How To Start A Temporary Fence Rental Company

The fence rental market is rapidly growing, with experts predicting steady growth in the United States from $3,294.6 billion in 2022 to $4,676.9 billion by 2033.

If you are tossing around the idea of starting your own rental company or thinking of adding temp fences to your rental portfolio, now is the perfect time to seize the opportunity.

You can start your company from scratch and build it up, but if you already rent other products to construction sites, like porta-potties or dumpsters, there are benefits to expanding your existing firm to include temporary fences in your portfolio.

This guide is here to help both experienced rental pros and beginners start their own successful fencing rental business. 

Get the legalities in order

Every state has its own laws regarding opening and operating a business. However, within each state, there may also be city and county ordinances as well. Before you open your doors, you need to make sure that you have dotted all your I’s and crossed all your T’s.

Most types of businesses are required to have a business license, insurance, and comply with certain regulatory requirements that are often related to the industry.

You may want to talk to a lawyer to find out all that you need to get started. 

In many cities, the Chamber of Commerce offers free consultations with business experts. They can help you with regulatory compliance, as well as with your business plan, provide funding advice, and any other start-up questions you may have. 

Check local laws and ordinances

Don’t assume that you know the laws of your state, city, and county. Research it. Laws can change and what you think you know may not be entirely accurate. 

It is always a good idea to get some guidance from an attorney or expert in business, preferably in your industry. 

 

Your local library may also be a good resource. At the very least you can get information that will point you in the right direction.

Apply for a business license

Most types of businesses require a business license. Be careful and make sure you research your city and county laws.

You may be required to get a license through your state and county or city, depending on the local ordinances. Additionally, certain types of businesses are required to get a federal license.

Typically, you can apply for your business license online, often through that state’s Department of Revenue. Just make sure that you cover all your bases and that you have everything that you need to give your business the best start possible. 

Get insurance for your fence rental business

Most businesses are required to carry some type of insurance; the type will depends on the nature of your business.

When you apply for your business license or when you are doing your research, make sure you look into the type of insurance you need.

Liability is a huge concern for most businesses. Personal injury and property damage can be very expensive for a company so having the appropriate type and amount of insurance to cover any accidents can truly save your business. 

Create a business plan

A good business plan can help you navigate the startup of your company and help you manage it. It gives you a roadmap for building your business and making sure that you meet all requirements.

It allows you to work through the steps and essential elements of your new company. As you put your plan together you get to put your hands on each aspect of your business.

Your business plan can also help you get investors or funding for your company. Most lenders want to see a business plan and will base their decision to grant the loan on what it contains and how well it is put together.

If you want to bring in a business partner, your business plan could well be the decider as to whether they get on board with you or not.

Your business plan is extremely important for your business. Make sure you get it right!

Choose a business plan format

There is no universal format for a business plan, you just need to make sure it includes all the relevant information and meets your company’s needs.

The United States Small Business Administration (SBA) offers information and samples on two common types - traditional and lean startup.

Using samples of an existing format has many advantages, the first being that you aren’t reinventing the wheel. This means you save time and effort in trying to structure your plan. You can simply use the samples as guides.

This also helps you maintain a coherent flow and keep your plan organized. You won’t have to worry about accidentally omitting vital information. All you must do is adapt the existing versions to fit your own needs.

What a business plan must have

Each of these types of business plans is vastly different. When you decide what business plan format you want to use, consider how you are going to use it.

If you're looking for lenders or investors, you probably want to go ahead with the traditional plan.

If you are organizing your business and using it for other purposes, the lean startup will probably work for you.

Whatever the case, each format has certain elements that you need to include.

Traditional business plan

This is the most common type of business plan and can be many pages long. Each section contains a lot of detail and is very comprehensive.

While it means more time and work to create it, this is the type of plan that investors, prospective business partners, and lenders request most often.

You don’t have to use all the sections in this plan. Choose the ones that are relevant to your business and work best for how you are going to use your plan (for funding, investors, etc).

There are nine key sections in a traditional business plan.

• Executive Summary
• Company Description
• Market Analysis
• Organization and Management
• Service or Product
• Marketing and Sales
• Funding Request
• Financial Projections
• Appendix

Lean startup business plan

This plan doesn’t get into the weeds like a traditional plan does. It provides more of a high-level view of your business.

It only contains certain essential elements, but it does not go into much detail.

While this plan may be quicker to pull together, it may not be enough for investors, prospective business partners, and lenders. They may ask that you provide more information before they make a decision.

If you want to get your business started quickly or if your business is fairly simple, the lean startup plan could work well for you. The information is brief, high-level, and punchy.

There are nine common elements in a lean startup business plan, but you only need to choose the ones that apply to your business.

• Key Partnerships
• Key Activities
• Key Resources
• Value Proposition
• Customer Relationships
• Customer Segments
• Channels
• Cost Structure
• Revenue Streams

Create a budget

Every business needs a good budget. Nothing will kill your new business faster than poor financial management.

As a startup, you are going to have to estimate your income and at least some of your expenses, so create a flexible budget so you can make adjustments as necessary.

There are many business budget samples available online, or you can create your own.

As you close out each month, go back and line up the actual income and expenses alongside your projected figures. That allows you to adjust your calculations for future projections.

A good budget will maximize your financial efficiency and help you create a solid financial plan that will help your business grow and thrive. Over time, it can help you predict times when business slows down as well as busy seasons, allowing you to plan accordingly. 

Elements of a business budget

The first few months of your business budget will reflect startup costs and transition to operations costs.

Start with your revenue.

Some of the expenses that your budget will reflect include:

• Licenses
• Permits
• Fees
• Consultations (legal, industry-specific, etc.)
• Equipment
• Inventory
• Storage
• Property such as offices and showrooms
• Rent
• Employee salaries and/or hourly wages
• Property taxes
• Transport for delivering your temporary fence panels
• Maintenance of equipment
• Maintenance on rental items
• Debt repayment
• Insurance
• Utility costs
• Owner’s salary (if contingent upon profit)

You should also factor in any depreciation of your assets. 

It is also wise to set up a special fund that is specifically for unexpected costs. This emergency fund can help keep you afloat in lean times or help with unexpected expenses like damaged inventory items or equipment breakdowns.

Purchase Inventory, Equipment, and Supplies

When you sit down to purchase your inventory, equipment, and supplies, make sure that you are choosing the best possible that has the price point you can afford. Don’t always opt for the cheapest price because you may not get the quality you need. 

The last thing you want is product failure. It will cause you to lose customers, you will have to replace the shoddy materials, and if there is property damage or injury associated with the product failure, it can destroy your business.

These issues can be very costly. It is best to avoid them from the beginning.

Choose a company that offers quality products and great service. You can’t go wrong.

Choosing the best equipment for a fence rental business 

If you are just getting into fence rentals, industry experts recommend selecting chain-link panels over welded panels. Chain-link panels offer great strength and durability, allowing for multiple reuses over extended periods and in harsh environments. However, if you're primarily considering short-term rentals, welded wire panels could also be a viable option. 

You want fencing that is going to stand up to whatever your customers need, whether they need crowd control for an event at the farmer’s market or construction fence to increase the security of a worksite. 

In addition to the fence panels, you'll need a suitable vehicle like a flatbed, stake-body truck, or trailer for transporting them. To optimize storage space and secure panel stacking during transportation, consider investing in a steel Sollage rack. 

As your business expands, acquiring equipment like a forklift can greatly expedite unloading and installation processes. This efficiency enables your team to cover more locations in a single day, enhancing overall productivity. 

 

Return on investment for the first temp fence purchase

When starting a fence rental business from scratch, understanding the return on investment (ROI) for your first fence purchase is crucial. ROI can vary based on factors such as the amount spent, prevailing market conditions, and customer demand.

Despite this variability, many high-volume fence companies find temporary fencing to be a cost-effective investment with a remarkably fast payback.

Let's break down an example to illustrate: 
 

• Chain-link Fence Panel Starter Kit: $129
• Average Rental Revenue: $3 - $5 per linear foot, or $30 - $50 per panel

With these figures in mind, the calculated ROI typically ranges from 3 to 4 temporary fence rental contracts, meaning the revenue generated from those rentals will cover the initial cost of purchasing the panels.

It's important to note that this calculation only considers material costs and does not include additional revenue from labor for installations and takedowns, as well as round-trip shipping revenue.

Keep in mind that actual revenue can vary depending on factors such as your specific market, project types, and customer base.

Additional Revenue Add-Ons

While you can run a successful temporary fence rental business with just the basic fence panels, offering additional products can significantly increase your revenue. Having a range of complementary items can make your business a one-stop shop for all temporary fencing needs. Here are some popular add-ons to consider:

• Privacy Screens: These screens are often rented for construction sites, outdoor events, and any location requiring privacy or wind protection.
• Fence Gates: Gates are essential for construction sites, events, and any other fenced locations that require secure but accessible entry and exit points.
• Fence Base Weights: Fence base weights are essential for stabilizing fences, especially in windy conditions or when the ground is uneven.
• Fence Braces: Fence braces offer additional stability for temporary fencing. These are particularly useful in situations where the fence line is long or exposed to strong winds.
• Bike Rack Barricades: Bike rack barricades are a must-have for events that require organized crowd control. They're particularly popular at festivals, concerts, and large public gatherings.
• Stage Barriers for Concerts: These barriers help manage crowds, ensuring that attendees stay at a safe distance from the stage and each other. By offering stage barriers, you can attract a broader range of event organizers.

By integrating these additional products into your rental offerings, you can not only boost your revenue but also improve customer satisfaction.

Providing a variety of complementary items makes your business a more attractive option for clients seeking complete solutions for their temporary fencing needs. 

Start your business off right with the SONCO Club

If you’re on the fence, so to speak, about which company to choose to supply your rental inventory, we can help.

A SONCO Club membership offers some amazing benefits that will carry your business from startup to growth and beyond. When you join you get:

• Coupon codes
• Discounted prices
• Exclusive access to industry-specific deals
• In-depth community insights

Joining the SONCO Club is quick and easy, but best of all, it’s FREE. When you become a member, we'll connect you with experienced professionals in the field who will assist you in choosing the right inventory for your rental business. They'll help you make informed decisions, ensuring that you invest wisely and set your business up for success from the start.

With 30 years of fence experience, SONCO is a national chain-link distributor. We’re proud to support fence companies around the U.S. with product expertise, marketing tips and industry advocacy.

Create a marketing strategy

Once you have your business ready to go, you need to get the word out. It starts with an online presence, but it can be simple with just the relevant information about your business.

You can start small and gradually build it, which is a good idea because the major search engines like to see web content that is “living.” In other words, it is updated regularly.

From there, you can begin developing a marketing strategy that is designed to speak to your target audience. For instance, if you are targeting event planners, create a strategy that speaks to their needs.

Choose several channels, again keeping in mind your target audience. Having a social media presence is a great way to promote your new business.

SONCO Club members gain access to a range of resources designed to accelerate their business growth, including pre-made marketing materials, spec sheets, high-resolution images, and product descriptions that they can post on their social media platforms.

Another benefit of the SONCO Club is our lead sharing program. Once you join the club, you become part of our nationwide network of local rental businesses.

SONCO then refers our customers to you, helping you to expand your customer base without requiring a significant investment in marketing right away.

Join the SONCO Club and kickstart your business

Starting your temp fence rental business is a lot easier when you have strong partners in your corner. That is what happens when you join the SONCO Club.

Sign up today and give your budding business the boost it needs to have a great start.

When it comes to fence rental, we know our stuff. With SONCO’s support and your initial investment, you could grow your fence business and establish yourself as the area's top choice for temporary fence panels!