There is an interesting article featured in Rental Management Magazine that would appeal to all local rental companies (any business really) here in Australia.
The article looks at how the economic downturn in the US made made it necessary for many rental store owners and managers to change their mindset and approach their rental businesses with a “startup mentality.”
There are some good lessons in the article offered from rental business owners. Some of the comment demonstrate just how some business owners think during the good times:
“We were in growth mode for 20 years, always buying equipment and adding people, but preparing for growth is expensive”
That’s not the start up way, and it is easy to see why that type of thinking doesn’t lead to sustained success.
Preparing for growth isn’t “expensive” it is “investing”, and isn’t necessarily expensive. It is expensive if you stuff it up!
Prepare for growth by getting on the counter yourself, getting out into your yard or store, answering the phone, connecting with your customers, loading the trailers, the utes and the vans, doing the deliveries and pick ups yourself. You will be amazed at how much you learn, the opportunities that you uncover, and the relationships you will build. Do these simple things and you will grow and you will be prepared; because you are in touch with your customers (the edge of the demand curve). And it costs very little. In fact it is probably the best investment for growth you will make in ROI terms.
And this approach shouldn’t just be the start up way- it should be the way of your business. Full stop.
“This is what we did in the early days. We wanted to get our name out there. After more than 30 years, we still need to get our name out there and show people why we are the best and what the difference is. All of our competitors are cutting prices, so we need to show why we’re better and what differentiates us,”
Don’t have a startup mentality just “in the early days” have it “every day”. The team at rentoid do- and we have run successful rental companies for over 12 years.