Car Rental Business Plan

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I.- Car Rental Executive Summary

Business Overview

[Company Name]’s car rental business model focuses on meeting the needs of companies and individuals who seek the highest quality of assistance and require a fast and professional car rental service, whether it be for business or leisure. With [x] branches and a network of over [x] associated rental offices all over [location], we seek to meet all car rental needs. [Company Name] manages a fleet of over [x] new, luxuriously equipped cars. To meet the ever-changing needs of our customers, we are continuously improving the quality of our fleet and service.

Services

[Company Name] has created a car rental business plan that offers its customers premium vehicles without significant price increases. We offer top-of-the-line models and our rental cars are regularly replaced to ensure our customers can see the newness of the car and so they will be behind the wheel of a well-maintained and up-to-date rental that is in top condition. The [Company Name’s] inventory includes convertibles, luxury cars, minivans, SUVs, sports cars and trucks.

Customer Focus

[Company Name] will primarily serve the residents within a 10-mile radius of our location. There are currently 47,827 residents whose demographics include a median age of 38 years with an average income of $84,700. Additionally of these residents, 60% are married, 75% are homeowners, and 45% are in management or professional occupation.

Management Team

[Company Name] has created a car rental business plan that will primarily serve the residents within a 10-mile radius of our location. There are currently 47,827 residents whose demographics include a median age of 38 years with an average income of $84,700. Additionally of these residents, 60% are married, 75% are homeowners, and 45% are in management or professional occupation.

Success Factors

[Company Name]’s car rental business plan is uniquely qualified to succeed because of its ability to meet the needs of a niche market within a growing community. [Company Name] has also surveyed the local population and gained promising information that points to an extremely successful launch as consumers stated they will explicitly want to make use of our services when launched. Additionally, we are entering a high-wealth area where customers are interested in car rental services. Our car rental business plan also focuses specifically on our management team which has a track record of success in the car rental service business.

Financial Highlights

[Company Name]’s car rental financial plan has determined financing of $192,000 is necessary to open its car rental service. $93,000 of the capital will be used for funding capital expenditures and location build-out and design. The remaining $100,000 will be used for hiring initial employees and paying their salaries, marketing expenses, and working capital. We plan to use this financing until [Company Name] breaks even.

II.- Car Rental Business Overview

Who is [Company Name]?

[Company Name] is a car rental agency with [x] branches and a network of over [x] associated rental offices all over [location]. Managing a fleet of over [x] new, luxuriously equipped cars, our rental car business plan focuses on meeting the needs of companies and individuals who seek the highest quality of assistance and require a fast and professional car rental service. To meet the ever-changing needs of our customers, we are continuously improving the quality of our fleet and service. [Company Name]’s car rental business plan also focuses on providing all types of rental services, from short-term rental to long-term contracts for up to 5 years. We meet consumer's needs both in business and leisure.

[Company Name]’s History

Founded by [Founder’s Name] in [month, year], [Company Name] has established a reputation based on quality, timeliness, and unparalleled customer service. [Company Name] has built a staff that is continually seeking to ensure customer satisfaction and fulfillment of their needs. Since launching the original car rental business plan, [Company Name] has since grown and added luxury cars and vans to its line-up of available vehicles. Since incorporating, [Company Name] has found a business location and signed a letter of intent to lease the location, developed the company’s name, logo, and website, determining equipment and fixture requirements, and has begun recruiting employees.

[Company Name]’s Products/Services

[Company Name] offers premium vehicles without premium prices. We have over [x] rental vehicles in our fleet, including cars from some of the best car manufacturers in the world. Customer favorites include BMW, Mercedes-Benz, Audi and Volkswagen. Our rental cars are regularly replaced so clients can feel confident that they will be behind the wheel of a well-maintained and up-to-date rental. All car models we provide are in excellent condition.

[Founder’s Name] will be able to provide clients with the following services:

• Convertible Car Rental


• Luxury Car Rental


• Minivan Rental


• SUV Rental


• Passenger Van Rental


• Long-Term Car Rental


• One-Way Car Rental


• Unlimited Miles Car Rental

As [Founder’s Name] understands, the key to a successful car rental business is being responsive to the particular needs of clients. [Founder’s Name] will have a full-time assistant manager who will, among other things, manage operations and will free up the time of [Founder’s Name] to work on sales and customer service.

III.- Car Rental Industry Analysis

The Car Rental Industry has increased slightly over the past 5 years and with rising per capita disposable income coupled with a low national unemployment rate, consumers are feeling more confident with increasing their expenditures. Specifically, consumers are feeling confident spending more on car rentals for leisure trips.
It is expected the car rental industry will grow over the next five years. Considering industry demand is anticipated to rise alongside a rebound in domestic travel which is supported by a recover in the US economy, it is reassuring to those investors who are interested in car rental startup budgets. Growth of the travel industry is further believed to increase and therefore demand for car rental services is expected to increase as well with inbound trips to the United States by foreign visitors expecting to see a positive trend within the next five years further pushing the car rental industry to grow, specifically near airports.
As the US economy sees an upward travel trend, demand for car rental services is also forecasted to increase. The industry’s largest companies are expected to retain their competitive advantage over smaller players by maintaining strategic alliances with airlines and hotels. Such partnerships will likely provide rental car companies with a steady stream of referral business, with coordinated rewards programs adding loyalty incentives for consumers.

What you Get in Your Car Rental Business Plan Package

IV.- Car Rental Customer Analysis

Profile of Target Market

[Company Name] has created a car rental startup budget that focuses on serving the residents of [company location] and immediately surrounding areas within a 10-mile radius. Our target market will be near the airport and will be mostly populated by the middle and upper class. Our target demographic maintains a busy lifestyle and therefore this group both needs car rental services and has the means to pay for the service.

Demographics

The precise demographics of the town in which our location resides are as follows:

Customer Segmentation

Our car rental business plan has opted to target three customer segments that [Company Name] include travelers and tourists, businesses, and local consumers. Travelers and Tourists will include families and couples who are visiting [location] for vacation and recreation as tourists tend to be great at word-of-mouth advertising when they have a positive experience with their car rental service. Businesses we will target are generally seeking to meet the needs of corporate contracts for business persons attending meetings, and VIP’s needing transportation to and from the airport. These businesses are needing to make a good impression on executives and businesspersons needing a car rental service. Finally, local customers seeking temporary use for special events such as weddings or out-of-town trips with family and friends will be a final target market. This niche group is loyal to their local businesses.

V.- Car Rental Competitive Analysis

Direct & Indirect Competitors

Based on [Company Name]’s car rental business plan, Car Rentals Inc., Ultimate Car Rental, and Dream Cars are all located within 12 miles of [Company Name] and are considered either direct or indirect competition.
Car Rentals Inc. is a leader in car rental and operates about 10,000 rental locations in approximately 150 countries. About 70% of its revenues come from airport locations while its fleet includes approximately 524,500 cars from Ford, General Motors, Toyota, and other manufacturers. In addition to its signature car rental services, it also offers fleet leasing and management services. Car Rentals Inc. seeks to meet consumer needs for personal rental, special events, charity auctions, corporate incentives, and other uses. They also sell vehicles and offer an ownership model called Rental Ownership, where owners pay a fee to gain access to any vehicle for three months each year.

Ultimate Car Rental partners with affiliate car rental companies to offer car and luxury SUV rental in multiple locations across the United States. They have a large selection of high-end luxury, hybrid, convertible, electric, and armored and bulletproof vehicles. Vehicles are available to rent for corporate transportation and special events such as weddings and proms, while VIP packages are also available. Customers can choose from daily or weekly rental packages.

Dream Cars offers exotic and luxury vehicles for rent throughout the southern United States. Uniquely, Dream cars separates itself from its competitors by delivering the rental vehicle to a client’s home, hotel, office, or the airport, and picking up the vehicle at the end of the rental period. For customers who choose to pick up their rental car, free overnight parking of their vehicle is available. GPS systems and XM satellite radio are included in most vehicles, and 24-hour roadside assistance is available. Additionally, Dream Cars will provide instructions on operating the vehicle properly before the rental period. All weekly rental packages include free daily services such as car washing and rents vehicles for special events, such as weddings, or for use in movies or advertising.

What you Get in Your Car Rental Business Plan Package

Competitive Pricing

Pricing varies widely depending on the type of vehicle rental and term, but below is a sample of the rates offered:

Competitive Advantage

Advantages that [Company Name]’s car rental business plan has over its competitors include a client-organized service, a top-notch management team, and relationships within the community.
Our client-oriented service includes a full-time sales manager who will stay in contact with customers and answer their everyday questions. [Founder’s Name] recognizes and values the importance of being accessible to his clients. Additionally, to build loyalty with clients, [Founder’s Name] will stay in touch with clients by publishing newsletters about car rental specials.
[founder’s name] has also experienced high levels of success within the industry and can apply his previous experience to provide the best sales and customer service experience. [Founder’s Name]’s unique qualifications will serve customers more professionally than his competitors.
Finally, having lived in the community for 25 years, [Founder’s Name] knows many of the local leaders, newspapers, and other influences. Furthermore, he will be able to draw from his ties to develop an initial client base.

VI.- Car Rental Marketing Plan

The [Company Name] Brand

The [Company name] car rental business plan focuses on the Company’s unique value proposition. Our company is client-focused and treats each client individually allowing our team to get the job done correctly the first time. We also offer a unique service experience that will build long-term relationships with loyal customers and a big-firm experience in a small business environment.

Promotions Strategy

[Company Name]’s car rental business model focuses on building long-term relationships with consumers and therefore depends on word-of-mouth advertising from satisfied customers. Additionally, we will seek to build our clientele through discounts for new clients. Additionally, we will build our clientele through the use of marketing on the internet. [Company Name] will invest resources in two forms of geographically-focused internet promotion—organic search engine optimization and pay-per-click advertising. [Company Name] will further develop its website in a way that directs as much traffic from search engines as possible. Additionally, we will use highly focused, specific keywords to draw traffic to our website. Potential clients will find a content-rich site that presents [Company Name] as the trustworthy, well-qualified car rental company that it is with client testimonials to assure potential customers of our focus on customer satisfaction. Finally, [Company name] will place print advertisements in key local publications, including newspapers, area magazines, and local sports programs. Additionally, the Company will print brochures and place them in specific locations frequented by target individuals.

Pricing Strategy

[Company Name]’s car rental financial model has determined that pricing will be competitive compared with competitors in the area and lower than [competitor. For regular clients, pricing will be based on the average distance and rental time, and for one-time clients, or clients who are trying out the firm’s services, a competitive hourly rate will be charged.

VII.- Car Rental Operations Plan

[Company Name]’s car rental business plan has opted for a business model that will allow our team to work with consumers through phone calls, online bookings, and walk-ins. The business location will be used for sales, customer service, client meetings, and bookings and will employ [x] full-time team members.

[Founder’s Name] will work as the lead salesperson however the assistant manager and administrative assistant may be trained in sales activities depending on demand. The assistant manager will manage company operations, under [Founder’s Name]’s supervision while the administrative assistant will handle basic bookings and scheduling work for the assistant manager, as well as light answering phones, and organizing human resources.

What you Get in Your Car Rental Business Plan Package

Milestones

[Company Name]’s long-term goal is to become the best car rental service company in the [city] area. We seek to do this by ensuring customer satisfaction and developing a loyal and successful clientele.

The following are a series of steps that will lead to this long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

VIII.- Car Rental Management Team

[Company Name]’s a most valuable asset is the expertise and experience of [Founder’s Name], who has been has been in the automotive industry for the past 15 years. [Founder’s Name] developed his car rental business plan based on his personal employment history with [company], where he oversaw the operations for different car rental companies and automotive shops and learned sales, customer service and automotive maintenance processes.

[Company name] will also employ an experienced assistant manager to manage the automotive maintenance operations. This position will require an experienced operations manager who will be trained in other important company operations by [Founder’s Name].

Hiring Plan

To launch [Company Name]’s car rental business plan, we will need 4 full-time employees who will meet the demands of sales and customer service staff, 2 full time and experienced auto mechanics, and an administrative assistant who will be organized, have professional phone skills, perform bookkeeping duties, and have excellent writing skills.

IX.- Car Rental Financial Plan

[Company Name]’s car rental financial plan shows that revenues will come primarily from car rental services. The lease and maintenance of the fleet of cars and labor expenses are the key cost drivers of [Company Name] and the major cost drivers for the company’s operation include salaries, vehicle leases and maintenance, the lease on the business's location, and ongoing market expenditures.

Capital Requirements and Use of Funds

[Company Name]’s car rental startup budget is requesting financing of $192,000 of debt capital to open its car rental business. $92,000 of capital will be used for our headquarters design, while $100,000 will be used to pay for marketing, salaries, and lease costs until [Company Name] breaks even.

Car Rental Financial Plan Sources And Uses Report

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model.

Car Rental Financial Plan Core Inputs

Car Rental Financial Plan Top Revenues Report

Car Rental Financial Plan Top Expenses Report

Car Rental Financial Plan Income Statement

Car Rental Financial Plan Cash Flow Statement

Car Rental Financial Plan Balance Sheet Statement