How to open a business so that it brings a steady income? First of all, it is necessary to study the needs of the market and the demand for a particular service or product. If you live in the resort area or in your city there are historical sites, business centers that attract tourists and visiting business travelers, then it is worth considering options for opening a car rental, organizing the company correctly so that it becomes profitable.
Where to start your own business?
The demand for car rental is explained by the fact that in this way visitors can save on a taxi and get freedom of movement. According to statistics, the majority of consumers (seventy percent) are people who came from other cities or countries, and 30% are local residents. The service is very popular, especially in the summer.
At the beginning of the activity, a car rental business plan is developed, it must take into account the experience of such organizations, their advantages and disadvantages. After that, your own business must be formalized as a legal entity. A suitable form is a limited liability company. Next - registration with the tax authorities. Then you need to choose and rent a room where the company’s office, garage and parking will be located.
Financial expenses
The cost of registering a company is two hundred and fifty dollars, for the rental of the office it will be necessary to pay an amount from six hundred to seven hundred dollars. Cash investments will require the acquisition of a fleet of cars and garage premises. In addition, all vehicles must be insured (for example, in case of an accident).
It is necessary that the business plan for car rental includes the organization of its own repair base for depreciation of equipment. Be sure to have to pay taxes, pay salaries to employees. Total expenses may amount to one and a half percent of the total income. When starting a business, you can get a bank loan as a starting capital. The main costs of opening a business include investment in advertising.
You need to start promoting the company at the same time as its registration, so that by the time it functions, you have a potential client base. Information can be placed in newspapers, where they publish free ads, on websites on the Internet, on television. It helps to attract customers and visual advertising on the streets. Investments in the promotion of a business can be about three thousand dollars.
Unforeseen expenses are also included in the car rental business plan. These, for example, include car accessories with satellite systems, which track their location. You can organize a business in another way - to acquire a franchise. Then you do not need to engage in project promotion. After all, you will work under the name of an already well-known company.
But for the right to use its name you will have to pay a large sum, it can be from eight hundred ten to one million two hundred twenty thousand rubles. In addition, such an approach will deprive you of the opportunity to act the way you want, and it will be necessary to obey corporate rules. For using the brand it will be necessary to pay monthly ten percent of the profits.
Car purchase
Necessarily a business plan for car rental involves the purchase of cars. There should be from ten to thirty, and approximately half of the total number are foreign cars belonging to the economy class. The rest are domestic models.Foreign-made cars can be purchased for one hundred thirty-one hundred forty thousand dollars.
To purchase models of the domestic automobile industry, fifty thousand in American currency will be required. If you buy cars with hands, with mileage, then the amount will decrease further. You can meet the twenty thousand dollars. But a significant minus - in this case, overhaul of vehicles is required.
Services
The cost of car rental is formed in accordance with their class and brand. To make a profit car rental, a business plan may include the following rates. Provision for temporary use of the "Lada" will amount to nine hundred and fifty rubles per day.
Customers will pay from 1400 to 1560 rubles for an economy-class foreign car, and from 1800 to 2650 rubles for twenty-four hours for a representative class. Consumers can be attracted by a discount system. If the client does not want to drive the car himself, he will be able to hire a professional driver in your company. Most often this service is offered if the client rents a luxury car, a foreign car.
Staff recruitment
Undoubtedly, car rental as a business is very attractive for an entrepreneur. As in any other organization, hiring a company staff is required. It will consist of several people.
It will require an administrator, accountant, driver, technician and security specialist. The last employee is responsible for all issues related to insurance, he contacts the insurance company, resolves disputes arising, approves rental applications.
At the beginning of the existence of a rental company, such a specialist can be attracted from outside, rather than being hired on an ongoing basis. The duties of a technical worker include the issuance of machines, their ongoing repair and maintenance.
Payback
Calculating the profitability of a car rental is quite simple. We must proceed from the workload of one machine. If this indicator is seventy-five percent, then the profit for operating ten cars per month will be four hundred and twenty thousand rubles. Of this amount, taxes and salaries are paid to employees, as well as machine maintenance and possible unforeseen expenses.
Net income from the enterprise will be three thousand dollars a month or a little more. With proper organization, car rental can bring a stable income. The business will turn into a successful enterprise, it will be possible to expand it and acquire a larger fleet of cars. A business will pay off in about a year or two.
