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.
There are many things to consider if you are starting a car rental company that investors will consider before funding your company. For instance, the precise location of the rental stores can play a large role into your success. The models and styles of cars that you have can also play a role, along the capacity and follow-up marketing strategy. The budget that you have to manage the car rental location must also be relative to the revenue expected. Each unique factor combines to compose the business model and forecast returns.
The business model section of a car rental business plan covers many factors from how cars will be sourced, maintained, and the process they will be rented. This is partially based upon the background of the management team that must demonstrate how their background is aligned with operating such a facility. This section may not require as much detail if it is to open a franchise location, which already has a solid business model in place.
The location of the car rental company is based upon several factors including not only the demographics of the vicinity , but also the specific area within it. An airport car rental location is much different than one located several miles away from the city center in a residential area. It is not necessarily the case that the location will sink or swim, but that the business model needs to be adjusted accordingly.
There are several elements to cover the operations aspects of a car rental company. Most major franchises already have fulfilled the operations requirements with everything from what cars to procure to legal documents and salvage. Therefore, it if you are not opening a franchise, it is important to have an operations structure in place whereby you outlined each element as it relates to the operations of the facility.
The marketing section of a car rental business plan is based upon several key factors including having a good reputation, making the process easy for the customer, and promoting when users search for a rental car. The marketing section is not universal for all companies, therefore, using a template or applying a universal response in the strategy will not likely be successful or well received by prospective investors .
The reputation management is key to any brand as it scales, even if it operates by serving tourists as its primary demographic. Therefore, the company must be able to sustain a positive image in the market through a combination of positive reviews and an outstanding reputation. Consumers search based on the reviews of their peers, so having poor ratings on Yelp! or Google Places will almost certainly lead to long-run profit declines.
The promotion section within a car wash business plan is presented as a way to provide information about it will acquire long-term customers. The acquisition of customers often requires consistent promotions at a low cost such as organic search traffic, referrals through strategic partnerships, or other channels to build the promotions around.
The financial forecasts for a Car Rental will essentially diverge under two circumstances based on whether the Car Rental is online or offline. If it is offline, its size will be shaped by its location and capacity. Once this has been determined, the most effective way to form financial projections is based upon prior operation history with an analysis of comparable Car Rentals. For instance, if you have 100 slot machines and 600 hotel rooms, the financial performance of similar sized Car Rentals would be analyzed in order to form an estimation.
The financial projections of the company are put in place for two reasons. The first reason is to identify key risk areas within the business model that could divert its path to profitability. The second is to determine the company’s ability to generate the desired profit level, be it from banks looking for interest or investors looking for dividends and equity. These factors are combined to form the revenue projections and budget forecasts in the form a three to five-year financial model.
The revenue projections for a car rental business plan are generally based upon the assumptions provided in the operations section including the number of cars, the capacity level of them being rented, and any other services sold. For instance, the rental car company may also sell insurance or generate a premium from all costs associated with re-filling the vehicle with gasoline.
Regardless if you are opening a new business, or expanding an existing one, having a business plan can help you to make more informed decisions and manage your money. It is also required by many lenders as part of your loan application.
This business plan template is updated annually to reflect the most up-to-date information on how to create a profitable operation. It was created by Chase Hughes, our CEO, and has evolved over hundreds of client engagements over the past 10+ years to become the backbone of operations and management for 1,000s of entrepreneurs.
Project future revenues using real industry data
Fully-compatible with Microsoft Excel and Word.
Critical information for operating and running the business.
Annually updated market research specific to your market.
A Business Plan is a description of the business, market, and expected financials. Plans may be used to increase sales and profitability, outperform competitors, and used to obtain bank loans or investor funding.
For startup founders and small business owners, the Business Plan is a fundamental resource for managing the business and making educated business decisions about the company’s future.
There’s no need to reinvent the wheel, though. There’s a standardized set of information and variables for most small businesses including the financial model, market research, and basic business overview that most executives are familiarized with.
Summary of what it does, how it operates, key staffing and operations procedures, risk & success factors, and management team bios.
Third-party information on the market size, key trends, growth rates, and competition both overall and for a specified region.
Complete financial projections including Revenue, Cost of Goods Sold, and Operating Expenses to produce Profit & Loss statement, Cash Flow statement, and Balance Sheet.
Comprehensive plan including market launch, social media, promotional strategies, pricing strategy, and web presence.
This is a functional model you can use to create your own formulas and project your potential business growth. Instructions will be included on the front page.
