DETROIT – This industry is considered a very competitive market. But if you do everything right, it could be a very profitable investment. Read our guide, which we hope will help you prepare for starting a car rental business from scratch.
Tip 1. Find your best fit
What type of business do you want to own? Perhaps you should explore the main companies in the market and see what they specialize in. One of the good examples in Dubai – renty.ae. This platform rents and rents cars. Customers can rent one of more than 700 cars for tourism or business. They offer to rent not only luxury Lamborghinis or Ferraris, but also offer a wide range of budget cars. They bribe customers with the best value and quality service, which is why many come back to them to rent a car.
Get ready-to-use solutions from existing and successful businesses. It’s faster to organize, you can count on the huge support of a popular brand and financial assistance. Disadvantages include a lack of full decision-making autonomy and a high financial contribution.
This means you have an agreement with a car dealership. It is based on a small number of customers and does not require a large parking lot.
In this case, you are free to make your own decisions and not depend on anyone. But be prepared for additional responsibilities: finding customers, competing with well-known brands, high financial investments and risks.
Tip 2. Identify your customers
It is important to understand the target audience you plan to work for and what their needs are. These can be tourists, car dealerships, or short or long term rentals. Your services need to meet market needs.
Tip 3. Business plan
This will not only help you clarify your future actions but also attract potential investors. Describe a business model you plan to engage in, the services offered, rental car prices, and the minimum budget you need to start a business. On the Internet, you can find free business plan templates.
Before setting prices, make sure they cover maintenance, insurance, office costs, salaries and marketing costs, and research your competition. Note that in the near future, rental prices are likely to be lower, due to increasing mileage and age of automobiles.
Tip 4. Obey the law
Decide on the legal entity and study the laws of the city where you plan to work. The obligatory clause is the receipt of various permits and appropriate business licenses. It is advisable to get recommendations from a professional attorney. You can also think about your work accident insurance, embezzlement, etc. And don’t forget to invent and register the brand name.
We advise you to open a settlement account and a special credit card for business transactions. You may also need to obtain an identification number. After that, you will be able to open bank accounts and take out loans. Also pay attention to rental contracts for customers.
Tip 5. Choose a seat
Often a location is the key to a rental company’s success. The most popular solution, but which requires more costs, is the opening of its representative office at the airport or near the hotel complex. But maybe that’s not the best idea to start with.
Tip 6. Choose a team
Look for employees who will work with customers, help with the purchase of consumables, answer phone calls, be accountants and mechanics for the automotive service. In the beginning, you can hire 2-3 workers.
Tip 7. Launch the online platform
More people will learn about your business if you have a website. You can also create social media pages and pages on Google. There, your customers will be able to leave reviews and communicate with a representative person. This will help build a company’s reputation and attract new customers.
Tip 8. Provide quality service
Remember: your business will only be profitable if you can engage and delight customers. To make that happen, you need to provide exclusively high-level service so people will want to revisit and recommend your brand to their friends.
This article was provided by Daniel Brunson.