Rentrax provides the best rental management software for sports stores across the United States, Canada, Europe and Australia, so we know a thing or two about this business. You may find this advice useful, so read on!
To begin with, you should know that sports rentals have to compete in a very crowded market. It is wise to first do your research, analyze the competitive landscape in your area and see where you fit in. List your local competitors; mark their locations on a map.
Is the local market big enough for your sports goods rental business to be profitable? The last thing you want is to compete with too many other businesses for a fast-shrinking market. So, analyze the demand for sports rentals closely.
Talk to people who are already in the rental business, or have run a rental business in the past. You cannot expect your local competitors to reveal much, so talk to an expert who does not own a sports rental store; someone who has retired or moved on to another business. You can expect them to be more objective in their assessment of the market.
You should try talking to sports good rental owners in other cities. When they realize that you’re not going to compete with them, they are likely to be happy enough to offer tips and great advice on the business.
Next, consider your options. Should you acquire a pre-existing store or launch a brand-new rental? This is a decision only you can make, after looking at the benefits and drawbacks of buying an already existing business.
The advantage of buying an existing business is that you will make money from day one. If the sports goods rental has a good reputation in the area, then you should have no trouble attracting new customers and holding on to the existing ones, provided you offer the same quality of customer service.
But it is not easy to buy an existing business. It could cost you a fortune for one, and you may not find one that matches your business philosophy.
You could try the next best option, which is to purchase a franchise instead. This way you can take advantage of a pre-existing model and an already famous brand name. But it’s possible that the best franchises are already taken, and you’re left with those that are not so well known.
In that case, it is better to start off on your own and launch a brand-new sports goods rental. There are so many things to be taken care of, such identifying the right location, purchasing sufficient equipment and spares at affordable rates, designing a website, investing in marketing and much more.
One of the most important things you will need to do at the outset is to invest in a cloud-based sports rental management software. Rentrax is the best rental management software for sports goods rentals that comes with inventory tracking, equipment tracking, online reservation system and allows you to automate your workflow.