Are you about starting a car rental business? If YES, here’s a complete sample exotic car rental business plan template & feasibility report you can use for FREE to raise money.
Okay, so we have considered all the requirements for starting a car rental business. We also took it further by analyzing and drafting a sample car rental service marketing plan template backed up by actionable guerrilla marketing ideas for car rental businesses. So let’s proceed to the business planning section.
Car rental business generally is a competitive business and any entrepreneur who intends to go into this business, should ensure that they carry out thorough feasibility studies and market research so that the risks in the business can be greatly minimized.
Table of Content
- 1 What Does It Take to Start a Car Rental Business Successfully?
- 2 Industry Overview
- 3 Car Rental Business Plan Executive Summary
- 4 Our Service Offerings
- 5 Our Mission and Vision Statement
- 6 Car Rental Job Roles and Responsibilities
- 7 Car Rental SWOT Analysis
- 8 MARKET ANALYSIS
- 9 Our Target Market
- 10 SALES AND MARKETING STRATEGY
- 11 Sales Forecast
- 12 Publicity and Advertising Strategy
- 13 Our Startup Expenditure (Budget)
- 14 Sustainability and Expansion Strategy
What Does It Take to Start a Car Rental Business Successfully?
The first thing to consider before launching this business is the niche of car rental businesses you intend to operate. You will have to know the niches available – contract hire and daily hire et al, and decide which you want to go on. Contract hire is usually for business customers who hire the vehicles for a set period of time, while daily hire is for individual customers who hire the vehicles usually for a shorter period of time.
The next thing to consider before launching a car rental business is how to get your fleet of reliable cars. The options available are outright purchase or leasing; outright purchase is usually more expensive than leasing. You will also have to decide how many number of cars you intend to start with, bearing in mind that the higher the number of cars your business owns, the more earnings your business makes.
The cars have to be well maintained, so that you could enjoy a high turnover. You could decide to contract the maintenance out, or hire your own maintenance staff, which could prove more expensive for your start-up business initially. Here is a sample car rental business plan to help you plan through;
A Sample Car Rental Business Plan Template
The car rental industry has grown more strongly in recent time, after previous years of recession. This was primarily due to the fact that airlines saw a decrease in customers which have now seen an increase too as compared to recent years, thereby linking air travel to car rentals.
The car rental industry is expected to experience remarkable growth following an increase in the number of passengers traveling by air, which is due to a rise in per capita income as well as corporate profit. The largest car rental companies in the industry have a competitive advantage over smaller firms, especially as they have strategic alliances with airlines and hotels, which the smaller car rentals do not have.
Basically, players in this industry either rent or lease passenger cars to customers. Car rental services typically last a short period of time usually 30 days or less, while car leasing agreements are for longer period of time usually 12 months or more.
The major companies in this industry have created strong brand awareness and therefore enjoy its recognition. This helps in retaining customers for these businesses, and creating difficulty for new car rentals start-up towards getting customers and retaining them as well.
Also, major companies constantly need to purchase fleets to meet up with customers’ demand, a feat that smaller companies cannot match up with, and yet regardless of the number of cars in one’s fleet, maintenance, storage, and then staff the rental location.
The Car Rental Industry is indeed a large and thriving industry in developed countries and in most part of the world. Statistics has it that in the United States of America alone, there are about 2,716 licensed and registered car rental businesses responsible for employing about 113,499 employees and the industry rakes in a whooping sum of $38bn annually with an annual growth rate projected at 3.0 percent.
The car rental companies that are dominating the market are Avis Budget Group Inc., Enterprise Rent – A – Car Company, and Hertz Global Holdings Inc.
Apart from the increase in international travel, other key factors that drive the car rental market include the increasing population, as well as increasing internet usage amongst the people. Most online car rentals are due to the increase in internet usage, which has made it more convenient for customers to access car rentals, and for car rental businesses to increase their revenue.
The major restraint in this industry especially globally has been the increase in the implementation of environmental regulations around the world. The high amount of environmental pollutants that is released by cars is highly responsible for these environmental regulations.
Executive cars and MUVs are the leaders in the car rental business globally, followed by economy cars, SUVs, and luxury cars. Apart from revenue from the airport segment, other segments that contribute to the car rental business include outstation, local usage, event transportation, employee transportation, and self-drive.
Over and above, car rental businesses all over the world are still enjoying good patronage particularly if they are well positioned and if they know how to reach out to their target market.
Car Rental Business Plan Executive Summary
McElroy® Car Rental Services, Inc. is a standard and registered car rental company that will be located in Fort Lauderdale, Florida – United States of America and we plans to also cover other cities such as Green – acres City, Miami, Jacksonville, Clearwater, Tampa, Miami Beach, North Miami, West Palm Beach, Palm Harbor, Deltona, Orlando, Palm Bay and Panama City et al.
We choose to operate in these cities because we know that our car rental services will be in high demand due to the growing numbers of corporate organization and increase in business activities in these cities.
McElroy® Car Rental Services, Inc. will offer care rental services such as leisure car rental, business car rental, car leasing, and car sharing services et al. We are set to service a wide range of clientele base in the locations where we choose to operate.
We are well trained and equipped to service the market segments that require the services of car rental services. Although our intention of starting McElroy® Car Rental Services, Inc. is to offer only the above stated services, but we will not close our doors to diversification (additional services) as long as it does not affect our core services.
At McElroy® Car Rental Services, Inc. we are passionate in the pursuit of excellence and financial success with uncompromising services and integrity which is why we have decided to start our own car rental business; we are in the industry to make a positive mark.
We are quite optimistic that our values, highly reliable and comfortable fleet of cars and of course the quality of service offering will help us drive our car rental business to enviable heights and also help us attract the numbers of clients that will make the business highly profitable.
We are a company that will be dedicated to establishing good business relationship with our clients giving them value for their money and reasons for them to rent and lease our cars over and over again.
We are quite aware that in order to become the number one choice in our city, we must continue to deliver quality services and that is exactly what we will do. Our overall business goal is to position McElroy® Car Rental Services, Inc. to become one of the leading car rental company brands in the United States of America within the first 10 years of operations.
This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are enthusiastic and confident that Florida is the right place to launch our car rental business.
Our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.
McElroy® Car Rental Services, Inc. is owned and managed by McElroy Williams and his immediate family members. He is a notable figure in the automobile industry in Florida. Aside from this new car rental services business, the family owns an automobile dealership business and also auto repair workshop all in Florida.
Our Service Offerings
McElroy® Car Rental Services, Inc. is a standard and licensed car Rental Company that offers a wide range of services that revolves around the car rental industry and other complementary services. We intend giving our customers every reason to always rent or lease of cars which is why we have customized our services, we want to be known as the trucking company that truly care for her customers.
Our intention of starting our car rental company is to favorable compete in the industry and of course to make profits from the industry and we will do all that is permitted by the law in the United States of America to achieve our aim and business goal. Our business offering are listed below;
- Leisure car rental services
- Business car rental services
- Exotic car rental
- Car leasing services
- Car sharing services
Our Mission and Vision Statement
- Our Vision is to become the number one car rental company in the whole of Florida with active presence in major cities in the United States of America and Canada.
- Our mission as a car rental company is to develop a highly successful, profitable all round car rental business which provides quality services in our community and to become a standard for an ideal car rental business not only in the State of Florida but also throughout the United States of America and Canada where we intend selling our franchise.
Our Business Structure
We are quite aware that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our car rental services company on the right business foundation.
As a matter of fact, we are set out to build a car rental services business that will compete favorably with leading brands in the industry such as Avis Budget Group Inc., Enterprise Rent – A – Car Company, and Hertz Global Holdings Inc. and also become a standard for the car rental services business in the United States of America and Canada.
We want to build a business of dedicated workforce who will go all the way to ensure that our customers are satisfied and they get value for their money.
In other to achieve this, we aware that it takes a business with the right employees and structure to achieve all what we have set to achieve, which is why will be putting structures and standard operating processes in place that will help us deliver excellent services and run the business on auto pilot.
The success of our car rental services business will be anchored on the team not on any individual. With the wide range of our service offerings, we are only expected to employ more than it is required to run a conventional car rental services business. Definitely, we will have various employees to man the various job roles available in McElroy® Car Rental Services, Inc.
As a means of maximizing operational cost, we will contract the maintenance of all our cars to service provider, we don’t intend to maintain a very large overhead from the onset. But as soon as the business grow and stabilize, we will assemble our own professional in – house maintenance team. McElroy® Car Rental Services, Inc. will employ professionals and skilled people to occupy the following position;
- Manager (Owner)
- Accountant / Cashier
- Marketing and Sales Executive
- Client Service Executive
- Car Washer and Auto Detailers (6)
- Standby drivers
Car Rental Job Roles and Responsibilities
- Responsible for providing direction for the business
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals and payment of salaries
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for managing the daily activities in the organization
- Ensures that the facility is in tip top shape and conducive enough to welcome customers
- Prepares budget and reports for the organization
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Designs job descriptions with KPI to drive performance management for all employees
- Regularly hold meetings with key stakeholders (clients and member of the board) to review the effectiveness of the business Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Oversees the smooth running of the daily activities of organization.
Marketing and Sales Executive
- Identify, prioritize, and reach out to new clients, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of projects.
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding increase sales
- Documents all customer contact and information
- Represent McElroy® Car Rental Services, Inc. in strategic meetings
- Help increase sales and growth for McElroy® Car Rental Services, Inc.
Accountant / Cashier
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for the organization
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for McElroy® Car Rental Services, Inc.
- Serves as internal auditor for McElroy® Car Rental Services, Inc.
Client Service Executive
- Monitors the locations of cars rented by clients via car tracker software apps
- Welcomes clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products and, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
Car washers and Automobile Detailers (6):
- Responsible for cleaning, restoration, and finishing of all our cars, both inside and out, to produce a pristine level of detail
- Handle services that involves cleaning and restoring or exceeding the original condition of the surface of the car’s finish (usually a paint with a glossy finish), chrome trim, windows, wheels, and tires, as well as other visible components on the exterior and of course interior of a vehicle.
- Cleans up after customers and clean work area.
- Maintain a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
- Ensures that toiletries and supplies don’t run out of stock
- Handles any other duty as assigned by the manager.
Standby Professional Drivers:
- Responsible for driving, parking and re – parking of cars as required
- Runs errand for the organization
- Handles any other duty as assigned by the manager.
Car Rental SWOT Analysis
Car rental business is one of the many businesses that can easily generate sales with little stress as long as they are well positioned and equipped to carry out their services. We are building a standard car rental services business with variety of complimentary services which is why we have decided to subject our business idea (company) to SWOT Analysis.
Ordinarily we can successfully run a normal car rental services business without the stress of going through the required protocol of setting up a new business including writing a detailed business plan, but because of the nature of the kind of car rental business we want to establish and of course the huge start – up capital involved, we don’t have any option other than to follow due process.
We hired the services of Dr. Angela Bozeman, an HR and Business consultant with bias in startups to help us conduct SWOT analysis for our company and she did a pretty job for us. Here is a preview of the result we got from the SWOT analysis that was conducted on behalf of McElroy® Car Rental Services, Inc.;
Aside from the large fleet of comfortable and highly reliable cars under our rental services, McElroy® Car Rental Services, Inc. is centrally located in a densely populated industrial and residential estate in Fort Lauderdale, Florida; our location is in fact one of our major strength.
Another strength that counts for us is the power of our team; our workforce and management. We have a team that are considered expert in the car rental industry, a team of hardworking and dedicated individuals.
McElroy® Car Rental Services, Inc. is a new business which is owned by an individual (family), and we may not have the financial muscle to sustain the kind of publicity we want to give our business. As a new business, we are also quite aware that it will take time for us to build trust with our clients.
We are centrally located in one of the busiest areas in Fort Lauderdale, Florida and we are open to all the available opportunities that the city has to offer. Our business concept also positioned us to be a one stop shop in the car rental line of business.
The truth is that there is no standard and well – equipped car rental business within the area where ours is going to be located; the closest car rental services company to our proposed location is about 6 miles away. In a nutshell, we do not have any direct competition within our target market area.
Some of the threats that are likely going to confront McElroy® Car Rental Services, Inc. are unfavorable government policies, seasonal fluctuations, demographic / social factors, downturn in the economy which is likely going to affect consumers spending and of course emergence of new competitors within the same location where our car rental business is located.
- Market Trends
If you are conversant with one of the latest trends in the car rental services industry, you will note that more people now book to rent cars via mobile application, and other internet access rather than visiting the car rental office. Car rental mobile application usage has seen an increment in recent time.
The car rental business is also segmented into organized and unorganized labor, with the organized labor expected to provide the highest incremental opportunity going forward.
No doubt, the Car Rental Services industry has indeed changed gears over the last five years, growing strongly after being forced into retrogression during the recession period. The fact that air travelers represent the industry’s primary market, growth in air travel over the last five years has been most important in driving revenue expansion in this industry.
Furthermore, the industry is anticipated to continue growing going forward, driven by an increase in the number of air travelers, rising per capita income and of course rising corporate profit as well. The industry’s largest companies are expected to retain their competitive advantages over smaller players, such as maintaining strategic alliances with airlines and hotels
The trend in the car rental services industry is that most car wash companies in the bid to survive the recent global economic meltdown included additional services to their core service offerings. It is much easier for car rental companies to increase their revenues by diversifying as against increasing the scope of their market.
Our Target Market
Before choosing a location for our car rental services business, we conducted our feasibility studies and market survey and we were able to identify those who will benefit greatly from our service offerings. Basically those who will benefit from our service offering are households, traveling agencies cum tourists, corporate organizations and hotels et al. They cut across different sectors of the economy.
The demographic component of those who need the services of car rental services spreads across the public sector, the organized private sector, and individuals from different strata of the society and from all walks of life. Below is a list of the people and organizations that our car rental service is designed for;
- Traveling Agencies and tourists
- Organized private sector
- Corporate Executives
- Business People
Our Competitive Advantage
Car rental services business is an easy to set up business that does not require formal training to achieve; anybody can set a car rental services business if they have the required startup capital. It means that the possibility of car rental services business springing up in the location where our car rental company is located is high.
We are aware of this which is why we decided to come up with a business concept that will position us to become the leader in Fort Lauderdale – Florida. Our competitive edge is that we are standard car rental service company with fleet of comfortable cars and affordable services.
So also, the power of our team; our workforce and management. We have a team that are considered expert in the car rental services industry, a team of hardworking and dedicated individuals. We can confidently say that the location of our car rental services business will definitely count as a positive for us amongst any competitor that might start a car rental services business in same location where ours is located.
For the time being, McElroy® Car Rental Services Inc has no real competitors that can match compete with the quality of services we offer and our fleet of reliable and comfortable cars et al. Our customer service will be customized to meet the needs of all our customers.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups car rental services business in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
SALES AND MARKETING STRATEGY
- Marketing Strategy and Sales Strategy
The marketing strategy for McElroy® Car Rental Services, Inc. is going to be driven basically by reliable and comfortable cars, excellent customer service, honesty and quality service delivery. We will ensure that we build a loyal customer base.
We want to drive sales via the output of our services and via referral from our satisfied customers. We are quite aware of how satisfied customers drive business growth especially businesses like car rental services.
McElroy® Car Rental Services, Inc. is a car rental services business that is strategically located and we are going to maximize the opportunities that is available which is why we spend more to locate the business in a location that will be visible and enable us to access our target market.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of McElroy® Car Rental Services, Inc.
Our goal is to grow McElroy® Car Rental Services, Inc. to become the leading car rental services company in Fort Lauderdale – Florida which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with in the car rental services industry.
McElroy® Car Rental Services, Inc. is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our car rental services business by sending introductory letters alongside our brochure to corporate organizations, traveling agencies, hotels, households and key stake holders in Fort Lauderdale – Florida
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities, airports and train stations et al.
- Use friends and family to spread word about our business
- Post information about our company and the services we offer on bulletin boards in places like schools, libraries, and local coffee shops et al
- Placing a small or classified advertisement in the newspaper, or local publication about our company and the services we offer
- Leverage on referral networks such as agencies that will attract clients who would need our customized services
- Advertise our car rental services company in relevant magazines, newspapers, TV stations, and radio station.
- Attend relevant expos, seminars, and business fairs et al to market our services
- Engage in direct marketing approach
- Encourage the use of word of mouth marketing from loyal and satisfied clients
- Join local chambers of commerce and industry to market our services.
Lastly, we need an online presence; a good website and ensure that it is Search Engine Optimization (SEO) Compliant if you intend to achieve a good number of visitors that would patronize your car rental business. The truth is that, a website ensures that our business remains visible to your existing and potential customers.
- Sources of Income
McElroy® Car Rental Services, Inc. is established with the aim of maximizing profits in the car wash and auto detailing industry and we are going to go all the way out to ensure that we do all it takes to attract both individual clients and corporate clients on a regular basis.
McElroy® Car Rental Services, Inc. will generate income by offering the following car rental services and other related services;
- Leisure car rental services
- Business car rental services
- Car leasing services
- Car sharing services
One thing is certain; there would always be corporate organization and individual clients who would need the services of car rental services company.
We are well positioned to take on the available market in Fort Lauderdale – Florida and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our car rental services business and our clientele base.
We have been able to critically examine the car rental services market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Fort Lauderdale – Florida.
Below is the sales projection for McElroy® Car Rental Services, Inc., it is based on the location of our business and of course the wide range of related services that we will be offering;
- First Fiscal Year-: $250,000
- Second Fiscal Year-: $550,000
- Third Fiscal Year-: $1 Million
N.B: This projection is done based on what is obtainable in the car rental services industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same additional dance related services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Our Pricing Strategy
Our pricing system is going to be based on what is obtainable in the car rental services industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than our competitors are offering in Fort Lauderdale – Florida.
Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us. The prices of our services will be same as what is obtainable in the open market.
- Payment Options
At McElroy® Car Rental Services, Inc., our payment policy will be all inclusive because we are quite aware that different clients would prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;
- Payment by via bank transfer
- Payment via POS machine
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
- Payment via mobile money
- Payment with cash
In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches. Our bank account numbers will be made available on our website and promotional materials so that it will be easier for clients to make payments when necessary.
Publicity and Advertising Strategy
McElroy® Car Rental Services, Inc. is set to create a standard for car rental services business in Fort Lauderdale – Florida and throughout the United States which is why we will go all the way to adopt and apply best practices to promote our car rental services business.
Good enough, there is no hard and fast rule on how to advertise or promote a car rental services business. The challenge is that most car rental services companies are not as proactive as we intend to be when it comes to effective publicity and advertising.
We will ensure that we leverage on all conventional and non – conventional publicity and advertising technique to promote our car rental services business. Here are the platforms we intend leveraging on to promote and advertise McElroy® Car Rental Services, Inc.;
- Encourage our loyal customers to help us use Word of Mouth mode of advertisement (referrals)
- Advertise our car wash and auto detailing business in relevant magazines, local newspaper, local TV stations and local radio station
- Promote our business online via our official website
- List our business on local directories (yellow pages)
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
- Install our Bill Boards on strategic locations in and around Fort Lauderdale – Florida
- Leverage on direct coupon mailing approach
- Engage in road show from time to time in target communities
- Distribute our fliers and handbills in target area
- Ensure that all our staff members wear our branded shirts and all our official vehicles are well branded with our company logo et al.
Our Startup Expenditure (Budget)
We have been able to pull cash that will be enough for us to successfully launch a standard car rental services company with fleets of comfortable and reliable cars. We will leverage on leasing opportunity as against outright purchase of cars meant for rental services.
So also in the bid to cut cost, we will contract the servicing and maintenance of all our cars. These are the key areas where we will spend our start – up capital on;
- The Total Fee for Registering the Business in Fort Lauderdale – Florida – $750.
- Legal expenses for obtaining licenses and permits – $1,500.
- Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- Cost for hiring Business Consultant – $2,000.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $60,800.
- Cost of accounting software, car tracker software apps, CRM software and Payroll Software – $3,000
- Cost for leasing standard office facility with large space for parking our cars- $250,000.
- Cost for facility remodeling the facility- $70,000.
- Other start-up expenses including stationery – $1000
- Phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, fueling, maintenance, payments of bills et al) – $2500,000
- The cost for Start-up inventory – $15,000
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Credit card machine, POS, tables and chairs et al): $4,000.
- The cost of Launching an official website: $600
- The cost for our grand opening party: $5,500
- Miscellaneous: $10,000
We would need an estimate of $1.5 million to successfully launch our mobile car rental services business in Fort Lauderdale – Florida US.
Generating Funding / Startup McElroy® Car Rental Services, Inc.
McElroy® Car Rental Services, Inc. is a business that will be owned and managed by McElroy Williams and his immediate family members. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.
These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings and sale of his stocks
- Generate part of the start – up capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $500,000 (Personal savings $400,000 and soft loan from family members $100,000) and we are at the final stages of obtaining a loan facility of $1 million from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
Sustainability and Expansion Strategy
It is an established fact that, the future of a business lies in the numbers of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting McElroy® Car Rental Services, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our car rental services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
McElroy® Car Rental Services, Inc. will make sure that the right foundation, structures and standard operating processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner of our business strategy.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Acquiring facility and remodeling the facility: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the Needed pressure washing machines and industrial cleaning equipment, electronic appliances, office appliances and bar accessories: In Progress
- Creating Official Website for the Company: Completed
- Creating Awareness for the business both online and in the neighborhood:
- Opening party / launching party planning: In Progress
- Establishing business relationship with vendors – car servicing and maintenance, car dealership shops, and gas stations et al: In Progress
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