Car Rental Business Plan Business Plan Articles If you are starting a car rental business, it is likely that you will require a business plan at some point. The experts at Pro Business Plans have extensive experience working with car rental companies to create plans for strategy and finance. This article provides information on what is generally included in the plan and how it is structured.
Strategic Analysis with current research! The Car Rental Agency Inc. The Company was founded in by John Doe. The business will also recognize revenues from the sale of insurance services and gasoline charges to customers.
At the onset of operations, the Company intends to have a leased fleet of 30 vehicles. The third section of the business plan will further describe the services offered by the Car Rental Agency. The interest rate and loan agreement are to be further discussed during negotiation.
Doe has more than 10 years of experience in the automotive industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
Doe expects a strong rate of growth at the start of operations.
Below are the expected financials over the next three years. Doe intends to implement marketing campaigns that will effectively target individuals, tourists, and business travelers within the target market.
The Company is registered as a corporation in the State of New York. Below is a breakdown of how these funds will be used: Doe is not seeking an investment from a third party at this time.
Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Rental car company business plan will hire a qualified business broker to sell the business on behalf of the Car Rental Agency.
Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings. The Company will have three tiers of rentals including economy, standard, and luxury. A limited number of luxury vehicles will be held on the lot for wealthy tourists and business travelers. This is an important secondary steam of revenue for the business as sales of additional car insurance will generate substantial gross margins for the Car Rental Agency.
Additionally, the Company will charge substantial fees to customers that do not return the vehicles with full gas tanks. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows.
Many economists expect that this recession will continue until mid, at which point the economy will begin a prolonged recovery period. However, Car Rental Agencies typically operate with a strong degree of economic stability as business travelers will continue to need vehicles for their business trip needs.
This is a mature industry, and the future expected growth rate is expected to equal that of the general economy.
As mentioned above, despite the currently high gasoline prices, the industry will continue to remain profitable as business travelers will continue to require rented vehicles during their business trips.
In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages.
Below is an overview of the marketing strategies and objectives of the Car Rental Agency. Doe intends on using a number of marketing strategies that will allow the Car Rental Agency to easily target tourists and business travelers coming to the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet.
Below is a description of how the business intends to market its services to the general public. The Car Rental Agency will also use an internet based strategy.
This is very important as many people seeking local services, such as car rental agencies, now the Internet to conduct their preliminary searches. Doe will register the Car Rental Agency with online portals so that potential customers can easily reach the business.
This marketing feature is common to most companies that rent cars to the general public. The Company will also place advertisements on major travel portals such as Expedia, Orbitz, and Travelocity. Doe will also develop relationships with local travel agents that will make arrangements for rentals among people that are traveling through the target market.
You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically.Equipment Rental equipment rental sales business plan executive summary.
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