How to Scale up Your Business With Rental Equipment

How to Scale up Your Business With Rental Equipment

Growing your company is a rewarding and profitable way to bring in more business and new opportunities — but it can also be challenging. When taking on a difficult task, any way you can get ahead is immensely helpful. One way to make business growth easier is to consider renting your equipment.

The benefits of using rental equipment are wide-reaching. Rental equipment can increase profits, offer new project opportunities, improve safety and efficiency and much more. Smaller businesses can especially benefit from rentals because they provide flexibility and access to machines they may not own. By utilizing tools without buying them, you can see how rental equipment can grow your business.

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1. Find the Right Equipment for the Job

Using the wrong tool for a task is a surefire way to create more work for an operator or end up with subpar results. Renting equipment provides more flexibility and freedom. You aren't tied down to the wrong equipment that may have been purchased for different tasks.

Consequences of Using the Wrong Equipment

You may have issues if you're trying to use a compact track loader for a job that would be better served by a full-sized loader. Using tools that are too small can:

  • Increase the demands placed on that machine
  • Make the task take much longer
  • Create poorer results
  • Create undue maintenance needs from overexertion

Conversely, if you're working with a piece of equipment that is too large, it can make maneuverability difficult and create unnecessary safety risks for everyone on-site. You need to find the tool that's just right.

Benefits of Using the Right Equipment

Small- and medium-sized businesses can especially benefit from access to specialized tools as they build up their arsenal of frequently used equipment. Specialized equipment augments an existing fleet and offers a wider selection for each job. Additional benefits include:

  • Increased safety and efficiency: By working with the right equipment, you ensure you use machines designed for the exact task at hand, which is usually safer and more efficient.
  • Better return on investment (ROI): As you rent, you don't have to worry about investing in a machine that you may not use very often. That expenditure can be significant with heavy machinery, and if you don't regularly use the tool, it likely doesn't make sense for you to purchase it outright.
  • Improved speed and precision: Flexible renting options allow you to accomplish the job faster and with more precision. In some instances, it may be the only reason you can get the job done at all. You won't anger your client, you can get better results and have happier operators who don't have to struggle with using the wrong tool.
  • Low-risk "testing": Another way to make use of rental equipment to help you get the right tools is by trying before you buy. This can be helpful if you're entering a new area of work and you're not sure how a certain tool will fare. Before investing in a piece of equipment, you can try it out on the job site and make sure it's what you need. Then, you can be prepared for the work ahead of you and be confident that the tool is the right one for you.

When it comes to getting your rental equipment, you'll want to work with a rental company that offers the assortment of tools you need. The Cat® Rental Store has a wide array of equipment to meet the needs of any number of job sites. Our extensive network of tools and attachments makes it simple to get everything you need from one place. Plus, we make it easy to get your machinery on-site and have your employees trained to use it safely and efficiently.

2. Track New Opportunities

The flexibility of renting allows you to take on many more jobs. Perhaps you've had to turn down jobs in the past because you didn't have the tools necessary to get them done. When you can rent tools as you need them, this problem is greatly diminished. Using rental equipment for more project opportunities allows you to take on more jobs and tasks, increase your output, become more competitive and expand your business.

If your goal is to grow, renting is an incredibly useful benefit. Rental equipment allows you to fulfill the needs of clients who have diverse demands. They won't see you as the company that couldn't take the job because it didn't have access to the right tools. Instead, you become a reliable competitor who can handle even the oddest jobs. This can-do status is an excellent way to market yourself to help you get more clients.

This access to new tools helps you become more competitive in several ways:

  • The right equipment creates a stronger project bid: Even if another company says they can get the job done, they may have to use outdated equipment or a tool that is less suited to the job. When you can rent any piece of equipment or attachment, you can offer a custom-made solution tailored to each project. You know the work you do will be the best, most efficient option for your client — that's definitely a selling point.
  • You can easily meet increases in demand: Renting allows you to expand your fleet of machinery to meet increased demand and get the machine you need quickly. You don't have to spend valuable time researching models, comparing prices and freeing up capital to make a significant purchase. Instead, you can have a machine on hand quickly so you're ready to go.
  • You can use updated technology to stand out: Another way to improve your competitiveness is by using the unique features of rental equipment. Newer technology in heavy equipment can involve things like load weighing, artificial intelligence and telematics. Some jobs may require or be better-served by a machine that has one of these specific features. Renting gives you access to these high-end features, which could open up more project opportunities for you, increase your efficiency or improve your competitiveness in the market.

Adapting to Industry Changes

Renting also allows you to stay flexible and take advantage of certain business opportunities. As the industry changes, you can respond to factors like:

  • New regulations
  • Demand fluctuations
  • Expansion opportunities
  • Competition

For instance, if new legislation makes a certain walkway feature a requirement for businesses in your city, you may receive an abundance of job requests for those installations. If the tools you have aren't right for the job or you simply don't have enough machines to meet the demand, you'll need to adapt quickly. You can rent the tools you need so you meet the temporarily increased need without purchasing a machine that might not get much use after the influx recedes. Renting helps you more accurately adjust to these fluctuations in a budget-friendly way that doesn't sacrifice long-term profits.

Freeing Up More Time

There are plenty of business opportunities that require more than just machine access and availability. You may need more labor or time to take on new projects. When you rent equipment, you no longer have to spend time on maintenance tasks. Your workers can spend less time on oil changes and more time on the job site. You can also put your equipment to work instead of having downtime for routine maintenance. We take care of all the maintenance on rental vehicles, so you can focus on your business goals.

3. Improve Your Company's Cash Flow

One of the biggest issues for growing businesses is generating enough cash flow to allow for some of the improvements and changes they want to make. Renting can help in this area in several ways.

Minimizing Your Fleet

Between considerations for maintenance, insurance, depreciation and more, owning heavy machinery may not be the best option for every company. Having a large fleet doesn't always make sense, and growing businesses often benefit from the limited overhead of a smaller collection of owned vehicles.

Renting offers the convenience of access to a complete assortment of machinery without the need to manage every piece of equipment at once. You can limit your spending on storage space, such as warehouses, and you can eliminate maintenance and licensing fees when you rent.

Freeing Up Capital

Generally, purchasing heavy equipment entails a large upfront investment. Many businesses need to budget far in advance for these kinds of purchases. In growing companies where a large buy requires significant preparation, it may be difficult to adapt quickly when the need arises. Renting eliminates this step and allows for easy access on short notice.

Additional factors about purchasing that may not be ideal for some businesses include:

  • Purchasing ties up your capital in a machine.
  • Purchasing can add to your debt and reduce borrowing power from a lender's perspective.
  • Depreciation can reduce the amount of money you'll eventually earn back when you sell a piece of used machinery.

Naturally, some established businesses find these aspects more manageable than others. For those looking for a profitable alternative, renting is a great option. Renting doesn't require a loan and usually counts as a business expense you can claim on your taxes. With the extra capital you save renting, you can focus on other efforts to grow your company.

Eliminating Repair and Maintenance Costs

Heavy machinery can warrant expensive repairs. Eliminating even small repairs can make a substantial difference for most companies. When you rent, we'll take care of repairs and maintenance tasks. You can save on the costs of maintenance items like oil and filters and on the skilled labor it takes to perform the job. Eliminating both preventative maintenance and major or minor repairs can significantly improve your cash flow, especially if it mitigates the need for a large in-house maintenance team.

Making It Easier to Gauge Project Costs

Equipment rentals provide a surprise-free, dependable method that allows you to accurately understand how much your machine is going to cost you for the duration of your project. With accurate project estimates, you can boost profitability and better understand where your expenses are going.

When you purchase equipment, you may need to calculate a variety of owning and operating costs to understand the equipment's full impact on project expenses. These owning and operating costs can vary greatly, especially when you compare the differences in operational costs for new and old machines. Factor in depreciation and maintenance, and you've got a bit of math on your hands. If this long-term, detailed approach doesn't sound like something you want to spend time on, rental equipment offers a straightforward method of cost estimation. The cost of the rental can simply be split across the project timeline, and you won't have to factor in maintenance or other variables.

Reducing Downtime

When a machine breaks down, rentals can keep your work from grinding to a halt. You can keep the job site moving with a rental piece of equipment to replace a broken machine. If the piece that broke down was a rental, most locations will send an expert to the site right away to take a closer look and get you back to business quickly. Overall, renting allows you to keep downtime at bay. You can finish the job faster and have more time for other projects or tasks.

4. Utilize the Latest Technology

One problem that comes with aging machinery is its out-of-date technology. Plenty of construction company owners struggle with knowing their competitors have the latest machines while they're still working with tech from a decade ago. Renting offers you top-of-the-line technology that can increase safety and efficiency across jobs and industries.

Here are a few features you won't find on older pieces of equipment:

  • Payload measurements: Operators can see the weight of each load they pick up, which offers more precise information and can minimize uncertainty.
  • Ride control: New machines may have technology that creates a smoother ride for operators when working on rugged, uneven work surfaces.
  • Telematics: From an owner's perspective, telematics helps you understand diagnostic behaviors about a machine, like its up-to-date location, and how your operators are handling the equipment. You can monitor factors like idle time and fuel consumption to help you improve fuel usage and operational efficiency.
  • Improved interfaces: Inside the cab, modern machinery can offer more in the way of controls, information and visibility.
  • Artificial intelligence (AI) and machine learning: New machinery may include sensors that watch out for obstacles and other tools to improve job site safety and efficiency.

Advanced technology can drive better performance in a wide variety of ways. One significant aspect that often stops people from adopting this tech is the cost. Few, if any, construction businesses can afford to buy the newest models of their machinery every year.

Many companies can still reap the benefits of new tech at a more affordable price by renting. In fact, renting offers a manageable way to make your organization more competitive and improve operations across the board. You can utilize certain machines with new technology in the specific jobs you where you need it. If the nature of a specific job would make it much easier to accomplish if you had a machine with payload measuring, you can rent something with that capability and avoid purchasing one if you don't otherwise need that feature.

You can also use rental equipment to test out new technology before purchasing equipment. If you're on the fence about a new control scheme or wondering if a certain feature will be useful on your work site, you can confirm with a rental before buying.

5. Focus on Building Instead of Maintenance

One of the most significant benefits of using a fleet of rental equipment is that it alleviates maintenance requirements. Maintenance is vital to the life of a piece of equipment. Simple tasks like changing the oil help a machine retain its value and keep it working efficiently. Of course, it also comes with extra costs and downtime, and the older your machine is, the more it may cost you.

Maintenance tasks that most pieces of machinery need over their lifetime include:

  • Oil changes
  • Filter changes
  • Routine inspections
  • Repairs
  • Lubricating parts
  • Maintaining appropriate tire pressure
  • Winterizing, to prevent freezing and damage in cold weather
  • Fluid analysis
  • Replacing worn tracks, dead batteries and worn belts

Other maintenance considerations that may not work for all businesses include:

  • Management tasks: Owning a piece of equipment requires you to take care of a variety of management tasks, like keeping careful records. You need to document your maintenance tasks, repairs and information about the machine, such as hours in service and serial numbers.
  • In-house maintenance teams: Maintaining pieces of equipment often spurs construction companies to create an in-house maintenance team. That team requires additional employees, more space and more supplies to pay for. It also requires a business to maintain a shop area and vet these employees, making sure they have the necessary skills and experience to take care of their investments.

When you rent a machine, maintenance is all done by the lender. You won't have to devote time to maintenance tasks and can focus more on growing your business. You can also save the money that would otherwise go to these supplies and the costs of repairs.

When you don't have to spend time on maintenance or repairs, you can:

  • Take on more jobs.
  • Make more efficient use of your time.
  • Have peace of mind that maintenance is taken care of.

We keep track of maintenance and stick to schedules based on usage and time to ensure our machinery stays in top condition.

Renting equipment can also help relieve you of other tasks related to machinery upkeep, such as acquiring insurance and staying up-to-date with emissions regulations. No business wants to be known as one that failed to meet government regulations and risked the safety of the community. Renting puts insurance and regulatory requirements in the hands of the lender. We'll take care of all of those factors, including the costs that go along with them.

Grow Your Business With Rental Equipment From The Cat® Rental Store

If you run a growing business, rental equipment can help you reach new heights. Many companies find that renting with The Cat Rental Store saves them money and time through included maintenance, easy budgeting and minimal downtime. It also gives them a competitive edge, especially against some of the larger players in their area. The Cat Rental Store offers an unparalleled selection of equipment, so you can find tools for niche jobs with wide availability. Plus, we carry state-of-the-art products with new technology to improve safety, boost efficiency and contribute to a job well done.

We operate in over 1,300 locations worldwide, so you can be confident The Cat Rental Store is never far away. Find a store near you or fill out a form for a quick quote today.

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