Cranes are like the industrial project movers of the 21st century – they hang over construction sites, looming, swiveling and lifting multi-ton items. Indeed, cranes are a vital part of the construction process – without cranes many buildings simply wouldn’t get built. However, simply talking about cranes is one thing, but actually starting a crane rental business is another thing altogether. Some rental cranes have the capacity to lift over 20 tons, which means that the crane itself has to be heavier. Starting a crane business requires significant capital, knowledge of the market and a big insurance policy. You cannot be afraid of a little bargaining for advantage. Are you still ready to start your own rental crane business? Here is how to start your own crane rental business.
Know Your Local Crane Rental Market
First, you need to survey the market. It also helps if you have been in the construction industry and if you have a finger on the pulse of the industry. When it comes down to it, it may only be smart to start a crane service if your community or city needs one. There may also be the case where your city or community already has a crane corporation that construction companies are not happy with. This is a great opportunity to jump in and take a corner of the market.
To determine if you have a good potential market, do a market research survey of the existing crane rental companies. They will be offering services like heavy hauling, rigging services and various cranes for rent. You can easily look up their social profiles to see how their services are selling. Are their customers happy? Do they have great reviews? If not, it might be a sign that you can compete with the existing corporations.
Secure The Funding For The Job
Also, it is important to have the capital you need to start a crane rental business. You will need at least a million dollars to start your business. If you think about it, there are many start up costs included in starting and running a crane rental business. For instance, you need insurance, space, employees and, of course, a fleet of cranes. So, it is important to meet with and strike deals with venture capitalists. These venture capitalists will be able to give you the money upfront in exchange for some kind of percentage in the corporation.
If you do not want to go to a venture capitalist, you may have to leverage your assets to finance the new corporation. It may be very difficult to secure a bank loan, alternative loan or other types of funding over $500,000. Once you have been selling crane services for a while, you can looking into other sources of funding.
Build Your Crane Fleet & Equipment
Next, you need to start building your crane fleet. What is a rental company without a fleet of cranes? Indeed, a crane business is not much without a fleet of quality cranes, which is why Bigge Crane and Rigging is probably the best dealer of large cranes for industrial and building purposes. When it comes down to it, you want to go with a name brand, because this will not only ensure that the cranes will last and that your investment was a wise one, but also because you want to offer construction companies quality cranes for their building purposes. Moreover, brand name cranes will ensure safety records and certified equipment are provided.
When building your crane rental fleet, you will want to have a variety of cranes. You will want to consider carrying truck cranes, tower cranes and crawler cranes for various projects. Many rental providers also have rough-terrain cranes for specialized jobs. On top of that, you can purchase trailers to haul heavy loads and rigging equipment for rigging jobs. Without a full fleet of crane rentals, you could end up missing out on sales.
After you have been selling crane rentals successfully, you can reinvest into your more popular selling equipment. If crawler cranes and tower cranes are doing well, it might pay off to buy cranes for sale in bulk. Then, you can add on crane services like crane parts, certified labor experience, job inspections and other heavy lifting machinery. Before you know it, you’ll be selling crane services coast to coast.
Consider Buying Used
Pre-owned cranes can be a more affordable option for entrepreneurs on a budget. But, they will still require quite a large up-front investment, just as an education franchise would if you were to consider those opportunities. Before ever renting out used cranes, they need to all be inspected and properly maintained. As long as owners make sure to do that, buying used cranes could be a great way to start a crane rental business with a limited startup budget.
Protect Your Rental Corporation
Lastly, you want to have your crane company insured. This is a crucial process of starting a crane rental company, because you want to be able to protect your business, assets and your worker’s livelihoods. It is very rare that anything should happen – mainly because of how safe and secure cranes are – but you always want to be safe and not sorry. When it comes down to it, it could be a crane operator’s fault if anything does happen, but the last thing you want is for your crane services to get blamed. So, be sure to take out a premium business insurance policy – just so your crane rental company is totally protected.