How To Start an Equipment Rental Business in
Mississippi
Wondering how to start an equipment rental business in Mississippi? 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 Mississippi the correct way is important.
How much does it cost to start an equipment rental business?
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With a budget of $1,000,000 in purchasing power, you can buy the following pieces of equipment:
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4 Excavators at $150,000 each = $600,000​
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4 Skid Steers at $100,000 each = $400,000
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Loan Information:
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Down Payment: 20% Down = $200,000​
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Monthly Payment: $11,020 a month with a 10% interest rate.
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Insurance: $1,000 a month. If you need insurance, reach out to Wexford Insurance. wexfordins.com they work with numerous equipment rental businesses.
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TOTAL START UP COST: $200,0000
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How much money can you make with an equipment rental business?
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Equipment Rental Businesses can make up to $600 a day for an Excavator Rental and $400 a day for Skid Steer Rental.
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The average rent duration is 4 days.
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Equipment Rental Business Similuation:
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8 Days of Rent a month per each equipment​
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$600 * 8 days = $4,800 a month for each excavator * 4 excavators = $19,200 a month
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$400 * 8 days - $3,200 a month for each skid steer * 4 skid steers = $12,800 a month
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TOTAL REVENUE: $32,000 a month = $384,000 a year.​
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Are Equipment Rental Businesses Profitable?​​
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Yes, if the equipment is rented out 30% of the month, usually, equipment rental companies can cashflow. See simulation continued below:
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$32,000 a month revenue​
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$15,000 a month in expenses
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$4,166 a month or $50,000 a year in maintenance
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Cashflow: $12,900 a month profit = $154,000 a year profit!
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Positives of a Equipment Rental Business
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This business is semi-passive. Once your equipment is rented out, you sit back and wait for it to be returned.
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This business does not require a ton of employees since you are renting out equipment.
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If planned correctly, this business should always be profitable.
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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.
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Types of Equipment Rental Businesses
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Heavy Equipment Rental Business
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Small Tools Equipment Rental Business
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Canoe and Kayak Rental Business
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Party Tent Rental Business
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Crane Rental Business
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Truck Rental Business
How to Start an Equipment Rental Business
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​Save up money for expenses and down payments.
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Form your LLC with the Federal Government and Local Government
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Create your website and social media pages
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Purchase Insurance
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Find a Lawyer to draft your customer service contract
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Implement local marketing. ​
Jackson - Hattiesburg - Southaven - Ridgeland - Starkville - Tupelo - Natchez
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How to find a business idea that fits your lifestyle.
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How to uncover business ideas that no one else is starting.
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How to potentially buy your first business instead of starting one.
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How to start your business and set it up to succeed.
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How to scale your business so you have a life.
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