Car Hire Business
Car rental business involves renting out vehicles to individuals who may need a vehicle for a brief amount of time, mostly people on vacation, businesspeople among others. Though it may sound intimidating or expensive to most aspiring entrepreneurs, you can start small with a few vehicles and build the business from there. To rent out a vehicle, you there is paperwork involved such as verifying a customer’s driver’s license and processing payments.
What you need:
- A Fleet of vehicles – You can purchase your own fleet (which is might be expensive) or enter into a contract with car agencies or companies and individuals that can rent their vehicle to you. You can also franchise a car rental business or buy an existing business. You can even start with only one vehicle.
- Insurance – Some of the insurance cover that you can get include; third-party insurance, car theft insurance, fire insurance, among others.
- Inventory – To manage a fleet of vehicles, you’ll need an inventory system. This is to make sure that that every hired vehicle is checked for safety, road worthiness etc.
- Marketing – This is a competitive industry. A good marketing strategy will be of crucial importance. You can use posters and flyers to market yourself. Having a website is a good idea. Additionally you can collaborate with travel agencies who can refer clients to your car rental service.
- Security system – You need a system for tracking the location of the car, limiting maximum speeds or distance. Global Positioning System (GPS) and other car tracking services will come in handy. If you have a large fleet, you will need a safe parking area, preferably a guarded parking garage
- Business license – You need to register your business, get a business name and set up an office to operate this kind of business.
- Maintenance of the vehicles – Vehicles have to be in perfect order. You have to make sure clients take good care of the cars and pay in time.
- Fluctuations – This is an industry that fluctuates and there are times when business is high while some seasons are slow.
- Competition – It is also a highly competitive industry.
- Theft – You also stand the risk of losing the vehicles to thieves who have seen car rental companies as soft target.
- Time demands- This business requires a flexible schedule that may include working on weekends or on holidays. However you can hire employees to run the business for you while you handle the supervisory job.
This is a highly competitive industry. To get known and you will need an ingenious marketing strategy. You might need to find your niche market and advertise heavily about the uniqueness of your service. For instance, you can compete on cost by minimizing expenses. Do aggressive marketing but in a low cost manner.
The need for a car for hire business is an ever-present demand. People always need cars to hire. There are many people who have cars but they hire cars to travel long distance or for some other reason. Some want to rent a car to cruise around and have a good time. If you have good entrepreneurial skills you can be successful.