Buy vs. Rent vs. Borrow

Smart strategies for accessing equipment without draining your bank account.

The Cash Conservation Principle

Every dollar you spend on equipment is a dollar you can't spend on marketing, insurance, or keeping the lights on while you build the business.

This doesn't mean be cheap. It means be strategic.

The goal is to get access to what you need while preserving cash for what matters most: staying in business long enough to succeed.

The Decision Framework

For any piece of equipment, ask these questions in order:

1. Do I actually need this?

Many purchases are "nice to have" disguised as necessities. If you can do the job without it (even if less efficiently), you might not need it yet.

2. Can I borrow it?

Friends, family, neighbors often have equipment sitting in their garage. Ask before you buy.

3. Can I rent it?

For occasional-use items, renting is often smarter than owning.

4. Should I buy used?

Used equipment at 30-50% of new cost is often the sweet spot.

5. Should I buy new?

Sometimes new makes sense—warranties, reliability, specific features.

When to Borrow

Borrowing works best for:

• Testing a new service: See if you like gutter cleaning before buying a 28-foot ladder
• One-off jobs: Customer needs something you don't normally do
• Expensive rarely-used items: Specialty tools you might need once a year
• Starting out: Get your first few jobs done, prove the concept

How to Borrow Well

• Ask clearly: "Can I borrow your pressure washer Saturday? I'll return it Sunday evening."
• Return it better: Full tank of gas, cleaned, on time
• Offer something back: "I'll mow your lawn this week as a thank you"
• Don't overuse the privilege: Borrow occasionally, not constantly
• Have a backup plan: What if they say no or it breaks?

Who to Ask

• Family members
• Friends and neighbors
• Other service business owners (non-competing)
• Local tool libraries (yes, these exist in many cities)
• Buy Nothing groups on Facebook

When to Rent

Renting makes sense when:

• You need it rarely: Less than 5-10 times per year
• It's expensive to own: High purchase price relative to rental cost
• It requires maintenance you can't do: Complex equipment
• You want to try before buying: Test different models/brands
• The job pays enough to cover it: Factor rental into your quote

Common Rental Sources

Home Depot / Lowe's Tool Rental

• Pressure washers: $40-100/day
• Ladders: $25-50/day
• Floor sanders: $50-70/day
• Carpet cleaners: $30-40/day

United Rentals / Sunbelt Rentals

• Commercial-grade equipment
• Longer rental terms available
• Better for bigger jobs

Local Hardware Stores

• Often have rental programs
• May have better rates than big box
• Build relationships for better deals

Specialty Rental

• Truck rentals (U-Haul, Home Depot, Penske)
• Trailer rentals
• Moving equipment

Rental Math Example

Pressure washer decision:

• New commercial unit: $800
• Rental cost: $60/day
• Break-even: ~13 rentals

If you'll do more than 13 pressure washing jobs per year, buying makes sense. If fewer, keep renting.

But also consider:

• Rental availability (is it always in stock?)
• Time cost of pickup/return
• Convenience of having your own
• Ability to take last-minute jobs

When to Buy Used

Used equipment is often the best value for:

• Your primary tool: The thing you use most
• Proven, simple designs: Fewer things to go wrong
• Items with long lifespans: Well-maintained equipment lasts
• When cash is limited but need is real: Get working now, upgrade later

Best Items to Buy Used

• Lawn mowers (residential and commercial)
• Pressure washers (if you can test them)
• Ladders (inspect carefully for damage)
• Hand tools
• Vacuums (test suction)
• Dollies and hand trucks
• Basic power tools

Used Buying Tips

Where to look:

• Facebook Marketplace (most active in most areas)
• Craigslist
• OfferUp
• Estate sales and auctions
• Pawn shops
• Going-out-of-business sales from other service companies

What to check:

• Does it start/run properly?
• Any unusual sounds or vibrations?
• Visible damage or excessive wear?
• All parts and accessories included?
• Why are they selling?

Negotiation:

• Everything is negotiable
• Cash talks—offer 10-20% below asking
• Point out any flaws as negotiating leverage
• Be ready to walk away
• Bundle multiple items for better deals

Red flags:

• "Ran last time I used it" (when was that?)
• Won't demonstrate it working
• Pressure to decide immediately
• Price too good to be true
• Missing key components

Used Pricing Guidelines

Good used prices are typically:

• 40-60% of new for excellent condition
• 25-40% of new for good condition
• Under 25% of new for "project" condition

When to Buy New

New equipment makes sense for:

• Safety equipment: Ladders, harnesses, safety glasses—don't risk your life on used
• Items with important warranties: Expensive things that could fail
• Technology that improves rapidly: Newer often means significantly better
• High-use items where reliability matters: Your primary money-making tool
• When used market is sparse: Some items rarely come up used

Where to Buy New (Best Value)

Discount/Warehouse:

• Harbor Freight: Great for occasional-use tools
• Costco/Sam's Club: Occasional equipment deals
• Northern Tool: Good for commercial-grade

Big Box with Price Matching:

• Home Depot and Lowe's price match each other and Amazon
• Check prices before buying, ask for match

Online:

• Amazon (watch for counterfeits on name brands)
• Direct from manufacturer
• eBay (new items from authorized sellers)

Timing:

• End of season sales (lawn equipment in fall, snow equipment in spring)
• Holiday sales (Black Friday, Memorial Day, Labor Day)
• Model year changeovers

The Hybrid Approach

Smart operators mix all strategies:

Example: Starting a Lawn Care Business

Total: ~$395 vs. $1,500+ buying everything new

Building Relationships for Better Access

Long-term, relationships beat transactions:

With Other Service Providers

• Trade equipment access
• Refer overflow work
• Share specialty tools
• Buy group deals together

With Rental Shops

• Regular customers get better treatment
• May offer discounts or extended hours
• First call when good used equipment comes in

With Equipment Dealers

• Know about upcoming sales
• Trade-in options when upgrading
• Service and repair relationships

Tracking Equipment Costs

Know what your equipment actually costs:

Per-Job Cost

Formula: (Equipment cost ÷ Expected jobs) = Cost per job

Example:

• Pressure washer: $400
• Expected jobs over its life: 200
• Cost per job: $2

This helps you price jobs accurately and decide when to upgrade.

True Cost of Ownership

• Purchase price
• Maintenance and repairs
• Fuel/consumables
• Storage
• Insurance (if applicable)
• Depreciation (for future resale)

Action Steps

1. List equipment you need for your chosen service
2. Categorize each item: Must have now vs. can wait
3. For each must-have: Can you borrow it first?
4. For items you'll buy: Search used market first
5. Calculate break-even for rent vs. buy decisions
6. Set a total startup budget and stick to it

Next lesson: The phone, apps, and systems that actually run your business.