Starting a Heavy Equipment for Hire Business
Learn some basic information you need to know before putting up a heavy equipment for hire business. Get an overview of how the equipment leasing business operates and find the commonly used heavy equipments.
In essence, the equipment for hire business involves two parties: one, those in need of heavy equipment and two, the company that rents out heavy equipment.
These machineries are very costly and they are usually used only once and only for a short period of time. To be practical, instead of purchasing, most businesses turn to equipment leasing companies to solve their heavy equipment requirements.
The agreement between the lender and the lessee usually last for a specified time period and the charge is a flat monthly rate. Typically but not always, these equipment are used for construction or earth moving projects.
Commonly Used Heavy Equipment
Loader –This is a type of wheeled tractor that is fitted with a square tilting bucket in front. The bucket is attached to movable “arms” and is designed to carry load. The bucket can be replaced with other tools such as forks or clamshell buckets. There are two variations of this equipment. One is the skid loader that is a more compact version with only four wheels. The other is the track loader. Instead of wheels, it makes use of tracks for better ground hold and rough terrain mobility. Primarily, loaders are used to transport heavy materials.
Excavator – This equipment possess a long mobile arm with a bucket at the end. The cab where the operator sits can be found on top of a rotating platform. Typically, excavators are used for digging, handling materials, demolition work, and dredging. Some types of excavators are as follows: bucket-wheel, backhoe loader, dragline, long reach, skid steer, and suction excavator.
Crane – this equipment is a lifting device that possesses sheaves, wire ropes, and a winder. It is used to lift and lower load and then move them laterally.
Bulldozer – this equipment is a type of crawler or tractor that is fitted with a metal plate or dozer blade in front. This is used primarily to shove large amounts of earth materials. It has wide tracks because for excellent traction since it uses its own weight to push heavy materials.
Heavy Equipment Manufacturers
You can buy your heavy equipment directly from the manufacturer. Following is a partial list: Atlas Copco, Bell Equipment, Caterpillar Inc., CNH Global, Deere & Company, Demag, Doosan Infracore, Euclid, Fiat-Allis, Hitachi Construction Machinery, Hyundai Heavy Industries, Ingersoll Rand, Koering, Komatsu, Kubota, Madill, Navistar International Corporation, Orenstein and Koppel GmbH (O&K), Pierce Pacific, Poclain, Rototilt, Skaggit, Terex, The Liebherr Group, and Volvo Construction Equipment.
Some Tips
To attract clients, a heavy equipment leasing company must make its presence known. Advertising therefore is a must.
Be patient and take time to answer your prospective client’s questions. Make them feel that you are there to meet their equipment needs because you want to help them and not because you see them as an opportunity to earn profit.
You need to have lease options available since this is what customers usually ask for.
Your quotes must be at par if not lower than that of the competition because more often than not, customers compare rates.
11 Comments
- The business is to be located in Botswana, my intention is to writte a good business plan that i will provide to the bank for funds request.
- my idea is want start a heavy machinery and spare parts at segamat, johor. can i now what is the strategic of this place?
- The idea is to start a heavy equipment for hire and rent. The business will be located in Ghana, Accra. My intention is to write a good business plan/proposal to request funds from the bank and what steps to follow in starting this business. Basically i request for guidelines as to how to go about this. Kindly assist.
- I intend to start an equipment rental business with a focus on the construction industry. The plan is to combine this equipment rental business with a brick making business. Location will be lagos, Nigeria. Useful tips and advice on how to structure the business with a good business plan will really be appreciated.
- Thanks for the advice/tips in starting a heavy construction business rental business, especially what you said advertising and marketing I must say its a must but offline and online. Am into equip rental too thou don't have any equipment to my name yet, what I did is a what they call JV joint venture/partnership/alliance with company that have these equipment because am savvy in internet marketing I do all the ads, marketing,make the sales and collect an agreed percentage. So my advice to you trying/hoping to write a business plan and getting loan from the bank guess you should do same but especially if you are nigerian like me,but if its easy to get the loan then go right ahead. Above all I would like to be informed on your progress with the business because you never know your story will be a source of motivation and inspiration especially since we are striving to achieve related or possibly same goals 08061164526
- I have two excavators , jcb, loader , breakers want to engaged this equipments a good projects in hiring basis so kindly help me, Prasant kumar Singh, bhubneswar, odissa , India,
- Im a Kenyan but a residence of NY and want to start a small heavy equipment for hire and rent in kenya. Basically i request for guidelines as to how to go about this. ie. possibility of acquiring funds/loans for the same. Kindly assist.
- Am into hiring construction machines, my location is abuja Nigeria. Contact me for lease 07062733337
- Am in the business of vehicle and equipment hire based in Nairobi. We have light to heavy equipment. Contact us through (+254)719120021.
- am Samuel from Ghana and I have s friend from India who wants to come and establish a heavy-duty rental business in Ghana. I just don't know how to start with him. pls help me
- I intend to start an equipment hiring business, will like to know the particular equipment to start with because of the capital involved. I'm based in Abuja, Nigeria. Will be awaiting your sincere response as soon as possible.
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