Starting a business is the best way to live your life on your own terms but running a business successfully is a great challenge and bit risky than doing a job. If you have the required dedication and a thoughtful mind then you can take your business to the sky. Starting a car rental business is also an attractive business idea which can be a huge success if can be operated with dedication. There is a huge market to explore in rent a car business.
Market Demand for Rent a Car Business
The market potentiality of car rent business can easily be checked with the huge success of Ola and Uber in India. But you can also start your rent your rent a car business in small scale. In hurry or for comfort we all prefer to hire a cab for our transportation, so there is a huge market for starting a car rental business in India.
Types of Rent a Car Business
For starting any business you need to do a deep research about the same. Find out the pros and cons of the business and step by step procedure to start the same. We will discuss the steps in this article, first, let’s find out the different type of rent a car business: –
Lease Vehicle: – In this, you can give your vehicle for lease for a set of a time period. Here the major customer pays a fixed rate for the vehicle either on the kilometer run or days wise.
- Advantage: – You get paid for the fixed set of the days, whether the vehicle is used or not.
- Disadvantage: – The rates are bit lower than the normal rates of running in the road.
Call centers and private firms are the major clients of this type of rent a car business
Daily Hire: – Here customers hire your vehicle when they need it. The customer base may not be the same. They do a booking prior to the journey and pay for the kilometer traveled or sometimes fixed rate.
- Advantage: – The profit margin is higher in this type of car rental business.
- Disadvantage: – The count of business may fluctuate as the customers are not fixed.
Steps for Starting a Car Rental Business
Now as you know about the different types of rent a car business and what are its pros and cons, let’s find out the steps required for starting a car rental business: –
Planning: – As mentioned earlier also, no business can run smoothly without making a proper planning. You need to do extensive research on the business you want to start. Get all the detailing of the rent a car business like visit other service providers and talk with them as general talks. Avoid stating that you want to start the same business and the best is to discuss with the chauffeurs while you take a cab. They can tell you about all the inside stories.
Capital: – The amount of investment will depend on the size of the business. You can easily get loan for buying the vehicles in installments but still you need to have some capital on hand for different uses like: –
- Monthly EMI
- Salary for staff
- Vehicle Maintenance
- Legal Formalities etc.
Legal Formalities: – You need to complete few legal formalities for starting a car rental business like creating a driving license, trade license, all the legal paper works for the vehicle etc. If you have numbers of the vehicle running on the road, it’s very important to track the details of the permits and need a regular updating of all the papers.
Hire Staffs: – You need to hire drivers for starting your rent a car business. It will be great if you can also drive or have experience of a driver. Hire the staffs carefully as you will be handing over your valuable assets in their hand. Do a proper background check before hiring.
Promotion: – If you want to start your rent a car business in small scale like 2 to 5 vehicles, then you don’t need extensive promotion for that. But once you have invested a huge margin of capital, then you need to make sure that no tables are left unturned to promote your business.
Modern Approach: – Starting a car rental business with something new and modern approach will give you an extra edge. Think about offering something different in your service from your competitor to attract more clients and more profit margins. You can use different ideas like : –
- Movie streaming in the vehicle.
- AC service for regular customers at the same rate or for a limited period.
- Free of cost waiting time for regular customers
- Sightseeing with guide assistance for tourist.
- Discounted rates on off periods or long distance travel etc.
Innovation is the key to success. So to have a successful rent a car business or any business, try to put your new and innovative ideas. Trying something new can never be a wrong idea.