Are you interested in starting a trailer rental business? Learn how to start a utility trailer rental business from this post.
Do you know that with a utility trailer rental business, you can own a very stable business with a reliable income?
This article provides you with answers to the above questions.
If you want to satisfy your curiosity, then read along.
What Is A Utility Trailer Rental Business?
A utility trailer rental business is a type of business where you rent out trailers to people, and companies either big or small, to move their large/bulky goods.
These utility trailers come in different sizes, which decides the amount you charge for each hire. The hiring duration may be daily, weekly, or monthly based on the type of job.
Utility trailer rental business owners benefit from the rental fee, which can be as much as $70 on each trailer.
How To Start a Utility Trailer Rental Business
Starting a utility rental business requires you to have a lot of information to have a successful start-up.
The start-up is essential in the growth of a utility trailer business, as it is a huge determinant of its success.
To start a utility trailer business, follow the steps below:
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Adequate Business Plan
A business plan is essential when you want to begin any form of business. A utility rental business inclusive. The business plan is the goals and objectives of the business, which makes the business presentable to investors.
The planning includes startup cost, staff, equipment purchase, branding, trailer, etc.
After a proper evaluation of how much it will cost to start up the business, then you create a sales projection, profits, and loss.
A good business plan should have sections like:
- Business description
- Market analysis
- Services to render
- Funding
- Profit projection, etc.
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Business Registration
To start any business, there is the need to register under the association or body the business operates under. This is a form of membership and referential purposes.
To be referred to as a legal business, you need to register your utility rental business under the governing body of the state.
It will also help you in knowing the rules and regulations that govern the business and how they operate.
Related: How to start a skincare line with no money
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Register for Tax
Taking your time to read all about the laws, rules, and regulations governing a trailer rental business will save you a lot of time and money.
The type of business you choose to operate together with other aspects of a trailer rental business will determine the tax and obligations that are expected of you.
You will need an Employee Identification Number (EIN) if you wish to employ staff, which is beneficial if you want to apply for loans.
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Funding
You can know the total cost to startup the utility rental business through the written business plan, which begs the question: how do I fund the cost?
To fund the startup cost of your business, you can start with self-financing, request supports from friends and families, etc
You can also take loans, or grants from the banks or the government to finance the initial expenses of the business before you make a profit.
With a utility trailer rental business plan, the tax return of the business owner, and a document stating how the money will be spent, you can easily get a Small Business Loan (SBA).
Note that there is the need to have enough money before starting a business. Without such, the business will fail.
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A Business Location
After securing the startup fund, the next thing to do is the find a good and strategic business location.
The business location is very important because customers will come there to rent the trailers, so it must be very accessible.
In addition, this location must be safe and secure.
You can employ the services of scouts, real estate agents, etc. to help in securing a suitable business location.
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Purchase Equipment And Get Insurance
With the startup funds at hand and a very good business location has been secured, the next thing is to start buying the required equipment.
Have an accurate type of equipment to buy in order to stay within budget and prevent unnecessary spending.
For your business to function well, you need to get a good insurance policy. This is to ensure that your business is covered.
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Business Promotion
Without enough promotion and a sound marketing strategy, it will be difficult to make a profit. These promotions increase the awareness of your business, and the services rendered.
To promote your business you can:
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Create a website
The digital advancement of the world has made this a must. Through the website, a lot of interested individuals or companies will be able to reach you easily.
Endeavor to design a website that projects all the business represents, goals, values, objectives, etc.
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Create Social Media Sites
Social media sites increase the online presence of your business and can be used to advertise the business too.
Some of the social media sites you can open are Facebook, Twitter, YouTube, Instagram, LinkedIn, etc.
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Paid Ads
Paid ads help you target specific audiences, be it in a specific location, etc. These ads are productive.
Frequently Asked Questions
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How much does it cost to buy a utility trailer?
Answer – A used utility trailer can go for as low as $1500. However, if you want to start a utility trailer rental business, buy at least a couple of commercial-quality utility trailers, which will cost you around $6000 each.
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How much does it cost to start a utility trailer rental business?
Answer – You can start a utility rental business with at least $14,000 based on the type of business you want to operate. If you are looking at a large-scale business, it will cost you up to $40,000.
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Is a utility trailer business worth it?
Answer – Yes, you can make up to $500 per week. Over time, you can invest the profit into the business to grow to a larger scale.
Final Thoughts
A trailer rental business involves giving out utility trailers to companies for hire to help them move their bulky loads.
There are several steps involved in establishing a trailer rental business successfully, which have been duly explained in this article.
Now that you have all the information you need, what else is holding you back from establishing that business?
Start the process today!
