwise known as search engine optimization. You can hire a skilled copywriter to assist you in creating your content and optimizing it for Google’s processes. 
  • Social Media Ads : Beyond simply posting on social media, you can also create ads that are designed to speak to your ideal customers. There are a variety of ads that you can use, most commonly centered around lead generation or retargeted. Every platform has different preferences, so you may consider bringing on an ads specialist or hiring an AI-based service to help you dial in your campaigns. 
  • Search Engine Marketing : SEM, otherwise known as Search Engine Marketing, is helpful and can place your ads directly on the search page. This is great for brand recognition, especially if your site is built and optimized for people to land on when they click into the ad. An SEO or SEM specialist will be helpful to help you create and launch your campaigns in the search engine. 
  • Community Outreach : There is still a lot to be said for simple community outreach. You will make a splash with local customers by showing up where they are and building brand awareness — such as farmer’s markets or performances. 

Financial Overview 

This is the framework budget that you will include to show investors exactly how you will spend your money. You can use your budget that you created when determining if your business will be profitable, and highlight the key figures that you will need to get there. You can make this component of your business plan as effective as possible by using graphics, statistics, and visual mediums to convey your needs easily to key stakeholders that could invest in your business. 

Proven tips to start an equipment rental business

Now that you’ve taken the leap to start your own equipment rental business, it’s time to optimize. Below, we’ve compiled a list of the top proven tips to help you through the launch process:

Create a plan for routine servicing and preventative maintenance

Taking the time to create a plan for routine and preventative maintenance for your rental tools is important not only for your team, but also for your investors. This can show that you have anticipated the needs required in order to keep the equipment profitable and protected, offering insight into your plan for longevity and user safety. This can also reduce the amount of customer service complaints and risk. Sharing this plan as part of your business plan is ideal. 

Get legal help for your contract drafts 

Never launch without a legally binding contract. Hiring on a lawyer to help you draft initial copy for your contracts is a great idea to protect your investments and to keep the interests of all parties as protected as possible. 

Invest in an equipment management software system 

Investing in a centralized equipment management system can help you to easily navigate equipment location, maintenance needs, team management, and more. Housing this in one simple software can help you to easily access and complete reporting, management tasks, and more. This is one investment that you won’t want to miss. 

Launching your equipment rental business has never been easier

A tool rental business is a great business opportunity for 2022, especially as customers are more reliant on tech than ever before. This article offers key insights that you can use to successfully create, launch, and manage your equipment rental business.

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Starting an equipment rental business here is our advice.

Are you thinking about starting a rental business? Get off to a great start with these tips!

It doesn’t matter whether you want to rent out camera equipment, bikes, luxury cars, party supplies, … Our advice will help you make your rental business a success.

Visit our Youtube channel  to watch more videos about equipment management!

1. Study your market

Starting the exact same business in two locations mere miles apart can lead to radically different results. A bike rental downtown will have different customers than one by the beach, and they will have different needs. So before you get started make sure that you know what your customers are looking for!

The best way to do this is quite simple – talk to them. If you want to rent out construction equipment, talk to local construction companies. Kayaks and canoes, talk to tourists, etc. Some questions you can ask:

  • What kind of equipment are you looking for? Basic or high-end? Which brands or specific items are most and least popular?
  • How much are you willing to pay? Instead of pulling a number out of a hat, get at least a rough estimate of how much your customers are able and willing to pay.
  • Do you need more than rentals? Are there other services you can offer to become a one-stop shop for your customers?

Professional market research can quickly become expensive, but you can do a lot yourself!

2. Don’t buy more, buy smarter

By knowing your customers and what they are looking for, you can make smarter decisions about the equipment you buy. Avoid idle inventory at all costs – it only takes up space and money that you could use to grow your business!  Don’t overspend on equipment at the start: buy your minimum viable inventory based on your market research. Once you get started, buy more of the equipment that is most popular and lucrative. It is cheaper and easier to buy more equipment later than to get rid of excess unwanted equipment. To track what you have and decide what to buy, it's easier to use asset management software to stay ahead.

3. Find the best deal for your equipment

Unless you’re starting a rental business because you won the lottery and got bored, you’ll want to make the most of every cent or penny you spend.

Your equipment is likely to be one of your biggest investments, so make sure you invest your money wisely. Instead of blowing all of your money on the newest and best equipment you can find, consider your alternatives.

  • What are your customers looking for? Will they be twice as happy if you spend twice as much? Don’t buy high-end if they are looking for budget rentals.
  • Can you buy used equipment? This can save you a massive amount of money, allowing you to buy more equipment or invest in other areas.

4. Treat your equipment right

Your business depends on your equipment – no equipment, no rentals! That is why it is so important that you take good care of your equipment inventory:

  • Regular maintenance – spot & fix potential problems before your customers do!
  • Prompt and thorough repairs – fix any issues quickly and thoroughly so they don’t cause you more trouble in the future.
  • Cosmetic fixes – your equipment shouldn’t just work like new. It should look like new as well! Make sure you create a good impression for (potential) customers.

Take care of your equipment, and it will take care of you!

5. Stake your claim online

The good news first: you don’t need to invest a massive amount of time, money, and effort into creating your website. It is vital, however, that you have an online presence and that when people visit your site, you create a good impression. The first thing your potential customers will do is search for information online. That is why you need:

  • A professional-looking website that shows you can be trusted
  • With the information customers need – what and how can they rent from you?
  • That is easy to find online – even the best website is useless without visitors!

Looking for more information about setting up your own website? This article provides a more comprehensive overview . Creating a presence on social media is important as well. If you rent to other businesses, they are less likely to check Facebook for options, but they might look on LinkedIn. Here is some advice on using social media for your small business . Even with social media, your own website is your most important online property – it is your home online, that is fully under your control. So make sure it reflects well on you!

6. Create partnerships

Start by asking yourself, ‘What other products or services are my customers looking for?’ If you are starting a bike rental shop, your customers might also need:

  • Places to stay – hotels, bed & breakfasts, …
  • Places to visit- nature parks, museums, …
  • Things to do – amusement parks, shopping malls, restaurants, …

Contact these companies or organizations and ask them if they would be interested in a referral partnership: if someone asks for a bike rental, they refer them to you. And if someone asks you for a place to stay, eat, or visit, … you refer them to your partners.

By referring customers to each other, you create a win-win-win situation.

  • You and your partners get more customers
  • Your customers quickly and easily get the products or services they need

The referrals you make reflect back on you – so only make recommendations that you feel confident about! The last thing you want is customers complaining about the advice you gave them. This advice is valid for other industries as well – e.g. if you are starting an AV or party rental business, your customers probably need catering and a venue.

7. Find the right tools for your business

As a small business owner, you need to take care of more than just renting equipment. Accounting, communication with (potential) customers, managing employees, … As luck would have it, we have created a list of business applications that we recommend . Every application on this list is designed to help you manage your small business!

8. Get your paperwork in order

Not the sexiest of topics, but an important one! The work you need to do depends on where you are based ( here is an overview for starting a new business in the US ) Besides the formalities of starting any business, a rental business has extra insurance liabilities. Your entire business depends on non-employees interacting with your equipment.

So while you want to make sure you have good insurance for your equipment, your customers are your biggest risk. Even with no-liability waivers, make sure you have the right insurance. You don’t want one big hospital bill to jeopardize your entire business!

9. Treat your customers right

Rentals are repetitive – your customers only rent your equipment for a period of time, so if they need it again in the future, they have to rent it again. Make sure that when they rent again, they come to you!

  • Be more than just a place to rent – make your customers feel welcome and give them relevant advice and guidance alongside friendly service
  • Create a hassle-free experience – don’t overwhelm your customers with procedures and paperwork
  • Don’t wring out every last cent – would you rather make another $2 once or have your customers return and keep spending their money?

At the same time, don’t neglect general customer service.

10. Create a waterproof agreement

Do you think customers enjoy arguing with you? And do you enjoy arguing with them? The answer to the first question is ‘no’, and ‘no’ should be your answer for the second question as well. But what can you do to avoid arguments?

Make sure you and your customers are on the same page.  Sign a check-out agreement !

  • How should the rental equipment be treated – what is acceptable wear and tear?
  • When and where does the rental agreement end and start?
  • What should the customer do if something goes wrong?
  • What are the penalties for damage, loss, theft, late returns,…?

Clearly communicate the answers to these questions upfront to avoid confusion and conflict later on. Have these terms in writing as well, signed by both you and the customer. Be thorough & complete, and don’t ‘hide’ anything in the small print. If you make something hard to read, don’t be surprised if your customers don’t read it!

The final step: bring everything together

If you’ve followed all of this advice, you should have a pretty good idea by now about what you should do to make your new rental business a stunning success. But don’t just keep it in your head! Bring it together in a business plan for your rental business – a rental business plan. A business plan is essential for the success of your business. Remember the old proverb – failing to plan is planning to fail. So here is some advice from the US Small Business Administration on creating a business plan!

These are our tips for starting your own equipment rental business. We hope that this guide has been helpful to you.

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Meet Hana Belbecir , our dynamic content marketer. She infuses creativity and strategic vision into the core of our brand. Hana, passionate about storytelling and has a keen eye for market trends, is devoted to creating a unified brand identity for Cheqroom. Her favorite part? Working & brainstorming with different creatives.

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9 o-col-12 s-wysiwyg"> faq on starting a rental business, do i need much equipment to start a rental business.

Don’t overspend on equipment at the start: buy your minimum viable inventory based on your market research. Once you get started, buy more of the equipment that is most popular and lucrative.

How to take care of my equipment inventory

Assure regular maintenance; Do prompt and thorough repairs, fix any issues quickly and thoroughly. Do cosmetic fixes- your equipment shouldn’t just work like new, it should look like new as well.

How to be a good rental business

Create partnerships with locals or companies with which you can exchange referrals, help each-other out. Be good to your customers, meaning hassle-free with friendly service and don’t go after their money.

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How to Create a Business Plan for a Construction Equipment Rental Company

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No matter what kind of business you’re interested in starting, you’re going to need a well-put-together business plan if you’re going to succeed.

Not only is planning essential to your success, but it’s also something that any lender will have to see before providing a loan to start your business. With a good small equipment rental business plan, you can make a great impression and get the funding you need.

Your business plan should start with an industry overview, which serves as a sort of introduction. This brief section will discuss the general state of the construction industry to serve as a lead in to why you believe that your business will be profitable in this area.

The Industry Overview section should include some publicly available statistics on construction and rental industries, total revenue in the country and the state, growth percentages over the last few years, and other very general information at this point in your plan.

The Industry Overview

The executive summary.

The executive summary is just that, a summary. In this section, you can go over why you’re interested in starting a construction equipment rental company, what kinds of services you’re going to provide, and some details about your background.

While this is one of the first sections of any heavy equipment rental business plan PDF template , it’s often the best practice to write it last. Because it serves as an introduction to the remainder of the plan, you should have a very firm idea of what’s to follow.

Your Services

Next, you’ll need a thorough description of what your actual services are going to be. In the case of equipment rentals, you’ll describe that you’ll be acquiring equipment to rent to individuals and companies in your area.

At this point, you should consider if rentals are going to be your only service. Most rental businesses sell at least accessories for some equipment and often provide repairs as well. If you intend to provide additional services, you’ll have to include them here.

The Mission Statement and Vision

While this section might seem like a bit of departure from the more practical parts of the business plan, it is expected and will be included in any construction equipment rental business plan PDF templates.

Here, you’ll generally explain that your mission statement and vision are to provide quality service as a rental business and to thrive within the market. You don’t have to make up something about values or principles; you’re here to start a business.

The Structure and Roles

Getting back to the details of how your business is going to run, you’ll have to define what the roles in your company are going to be. Depending on the size of the business you’re setting up, are you going to be the CEO, owner, manager, or all three?

Small businesses could just be one person, or perhaps several who all share in a variety of duties. For larger endeavors, you’ll have to define roles like maintenance manager, rentals and leasing manager, and more.

The SWOT Analysis

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It’s a way of looking at your business to find which areas you believe you’ll excel in and which will present challenges.

For your strengths, you might like to mention any past experience in either equipment or business in general. You don’t want to go too far into your weaknesses, perhaps just mentioning that there are plenty of competitors, but make sure to mention how your business plans to differentiate itself.

Your Sales and Marketing Strategies

Here, you’ll have to explain how your business plans to present itself and put itself out there to get started and find customers. Some common strategies might include brochures, a website, social media, or ads in local print publications.

You should also specify who your target market is supposed to be. Are you exclusively renting heavy equipment to construction contractors? Are you renting smaller equipment to mostly homeowners?

Your Sales Forecast

When dealing with lenders, they’re going to want to know how much money your business plans on making. While determining these kinds of forecasts can be difficult, you can often base them on industry averages within your region.

These should be broken down by fiscal year, so basically stating what you forecast your sales to be in the first, second, and third years of operation. Any information about a similar business would be very helpful in putting this together.

Your Pricing Strategy

So you’ve acquired some equipment to rent out, but how much does it cost to rent? Are there additional fees? Do customers have to put down deposits? What payment methods are accepted? These are some important questions to answer in your pricing strategy.

This section should also reference the ratio between equipment costs and rental rates to demonstrate that equipment rentals will be profitable over the lifetime of the equipment.

Your Business Expenses

Of course, your business plan is going to have to include a breakdown of your expected expenses. This breakdown will have to include both the initial expenses of opening your business and the ongoing operational expenses you can expect to continue into the future.

Your startup expenses will play a big part in justifying any loans you’re seeking, and a well-defined explanation of operational expenses will play a big part in demonstrating that your business can be profitable.

If this all sounds like a bit much, you can greatly streamline the process of developing your equipment rental business plan by downloading our straightforward business plan template PDF.

Setting Up Your New Rental Business for Success With Quipli

Even with an effective business plan, your rental business needs careful oversight and the right tools to succeed. Quipli provides an integrated platform that combines your inventory management and online presence to make online bookings that much easier for your customers.

To find out more about the many features of the Quipli platform and what they can do for your business, Contact our Team at Quipli for a demo of online equipment rental checkout software t oday!

Get Started With Quipli’s Construction Rental Equipment Software Today

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About the author

Kyle Clements

Kyle Clements is the Founder & CEO of Quipli, a provider of modern software for independent equipment rental companies. Kyle has a decade of software startup experience and has been part of several successful ventures that have become publicly traded or been privately acquired, such as Uber and Clutch Technologies. In the past few years, Kyle has completed thousands of customer interviews understanding needs and trends in the growing equipment rental market. Kyle brings a unique perspective to the equipment rental industry and is passionate about partnering with independent equipment rental companies to run their operations more effectively and assist them in creating an impactful experience for their customers.

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Russian Tours and Cruises from Express to Russia

Moscow International Business Center (Moscow City)

  • Guide to Russia

What can you do at Moscow City?

  • Dine in style: Moscow City is home to 100+ cafes and restaurants, including Europe’s highest restaurant and ice-cream shop
  • See Moscow like never before: Ascend to one of Moscow City’s observation decks for an unparalleled panorama of Moscow
  • Admire world-class architecture: Each of Moscow City’s skyscrapers has distinctive architecture and design
  • Learn something new: Visit the Museum of High-Rise Architecture in Moscow or the Metro Museum

Moscow City is a multifunctional complex in the west of Moscow, which has come to represent the booming business of Russia’s capital. Its skyscrapers enrich Moscow’s skyline, contrasting the medieval cupolas and Stalinist high-rises. Visitors to Moscow City can enjoy entertainment high in the sky, as the complex is home not just to offices, but to restaurants, cinemas, viewing platforms, and museums.

Moscow International Business Center (Moscow City)

Photo by Alex Zarubi on Unsplash

History of Moscow City

Moscow City was first conceived in 1991 by honoured Soviet architect Boris Tkhor, who proposed to construct a business center in Moscow. It would be complete with gleaming skyscrapers rivalling those of New York and London, to reflect the new life and growing ambitions of post-Soviet Russia.

The chosen site was a stone quarry and disused industrial zone in western Moscow, in between the Third Ring Road and Moskva River. Initially, the territory was divided into 20 sections arranged in a horseshoe shape around a central zone. The skyscrapers would increase in height as they spiralled around the central section, with shorter structures built on the waterfront to give the taller buildings behind a view of the river. 

Architect Gennady Sirota, who contributed to iconic projects such as the Olympic Sports Complex on Prospekt Mira, was selected as the chief architect, and many other world-famous architects were attracted to Moscow to realise their visions in Moscow City.

What can you see and do at Moscow City?

Where Moscow’s cityscape was once dominated by Stalin’s Seven Sisters skyscrapers , this is no more. Moscow City is home to eight of Russia’s ten tallest buildings, six of which exceed 300 metres in height. More buildings are still under construction there today, including the One Tower (which will be Europe’s second-tallest building). Once completed, Moscow City will comprise more than 20 innovative structures.

Each of Moscow City’s skyscrapers was designed by its own architect, lending the cluster of skyscrapers a unique appearance. Aside from being a site of architectural wonder, Moscow City is a place for leisure and entertainment with over 100 cafes and restaurants, exhibition spaces, cinemas, viewing platforms, and more.

Photo by Nikita Karimov on Unsplash

Federation Tower

  • East Tower: 374m, 97 floors; West Tower: 243m, 63 floors
  • Completed in 2017
  • Architects: Sergey Tchoban and Peter Schweger

The East Federation Tower is the tallest building in Moscow, and the second-tallest building in Europe after the Lakhta Centre in St Petersburg. Visitors can enjoy a luxurious meal of seafood, truffles or steak at restaurant ‘Sixty’ on the 62nd floor of the West Tower, or visit Europe’s highest observation deck, ‘Panorama 360’, on the 89th floor of the East Tower.

Did you know? The ice cream and chocolate shop on the 360 observation deck are the highest in the world!

  • South Tower: 354m, 85 floors; North Tower: 254m, 49 floors
  • Completed in 2015
  • Architect: Skidmore, Owings & Merrill LLP

The South OKO Tower is the third-tallest building in Russia and Europe. Here, you can visit ‘Ruski’ to dine on hearty Russian cuisine cooked on a real Russian stove, and have a drink in the ice bar. Alternatively, visit restaurant, nightclub and performance space ‘Birds’; the restaurant is the highest in Europe, situated on the 86th floor roof terrace alongside an observation deck. The OKO Towers are also home to karaoke club ‘City Voice’.

Did you know? Underneath OKO Towers is the largest underground parking in Europe, with 16 levels and 3,400 parking spaces.

Mercury Tower

  • 339m tall, 75 floors
  • Architects : Mikhail Posokhin, Frank Williams, Gennady Sirota

Another multifunctional skyscraper, which was designed as the first truly ‘green’ building in Moscow. The Mercury Tower has a distinct geometric shape and copper-coloured glazing, and was the tallest building in Europe upon completion. Visit ‘More i myaso’ (Sea and meat) on the first floor of the tower to enjoy European and Mediterranean cuisine whilst surrounded by greenery. On the 2nd and 40th floors a modern art gallery, the ‘ILONA-K artspace’, has just opened.

City of Capitals

  • Moscow Tower: 302m, 76 floors; St Petersburg Tower: 257m, 65 floors
  • Completed in 2009
  • Architect: Bureau NBBJ

The unique geometric design of the City of Capitals towers resembles stacks of rotating blocks, and is rooted in Constructivism of the early Soviet period (many Soviet Constructivist buildings can be found in Moscow). Visitors to the Moscow Tower can enjoy a range of cuisines – traditional Italian dishes on the summer terrace of ‘Tutto Bene’, Panasian cuisine in the tropical luxury of the ‘Bamboo Bar’ on the 1st floor’, and poke or smoothie bowls at ‘Soul in the Bowl’ cafe on the 80th floor.

Tower on the Embankment

  • Tower A: 84m; Tower B:127m; Tower C: 268m, 61 floors
  • Completed in 2007
  • Architects: Vehbi Inan and Olcay Erturk

After completion, the Tower on the Embankment was the tallest building in Europe, and is now the 13th tallest. It houses the headquarters of several large Russian and international  companies, including IBM and KPMG. There are two cafes located on the 1st floor of Tower C – self-service café ‘Obed Bufet’ (Lunch Buffet) and Bakery Chain ‘Khleb Nasushchny’ (Daily Bread).

Evolution Tower

  • 255m tall, 54 floors
  • Architects: Philip Nikandrov and RMJM Scotland Ltd

Evolution is Moscow City’s most recognisable tower, and the 11th tallest building in Russia. Its façade is a true architectural marvel, comprising continuous strips of curved glazing spiralling high into  the sky. According to the architect, Philip Nikandrov, the spiral shape of the tower honours centuries of architectural design in Russia, from the onion domes of St Basil's Cathedral to Vladimir Shukhov’s Tatlin Tower, a masterpiece of Constructivist design. Outside the Evolution tower is a landscaped terrace and pedestrian zone descending to the Presnenskaya Embankment, which was also designed by Nikandrov.

Did you know? Moscow’s largest wedding palace was supposed to be built on the site of the Evolution tower, though the project was abandoned.

  • 239m tall, 60 floors
  • Completed in 2011

Imperia’s interesting design has a curved roof and an arched glass façade. Inside the tower are various cafes including ‘City Friends’ for all-day breakfasts and light lunches, ‘Mama in the City’ for simple meals of Russian cuisine, and ‘abc kitchen’ for European and Indian-inspired dishes. Alternatively, visit ‘High Bar’ on the 56th floor for cocktails with a view. In Imperia you’ll also find the Museum of High-Rise Construction in Moscow (suitably located on the 56th floor), and the Camera Immersive Theatre.

Did you know? Inside Vystavochnaya metro station is the Metro Museum , dedicated to the history of the beautiful Moscow Metro!

  • 130m tall, 26 floors
  • Completed in 2001
  • Architect: Boris Tkhor

Tower 2000 was Moscow City’s first tower. It stands on the opposite bank of the Moskva River, and houses a viewing platform from which visitors can admire an unparalleled panorama of Moscow City. The Bagration Bridge reaches across the river from the tower to Moscow City, and underneath are piers from where you can take boat trips.

Photo by Alexander Popov on Unsplash

Afimall is Moscow’s largest entertainment and shopping complex, home to 450 shops, cafes and restaurants, a cinema, and a virtual-reality game park. The shopping centre is located in the central section of Moscow City, and a cinema and concert hall are currently under construction there.

What’s nearby?

Sechenov Botanical Gardens: The botanical gardens of the First Moscow State Medical University was created for students’ training and research in 1946. Today it is open for free visits, and is home to a large arboretum.

Park Krasnaya Presnya: This park belonged to the Studenets estate of the Gagarin princes. It is a monument of 18th and 19th century landscaping, with Dutch ponds, ornate bridges, and tree-lined alleys. There are also sports facilities, sports equipment rental, and cafes.

Botanical Gardens

Photo by Akkit  on Wikipedia

Essential information for visitors

Website: https://www.citymoscow.ru/

Email: [email protected]

Phone: +7 (495) 730-23-33

Nearest metro: Mezhdunarodnaya (closest to the skyscrapers), Delovoy Tsentr (underneath Afimall), Vystavochnaya (closest to Expocentre)

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This is our most popular Moscow tour that includes all the most prominent sights. You will become acquainted with ancient Russia in the Kremlin, admire Russian art in the Tretyakov Gallery, listen to street musicians as you stroll along the Old Arbat street, and learn about Soviet times on the Moscow Metro tour.

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Beverage Machine Rental Business Plan

Start your own beverage machine rental business plan

Margarita Momma

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.">.

Margarita Momma is a frozen drink machine rental service. We will specialize in church functions, children and adult birthday parties, weddings, and barbecues. We plan to set up concession services at local and fund-raising events within the Copperas Cove, Ft. Hood, and Killeen areas. The frozen beverage can have alcohol, but is enjoyable without as well. However, if the customers choose to have alcohol in the drinks, they must purchase it, and add it, themselves. This is a unique service for the area; however, frozen drink machine rentals have been growing throughout the nation.

The chosen beverage concentrate has natural flavorings, and few preservatives. This makes the concentrate far superior, both in quality and in taste, to the other brands on the market. We provide a quality far beyond that found at convenience stores which offer frozen drinks.

Margarita Momma will deliver the machine with everything necessary for making the gathering a success. The cart delivery includes: 50 nine-ounce cups, straws, and salt (if needed for margaritas). The only thing the customer must provide is fun! Delivery also includes the mix, and the mixing of the first batch. This is where the customer would provide and add any alcohol to the drinks. The cart is provided by Margarita Momma so there will be easy delivery, as well as to minimize the chance of any furniture damage. The cart has a deep tray which will help contain spills, and to further reduce furniture/carpet damage. Next morning’s pick-up is provided for in the rental cost, and will be performed at a time convenient for the customer.

In order to begin renting, Margarita Momma requires $11,960 to purchase three Frosty Factory machines, ten cases of concentrate, two cases of cups, and two cases of straws.

Beverage machine rental business plan, executive summary chart image

1.1 Objectives

The objectives for this business plan are specific goals which are achievable by Margarita Momma in the first few years of operation. These objectives are outlined below:

  • Sales of $2,000 for each of the first two months, and steady growth continuing for all of Year 1.
  • To increase from three to six machines in Year 1.
  • To go full time within nine months.

1.2 Mission

Margarita Momma will provide the community with an alternative beverage to be served at any event for any age group. We will provide delivery, and complete setup, making the first batch of mix for the customer. Machines will be delivered well in advance of party time so that the mix will be ready. The cost of the rental includes: cups, one mix, salt, straws, and written instructions. Extra mixes can be purchased for an additional charge, at the time of rental; but one mix is sufficient for most events. Pick up the day after will also be provided for the convenience of the customers.

1.3 Keys to Success

The following facets of Margarita Momma ensure its financial success:

  • Unique services, unmatched in both quality and presentation.
  • Low operating overhead.
  • Beneficial word-of-mouth advertising.
  • A healthy, versatile drink which is suitable for all ages.

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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.">.

Margarita Momma is a new company to this area that provides frozen beverage machine rentals to the individual, whether it’s a nonprofit organization or a child’s birthday party. The frozen beverage is versatile; it can be either a slurpee or a frozen cocktail.

2.1 Company Ownership

Margarita Momma will be created as a Sole Proprietorship, owned by its founder, Greta Guidry. The company will be operated from the owner’s home.

2.2 Company Locations and Facilities

This business will be operated out of my residence at (address withheld for sample plan purposes).

2.3 Start-up Summary

Our start-up costs come to $11,960. This number includes three machines, three carts, mix, cups, straws, magnetic sign for delivery vehicle, business cards, and flyers. The details are included in the following table and chart.

Beverage machine rental business plan, company summary chart image

Margarita Momma offers frozen drink machine rentals with complete delivery, setup, and pickup. We will be the first business of its kind in the area.

Product quality will include a large variety of tropical- and regular-flavored syrups. Margarita Momma has pledged to use only the healthiest, freshest ingredients for our frozen drinks. The brand Margarita Man margarita mix has been chosen because it has natural lemon and lime flavors and real lime juice. Extra natural flavoring can be used by adding Triple Sec Liqueur. Very few preservatives are added to enhance the freshness of our product. The result is a unique citrus-fruit-flavored margarita mix that can also be used as an excellent sweet ‘n sour. No other bar mix out there is fruitier. We will grow to include the full line of 11 flavors, mixed to the same standards of quality.

Current concentrate flavors available are:

  • Neutral Base

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

Although the name is Margarita Momma, we want to stress that this service is for everyone who plans a gathering. Every household, business, church, or event is a potential customer. From weddings to barbecues, from Lampasas to Harker Heights, the fun and convenience catches on like wildfire as everyone at the event enjoys a delicious frozen drink.

Some examples of excellent rental/concession opportunities are:

  • Family Reunions

Currently, at these types of events, customers have a choice of purchasing soda or snow cones. And, while delicious in their own right, there is something missing from these two choices. We have an excellent alternative; Margarita Momma will provide a quality beverage, with real fruit flavoring and few preservatives. These drinks are far superior to the taste of a snowcone or a slurpee, and more nutritious than a soda.

4.1 Market Segmentation

Margarita Momma will target all segments of the population–children, teenagers, and adults–through rentals and concession stands at local events. This is truly a beverage people of all ages can enjoy. It is a fun, affordable alternative to the familiar party beverages that are available. Our market segmentation will focus more on areas of service than on potential customers. The only limitation would be how far the company is willing to travel and how much area can be covered through our advertising plans.

Beverage machine rental business plan, market analysis summary chart image

4.2 Market Analysis

Although this is a lucrative business, there are no competitors for Margarita Momma. This is due to the fact that there are no other companies in the targeted area which provide similar services. Margarita Momma has the advantage of being the first to market these services.

4.3 Target Market Segment Strategy

The margarita machine rental business has been EXPLODING in Texas for the last 15 years. Now this fun, profitable business is sweeping the country. In order for Margarita Momma to get a hold of this lucrative service, we must focus on a specific market segment whose needs match our offerings.

The target customer is anyone planning an event and wishing to provide an original beverage alternative for their guests. When the happy guests serve themselves, they think, “What a great idea, I’ll have Margarita Momma bring a machine to my next party.” Each guest is your next potential customer.

4.4 Market Needs

The party products market is popular, and demands quality services. Margarita Momma is able to provide this segment with the products and services it is seeking. The unique nature of a frozen drink machine service demands it be an indispensable part of any celebration or gathering.

The market for party products is growing throughout Texas–as well as the rest of the country. Margarita Momma has the advantage of being an originator in South Central Texas.

4.5 Service Business Analysis

As mentioned in the previous sections, there is no relevant competition for Margarita Momma at this time. This is a novel business in an exciting, expanding new industry; we are set up to reap the benefits of being pioneers within this area of Texas. That is not to say we would be unable to compete with a business offering the same services. We intend to entrench ourselves so fully in the segment, that our customers would never dream of using anyone else for their party needs. We will be the company that a new business will be wary of.

4.5.1 Business Participants

This topic was not included in the original business plan, but is included here as a placeholder for others using this plan as a guide.  Please remember that the default outline is flexible on purpose, because every business plan is unique, so many excellent plans omit topics included in the standard outline and many add additional topics.  The outline is a suggestion, not a checklist.  You can add and delete topics easily.  Make it your plan, not the software’s plan.

4.5.2 Competition and Buying Patterns

4.5.3 distributing a service, 4.5.4 main competitors, strategy and implementation summary.

The beginning operation of Margarita Momma will be basic, with three machines, and three flavors of mix. It is imperative to the success of the company that smart financial decisions are made, and that the business does not expand too quickly; this could result in not having the funds necessary to operate. Flavors, machines, and an expanded service area will be added as they become necessary. This is a process we see as taking place over the first two years of operation. We plan to expand the flavor choice from the basic three to the full eleven that are available. Additional machines will be purchased in order to better serve an ever-expanding customer base. Within two years, we hope to be serving the Kempner, Lampasas, and Belton areas; this will expand our range to almost a fifty-mile service area.

5.1 Strategy Pyramid

5.2 competitive edge.

We start with a critical edge–there is no direct competition at this point, closer than Austin, which is almost one hundred miles away. Available options for this area include: the snow cone trolley, purchasing the separate ingredients and using a blender to make frozen drinks, or canned drinks purchased at retail stores. Fundraising options would be provided by Pepsi and Coca-Cola distributors from the nearby Temple area. These options all pale when compared with the lively taste and nutritious quality of Margarita Momma’s frozen beverages.

Customers will be reached through advertisements such as business cards, flyers, newspaper ads, a website, and through word-of-mouth from satisfied customers. It is our goal to make each occasion the best it can be. By doing our utmost to ensure this, we expect positive feedback from our customers. It is our hope, then, that these satisfied customers will not be stingy with their praise for the company, and spread the word about us.

5.3 Sales Strategy

We will provide first-rate service during each aspect of rental: from time of booking, to setup, and all the way through to pickup. Each member of the Margarita Momma team will be adept at both sales and social skills. It is our goal to be the most friendly, knowledgeable business in the area. This will help Margarita Momma become number one in sales, and it will contribute to remaining number one.

5.3.1 Sales Forecast

The following table and chart give a run-down on forecasted sales.  We expect sales to increase dramatically as name recognition and word-of-mouth advertising grows.

Beverage machine rental business plan, strategy and implementation summary chart image

5.3.2 Sales Programs

5.4 value proposition, 5.5 milestones.

The accompanying table lists important program milestones, with dates and persons in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.

Beverage machine rental business plan, strategy and implementation summary chart image

5.6 Marketing Strategy

5.6.1 marketing programs, 5.6.2 positioning statement, 5.6.3 pricing strategy, 5.6.4 promotion strategy, 5.6.5 distribution strategy, 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.">.

Margarita Momma will be a family-based business. Greta Guidry has worked for the Army Air Force Exchange (AAFES) over the past 18 years in several different positions, from cashier to manager. Through these positions, Greta has gained great knowledge of the service industry, of being an efficient manager, and a feel for stocking and maintaining inventory.

The other members of her team (and family) are experienced sales professionals, and have intimate knowledge of the frozen drink machines being utilized. All family members are committed to the success of Margarita Momma, and have been trained in customer service and sales in order to make this goal a reality.

6.1 Personnel Plan

Greta Guidry, the owner, will conduct daily operations of the business. Steven, Kelley, and Michael Guidry will assist with deliveries and pickups. Because this is a family business, each member of the family has been given responsibilities, and is more than capable of assisting in all parts of the rental process.

6.2 Organizational Structure

6.3 management team, 6.4 management team gaps, financial plan investor-ready personnel plan .">.

We want to finance growth mainly through cash flow. We recognize that this means we will have to grow slowly, adding machines one at a time, not in bulk. The most important indicator in our case is that minimal inventory will have to be stored for these rentals; this translates into very low overhead.

There are some seasonal variations, with the months of March through September being the hottest months in Texas. This will, as expected, mean a high rate of rentals for events such as pool parties, Fourth of July celebrations, and barbecues. However, we expect the winter months to be just as lucrative due to the number of holiday parties, football gatherings, and fundraising events. We expect a light seasonal variation, with sales increasing slightly during the cooler months. For the most part, Margarita Momma will experience a high rate of sales, regardless of weather variations.

7.1 Important Assumptions

The financial assumptions for Margarita Momma are included in the following table.

7.2 Key Financial Indicators

Beverage machine rental business plan, financial plan chart image

7.3 Break-even Analysis

The following table and chart summarize our break-even analysis. With estimated fixed costs as shown in the following table, we need to have 16 rentals by the end of the year to cover our costs.

Beverage machine rental business plan, financial plan chart image

7.4 Projected Profit and Loss

We expect net profits, and gross margins for FY 2001 through FY2003 as shown in the following table.

Beverage machine rental business plan, financial plan chart image

7.5 Projected Cash Flow

The following cash flow projections show the annual amounts only. For a monthly breakdown, please see the appendix at the end of the business plan.

Beverage machine rental business plan, financial plan chart image

7.6 Projected Balance Sheet

The following table represents our financial position at the end of each of the three upcoming fiscal years.

7.7 Business Ratios

The following table shows standard ratios and industry comparison for SIC code 7359, rental businesses.

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Travel Itinerary For One Week in Moscow: The Best of Moscow!

I just got back from one week in Moscow. And, as you might have already guessed, it was a mind-boggling experience. It was not my first trip to the Russian capital. But I hardly ever got enough time to explore this sprawling city. Visiting places for business rarely leaves enough time for sightseeing. I think that if you’ve got one week in Russia, you can also consider splitting your time between its largest cities (i.e. Saint Petersburg ) to get the most out of your trip. Seven days will let you see the majority of the main sights and go beyond just scratching the surface. In this post, I’m going to share with you my idea of the perfect travel itinerary for one week in Moscow.

Moscow is perhaps both the business and cultural hub of Russia. There is a lot more to see here than just the Kremlin and Saint Basil’s Cathedral. Centuries-old churches with onion-shaped domes dotted around the city are in stark contrast with newly completed impressive skyscrapers of Moscow City dominating the skyline. I spent a lot of time thinking about my Moscow itinerary before I left. And this city lived up to all of my expectations.

7-day Moscow itinerary

Travel Itinerary For One Week in Moscow

Day 1 – red square and the kremlin.

Metro Station: Okhotny Ryad on Red Line.

No trip to Moscow would be complete without seeing its main attraction. The Red Square is just a stone’s throw away from several metro stations. It is home to some of the most impressive architectural masterpieces in the city. The first thing you’ll probably notice after entering it and passing vendors selling weird fur hats is the fairytale-like looking Saint Basil’s Cathedral. It was built to commemorate one of the major victories of Ivan the Terrible. I once spent 20 minutes gazing at it, trying to find the perfect angle to snap it. It was easier said than done because of the hordes of locals and tourists.

As you continue strolling around Red Square, there’s no way you can miss Gum. It was widely known as the main department store during the Soviet Era. Now this large (yet historic) shopping mall is filled with expensive boutiques, pricey eateries, etc. During my trip to Moscow, I was on a tight budget. So I only took a retro-style stroll in Gum to get a rare glimpse of a place where Soviet leaders used to grocery shop and buy their stuff. In case you want some modern shopping experience, head to the Okhotny Ryad Shopping Center with stores like New Yorker, Zara, and Adidas.

things to do in Moscow in one week

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To continue this Moscow itinerary, next you may want to go inside the Kremlin walls. This is the center of Russian political power and the president’s official residence. If you’re planning to pay Kremlin a visit do your best to visit Ivan the Great Bell Tower as well. Go there as early as possible to avoid crowds and get an incredible bird’s-eye view. There are a couple of museums that are available during designated visiting hours. Make sure to book your ticket online and avoid lines.

Day 2 – Cathedral of Christ the Saviour, the Tretyakov Gallery, and the Arbat Street

Metro Station: Kropotkinskaya on Red Line

As soon as you start creating a Moscow itinerary for your second day, you’ll discover that there are plenty of metro stations that are much closer to certain sites. Depending on your route, take a closer look at the metro map to pick the closest.

The white marble walls of Christ the Saviour Cathedral are awe-inspiring. As you approach this tallest Orthodox Christian church, you may notice the bronze sculptures, magnificent arches, and cupolas that were created to commemorate Russia’s victory against Napoleon.

travel itinerary for one week in Moscow

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Unfortunately, the current Cathedral is a replica, since original was blown to bits in 1931 by the Soviet government. The new cathedral basically follows the original design, but they have added some new elements such as marble high reliefs.

Home to some precious collection of artworks, in Tretyakov Gallery you can find more than 150,000 of works spanning centuries of artistic endeavor. Originally a privately owned gallery, it now has become one of the largest museums in Russia. The Gallery is often considered essential to visit. But I have encountered a lot of locals who have never been there.

Famous for its souvenirs, musicians, and theaters, Arbat street is among the few in Moscow that were turned into pedestrian zones. Arbat street is usually very busy with tourists and locals alike. My local friend once called it the oldest street in Moscow dating back to 1493. It is a kilometer long walking street filled with fancy gift shops, small cozy restaurants, lots of cute cafes, and street artists. It is closed to any vehicular traffic, so you can easily stroll it with kids.

Day 3 – Moscow River Boat Ride, Poklonnaya Hill Victory Park, the Moscow City

Metro Station: Kievskaya and Park Pobedy on Dark Blue Line / Vystavochnaya on Light Blue Line

Voyaging along the Moscow River is definitely one of the best ways to catch a glimpse of the city and see the attractions from a bit different perspective. Depending on your Moscow itinerary, travel budget and the time of the year, there are various types of boats available. In the summer there is no shortage of boats, and you’ll be spoiled for choice.

exploring Moscow

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If you find yourself in Moscow during the winter months, I’d recommend going with Radisson boat cruise. These are often more expensive (yet comfy). They offer refreshments like tea, coffee, hot chocolate, and, of course, alcoholic drinks. Prices may vary but mostly depend on your food and drink selection. Find their main pier near the opulent Ukraine hotel . The hotel is one of the “Seven Sisters”, so if you’re into the charm of Stalinist architecture don’t miss a chance to stay there.

The area near Poklonnaya Hill has the closest relation to the country’s recent past. The memorial complex was completed in the mid-1990s to commemorate the Victory and WW2 casualties. Also known as the Great Patriotic War Museum, activities here include indoor attractions while the grounds around host an open-air museum with old tanks and other vehicles used on the battlefield.

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The hallmark of the memorial complex and the first thing you see as you exit metro is the statue of Nike mounted to its column. This is a very impressive Obelisk with a statue of Saint George slaying the dragon at its base.

Maybe not as impressive as Shanghai’s Oriental Pearl Tower , the skyscrapers of the Moscow City (otherwise known as Moscow International Business Center) are so drastically different from dull Soviet architecture. With 239 meters and 60 floors, the Empire Tower is the seventh highest building in the business district.

The observation deck occupies 56 floor from where you have some panoramic views of the city. I loved the view in the direction of Moscow State University and Luzhniki stadium as well to the other side with residential quarters. The entrance fee is pricey, but if you’re want to get a bird’s eye view, the skyscraper is one of the best places for doing just that.

Day 4 – VDNKh, Worker and Collective Farm Woman Monument, The Ostankino TV Tower

Metro Station: VDNKh on Orange Line

VDNKh is one of my favorite attractions in Moscow. The weird abbreviation actually stands for Russian vystavka dostizheniy narodnogo khozyaystva (Exhibition of Achievements of the National Economy). With more than 200 buildings and 30 pavilions on the grounds, VDNKh serves as an open-air museum. You can easily spend a full day here since the park occupies a very large area.

Moscow sights

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First, there are pavilions that used to showcase different cultures the USSR was made of. Additionally, there is a number of shopping pavilions, as well as Moskvarium (an Oceanarium) that features a variety of marine species. VDNKh is a popular venue for events and fairs. There is always something going on, so I’d recommend checking their website if you want to see some particular exhibition.

A stone’s throw away from VDNKh there is a very distinctive 25-meters high monument. Originally built in 1937 for the world fair in Paris, the hulking figures of men and women holding a hammer and a sickle represent the Soviet idea of united workers and farmers. It doesn’t take much time to see the monument, but visiting it gives some idea of the Soviet Union’s grandiose aspirations.

I have a thing for tall buildings. So to continue my travel itinerary for one week in Moscow I decided to climb the fourth highest TV tower in the world. This iconic 540m tower is a fixture of the skyline. You can see it virtually from everywhere in Moscow, and this is where you can get the best panoramic views (yep, even better than Empire skyscraper).

top things to do in Moscow

Parts of the floor are made of tempered glass, so it can be quite scary to exit the elevator. But trust me, as you start observing buildings and cars below, you won’t want to leave. There is only a limited number of tickets per day, so you may want to book online. Insider tip: the first tour is cheaper, you can save up to $10 if go there early.

Day 5 – A Tour To Moscow Manor Houses

Metro Station: Kolomenskoye, Tsaritsyno on Dark Green Line / Kuskovo on Purple Line

I love visiting the manor houses and palaces in Moscow. These opulent buildings were generally built to house Russian aristocratic families and monarchs. Houses tend to be rather grand affairs with impressive architecture. And, depending on the whims of the owners, some form of a landscaped garden.

During the early part of the 20th century though, many of Russia’s aristocratic families (including the family of the last emperor) ended up being killed or moving abroad . Their manor houses were nationalized. Some time later (after the fall of the USSR) these were open to the public. It means that today a great many of Moscow’s finest manor houses and palaces are open for touring.

one week Moscow itinerary

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There are 20 manor houses scattered throughout the city and more than 25 in the area around. But not all of them easily accessible and exploring them often takes a lot of time. I’d recommend focusing on three most popular estates in Moscow that are some 30-minute metro ride away from Kremlin.

Sandwiched between the Moscow River and the Andropov Avenue, Kolomenskoye is a UNESCO site that became a public park in the 1920’s. Once a former royal estate, now it is one of the most tranquil parks in the city with gorgeous views. The Ascension Church, The White Column, and the grounds are a truly grand place to visit.

You could easily spend a full day here, exploring a traditional Russian village (that is, in fact, a market), picnicking by the river, enjoying the Eastern Orthodox church architecture, hiking the grounds as well as and wandering the park and gardens with wildflower meadows, apple orchards, and birch and maple groves. The estate museum showcases Russian nature at its finest year-round.

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If my travel itinerary for one week in Moscow was a family tree, Tsaritsyno Park would probably be the crazy uncle that no-one talks about. It’s a large park in the south of the city of mind-boggling proportions, unbelievable in so many ways, and yet most travelers have never heard of it.

The palace was supposed to be a summer home for Empress Catherine the Great. But since the construction didn’t meet with her approval the palace was abandoned. Since the early 1990’s the palace, the pond, and the grounds have been undergoing renovations. The entire complex is now looking brighter and more elaborately decorated than at possibly any other time during its history. Like most parks in Moscow, you can visit Tsaritsyno free of charge, but there is a small fee if you want to visit the palace.

Moscow itinerary

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Last, but by no means least on my Moscow itinerary is Kuskovo Park . This is definitely an off-the-beaten-path place. While it is not easily accessible, you will be rewarded with a lack of crowds. This 18th-century summer country house of the Sheremetev family was one of the first summer country estates of the Russian nobility. And when you visit you’ll quickly realize why locals love this park.

Like many other estates, Kuskovo has just been renovated. So there are lovely French formal garden, a grotto, and the Dutch house to explore. Make sure to plan your itinerary well because the estate is some way from a metro station.

Day 6 – Explore the Golden Ring

Creating the Moscow itinerary may keep you busy for days with the seemingly endless amount of things to do. Visiting the so-called Golden Ring is like stepping back in time. Golden Ring is a “theme route” devised by promotion-minded journalist and writer Yuri Bychkov.

Having started in Moscow the route will take you through a number of historical cities. It now includes Suzdal, Vladimir, Kostroma, Yaroslavl and Sergiev Posad. All these awe-inspiring towns have their own smaller kremlins and feature dramatic churches with onion-shaped domes, tranquil residential areas, and other architectural landmarks.

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I only visited two out of eight cities included on the route. It is a no-brainer that Sergiev Posad is the nearest and the easiest city to see on a day trip from Moscow. That being said, you can explore its main attractions in just one day. Located some 70 km north-east of the Russian capital, this tiny and overlooked town is home to Trinity Lavra of St. Sergius, UNESCO Site.

things to do in Moscow in seven days

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Sergiev Posad is often described as being at the heart of Russian spiritual life. So it is uncommon to see the crowds of Russian pilgrims showing a deep reverence for their religion. If you’re traveling independently and using public transport, you can reach Sergiev Posad by bus (departs from VDNKh) or by suburban commuter train from Yaroslavskaya Railway Station (Bahnhof). It takes about one and a half hours to reach the town.

Trinity Lavra of St. Sergius is a great place to get a glimpse of filling and warming Russian lunch, specifically at the “ Gostevaya Izba ” restaurant. Try the duck breast, hearty potato and vegetables, and the awesome Napoleon cake.

Day 7 – Gorky Park, Izmailovo Kremlin, Patriarch’s Ponds

Metro Station: Park Kultury or Oktyabrskaya on Circle Line / Partizanskaya on Dark Blue Line / Pushkinskaya on Dark Green Line

Gorky Park is in the heart of Moscow. It offers many different types of outdoor activities, such as dancing, cycling, skateboarding, walking, jogging, and anything else you can do in a park. Named after Maxim Gorky, this sprawling and lovely park is where locals go on a picnic, relax and enjoy free yoga classes. It’s a popular place to bike around, and there is a Muzeon Art Park not far from here. A dynamic location with a younger vibe. There is also a pier, so you can take a cruise along the river too.

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The Kremlin in Izmailovo is by no means like the one you can find near the Red Square. Originally built for decorative purposes, it now features the Vernissage flea market and a number of frequent fairs, exhibitions, and conferences. Every weekend, there’s a giant flea market in Izmailovo, where dozens of stalls sell Soviet propaganda crap, Russian nesting dolls, vinyl records, jewelry and just about any object you can imagine. Go early in the morning if you want to beat the crowds.

All the Bulgakov’s fans should pay a visit to Patriarch’s Ponds (yup, that is plural). With a lovely small city park and the only one (!) pond in the middle, the location is where the opening scene of Bulgakov’s novel Master and Margarita was set. The novel is centered around a visit by Devil to the atheistic Soviet Union is considered by many critics to be one of the best novels of the 20th century. I spent great two hours strolling the nearby streets and having lunch in the hipster cafe.

Conclusion and Recommendations

To conclude, Moscow is a safe city to visit. I have never had a problem with getting around and most locals are really friendly once they know you’re a foreigner. Moscow has undergone some serious reconstruction over the last few years. So you can expect some places to be completely different. I hope my one week Moscow itinerary was helpful! If you have less time, say 4 days or 5 days, I would cut out day 6 and day 7. You could save the Golden Ring for a separate trip entirely as there’s lots to see!

What are your thoughts on this one week Moscow itinerary? Are you excited about your first time in the city? Let me know in the comments below!

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24 comments.

machine rental business plan

Ann Snook-Moreau

Moscow looks so beautiful and historic! Thanks for including public transit information for those of us who don’t like to rent cars.

machine rental business plan

MindTheTravel

Yup, that is me 🙂 Rarely rent + stick to the metro = Full wallet!

machine rental business plan

Mariella Blago

Looks like you had loads of fun! Well done. Also great value post for travel lovers.

Thanks, Mariella!

machine rental business plan

I have always wanted to go to Russia, especially Moscow. These sights look absolutely beautiful to see and there is so much history there!

Agree! Moscow is a thousand-year-old city and there is definitely something for everyone.

machine rental business plan

Tara Pittman

Those are amazing buildings. Looks like a place that would be amazing to visit.

machine rental business plan

Adriana Lopez

Never been to Moscow or Russia but my family has. Many great spots and a lot of culture. Your itinerary sounds fantastic and covers a lot despite it is only a short period of time.

What was their favourite thing about Russia?

machine rental business plan

Gladys Parker

I know very little about Moscow or Russia for the\at matter. I do know I would have to see the Red Square and all of its exquisite architectural masterpieces. Also the CATHEDRAL OF CHRIST THE SAVIOUR. Thanks for shedding some light on visiting Moscow.

Thanks for swinging by! The Red Square is a great starting point, but there way too many places and things to discover aside from it!

machine rental business plan

Ruthy @ Percolate Kitchen

You are making me so jealous!! I’ve always wanted to see Russia.

machine rental business plan

Moscow is in my bucket list, I don’t know when I can visit there, your post is really useful. As a culture rich place we need to spend at least week.

machine rental business plan

DANA GUTKOWSKI

Looks like you had a great trip! Thanks for all the great info! I’ve never been in to Russia, but this post makes me wanna go now!

machine rental business plan

Wow this is amazing! Moscow is on my bucket list – such an amazing place to visit I can imagine! I can’t wait to go there one day!

machine rental business plan

The building on the second picture looks familiar. I keep seeing that on TV.

machine rental business plan

Reesa Lewandowski

What beautiful moments! I always wish I had the personality to travel more like this!

machine rental business plan

Perfect itinerary for spending a week in Moscow! So many places to visit and it looks like you had a wonderful time. I would love to climb that tower. The views I am sure must have been amazing!

I was lucky enough to see the skyline of Moscow from this TV Tower and it is definitely mind-blowing.

machine rental business plan

Chelsea Pearl

Moscow is definitely up there on my travel bucket list. So much history and iconic architecture!

Thumbs up! 🙂

machine rental business plan

Blair Villanueva

OMG I dream to visit Moscow someday! Hope the visa processing would be okay (and become more affordable) so I could pursue my dream trip!

Yup, visa processing is the major downside! Agree! Time and the money consuming process…

Save my name, email, and website in this browser for the next time I comment.

machine rental business plan

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How Profitable are Heavy Equipment Rental Businesses?

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  • February 22, 2023

machine rental business plan

👇 Check all our resources on Equipment rental businesses 👇

If you are planning to start an equipment rental business , you may want to know how much profits you can make with this business. In other words, you must know how much revenue you must generate to reach break-even and make profits.

With a market size of $52 billion and over 5,900 businesses in the US, the average heavy equipment rental company has an annual turnover of $8,800,000..!

What does this mean for your business? How much revenues can you expect to generate? More importantly: how much profits can you realistically make with a heavy equipment rental business?

In this article we’ll look into the average revenues and profit margins of equipment rental companies in the US. We’ll also look into how you can accurately forecast your turnover and break-even point. Let’s dive in!

What is the average turnover for an equipment rental business?

As discussed in the introduction, with 5,973 businesses in the US and a total market size of $52 billion, the average heavy equipment rental business generates sales of about $8.8 million per year .

When it comes to owners’ pay, the average salary for the owner of a heavy equipment rental business in the US is $110,377 per year .

machine rental business plan

Equipment Rental Financial Model

Download an expert-built 5-year Excel financial model for your business plan

What is the average profit margin for an equipment rental business?

Calculating the average profit margin for an equipment rental business is difficult because it depends on type of rental business you are into.

For instance, small equipment businesses typically have higher margins: the gross profit margin for cycles can be as high as 70% for example. Instead, heavy construction and other equipment companies have gross margins of about 40% and net profit margins around 15-20% .

How much does it cost to run an equipment rental business?

In addition to startup costs , there are certain recurring costs involved in running an equipment rental business and they include:

  • Rent : You need to pay rent for the warehouse where you will store your equipment
  • Fleet maintenance : You need to spend a significant amount of money at regular intervals to maintain your fleet and keep them service-ready
  • Staff costs : You need to pay salary to your staff
  • Marketing costs : You must increase visibility of your business through advertisements and other marketing channels
  • Utility bills : You must pay for electricity, water, gas, internet, etc., that you will use to run your business effectively

In general, you will be spending anywhere between $108,000 and $121,000 each month to run a heavy equipment rental company in the US with 35 heavy construction vehicles .

See below the example of a sales to net profit cost breakdown for a heavy construction business with $3,000,000 sales per year (~10% net profit).

As you can see, D&A expenses are with salaries the most important expense category for such businesses. It doesn’t mean these businesses generates high cash flow either: they most likely use the vast majority of this cash to repay the loan they took to acquire the machines and vehicles.

machine rental business plan

How to forecast profits for an equipment rental business?

In order to calculate profits for an equipment rental company, you must first forecast revenues and expenses .

Profits = Revenue – Expenses

Forecasting revenue for equipment rental businesses

Forecasting sales for such a business requires a few assumptions:

  • the number of vehicles (or equipment)
  • the average price per rental
  • the utilization rate (how often a vehicle is rented)

For example, we can forecast the turnover of a heavy construction rental business as follows:

Revenue = Vehicles x Utilization rate x Average price per rental

For example, if you have 35 vehicles, used 50% of the time and at a rate of $10,000 per month per vehicle, monthly revenue is ~$175,000.

Forecasting expenses for equipment rental businesses

There are 2 types of expenses for a equipment rental business:

  • Variable expenses : these are the COGS as explained earlier. They grow in line with your revenue: if your turnover increases by 10%, variable expenses grow by 10% as well
  • Fixed expenses : salaries, rent, debt interest (or leasing) costs to acquire the equipment, marketing and all the other operating costs listed above

Calculating profits for equipment rental businesses

When we refer to profits, we usually refer to EBITDA (Earnings before interests, taxes, depreciation and amortization) as it represents the core profitability of the business, excluding things such as debt interests, non cash expenses and other non-core expenses.

In order to get to EBITDA, we use the following formula:

EBITDA = Revenue – COGS – Operating Expenses

We’ve included below the illustrative profit-and-loss of a heavy construction rental business (from our financial model template for equipment rental businesses ).

Whilst EBITDA margin is about 30-40% at scale depending on the business, net profit margin can go up to 10-20% for the most profitable businesses (in line with the industry averages discussed above).

machine rental business plan

How to calculate break-even for an equipment rental business?

Break-even is the point at which total costs and total revenue are equal. In other words, the breakeven point is the amount of revenue you must generate to turn a profit.

Because you must at least cover all fixed costs (that aren’t a function of revenue) to turn a profit, the break-even point is at least superior to the sum of your fixed costs .

Yet, you also need to spend a certain amount for every $1 of sales to pay for the variable costs.

As we just saw, equipment rental businesses typically have a ~90% gross margins. Indeed, most expenses actually are fixed costs (salaries, D&A, marketing, etc.).

The break-even point can easily be obtained by using the following formula:

Break-even point = Fixed costs / Gross margin

Using the same example earlier, let’s assume your business makes $175,000 in turnover per month and has the following cost structure :

The break-even point would then be:

Break-even point = Fixed costs / Gross margin %

= $138,000 / 90% = $153,00 0

In other words, you need to make at least $153,000 in sales per month to turn a profit. Assuming the average price per rental is $10,000 a month, your break-even is 16 rentals per month. In other words, you make profits once you reach ~45% utilization rate (16 vehicles leased vs. 35 available).

How to increase profits for an equipment rental business?

There are various strategies to increase the profits of an equipment rental business such as:

  • Stay up to date : Markets change as technologies evolve. Stay updated with recent changes in technologies, changes in customer demands, how much your customers are willing to pay, etc. Staying updated can help you to tweak your business operations to increase profits
  • Prevent capital wastage : Don’t buy extra equipment unnecessary. If there is no demand, they will collect dust. Only when you know that there is a steady and constant increase in demand, invest in extra equipment
  • Equipment maintenance : Spend well on maintaining your equipment. If they tend to fail during jobs, you will lose customers
  • Go online : Maintain an online presence and register your business with Google My Business to ensure that potential customers can find you easily. Spend on digital advertising (social media, search engine, etc.) to increase brand awareness
  • Equipment rental software : This will help to streamline your operations, schedule maintenance, track your equipment, etc. Increased efficiency reduces operational expenses and increases profits
  • Payment options : Junk the old payment system and integrate multiple modern payment methods to help customers easily pay. Also, modern automatic payment systems help to keep a track of your finances
  • Structured customer data : Use structured customer data to understand their requirement and preferences. Using advanced booking software help you to notify relevant customers about new arrivals, discounts, etc.

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Moscow-City – The Moscow International Business Center

  • 3 years ago

The Moscow Intenational Business Center

Moscow-City is an iconic location for life and work in Russia’s capital. Enormous skyscrapers, business centers, the best restaurants and retail spaces – all this is concentrated in one place. The ultramodern Moscow-City towers are truly striking in their outward appearance, and the layout of the apartments inside and the fantastic views that can be seen from the higher floors are nothing short of impressive.

This skyscraper compound, often referred to as Moskva-City, is the Russian take on Manhattan, where businessmen strike multi-million dollar deals daily while ordinary life goes on next door. Its state of the art spaces offer the ultimate convenience. The infrastructure of this business district is so well-developed that anyone can find something interesting for themselves here: from residential apartments to boutiques, clubs, exhibitions and more.

When the foundations for the Moscow-City skyscrapers were laid, a special kind of concrete was used, the properties of which are amplified by many times compared to standard concrete. Even in the event of a plane crashing into one of the buildings, the structural integrity of the towers will be preserved.

The architects of the Moscow-City Business Center have created a unique locality that has integrated into itself the hub of the capital’s business life and a whole ensemble of historical monuments. Anyone can admire the beauty of these skyscrapers from within or without the compound. There are also a number of apartments for sale or rent available in the MIBC itself. But first, let’s have a look at some more interesting facts about the financial core of Russia’s capital.

  • 1 How It All Began
  • 2.1 Moscow-City Central Core
  • 2.2 Tower 2000
  • 2.3 Evolution Tower
  • 2.4 Imperia Tower
  • 2.5 Moscow Tower and St. Petersburg Tower
  • 2.6 Steel Peak Tower
  • 2.7 Federation Tower
  • 2.8 Mercury City Tower
  • 2.9 OKO Tower Complex
  • 3.1 Afimall City Shopping Center
  • 3.2 Bagration Bridge
  • 3.3 Expocentre Fairgrounds
  • 4 Renting and Buying Real Estate in Moscow-City

How It All Began

The history of Moscow-City goes all the way back to 1992. The government of Moscow at the time wanted to bring into existence its own skyscrapers like the ones in London or New York. And the idea caught on. In 1992 the project for the construction of the huge “Moscow-City” MIBC compound was enthusiastically approved, kick-starting the painstaking preparatory works. The original intention was that the skyscrapers would only house office space. However, as time went on, the towers began to welcome in ordinary residents who wanted to live on the territory of this business and finance hub.

Moscow-City is undoubtedly a city within a city. Its grandeur is mind-boggling. It is perfect in every way: from location to infrastructure. And today, anyone can get a feel of the atmosphere of the “capital city” of Russia’s business world – many of the apartments in Moscow-City are available for rent. Any citizen of Russia and even nationals of other countries can make use of these offers.

What It’s Like in 2021

Today Moscow-City is not just a magnificent and fascinating sight, but also a real hub for the work, life and leisure of thousands. Its infrastructure is organized in such a way that there is no need to leave the territory of the “city within a city” at all. This business district contains everything one may need for work and recreation. And if one does decide to venture out into the larger metropolis, the MIBC’s three subway stations make this remarkably simple to do.

Moscow-City stands on the Presnenskaya Embankment . Each of the buildings in the district has a name, which simplifies its identification. Some of the buildings form complexes that are united under one name, such as the Neva Towers and the Naberezhnaya Tower complex of two skyscrapers and one high rise. There are a total of 16 towers in the MIBC, of which the most popular are:

  • Moscow-City Central Core;
  • Tower 2000;
  • Evolution Tower;
  • Imperia Tower;
  • City of Capitals (Moscow Tower and St. Petersburg Tower);
  • Steel Peak Tower;
  • Federation Tower;
  • Mercury City Tower;
  • OKO Tower Complex.

Moscow-City Central Core

This is the most complex building within the MIBC compound. Its total floor area is a whopping 1 476 378 sqft (450 000 m²). It consists of two massive parts, each of which boasts a truly impressive infrastructure. The underground part includes 3 Moscow Metro stations, a parking lot for automobiles and a shopping mall. The aboveground part houses a concert hall and a hotel.

Tower 2000 is a skyscraper having 34 stories. Its total floor area is 200 318 sqft (61 057 m²), most of which is office space. The key feature of this skyscraper is its direct connection to the Bagration Bridge, which has its own shopping arcade. The tower has everything one may need while working here, including a large parking lot and several restaurants.

Evolution Tower

This elegant structure is 836 feet (255 m) high – that’s a whole 54 stories! The total floor area here is 554 462 sqft (169 000 m²). The Evolution Tower’s key feature is that it has its own Wedding Hall. This skyscraper houses large office spaces, a parking lot and several restaurants.

Imperia Tower

MIBC’s Imperia Tower is the undeniable focal point of the MIBC’s business life. Its height is 784 feet (239 m), which means one can hold conferences and resolve key business matters on the 59 th floor! And that really is amazing! The tower has everything: offices, hotels, restaurants and parking lots. But if you want a truly unforgettable experience, visit the viewing platform! It is situated on the 58 th floor and a simply astounding view of Moscow can be seen from it.

Moscow Tower and St. Petersburg Tower

The Moscow and St. Petersburg Towers are the chief representatives of the MIBC. The Moscow Tower has 76 stories and is 990 feet (302 m) high, while the St. Petersburg Tower has 65 stories and stands 843 feet (257 m) tall. Both towers offer fantastic views of the capital city.

Most of the floors of these two skyscrapers are taken up by luxurious sky apartments. There are also several recreational and entertainment centers, office spaces, restaurants, etc.

Steel Peak Tower

Also known as the Eurasia Tower of Moscow-City, this supertall skyscraper has a total of 680 912 sqft (207 542 m²) of floor space. Most of this is taken up by offices, and the rest – by residential quarters (around 65 616 sqft or 20 000 m²). The tower also houses a number of the greatest restaurants, studios and shopping centers.

Federation Tower

The Federation Tower is a complex of two skyscrapers, known as Tower East and Tower West. Tower East is the second highest building in Europe (the first is a skyscraper recently erected in the city of St. Petersburg). Its height is a colossal 1 223 feet (373 m) and that makes 95 stories! Tower West, on the other hand, is noticeably shorter at 794 feet (242 m).

The Federation Tower is a multifunctional complex.

Mercury City Tower

The Mercury City Tower skyscraper is widely known as one of the tallest buildings in Europe. Its height is 1 112 feet (339 m) and it has 75 stories. It is multifunctional by concept, holding within its walls shopping centers, offices and all kinds of other spaces. It is also possible to rent apartments here.

OKO Tower Complex

The OKO Tower Complex consists of two towers – the North Tower (49 stories and 803 ft or 245 m in height) and the South Tower (85 stories and 1 155 ft or 352 m in height).

Each of the MIBC’s tower complexes has its own recreational and entertainment areas, restaurants and parking lots. The top floors of most of these buildings contain luxurious fully-furnished apartments. At night, the towers shine with bright lights, while inside them the panoramic windows reveal astounding views of Moscow. This breathtaking view of the capital of Russia is why visiting Moscow-City is a must!

What Not to Miss

There are many interesting landmarks within the Moscow-City compound, but three of them are truly deserving of special attention:

  • The Afimall City Shopping Center;
  • The Bagration Bridge with two galleries and a shopping arcade;
  • The Expocentre Fairgrounds.

Afimall City Shopping Center

The Afimall City Shopping and Entertainment Center is located in Moscow-City’s Central Core. It is divided into 4 zones, each with its own theme – one for every season of the year. The shopping center houses the biggest indoor fountain found worldwide. The height of this watery wonder is 118 feet or 36 meters.

The shopping and entertainment center contains everything one might expect from one of the largest centers of its kind:

  • Retail brand stores;
  • Exhibitions;
  • Game rooms;
  • and Restaurants.

The main recreational space is roofed with a giant transparent dome, which is an impressive sight to behold.

Bagration Bridge

Bagration Bridge with its upper and lower galleries has a shopping center all of its own and was the first structure to be built as part of the Moscow-City business district. Its lower gallery is a shopping arcade and its upper gallery is an open-air viewing platform with a spectacular view of the MIBC and the Moskva River. The hall of the bridge houses the 23 foot tall sculpture called “Tree of Life”. Having gone through the bridge via either one of its two galleries, a pedestrian would find themselves standing right on the Kutuzovsky Prospekt.

Expocentre Fairgrounds

The Expocentre Fairgrounds exhibition venue is located at the very heart of the capital. The first exhibition held at the Expocentre happened all the way back in 1959, much earlier than the MIBC was erected. Today it is the venue of many interesting events.

Exhibitions with very diverse themes are regularly held at this complex. An up-to-date schedule can be found on the official webpage of the Expocentre. The events can be free or fixed-price entry, depending on their type.

Renting and Buying Real Estate in Moscow-City

Moscow-City is not only a work and business hub, but also a residential neighborhood. Any citizen of Russia can rent or buy apartments or elite sky lounges here. The variety of residential real estate available inside the skyscrapers is impressive, including options for any pocket. The following buildings in the MIBC contain residential blocks:

This skyscraper has a mirror glass façade which reflects the passing clouds. Just imagine how beautiful that looks! Anyone can buy an apartment in the Federation Tower. Such properties are not only a good investment, but also a mark of prestige. The average price of residential real estate here is 45 million rubles for an apartment with a total floor area of 334 sqft (102 m²). The average price of a square meter (3.28 square feet) is in the range of 650 to 700 thousand rubles. There are two- and three-room apartments available in the Federation Tower, each with its own loggia. As for rent, the minimum price of one month’s stay in a three-room apartment in this skyscraper is 300 000 rubles per month.

The Mercury City Tower skyscraper welcomes citizens from all parts of Russia. This building is no less tall than the world-famous Dubai skyscrapers. Living in its apartments is a delight. The minimum cost of an apartment in the Mercury City Tower is 75 million rubles. The average price of a square meter (3.28 square feet) is 800 thousand rubles. And for those looking for a lower price point, some of the properties are also available for rent – in this case you will pay a minimum of 250 thousand rubles per month.

The Imperia Tower is a key cluster of interesting offers. The best options for buying and renting apartments within the MIBC can all be found in this skyscraper. The lowest price of a residential apartment here is 40 million rubles. A square meter (3.28 square feet) in a luxurious apartment in the Imperia Tower currently costs 600 thousand rubles, while the price range of the listings available for rent in this skyscraper is from 350 thousand all the way up to 1 million rubles per month.

This complex, standing on a faceted or “crystal” base, is an architectural engineering project boasting spectacular design. Behind its impressive façades is an abundance of penthouses and apartments having floor areas in the range of 262 sqft (80 m²) to 984 sqft (300 m²). The minimum price of an apartment in the OKO Tower Complex is 40 million rubles (the price of a square meter (3.28 square feet) is 500 thousand rubles). You can rent an apartment here starting from 400 thousand rubles per month.

City of Capitals

The City of Capitals is an exemplary architectural complex. Its sum appearance gives the impression of a huge city. Inside its walls are spacious apartments available for purchase and rent. This complex is considered to be especially prestigious. The prices of apartments here start from 50 million rubles, while the minimum cost of renting is 400 thousand rubles per month.

Please note! The price of real estate available for purchase or rent depends on: the tower, the floor, the total floor area, the furnishings and/or interior design, and other factors.

The key advantages of buying/purchasing real estate in Moscow-City are:

  • Favorable location;
  • Convenient transportation links;
  • Well-developed infrastructure;
  • High safety level;
  • Efficient architecture;
  • Panoramic windows.

Buying real estate in Moscow-City is very much a rational decision, most appealing to those who value the ultimate level of comfort. The residential apartments here boast impressive interior design solutions executed in the contemporary style.

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Intuitive Machines stock has more than tripled. How Wall Street reads the moon-fueled rally

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  • In a little over a month since hitting all-time lows, and as its IM-1 mission made its way to the lunar surface, shares of Intuitive Machines climbed more than 300% since early January.
  • It's a rally that Wall Street analysts describe as fueled by retail investors' excitement for the space company's progress toward an unprecedented goal.

"We've never witnessed a publicly traded company go through [a moon landing attempt]. So this is new, not just for investors, but for us analysts as well," Cantor Fitzgerald's Andres Sheppard told CNBC.

In this article

Much like Intuitive Machines' spacecraft, its stock has been flying to the moon the past week.

In a little over a month since hitting all-time lows, and as its IM-1 mission made its way to the lunar surface , shares of Intuitive Machines have more than tripled since early January. It's a rally that Wall Street analysts describe as fueled by retail investors' excitement for the space company's progress toward an unprecedented goal.

The Texas-based lunar company's stock, with the apt ticker of "LUNR," now trades for about $8 per share as of Thursday's close, a far cry from January lows of closer to $2. At one point this week, as IM-1 progressed through milestones ahead of its landing attempt — the stock reached over $13 in trading.

In the moments after the lander, named "Odysseus" after the figure in Greek mythology, successfully touched down on the moon's surface , the stock surged once again.

Sheppard compared Intuitive Machine's landing to a biotech company waiting on a FDA approval for a new drug: "It's a bit of a binary outcome," Sheppard said.

While Sheppard expected Intuitive's stock price to climb after a successful landing, potentially as high as $15 a share, he cautioned "that valuation is certainly ahead of the company's financials" — as "people are getting caught up" in the excitement and history of IM-1 landing on the moon, he said.

Intuitive went public via a SPAC merger less than a year ago, and has spent most of that time trading below its debut pricing. Only a handful of Wall Street analysts cover the $1 billion space company. Of the firms listed by FactSet as covering Intuitive Machines, all four analysts have buy equivalent ratings on the stock – and all four have seen the stock blow past their pre-launch price targets.

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Beyond the technological and financial progress IM-1 represents for Intuitive Machines, analysts pointed to the enthusiasm for the first U.S. landing on the moon in over 50 years, as well as the first by a corporate entity, rather than a government agency.

"We get to see how these applications in space can capture the imagination and vision of investors … hopefully it is successful, as I think that will do a lot for the space industry as a whole," Benchmark analyst Josh Sullivan told CNBC prior to the lunar landing.

Along with Canaccord Genuity analyst Austin Moeller, Sullivan and Sheppard were unanimous in their reads that retail, not institutional, investors are driving the current Intuitive Machines' rally. Sheppard said his firm estimates about 80% of trading over the past week was done by retail traders.

"There's huge momentum being driven by the retail community behind this," Sheppard said.

Sullivan also cited the global news coverage of Intuitive's mission as another driver, giving the company a wider exposure.

"The successful milestones are adding up to a point where [a moon company] is becoming a commercial reality, and I think that's starting to catch on," Sullivan said.

Passing milestones

IM-1 made steady progress through the 16 milestones the company outlined before the launch. Yet Intuitive is not just clearing the technological hurdles that come with a first spaceflight, but also checking boxes to get paid by its biggest customer.

The mission is under an $118 million contract with NASA, with necessary milestones for payment. But, as Sullivan noted, IM-1 represents more than just getting paid for an existing contract.

"It is really about proving a track record of success in the very harsh environment of space, so that in the future when they're going to NASA … the likelihood of them winning those very large contracts increases pretty substantially," Sullivan said.

A key element of NASA's Commercial Lunar Payload Services (CLPS) program is the competitive nature between companies bidding to deliver cargo on future moon missions. One of Intuitive Machines' competitors, Astrobotic, had a crippling problem during its inaugural moon mission last month that kept the company from attempting a landing.

Both companies, as well as others, have already won NASA contracts for additional missions. Analysts see Intuitive's progress thus far as a key differentiator in future bids.

Here's why the U.S., China, India, Japan and others are rushing back to the moon

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