Advantages v problems

Starting a rental business as an individual has inherent problems, but also has advantages. Use the advantages to overcome the problems as much as possible.

Advantages

• Ability to make decisions instantaneously on any issue.

• No layers of management, thus a high percentage of directly productive staff.

• No preset company image, or format to comply with.

• Flexibility to approach any possibility or problem.

Problems

• Lack of capital.

• Reduced ability to borrow capital, or finance purchases.

• Cash flow, which will be initially be negative as new equipment is purchased for new clients.