Free Heavy Equipment Rental Service Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $110,000 for the development of a heavy equipment rental business while showcasing the expected financials and operations over the next three years. Heavy Equipment Rental Service, Inc. (“the Company”) is a New York based corporation that will provide for the rental of construction equipment to customers in its targeted market. The Company was founded by John Doe.
1.1 Products and Services
The Heavy Equipment Rental Service is primarily in the business of renting equipment in conjunction with minor and major construction sites that require specialized construction equipment.
The Company will maintain an expansive inventory of construction equipment that are commonly used in conjunction with construction. Currently, Mr. Doe is sourcing a number of vendors from which the business can acquire large inventories of rentable products.
The third section of the business plan will further describe the services offered by Heavy Equipment Rental Service, Inc.
1.2 The Financing
Mr. Doe is seeking to raise $110,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. The financing will be used for the following:
Acquisition of a Compan vehicle for delivery.
Financing for the first six months of operation.
Heavy equipment inventory purchases.
Mr. Doe will contribute $25,000 to the venture.
1.3 Mission Statement
Heavy Equipment Rental Service, Inc.’s mission is to become the recognized local leader in its targeted market for rental of construction and heavy equipment.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience as an entrepreneur. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the
expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target construction companies and contractors within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Heavy Equipment Rental Service, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, Heavy Equipment Rental Service, Inc. requires $110,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an
investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of Heavy Equipment Rental Service, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of Heavy Equipment Rental Service, Inc. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
3.1 Rental of Heavy Equipment
The primary revenue center for the business will come from providing construction companies and contractors with a plethora of construction equipment. Equipment that the business will provide includes, but is not limited to:
3.2 Ancillary Services
The Company will generate secondary streams of revenues from other services related to renting equipment such as delivery of items, setup, onsite management and cleanup/pickup of equipment. Management expects 20% of the Company’s aggregate revenues will come from these services.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the equipment rental industry, the customer profile, and the competition that the business will face as it progresses through its business operations.
Currently, the economic market condition in the United States
is moderate. Unemployment rates have declined while asset prices (such as equities and real estate) have increased significantly. As such, the Heavy Equipment Rental Service will be able to remain profitable and cash flow positive at all times through its high gross margins.
4.2 Industry Analysis
The tools and construction equipment rental and supply business consists of 4,500 suppliers across the Untied States that rent saws, presses, drills, cranes, large scale construction equipment, and related items used in conjunction with construction.
Among these market agents, aggregate yearly revenues are approximately $4 billion dollars per year. The industry employs more than 30,000 people, and provides annual payrolls in excess of $900 million dollars.
The growth of this industry has remained on par with the growth of the economy in general, and is expected to remain as such as time continues.
4.3 Customer Profile
The primary clients of the Company will consist of small to medium sized construction companies and contractors. Among these customers, Management has outlined the following demographics:
Operates as a construction company.
Operates as a general contractor or subcontractor.
Annual revenues of $250,000 to $5,000,000
Annual EBITDA of $100,000 to $1,000,000
4.4 Competitive Analysis
This is one of the sections of
the business plan that you must write completely on your own. The key to writing
a strong competitive analysis is that you do your research on the local
competition. Find out who your competitors are by searching online directories
and searching in your local Yellow Pages. If there are a number of competitors
in the same industry (meaning that it is not feasible to describe each one) then
showcase the number of businesses that compete with you, and why your business
will provide customers with service/products that are of better quality or less
expensive than your competition.
5.0 Marketing Plan
Heavy Equipment Rental Service, Inc. intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Company.
5.1 Marketing Objectives
Develop an online presence by developing a website and placing the Company’s
name and contact information with online directories.
Implement a local campaign with the Company’s targeted market via the use of
flyers, local newspaper advertisements, and word of mouth advertising.
Establish relationships with general contractors througout the target market.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow Heavy Equipment Rental Service, Inc. to easily target individuals and businesses within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the heavy equipment rental services that the Company is selling.
Heavy Equipment Rental Service, Inc. will also use an internet based strategy. This is very important as many people seeking local services, such as renters of construction equipment, now the Internet to conduct their preliminary searches. Mr. Doe will register Heavy Equipment Rental Service, Inc. with online portals so that potential customers can easily reach the business. The Company will also develop its own online website showcasing the services offered by the business, relevant contact information, and preliminary pricing information.
Finally, the business will develop ongoing relationships with general contractors that will subcontract the rental of construction equipment to the Company.
In this section, describe the pricing of your services and products. You should provide as much
information as possible about your pricing as possible in this section. However,
if you have hundreds of items, condense your product list categorically. This
section of the business plan should not span more than 1 page.more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
The Company has based its
proforma financial statements on the following:
Heavy Equipment Rental Service will
have an annual revenue growth rate of 16% per year.
The Owner will acquire $110,000
of debt funds to develop the business.
The loan will have a 10 year
term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. In the event of an economic recession, the Company may have issues with top line income as individuals and businesses scale down new constructions. However, despite decreases in revenues, Heavy Equipment Rental Service, Inc. will be able to remain profitable due to the very high gross margins generated by the business.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis