Home appliances renting is a new trending business that can be started at any metro city where people generally relocate for their professional requirements. This is an innovative and lucrative business model for startup entrepreneurs.
The home appliances renting business is simply providing the different home appliances including furniture and electronic equipment to the clients in exchange for monthly specific rent.
Many people like to have essential home appliances on rent because of major two reasons. One is, they can enjoy the product without investing much money one time like purchasing the appliances.
Another reason is there is no shifting hazard. As the consumer lifestyle is enhancing rapidly, it creates a substantial demand for home appliances renting opportunities.
Home appliances renting is most preferred for the people who are likely to move on fairly quickly and so might prefer not to buy the appliance outright and have to move it around.
Home Appliances Renting Business
Here are the 8 steps to follow to start a profitable home appliance renting business:
1. Create a Home Appliances Renting Business Plan
A detailed comprehensive business plan is a must in starting this business. Do some market research prior. Determining the target niche is important. Home appliances cater to different types of furniture, laundry equipment, kitchen equipment, etc.
You need to find out the basic home appliances demand in your area. Plan accordingly. Plan your marketing strategy. Financial planning is the most important. You also need to have enough space to go down.
Calculate your startup budget with appliances purchase cost, godown rent, etc. These will help you in getting confidence in business feasibility and also in getting finance.
You can approach investors with your business plan. Else you can apply to a bank or any financial institution. There are also several financial institutions that have a specific plan for hire purchase leasing.
Some of the basic topics your business plan for home appliances renting company are the following:
- Initial and recurring costs
- Target customers
- Pricing plan
- Hiring manpower
- Marketing plan
2. Register your Busines
Register your business with the proper authority. Check with an attorney what licenses you will need to obtain. Different states apply different types of permission for rental businesses.
For example, if you are from the United States, forming an LLC will provide you with added benefits at some extra cost.
3. Select a location
If you have a spare room or space in your home, you can start this business from the home location also. Generally, deals are made at the customer’s premises. You will need to have storage and small office space.
4. Develop a Rent Agreement
A rent agreement is one of the most vital documents for this business. Consult with an attorney and prepare a standard appliances rent agreement. Mention all the detail carefully there. You may offer your client a purchase deal also after a certain period of renting.
5. Purchase Equipment
In the home appliances renting business, you will need to arrange the delivery and installation also. In some cases, you may charge an extra amount from your client. Your arrangement has to be done by you.
Purchase the appliances according to your plan. Try to deal with the direct manufacturer. For a branded product at least deal with a stockist or wholesalers to get the best price.
6. Hire Manpower
Hire manpower as per your requirement. Pay attention to hiring reliable and well-behaved delivery boys.
7. Have a Pricing Plan
Fix pricing. You may offer a discount for more than two or three products. You may also offer a combo pack for the bedroom, living room, kitchen, etc.
8. Get Clients For Home Appliances Renting Business
Promote your service offline and online. Publish an advertisement in the local newspaper as classified on the real estate page. Contact the real estate agents who deal with house rent especially. Register your business with online classifieds and marketplaces also.
Create your own website. Use social media carefully. These will definitely help you in generating sales leads for home appliances renting business promotion.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.