A rental business has emerged out to be a profitable venture post-pandemic. There are multiple reasons behind it – COVID-19 being the major one. The pandemic has forced people to cut down their spending and limit their buying requirements. Eventually, rental has turned out to be a much better alternative for buyers. Instead of owning products, now buyers can fully use the product paying a fraction of the cost for the required time.
If you’re planning for a rental business, sign rental is unquestionably in demand. That is for two reasons, first safety and health signs have risen to popularity after the pandemic. Secondly, signs play an extensive role in communicating pre-defined information in everyday life. Hence, no doubt signs have a great scope in terms of producing lucrative profit for you.
1. Research Your Market
The first and foremost aspect of a successful rental business is researching the market. It is imperative to comprehensively research the market for demand, competitiveness, and accessibility. If there are existing players in your industry, you need to identify the ways and areas where you can provide the customers with better services.
Either it could be providing them with better quality signs, diversity in the product range, or closing the deal on low prices. You have to strategize everything upfront before you can actually capitalize on these opportunities.
Another way of determining the market is to talk to existing customers who rent these items on a frequent basis and understand their point of view for an ideal business.
2. Choose the Location
When you are done with due diligence and fully aware of the challenges ahead, it is essential to spot a location that offers visibility, visitors, and accessibility.
Popular and busy areas are more likely to offer great ROI than the ones that are in remote locations. As a matter of fact, airports, transit stations, and stores in the heart of the city have phenomenal chances of pulling off a staggering amount of visitors. But, it is important to acknowledge the space requirement of your business to have enough space to accommodate inventory, business operation, and parking.
The most important thing to keep in mind is that you are not too close to existing rental businesses that could reduce your chances to make significant profits.
3. Choose a Business Model
The business model you choose will ultimately change the course of your marketing campaign and how you want to approach your customers. For example, if you want to start with a physical store, your customers would entirely be based on the location you choose and the ones that visit after viewing your advertisements. However, post-pandemic, an online business model is the safest and thriving business model. Most importantly it resonates with existing buyer’s behavior and shopping pattern. On top of it, marketing a business online is quite affordable and you can even do it for free.
4. Register and license Your Business
Till this moment, you have perhaps conceptualized, researched, and strategized your business goals. Now, it is time to put it on to the papers. To keep it clear and concise, we have formulated simple and clear steps; you need to know before you can bring the ideas to reality. Here is what you need to do:
- Start with writing a business plan. A written business plan would allow you to have a bird-eye view of who, what, why, and how segments of the business. Generally speaking, you could better deal with challenges and bottlenecks by acknowledging them beforehand.
- Choose a business name. Brainstorming the right name for your sign rental business would not be easy. Why? Because at first, you need to keep it simple, memorable, and easy to pronounce, second, you have to take care that the name isn’t already used by anyone else. For this, you can use internet services or conduct a search at USPTO.gov, this way you can protect yourself from running into a legal issue. If you are planning to promote your business online, it is important to determine the availability of a domain name that is similar to the business name you choose.
- The next step is choosing the legal type of company you want to form. The simplest one with a few employees and one owner is Sole Proprietorship. If you will operate on a larger scale with a single or multiple people ownership, LLC will be the most suitable one for you. Another complex type of entity is Corporations that are mostly used by big companies.
- Finally, you have to apply for a tax id and sales tax permit. It will allow you to collect tax from customers and payback to the government.
- Get local operating permits, license, and a business account to separately manage funds.
5. Set up an Inventory
Now, when you have completely formed a framework for your business to operate on, you have to stockpile quality resources in your inventory. The most critical factor that sets two sign rental businesses could be the quality of the signs you rent. And, this is what becomes a deciding factor for your customers to choose your business over others.
Hence, apart from the visual designs of the signage, you have to closely examine each of them for quality, durability, and appeal. Moving forward, the storage plays a phenomenal role in keeping the quality of signage intact. So, you have to assign your inventory a pre-determined location to protect them from spoilage due to heat, dust, moisture, and others. Finally, you can manage your inventory easily with software like Reservety. With the help of some brilliant features, you would be in complete control of your inventory.
When you start-up with a few products or a bunch of them, you have to possess the most demandable signs in your inventory. Since a lot of customers would already be looking for this signage, you can immediately pick momentum renting this signage. Here are the most popular signs you can rent.
What are the Best Ideas for Sign Rental Business?
Here are the signs you can accommodate in your rental store. The amazing part is that they are already having a market, so it won’t be much time to draw in new customers.
Marquee letters are basically used for decoration on numerous occasions. These signs are precisely used for wedding decoration. So having them is definitely a guarantee for profits.
Road Closed Signs
Road closed signs are mostly purchased by construction contractors and also various firms engaged in day to day road maintenance activities.
Road signs consist of myriad multipurpose signs which range from traffic signs, navigation signs, and signs for people with disabilities.
Stork signs are mostly rented for birthday parties for announcements and keepsakes. They come in various sizes and can be used in different locations.
Vacation Rental Signs
Vacation Rental Signs are prominently used to promote a rental property with contact details such as website, phone number, and address.
These classes of signs serve the purpose for small businesses to designate opening hours and availability.
Neon Signs are used in cafes, restaurants, and bars and are highly demanded by event managers for different functions.
Birthday Yard Signs
Signs rental mostly arises for events and parties. Birthdays are definitely on the paramount of this list. Birthday yard signs are constantly available to place in yards to put the essential information on display to guests.
6. Marketing Your Business
There is no brainer that marketing is the key to drive awareness, engagement, and revenue. A power-packed marketing strategy can utterly transform the way how the customers may perceive and connect with your business. Keeping that in mind, you have to create an impactful marketing strategy depending on the business model you choose.
When you are going for a physical store – you have to develop your identity, build associations, and use a fuse of traditional and modern outdoor marketing to meet the defined goals.
While pursuing an online business model, you have to actively work out on digital marketing strategy. Developing an online presence may take several months, depending on the budget and resources you have. You can utilize email marketing to build a loyal customer base, SEO to drive potential customers, and social platforms to directly interact with renters.
7. How Much To Charge for Sign Rental?
While charging for signs rental, there are numerous aspects to be kept in mind. It encompasses the rental period, the number of items rented, pick-up and delivery charges, security deposits, taxes, and other costs. Based on these factors, you can formulate pricing that includes all these costs and your profit. The charging cost has to be decided upfront, so you ultimately don’t run into a misunderstanding with the customer. If you are a new business, keeping your pricing low is a brilliant way to attract more sign rental customers. Ideally business charges $100 for a week for a signboard. And, the cost is reduced in a longer time frame. However, owners can change their pricing based on their affordability and comfort.
Sign rental business prominently depends on the quality of signs, design, and their appropriateness to be used in a particular location. When you’re simply starting a business from scratch, there needs to be a greater emphasis on developing relationships and building resources. Once set-up, you can always scale your business to serve more locations and customers.