Everyone wants to start some business with their own or some looking for some extra income. Many of thinking starting the JCB backhoe loader renting business. Before starting that everyone does research. Is this business profitable or not before finalizing anything. we will update you regarding the JCB rental business in this whole article.
Many videos are there on youtube and tell you to earn 1 lakh income from JCB. They are youtube video makers not the knowledge of business running ideas. They might even don’t know the JCB actually brand not a kind of machine. Actually, its called the backhoe loader. So before getting into the backhoe loader renting business. All should get the knowledge from who already runs the business.
We are here trying to give you some basic knowledge. It might help you get some fine decision. Some of the strategies need to check before entering into the business.
We Will brief all 5 points below what needs to consider.
Before entering into the JCB renting business. First, you need to check the fund so the question arises how much minimum fund I require to start the business. To buy any brand of backhoe loader you need at least 5 lakh rupees. If you say bank giving us the fund then why we require 5 lakh rupees. 5 lakh require for the down payment and other expenses like – RTO Registration, RTO Tax, Insurance extra. Banks fund you only 75% to 80% fund of machine value if you are first time buyer.
2. Bank Installment:
Bank installment is the second most primary thing that needs to consider. Even if any bank provides you 75%- 80% funding for JCB backhoe loader. Then you have an EMI of 50,000 INR around. So be ready to pay the EMIs if your business not going well. If you bounce your EMIs your CIBIL will be negative and you unable to get any loan for any purpose in the future.
We are not making you afraid. We just want you to consider this point very well. if your business is going well then no problem. And also be prepared for rainy season EMIs. All Construction equipment in the rainy season is getting the stop.
3. Business Sourcing
Of course, if you have bought JCB backhoe loader you have not bought to keep at home. You need to find the business for it. You want to earn the money. In backhoe loader business deployment of the machine on the rental is 2 types. First, Daily or you say on hourly rent Second is Fixed. In fixed you deploy your machine somewhere for more than a month.
We think you should decide before the purchase of the machine. If you are already engaged in some other business or job it difficult to manage the daily rental income so in that case fixed rental income will be best. you might have less income in fixed but money will be a sure shot.
Daily or hourly JCB rental businesses need full engagement. We need to look after all transactions and movement of machines for rental.
4. Technical Knowledge
Technical Knowledge is also important for entry into the business. if you don’t know the technical details take the expert review for the JCB. One of the leading brand JCB 3dx is running model you will easily get the spare parts of the machine. Take the help of a mechanic to get finalize the appropriate machine.
Need to know the basic thing, How much diesel consumption is there, Hydraulic oil Consumption, Engine Oil Consumption, Type of filter used in the machine, Type of Axle, transmission, the engine is there in the machine.
So it will give you edge over the others to do profitable business.
The driver also has a key part in JCB rental business income. It totally depends on the driver that the machine gives you the profit or loss. So the driver should be such that you can blindly believe in him that your machine will take care of properly. Machine maintenance directly proportionate to driver take care. The machine should be greased properly after some hours.
Maintenance is one the major expense in this business and maintenance cost much higher as you expect.
Calculate JCB rental business Income
|Rent per hour||950/- Per Hour Rate|
|Monthly Running Hours Estimated ( 15 days /10 Hours work = 150 Hours)||1,42,500/- INR|
|Other & Maintenance Expenses||10,000/-|
|Diesel Expense (5 litres Per hour) (150*5*70)||52,500/-|
If your machine runs a long hour. More than 150 hours you will get more profit. So you need to have at least 150 hours of work in a month. In Fixed Income, you can calculate as above all related expenses are given. Diesel will be born by the hirer.
This is all about the JCB rental business Income. Take the right decision. Your suggestion is welcome in the comment box.
Also Read Technical Specification of JCB 3dx.
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