Borrow My Tools is a start-up company serving the San Mateo, CA community with home improvement tools for lease or rental. The business has been formed as a California S Corporation with Josh Taylor as the primary shareholder. Borrow My Tools will offer customers a range of common home improvement tools with benchmarked levels of customer service.
San Mateo has two distinct market segments that are Borrow My Tools' most attractive customers. The first segment is individuals who are undertaking a home improvement project on their house. While some of these customers know exactly what they need in terms of tools, many of them are coming to Borrow My Tools specifically for the expertise and guidance for the home improvement project. The individuals have 54,050 potential group members. The annual growth rate of this segment is 5%. The second segment of customers are handymen who have been hired to complete a project for a client. Because the cost of purchasing tools is so high and there are so many tools to lease available, handymen are attracted to Borrow My Tools because of their plentiful leasing and rental options. The handymen have 1,200 potential segment member and a 4% growth rate.
Borrow My Tools leases and rents a variety of tools. The tools have been categorized into three large groups: wood, exterior, and assorted. All of the tools that Borrow My Tools leases or rents are of the highest quality and are in outstanding condition. Borrow My Tools has developed a strategic relationship with a premier leasing company to allow customers to lease tools from them. Leasing is advantageous in many ways: the customer always has the nicest/newest version to work with, precious capital is not tied up, lines of credit from banks are not effected by leases, and certain tax advantages are conferred to the lessee.
Josh, a veteran of both the contractor industry and the tool rental/leasing industry is taking his industry observations and carving out a niche in the industry by emphasizing two competitive edges that will greatly assist Borrow My Tools in gaining market share:
- Highest-quality product offerings: If customers are going to lease or rent tools they want to use the best products. Borrow My Tools' procurement process only purchases the finest tools in the respective category, ensuring that customers will be thrilled with the selection. In addition to starting with the highest quality tools, the products are meticulously maintained so that they continue to appear as new.
- Benchmarked customer service: The function of Borrow My Tools sales assistants is to help the customer in any way possible. This includes determining which tool is best for the job, explaining the proper way to use the tool, as well as offering suggestion on how best to complete the job. Every sales agent is the customer's personal expert. It is Borrow My Tools' mission to ensure every customer has their expectations exceeded.
Borrow My Tools is an exciting new concept that recognizes the competitor's customer service short comings and leverages Borrow My Tools' phenomenal customer support to address the market niche that wants a positive experience and needs assistance with their lease or rental. By adhering to a comprehensive rental business plan strategy, Borrow My Tools will quickly gain market share and transform this start-up's business into a profitable venture.
Borrow My Tools' mission is to offer the finest selection of home improvement tools for the San Mateo Community. Borrow My Tools will support the tools with the finest customer service. All customers will have their expectations exceeded.
Keys to Success
- Maintain a sufficient inventory of high-quality tools, kept in excellent condition.
- Ensure all staff are extremely knowledgeable on all of the offered tools.
- Maintain strict inventory and accounting controls, reducing overhead while assuring availability at the same time.
- To have 70% of the tools rented by month seven.
- Reach profitability by year two.
- Achieve self-sustaining revenue by year two.