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Starting a business often requires a significant initial investment. However, our journey into the scaffolding rental business proves that with determination, creativity, and a bit of luck, you can start something from virtually nothing. Here’s how we did it.
From Window Cleaning to Lift Rentals
At 26, I had just sold my window cleaning business and moved into the lift rental business, renting out booms and scissor lifts. We soon noticed a demand from customers who needed scaffolding for covering walkways and other construction projects. With an initial investment of around $10,000 in scaffolding inventory, we were in the game, but just barely.
The Big Opportunity
One of Ottawa's biggest construction projects at the time required a significant amount of scaffolding. Despite our limited experience, someone on our team suggested we bid on the project. This was a bold move, considering our lack of inventory and experience, but it felt like a chance worth taking.
Preparing the Bid
We spent countless hours planning our bid. This involved detailed calculations of the amount of scaffolding required, the height and width specifications, and the estimated time for erecting the structures. It was an intricate and challenging process, especially since none of us had extensive experience in scaffolding at the time.
Winning the Contract
To our amazement, we won the contract. We had outbid two well-established local scaffolding companies, Illuma Systems and ScaffoldFast. Winning was a significant achievement, but now we faced a new challenge: we owned almost no scaffolding.
The Bold Ask
I approached ScaffoldFast, one of our competitors, and met with its founder, Dennis. Dennis knew we had won the job, and I candidly told him about our predicament. I asked if we could rent the scaffolding we needed from him and if he could give us a 20% discount so we could make a profit. Despite his initial reluctance—understandably so, as this was a job his company had bid on—Dennis agreed to help.
Executing the Project
With the rented scaffolding from ScaffoldFast, we successfully completed one of Ottawa's largest scaffolding projects without owning a single piece of scaffolding ourselves. The project not only provided us with substantial profit but also gave us the funds to invest in our scaffolding inventory, laying the foundation for our new business.
The Advantages of the Scaffolding Rental Business
The scaffolding rental business turned out to be incredibly lucrative. Unlike most assets that depreciate, scaffolding literally appreciates in value over time because it’s either made of steel or aluminum. Additionally, if scaffolding gets damaged or lost, customers pay for replacements at full value, mitigating the risk of financial loss.
Growing the Business
With our initial success, we reinvested our earnings to purchase more scaffolding and grew our business. We took on larger and more complex industrial projects, continually expanding our inventory and capabilities. The business thrived, and we continued to tackle significant projects with the confidence that we could meet any challenge.
Key Takeaways
- Start Small: Even with minimal resources, identify niche demands and be ready to fill them.
- Be Bold: Don’t shy away from large opportunities because of current limitations.
- Leverage Competitors: Sometimes, your competitors can be your best allies, especially if you approach them with a mutually beneficial proposal.
- Reinvest Wisely: Use profits to build up your inventory and expand your business gradually.
- Understand Your Assets: Invest in durable, appreciating assets to minimize depreciation and maximize long-term value.
Starting something with nothing is entirely possible. Our journey from a small lift rental business to a major scaffolding rental company is a testament to that. With perseverance and smart decision-making, you can turn a small opportunity into a thriving business.