The car rental market has been around for some time and is growing and growing every year, cities are growing, which means that the need for rental is growing. When going on vacation to Dubai, looking at the distances there and seeing the cost of a taxi, the thought immediately arises of renting a car from the site https://renty.ae/brands/lexus, even renting a Lexus, you can travel more profitably by car than by taxi or public transport.
It should be noted that when starting such a business, you need to be prepared for everything - there can be quite a lot of risk factors. For example, some customers may remove good parts from cars and install cheap ones instead.
There is also constant work and disputes with insurance companies. After all, they are reluctant to work with representatives of our field - they do not want to put themselves at high risk.
We start, of course, with an idea and a business plan. And the first thing we need is a down payment, a contribution to your future company.
The initial contribution to such a business will vary from country to country, from the number of cars that you want to rent, from the number of employees hired, etc.
Let's look at approximate amounts.
In total, the initial and minimum contribution will be approximately $310,000.
The successful location of the office significantly affects the success of the business. Many car rental companies also operate in hotels, high traffic areas and airports. In the second case, accommodation will be expensive. The main thing in this matter: customer traffic and the ability to safely park their cars.
Advertising is key to promoting your business, especially if you are setting up a business in a big city. Advertising is important even if you are a company with hundreds of rental cars.
You need to use all possible advertising options, because not all people are looking for it. Therefore, at your disposal there are billboards, frantic lines, television, advertising in Google, Instagram, Facebook, etc.
Car rental is a fairly profitable business that you can start developing with a small car park, expanding gradually. However, the constant risks of loss of profit and considerable investments at the first stage can scare away a certain part of entrepreneurs. But with the right approach and a clear understanding of each step, you can grow from a small fleet of 10-30 cars into a federal-scale organization.