Jim’s Rent-ALL

 

1. Executive Summary:

Mission- To proved low cost rentals to individuals who do not need these items on a full time basis.

Highlights- This service is marketed towards the weekend warrior type that need tools or photo equipment on a case by case basis. Individuals who can not afford to go out and by the specific equipment.

 

1. Company Description:

Jim’s Rent-all is the DBA for JHM Photography. This is an LLC, single employee. A second employee may be brought on to assist in responding and returning the items. 

 

Jim’s Rent-All is a rental business for general power tools, to include drills, circular saws, reciprocating saws, grinders, tables saws, air compressors, general tool boxes, and power cubes. 

It will also supply rental needs with photography in the form of studio kits. Each kit will include two soft lights, a backdrop stand, and a (1) white and (1) black drop.

 

The items will be kept in a storage facility (double locked) and a secure location at $40/month.  

 

1. Market Analysis:  

As far as completion goes, the big box stores do offer tool rentals. I have found no other local individuals or companies that rent tools. For the photography equipment, only one camera store rents rents equipment. It is located about an hour from my location. I have contacts with local photo groups.

I believe that this type of opportunity can be opened and profitable in other states as well. The cost would come with purchasing tools and camera gear. 

 

1. Marketing and Strategies:

I will promote my business on specific FB groups that are local to my area and broaden from there. I will contact local businesses an request them to allow me to hang flyers in applicable areas. I will look into ads on FB and Instagram as well, targeting specific groups of people in my area.

 

My pricing will look like this; 5 hour, 1 day (13 hours), and 1 week for rentals. For the tools/photography gear I have now, this is what my price list will look like:

 

Tools

Drills (qty 2) $18/$25/$100

Table Saw (qty 1) $25/$55/$130

Grinder (qty 2) $10/$20$50

Circular Saw (qty 1) $18/$25/$100

Reciprocating saw (qty 2) $18/$25/$100

Air Compressor  (qty 1) $25/$55/$130

Tool Box w/ tools ((qty 2) $10/$20$50

Power Cube (qty 1) $30/$55/$130

 

**deliver of requested items would be available for an additional $20 within a 10 mile radius. $25 for anything further than 10 miles.

 

Photography Gear

 1 studio kit includes

2 Soft lights

Backdrop stand

Black backdrop

White backdrop (Total cost of all components is $160). $40/$80/$120

 

*ALL items will require a $75 deposit

 

Drones

Drone rental as well as private lessons

purchase of the drone would be the client

assistance with registering the drone as well as the certification required for recreational flyers (30 minutes)

2 hour instructional period (setting up the apps on the phone, general flying skills)

 

Cost associated with this would $250 for the class/registration

 

To rent my drones (Must already have “Trust” from FAA) $70/$130/$200 ($200 deposit)

 

Prior to business going live, I would purchase an additional studio kit. I would purchase preowned tools to include in my rental. Eventually I will replace all tools with new tools, selling the old ones at a discounted rate, 

 

1. Organization and Management:

I will be the the only person involved until the business begins to make a profit. At that time, I will bring on an employee at a part time status and pay them $150 a week. They would be responsible for “Release and Recovery.” He or she would be “Releasing” the times to the customer at the storage unit and “Recovering” the times and placing them back in the storage unit. Both meetings should take less than 30 minutes for each interaction.

Once a week and inventory would conducted to ensure that all tools, accessories, and other miscellaneous items were accounted for. I would raise the wage to $200 a week if the business is generating more rentals and profits. The employee would take deposits and payments and be responsible for getting wavers or responsibility signed. 

Basic math skills and general attention to detail would be required, as well as a driver’s license.

 

1. Product or Service:

Please refer to “Marketing and Strategies” for detailed information on pricing.

There will be no patents, copy rights or intellectual property related to my product/services

 

1. Fund Request:

I own everything listed at this point in time. Items that would need to be purchased/funded are the following:

 

Storage unit rental

2 options: 5’x10’/$40 a month ($480 annually) or 10’x10’/$60 a month ($720 annually) 

Totes:

All tools would be placed in an appropriate sized tote to keep all items easily accounted for. The totes could range in price from $7 to $20, depending on the size and durability of said totes. I would also make photographs of items to be included in each tote, laminate them, and place the into the respective tote for ease of inventory.

Replacement parts should be on hand and purchased as needed. 

Shelves would be purchased to help with order and cleanliness with in the unit.

 

1. Financial Projections:

The following projections are base on each item being rented for at a minimum of 2 days per week. ( will be using the “day-13 hour” figure for my calculations)

 

Drill (2 qty) 25x2= $50 for 2 drills, it would $100 

Table Saw $55x2= $110

Grinder (2 qty) $10x2= $20 for 2 grinders it would be $40

Circular Saw $25x2= $50

Reciprocating saw $25x2= $50 it would be $100 

Air compressor $55x2= $110

Tool box $20x2= $40

Power Cube $55x2= $110

 

Photography studio kit $80x2= $160

 

Drone $130x2= $260

(1) class of instruction $250

 

1 Week estimates would total $1330 a week. $1330x4 weeks= $5320 Monthly (gross) .

Cost associated:

Storage facility $40

Company Insurance (? Estimated at $300/month)

Tool replacement/repair $100/month

**employee when added $150/week= $600 a month

 

Total estimated monthly cost: $1040

 

$5320-$1040= $4280 (tax rate is 4.225% on MO; $5320/4.225%= $225) $4280-$225= $4055

 

Monthly net of $4055 (estimated ROI)

 

**Having a website built and managed/maintained is not included in this start up.

 

If needed, I might attempt to secure a loan of $2000 to purchase an addition studio kit, pay for a website development project, and lawyer fess/paperwork.

 

This business plan is an estimation. It has not been put into action yet. All profits and costs are just an estimate. I would consider adding and iPad with internet access to make renting and completing forms on line easier for all parties involved. With very little start up cost involved, I believe this could be a profitable business in less than 6 months.