Running a small business is hard. Not only do you have to worry about being able to compete with larger firms in the industry, but you also do not have the big name that draws in clients.
Because of this, you are fighting an uphill battle everyday to keep your business, and your dream, alive. That is why you have to watch closely how much your business is bringing in; but more importantly, how much it is paying out.
Small companies have to be creative in how they spend money. While a larger organization can take a hit from a failed endeavor or a setback, your business is probably not financially strong enough to weather such a mishap.
You will need to be cautious in how you save money. If your business involves a vehicle or fleet of trucks, vans, or specialty-equipment, then you have a choice to make. Would it be better to own these vehicles? Could renting these be a better option?
Take some time to look at your business model and determine the needs of your business. If one way you can save money is by renting a truck rather than buying it, then look into the costs of both. Here are several ways renting your fleet vehicle can benefit your business.
Based on the Project
Let’s say that you win the bid for a particular project, and this project is one that will require a particular vehicle or piece of equipment that you do not currently own. Would it be better to purchase that vehicle or equipment, or should you rent the item instead? That is the question you should be asking yourself.
To answer: if this type of project is one you do not handle often, it would probably be best to rent. You only have to pay for the temporary use of that equipment. This can save you money in the long run because you will not be spending the full amount for the item. You will also be saving on repairs and upkeep of the vehicle.
See a Need, Fill a Need
You may need to fill an immediate need with a rental crane or scissor lift, or some other type of equipment. Your current one may have burned out or broken down and it is temporarily out of service. Fill that need and finish the project.
If your damaged forklift or cherry picker is so intensively damaged that it is going to be in the shop for a while, then you may need to rent a replacement for longer than you had hoped. Don’t consider purchasing a new one until you are certain the damaged one is beyond repair, or the repairs will cost more than replacing it.
Borrow for the Season
A shipping firm’s busiest season is usually the winter months when people start buying their Christmas gifts and shipping them off to various corners of the country. This means that your small shipping company is going to be overwhelmed with packages needing transportation to their destinations.
The same goes for a logistics company shipping products for retailers to their stores. An increase in product assortment, volume, and scheduling requires additional delivery options for your firm.
These are times when you should prefer renting the additional trucks or vans. Renting a vehicle or fleet will help you get through the peak season and transport the extra freight to its destinations. Get through this hectic time of year, then business will settle back down to a manageable level with the resources you already have.