Business Model Canvas For Online Equipment Rental Business

The business model canvas is a strategic management tool to easily define and communicate the idea or concept for an equipment rental business. It is a single page document that works through the fundamental elements of the business, structuring the idea in a coherent way. Mentioned below are the various segments of a business model canvas for equipment rental business.

• Key Partners- Includes the list of suppliers, third parties, external companies you may require to achieve your key activities so that value can be delivered to the customers. Kay partners include investors, contractors, government agencies, media partners, vendors/product owners, and so on.
• Key Activities- This includes defining the key activities or areas that your equipment rental business needs to be good at to create value to your customers. Activities include- rental equipment supply, maintenance and repair, customer support, marketing, logistics, and so on.
• Key Resources- Are all the things that your business needs to have in order to create value for customers. This can include human capital and a number of other resources like technical, inventory, transportation and logistics, and so on.
• Value Proposition- Is the foundation to the equipment rental business. The fundamental concept is to exchange the value between your equipment rental business and clients. The value proposition of an equipment rental business can include having a robust platform for renting or lending equipment, secure payment processing, equipment insurance and so on.
• Customer Relationships- This segment defines how the equipment rental business will interact with its customers. Newsletters, monthly/yearly subscriptions, discounts/reward system, white paper and eBooks are a few examples.
• Channels- These are defined as the avenues through which the custom will come and become a part of your rental/sales cycle. A few of the channels can be through the equipment rental website, mobile application, brick and mortar store, third-party or intermediary store, and so on.
• Customer Segments- This includes various groups of customers that are divided into various segments like general contractors, mining companies, rescue operations and disaster management firms, engineering, procurement and construction companies, and more.
• Cost Structure- Includes the monetary cost of operating the online equipment rental business. This includes the cost of technology, procurement of equipment, operations, sales and marketing process, human resources, and so on.
• Revenue Streams- This is the way by which your equipment rental business converts your value proposition into financial gain by addressing the customer’s pain points. A few ways are rental fees, website advertisements, PPC campaigns, subscription packages, paid listings, add-on services and so on.

For detailed information on online equipment rental business, read this guide.