We will terminate our Kubota and/or our Briggs stratton agreement if asked to invest additional time or money. Currently our inventories are more than sufficient to support our rental business. Our analysis has shown service work to be a loser. Review the potential for Total quality management in the business. Financial we have reduced our personal income. We are practicing cost containment on a daily basis.
Equipment, rental, business, plan - product and service, market potential
The current management goals will reduce and contain these costs. In 1991 we could have shown additional income of about 8,459.26. This was a paper loss on a john deere Tractor and a kubota riding Lawn Mower that were sold primarily because they were beginning book to cost us a lot more in repairs than they could possibly earn. This adjustment should be noted when comparing 1991 to previous years. This comparison indicates an improvement in our revenue over previous years related to the deforestation addition of Damage waiver and our aggressive rate increases beginning in 1990. Review conclusions even before the end of 1991 it became apparent that several changes were still needed to improve our financial situation. Our analysis merely highlighted much of what we already believed. Even though our revenues were up in 1991 we still did not have the strong financial showing possible primarily due to higher labor and equipment repair costs. As a result of this information, we have made certain decisions and established some long and short range remedies as follows goals and projections for 1992 Management First, we have already decreased our workforce by two employees and will maintain this level, except for possibly. We will be concentrating on strictly the rental business and extensively limiting our repair business to commercial accounts. This should decrease scheduling problems we have had with homeowners and other individuals.
The results of adding manpower are clear. We slightly increased our profit from "labor and deliver" plus "net sales income" by garden 559.However, when you subtract the increase in total wages paid over previous years, you can see all we did was create a deficit of http 13,393. In addition our increase in "Equipment Repair Expenses" are two-fold in nature. First, because of the manner of accounting (non-cost we are unable to track all items to the proper department. Therefore, the shown expense account is higher than it should be, by about 3,218.00 or 47 percent over 1990. Much of this expense is related to customer repair work and not rental maintenance. Secondly, we have had excessive repair costs on some of our large equipment (Skid Steer loader, Trencher/Backhoe, tractor, and one compressor) of approximately 6,952.00.
The potential is here. Expenses went up as well: Wages paid to employees were up 13,952.00 or 33 percent and equipment repair costs were up 14,610.00 or 72 percent. Wages were up because, we increased our labor force by one full-time individual in early 1991. Prior to that we had added a third full-time person in 1988. This was to provide the necessary personnel required for the additional repair volume created by adding the kubota and Briggs stratton line. Due to the nature of our business our efficiency per man hour decreased proportionally making the addition of outside service the work not profitable. This fact had escaped our analysis because all of our personnel shared responsibilities and duties. Service was also the only area where we encountered substantial competition.
Review of financials: 19 revenues are up substantially: (Balance Sheets and income statements outlining this have been prepared and are available upon request.) Rental is up 8,059.00 or 4 percent before implementation of Damage waiver. Rental sales Combined are up 34,274.00 or 13 percent. Gross Profit is up 32,363.00 or 17 percent. Total Income is up 29,307.00 or 13 percent. Rental revenue/Equipment Cost is up from.95.06 Rental revenue/Net Rental Equipment is up from.39.69 or an 18 percent improvement. These improvements reflect our rate increases beginning in October 1990, which made up for no real rate increase since 1987. As a result our return on equipment investment in Bradenton has improved substantially.
Starting an equipment rental business?
When we opened our business in see 1984, unemployment in Bradenton was at one of its highest levels and the biography mines were doing poorly. Because of this, we and experts from quick rentals performed detailed market analysis prior to making our final decision. Quick rentals provided regional and community market and site location analysis and start-up aid. Bob Shafer who owned quick rentals, and his family had extensive experience in this industry, having opened over 150 stores through quick rentals. The potential for success was here especially with the bilk contract.
In addition, the size of the community and our knowledge of the existing rental store indicated that we could soon be the only equipment rental business in Bradenton. Since 1988 we have been the only rental equipment business in this market area. We know the current market potential for Bradenton is only partially reflected in our historically-based financial projections. Certain rental equipment additions and planned construction for will enhance our revenues for the near future. Further information on the local economy, including recent newspaper articles are available upon request.
We are a ryder Truck rental Agent. In that capacity, we are able to provide consumers with a complete range of moving needs, from trucks to dollies of all kinds, pads, trailers, towing equipment, boxes, and related supplies. We are a kubota consumer Products dealer with the ability to sell parts for the complete kubota Tractor line. The bulk of our profit and sales is directly related to bilt Contract. And the mines in our area.
We are a western Union Agent with the capability to send and receive money, mailgrams, and telegrams. They provide an ibm computer which we also use to run the business. In addition we are a briggs stratton Service dealer. However, we have decided as of March 1, 1993 we will no longer provide small engine repair service to walk-in trade. We will limit this end of our business to the more lucrative commercial trade which will also reduce our manpower requirements and make it easier to schedule the work around our needs. We will no longer allow outside repair work to conflict with the needs of our rental business. Market potential and competition rich Rentals has been in business now for almost eight years and we have maintained detailed financial information since the beginning. Our projections for 1992 are included in this business plan and are based on historical data, and augmented with the latest charges that are outlined in this plan. In addition we have maintained records of most requests for equipment that we were unable to fill for whatever reason, and thereby have an accurate estimation of demand.
Equipment, rental, service, business, plan
We provide complete written "how to" information on all of our equipment and detailed verbal or visual explanations when needed. We provide pickup and delivery for professional a fee. Last but far from least, when our customers have a problem, we go to them. The completion of their job becomes our. We also provide, for sale or rent, most accessories needed to use our tools and equipment. We provide "damage waiver" to create a worry-free environment for our customers and ourselves by charging a ten percent mandatory fee. This has been very successful in our operation.
Long term, we wanted a business that was in a growth industry with greater opportunities for the entire area. To open a family-owned business in which our children would later have the opportunity to participate and learn just how important small business is to the future of our country. The equipment rental business met all of our needs. Product and service, our primary product/service mix is: The rental of tools and Equipment. If you have a job to do, we have a tool to make it easier and quicker. Service to our customers, both professional and "do-it-yourselfers is a primary part myself of our daily operation. We must first provide equipment that is in good working condition. We must provide the equipment when it is needed. When necessary we will provide our equipment at a competitive price, but always at a profit.
of 1983, my wife and I began discussing the possibility of relocating to Bradenton, Florida and starting a family business. We were attracted to Bradenton because of its proximity to family, the lifestyle, and the ability to raise our children in a more controlled environment. After months of discussion, market studies, and reviewing several different potential business opportunities, we decided on the equipment rental business. The equipment being rented by the existing equipment rental business was in very poor condition and they had recently filed Chapter 11 Bankruptcy. We spent time evaluating their particular circumstances and determined that their failure was primarily related to overextension financially, brought on by the tremendous drop in oil prices significantly hurting this area, as well as an absentee owner. The salient points in our consideration were as follows: to provide our family with long-term financial opportunity and to provide an adequate standard of living. To have a business where competition could and would be limited.
We have used the services of University of southern Florida's Business Analyst Program, Small Business development Center, and our accountant to analyze the problem. Our large number of assets and varied services have made our situation difficult to analyze. However, we now know the basis for our cash shortages, and they are as writing follows: The addition of small gas engine repair to our services. Increase in our labor force to accomplish the above. Financing the needed small gas engine parts inventory through existing cash flow and accounts payable. The age of some key rental equipment. Our low equity position. This plan specifically addresses several methods that we will use to correct the cash flow, profitability, and equity deficiencies. We have already initiated several changes that have had positive results.
Musical, equipment, rental, business, plan in Nigeria
Type of lease term: Fixed end date, automatically renewing, automatic Renewal means that the resume lease continues indefinitely on the agreed upon period (weekly, monthly, or yearly) until either party gives notice to the other party that they will be terminating the lease. Photo by: yves Roland, business plan, rich rentals 777. February 1992, rich Rentals is an equipment rental business providing a wide variety of tools and machinery for the do-it-yourselfer. This family-owned venture seeks to provide a competitive service to its customers and secure a long-term financial opportunity and livelihood in which the entire family can participate. Overview, business objectives, product and service, market potential and competition. Review of financials, review conclusions, goals and projections, market analysis. Sales plan, promotional, organizational, operations, timing, financial projections. Overview, since 1988, our business has suffered from cash constraints.