There is no doubt that Construction Equipment leasing business in Africa is a promising opportunity to venture into with strong prospects in Africa.
Just like any other booming business leasing construction equipment has its own critical success factors.
In this section, I will share three very important things you should keep in mind before you make a move to enter this interesting industry.
1) It is a capital intensive business
Leasing construction equipment simply means most companies and individuals cannot afford the equipment so they opt to lease.
If everybody could afford their own tractor, warehouse or construction equipment, they would own them.
The edge you will have in this business is the high cost of the hired items, which is exactly the reason why customers will come to you to hire or lease.
Therefore when venturing into the business ensure you have a good capital that can allow you serve more than ten clients at the same time who probably need the same equipoment.
2) Your equipment is the heart of this business. Take good care of them
Keep it in mind that most of your clients will come over and over therefore keep your equipment in good condition. Ensure you give them good service to ensure you have repeat clients.
One of the great things about the leasing/hiring business is that anytime your equipment is with a client, it’s very likely making money for you.
And this is why you need to ensure that your property/equipment is in good working condition at all times.
As the owner of the equipment, it is your responsibility to ensure they are operated, managed and maintained according to the recommended standards. It’s important that you strike the balance between utilization and maintenance.
Don’t forget, your assets/equipment cannot make you money if it’s broken down or out of service.
Poor maintenance and management is the single biggest reason why many hiring businesses go out of business. The owners are often carried away by the money they’re making and forget to properly service and maintain these assets.
3)The terms and conditions of hiring your equipment must always be clear
In dealing with clients who hire your equipment/property, you must always set clear terms and conditions for the use of your asset.
If not, you’ll be encouraging people to cross the line, and they may be reckless with your equipment, and probably damage it.
It always helps to have your clients sign your Standard Terms and Conditions of Use during the hiring transaction to ensure that each party knows their responsibilities and expectations.
