DETROIT – This industry is considered a very competitive market. But if you do everything right, it could be a very profitable investment. Read on our guide, which we hope will help you to prepare for the start of a car rental business from scratch.

Advice 1. Find your best solution 

Which type of business do you want to own? Perhaps you should explore leading companies in the market and see what they specialize in. One of the good examples in Dubai – renty.ae. This platform leases and rents cars. Customers can hire one of more than 700 cars for tourism or business. They offer to rent not only luxury Lamborghini or Ferrari but also provide a wide range of economy cars. They bribe customers with the best value and high service, that’s why many come to them for car rentals again.

Franchise

Allows getting ready-made solutions from already existing and successful companies. It is faster to organize, you can count on the huge support of a popular brand, and some financial help. Disadvantages include a lack of full decision-making autonomy and high money contribution.

Dealership

It means you have some agreement with a car dealership. It’s based on a small number of customers and doesn’t require a large car park.

Own business

In this case, you are free to make your own decisions and not depend on anyone. But be prepared for additional responsibility: customer search, competition with well-known brands, high financial investments, and risks.

Advice 2. Identify your customers

It is important to understand the target audience for which you plan to work and what their needs are. It can be tourists, car dealerships, or short- or long-term rentals. It is necessary that your services meet market needs.

Advice 3. Business plan

It will help you not only to specify your further actions but also to attract potential investors. Describe a business model you are planning to engage in, the services offered, the prices on rental cars, and a minimal budget you need to launch a company. On the Internet, you can find free business plan templates.

Before you set prices, make sure they cover maintenance, insurance, office costs, salary, and marketing costs, and study your competitors. Note that in the nearest future rental prices are likely to be lower, due to the increased mileage and age of the automobiles.

Advice 4. Follow the law

Decide on the legal person and study the laws of the city where you plan to work. The obligatory clause is the receipt of different permits and appropriate business licenses. It is advisable to get recommendations from a professional lawyer. You can also think about your business accident insurance, hijacking, e.t.c. And don’t forget to invent and register the brand name.

We advise you to open a settlement account and a special credit card for business transactions. You may also need to get an identification number. After this, you will be able to open bank accounts and take loans. Also, pay attention to the rental agreements for customers.

Advice 5. Pick up a spot

Often a location is a key to the success of the rental company. The most popular solution, but requires more costs is the opening of its representative office at the airport or near the hotel complex. But maybe it’s not the best idea to start.

Advice 6. Pick up a team

Look for employees who will work with clients, help with the procurement of consumables, answer phone calls, bookkeeper, and mechanics for car service. In the beginning, you can hire 2-3 workers.

Advice 7. Launch online platform

More people will learn about your business if you have an Internet site. You can also create social networking pages and pages on Google. There your customers will be able to leave reviews and communicate with a representative person. It will help to strengthen the reputation of a company and attract new clients.

Advice 8. Provide high service

Remember: your business will be profitable only when you can involve and satisfy customers. To make this come true, you need to provide an exclusively high-level service so that people want to revisit and recommend your brand to their friends.

This article was provided by Daniel Brunson.