Business idea - Feedback please

[samcamcan]

Hi All,

I am currently a project manager for an SME groundworks firm. We were going through a slow patch a few months back and had a lot of our heavy plant and machinery sitting around in the yard doing nothing. That is what gave me an idea to create a website which will enable peer to peer plant and equipment hire.

All new hirers and hirees will be credit checked and insurances checked to make sure they have the right cover, and all plant would have the documentation and photos uploaded. The hirer could set transport costs and radius (if they have the capacity) or the hiree would arrange transport. The hirer would set the length of the hire period so that they can get the equipment back when needed. The hire rates would be below the usual hire rates, so the hirer has plant and machinery bringing in some money instead of none and the hirer saves money on hire costs... win win!

I would really love some feedback (good or bad) from contractors, particularly ones who own plant and equipment. Thanks!

[MrButton]

Almost everyone on here are IT contractors who won’t know your market. But they could probably build you a solution.

Sounds like a good idea to me. My concerns would be around insurance and being the middle man when things go wrong. Like breaking down equipment. Equipment being returned damaged etc.

Put feelers out within your industry to see if there would be a market.

[Cirrus]

This is a bit like AirBNB. When you book a property you are not required to have your insurance checked, because you don't insure the property; the owner does. Step 1 for your idea is to see where you can get appropriate insurance. Often non-standard stuff like that is expensive.

[greenlake]

Sounds like you're looking to create something similar to Hiyacar, but for heavy machinery. Perhaps their website can provide some insight and answers to some of the questions and issues you may have.

Car sharing start-up Hiyacar is betting on a future where we no longer own cars | The Evening Standard

[samcamcan]

Thanks for the advice everyone! Sorry, I thought this was a construction contractors message board must have grabbed the wrong end of the stick! Thank you though, I will look into the insurance, legal implications and will have a look at that website.

[cojak]

Thanks for the advice everyone! Sorry, I thought this was a construction contractors message board must have grabbed the wrong end of the stick! Thank you though, I will look into the insurance, legal implications and will have a look at that website.

No problem.

Good luck with your business idea!

[ChangePM]

It sounds like it has some legs. The only issue I could foresee is the hiree won't look after the tools/plant properly and all of a sudden the cost of replacement parts and repairs is more than the income you've made in arranging the hires.

I used to do a lot of office fit-outs and the only tools that the trades ever looked after were the ones that they had paid for themselves.

[pauldee]

Thanks for the advice everyone! Sorry, I thought this was a construction contractors message board must have grabbed the wrong end of the stick! Thank you though, I will look into the insurance, legal implications and will have a look at that website.

But if you need anyone to build it, you may have come to the right place after all...

[Lance]

The hire rates would be below the usual hire rates

I'd be doing some very careful checking on how profitable the usual hire companies are.
You're considering about going into competition with them. By implication, you're suggesting that their business model has too much profit margin.
That may be true. Or it may be a huge assumption.

Have you asked the company you work for?
It may well turn out that they lease the plant anyway, and guess what..... lease companies are that competition and they won't let you hire the equipment to anyone else.