Tools Rental Business Plan

START YOUR OWN BUSINESS PLAN

Rate this plan
(3.7/5, 9 votes)

Strategy and Implementation Summary

Borrow My Tools will seek to leverage its competitive edges to quickly gain market share. Borrow My Tools has developed a marketing strategy that will generate visibility for the company regarding the various services that it offers. The sales campaign will have the goal of converting possible customers or one-time customers into dedicated, frequent users of Borrow My Tools' services. The proper implementation of these strategies will be a key element in Borrow My Tools market penetration and growth into a profitable business.

Competitive Edge

Borrow My Tools will focus on two key elements which comprise the competitive edge, an advantage that will assist in fast growth in the market:

  • High quality products: Borrow My Tools will only rent the highest-quality tools. For so many customers the decision of who to lease/rent from comes down to the tools that they have to use. Are the tools high end, industrial quality? What is the condition of the tools, have they been well maintained?
  • Outstanding customer service: Borrow My Tools recognizes that in order to be competitive, it must support leases and rentals with the highest quality customer service. All sales agents are trained in the various tools. In fact, the training is supplementary to the existing knowledge of the tools. The sales agents are hired based on their existing knowledge. Another component of the customer service is the assistance the agents provide in terms of offering insight into "best practices" for the given job that the customer is looking to fulfill.

Marketing Strategy

Borrow My Tools will use a targeted marketing campaign as a way of developing visibility for the company. The marketing campaign will concentrate on the following consumer benefits:

  • A wide range of leasing and rental options.
  • A good selection of the most popular tools.
  • All tools are top of the line, meticulously maintained.
  • Borrow My Tools offers the highest level of customer service. Each customer's hand will be held through the entire process ensuring that their needs are met. If a customer has never used a specific tool before, Borrow My Tools will show the customer exactly how to use it so that they have complete comfort in the operation of the tool.

Several different marketing methods will be used:

Newspaper Advertisements
Borrow My Tools will place newspaper advertisements in the local newspaper to raise awareness about the various services that it offers. 

Yellow Pages
Borrow My Tools will also have a half page advertisement in the Yellow Pages. It expects a significant amount of business from the Yellow Pages. This is based on the philosophy that when a person is interested in a service they are not familiar with they will consult the Yellow Pages.

Sales Strategy

Borrow My Tools' sales strategy is concerned with the need to convert one-time users into frequent customers. This is especially important because any person that has a home and an improvement project has many different projects. This also applies to the handymen whose full-time job is the completion of projects that require specific tools. If Borrow My Tools is able to impress the handymen then they will make Borrow My Tools their preferred vendor.

The assurance of increased sales, driven on repeat business is quite simple, ensure that customers always have their expectations exceeded. Additionally, a customer who is happy with a service provider is will tell friends about their positive experiences. A referral from a personal friend based on experience are often the strongest recommendations that can be offered.

Sales Forecast

The sales forecast will be tracked by the different tool categories that Borrow My Tools offers. The cost of goods sold will be based on the time it takes for the service department to review each pice of leased/rented equipment and bring it back to like new specifications for the next customer.

The sales forecast is a conservative prediction of sales. It is broken down by month for year one and tracks yearly totals for years two and three. Preceding the following table are graphical representations of the forecast by month as well as year.

Sales Forecast
Year 1 Year 2 Year 3
Sales
Wood $26,550 $81,080 $94,400
Assorted $23,099 $70,540 $82,128
Exterior $20,178 $61,621 $71,744
Total Sales $69,827 $213,240 $248,272
Direct Cost of Sales Year 1 Year 2 Year 3
Wood $2,655 $8,108 $9,440
Assorted $3,927 $11,992 $13,962
Exterior $3,834 $11,708 $13,631
Subtotal Direct Cost of Sales $10,416 $31,808 $37,033

Milestones

Borrow My Tools has identified several milestones that will assist the organization in reaching pre-identified goals. Milestones were chosen to be realistic, achievable, yet lofty. The following table details the specific milestones, what department is responsible and the time frame for accomplishment.

Milestones
Milestone Start Date End Date Budget Manager Department
Business Plan Completion 1/1/2004 2/1/2004 $0 Josh Business Develpment
Retail Space Secured 2/1/2004 3/1/2004 $0 Josh Business Develpment
Lease Vendor Relationships Secured 3/1/2004 3/15/2004 $0 Josh Business Develpment
Open For Business 3/15/2004 4/1/2004 $0 Josh Operations
Totals $0