Welcome: Analysis breaks paralysis
by Clair Urbain, editor, publisher
The fateful months following the worldwide scare of the COVID pandemic seem like a distant memory, but in hindsight, some good became of it for All Seasons Rent-All in Aurora, Colorado.
Scott Goodwin, president of All Seasons Rent-All was extremely worried how the drop-off in party and entertainment rentals were going to affect his business. So he pulled out his Excel spreadsheet expertise and started analyzing the business sectors, comparing which rental segments provided the most opportunity – and most vulnerability – during those challenging times.
He was surprised (and relieved) to find that party and entertainment rentals were responsible for just 9 percent of the company revenue; however further analysis revealed that party and entertainment rentals were responsible for 40 percent of the company’s labor and effort.
That revelation helped Goodwin to make the hard decision to deliberately get out of the party and entertainment rental business. Today, it only rents tables, chair and stages; he refers requests for bounce houses and concessions goods to another store across town. While it once viewed party and entertainment rentals as a key part of the company’s DNA, the staff now concentrates on growing its fleet of smaller excavation and material-handling equipment, serving DIYers, contractors and subcontractors.
Analysis helped Goodwin concentrate on the segments of his business that yielded the best return on investment and effort. It’s business moves like these that can only be done by looking at the books with a discerning eye. That type of analysis can break business paralysis.
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This article originally appeared in the September-October 2024 issue of Pro Contractor Rentals magazine. ©2024 Urbain Communications LLC. All rights reserved.
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