To rent the latest model of construction equipment to the people involved in the construction business.
Product/Service Description
The business involves buying the latest construction equipment and renting them out to anyone who is involved in the construction business.
Market/Scope and Potential
The construction business in India is growing enormously because of the fast development that is taking place in the country. One of the major requirements of this business is modern equipment. Most of the people involved in the construction business do not prefer to buy any construction equipment because of the huge investment and lack of space to keep them. An occupation that deals with giving the construction equipment on rent can utilize this opportunity to build a great business.
Opportunities
There is a great demand for construction equipment in the market.
Since India is a developing country, construction is an ongoing process.
It is a very profitable business.
This business is expected to grow in the years to come.
Risks
It is a capital-intensive business.
Since all the construction equipment are large in size, they occupy a lot of space.
Maintenance of these equipment is costly.
The business needs to be insured.
Companies like Mahindra prove to be big competitors.
Good contacts with builders, contractors and stakeholders will help to spread the word about the business.
New high-tech machines keep coming in the market, so older ones become obsolete.
Entrepreneurial qualities
The business needs huge capital, so any person who can invest a lot of money can enter the business. The person should also be able to manage a team of workers and drivers who will operate the equipment. Since the competition in the market is more, good contacts and relationships with people associated with construction can help to enhance the business.
Conclusion
The business to rent out construction equipment is on a rise, so it is a good idea for a person to invest in it if he/she has the required capital and the managerial skills.