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Own business: car rental

Business in the car rental is a relatively complex area, but at the same time a proven promising type of business. If you properly organize your work, you can count on a very serious profit. The demand for rented cars is large enough, but this is particularly true of large cities in the first place. There are a lot of features, and in each case it is necessary to very accurately calculate your development strategy.

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The level of competition is almost always in this direction will be very high, but the specifics of the business suggests that a sufficiently high percentage of consumers will be people who have used the service once. However, at the start, there is still no customer base, which can severely slow down the development of the company. All working competitive organizations usually have a good reputation and a certain number of regular customers, due to which they can develop rapidly. A newcomer is deprived of this, and he has to attract customers either by reducing the price or by providing unique services. But in this direction it is quite difficult to come up with something new, in connection with which it is necessary to wage a fierce competition with more than one month or even a year of working organizations. Sometimes it is too difficult to enter the market, and this needs to be understood. However, a niche is not always occupied in cities; This may be the rental services of very cheap cars or of some class, which are represented in small quantities in other companies. And, of course, car rental services will almost certainly be irrelevant in small cities, because of the entire population there are hardly enough customers. In general, before starting work you need to study the activities of competitors, the services they offer, as well as the needs of potential customers. Variants can be here, because often consumers remain unhappy with the price of car rental (which will probably always be) or they are not satisfied with the proposed fleet. Therefore, you need to think through all the details, not only what brand, but also what models in which configuration it is more expedient to buy, as well as what additional equipment to equip machines, what service to offer.

To get started, you must register as a business entity. It is best to register a legal entity, and a preferred form is a limited liability company, because in this case, as in the case of individual entrepreneurship, a simplified taxation system will be available, which involves transferring to the state no more than 6% of income or 15% from operating profit. This article considers the rental of passenger cars only (rental of other vehicles, including trucks, can be attributed to other types of business, because there are too many differences in the business), therefore this activity falls under the definition (JFRD 2) 77.11 rental and leasing of passenger cars and light vehicles. In general, this encoding will allow to engage in all types of vehicles with a seating capacity of not more than eight and weighing up to three and a half tons, and any passenger car meets these requirements, and difficulties can only be with limousines that have more than eight seats. Then this is work with a different mode of transport. About this in a little more detail below.

The next stage is the search for a placement. It is optimal to locate your office, and hence the fleet, in places such as: 1) large transportation hubs, first of all – airports and railway stations (railway, road and even river), why – it seems, there is no need to explain; 2) in the center of the city – it is convenient for city residents, tourists and guests of the city just to get there, the concentration of people is higher, good traffic, that is, the advantages are obvious 3) near or even on the territory of large hotels, here you only have to meet the level of the hotel, because in an expensive hotel it is simply silly to offer cars of the lowest price segment, and the opposite is true – there is hardly a person in a cheap hotel who is ready to pay for luxury cars -class; 4) near the passenger compartment of the car, as well as not far from the major service stations, there is already targeting people who temporarily cannot use or buy their car; 5) even in the sleeping areas there is a client, but here you need to study the local market very well, because in the quarter of Soviet buildings there is hardly a necessary number of people willing to pay for the rented car, and they will not have the need for that. However, you need to understand that you will need a considerable area to accommodate your company.

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