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Business Advice On Setting Up A Vehicle Renting Company
We all have goals we want to pursue and starting a business, creating a work environment and structure that works for you, is certainly high up on the list for many. Whether you are still in the research phase of what your business should be and looking for more information or rather; you already know you want to start a vehicle leasing or hiring business, then you have landed at the right place.
We have developed a simple guide and collection of business advice on setting up a vehicle renting company. With determination, passion and commitment – anything is possible, even being your boss one day. So let's get into foundations of how to get started.
1. Industry compatibility and research
The first thing to consider is whether or not the industry of automobiles and the leasing and rentals thereof is a compatible industry and sector for you to work in and make a success of the venture. Possessing an in-depth knowledge of vehicle mechanics and the driver's experience is undoubtedly an advantage to getting started but for some, only having a passion and a drive to create a lucrative business model and a thriving entrepreneurial venture could be motivation enough.
Either way, do your research into the industry, especially concerning your geographical location and the potential target market within your area or city. This will help give you an idea of how much interest and clientele you could potentially market to once you get started.
Think about draw cards you could have surrounding you in your location, which might add value to the car rental business such as:
- Business Centres and Hotels
- Insurance agencies
- Car Dealerships
One important element to identify in your city or area is the proximity of your potential competitors and how they may compete in various ways with your business such as the vehicles they rent out, their marketing campaigns and platforms and the brand loyalty they might have. These are all important things to note when researching and initiating your entrepreneurial venture.
2. Plan your business model
Once you have a clear understanding of your target market and competitors as well as your geographical location and the associated requirements and critical elements thereof to keep in mind, you can now structure and build your business model.
Planning is the crucial phase in any project if not the most important. There is a common phrase which comes to mind, "If you fail to plan, you plan to fail." This could not be truer with many start-up business ventures.
There are various areas to which you should apply careful and meticulous planning, and if done correctly, you will find your business starting with a strong foundation.
So where do you start, what do you plan?
- What type of vehicles are you going to lease or rent?
- What types of leasing contracts will you offer? Short Term, long term or both?
- Where will you get the start-up capital it would need to build your fleet?
- The brand personality and culture you aim to communicate to your target market?
- How will you market and advertise your business and offerings?
- What will set you apart from your competitors?
- How many staff will you be able to take on at the start of the business?
- What form of licensing and permits will be required to lease or rent out vehicles?
These are but a few of the questions you should be asking and answering yourself during your planning phase. This will assist in a clear understanding of your capabilities and limitations as well as creating a firm business model to implement your business towards becoming successful.
3. Implement your business plan
Once you feel confident that you have successfully developed a business plan which will not only work for you but which has the potential to flourish into a growing, sustainable and lucrative business, make sure you invest, even if it isn't a lot, into a good brand identity.
In the world we live in today, it is essential as any business owner or aspiring one at that, to stay on top of the marketing and advertising trends such as social media platforms and reach. This will not only get your business name out there quicker, but the reach can spread out faster than word of mouth used to, if done correctly and through the appropriate channels.
A logo people can trust, a brand people can rely on and a service that defines quality and loyalty; these are aspects people will look for in a car rental business and any business for that matter. Do some research on rental companies all around the world and gain some understanding and insight on how they developed their service and brand and see where you can learn, such as SC Vehicle Hire.
4. Get covered
So many start-up entrepreneurs try to take the shorter or more accessible route to success by skipping a few steps along the way. Usually, these steps come back to haunt you and could potentially harm the growth of your business before it had a chance to thrive.
Please put it in the time and money that is needed to make sure your business, regulations, licensing, and permits are all above the board. Once you have all this in place, it is highly recommended to find suitable and comprehensive insurance to cover your business operations, service delivery and of course the most critical assets – the fleet.
Keep in mind that renting vehicles out, whether short term or long term, will always pose a risk to the business as you put your cars in their hands. There are different scenarios or situations which could play out and ensuring you are covered by adequate insurance will help save you in the long run.
5. Hire a team, execute the vision
Last but certainly not least, hire the team you can rely on to help execute the vision through quality service, transparent contracting, ethical practices and salesmanship as well as vehicle maintenance staff to assist with keeping your vehicles in the fleet in good condition for the customers.
It is vital to have a team you can trust and count on to help take the business into a thriving and competitive industry where the potential to grow and flourish is possible.
While we understand that it might not be as easy as step one through five as we have outlined here, however, understanding the foundation and gaining insight into the essential aspects of starting a vehicle hiring business is already half the way there.
Tell us your story
Are you looking to promote your business?
South African automotive businesses or travel business can create your free business listing on nichemarket. The more information you provide about your business, the easier it will be for your customers to find you online.
Registering with nichemarket is easy; all you will need to do is head over to our sign up form and follow the instructions. If you require a more detailed guide on how to create your profile or your listing, then we highly recommend you check out the following articles.
If you enjoyed this post and have time to spare why not check out these related posts and dive deeper down the rabbit hole that is vehicle management.
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