How To Start an Equipment Rental Business in
Illinois
Wondering how to start an equipment rental business in Illinois? Looking to start a equipment rental business? Nate Jones Entrepreneur is here to help you with a free equipment rental business plan below. Starting your equipment rental business in Illinois the correct way is important.
How much does it cost to start an equipment rental business?
-
With a budget of $1,000,000 in purchasing power, you can buy the following pieces of equipment:
-
4 Excavators at $150,000 each = $600,000​
-
4 Skid Steers at $100,000 each = $400,000
-
-
Loan Information:
-
Down Payment: 20% Down = $200,000​
-
Monthly Payment: $11,020 a month with a 10% interest rate.
-
Insurance: $1,000 a month. If you need insurance, reach out to Wexford Insurance. wexfordins.com they work with numerous equipment rental businesses.
-
-
TOTAL START UP COST: $200,0000
​
How much money can you make with an equipment rental business?
-
Equipment Rental Businesses can make up to $600 a day for an Excavator Rental and $400 a day for Skid Steer Rental.
-
The average rent duration is 4 days.
-
Equipment Rental Business Similuation:
-
8 Days of Rent a month per each equipment​
-
$600 * 8 days = $4,800 a month for each excavator * 4 excavators = $19,200 a month
-
$400 * 8 days - $3,200 a month for each skid steer * 4 skid steers = $12,800 a month
-
-
TOTAL REVENUE: $32,000 a month = $384,000 a year.​
​
Are Equipment Rental Businesses Profitable?​​
-
Yes, if the equipment is rented out 30% of the month, usually, equipment rental companies can cashflow. See simulation continued below:
-
$32,000 a month revenue​
-
$15,000 a month in expenses
-
$4,166 a month or $50,000 a year in maintenance
-
Cashflow: $12,900 a month profit = $154,000 a year profit!
-
​​​​
Positives of a Equipment Rental Business
-
This business is semi-passive. Once your equipment is rented out, you sit back and wait for it to be returned.
-
This business does not require a ton of employees since you are renting out equipment.
-
If planned correctly, this business should always be profitable.
-
This business can be sold and other people are paying your loans on your assets. Overtime, you end up with equipment that is paid off.
​
Types of Equipment Rental Businesses
-
Heavy Equipment Rental Business
-
Small Tools Equipment Rental Business
-
Canoe and Kayak Rental Business
-
Party Tent Rental Business
-
Crane Rental Business
-
Truck Rental Business
How to Start an Equipment Rental Business
-
​Save up money for expenses and down payments.
-
Form your LLC with the Federal Government and Local Government
-
Create your website and social media pages
-
Purchase Insurance
-
Find a Lawyer to draft your customer service contract
-
Implement local marketing. ​
Chicago - Springfield - Peoria - Naperville - Rockford - Bloomington - Champaign
Need Help Finding a Business Idea?
Download my
E-Book
Are you wanting to start a business but don't know which one or where to even look? Great news, I have done the hard work for you. In this book, you will learn the following:
​​​​
-
How to find a business idea that fits your lifestyle.
-
How to uncover business ideas that no one else is starting.
-
How to potentially buy your first business instead of starting one.
-
How to start your business and set it up to succeed.
-
How to scale your business so you have a life.
​
Looking for a Business Idea?
Are you looking for a business idea? Want to be an entrepreneur but don't know what business to start? This course, Business Idea Blueprint is for you! In this course I will help you find a business idea there is actually an opportunity in. Also, I will help you determine which business is right for you and how to get it off the ground and running! ​​​​​​