Collaborate on Equipment Rental Invoice Template for Organizations with Ease Using airSlate SignNow

Equipment rental invoice template for organizations

hey guys what's going on this is Kyle projection up and today I'm going to be talking about how to write a business plan for an equipment rental business now equipment rental can mean a lot of different things that can be construction equipment that could be dumpsters that could be Recreational Equipment that could be kayaks you know that could be trailers that could be a whole lot of things so we're going to try to keep it a little general and talk about just equipment rental in general now of course as I go through an example business plan I will you know be using a fictitious example that you know will pick a lane on an in an industry but I think it's pretty replicable for any of those types of industri I was mentioning and I did say my name is Kyle but what I didn't tell you is that I spent about 7even years as an SBA lender as a loan officer and so in my capacity in that role I worked with startups and business owners to review their business plans put together their applications review their projections and basically guide them through the loan the SBA loan application process and so during my time there I got the chance to review hundreds if not thousands of business plans and take hundreds of different businesses um all the way through to the approval process so did that for seven years with the SBA and in the last few years I've gotten to work with projection hub uh in projection up as a as a whole we've helped more than 50,000 different small businesses and startups create um Financial projections for their loan applications their their pitch decks their business plans you name it and so using all of that experience in that context that's what I'm going to be using today to kind of taking you through how to write a business plan for an equipment rental business and the main takeaway from today's video is I want to show you the five key points or the key areas that I think will basically take your business plan from like good to great so you know we're I'm going to go through those show real examples a real business plan a real business plan and I'll show you exactly what those five key points are and we'll kind of go through the whole structure so if at any point you like this video give it a thumbs up that really helps us as a fellow small business if you have questions at any point leave a comment Down Below in the video we're very responsive there you can also contact us directly at support projection up.com if you've got questions about you know your business plan or your projections or if you're trying to get a startup loan like an SBA loan and you have questions about where to start and what lender should you talk to we've got tons of free resources and ways we can help you in that way too so don't hesitate to reach out so without further Ado let's go ahead and jump into how to write a business plan for an equipment rental business all right so here we've got our equipment rental business plan and I don't think I mention this mentioned this in the introduction and but I will mention it now this is a free business plan template so you can grab your own copy of this down in the description below no strings attached you'll you'll get exactly what you see here because again this is just going to be a a template it's an example that I think can be really helpful for you because it provides you kind of a a structure you don't have to start looking at a blank page so you have a thing that's organized into different structures and different sections and you know where to write your own information and then as we go through I'll kind of give you pointers here on you know how to take it from like you know General template level quality business plan to a really good business plan and different ways if you need help with that that our team could assist you or some of the ways we could assist you but again this is a free business plan template all the advice I'm going to give you today is going to be free or at least free options for that and so you know grab this follow through with me and we'll go ahead and get started here so first thing I just to mention is you know like why do you need a business plan and most generally it's because someone told you you need a business plan so especially if you're a star this is probably going to be most suited to to startups if you're going to need some funding your lender is going to need or request a business plan right because other than your personal information your personal financial information your credit worthiness and that kind of stuff the business plan and the projections which we'll talk about later in the in the video are the only thing that they really have to go off of right that is they don't have actuals they don't have historical performance so they're going to be basing that off of your plan and How likely and realistic does your business plan seem so if by the end of the business plan you are starting to get them to say like well yeah this seems very attainable and the steps they're going to take seem attainable that's where you want to get to right so if we if you're too generic you know if you're not specific enough or if you're way out in left field like those are the types of things we want to avoid and we're going to talk about that a little bit as we go into this so mainly you need a business plan because someone told you to or you're just trying to get ahead of the curve and you want to get all your thoughts down on paper that's a good option too so we're going to start going through this and I'm not going to read every word of the business plan to you but we are going to go through every section and I'll and I'll point out those five key points it'll be very obvious especially even if you go grab your own copy of this where those five key points are we've got them kind of I too far ahead but you can see we've got these key points very obviously in it and so we're going to go through a little bit and then when I get down there I'll take some more time talk about the key Point show you some examples to make sure that those really so in okay so first thing off here let's just take a look at the table of content and and point out some things about this first thing I'll mention is that the business plan isn't terribly long now this is an example use case it's kind of a general fictitious you know business plan and so it's okay for business plans to be longer than that you know you'll you'll even see in some of these sections you know it's it kind of has some pointers in here like a little bit of training wheels which are taking up a little a little bit of space but some of the sections you're going to want to write more than that in your own business plan but in general it's a common misconception that your business plan needs to be super long I think the easiest way to say it is it just needs to be as long as it needs to be for your case so don't try to shortcut it but don't also don't try to restrain yourself too much so you don't want to have to don't write for the sake of writing or just put in fluff because you want to make it feel longer but make sure you're thinking about stuff in enough detail that it it flows well you know and there's there's some there's some meat to it in there so the risk of having a really long business plan you know if your business plan's 50 pages 60 Pages 100 Pages you're spreading out a lot of important information over a lot of different pages and I can promise you um coming from a former lender myself your lender is not going to read all of that they're going to miss important details because they don't have all day to read a business plan and they might read your business plan once they'll refer to specific sections a couple of times and they'll look at your financial projections a lot so that's a thing to keep in mind is we want to keep it shorter right so they can get through it all in a more detail and you know you get the point the second thing I'll point out is the projections are almost half the business plan in this example use case now again your business plan will probably end up being a little bit longer than what you see here but that still stands your financial projections are going to be probably the most important part of your business plan and we'll talk about that when we get to that point in the video but that's something to keep in mind a lot of people don't think about the rule the projections are going to play maybe they just have a few numbers in their head but again your lender assuming you're a startup they're having to make a decision off of nothing that exists yet and so the more reality we can paint in front of them using our projections and our business plan the more likely we are to have a shot at getting approved for the funding okay so first up in our first section is going to be the executive summary and I want you to think about the executive summary as kind of like a cover letter to like that that you put with a resume for a job application so your cover letter is not going to make or break what you get you know if you get the job or not but it is going to provide it's the chance to provide the first impression it's the it's the high level details about who you are in this case about who your business is or what your business is going to be and so that's what we're going to do in the executive summary now in this one you can see we've got an overview of the company so just a description of what the company is or will do you know where it's located so you're going to do that in just a few sentences and and these are going to be kind of like previews of larger sections later on in the business plan okay so you can keep it short here because you can talk about more that more later this isn't your one chance to explain the business so we want to keep it on the short side because your executive summary should really need to be about a page long so we got a little overview here and we've got objectives or or goals one thing that I'll point out and again this is just because this this is a generalized fictitious example so it's going to be lacking details but wherever possible you should make sure it is measurable specific and so like this shortterm right it says the short-term goal is to make sure proequip rentals is a leading equipment rental provider in Indianapolis so I'm located in Indianapolis that's where this examples taking place that's not specific enough for my preference I would rather it be some sort of probably a perform performance goal or financial goal so maybe that's we would like to break even in 18 months or we'd like to reach x amount in sales or x amount number number of customers served like it should be some sort of specific Milestone that actually is indicative of success like it's actually working having those measurable goals kind of helps and I'll say this a few times in this video it kind of like sets The Scene It paints a picture it provides context to the reader to the Lend and doing that in the executive summary is important because now they can start to when they read through the whole business plan they've got the right frame of reference they they are you know they have a a grasp of like how big the business might be how much money you might need how much money you might make right there but if you withhold that information till later in the business plan and then they finally unlock that it kind of reframes everything so you want to give them that introduction sooner rather than later and the goals is one way to do that so making it measurable in the short term making sure it's attainable making sure that goal actually would make a difference in what you consider to be success for the business and then long-term example we say expand to two additional locations in nearby cities within the next 5 years that's a little bit more specific but if truly your goal is going to be to have additional physical locations I think you should try to have a city picked out and you should try to have the year in which you'd want to do that picked out because that will take place in your projections so if that's actually something you're serious about and that is in the road map then we need to make that clear because again that is setting the perspective that's setting the the scale of the business in that Sim example if like maybe you have in the back of your head like oh it'd be nice to like if this really works we could expand it to multiple locations or multiple cities but you're not really sure if that's what you want to do or if that's going to work out that way then I would say maybe don't include it in your business plan okay because that is what your lend is kind of measuring you on right that's going to be their expectation of you so if really what matters to you is to have one successful location and even if you only ever had one successful location this business still makes sense start with that as the focus of your business plan the focus of your projections if what is successful and what makes it all worth it to you is that you do end up having three locations then your business plan needs to involve that and be very clear specific around that mission statement is what it is it's a nice thing to include it's really not that big of a thing that's really going to set you apart that much so don't spin your wheels on that a whole lot keys to success again is a nice thing to include if it actually if they actually are keys to success it's even better if they're measurable and even better if they are controllable right so I don't like when people include a key to success that is outside of their control if that's like you know there's supposed to be 50,000 new people in the area so that's going to be lots of construction projects so that so so that should mean a lot of new tools need to be rented like that there's so many things I have to go right for that to make sense that we don't really want to have to depend on that so be specific about what you're including there one thing that's not included in this executive summary that I like to really include in the business plan is like a financial summary again we're setting the the scale the the context for the business so you know you could include things like how much should the start how much startup cost will there be how much funding are you going to need how much of a loan are you seeking just a few of those those points uh are nice to include because again that's going to reframe for your lender like oh okay so now I have under an understanding of how big we're talking how small we're talking rather than if you you know projections are usually towards the end of the business plan so if you wait until then to say that for the first time honestly most lenders will probably skip to the projections and read that first and then come back maybe so just make it easier put it in the executive summary okay moving on to the company description this is kind just an extension of the executive summary as I mentioned here you know you've got the little blurb about the company interview on the executive summary and now here's your chance to go into a little bit more greater detail talk about the founder story company history an introduction to Who's involved the ownership we will go into greater detail on who the owners are are later but doesn't hurt especially if they have very relevant experience mention them now I realize we're not to the first key Point yet when we get to them we will go through them quickly legal structure it is what it is unique selling proposition only include a unique selling proposition if you actually have something that's going to set you apart if you're just going to say we're going to have the best customer support well everybody thinks that they have the best customer support or customer service so that's a little generic right but if you're going to be offering a new piece of equipment that nobody else is offering or you know something that no one's really doing in the area yet or an emerging opportunity then add that in that's a great thing you know or maybe you deliver the equipment or the thing directly to people that's the type of thing that should be your unique selling proposition something that actually set you apart and then your target market kind of speaks for itself right try to get to go into as great detail as possible don't say your target market is everybody that that's not real life right because that's not really your addressable Market you can really hone in on a specific group whether that's an age range gender income level location you know interest High IES that kind of stuff and you can actually put a number to that size of that group of people that's really that's where you're going to win in that Target Market section okay moving along market analysis and this will have our first key point so we finally made it and we're going to go through them pretty quickly so the market analysis is going to be more we want to basically demonstrate to the reader to the lender that there you know there is room in the market for for what we're going to offer and if there's not if it's hyper competitive or nobody's doing it yet or whatever we need to explain them what we're going to do or what opportunity we see to steal some of that market share or disrupt you know the the competitors or what have you so that's what we're going to talk about you know your lender and we'll talk we can talk about this more later too they may or may not be local right if it's maybe your hometown bank or something like that they should probably have an awareness of the the the area the community you know competitors and that kind of stuff and so they're probably of the aware somewhat of the scope of your opportunity but they may not be so it's your job to demonstrate that reliably to them so avoid the Shark Tank thing of saying the equipment rental business was a $3 trillion business last year unless you're going to continue to slice that down to where you're actually going to talk about your addressable market so the market analysis is more about you are analyzing the market where you will actually have customers where you could actually get customers from so when we're talking industry overview you know we're not talking about the macro picture of the equipment rental industry we're talking about your industry in your specific addressable Market competitor analysis very important part of the business plan and I would say you should be aware of now again this is going to depend on what type of equipment rental service you're doing how large LGE is the area which you could reasonably serve is that going to be people within a 15 mile radius is that going to be people within a 50 mile radius how big is the equipment is it hard to uh if you have to deliver it like transport it like it's going to change based upon your type of equipment are you going to is it small enough stuff where you can have a storefront and people can come pick it up and throw it in their car is it big enough that you're going to have to have a trailer and you're going to have to go drop it off on a property right so it's going to depend probably on who your competition is so whatever that is that makes sense for you you should know every one of your competitors within I I don't want to just say a specific radius because I would say every competitor within the range of which you would expect to get a customer from right so if that's within a 30- minute drive of you within the same city you know you can you can put the size on that but you should know of all of them and then I would include in your business plan three the three to five most direct and most relevant competitors to you the most relevant competitors are probably going to be who's the closest physically like proximity wise and who is offering most closely to the same thing that you are so if that's the exact same equipment where they have overlap in the equipment the type of person if you're serving the time type of person like if you're serving DIY home Renovators or if you're one of you is serving DIY home Renovators Renovators and the other one's working more with construction companies so you know you should list the three to five most closest competitors to you and then try to do some research research list what they do really well and maybe what they don't do so well or they don't do and that's an opportunity for you so if someone's been around for a long time you know you can talk about that right they have staying power they have a loyal customer base a lot of people know who they are but maybe they've gotten a little too relaxed on their customer service and theyve got a lot of negative reviews on Google right you could talk about that so don't take don't take the shortcut easy way out on competitor analysis you should actually do your homework to understand who the competitors are sometimes I'll write business plans for people who say I don't have any competitors because they think what they're doing is so novel but really is everyone has a competitor right so you just need to make sure you're aware of who's on the playing field and then put them in your business plan because it looks nice and it's a it's a good research to do that I wouldn't be too worried about indirect competitors but you know you can talk about that for again that's going to depend on what type of thing you're renting out but yeah I would focus more on just like the three to five most close competitors to you target market analysis is just a chance to go in Greater detail on what you talked about up here in your target market so you can talk about them further detail here and then Market opportunities so I had said earlier you don't want your keys to success to be based on things you can't control Market opportunities can be things that are outside of your control so these are things that are like should be like if these go to plan or if these things pan out that would be huge for us talk about those things is that a new company that coming to town is that a new manufacturer coming to town is that a massive new construction project that you have a chance to help rent things too is that a a boom in people doing at home renovations like whatever you want to talk about in there that's a good chance to talk about that and finally key Point number one I promise we'll go fast after this and that is market analysis so provide I should rewind just a second everything we've talked about in here so far is kind of like a minimum expectation you should include your own version of the things you've already seen in here so that's why this template exists it tells you what should be included in your business plan these key points are going to be things that are kind of going above and beyond how to upgrade your business plan so key Point number one the market analysis if you can provide some specific example or of local research to demonstrate that there's actually room in the market for the business that kind of helps level up this whole section and makes the opportunity feel more believable there's some examples in here right you could do surveys you could contact people you could pay someone for a market research study like you could do a lot of these different things one quick example I like to show people just to demonstrate is this example number three perform keyword research to find search Trends in your target market so I'm going to go to this tool called Google The Google ads Google AdWords you can create a free account they've got this cool tool in here called a Keyword Planner and basically what this allows us to do is simulate how often or like how often are people searching for specific search phrases in specific locations and so I've got my location set to Indianapolis Indiana that's where I want to see the search results and then I've got these search phrases that I'm curious how often are the people searching for those things and we're going to get some interesting information out of this one it's going to provide other related keyword ideas is for you right so you can see specific types of rental equipments and whatnot people might be looking for we can see on average per month how often are this being searched for we can see some seasonality and the most important thing that this tool shows you is this year-over year change so this we can see are is each year is there a growth a growth in demand for the things that we're going to offer now if we just see negative percentages that might be an indication to you that you know times are getting tougher people may not be spending as much or renting on things whatever it could be a number of different reasons but it's an indication to you that competi competition is probably tougher because there's less people searching for these things on the other hand if you see some increases in these percentages skid steer loader rental is up almost 100% scaffolding rental is up Scissor Lift rental is up backo rental is up so there's still positive movement m in this and so that's my example or that's what I'm trying to say is look for your specific type of thing like if someone is to search for something on Google that you would want to show up for your piece of equipment in your specific location see what the the trend is and the demand now this is not an indication of Supply Supply is going to be your competitor research how many people are offering the thing that you're offering in your Target location and then this is going to be demand is there a growth and people searching for the thing that you have to offer and then marry those two together and that looks really good in your business plan so you can take screenshots of this add this into your business plan talk about that research and that looks really nice it upgrades that section okay moving on to marketing and sales strategy this is the probably the section of the business plan we're going to talk about the least and that's because again these are all minimum expectations like you're going to talk about what you're selling you're going to talk about how much you're selling it for you're G to talk about if you have some sort of specific sales strategy that you know will allow you to be successful um you're going to talk about distribution channels you're going talk about advertising you're going to talk about you have a website you're going to talk about you bu on social media so there's nothing groundbreaking about this section but it is it does require a lot of minimum you know work from you right you can't just leave this section blank you need to have a basis on that but what I want to get to is this key Point number two and that's just like section the first section or the market analysis section where you're going to talk about all of the things that we've included in this business plan but then to upgrade it we're going to try to do the same thing can we demonstrate an example of how we're actually going to acquire customers because it's one thing to say like well these are the things that we're going to do to attract customers there's a but there's it take makes it even better if you can demonstrate what's called traction and that is tangible proof that when you open this business there's a high degree of likelihood that people are actually going to show up and that you're going to use it and so depending upon your type of equipment rental business examples of traction are going to be a little bit different maybe a little bit more difficult some Industries it's easier to do this than others my favorite version or example of traction or customer acquisition demonstration is going to be people who start basically if you can start as a side gig before you ever launch the business that's one of the best ways to prove the concept that you can so the best forms of traction are one pre-launch Revenue you're actually making money before you officially launch the business the second best version is names on a list so maybe if if it's a thing that you can't pre-sell or do on the side you do the hustle work to find out if people would actually be interested in the thing that you're going to open and if you can get people to sign up and say yes I would like to find out more about this when it launches that's a great example you can put in your business plan say we've got 1,700 people that have signed up to say they'd be interested in our kayak rental business in the Indianapolis area that's huge right because that proves a few things one there's actually you found customers and two you've got a lot of hustle a lot of grit that's a really key intangible that lenders like to see about entrepreneurs and about startups and so if you're going to be renting out a thing that you happen to have a few of them and maybe you haven't gotten a business loan yet to get the rest of the inventory you want but let's say you've got three pieces of the type of equipment that you hope to rent out eventually start doing that on the side start doing that in Craigslist ads or you know your your friends and family your neighborhood if you can start to get some transaction records improve that concept a little bit it might seems silly to you but any amount helps you can say made $7500 in six months by renting out my extra kayaks in my community or something like that that's a really prime example of traction so I promise you that that actually means something that's key Point number two moving on to operations and management so here you're going to get into more of like the logistics of the business like how is it actually going to operate again minimum expectations here this is going to be a section where I can't really tell you everything to put in here because it's going to come down your expertise in the business so this is where you're going to have to do some research and be like how do you actually run the type of business that you're trying to start so you're going to talk about Inventory management and tracking and maintenance and repair if it's equipment that you need to keep um maintained you've got scheduling you've got safety protocols customer service so these this section is going to change wildly depending upon your type of equipment are you going to have to have experts on the team to maintenance those types of things so just some different things around that but I will talk about key Point number three because this is the section to flex this muscle and that is going to be demonstrating that you have relevant industry experience either you personally or your team surrounding you so we really want to ensure that the lender is confident that you know what you're doing you know what you're getting yourself into so an example from one I Was A lender I had someone who was a longtime marketing executive and they decided they were sick of that and they wanted to open up a sandwich shop and you know they had money and they had a great credit score and all of this stuff but we just weren't excited about the fact that they had never worked in that type of business or that type of environment before now they certainly they had some transferable skills they knew how to sell they knew how to Market probably brand to make it a nice place but they didn't they had didn't never had experience working inside that shop running that team inventory optimizations all that kind of stuff and so what you really need to make sure you highlight is what relevant and transferable skills and experience you are bringing to the table that make it make sense for this industry and if you don't possess that solely you need to supplement that whether that's with a partner like another owner co-owner or something like that that fills the gaps that you don't have if that's a key manager a key employee key mentors so whoever you need to supplement around you to make sure that your lenders be like okay yeah they've got it covered you know they know what they're doing it's a simple check mark that you want to get from your lender but it's a big one because if they have any concerns over that it's going to be very difficult for you to probably get through that process so you want to earn that that credibility so make sure you're not afraid to talk about the experience that you and your team are bringing to the table okay moving on and this is the big one the Financial projection section so here you can see we've got a nice graph breakdown of our startup costs we've got it might be a little zoomed out from this video but this is like a fiveyear little preview breakdown of the profit and loss so we've got revenue direct expenses gross profit net income so some of the high level numbers there we've got some rental specific kpis or key performance indicators so we've got number of units available Revenue per unit expenses associated to those units got some key r ratio data like sales growth data here's a breakdown of our monthly operating expenses or like our recurring overhead and then we've got a five-year uh income statement or profit and loss statement so this is the pro fora projected projected five-year income statement same thing for the cash flow statement balance sheet and then we've got some nice sales charts Break Even analysis monthly sales forecast so this is usually the section that a lot of startups and business owners goes like their eyes kind of roll over cuz like oh my gosh I don't really know what to do here fear or not all of those numbers were generated using this template now I mentioned that was a free business plan template we've got a lot of different free resources these templates are not a free resource but they are a very affordable resource and so the reality is you have to have Financial projections especially if you're a startup if you hope to get funding and I would recommend you do Financial projections even if you aren't necessarily going to need funding because it will make sure you dial in your numbers and ensure that you're going to be profitable if you do the plan that you set out to do this template we've got over 100 different industry specific templates this one's our equipment rental Financial projection template so it works for any rental business you're only editing sorry zoomed in you're only editing these blue boxes on these blue tabs so we're going to put in some starting assumptions it's not a lot of information I promise it's pre-filled out which is helpful so you know where to put things and what to put in so you're going to see see what type of equipment you're going to put in again we're only editing these blue boxes see things like Revenue per unit so all these are calculations you're not you're not putting those numbers in there so you don't need to get overwhelmed by those here's our monthly expenses if we have any salaried employees they're going to go in here and then it's going to generate all of these financial statements for you all those things we showed you in the in the business plan and more these are what your lenders are going to need that is linked in description below you can grab a copy if you'd like to we've got a whole video guide on how to fill it out it comes with free support we'll provide a free review if you complete your projections I promise it's totally worth it you also have the option to hire our team to create the projections for you if you like I'm not going to go into detail on that or press you into that at all but if you don't have an interest in doing it yourself and you would like an expert to take care of it for you we are happy to do that and we're standing by okay so key Point number four isn't just the fact that you have to have Financial projections you have to have Financial projections minimum requirement key Point number four is that they need to be realistic and within industry expectations or industry norms and the best way to do that is to Benchmark your projections and you might be wondering well if I don't even know how to create projections how am I supposed to Benchmark for projections and that's a great idea let's assume you use this template to create your projections or maybe we've created your projections for you which if we created your projections for you we would do the benchmarking for you or with you but a great way to do this let's say you got the template and you filled this out yourself we have all of this these great numbers in here that we can just look up averages for so some options like let's look up what net income right a profit margin would be so you can either go to gole Google search for you know something like what's a typical profit margin for a tool equipment company or a kayak rental company or you know you know you name it you can also use a tool like chat GPT give it a bunch of numbers from it all at once so let's let's see what what do we talk about net profit margin average net profit margin 5 to 15% so if I go back to my projections let's see are we very far off net income 11% 4% 4% up to 5% profit margin right here same thing so we're right on the money right we're within an industry Norm so you could do that with any number in your projections you can do the same thing with your pricing average price per month right you want to make sure your prices are in range with your competitors in the area are you charging a premium because you're offering some sort of extra benefit are you trying to you know be a little cheaper you are you trying to be ride online with your competitors if you don't have any direct competitors you know you got to use an indust you know like a national average the whole point of benchmarking that is because you want your first impression to your lenders to be a good one if your numbers seem way off or confusing or totally not based on reality it's hard to recover from that because you can't just say like hold on one second I'll be right back and then all your numbers are different you really want to make sure your lender knows that you spent time researching and dialing in those numbers so that's how I would Benchmark your projections again if you'd like help doing that reach out to us at support projection hub.com happy to help you um answer any questions about the projections that is our specialty we've done that very thing for more than 50,000 small businesses and startups and we could help you too all right and that brings us to the end of the business plan but we've got one more key point and this one is more of advice than it is something to put in your business plan and that is be prepared to demonstrate skin in the game some people don't know what that phrase means some people do I'll use an example of if you're going to buy a house right if you go let's say you're going to buy a $100,000 house I know those don't exist anymore but just for Simplicity sake and you go to the bank and let's say that your credit score looks okay you know and they would like to give you a loan they're not going to give you $100,000 to go buy a house if the house costs $100,000 they might give you $90,000 for the house right so you're going to have to put in money you're going to have to share in that risk a little bit down payment down deposit so not only are you contributing some skin in the game so you have some risk right if if you don't pay back that loan and sorry I should say you put in the $10,000 but also you know if the bank is going to take the house and that's going to be their collateral on the loan so now if you fail back if you fail to pay back your loan you're going to lose your $110,000 that you put in as a deposit and you're going to lose the house because the bank is going to take that and they're going to they're going to sell it and try to make back their losses and so same thing thing goes for a business loan right if you need $100,000 to get your equipment rental business started they're going to expect an owner investment so you're going to have to contribute some so probably 10% maybe 20% probably more like 10% so $10,000 in our example they're also going to need collateral the loan the equipment will serve as some collateral if there's a collateral shortfall they might ask for personal assets so just be prepared for that conversation that could be a second mortgage on a house that could be a free and clear car when I was a lender or a loan officer all the time I would have people say that they wanted to keep their the loan separate they wanted to be in the business name and not the personal name which would be awesome if it worked that way it does not work that way you will be signing on the line personally for the loan if the business fails to pay back the loan you will be paying you will be personally responsible for that loan and so the only reason I say all these things is not to scare you it's just to be prepared and have good expectations when you're talking to the lender they're not trying to take you for everything that you're worth they're just trying to mitigate their risk so that if the the loan fails cuz because startups can be risky that their losses are likely to be covered that's what they're trying to do other ways to strengthen your application would be lining up a cosigner I would encourage you to do that whether they ask you for one or not so go ask someone that you think would be a good co-signer so has good outside income strong credit score and ask if needed would they be willing to coign on a loan with you could be a parent could be a sibling could be a friend and if they they agree keep that in your back pocket you don't have to tell your lender that but if it comes to the point where your lender says hey we would really feel more comfortable if you had a co-signer on the loan with you you can say great I've already asked somebody let me confirm with them and then things can keep moving now that's just a quick fifth point and that is just being prepared for that conversation you don't have to put any of that in your business plan but you should do that research you should do that preparation and just be prepared for that um as you're going into it and so there you have it that is the equipment how to write an equipment rental business plan grab your free copy of this business plan template start writing your own template if you have questions about your business plan if you have questions about your projections if you have questions about an SBA loan where to start who to apply with please don't hesitate to reach out at support projection hub.com we've got tons of free resources we've got tons of resources that aren't necessarily free but will be very helpful to you and we're always here to answer questions so again my name is Kyle and I hope you enjoyed this video give it a thumbs up if it was helpful to you and and consider subscribing to the channel so you can see all of our other helpful content and we will see you in the next video oh and I should mention there is a promo code down if you go down the description below you can get 15% off that Financial projection template just for saying thanks for watching the video and we'll see you in the next one thanks [Music] [Applause]