Starting a Car Rental Business – A Complete Guide

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It should be noted that there is no special software required to use these templates. All business plans come in Microsoft Word and Microsoft Excel format. Each business plan features:. The Car Rental Agency Inc. The Company was founded in by John Doe. As mentioned above, the Car Rental Agency will be actively engaged in the rental of economy class, standard, and luxury vehicles for tourists and vacationers within its targeted market.

The business will also recognize revenues from the sale of insurance services and gasoline charges to customers. At the onset of operations, the Company intends to have a leased fleet of 30 vehicles.

The third section of the business plan will further describe the services offered by the Car Rental Agency. The interest rate and loan agreement are to be further discussed during negotiation. The Company was founded by John Doe. Doe has more than 10 years of experience in the automotive industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations. Doe expects a strong rate of growth at the start of operations.

Below are the expected financials over the next three years. The Founder expects that the business will aggressively expand during the first three years of operation. Doe intends to implement marketing campaigns that will effectively target individuals, tourists, and business travelers within the target market. The Car Rental Agency, Inc. The Company is registered as a corporation in the State of New York.

Below is a breakdown of how these funds will be used: Doe is not seeking an investment from a third party at this time. If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Car Rental Agency. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.

Below is a description of the car rental services offered by the Car Rental Agency. The Company will have three tiers of rentals including economy, standard, and luxury. A limited number of luxury vehicles will be held on the lot for wealthy tourists and business travelers. In addition to daily charges made to vehicle renters, the Company will earn secondary streams of revenue from the sale of additional insurance. This is an important secondary steam of revenue for the business as sales of additional car insurance will generate substantial gross margins for the Car Rental Agency.

Additionally, the Company will charge substantial fees to customers that do not return the vehicles with full gas tanks. This section of the analysis will detail the economic climate, the car rental industry, the customer profile, and the competition that the business will face as it progresses through its business operations.

Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid, at which point the economy will begin a prolonged recovery period.

However, Car Rental Agencies typically operate with a strong degree of economic stability as business travelers will continue to need vehicles for their business trip needs. Within the United States, there are more than 5, companies that operate one or more locations that provide daily car rental services to the general public. This is a mature industry, and the future expected growth rate is expected to equal that of the general economy. As mentioned above, despite the currently high gasoline prices, the industry will continue to remain profitable as business travelers will continue to require rented vehicles during their business trips.

In this section of the analysis, you should describe the type of customer you are seeking to acquire. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.

This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition.

Find out who your competitors are by searching online directories and searching in your local Yellow Pages. The Car Rental Agency intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Car Rental Agency. Doe intends on using a number of marketing strategies that will allow the Car Rental Agency to easily target tourists and business travelers coming to the target market.

These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. The Car Rental Agency will also use an internet based strategy. This is very important as many people seeking local services, such as car rental agencies, now the Internet to conduct their preliminary searches. Doe will register the Car Rental Agency with online portals so that potential customers can easily reach the business.

This marketing feature is common to most companies that rent cars to the general public. The Company will also place advertisements on major travel portals such as Expedia, Orbitz, and Travelocity. Doe will also develop relationships with local travel agents that will make arrangements for rentals among people that are traveling through the target market. In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section.

However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page. In this section of the business plan, you should write a two to four paragraph biography about your work experience, your education, and your skill set.

For each owner or key employee, you should provide a brief biography in this section. In the event of an economic downturn, the business may have a decline in its revenues.

However, among business travelers, renting a car is a necessity. As such, the Car Rental Agency will be able remain profitable despite a drop off in tourist activity.

Expanded Profit and Loss Statements. Please note that the financials in this complete free business plan are completely fictitious and may not match the text of the business plan below.

This free business plan demonstration purposes only. If you are interested in purchasing the completed editable MS Word and Excel documents for this business plan, please click the button below! Also, the text of the business plan is formatted with a fully automated table of contents. Return to Samples Page It should be noted that there is no special software required to use these templates.

Each business plan features: