Do you have all the tools you need?

It is not a bad idea in some areas. Before you spend any money on a location or tools, you need to do a LOT of research. Jim W mentioned valid issues. You should also check into potential competitors. Where I live, Habitat for Humanity runs a tool library where you can borrow many tools, including those you would likely have in your shop. If a similar service is available near you, the value of your 'product' is significantly reduced.

If I didn't already have my own tool corporation in my basement, lol. It's a good idea for qualified patrons, but the majority of people aren't mechanically inclined and don't know how to use tools properly, so give classes too. And teach tool safety. All my woodworking tools are sharp like a razor.

Where are you?

Neat idea for a big city. The more rural the area, the more likely it is that the person already has a shop and all or most of the tools he needs. For the other tools, there is always Rent-A-Center.

Its better to offer your services directly to customers; those that need something done will contact you to do it for them - on site or in your workshop -

People that can handle tools; have their own tools.

Renting a workshop to amateurs is very risky ( even by signing a waver you will get lots of headaches and maybe even serious damage to customers ).

Plan B is to offer training courses in DIY, safety and tools overview etc.

Good luck.

Before you spend too much time and money pursuing this project you should talk to your insurance agent about liability insurance. Next talk to the local AHJ about zoning. This is a common undertaking but the tool expenses are large, the profit narrow and the risk is immense.

Sounds good - bear in mind though you need proper insurance in case somebody injures themselves on your premises.

No, I don't.

no