Start Up Rank: 44
Revenue: $523,000
Founder(s): David Caruso
Industry: Other
Head Office: New South Wales
Employees: 3
Website: www.rentaldepot.com.au
Rental Depot founder, David Caruso saw a niche in the equipment and machinery hire market created by the continued consolidation of the equipment hire industry by the larger players such as Kennards Hire and Coates Hire.
After seeing the success of the model whereby a hire business was set up inside a hardware store, Caruso brought the concept back to Australia and approached the Mitre 10 store in Blacktown. After lengthy negotiations the first pilot store was launched in July 2007.
“The most challenging part of starting the business has been battling the GFC, given 70% of revenue is derived from builders, developers and associated contractor, with the other 30% of revenue coming from DIY cash customers,” says Caruso.
“While our cash customer base has steadily increased, our account customers have gone into freefall. The lack of activity in the building industry has affected our bottom line considerably. To exacerbate the problem, a number of our 'better' account customers also had administrators appointed, while still owing us considerable amounts,” Caruso says.
He remains keen to duplicate The Rental Depot, but has put this on hold until the market settles.
BEST PART OF STARTING YOUR BUSINESS:
“The best part of starting your own business has been the quiet self-satisfaction of seeing your idea develop into fruition. It is one thing to have a great idea - it is another to make it happen.”
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