Local tool and equipment hire shop

Tradespeople, small contractors, renovators and homeowners with one-off projects who prefer not to buy expensive kit.

Daily, weekly and monthly hire fees, plus sales of consumables and some tools. Delivery and pick-up fees, and damage or cleaning charges, add to this.

• Knowing tools and equipment
• Customer service
• Basic mechanical maintenance
• Inventory and booking management

• Commercial general liability insurance, plus cover for the equipment you own and hire out (ask a broker)
• Written rental agreements, damage deposits and ID checks, and clear rules on who is liable for injuries and damage
• Zoning, business licence and fire rules for your premises, especially if you store fuel or propane (check with your municipality)
• Equipment needs regular servicing and safety checks; dangerous tools may need a short training or demonstration for customers
• GST/HST, and PST in some provinces, on both rentals and sales (check with CRA and your province)
• Slow winter months in much of Canada, and large upfront stock costs before income arrives

Startup costs are typically estimated at around $30,000 to $150,000, depending on the premises, how much equipment and stock you buy, and insurance. Large upfront stock costs arrive before income does, so plan your cash flow.

Monthly revenue is typically estimated at around $6,000 to $30,000, depending on your range of equipment, rental rates and consumables sales. Plan on at least about 35 hours a week, and expect slower winter months in much of Canada.

Check insurance for hired-out equipment and liability, and use written rental agreements with deposits and ID checks. Also check zoning, business licence and fire rules, especially for stored fuel or propane, plus GST/HST and any PST on rentals and sales.