An entrepreneur’s journey: From Kuopion Pakut to new horizons – Lessons and insights from my entrepreneurial path
Hello, I’m Timo Rissanen, the founder of Kuopion Pakut and now the CEO of Rowly – our mission is to help rental businesses succeed. I’d like to share my story, from starting as an entrepreneur, the right steps I took, and the mistakes I made along the way. I hope my story can help you, whether you’re just starting out as a rental business owner or you’re looking to develop your existing business, and help you avoid some of the pitfalls I stumbled into.
Kuopion Pakut – from a shot in the dark to structured growth
The year was 2016, and I did something any experienced auto industry professional would probably shake their head at—I bought a 2002 Mercedes-Benz Sprinter with 400,000 kilometers, knowing next to nothing about vans. The price seemed fair at €3,000. After that, I founded Kuopion Pakut and jumped into the rental business. In the beginning, my operations were based in Kuopio’s Petonen neighborhood, where my partner Piia’s hair salon was located. Customers picked up their rental vehicles from the salon’s parking lot, which worked well until bookings started piling up more than I expected, disrupting my partner’s actual work.
That’s when I realized the salon parking lot wasn’t the best place for a rental business, and I needed to make a change. I also decided to quit my day job in IT and become a full-time entrepreneur.
A new beginning as a full-time rental business owner
Once I committed fully to entrepreneurship, I rented space in Kuopio’s Puuilo building. This was a huge step, but also a pivotal decision for the growth of my business. Now I had room for an office and enough parking spaces for my fleet.
I decided to expand the fleet and acquired two more “new” vans. My selection now included a medium-sized Mercedes-Benz Sprinter as well as a small and a large van. I offered these vehicles at very competitive prices for customer moves and other needs. My service was genuinely flexible—customers could get the vans exactly when they needed them, whereas other competitors mainly offered daily rentals at high prices.
Expansion to Jyväskylä and Lappeenranta – and why partners are invaluable
In 2018, it was time to grow the business and open a second location. I chose Jyväskylä as the location and partnered with Antti Pesonen, who joined as a co-owner. Together, we built a partnership with Teboil Kukkumäki, but unfortunately, the gas station was later demolished to make way for a new hospital. We had to find a new partner and were fortunate to secure a great location with Neste K Kirri, which provided an ideal setup to continue our operations.
Before long, we expanded to Lappeenranta as well. A collaboration with another Neste K operator opened doors, and business started thriving there too. By this time, I had learned that successful partnerships are key to success. Doing it alone is possible, but with partners, growth is much easier—and more enjoyable.
When technology entered the game – the birth of the app
Antti and I started losing our patience as the phone calls never stopped, and the booking processes felt overwhelming. So, we decided to build our own app that would take bookings 24/7, answer customer questions, enable payments, allow signing rental agreements online, and automatically perform credit checks.
It was incredible to see how much it meant to customers that they could handle everything themselves without endless calls or complicated questions. They didn’t need a conversation partner—they just needed a van, quickly and easily.
Now, you might be thinking, “Hey, why not build your own software?” Here’s my advice: developing an app is not as easy as we initially thought. Now, we’ve spent the equivalent of a few homes’ worth of money, and without outside investors, the whole venture would have come to a halt. But the challenges and learning experiences have been worth it—we’ve built something that truly helps rental businesses operate more smoothly and efficiently.
The app’s success and selling the business
Our app became so popular that local rental companies began asking for it one after another. Even after hiring our first official employee, Joni Posti, to help with app sales and vehicle rentals, it quickly became clear that managing two businesses was simply too much for one small team.
This forced us to make a big decision: we separated the rental and software businesses in October 2022. We sold Kuopion Pakut, Lappeenrannan Pakut, and Jyväskylän Pakut to new owners in April 2023 and focused entirely on software development—to help other rental companies succeed as smoothly as we had. Today, we help rental businesses across Finland operate more efficiently, whether they’re renting snowmobiles, jet skis, or vans.
Hiring Joni Posti turned out to be a great decision—he is now a part-owner of Rowly and responsible for customer relations and business development.
Tips and insights
Automate as much as possible
In the beginning, I loved the personal touch of handling bookings over the phone and providing excellent customer service, but the truth is that the constant ringing soon became exhausting. At our peak, we were getting over 100 calls a day, and I had no time left for anything else. This was my first major lesson—automation should have been implemented from the start.
Always check customers’ credit
There were times when our vehicles ended up in the wrong hands. I especially remember the customers who couldn’t even get home insurance but were still able to rent a van worth tens of thousands of euros. Often, these customers caused damage and didn’t pay for it. These situations made me realize that not running credit checks was a significant mistake I should have corrected right from the beginning.
Invest heavily in website functionality, SEO, and Google Ads support
Even if your website looks amazing, if the content and technical setup aren’t what Google wants, it’s practically invisible. Think of it like this: you can build a stunning grocery store with every possible delight and flashing lights, but if it’s 30 kilometers away from any residential area and only accessible by plane, how many people will actually find their way there? SEO ensures customers can easily find you with the exact keywords relevant to your rentals. Partner with marketing experts, and keep in mind that just because your cousin’s friend knows their way around computers doesn’t mean they can build an effective website. A high-quality website is more than a pretty face—it’s a comprehensive experience that serves both users and search engines.
Ensure your insurance coverage—avoid unexpected pitfalls
Take the time to compare insurance options for your fleet carefully—it’s one of the most important steps to protect yourself from surprises. Remember, if you accept cash payments, fraud coverage may not apply—at least, that’s what our insurance policy stated. And if you’re renting vehicles, make sure they’re covered under the correct “rental without a driver” insurance category. Insurance can be a ticking time bomb if there’s an accident with an unknown driver.
Make pricing as clear as possible
When rental pricing is straightforward, the customer always knows exactly what the rental will cost. This reduces unpleasant surprises and builds customer trust—honest pricing is the best service you can offer. Avoid complex pricing models like “Fri-Sun rental €200, includes 150 km, extra km €1/km” or “Thu-Sat €195 if returned by 8:00,” etc. Customers are likely to choose a provider that doesn’t require a math degree to understand the total cost. Simple pricing means customers see at a glance what the rental will cost without hidden fees or complicated terms. When pricing is transparent, customers feel confident and know they can trust what you’re offering. This not only brings credibility but also a competitive edge in an industry where transparency isn’t always a given.
Make rental terms an integral part of the booking process
Don’t leave the rental terms in the fine print. When terms are part of the booking process, your customers know exactly what’s expected of them and what they can expect from you. This reduces misunderstandings and makes the rental process more transparent—no more unclear conditions, just straightforward and fair guidelines.
Increase the average rental value with add-on services
One of the best ways to increase the average rental value is by offering attractive add-on services that meet customers’ needs. Add-ons aren’t just a way to enhance the customer experience; they also give you the opportunity to boost revenue from every booking. It’s about giving customers more value while maximizing your business’s profitability. You could, for example, offer services like GPS navigation, extra insurance, additional equipment, or even a fuel fill-up service that makes life a bit easier for the customer. These small touches add comfort and ensure a smooth, stress-free journey. Make sure add-ons are a visible part of the booking process so that customers can easily select the services they need directly from the booking system without having to add them later. This is not only great for customer experience but also an effective way to increase average rental value without putting undue sales pressure on the customer.
Pricing tip
Keep an eye on the market in your area and monitor how others price their fleet. Why would anyone pay double for the same vehicle when they can get it cheaper elsewhere? Can you really offer customers enough added value that they choose to rent from you?
I’m not saying you should start undercutting prices and eating into your already tight margins, but I’ve seen some ridiculously high pricing in this industry. It’s no wonder some businesses wonder why bookings don’t come in. On the other hand, some underprice their rentals, ruining the market and forgetting that fleet maintenance isn’t free. It’s important to strike a balance—price so that your vehicles generate revenue, but customers still feel they’re getting value for their money.
Our app will soon include a tracking tool that shows how others price their products directly. With this tool, you can easily adjust your prices so customers don’t flock to competitors.
Data is your best friend
Make sure you thoroughly analyze the profit and loss of each product. It’s important to keep track of which vehicles are profitable and which ones need to go if they’re no longer generating revenue. In this business, there’s no point in holding onto something that’s no longer pulling its weight!
Dynamically price your products according to the seasons. If demand is high, why keep prices the same as when the fleet is just sitting around? The law of supply and demand is on your side, so make the most of it. Raising prices at peak season means you’re getting more out of the same fleet without extra effort.
Fully leverage GPS tracking
When renting out equipment, it’s essential to know exactly where it’s moving—especially when things don’t go as planned. RowlyGO GPS tracking makes this easy and helps you stay on top of the situation, even if your van is in the wrong hands.
I’ve personally experienced just how resourceful people can be. Once, a client’s mother booked a van in her name, then handed it over to her son, who didn’t return it on time and stopped answering calls. I checked RowlyGO to see where the van was going, called the police, and we got it back within an hour. In situations like this, GPS tracking saves both time and nerves—the van was back and available for rent after a quick cleanup.
Use this technology to your advantage and keep your fleet under control, no matter how complicated things get. GPS isn’t just for tracking—it gives you the power to manage your fleet efficiently and make smarter business decisions. Tracking also provides you with information on when regular inspections and maintenance are due, and helps confirm if the vehicle was refueled before return. This allows you to focus on what matters most: keeping your fleet operational and ensuring smooth rentals.
With RowlyGO, you can automate all of the above processes so that they’re always available to the customer at just the right moment during booking. This makes sales seamless and smooth—and, above all, boosts rental revenue with every click.
Final words
The entrepreneurial journey is always full of surprises, learning, and challenges. But the most important thing is to learn from your mistakes and keep developing your business. If you’re starting your own rental business, remember: anything is possible when you leverage technology and stay vigilant.
And even though my goal in the rental business was to scale up, the same lessons apply to a forester renting out a few log splitters on the side for a couple of hundred euros a month. Our app works just as well for his needs—whether it’s a big car rental company or a smaller equipment rental operation.
May your path forward be filled with success and the joy of learning!
– Timo Rissanen
Co-founder of Rowly
