
With the new year underway most rental businesses are in their quieter season now, but that makes this an ideal time to prepare for busier times ahead. Between planning and training this is your opportunity to set the stage for a prosperous year to come.
Here are 7 timely reminders for greater success in general equipment and tool rental business for 2025.
- Be ready to capitalize on what should be a very robust year. Huge opportunities can be missed by procrastination or being overly cautious. Some rental companies are clinging to the old ways and would greatly benefit from fresh equipment, fresh visual image, fresh rental rates, relevant marketing plans and solid employee systems. These companies are not likely to enjoy the growth and prosperity experienced by other rental companies who have invested in these key ingredients.
- Consider advancements in technology for your rental company. It certainly is a whole new world when it comes to ways to vastly improve a rental company through technology. Most of the ways can be summarized in one word, “efficiency” - efficient use of time, capital, staff, facilities, equipment, marketing, etc. This is certainly an enormous topic but well worth the time and expense to investigate. As I commonly point out, many equipment rental companies are working far too hard for the relatively meager amount left over after their expenses. Greater efficiency should drive your company’s present and future decisions and activities.
- Be proactive and don’t just react. It is almost normal for rental businesses to be in the “reaction” instead of the “anticipation” mode. One of the defining characteristics of great businesspeople is their ability to anticipate their company’s needs before those needs become obvious to others. In the rental business there are so many sources for quality information to anticipate and plan the best direction for your asset management decisions. (For example, your computer-generated trend analysis and other analyses help one to make wiser decisions dealing with a wide range of assets.)
- Establish and/or re-define your company’s culture. For example, supervisors and other team leaders often need more training to anticipate the needs of the business as well. Through specialized training, performance reviews, incentives and implementing properly designed staff “duties and responsibilities” systems, managers will become responsible for making sure that certain controllable problems almost don’t occur. These systems will also assist your team leaders to identify opportunities and act upon them efficiently. Superior anticipation and planning, along with the principles of preventative maintenance in all aspects of the business, should be made a part of your equipment rental company’s culture.
- Plan for the long term. Just a few of these far-reaching decisions and related goals include: what rental equipment to purchase or dispose of; what should your fleet size be in the months and years to come; what should the company goals be (as well as the goals for key staff members); what will the direct costs be as well as the indirect costs be to work toward these goals; and many more.
- Avoid becoming overly complacent. Even if your company has done very well for the last few years, it isn’t wise to rest on your laurels. There are always many ways for the best to become even better. It certainly is tempting to coast a bit this year because of the many pro-business signals coming from the federal government. Some of the proposals will become a reality and some won’t materialize. Some of the business restrictions you face are on a state or local level, so you’ll still have challenges that arise. Changes in competition along with changes in customer preferences also favor rental companies that are nimble and can adapt their company accordingly. So, for all these reasons, it may be wise to avoid having a status quo mindset for this year.
- Develop and articulate your company’s core values and team members’ core competencies. Core values can help to guide your company’s actions and to help it to stay on course. Core competencies also help to give structure to the team members’ mission and provides greater training emphasis in the all-important fundamentals of success in your rental company. Once developed, these guides must be articulated often to engrain them into fabric of your business.
And since it’s always good to over-deliver, here’s one more reminder: your team (and you) are the heart and soul of the company. Continue to encourage and invest time and energy in your team. For owners and other team leaders, it certainly is discouraging to have trained, promising staff leave your organization. It’s easy to become cynical especially when there is such extreme competition for employees. It is wise to remember that trying to have a positive attitude about obtaining and developing people still makes the most sense and will serve you well. Don’t give up the quest.