This equipment rental business plan sample is focused on the growing service industry in Washington, DC. We hope this sample provides you with a brief foundation for starting your own equipment rental company. Our equipment rental business plan writers crafted this sample for your review.
Executive Summary
“R Best Solution Inc.” operating as “R Best Solution” or “the Company” was incorporated in 2019 in Washington, DC and is a 50/50 joint partnership between owners Ron Miller and Rob Croner. The company provides eco-friendly temporary site services and rentals (fencing, portable toilets, and bins) for construction sites, farms, events, and other temporary sites.
As the construction industry begins to recover post-pandemic, new projects are breaking ground at a record pace in Washington, DC. There is currently a gap in the market for a business that can provide different site services (including portable toilets, fencing, bins). Today, developers and other companies are sourcing what they need from separate companies. R Best Solution will become the one-stop-shop for all temporary site rental supplies.
Not only is the company to become the one source of all temporary site rental equipment, but a significant focus will also be on environmentally friendly products and materials when possible.
R Best Solution is seeking a $50,000 loan from the SBA Loan Program to purchase inventory and assist with start-up costs in the first year.
The company seeks to make a difference in the world of temporary event equipment rentals by supplying Washington, DC. sites with more eco-friendly solutions to their site services needs.
Market Research Summary
America is the number one producer of garbage in the world. American’s produce approximately 1.3 billion metric tons (36.1 metric tons per person) every year. A large portion of this likely comes from construction, one of the key industries R Best Solution is targeting.
After a slow new construction starts year during the pandemic, construction projects are expected to increase in the coming years. As the industry begins new projects, the need for site rentals and services from R Best Solution will also increase. The company also expects to see significant business from special event organizers and the DC filming industry as those industries reopen post-pandemic.
The company is a catalyst for those looking to create construction projects, events, building works, farming endeavours, and other ambitious operations and need site rental equipment like fences, portable toilets, and bins. Currently, these businesses are sourcing these rentals individually and buying them from multiple vendors.
Marketing Summary
The founders of R Best Solution understand the importance of having an effective online presence to portray professionalism and attract business leads. The company will ensure its website is always up to date, have an active social media presence to engage with customers and educate them on environmental issues related to site rentals and form many strategic partnerships to move the business forward. The company will also get word-of-mouth referrals through networking and by forming strategic partnerships.
Finance Summary
With this $50,000 loan, R Best Solution will bolster its inventory of disposal bins, fence panels and portable toilets. Within the first 12 months we forecast $350,625 of gross revenue, $125,606 in operating expenses and $77,522 in net income.
Company Profile
Business Overview
R Best Solution provides eco-friendly temporary site equipment rentals (like fencing, portable toilets, and bins) for construction sites, farms, events, and other temporary sites. The co-founders have seen firsthand the struggles of those seeking equipment and supplies for temporary sites. They set out to create a company that provides everything site managers require, including fencing, portable toilets, and waste/recycling solutions).
There are many competitors that R Best Solution is competing against, but most are larger, national chains that offer in-the-box solutions. R Best Solution is smaller and therefore more agile to meet the customized needs of customers. And as a smaller company, they will focus heavily on providing good customer service, something that the competitors seem to be lacking, according to various third-party reviews of these companies.
In addition to providing site services and rentals, the company will also have a dedicated focus on environmental sustainability. They plan to partner with other environmentally aware companies and associations to help reduce waste and encourage more eco-friendly products and business practices.
Company History
Mr. Croner and Mr. Miller have spent many years in jobs where temporary sites were required. They saw employers struggling to source temporary structures and equipment from multiple sources and end up with many environmentally damaging products being brought on-site or discarded after use. They also saw temporary sites struggle to sort recycle and waste effectively.
They combined their knowledge of the industry and personal passions for environmental sustainability to form R Best Solution to fix the gap in the marketplace.
Management
The company will be managed by the two founding partners, Rob Croner and Ron Miller.
Location
The business administration will operate from 123 3rd Street Washington, DC
Inventory and production will take place at a secondary location that is currently to be determined.
Legal Structure
The company is incorporated and will be owned by Mr. Ron Miller and Mr. Rob Croner, who each own a 50% share.
Mission & Vision
Mission Statement
R Best Solution is on a mission to provide construction sites, farms, event sites, and other temporary venues with environmentally-safe made equipment rentals so they can minimize their impact on the environment.
Vision Statement
R Best Solution envisions a world where sustainable business practices are customary, and improvement and resourcefulness become second nature for businesses.
Daily Mission
R Best Solution’s daily mission is to promote sustainability and reinforce local businesses in their sustainability efforts.
Goals & Objectives
R Best Solution is driven by excellence. To meet its objectives to bring eco-friendly options for more temporary sites around Washington, DC., the company has set several goals:
- Purchase five trucks and an ample supply of bins by 2022.
- Obtain funding to purchase inventory and help with start-up costs until the business is profitable at the end of year one.
- Continually build up inventory and stock of rentable site services in the first year.
- Hire three labourers in the first year.
- Hire a digital marketing company to help attract 1000 followers across all platforms in the first year.
- To earn $30-50K profits in the first year.
- Participate in at least six large networking events and conferences in the first year (in-person or virtual).
- Join as active members of ten business and industry organizations in the first year (i.e.: Better Business Bureau, industry associations)
- Earn the proven results and right to pitch and onboard an environmental charitable partner by 2024.
Market Research
Industry Profile & Outlook
America produces the most waste in the world at approximately 1,500,000 metric tons (40.5 metric tons per person). The need for waste and recycling collection continues to grow as the population and needs of Americans continue to grow.
As the world begins to reopen following the global pandemic, the waste disposal industry is expected to see massive growth:
The waste collection services industry earns revenues of $6.3 billion and is expected to grow at an annualized growth of 4% by 2026. The industry is highly dependent on construction, population growth, and garbage and recycling collection and processing regulations.
In DC, the value of proposed construction projects is expected to be $300 billion. The value of current construction projects underway in the province is already $130 billion. This industry accounts for 10.6% of the province’s GDP.
In America, the value of construction projects is expected to reach $40.7 billion and grow at an annualized rate of 5.6% over the years to 2026.
R Best Solution sees this growing waste problem as unfortunate for the environment but as an opportunity for the company to impact change and help divert some of this waste product into recycling programs for its customers.
Local Markets
R Best Solution serves many different markets, lowering the risk to the business should one industry see a downturn or collapse. The key markets R Best Solution plans to target include construction, agriculture, and forestry. Film and special events will act as a secondary market for expansion in the future as these industries bounce back after the pandemic.
Construction
The value of proposed construction projects in the District of Columbia is $300 billion, and $120 billion worth is already underway. DC’s construction industry accounts for 8.6% of the states’ GDP.
Agriculture
The DC agriculture industry is mainly recession-proof and will need assistance with site cleanup, management, and sorting of wood in bins for the foreseeable future. The industry has seen solid growth in the past three years.
At the end of 2020, the value of farm equity in America rose 4.4% to $563.2 billion, rising faster than total assets for a third consecutive year.
Organizations like Farm Credit America regularly publish reports, help new farms launch, and sustain profitable operations.
Forestry and Logging
The logging industry in America is a $12.1 Billion business with over 10,000 companies that employ over 34,000 people in America. This industry is highly dependent on the health of the trees it harvests (the pine beetle epidemic in American forests hit the industry hard over the past 20 years) and on downstream demand in other sectors using wood products (like construction) and consumer use of wood and paper products.
For R Best Solution, an excellent way to serve this industry is to partner with the BCC Centre for Advanced Wood Processing. They are America’s national centre for education, training and technical assistance for the wood products manufacturing industry. This organization also creates training and development events and is an industry connector. This could provide an opportunity for R Best Solution to be associated with a reputable, academic, and industry partner while also referring potential clients.
Film Industry
Due to the attractive tax credits for Americans, DC is a popular place for film and TV projects. In 2019, DC’s film industry was valued at $4.1 Billion. Location scouts for these productions often source and secure locations around private residences, commercial establishments, and public places for filming. Crews are often on-site for several days or longer. They usually require rentals of fencing, portable toilets, and waste and recycling bins while on site.
Future markets
As the company grows, it can service all sizes of events in DC. In the future special events are expected to become a huge industry focus for R Best Solution. In 2019 this industry was valued at $1.788 million. Like many industries, it saw a significant dip during the pandemic but looks to be slowly returning in 2021 and for the future.
To increase the marketing reach of the company, R Best Solution will form relationships and partnerships with:
- VRCA – The largest regional construction association in the District of Columbia
- Better Business Bureau (Get a listing, invite to events).
- Washington, DC. Board of Trade (Get a listing, invite to events, industry insight)
- DC Road Builders
- Small Business DC – can appear in a blog and on TV screens
- Tinseltown Televisions – can appear on TV advertising
- Foreign Newspapers – the company can place an ad in foreign newspapers at a low cost.
- World Environment Day: Celebrating on social media and also at any relevant events. The UN’s #GenerationRestoration can be adopted online.
- Waste Reduction Week America
Key Competitors / SWOT Analysis
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Summarized Key Differentiators
- Overall, R Best Solution is superior to the competition as it has superb customer service, dynamic service offerings, a strong marketing team/plan, and does price matching.
- No construction company offers any of the services that R Best Solution plans to provide in-house. All competitors are servicing companies separate from the construction industry.
- All fencing sizes will be quoted in “linear feet.”
- All competitors but one had fixed pricing. R Best Solution plans to negotiate and price match for customers when needed.
- Some companies with higher-rated customer service levels followed up with an email, which was a nice touch and something R Best Solution plans to incorporate in their sales process too.
Target Market
The target clients for R Best Solution include anyone who does work temporarily on sites and requires equipment like safety fencing, portable toilets, and waste bins. These clients come mainly from the construction industry but also include:
- Homebuilders
- Roofers
- Renovation companies
- Commercial and residential developers
- Farmers
- Special event organizations and groups
Key to Success
For R Best Solution depends on the following keys to success:
- Officially launching the business
- Growing the loyal following on social media and in the local business community
- Pricing and packaging services in a competitive manner put the company slightly ahead of the competition.
- The founder’s extensive knowledge of the construction and temporary site management will be vital in understanding the pain points of this market.
Operations
Legal Issues
R Best Solution will adhere to the following legal and ethical requirements:
Environment First
A solid environmental policy is the cornerstone of R Best Solution. The company will make the environmental policy clear and on the first page of the website and look for ways to partner with other environmentally conscious companies.
American Anti Spam Legislation – AASL
The company will ensure that all business development outreach via mail or email will occur only with the recipient’s consent. No contact will be added to our databases without express written permission from the contact.
Data Protection and Security
R Best Solution values the privacy of customer data and information. The company will observe all data protection legislation and will not retain sensitive third-party data. When security cameras and monitoring services are added to our portfolio, all CCTV and privacy laws legislation will be observed.
Legal Contracts
A lawyer will be hired to create the vendor agreements. The company will request the following unique clauses be included:
- Clauses to limit liability as much as possible.
- Credit and ability to announce the partnership. The company will be able to promote any testimonials, partnerships, or clients on social media.
- If the client is a film or TV client, the company will request the ability to obtain a Screen Credit.
- Partners will sign a memorandum of understanding that both parties are not responsible for debts or liabilities.
Insurance
R Best Solution will obtain all standard commercial insurance. R Best Solution will request that all clients and vendors get their own insurance too.
Expense Tracking
The company will hire bookkeepers to maintain accurate financial records. This will be a requirement for the accuracy of taxes and future tax and business planning.
Insurance Issues
R Best Solution will seek and obtain all necessary liability insurance and other insurance required by law for any business activity the company participates in.
Waste Legalities: Authorizations and Permits
R Best Solution will obtain all necessary waste disposal certificates as required by the Hazardous Waste and Hazardous Recyclable Material Regulations. The company will also be compliant with the Environmental Management Act (EMA).
The Waste Discharge Regulation defines the activities and types of waste that needs authorization under the EMA, including:
- Air contaminants (i.e. dust from an industrial site)
- Effluent (i.e. wastewater from industry or sewage)
- Garbage (i.e. municipal and industrial garbage)
- Hazardous waste (i.e. batteries, asbestos and waste oil)
The company will apply for waste discharge as necessary here and ensure staff reviews the process monthly to ensure compliance.
R Best Solution will consult a lawyer and apply for additional waste insurance or permits required by municipal, provincial, and federal law.
All company vehicles will also be deemed “safe for road use” and regular servicing for safety checks and maintenance.
Human Resources
When R Best Solution begins hiring for roles with the company, there will be a need for professional drivers and machine operators who will assist with picking up and dropping off inventory and maintaining inventory upkeep. Their pay is expected to be $18 per hour.
Year 1: During the first year, the only two full-time employees will be the two owners. All other business support will be subcontracted or hired from outside the company.
Year 2: One to two employees may be hired based on demand and workload in the second year.
Year 3: In the third year, the company expects to employ three or more people, depending on growth.
Process / Production
To become a trusted one-stop-shop for all temporary site services and equipment, R Best Solution will offer the following eco-friendly equipment rentals and services:
Disposal/Recycle Bin Rentals
Various sizes of bins will be available for rent and are custom-made depending on the customer’s needs. As such, the pricing will vary. Bin delivery and pick-up will always be included in customer pricing.
Portable Toilets
When many people think of renting a portable toilet for their job site or event, they think of the standard, regular-sized plastic porta-potty cubicle. While these are popular and economical for site and event coordinators, it’s not the only option.
R Best Solution will also offer executive washroom trailers with a more luxurious interior. The company can create portable washroom structures for any space requirements and budget. They can also help determine how many washroom facilities you need based on the type of event and site capacity.
R Best Solution will also provide options for upgrading portable toilet structures. One of these additions is to install expandable storage for clients who want to decrease the frequency of tank emptying. Tank emptying and removal will be worked into rental fees.
Temporary Fencing
Temporary fencing around sites doesn’t often have the best reputation and isn’t generally viewed as durable or high quality. The fencing available for rent from R Best Solution are sturdy and stay in place better than the cheaper rent-a-fences other sites use. This is a great option to protect construction sites in higher-end neighborhoods or as perimeter fencing for events. They are designed to deter trespassers and wildlife.
Post-construction cleanup, recycling, and sorting
Cleanup at an event or construction site can be time-consuming, especially for customers who value correctly sorting and recycling waste. R Best Solution will offer a service to come onsite to pick up, sort, and dispose of all site materials by recycling whenever possible.
The company will also track recycling on customer sites and post public congratulations on social media when they reach recycling milestones. This is done to spread the company’s sustainability messaging and encourage other companies to step up their recycling and eco-friendly initiatives.
Future Service: On-Site Security – Both R Best Solution Founders have extensive site security experience and plan to offer CCTV services for sites once the company’s main service portfolio has been established.
Future Service: Commercial Storage Lockers – As demand increases, R Best Solution will offer portable storage lockers and other large plastic storage containers for customers.
Future Service: Portable Sinks – Providing handwashing facilities and sinks for sites is something the company expects to see increased demand for in the coming years. These will need to comply with increasing personal hygiene standards, public health guidelines.
Risk Assessment
Risk 1: A health crisis (similar to COVID-19) or other incident causes construction sites to cease operations for the long term.
Mitigation Plan: Push rentals like fencing (for security) and push site security and monitoring service until the worksite can reopen.
Risk 2: Customers leave bad reviews of R Best Solution online. This has happened for the company’s competitors, and they appeared to have been left unresolved.
Mitigation Plan: The company’s customer representatives will take an active role in providing good customer service including, email follow-ups after proposals are sent and publicly responding to all negative feedback posted on public forums in a professional and positive manner.
Risk 3: New competitors come into the local market and try to compete.
Mitigation Plan: R Best Solution will update its marketing messaging as needed in response to external pressures. Often this messaging will include pushing the benefits and key differentiators, like the company’s environmental focus.
Sales & Marketing
Pricing Strategy
As most rentals will be custom-made, pricing may vary depending on many factors. Some guidelines for pricing at R Best Solution include:
- Measurements: All fencing prices are quoted in “linear feet.”
- Beating competitor pricing: Initially, R Best Solution will create custom work only. The goal is to beat a competitor’s closest comparable product by at least $30 to remain price-competitive.
- Material costs: Cost to the customer will depend mainly on the types of materials used in their project.
- Introductory pricing: At launch, advertising and customer quotes will note that any pricing is for a limited time and is subject to change. This allows the company to provide custom pricing and eventually increase prices in the future.
- Rental Terms: At the company launch, there will be no minimum rental period enforced. After about three months, the company will begin implementing a minimum one-month rental or services. Customers will be offered additional incentives and perks for locking in for three months or more.
- Discounts: The company will extend discount offers to repeat customers.
- Other Fees: Most quotes will include everything the client needs to deliver, use, and return the rentals. However, additional fees may be charged for tipping bins, losing keys or property, and damaging the equipment.
Marketing Strategy
R Best Solution will hire a digital marketing professional to oversee and create all digital strategies, including SEO optimization, website content, and blog writing. The company understands how crucial it is for the website to be kept up to date to avoid mixed messaging on services or offerings.
Social media will be an invaluable tool to promote the business, attract customers, and build momentum for the business. The company and its hired digital marketing team will track critical metrics and data for goal setting, analysis, potential exit strategy, and future sales.
In addition to digital marketing, R Best Solution will launch the following marketing strategies:
Word of mouth networking
The company Founders will become active business networkers in the local community. The company will look to participate in related major conferences and events that their target customers may attend. They will also connect with companies listed in the association membership listing to find referrals or customers.
Education
A large portion of the company’s marketing will educate customers about the benefits and need for setting up waste/recycling initiatives on their sites. This will involve creating and sharing YouTube videos, presentations over ZOOM, and events at conferences. Education will be a key marketing theme for R Best Solution.
Hiring Initiatives
The process of advertising and hiring for employees can be used in the company’s marketing strategy. Posting job opportunities on Linkedin with attractive graphics can increase the outreach of the company and increase visibility and reputation to more potential customers.
Signage
In the future, once the need exists for a physical storefront or offices, signage will be used around the office to further the company’s values, messaging, and offers for walk-ins and passers-by.
Podcasts and radio
Podcasts and audio spots on radio and TV are ways R Best Solution can share its passion and dedication for the environment while promoting the business to a broader audience.
Marketing partnerships
As strategic alliances and partnerships form between R Best Solution and other organizations, there exists an opportunity for cross-promotions, joint events, referrals, and shoutouts.
Launch/anniversary parties
These are a great way to celebrate the company’s success within the team and with customers.
Seeking awards and recognition
Awards and public recognition is an effective way for a business to boost its reputation. The company will apply for and seek opportunities for recognition through awards and associations like local business magazines and Top 40 under 40 Biz magazine.
Positioning Statement
For site coordinators in Washington, DC., who struggle to get all their event rentals from one place, R Best Solution is the one-stop-shop for reasonable, temporary event rentals like fencing, portable toilets, and bins with a commitment to environmental sustainability.
Unlike their competitors, R Best Solution is a locally owned and operated business that offers custom, flexible pricing.
In addition, the company has a solid environmental position that will differentiate them from the competition:
- The company will actively encourage customers to recycle every step of the way (from initial phone chat and through to visible presence and posters/guidelines at the job site).
- The company will keep confidential data on their customer’s recycling habits (with their permission) and offer incentives and recognition to those that convert 80% or more of their trash to recycling or who can significantly lower their carbon footprint throughout the project.
- The company will dedicate a percentage of profits to global waste initiatives.
Sales Process
Sales leads will come from the company’s online marketing initiatives and through Google Ads. Referrals and word-of-mouth contacts will also be a significant source of sales for the company.
When a lead comes in, a representative from R Best Solution will contact the prospect to discuss their needs and put together recommendations and a proposal with their custom-priced package.
Strategic Alliances
R Best Solution plans to create business relationships with a variety of partners and stakeholders. Some of these strategic alliances are to obtain and exchange business referrals, and some support our dedication and passion for environmental sustainability in business.
Every partnership will be unique and may include social media shoutouts, public relations outreach, and building up goodwill in the eyes of potential customers, investors, and future funders.
Some partnerships in the recycling industry may have items that can be donated to R Best Solution. The company has already sourced fencing from a local partner this way.
Potential Corporate Partners
R Best Solution will partner with construction companies, especially women-owned businesses, those with a strong diversity and inclusion mandate, and those who have similar environmentally friendly values. Some examples of potential corporate partners include:
- Belle Construction – They focus on small, female-driven projects, but they also help place thousands of contractors in jobs. The female staff at R Best Solution can likely approach, network with, and support groups at any relevant events and initiatives.
- American Association of Women in Construction
- Winners of the 2020 Builders Code awards for diversity and workplace/community championship:
- Farm Credit America and Agricultural America – R Best Solution plans to provide (with customer permission) relevant statistics on disposal, monitor farm industry trends, and use this information to further its environmental messaging and obtain environmental-focused grants. This would be a medium to long-term relationship.
- Food Trucks – mobile food services are often situated near construction sites, farms, and special events, so there could be collaboration opportunities as the ideal customers for each company align.
Potential Charitable Partners
R Best Solution is also looking to partner with other ethical, environmental, and charitable partners to further its environmental initiatives. The following partners are currently being evaluated for possible partnerships or collaborations:
- TerraCycle – American charity
“TerraCycle is Eliminating the Idea of Waste® by recycling the “non-recyclable.” Whether it’s coffee capsules from your home, pens from a school, or plastic gloves from a manufacturing facility, TerraCycle can collect and recycle almost any form of waste. They partner with individual collectors and major consumer product companies, retailers, manufacturers, municipalities, and small businesses across 20 different countries. They divert millions of pounds of waste from landfills and incinerators each month.”
- Waste-Aid
Waste-Aid is an independent UK charity (non-profit) set up by waste management professionals to share practical and low-cost waste management know-how with communities in low-income countries. - The UNEP International Environmental Technology Centre (IETC)
This organization in Japan supports the implementation of integrated solid waste management systems.
- BCC Centre for Advanced Wood Processing
Financial Plan
Pro Forma Income Statement
Pro Forma Cash Flow Statement
Pro Forma Balance Sheet
