last updated 30/03/2020
Keep It Coming
last updated 30/03/2020
Rentronics offers recurring income from a five days per week business for energetic entrepreneurs
'This is a very, very profitable model. For the right person it’s easy to run, is mostly five days a week, and provides a recurring income. That means you only have to make each sale once and, unless you do something horribly wrong, that revenue should continue to grow.
‘Banking, finance, insurance, even software these days – they all work on the recurring revenue model. This is a chance for an entrepreneur to build a sizeable business on the same basis.’
Aman Jain knows what he’s talking about. He’s been in the electronics rental business for over 15 years. In 2016 he founded Rentronics, a New Zealand owned and operated company which specialises in household appliance and furniture rentals, and brought in an old colleague, Alan Payne, to help. Alan has had 30 years in franchising, including spending seven years growing an Australian rentals company.
Steady income at all times
Rentronics offers a wide range of categories, including whiteware, fitness equipment, home and office furniture, TV and audio, computers, tablets and phones, and even lawnmowers. With the first franchisees well-established, Rentronics is now offering the opportunity to entrepreneurs throughout the country to get involved in a business that provides steady income even at times when others that rely upon discretionary income are suffering.
‘For a lot of people, appliance and furniture rental makes a lot of sense,’ says Aman. ‘If you’re on a fixed income, there are certain things you have to have but planning your finances to afford them can be a problem. High up-front costs, interest rates and unexpected maintenance bills are a real problem for many people – but rent from Rentronics and you know your outgoings and get free service, free delivery and free installation so your repair or replacement costs are covered. It’s also an appealing option for new migrants, people moving home, those doing up houses for sale or short-term business needs.’
Low overheads, steady growth
A big attraction for franchisees is Rentronics’ Step Cost business model. ‘This allows for a new franchisee to start off operating from home then grow as the business grows,’ says Alan. ‘It means that they don’t need to open a showroom until the benefits are there.
‘It’s about controlling costs. Our model ensures you don’t need to hold a lot of stock. Customers use the website or phone you to find what they want and get a quote, and when a new client comes on board, there are security checks before you have to deliver the item which gives you plenty of time to order it from the supplier. Up to about 200 units, say, you can operate from a house, shed or garage and build the business with a van and an installer before you need premises. Even then it will be cheaper destination-type premises rather than a high street location. If you’re covering your costs on the first 200 units, after that an increasing percentage of profit goes straight to the bottom line.’
Rentronics franchisees don’t need a massive up-front investment, either. ‘You require around $75,000 capital to start up, then everything else is funded as you grow,’ says Alan. ‘We have funding arrangements in place with a couple of the banks, subject to their approval process, so it can be straightforward.’
Easy to operate
Alan and Aman say that they have put their experience into developing comprehensive and easy-to-use operating systems for Rentronics franchisees. ‘Extensive initial and ongoing training is provided, supported by Rentronics proprietary software to help you keep on top of your growing business,’ says Aman.
‘We supply the system and training, you provide the energy and enthusiasm in your territory. You need to be positive, the sort of person who gets on with people, and have the energy and work ethic to build and manage a small team of staff.
‘It’s a great business for someone in their 30s or 40s, perhaps with a family and a bit of money in hand, who is looking to create something worthwhile with recurring income for a better lifestyle. Having said that, we’ve seen a lot of really successful people who are older than that. It’s not about having a sales background, it’s about being able to talk to people, to listen to them and understand different people and their needs. One very successful operator used to be a taxi driver, which makes a lot of sense.’
Is it for you?
Alan sums up: ‘Rentronics offers you the opportunity to create a substantial income and a significant asset from working five days a week. The entry cost is very reasonable and funding arrangements are in place to help you grow.
‘With the backing of a team with a strong track record of helping franchisees build highly-profitable rental businesses, this is an opportunity not be missed. Contact me today and find out more.’
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