5-step guide to start a rental business model
Markets across the globe are more competitive than ever. With both established and newcomer solutions to solve almost any need a consumer might have, businesses are looking for new ways to get an advantage on competitors. Recently, one of these methods has included exploring the costs and benefits of renting equipment against the expenses of owning it.
Leasing products has become a great way to focus on the short-term needs of both people and companies, while keeping cash flowing. It is a great technique to discourage unnecessary investments that might not serve users in a near future. Additionally, it keeps a steady rotation of products that are used in a more conscious way until they cannot be used no more.
Whether you’re considering renting products for your own company or kicking off your own rental business model, we know this can be a big departure from business-as-usual. So make sure to go through this list and understand why unlocking rental operations might just be the next perfect step for your business.
1. Understand the why
There is a larger scope as to why rental businesses are so important in modern-day society. Renting, leasing and refurbishing items are all part of a circular economy model, which favors the rotation of products as often as possible in order to extend their life cycle and reduces the need for non-reusable resources. With global challenges such as climate change and overconsumption taking center stage, recent generations have started to pay more and more attention to how businesses can become more sustainable and protect the planet. By focusing on short-term needs and product reuse, companies can contribute to a greener economy all the while appealing to a new generation of consumers that favor access over ownership.
2. Do some research
In case a rental business model is new for you, then it’s time to stop and think for a minute. First of all, perform some market research and see if customers are actually looking to lease the kind of equipment you might have available. Think of how your products can satisfy short-term needs of your community. If the answer is positive, make sure to also check your competition. What price models are they operating on? What channels are they using to engage with customers? Unlocking rental operations can be a great addition to both your revenue and your audience, but you also don’t want to fall behind on what everyone else is doing.
3. Start your inventory
One of the most important steps is figuring out what exactly you wish to rent out. Is the full scope of your product portfolio ready to lease? Or maybe you should focus on equipment that you do not need anymore, such as technical gear or even kitchen supplies? Don’t be afraid to explore the range of your rental listing. The more products you have available, the higher the chances someone will be interested in them. Each item on your inventory should also include an adequate insurance model — to safeguard from unexpected damage — as well as flexible price stamps that vary according to time range and seasonality.
4. Rethink your targets
Renting is a new door to be opened for your business, which means you should also think how it fits into the rest of your strategy and what benefits you can expect to reap from it. Do you wish to increase revenue? Appeal to a younger generation of consumers? Contribute to the reduction of CO2 emissions? These are just some examples of what you can achieve with a rental business model but you should first see if they make sense according to both your industry and audience. One can argue that every business has the potential to lease products and become more sustainable, but that doesn’t mean they will all achieve the same targets in the same way.
5. Find your platform of choice
Starting rental operations for your business online doesn’t mean you have to do everything by yourself — on the contrary. A number of platforms are designed to unlock rental operations and provide business owners with as much flexibility as possible. Your platform of choice should be able to cover all your rental essentials, including insurance, payments and ID verification methods. More importantly, it should be an additional online sales channel for you and your team to increase sales revenue and engage with customers. Unlocking a rental model is not about putting more pressure and concern on top of your operations — it’s all about taking your business to the next level.
Organizations across the globe are turning to renting and leasing as an extra way to increase revenue and gain some competitive advantage. Adding an integrated, digital platform on top of that strategy is a further method to streamline operations, increase flexibility and adapt to new customer demands. While you join to a new way of doing business that contributes to a more sustainable future, a new generation of consumers will be glad you took that step. The age of access starts now.