What makes your company different from your competitors? It's so important to find your company’s niche. And even if you’ve been very successful in your business up to now, the most successful rental companies periodically re-invent or re-define themselves.
It’s natural to simply keep doing what one is accustomed to doing, and it takes a concerted effort to even consider change. But significant changes to what you are doing and how you are doing it could yield amazing results.
Break Old Patterns, Do Something Different
Rental business owners can’t be expected to be totally objective about their own business. It's difficult to view the business objectively when working in the day-to-day operation of the company. One tends not to see the entirety of the forest because of the closeness of the individual trees.
Some rental companies try to be everything to everybody and in some market areas this might be the best approach. But when I work with my customers, I often discover cases where a stronger focus or a different focus can lead to much more growth and profitability. I also believe having a strong niche or multiple niches helps to reduce the risk of increased competition.
The key word is “focus." Just believing you’re a bit different isn’t enough. Perhaps your staff should focus additional effort on showing what differentiates your company from the others. It might be wise to advertise what you're doing differently. Sometimes even something as simple as additional showroom signage can be effective. But then again, some niches are purposely not advertised as they're part of the company’s “secret sauce." But if the niches are not confidential, be sure to get the word out. At least tell everyone you and your staff come into contact with of your niche. Don’t assume that customers, even ones who have been doing business with you for years, know all that you do. It's also important to prove to your community that the differences that set your rental company apart matter.
Avoiding and shedding excess baggage
It's relatively easy to jump into a new large line of equipment or to branch out with an associated business. One of the strengths of independent rental companies is that they can pivot quickly, which large national companies might find more difficult. This agility can also prove to be a negative if the new direction is not in the best interest of the company. Sometimes the glamour and excitement of a new opportunity can cloud the judgement of even the most successful rental business operators. So, whether you're considering adding another location or any other endeavor that would take considerable financial, time and energy resources, it's wise to be extra cautious. The new opportunity might turn out to be a drag on your company instead of propelling your company into the stratosphere. Obviously, no one knows your business better than you do, but consider getting an expert opinion from someone who has worked with a wide variety of rental businesses.
An adviser would be able to help you consider whether parts of your current business still make sense. Just because certain parts of your company were helpful in the growth of your business in the past doesn’t mean they make sense going forward. Sometimes these parts of the business actually hold the company back by draining valuable financial and labor resources. In light of the current condition of the rental industry’s tight labor market, it might be the perfect time to consider trimming these unnecessary or under-performing portions of your business. (Please see the April issue of this magazine for more of my thoughts about the rental labor market.)
Of course, some or most of one’s business might not need to be adjusted. You don’t want to change the recipe for success and destroy your “secret sauces." Your company is likely where it is today because of some sound business fundamentals that still make sense. Don’t change these fundamentals – accentuate them and focus on further developing niches for future growth and prosperity.
