Starting a car hire or rental business can be very lucrative especially areas of high business activities and many visitors, as well as areas with huge population engaging in different activities.
This business can be lucrative but it requires huge sum of money and really good managerial skills for the business to be successful. Starting the business requires you to conduct some research to know the nitty gritty of the business.
How to start a car hire business
- Do a feasibility study
A good feasibility studies is an evaluation and analysis of the potentials of the business in order to determine whether it is technically feasible to start the car hire business or not. The feasibility studies evaluates the following”
- The gap or need to fill
- Who to target
- What the people want
- Profitability of the business
- Risk involved
By the end of the studies this will clearly give the entrepreneur what to expect from the business. The feasibility studies should also analyze the strategy, weakness, opportunity and threats to the business.
- Decide who you’ll target
You cannot just make anyone become your Client. Who you target will go a long way in helping define your business strategy and structures.
- Evaluate your competitive advantage
You’re new and cannot use the same old car hire strategy others are using. You have to come up with a new tactics to give you an edge over others. It could be a different car, pricing or a better service delivery that gives you a unique advantage over the others.
- Register and get business licences
Register your business with a name that is simple and appealing to people. Get business licences that give you the permit to operate as a car hire service business. The licenses will be differ from state to state and Federal Government. Insure the business to transfer any losses or unforeseen occurrence to an insurance company.
- Write a business plan
The business plan will be a guide as you run the business. The business plan should include the mission, vision, financial plan and cash flow projections, service delivery, required capital, marketing campaign and expected marketing sales.
- Purchase the equipment
The main and major equipment needed for the business is a car. Buy the cars need for a start, which could either be brand new or used cars.
- Find a location
The location of your business cannot be arbitrary; you have to be strategic in locating your car hire business. You’ll need a place with high traffic of guest and visitors who will need to hire a car. Such places could be Airports, Bus stations, Train stations and Hotels. Don’t forget to make you sign very visible.
- Market your business
Choose an appropriate and effective means of telling people about your car hire business. You can begin by telling them on a door to door basis and using flyers. As the business grows, other forms of marketing can be employed. Note also that the best form of marketing is one that comes from word of mouth from satisfied customers. So make every effort to satisfy your customers.