This is part of a series on How to Start, Run, Grow & Fund a Business in South Africa. These pages have to be read in order:
- How to Start, Run, Grow & Fund a Business in South Africa (using what you currently have)
- Choosing the right Business Idea for You
- Writing the Business Plan
- Supply Value Logistics Chain – Research and Understand Your Industry
- Raw Materials Business
- Equipment Business
- Skills Business
- Manufacturing Business
- Distributor Business
- Wholesale Business
- Retail Business
- Service Business
- Hiring / Rental Business
- Test if Business Idea is right for you
Before I go any further, I am going to look at a business that we include in our supply value logistics chain the hiring/rental business.
Previously we had looked at the retail business, that is the business that sells to the consumer or end-user. Now in that business, the buyer takes possession of the item. Sometimes a consumer does not have the money to outright own the item or simply have no need to own the item. Not only individuals but businesses as well. This is the market that the hiring/rental business caters to.
Business to consumer
The most common rental businesses are probably property and vehicles, but individuals use rental companies all the time, for functions, birthdays, wedding dresses, stages, tents etc.
Business to business
Hiring and rental businesses are even more prevalent in the B2B sector, where many companies opt to rent rather than own anything from computers to plants (yes plants). The most popular businesses are premises, tools/equipment and heavy machinery (where we have a few players in the local market). Other things being rented are shipping containers as temporary site offices. Many bars don’t own their pool tables and jukeboxes but rent it as well. At some events, almost every component is rented from the fence to the stage to the lighting and sound equipment.
Another thing to point out is that this business offers a very important service to small business entrepreneurs who would not have been able to profitably operate if they had to buy all the equipment they need.
Rent to own
There is a “rent to own” (AKA rent-to-buy) business model in this industry in which the person usually rents the item for an extended period of time and once they reach a certain period they take ownership. In this business, any tangible item furniture, appliances, vehicles etc. can be rented in this manner and the person renting can terminate the arrangement at any time by simply returning the goods.
Hiring / Rental Businesses on Khoi Capital
Start Your Own Photo Booth Rental Business
Start a Stage Rental Business
Start a Pool Table Hiring Company
Start a Catering & Hiring Company
Build and Hire Out Mini Golf (Putt-Putt) Courses
Start a Shipping Container Rental Business
Hire out Slot Car Racing Tracks
Start a Temporary Fence Hire Business
Hire out Popcorn, Candy floss and Slush Machines
Start a Tent & Marquee Hire Business
Start a Scaffolding Hire Business
Start a Car Hire Business
Start a Wedding Dress / Bridal Gown Hire Business
Start a Caravan Hire / Rental Business