Want to take your love of cars to the next level? Why not make money out of them? An auto industry business allows you to purchase more cars but all for a good reason. Own a fleet that can generate you money. With people avoiding public buses and transport nowadays for their safety and comfort, there is a high demand for a car rental, despite air travel restrictions.
From establishing your target customers to investing in fleet solutions, here are the things that you should do:
1. Know Your Target
Knowing your target customers beforehand can help you during your planning stage. The following personas can be your target customers:
- Travelers or tourists
- Long-term car rentals
- Short-term car rentals
Once you have your target audience, you can build up your business and marketing strategy to speak to your chosen audience. When selecting your target, keep in mind that you must first assess the need for the type of car rental business you have in mind in your location.
2. Select A Type Of Car Rental Business
You can choose from several car rental businesses.
- Independent Small Car Rental Business
You can start your own small car rental business from scratch. The best thing about starting your own small business is that you only answer to yourself and your customers. You have the power and control to make decisions that you believe are the best for your company and yourself. However, being the boss also has its drawbacks. You will have more on your plate, being the head of the business. You will be the one to shoulder every problem that your small car rental business will have.
If you are starting from scratch, you must have a marketing strategy to get your name out there. You will be competing with more famous names, so you will need to offer something that they do not have to set you apart. Of course, you will need sufficient funding to start your business. From purchasing your fleet of cars and assets to buying a license for fleet solutions such as asset maintenance management software, you will need to be able to support these initial costs financially.
- Car Rental Franchise
If you do not want to deal with the nitty-gritty of having to start a business from scratch, you can choose a car rental franchise. One of the benefits of franchising is that everything is in place for you: structure and model, brand, and marketing. You do not need to struggle to promote your brand, especially if you choose to buy an established and well-known franchise.
Starting a car rental franchise can be costly, but setting it up is much simpler. You will be provided with training and guidance on how to grow your franchise. The guesswork is taken out for you. However, the primary control over big decisions will always be on the franchisor. If that works for you, then a car rental franchise is your best option.
- Partnership with Dealerships
If you want to start small, you can strike up a partnership with your local dealership. They can offer your rental cars to their customers who have their vehicles for repair and maintenance. While this might not make you big overnight, it allows you to start with a small fleet of cars while slowly starting to build your name.
- Buy an Existing Car Rental Business
Buying an existing business has many benefits. The business model and structure are already up and running, and there is already an existing customer business. Look for car rental business owners who are looking to sell because they are either retiring or are moving to another state or country. You can seek the help of a reputable business broker to look for car rental businesses on sale.
3. Create Your Business Plan
A business plan is an important document and tool for you and any other future partners. Write down in detail the car rental business type that you will open, the products and services that you will have, proposed fees and rates, funding options, marketing strategy and plan, and sales projections.
Your business plan will help you keep on track to meet your business goals. You will also need it if you have to borrow money from the bank.
4. Apply for Licenses and Permits
To make your car rental business legit, you will need to secure some permits and licenses to operate. Choose your business entity, whether you are a sole proprietor or an LLC. Register your business in the state where you will manage your car rental business.
Once you have done these things, you will need to put your finances in place, find real estate, and hire your team. You might feel overwhelmed by the things that you need to do. But with patience and grit, you will have your car rental business up and running in no time.