Start-small van hire, one or two vans

Local people moving house or clearing a garage, small traders and businesses needing a van for a day or two.

Daily or weekend hire rates with a mileage allowance, plus charges for extra miles, cleaning or late return. Income depends on how many days each van is out.

• Reliable and good with people
• Keeping bookings and paperwork tidy
• Spotting problems with a vehicle

• Standard van insurance will not cover hiring out, so check you have the right policy before the first hire
• Check licence details of every hirer and keep a record, and ask your insurer what they require
• Check your lease, mortgage or landlord terms and whether parking vans at home is allowed
• Vans sitting unused still cost money for insurance, tax and finance, so work out how many hire days you need to break even
• Damage, fines and breakdowns while on hire, so set out clearly who pays for what
• Check when you need to register for VAT as hire turnover grows

Estimates suggest startup costs typically around £8,000 to £30,000, depending on whether you buy or finance one or two vans, the vehicle's age and size, and the cost of the right hire insurance policy.

Monthly revenue is typically estimated at around £800 to £4,000, depending on how many days your vans are hired and your pricing. Unused vans still cost money for insurance, tax and finance, so work out your break-even hire days.

Check you have the right hire insurance, as standard van cover will not do. Record each hirer's licence details and ask your insurer what they require. Also check lease, mortgage or landlord terms on parking vans at home, and when to register for VAT.