Construction rental business (+ any women here)?

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forklift_girl

New member
Hi everyone,
I am looking into starting a rental business for construction equipment (forklift, cranes, etc). Based in London but realise this will need to be done outside London. Have sufficient startup capital so the first few items of equipment can be bought outright in cash, so no bank loan needed, I think probably up to an initial outlay of about 40-50k. The idea will be to rent them to SMEs or larger companies who need them for a day/week etc. I know several other factors need to be considered - storage, parking, insurance, maintenance, etc. To be clear, I will NOT be operating these vehicles myself, we would either need to hire operates or provide them on an equipment only basis to the end users.

What is your opinion on starting this type of business? Is it lucrative enough to take off? Any tips on which items of equipment will provide the most lucrative returns at the moment? Has anyone else done this or is everybody on this site operating their own machinery?

Also, are there any women on this forum, or am I the only one?!?🤣🙃
 
V8Druid

V8Druid

do it as well as you can,but learn to do it better
Hi everyone,
I am looking into starting a rental business for construction equipment (forklift, cranes, etc). Based in London but realise this will need to be done outside London. Have sufficient startup capital so the first few items of equipment can be bought outright in cash, so no bank loan needed, I think probably up to an initial outlay of about 40-50k. The idea will be to rent them to SMEs or larger companies who need them for a day/week etc. I know several other factors need to be considered - storage, parking, insurance, maintenance, etc. To be clear, I will NOT be operating these vehicles myself, we would either need to hire operates or provide them on an equipment only basis to the end users.

What is your opinion on starting this type of business? Is it lucrative enough to take off? Any tips on which items of equipment will provide the most lucrative returns at the moment? Has anyone else done this or is everybody on this site operating their own machinery?

Also, are there any women on this forum, or am I the only one?!?🤣🙃
firstly welcome (y)
you may be the first ..... there was duckgirl on the old CEF, but she never stuck her head above the parapet (I suspect it was Amie Pooley .. very well known and respected operator on ducks - currently working in Sweden IIRC), so surprised she never posted, as Amie ain't shy :giggle:

as for the body of your post .... 40 - 50k is not going to buy you much in the way of gear . Secondly, you're going to be up against the big players who virtually give stuff away to keep it out there ..... plenty of commentary here and everywhere else about how the hell they make it worthwhile ??? Think you would need to be 'niche', offering something hard to find, 'praps?
what is your current work/biz/whatever .... any experience in the field you're proposing?
You'll need a heart of stone to hire your precious gear out to ppl who's attitude generally is it's hired so who cares and collecting damage charges is a hard job.
you suggest FLTs and cranes -- lifting .. needs tickets, inspections, insurance and no way would I let anyone but my own operators into a crane (I used to run a small fleet) .. they're not a self drive item ..... FLTs to a lesser degree, but as easily wrecked / turned over, in the wrong hands ... and FLT tickets're ten a penny/back of cornflakes box ..... MUCH harder to get a crane ticket (and keep it)
you've mentioned storage, etc. .... you'd also need transport - not cheap and london is the toughest place in the UK to run transport about in.

TBH ..... I'd hang on to your cash ... for when it's needed .. some pretty cool finance deals about ATM

I'm sure the rest of the guys'll be along with more input ... TTFN
 
J

Jimoz

Well-known member
I'd be trying to find some kind of USP before biting the bullet. Its a pretty crowded market. Having said that whatever you buy, Outright or on tik, should hold it's value at the present time.
 
L

Lynchy

Well-known member
Why?are you currently involved in running a business?
The money won't buy anything,while some finance deals might be available,to established budiness',at the moment banks aren't even opening new business accounts,never mind lending money to folk fresh in off the street ,on a business basis.
London sites in general require new gear,you've no chance with cranes,small fork lift area mostly tied up by rental ,finance firms,site telehandlers,few large players,couple of specialist forms for rotary's,A small firm starting off these days needs just as much paperwork as the big boys,as for collecting money.....good luck
 
Giles

Giles

Well-known member
Got to be small and unique won’t compete against the fleets of 10,000 telehandlers

something like avant loaders for narrow sites or those tracked bag carries that also lift steels in

or the American concrete buggies
 

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Lancs Lad

Lancs Lad

Well-known member
Got to be small and unique won’t compete against the fleets of 10,000 telehandlers

something like avant loaders for narrow sites or those tracked bag carries that also lift steels in

or the American concrete buggies
Been on here before about hooka loaders etc. Niche if you can make it is probably only way to go..
 
JD450A

JD450A

Feral as Fk
Firstly R.e girls on the forum, yes we have had many but unfortunately they all turned out to be foreign people trying to sell things (mostly crap)

You unfortunately aren't going to earn your fortune organising work for other people to do. Certainly not with a 50k start up.
 
craig

craig

Well-known member
The Hooka @Giles and @Lancs Lad mentioned, a (long established) plant hire firm near here has started doing them, they must see a market for them?
The avant type machines could have a market, but would need a big range of attachments to offer, to suit the many different types of user.
 
F

forklift_girl

New member
Hi everyone, thanks for your replies. Very useful information and lots to think about. I don't have a background in construction, unsurprisingly.
If you had startup capital of 50k, what would you do to grow it?!
 
Regy53

Regy53

Administrator
you can do something with 50k but it probably isn't as easy as just hiring to small sme's etc... Plus operators let you down with that you need to be a master of your destiny. Niche hire certainly can work but its hit and miss
 
Quattromike

Quattromike

Well member-known
It appears if you are looking to make money from the things people can't afford to own for themselves then you need a huge capital to make it pay. If it's feasible to get the plant on a finance deal then most folk will just do that for themselves and cut you out of the equation. If you are looking to offer this service to them that can't get finance for the plant then do so at your own pearl as they most likely won't stick to the agreement .
 
doobin

doobin

Well-known member
Hi everyone, thanks for your replies. Very useful information and lots to think about. I don't have a background in construction, unsurprisingly.
If you had startup capital of 50k, what would you do to grow it?!
Where did this startup capital of 50k come from? Not a bounce back loan was it? :ROFLMAO:
 
B

Brendan

Well-known member
A few things you will have to bear in mind....

You'll need a plant fitter, maybe not full time but someone to do servicing and repairs when needed, especially if used kit and that's before any numpty you would trust with a blanket trashes your kit

You'll need to transport the kit, for the size your looking at it wont be, pickup and trailer. So you'll need something larger which comes with needing o licence, tacho, CPC someone to drive it plus cost of owning, you could sub the work out which will cost you each way plus your kit ends up being low on priority so could be pm drops if they turn up.

Hire rates are low and specialist kit can sit for weeks. If your looking for long term hire majority could just find their own kit rather than pay someone else's off

What are you going to do with the kit if it's not on hire


You could pick up couple of mini diggers on intrest free finance, poosan/bobcrap are probably still doing it but won't see a machine till last quarter. Then hire them out for a small return each week, at least if anything goes wrong their under warranty but don't hold your breath on them sorting stuff out quick, again you'll still need to transport them, so trailer and pickup but you'll still need a tacho. Although with bbl's being dished out it's not the best avenue as could be alot of people with kit and no work so could flood the hire market to cover costs/beer money

50k is alot of money but doesn't stretch very far, especially for large or specialist kit. If you can stand heights, may as well buy a nice transit custom, do a mastic course and earn north of 1k a week doing easy work
 
Lancs Lad

Lancs Lad

Well-known member
So just to kick this out there..50k falls out the sky with condition you have to keep it in the plant/digger world.. what would you do with it? Got me thinking ...🤔
 
F

fred

Well-known member
bloody hell talk about encouragement!

one thing is for sure, building is mega busy and demand for plant is high.

How to turn that into money i don't know but its there for the taking, don't take too much notice of the nay sayers on here go for it!
 
Regy53

Regy53

Administrator
Anything is do able. Depends on contacts, drive and determination. 99% of us started with less. Just us poor plant dealers still have less
 
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